2011 Annual Report - the solid group inc website

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- 38 - A reconciliation of the allowance for impairment at beginning and end of 2011 and 2010 is shown below. Notes 2011 2010 Balance at beginning of year P 129,657,216 P 131,494,933 Impairment losses during the year 22.2 21,145,641 9,266,502 Reversals of impairment losses 22.1 ( 17,014,146) ( 11,104,219 ) Write-off of receivables previously provided with allowance ( 16,773,038) - Balance at end of year P 117,015,673 P 129,657,216 Trade receivables include amounts due from the Group’s real estate buyers arising from the sale of industrial lots and condominium units. The title to the real estate properties remain with the Group until such time that the Group fully collects its receivables from the real estate buyers. Trade receivables from sale of condominium units are measured at amortized cost and bear effective interests ranging from 9.8% to 18.0% depending on the terms of payment. Interest rates on finance receivables range from 7.5% to 30.0% in 2011 and 2010. Certain finance receivables are secured by real estate properties and shares of stock of the borrowing companies which are owned by a related party (see Note 28.4). Cash surrender value of investment in life insurance pertains to insurance policies purchased by BRL for certain directors of the Parent Company. The investment in life insurance is accounted for under the cash surrender value method. Under this method, the initial cash surrender value of the insurance policies is recognized immediately in the consolidated statements of income (see Note 20). The difference between the initial cash surrender value and the premiums paid represents insurance service fees which are recorded as Prepaid insurance under the Other Non-current Assets account and is amortized over a period of ten years (see Note 15). The cash surrender value of the investment in life insurance is used as collateral for interest-bearing loans obtained by BRL (see Note 16). The net carrying amounts of trade and other receivables are considered a reasonable approximation of their fair values (see Note 32.1).
- 39 - 8. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS In 2011, BRL acquired additional investments which are classified as financial assets at FVTPL upon initial recognition, while Fil-Dragon’s investments are primarily held for trading. The carrying amounts of financial assets at FVTPL are presented as follows: Designated as at fair value through profit or loss P 63,846,668 Held-for-trading 6,426,323 P 70,272,991 This account consists of the following financial assets as of December 31, 2011: Debt securities P 60,382,332 Equity securities 9,890,659 P 70,272,991 Debt securities pertain to investments in corporate bonds with interest rates ranging from 5.3% to 12.0% in 2011. On the other hand, equity securities pertain to shares of entities listed in China, Hong Kong and the United States. The fair values of financial assets presented above have been determined directly by reference to published prices quoted in active markets. In 2011, the Group recognized the loss in value of financial assets designated at fair value through profit or loss of P5.9 million as part of Finance Costs in the 2011 consolidated statement of income (see Note 22). The Group’s foreign debt securities are used as collateral for interest-bearing loans obtained by BRL (see Note 16). 9. AVAILABLE-FOR-SALE FINANCIAL ASSETS This account comprises the following AFS financial assets: 2011 2010 Current: Investments in foreign currency-denominated bonds P 104,647,592 P 172,263,491 Allowance for impairment ( 52,653,225) ( 33,657,338) 51,994,367 138,606,153 Non-current: Club shares 8,832,400 13,095,000 Equity securities 8,580,000 8,580,000 Others 1,474,118 1,436,518 18,886,518 23,111,518 Allowance for impairment ( 11,004,991) ( 11,004,991 ) 7,881,527 12,106,527 P 59,875,894 P 150,712,680
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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 28 and 29: - 10 - (vii) Consolidation Standard
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 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
Page 78 and 79: 60 The reconciliation of tax on pre
Page 80 and 81: 62 The components of net deferred t
Page 82 and 83: 64 25.2 Revaluation Reserves The co
Page 84 and 85: 66 In 2011 and 2010, Mytel sold mob
Page 86 and 87: 68 28.7 Transactions with Solid Com
Page 88 and 89: 70 29.2 Distributorship Agreement w
Page 90 and 91: 72 30.7 Others There are other comm
Page 92 and 93: 74 (b) Trade and Other Receivables
Page 94 and 95: 76 32.2 Fair Value Hierarchy The ta
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2011 Annual Report - the solid group inc website

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