2011 Annual Report - the solid group inc website

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- 10 - (vii) Consolidation Standards (effective from January 1, 2013) The Group is currently reviewing the impact of the following consolidation standards on its consolidated financial statements in time for their adoption in 2013: • PFRS 10, Consolidated Financial Statements. This standard builds on existing principles of consolidation by identifying the concept of control as the determining factor in whether an entity should be included within the consolidated financial statements. The standard also provides additional guidance to assist in determining control where this is difficult to assess. • PFRS 11, Joint Arrangements. This standard provides a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal form. This standard replaces the three categories under PAS 31, mainly, jointly controlled entities, jointly controlled operations and jointly controlled assets, with two new categories – joint operations and joint ventures. Moreover, this also eliminates the option of using proportionate consolidation for joint ventures. • PFRS 12, Disclosure of Interest in Other Entities. This standard integrates and makes consistent the disclosure requirements for all forms of interests in other entities, including joint arrangements, associates, special purpose vehicles and unconsolidated structured entities. This also introduces new disclosure requirements about the risks to which an entity is exposed from its involvement with structured entities. • PAS 27 (Revised), Separate Financial Statements. This revised standard now covers the requirements pertaining solely to separate financial statements after the relevant discussions on control and consolidated financial statements have been transferred and included in the new PFRS 10. No new major changes relating to separate financial statements have been introduced as a result of the revision. • PAS 28 (Revised), Investments in Associate and Joint Venture. This revised standard includes the requirements for joint ventures, as well as associates, to be accounted for using equity method following the issuance of PFRS 11.
- 11 - (viii) Philippine Interpretation IFRIC 15, Agreements for Construction of Real Estate. This Philippine interpretation is based on IFRIC interpretation issued by the IASB in July 2008 effective for annual periods beginning on or after January 1, 2009. The adoption of this interpretation in the Philippines, however, was deferred by the FRSC and Philippine SEC after giving due considerations on various application issues and the implication on this interpretation of the IASB's on-going revision of the Revenue Recognition standard. This interpretation provides guidance on how to determine whether an agreement for the construction of real estate is within the scope of PAS 11, Construction Contracts, or PAS 18, Revenue, and accordingly, when revenue from the construction should be recognized. The main expected change in practice is a shift from recognizing revenue using the percentage-of-completion method (i.e., as a construction progresses, by reference to the stage of completion of the development) to recognizing revenue at completion upon or after delivery. The Group is currently evaluating the impact of this interpretation on its consolidated financial statements in preparation for its adoption when this becomes mandatorily effective in the Philippines but does not expect it to have an impact on the Group’s consolidated financial statements as it currently accounts for its real estate transactions using the full accrual method. 2.3 Basis of Consolidation The Parent Company obtains and exercises control through voting rights. The Group’s consolidated financial statements comprise the accounts of the Parent Company and its subsidiaries as enumerated in Note 1.1, after the elimination of material intercompany transactions. All intercompany balances and transactions with subsidiaries, including income, expenses and dividends, are eliminated in full. Unrealized profits and losses from intercompany transactions that are recognized in assets are also eliminated in full. Intercompany losses that indicate an impairment are recognized in the consolidated financial statements. The financial statements of subsidiaries are prepared for the same reporting period as the Parent Company, using consistent accounting principles. The Parent Company accounts for its investments in subsidiaries and NCI as follows: (a) Investments in Subsidiaries Subsidiaries are all entities over which the Parent Company has the power to control the financial and operating policies. The Parent Company obtains and exercises control through more than one half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Subsidiaries are consolidated from the date the Parent Company obtains control until such time that such control ceases.
Page 2 and 3: Table of Contents Message to Stockh
Page 4 and 5: Operations Review and Prospects 201
Page 6 and 7: Real Estate IMPROVING VALUATIONS Ou
Page 8 and 9: Board of Directors Susan L. Tan Cha
Page 10 and 11: !" # $"##$"%##&$!'()*(()*(*#)**+
Page 12 and 13: 10 SOLID GROUP INC. ANNUAL REPORT 2
Page 20 and 21: - 2 - Notes: (a) (b) (c) (d) (e) (f
Page 22 and 23: - 4 - (b) Presentation of Consolida
Page 24 and 25: - 6 - (iv) 2010 Annual Improvements
Page 26 and 27: - 8 - (c) Effective Subsequent to 2
Page 30 and 31: - 12 - The acquisition method is ap
Page 32 and 33: - 14 - The Group’s financial asse
Page 34 and 35: - 16 - Land and land development co
Page 36 and 37: - 18 - Trade and Other Payables, Ad
Page 38 and 39: - 20 - The recognition criteria for
Page 40 and 41: - 22 - (b) Group as Lessor Leases w
Page 42 and 43: - 24 - Actuarial gains and losses a
Page 44 and 45: - 26 - 2.22 Earnings per Share Basi
Page 46 and 47: - 28 - (f) Provisions and Contingen
Page 48 and 49: - 30 - (h) Realizable Amount of Def
Page 50 and 51: - 32 - 4.3 Intersegment Transaction
Page 52 and 53: - 34 - The total segment balances p
Page 54 and 55: - 36 - The net cash flows attributa
Page 56 and 57: - 38 - A reconciliation of the allo
Page 58 and 59: - 40 - A reconciliation of the allo
Page 60 and 61: - 42 - 12. REAL ESTATE INVENTORIES
Page 62 and 63: - 44 - 13. PROPERTY, PLANT AND EQUI
Page 64 and 65: - 46 - No additional impairment los
Page 66 and 67: 48 Notes 2011 2010 Non-current: Ref
Page 68 and 69: 50 The changes in the Reserve for W
Page 70 and 71: 52 19.2 Cost of Services The follow
Page 72 and 73: 54 Items classified under the misce
Page 74 and 75: 56 23.2 Post-employment Benefit The
Page 76 and 77: 58 The amount of post-employment be
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60 The reconciliation of tax on pre
Page 80 and 81:
62 The components of net deferred t
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64 25.2 Revaluation Reserves The co
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66 In 2011 and 2010, Mytel sold mob
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68 28.7 Transactions with Solid Com
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70 29.2 Distributorship Agreement w
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72 30.7 Others There are other comm
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74 (b) Trade and Other Receivables
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76 32.2 Fair Value Hierarchy The ta
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2011 Annual Report - the solid group inc website

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