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

- 63 -
The net deferred tax liabilities of the other subsidiaries which have a net deferred tax liability
position as of December 31 relate to the following:
2012 2011
Deferred tax assets:
Provision for warranty claims P 2,012,749 P -
Unamortized past service costs 1,657,651 675,055
Allowance for impairment on
trade and other receivables 688,083 7,500,210
Deferred rent expense – PAS 17 408,033 609,324
Allowance for inventory
obsolescence 324,678 -
Retirement benefit obligation 314,196 -
Unearned rent income 257,395 -
Deferred tax liabilities:
Fair value gains on investment
property ( 772,747,918 ) ( 722,756,790 )
Accumulated depreciation on
investment property ( 132,666,733 ) ( 129,743,498 )
Retirement benefit asset ( 19,947,117 ) ( 14,115,622 )
Deferred rent income – PAS 17 ( 213,056 ) ( 3,523,866 )
Changes in fair value of AFS ( 132,000 ) 246,000
Unrealized foreign currency gains ( 19,409 ) ( 36,056 )
Deferred tax liabilities – net (P 920,063,448 ) ( P 861,145,243 )
The components of net deferred tax expense (income) reported in the consolidated
statements of income are as follows:
2012 2011 2010
Fair value gains on investment property P 49,991,128 P 54,506,870 P 8,472,450
Allowance for inventory obsolescence 14,668,089 ( 19,956,486) ( 445,274 )
Accumulated depreciation on
investment property 6,337,868 6,651,556 7,859,993
Accrued municipal taxes ( 5,694,710) ( 6,702,344) ( 2,324,032 )
Allowance for impairment on
trade and other receivables 3,395,556 ( 2,896,526) 993,245
Reserve for warranty costs 3,169,076 ( 1,214,422) ( 744,120 )
Unrealized foreign currency losses - net ( 2,749,471) ( 677,951) ( 18,750 )
Deferred rent expense – PAS 17 ( 2,627,509) 34,412 ( 1,352,937 )
Benefits from previously unrecognized MCIT ( 1,812,952) ( 47,888) -
Retirement benefit obligation 1,577,061 ( 5,830,938) 1,971,288
Deferred rent income – PAS 17 ( 556,364) ( 1,752,527) ( 376,861 )
Unamortized past service costs 173,828 344,910 138,036
Unearned rent income ( 165,041)
Unamortized pre-operating expenses 58,380 50,163 54,271
Change in fair value of AFS - - 1,122,000
NOLCO - - 107,764
P 65,764,939 P 22,508,829 P 15,457,073
The deferred tax income recognized in the consolidated statements of comprehensive income
pertains to the tax effect of the changes in fair value of AFS Financial Assets.