PFRS 16 LEASES

Summary
Table 1 Present Value of Lease Payments
Table 2 Lease Liability Amortization
Table 3 ROU Asset Depreciation
Table 4 Income Tax Effect

Commencement Date: April 1, 2021

Lease Term: 1.50
Beginning Balance at Present Value PHP 1,394
Payment (Paid in Arrears) PHP 964,867
Incremental Borrowing Rate (April 1, 2021) 5.71%
Monthly Incremental Borrowing Rate (April 1, 2021) 0.48%

TABLE 1
PRESENT VALUE OF LEASE PAYMENTS

PRESENT VALUE
PAYMENTS PRESENT VALUE
Period Covered FACTOR (5.71%)
A B C=A*B
4/1/2021 80,406 1.000 80,406
1 5/1/2021 80,406 0.995 80,025
2 6/1/2021 80,406 0.991 79,647
3 7/1/2021 80,406 0.986 79,270
4 8/1/2021 80,406 0.981 78,895
5 9/1/2021 80,406 0.977 78,521
6 10/1/2021 80,406 0.972 78,150
7 11/1/2021 80,406 0.967 77,780
8 12/1/2021 80,406 0.963 77,412
9 1/1/2022 80,406 0.958 77,045
10 2/1/2022 80,406 0.954 76,681
11 3/1/2022 80,406 0.949 76,318
12 4/1/2022 80,406 0.945 75,957
13 5/1/2022 80,406 0.940 75,597
14 6/1/2022 80,406 0.936 75,240
15 7/1/2022 80,406 0.931 74,884
16 8/1/2022 80,406 0.927 74,529
17 9/1/2022 84,426 0.923 77,885
TOTAL 1,451,323 1,394,241
96% 57,082
TABLE 2
LEASE LIABILITY AMORTIZATION SCHEDULE
Beginning Balance Lease Payments Interest Expense
Period Covered
5.71%
A B C
4/1/2021 1,394,241 80,406
5/1/2021 1,313,835 80,406 6,247
6/1/2021 1,239,676 80,406 5,894
7/1/2021 1,165,165 80,406 5,540
8/1/2021 1,090,299 80,406 5,184
9/1/2021 1,015,077 80,406 4,826
10/1/2021 939,498 80,406 4,467
11/1/2021 863,559 80,406 4,106
12/1/2021 787,259 80,406 3,743
1/1/2022 710,596 80,406 3,379
2/1/2022 633,569 80,406 3,012
3/1/2022 556,176 80,406 2,644
4/1/2022 478,414 80,406 2,275
5/1/2022 400,283 80,406 1,903
6/1/2022 321,781 80,406 1,530
7/1/2022 242,905 80,406 1,155
8/1/2022 163,654 80,406 778
9/1/2022 84,027 84,426 400
TOTAL 1,451,323 57,082

TABLE 3
ROU ASSET DEPRECIATION SCHEDULE
Beginning Balance Depreciation Ending Balance
Period Covered
A B C=A-B
4/1/2021 1,394,241 77,458 1,316,783
5/1/2021 1,316,783 77,458 1,239,325
6/1/2021 1,239,325 77,458 1,161,867
7/1/2021 1,161,867 77,458 1,084,410
8/1/2021 1,084,410 77,458 1,006,952
9/1/2021 1,006,952 77,458 929,494
10/1/2021 929,494 77,458 852,036
11/1/2021 852,036 77,458 774,578
12/1/2021 774,578 77,458 697,120
1/1/2022 697,120 77,458 619,663
2/1/2022 619,663 77,458 542,205
3/1/2022 542,205 77,458 464,747
4/1/2022 464,747 77,458 387,289
 5/1/2022 387,289 77,458 309,831
6/1/2022 309,831 77,458 232,373
7/1/2022 232,373 77,458 154,916
8/1/2022 154,916 77,458 77,458
9/1/2022 77,458 77,458 -
TOTAL 1,394,241

TABLE 4
INCOME TAX EFFECT
Lease Payments Depreciation Interest Expense Difference
5.71%
A B C D=(B+C)-A
80,406 77,458 - (2,947.90)
80,406 77,458 6,247 3,298.84
80,406 77,458 5,894 2,946.25
80,406 77,458 5,540 2,591.97
80,406 77,458 5,184 2,236.02
80,406 77,458 4,826 1,878.37
80,406 77,458 4,467 1,519.02
80,406 77,458 4,106 1,157.96
80,406 77,458 3,743 795.19
80,406 77,458 3,379 430.69
80,406 77,458 3,012 64.46
80,406 77,458 2,644 (303.51)
80,406 77,458 2,275 (673.24)
80,406 77,458 1,903 (1,044.72)
80,406 77,458 1,530 (1,417.96)
80,406 77,458 1,155 (1,792.99)
80,406 77,458 778 (2,169.79)
84,426 77,458 400 (6,568.67)
1,451,323 1,394,241 57,082

*Check: ROU Asset

Accumulated Depreciation
ROU Asset - Net
Lease Liability
DTA (DTL)
DTA (DTL) - Per Table 4
Difference
ue of Lease Payments
ity Amortization
Depreciation
Effect

April 1, 2021 Pro-forma Entries - PFRS 16

years 4/1/2019 Right-of-use Asset
1,394,241 Lease Liability - Non-current
/ year Cash
5.71% To recognized ROU Asset and Lease Liability
/ month
3/31/2020 Interest Expense - Selling
Lease Liability - Non-current
To set up an interest expense

Escalation Rate

Depreciation Expense - Selling

Accumulated Depreciation - ROU
To set up depreciation expense

Lease Liability - Non-current

Lease Liability - Current
To set up the lease liability current portion

5%
DULE
Ending Balance

D= A-B+C
1,313,835
1,239,676
1,165,165
1,090,299
1,015,077
939,498
863,559
787,259
710,596
633,569
556,176
478,414 Lease Payments and Interest Expense for the year ended March 31, 2022
400,283
321,781
242,905
163,654
84,027
0 Lease Liability - Current Portion

Depreciation for the year ended March 31, 2022

T
Tax Rate DTA (DTL)
30%
E F=D*E
30% (884.37)
30% 989.65
30% 883.87
30% 777.59
30% 670.81
30% 563.51
30% 455.71
30% 347.39
30% 238.56
30% 129.21
30% 19.34
30% (91.05) Net Income Tax Effect recognized for the year ended March 31, 2
30% (201.97)
30% (313.42)
30% (425.39)
30% (537.90)
30% (650.94)
30% (1,970.60)
0 *

1,394,240.98
d Depreciation 929,493.99
464,746.99
478,414.36
(13,667.37)
- Per Table 4 (13,667.37)
(0.00)
 - PFRS 16
1,394,240.98
ability - Non-current 1,313,835.25
80,405.73
U Asset and Lease Liability

49,042.14
ability - Non-current 49,042.14

nse - Selling 929,493.99

ated Depreciation - ROU 929,493.99
on expense

on-current 478,414.36
ability - Current 478,414.36
liability current portion
March 31, 2022
d for the year ended March 31, 2022