COVER SHEET PHILIPPINE SEVEN CORPORATION - 7-Eleven

PHILIPPINE SEVEN CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS1. Corporate Information and Authorizationfor Issuance of Financial StatementsCorporate InformationPhilippine Seven Corporation (the Company or PSC) was incorporated in the Philippines andregistered with the Philippine Securities and Exchange Commission (SEC) on November 29,1982. The Company and its subsidiaries (collectively referred to as “the Group”), are primarilyengaged in the business of retailing, merchandising, buying, selling, marketing, importing,exporting, franchising, acquiring, holding, distributing, warehousing, trading, exchanging orotherwise dealing in all kinds of grocery items, dry goods, food or foodstuffs, beverages, drinksand all kinds of consumer needs or requirements and in connection therewith, operating ormaintaining warehouses, storages, delivery vehicles and similar or incidental facilities. The Groupis also engaged in the management, development, sale, exchange, and holding for investment orotherwise of real estate of all kinds, including buildings, houses and apartments and otherstructures.The Company is controlled by President Chain Store (Labuan) Holdings, Ltd., an investmentholding company incorporated in Malaysia, which owns 56.59% of the Company’s outstandingshares. The remaining 43.41% of the shares are widely held. The ultimate parent of the Companyis President Chain Store Corporation (PCSC, incorporated in Taiwan, Republic of China).The Company has its primary listing on the Philippine Stock Exchange. As of December 31, 2008,2007 and 2006, the Company has 724, 703 and 706 stockholders, respectively.The registered business address of the Company is 7th Floor, The Columbia Tower, OrtigasAvenue, Mandaluyong City.Authorization for Issuance of the Financial StatementsThe consolidated financial statements were authorized for issue by the Board of Directors (BOD)on February 12, 2009.2. Summary of Significant Accounting Policiesand Financial Reporting PracticesBasis of PreparationThe consolidated financial statements have been prepared under the historical cost basis, exceptfor available-for-sale (AFS) financial assets and land, which are carried at fair value and revaluedamount, respectively. The consolidated financial statements are presented in Philippine Peso(Peso), which is the Company’s functional and presentation currency.Statement of ComplianceThe consolidated financial statements, which were prepared for submission to the SEC, have beenprepared in compliance with Philippine Financial Reporting Standards (PFRS).