2011 Annual Report - the solid group inc website

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The changes in the Reserve for Warranty Costs account are as follows:
Notes 2011 2010
Balance at beginning of year P 23,359,511 P 12,828,936
Additional provision for warranty
claims during the year 21 45,072,286 35,696,455
Actual warranty claims
during the year ( 38,173,009) ( 20,576,375 )
Reversals during the year 20 ( 11,904,405) ( 4,589,505 )
P 18,354,383 P 23,359,511
Other payables primarily consist of output taxes payable, payroll-related liabilities, and
unearned subscription income and other revenues resulting from advances received from
customers for various services provided by the Group.
The carrying amounts of trade and other payables recognized in the consolidated
statements of financial position are considered to be a reasonable approximation of their
fair values (see Note 32.1).
18. REFUNDABLE DEPOSITS
SMC has long-term refundable deposits from various tenants amounting to P9.8 million
and P13.0 million as at December 31, 2011 and 2010, respectively. The refundable deposits
are remeasured at amortized cost using the effective interest ranging from 7.22% to 15.77%
at the inception of the lease terms. Interest expense recognized amounted to P0.6 million
in 2011, P0.9 million in 2010 and P1.4 million in 2009 is presented as part of Finance Costs
in the consolidated statements of income (see Note 22.2). The fair value of the non-current
refundable deposits amounting to P15.6 million and P15.3 million as of December 31, 2011
and 2010, respectively, is shown as a separate line item under non-current liabilities in the
consolidated statements of financial position.