SEC Form 17-A: Annual Report - the solid group inc website

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Other receivables consist primarily of unsecured, noninterest-bearing cash advances
made to the ZTC’s Unit Owners’ Association for expenses incurred by the Unit
Owners, interest receivable, rental receivable and income tax recoverable.
All of the Group’s trade and other receivables have been reviewed for indicators of
impairment. Certain trade and other receivables, which are mostly due from small
business customers, were found to be impaired, hence, adequate amount of allowance
for impairment has been recognized.
A reconciliation of the allowance for impairment at beginning and end of 2012 and
2011 is shown below.
Note 2012 2011
Balance at beginning of year P 117,015,673 P 129,657,216
Impairment losses during
the year 21.2 12,767,663 21,145,641
Reversals of impairment losses 21.1 ( 75,708,696) ( 17,014,146 )
Write-off of receivables
previously provided with
allowance ( 22,561,779) ( 16,773,038 )
Balance at end of year P 31,512,861 P 117,015,673
The net carrying amounts of trade and other receivables are considered a reasonable
approximation of their fair values (see Note 30.1).
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. In 2012, BRL and Fil-Dragon disposed of all of their investments classified as
financial assets at FVTPL.
The carrying amounts of financial assets at FVTPL as of December 31, 2011 are
presented as follows:
Designated as at FVTPL 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.