ACCCOB2 PORTFOLIO

Reflection Paper #4
presented to the Accountancy
Department

In partial fulfillment
of the course requirement
in ACCCOB2

BERNAL, Mike Joshua S.

CRISOSTOMO, Asia Betina Marie R.
C33
Trade and Other Payables
Trade and Other payables refer to the money that a company/business owes vendors for
the inventory, and related goods and services These payables can include things like bills for
materials, services like rent or utilities, or even taxes. (Reich, 2023).

As seen on note 16 of page 42, it shows that the account of Jollibee Food Corporation;
suppliers, related parties, accruals for salaries, wages, & employee benefits, advertising &
promotions, rent, delivery expenses, repairs, maintenance & security, electricity, other utilities &
communication, interest, corporate events and research, professional fees, retention, supplies,
store operations, insurance, transportation and travel, training & seminars, and others.
During 2021, trade payables for suppliers started from 1.1 billion pesos to 1.9 billion pesos
during 2022, which is a big increase of 73.2%. As for the related parties, during 2021, it started
with 1.6 billion pesos to 6.1 billion pesos which is a huge increase of 266%. This is seen as a
major win for the company. When trade payables increase, the cash balance of Jollibee Food
Corporation also increases (Rastogi, 2022).

Long-term liabilities
As the term “long-term liabilities” suggests, they are debts/obligations of a company
that are due more than one year in the future, hence, “long-term.” (Tuovila, 2022). Long-term
liabilities are listed in the balance sheet/statement of financial position under current liabilities.

It can be recognized that the long-term liabilities that are found under noncurrent liabilities,
which are also called long-term debts, started at 17.4 million pesos, and in the year 2022, it
decreased to 11.5 million pesos, a 33.9% decrease. For the in-depth long-term liabilities sheet,
note 18, is below.
As seen from note 18, having lower or decreased long-term liabilities has many benefits for
Jollibee Food Corporation– financial stability, lower interest expense, reduced default rise,
flexibility, investor confidence, the potential for further growth, and many more (Tuovila, 2022).
Share Capital
A company's share capital is the money it has acquired through the issuance of common
or preferred stock. The maximum share capital that a firm may raise is known as authorized
share capital. The entire number of shares a firm decides to sell to investors is known as the
issued share capital. The total market value of the company's outstanding shares of stock is
known as the share capital of Jollibee Foods Corporation, which is a publicly traded business.
Share capital is a symbol for the shareholders' ownership stake in the business. Authorized
share capital and issued share capital are the two categories of share capital. The authorized
share capital, which also includes the total number of shares the business may issue, is
frequently referred to as the maximum number of shares that a company may issue under its
articles of formation. While the authorized share capital that Jollibee Foods Corporation has
already distributed to the stockholders is far more than the issued share capital.
It will show the overall percentage of shares that the investors now own. The balance
sheet in financial statements contains information about the company's share capital. The
reason why almost all businesses redirect their share capital is so that they can keep accurate
records of the total sum that investors have contributed in exchange for partial ownership and
votes in the business.

References

Jollibee Food Corporations Annual Report. (2020).

https://edge.pse.com.ph/companyDisclosures/form.do?cmpy_id=86

Reich, A. (2023, April 10). What Is Trade Accounts Payable, and Why Is It Critical for Managing
Vendor Relations?.
https://www.order.co/blog/accounts-payable/what-is-trade-accounts-payable

Rastogi, H. (2022, May 6). What are Trade Payables? Benefits and Risks.
https://www.analyticssteps.com/blogs/what-are-trade-payables-benefits-and-risks

Tuovila, A. (2022, September 28). Long-Term Liabilities: Definition, Examples, and Uses.
https://www.investopedia.com/terms/l/longtermliabilities.asp