1. business and industrial

COVER SHEET
1 5 9 2 3
S.E.C. Registration Number
M A N I L A
B U L L E T I N
P U B L I S H I N G C O R P O R A T I O N
(Company's Full Name )
M U R A L L A
C O R E R
R E C O L E T O S
S T R E E T
I N T R A M U R O S ,
M A N I L A
( Business Address: No. Street City/Town/Province )
ELIZABETH T. MORALES
527 ‐ 8121
Contact Person
Company Telephone Number
1 7 ‐ Q
0 9
3 0
Month Day
Fiscal Year
FORM TYPE
Month
Day
Annual Meeting
Secondary License Type. If Applicable
Dept. Requiring this Doc.
Amended Articles Number/Section
Total Amount of Borrowings
Total No. of Stockholders
Domestic
To be accomplished by SEC Personnel concerned
File Number
LCU
Document I.D.
Cashier
S T A M P S Foreign
SEC FORM 17-Q
QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES
REGULATION CODE AND SRC RULE 17(2)(b) THEREUNDER
1. For the quarterly period ended -
September 30, 2012
2. SEC Identification Number -
15923
3. BIR Tax Identification Number -
000-746-558
4. Exact name of registrant as specified in its charter –
MANILA BULLETIN PUBLISHING CORPORATION
5. Province, country or other jurisdiction of incorporation or organizationPhilippines
6. Industry Classification Code – ( to be provided by SEC )
7.
Address of principal office – Manila Bulletin Building, Muralla corner
Recoletos Sts., Intramuros, Manila
8. Registrant’s telephone number – 527-8121
9. Former name, former address and former fiscal year, if changed since last report
none
10. Securities registered pursuant to Sections 4 and 8 of the RSA
Class Title
Number of Shares Outstanding
Common Stock
3,020,960,250 shares
11. Are any or all of the securities listed on a Stock Exchange?
Yes
No
/
If yes, state the name of such Stock Exchange and the class/es of securities
listed therein :
Philippine Stock Exchange
Common Stock
12. The Company has filed all reports required to be filed by Section 17 of the
Code and SRC Rule 17 thereunder of Section 11 of the RSA and RSA Rule
11(a)-1 thereunder, and Sections 26 and 141 of the Corporation Code of the
Philippines, during the preceding twelve (12) months.
1
MANILA BULLETIN PUBLISHING CORPORATION
QUARTERLY REPORT
For the Third Quarter Ended, September 30, 2012
Name of Registrant
: MANILA BULLETIN PUBLISHING CORPORATION
Address
: P.O. Box 769
Manila Bulletin Building
Muralla corner Recoletos Streets
Intramuros, Manila
Nature of Business
: Newspaper Publication
Board of Directors
:
Dr. Emilio T. Yap
Atty. Hermogenes P. Pobre
Chief Justice Hilario G. Davide, Jr. (SC Ret.)
- Independent Director
Secretary Alberto G. Romulo ( DFA Ret.)- Independent Director
Dr. Emilio C. Yap III
Mrs. Paciencia M. Pineda
Atty. Miguel B. Varela
Dr. Esperanza I. Cabral – Independent Director
Dr. Crispulo J. Icban, Jr.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements Required Under SRC Rule 68.1
Attached herein are the following reports:
a. Comparative Statements of Income and Retained Earnings
b. Comparative Balance Sheets
c. Comparative Statements of Cash Flows
d. Comparative Statements of Changes in Stockholders’ Equity
e. Notes to Financial Statements
f.
Aging of Accounts Receivable – trade
g. Beneficial Ownership, Top 100 Shareholders and Distribution of Capital
Stock as prepared by the Hongkong and Shanghai Banking Corporation
Ltd.
2
MANILA BULLETIN PUBLISHING CORPORATION
UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME
For the Period Ended January 1 to September 30, 2012 AND 2011
2012
Notes
INCOME
Advertising
Circulation
Others
Total Revenue
COSTS AND EXPENSES
Cost of Printing Materials Used
Compensation and benefits
Utilities
Promotions and Adverisements
Depreciation
Maintenance
Rental
Provision for doubtful accounts
Other operating expenses
Total Costs and Expenses
3
18
3
3
3
3
3, 11
3
3
3
3
3
INCOME BEFORE INCOME TAX
PROVISION FOR INCOME TAX
NET INCOME
OTHER COMPREHENSIVE INCOME
DILUTED EARNINGS PER SHARE
1,358,579,754
885,449,900
170,838,676
2,414,868,330
1,206,989,251
300,401,676
73,037,750
87,893,741
72,436,712
25,433,507
12,728,348
3,017,779
435,069,454
2,217,008,218
1,171,837,880
241,549,148
68,776,574
104,385,735
89,563,447
26,217,289
13,622,865
2,881,783
497,015,553
2,215,850,274
198,554,311
199,018,056
(47,905,450)
101,234
(47,804,216)
(50,558,786)
248,013
(50,310,773)
150,750,095
148,707,283
44,863,779
44,578,786
105,886,316
104,128,497
-
TOTAL NET INCOME
BASIC EARNINGS PER SHARE
1,393,526,948
894,972,804
127,062,777
2,415,562,529
3
OPERATING INCOME
NET FINANCE COSTS
Finance Charge
Finance Income
2011
3, 20
5,117,736
105,886,316
109,246,233
0.0351
0.0345
0.0351
0.0345
3
MANILA BULLETIN PUBLISHING CORPORATION
UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME
For the Third Quarter Ended September 30, 2012 and 2011
2012
Notes
INCOME
Advertising
Circulation
Others
Total Revenue
COSTS AND EXPENSES
Cost of Printing Materials Used
Compensation and benefits
Utilities
Promotions and Adverisements
Depreciation
Maintenance
Rental
Provision for doubtful accounts
Other operating expenses
Total Costs and Expenses
2011
17,3
553,121,698
418,167,554
38,317,457
1,009,606,709
534,923,397
411,760,185
17,092,518
963,776,100
578,089,890
128,410,465
27,182,656
20,598,802
23,025,269
7,327,674
3,919,023
1,057,660
146,979,602
936,591,041
557,779,783
79,056,861
23,806,551
38,410,804
28,073,392
7,306,385
4,459,387
985,956
149,002,042
888,881,161
73,015,668
74,894,939
(5,426,945)
(53,571)
(5,480,516)
(4,064,558)
105,980
(3,958,578)
INCOME BEFORE INCOME TAX
67,535,152
70,936,361
PROVISION FOR INCOME TAX
20,169,760
21,270,364
NET INCOME
47,365,392
49,665,997
18
3
3
3
3
3
3, 11
3
3
3
3
OPERATING INCOME
NET FINANCE COSTS
Finance Charge
Finance Income
3
OTHER COMPREHENSIVE INCOME
-
TOTAL NET INCOME
BASIC EARNINGS PER SHARE
DILUTED EARNINGS PER SHARE
3, 20
5,117,736
47,365,392
54,783,733
0.0157
0.0164
0.0157
0.0164
4
MANILA BULLETIN PUBLISHING CORPORATION
COMPARATIVE BALANCE SHEETS
As of September 30 , 2012 and December 31, 2011
A S S E T S
Notes
Current Assets
Cash
Accounts receivable ( net of allowance for doubtful accounts )
Inventories
Others
Total Current Assets
Non - Current Assets
Prepaid benefit obligation
Available for sale investments
Property, plant and equipment
Deferred tax asset - net
Assets held for sale
Investment property
Goodwill
Total Non - Current Assets
TOTAL
1,4
1,5
1,6
1,7
8
11
9
10
12
ASSETS
UNAUDITED
September 30, 2012
AUDITED
December 31, 2011
45,496,523
2,007,343,759
1,144,394,119
167,699,838
3,364,934,239
33,654,965
1,988,807,855
1,196,311,960
168,062,641
3,386,837,421
55,957,060
5,764,040
2,871,730,002
6,427,942
53,101,287
94,808,970
5,000,000
3,092,789,301
71,562,128
5,764,040
2,869,452,880
6,427,942
53,101,287
94,808,970
5,000,000
3,106,117,247
6,457,723,540
6,492,954,668
2,078,540,355
16,883,016
390,106,091
180,000,000
2,665,529,462
2,234,704,397
29,020,862
211,873,635
180,000,000
2,655,598,894
570,000,000
570,000,000
3,030,284,900
203,150,033
5,107,122
3,238,542,055
(16,347,977)
3,222,194,078
3,030,284,900
248,311,729
5,107,122
3,283,703,751
(16,347,977)
3,267,355,774
6,457,723,540
6,492,954,668
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities :
Accounts payable and accrued expenses
Income tax payable
Bills payable
Loan payable ( Current portion )
Total Current Liabilities
Non - Current Liabilities
Loans Payable net of current portion
13
14
15
15
Stockholders' Equity :
Capital Stock - P1.00 par value
Authorized shares - 6,000,000,000 shares
Issued shares - 3,030,284,900 shares
Issued
Retained Earnings
Net Unrealized Gain/Loss
Less : Cost of treasury stock
Total Stockholders' Equity
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
16
5
MANILA BULLETIN PUBLISHING CORPORATION
UNAUDITED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
For the Nine Months Period Ended, September 30, 2012 and 2011
2012
COMMON
Balance at beginning of quarter
Issued
2011
3,030,284,900
-
3,030,284,900
-
3,030,284,900
3,030,284,900
248,311,729
105,886,316
(151,048,012)
208,455,320
104,128,497
(151,048,012)
203,150,033
161,535,805
NET UNREALIZED GAIN/ (LOSS) ON AVAILABLE
FOR SALE INVESTMENTS
Balance at beginning of quarter
5,107,122
Additions/ deductions
-
4,711,238
5,117,736
Balance at end of the quarter ( Note 14 )
RETAINED EARNINGS
Unapproriated
Balance at beginning of quarter
Net Income
Cash Dividends
Balance at end of the quarter
Balance at end of the quarter
5,107,122
9,828,974
Balance at beginning of period
Additions/Deductions
(16,347,977)
-
(16,347,977)
-
Balance at end of the quarter Note 14)
(16,347,977)
(16,347,977)
TREASURY SHARES
TOTAL STOCKHOLDERS’ EQUITY ( Note 22)
3,222,194,078
3,185,301,702
6
MANILA BULLETIN PUBLISHING CORPORATION
COMPARATIVE STATEMENTS OF CASH FLOWS
For the Period Ended, September 30, 2012 and 2011
JANUARY TO
2012
SEPTEMBER
2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income
Adjustments to reconcile net income to net cash provided
by operating activities :
Depreciation
Changes in operating assets and liabilities :
Accounts receivable
Inventories
Prepaid items and other current assets
Other assets
Accounts payable and accrued expenses
Income tax payable
PHP 105,886,316
PHP 109,246,233
72,436,712
89,563,447
(18,535,904)
51,917,841
15,605,068
362,803
(156,164,042)
(12,137,846)
36,462,891
57,192,779
10,107,475
6,783,880
9,072,102
(13,760,201)
59,370,948
304,668,606
CASH FLOWS FROM INVESTING ACTIVITIES
Net additions to property and equipment
(74,713,834)
(70,208,651)
Net cash used in investing activities
(74,713,834)
(70,208,651)
(151,048,012)
178,232,456
(151,048,012)
(78,758,943)
Net cash used in financing activities
27,184,444
(229,806,955)
NET INCREASE ( DECREASE ) IN CASH
11,841,558
4,653,000
CASH AND CASH EQUIVALENTS, JANUARY 1
33,654,965
70,697,113
Net cash provided by operating activities
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of Cash dividends
Availment / Payment of bills/ loans
CASH AND CASH EQUIVALENTS, SEPTEMBER 30
PHP 45,496,523
PHP 75,350,113
See accompanying notes to financial statements
7
MANILA BULLETIN PUBLISHING CORPORATION
NOTES TO FINANCIAL STATEMENTS
1. Corporate Information
Manila Bulletin Publishing Corporation (the Company) was incorporated in the Philippines on February 2,
1900. Its principal office is located at Manila Bulletin Bldg., Muralla corner Recoletos Sts., Intramuros,
Manila. It is the first newspaper company in the Philippines to go public. As of this date, it is the oldest
newspaper published in the country and the second oldest English newspaper in the Far East. It started as
a commercial newspaper, publishing advertisements of shipping companies.
It has maintained its leadership in the newspaper industry and in the publications of magazines with its
advertisements, circulation and clientele. The broad sheet, Manila Bulletin is published seven days a
week; the Philippine Panorama, a Sunday Weekly Magazine; Style Weekend, a Friday Weekly Magazine;
Travel Magazine, published every second and fourth Thursday of the month; Tempo, a daily English
tabloid; Balita, a daily Filipino; monthly magazines, namely: Agriculture, to help boost food production
and promote livelihood programs; Cruising for sports and travel; Sense and Style, an upscale magazine,
covers various facets lifestyle from its core content on homes and gardening to beauty and fashion, health
and fitness, career, cooking and dining, travel, leisure and everything relevant to busy young urbanities;
Animal Scene, which focuses on animals from pets to endangered species; and Sports Digest for sports
aficionados and healthy entertainment; Sense and Style Magazine for woman’s fashion and beauty.
On July 1, 2005 Manila Bulletin Publishing Corporation acquired from Liwayway Publishing, Inc., its
Tagalog daily newspaper, Balita, and weekly vernacular magazines, Liwayway, Bisaya, Hiligaynon and
Bannawag including their trade names.
The Company is 54.18% owned by U.S. Automotive Co., Inc, which also incorporated in the Philippines.
On June 22, 1989, the Securities and Exchange Commission approved the Company’s application of
extension of amended Articles of Incorporation to extend its life for another Fifty (50) years.
The financial statements of the Company were authorized for issue by the Board of Directors on April 4,
2012.
2. Summary of Significant Accounting and Financial Reporting Policies
Basis of Preparation
The accompanying financial statements of the Company have been prepared under the historical cost
convention basis, except for available-for-sale (AFS) investments that have measured at fair value. The
financial statements are presented in the Philippine Pesos, which is the Company’s functional currency.
All amounts are rounded to the nearest peso, except when otherwise indicated.
Statement of Compliance
The Company’s financial statements have been prepared in compliance with Philippine Financial
Reporting Standards (PFRS). The term PFRS includes all applicable PFRS, Philippine Accounting
Standards (PAS) and interpretation, which have been approved by the Financial Reporting Standard
Council (FRSC) and adopted by the Securities and Exchange Commission (SEC), including SEC
pronouncements.
Changes in Accounting Policies
The accounting policies adopted are consistent with those of the previous financial year except for the
adoption of the following new standards and amendments to standards that are mandatory for the first
time for the financial year beginning January 1, 2011, except as otherwise stated.
8
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
• PFRS 7, Financial Instruments: Disclosures – Amendments resulting from May 2010 Annual
Improvements to PFRSs, effective for annual periods beginning on or after January 1, 2011. The
amendment emphasizes the interaction between quantitative and qualitative disclosures and the nature and
extent of risks associated with the financial instruments. Amendments to quantitative and credit risk
disclosures are as follow:
a. Clarify that only a financial asset whose carrying amount does not reflect the maximum exposure to
credit risk needs to provide further disclosure of the amount that presents the maximum exposure to
such risk;
b. Required for all the financial assets, disclosure of the financial effect of the collateral held as security
and other credit enhancements regarding the amount that best represents the maximum exposure to
credit risk (e.g., description of the extent to which collateral mitigates credit risk);
c. Remove the disclosure requirement of the collateral held as security, other credit enhancements and an
estimate of their fair value for financial assets that are past due but not impaired, and financial assets
that are individually determined to be impaired;
d. Remove the requirement to specifically disclose financial assets renegotiated to avoid becoming past
due or impaired; and
e. Clarify the additional disclosure required for financial assets obtained by taking possession for
collateral or other credit enhancements are only applicable to assets still held at the reporting date.
• PAS 1, Presentation of Financial Statements – Amendments resulting from May 2010 Annual
Improvements to PFRSs, effective for annual periods beginning on or after January 1, 2011. Clarifies that
an entity may present the analysis of other comprehensive income by item either in the statement of
changes in capital funds or in the notes to the financial statements.
• PAS 24, Related Party Disclosures – Revised definition of related parties, effective for annual periods
beginning on or after January 1, 2011. The standard was revised in response to concerns that the previous
disclosure requirements and the definition of a related party were too complex and difficult to apply in
practice, especially in environments where government control is pervasive. The revised standard
addresses these concerns by providing a partial exemption for government-related entities and by
simplifying the definition of a related party and removing inconsistencies.
• Philippine Interpretation IFRIC 14, The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction, effective for annual periods beginning on or after January 1, 2011.
Philippine Interpretation IFRIC 14, which is itself an interpretation of PAS 19, The Limit on a Defined
Benefit Asset, Minimum Funding Requirements and their Interaction, applies in the limited circumstances
when an entity is subject to minimum funding requirements and makes an early payment of contributions
to cover those requirements. The amendment permits such an entity to treat the benefit of such an early
payment as an asset.
Interpretations effective in 2011 but not relevant
• Amendments to PFRS 1, Amendments resulting from May 2010 Annual Improvements to PFRSs, effective
for annual periods beginning on or after January 1, 2011. Clarifies that, if a first-time adopter changes its
accounting policies or its use of the exemptions in PFRS 1 after it has published an interim financial
report in accordance with PAS 34 Interim Financial Reporting but before its first PFRS financial
statements are issued, it should explain those changes and update the reconciliations between previous
GAAP and PFRSs. The requirements in PAS 8 do not apply to such changes.
• PFRS 7, Financial Instruments: Disclosures – Amendments enhancing disclosures about transfers of
financial assets, effective for annual periods beginning on or after July 1, 2011. It require enhancements
to the existing disclosures in PFRS 7 where an asset is transferred but is not derecognized and introduce
new disclosures for assets that are derecognized but the entity continues to have a continuing exposure to
the asset after the sale.
• PAS 34, Interim Financial Reporting – Amendments resulting from May 2010 Annual Improvements to
PFRSs, effective for annual periods beginning on or after January 1, 2011. Emphasizes the principle in
PAS 34 that the disclosure about significant events and transactions in interim periods should update the
relevant information presented in the most recent annual financial report. Clarifies how to apply this
principle in respect of financial instruments and their fair values.
9
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
The application of these new and revised PFRSs has not had any material impact on the amounts reported
for the current and prior years but may affect the accounting for future transactions or arrangements.
Future Changes in Accounting Policies
The Company has not early applied the following new and revised PFRSs that have been issued but are
not yet effective:
Effective in 2012:
• PAS 1, Presentation of Financial Statements – Amendments to revise the way other comprehensive
income is presented, effective for annual periods beginning on or after July 1, 2012. Items of other
comprehensive income are required to be grouped into those that will and will not subsequently be
reclassified to profit or loss. Tax on items of other comprehensive income is required to be allocated on
the same basis. The measurement and recognition of items of profit or loss and other comprehensive
income are not affected by the amendments.
• PAS 12, Income Taxes – Limited scope amendment (recovery of underlying assets), effective for annual
periods beginning on or after January 1, 2012. It provides a presumption that recovery of the carrying
amount of an asset measured using the fair value model in PAS 40 Investment Property will, normally, be
through sale. As a result of the amendments, Income Taxes — Recovery of Revalued Non-Depreciable
Assets would no longer apply to investment properties carried at fair value.
Effective in 2013
• PFRS 12, Disclosures of Interests in Other Entities, effective for annual periods beginning on or after
January 1, 2013. Requires the extensive disclosure of information that enables users of financial
statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of
those interests on its financial position, financial performance and cash flows.
• PFRS 13, Fair Value Measurement, effective for annual periods beginning on or after January 1, 2013. It
establishes a single framework for measuring fair value where that is required by other standards. It
applies to both financial and non-financial items measured at fair value.
• PAS 19, Employee Benefits – Amended Standard resulting from the Post-Employment Benefits and
Termination Benefits projects, effective for annual periods beginning on or after January 1, 2013. The key
amendments include: (1) requiring the recognition of changes in the net defined benefit liability (asset)
including immediate recognition of defined benefit cost, disaggregation of defined benefit cost into
components, recognition of remeasurements in other comprehensive income, plan amendments,
curtailments and settlements (eliminating the 'corridor approach' permitted by the existing PAS 19); (2)
introducing enhanced disclosures about defined benefit plans; (3) modifying accounting for termination
benefits, including distinguishing benefits provided in exchange for service and benefits provided in
exchange for the termination of employment and affect the recognition and measurement of termination
benefits; (4) clarifying various miscellaneous issues, including the classification of employee benefits,
current estimates of mortality rates, tax and administration costs and risk-sharing and conditional
indexation features; and (5) incorporating other matters submitted to the PFRS Interpretations Committee.
• PAS 27, Financial Statements – Reissued as PAS 27 Separate Financial Statements (as amended in
2011), effective for annual periods beginning on or after January 1, 2013. Amended version of PAS 27
which now only deals with the requirements for separate financial statements, which have been carried
over largely not amended from PAS 27 Consolidated and Separate Financial Statements. Requirements
for consolidated financial statements are now contained in PFRS 10 Consolidated Financial Statements.
The Standard requires that when an entity prepares separate financial statements, investments in
subsidiaries, associates, and jointly controlled entities are accounted for either at cost, or in accordance
with PFRS 9 Financial Instruments. The standard also deals with the recognition of dividends, certain
group reorganizations and includes a number of disclosure requirements.
• PAS 28, Investments in Associates – Reissued as PAS 28 Investments in Associates and Joint Ventures (as
amended in 2011), effective for annual periods beginning on or after January 1, 2013. This standard
supersedes PAS 28 Investments in Associates and prescribes the accounting for investments in associates
10
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
and sets out the requirements for the application of the equity method when accounting for investments in
associates and joint ventures. The standard defines 'significant influence' and provides guidance on how
the equity method of accounting is to be applied (including exemptions from applying the equity method
in some cases). It also prescribes how investments in associates and joint ventures should be tested for
impairment.
Effective in 2014
• PAS 32, Financial Instruments: Presentation – Amendments relating to classification of rights issues,
effective for annual periods beginning on or after January 1, 2014. It requires a financial instrument that
gives the holder the right to acquire a fixed number of the entity's own equity instruments for a fixed
amount of any currency to be classified as an equity instrument if, and only if, the entity offers the
financial instrument pro rata to all of its existing owners of the same class of its own non-derivative equity
instruments. Prior to this amendment, rights issues (rights, options, or warrants) denominated in a
currency other than the functional currency of the issuer was accounted for as derivative instruments.
Effective in 2015
• PFRS 7, Financial Instruments: Disclosures – Amendments requiring disclosures about the initial
application of PFRS 9, effective for annual periods beginning on or after January 1, 2015 (or otherwise
when PFRS 9 is first applied).
• PFRS 9, Financial Instrument: Classification and Measurement, effective for annual periods beginning
on or after January 1, 2015 (mandatory application date amended December 2011). The standard
introduces new requirements on the classification and measurement of financial assets. It uses a single
approach to determine whether a financial asset is measured at amortized cost or fair value, replacing the
many different rules in PAS 39, Financial Instruments: Recognition and Measurement. The approach in
the new standard is based on how the entity manages its financial instruments (its business model) and the
contractual cash flow characteristics of the financial assets. The new standard also requires a single
impairment method to be used, replacing the many different impairment methods in PAS 39.
• PFRS 9, Financial Instrument: Accounting for financial liabilities and derecognition, effective for annual
periods beginning on or after January 1, 2015 (mandatory application date amended December 2011). A
revised version of PFRS 9 incorporating revised requirements for the classification and measurement of
financial liabilities, and carrying over the existing derecognition requirements from
• PAS 39 Financial Instruments: Recognition and Measurement. The revised financial liability provisions
maintain the existing amortized cost measurement basis for most liabilities. New requirements apply
where an entity chooses to measure a liability at fair value through profit or loss – in these cases, the
portion of the change in fair value related to changes in the entity's own credit risk is presented in other
comprehensive income rather than within profit or loss.
The Company does not expect any significant impact in the financial statements when it adopts the above
standards, amendments and Philippine interpretations. The revised and additional disclosures provided by
the standards, amendments and interpretations will be included in the financial statements when these are
adopted in 2011 to 2013, when applicable.
The principal accounting policies applied in the preparation of the financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
Cash and Cash Equivalents
Cash consists of cash on hand and in banks. Cash equivalents are short-term highly liquid investments
that are readily convertible to known amounts of cash with original maturities of three months or less and
that are subject to an insignificant risk of change in value.
Financial Assets and Liabilities
Date of recognition
Financial instruments are recognized in the statement of financial position when the Company becomes a
party to the contractual provisions of the instruments. Purchases or sales of financial assets that require
11
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
delivery of assets within the time frame established by the regulation or convention in the marketplace are
recognized on the settlement date.
Initial recognition and classification of financial instruments
Financial instruments are recognized initially at fair value. Except for financial instruments at fair value
through profit or loss (FVPL), the initial measurement of financial assets and liabilities includes
transaction cost. The Company classifies its financial assets in the following categories: financial assets
at FVPL, held to maturities (HTM) investments, available-for-sale (AFS) financial assets, and loans and
receivables. The Company classifies its financial liabilities as other financial liabilities. The
classification depends on the purpose for which the investments were acquired and whether they are
quoted in an active market. Management determines the classification of its investments at initial
recognition and, where allowed and appropriate, re-evaluates such designation at every reporting date.
Fair value measurement
The fair value for financial instruments traded in active markets at the financial position date is based on
their quoted market price or dealer price quotations (bid price for long positions and ask price for short
positions), without any deduction for transaction costs. When current bid and asking prices are not
available, the price of the most recent transaction provides evidence of the current fair value as long as
there has been a significant change in economic circumstances since the time of the transaction.
For all other financial instruments not listed in an active market, the fair value is determined by using
appropriate valuation techniques. Valuation techniques included net present value techniques,
comparison to similar instruments for which market observable prices exist, options pricing models, and
other relevant valuation models.
Designation at FVPL
The Company has designated financial assets and liabilities at FVPL when either:
• The assets or liabilities are managed, evaluated and reported internally on a fair value basis;
• The designation eliminates or significantly reduces an accounting mismatch which would otherwise
arise; or
• The asset or liability contains an embedded derivative that significantly modifies the cash flows that
would otherwise be required under the contract.
As of June 30, 2012 and December 31, 2011, the Company has no financial instruments designated at
FVPL.
HTM investments
HTM investments are quoted non-derivative financial assets with fixed or determinable payments and
fixed maturities for which management has the positive intention and ability to hold to maturity. Where
the company sells other than an insignificant amount of HTM investments, the entire category would be
tainted and reclassified as AFS financial assets. After initial measurement, these investments are
subsequently measured at amortized cost using the effective interest rate method, less impairment in
value. Amortized cost is calculated by taking into account any discount or premium on acquisition and
fees that are an integral part of the effective interest rate. The amortization is included in the investment
income in the statement of comprehensive income. Gains and losses are amortized in income when the
HTM investments are derecognized and impaired, as well as through the amortization process. The losses
arising from impairment of such investments are recognized in the statement of comprehensive income.
As of June 30, 2012 and December 31, 2011, the Company has no financial instruments classified as
HTM investments.
Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments and fixed maturities that
are not quoted in an active market. They are not entered into with the intention of immediate or shortterm resale and are not classified as financial assets held for trading, designated as AFS or FVPL.
After initial measurement, loans and receivables are subsequently measured at amortized cost using the
effective interest rate method, less allowance for impairment. Amortization cost is calculated by taking
into account any discount or premium on acquisition and fees that are an integral part of the effective
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MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
interest rate. The amortization is included in the interest income in the statement of comprehensive
income. The losses arising from impairment of such loans and receivables are recognized in Provision for
credit losses account in the statement of comprehensive income.
As of June 30, 2012 and December 31, 2011 , included under loans and receivables are the Company’s
cash and cash equivalents and trade and other receivables.
AFS financial assets
AFS financial assets are those which are designated as such or do not qualify to be classified or
designated as financial assets at FVPL, HTM investment or loans and receivables. They are purchased
and held indefinitely, and may be sold in response to liquidity requirement or changes in market
conditions. These include government securities, equity investments and other debt instruments.
AFS financial assets are subsequently measured at fair value. The effective yield component of AFS debt
securities, as well as the impact of restatement on foreign currency-denominated AFS debt securities, is
reported in earnings. Interest earned on holding AFS financial assets are reported as interest income using
the effective interest rate. Dividends earned on holding AFS financial assets are recognized in the
statement of comprehensive income as “Dividend income” when the right of the payment has been
established. The unrealized gains and losses arising from the fair valuation of AFS financial assets are
reported as “Reserve for fluctuation on AFS” in the equity section of the statement of financial position.
The losses arising from impairment of such investments are recognized as “Provision on impairment
losses” in the statement of comprehensive income. When the security is disposed of, the cumulative gain
or loss previously recognized in equity is recognized as “Net realized gain on sale of AFS financial
assets” in the statement of comprehensive income.
When the fair value of AFS financial assets cannot be measured reliably because of lack of reliable
estimates of future cash flows and discount rates necessary to calculate the fair value of unquoted equity
instruments, these investments are carried at cost.
The Company’s AFS financial assets includes equity securities and proprietary shares as of June 30, 2012
and December 31, 2011. (see Note 8)
Other financial liabilities
Issued financial instruments or their components, which are not designated as financial liabilities at FVPL
are classified as other financial liabilities, where the substance of the contractual arrangement results in
the Company having an obligation either to deliver cash or another financial assets to the holder, or to
satisfy the obligation other than by the exchange of a fixed amount of cash or another financial asset for a
fixed number of own equity shares. This includes investment contracts which mainly transfer financial
risk and has no or insignificant insurance risk.
After initial measurement, other financial liabilities are subsequently measured at amortized cost using the
effective interest rate method. Amortization cost is calculated by taking into account any discount or
premium on the issue and fees that are an integral part of the effective interest rate. Any effects of
restatement of foreign currency-denominated liabilities are recognized in the statement of comprehensive
income.
As of June 30, 2012 and December 31, 2011, included in other financial liabilities are the Company’s
trade and other payables, bills payables and loans payable.
Offsetting of Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the statements of
financial position if, and only if, the Company has a legal right to set off the recognized amounts and
intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. This is
generally the case with master netting agreements; thus, the related assets and liabilities are presented
gross in the statement of financial position.
Derecognition of Financial Assets and Financial Liabilities
Financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is derecognized when:
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MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
•
•
•
The rights to receive cash flows from the asset have expired;
The Company retains the right to receive cash flows from the asset, but has assumed an obligation to
pay them in full without material delay to third party under a “pass-through” arrangement; or
The Company has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all risks and rewards of the asset, but has transferred control of the asset.
Where the Company has transferred its rights to receive cash flows from an asset or has entered into a
pass-through arrangement and has neither transferred nor retained substantially all the risks and rewards
of the asset nor transferred control of the asset, the asset is recognized to the extent of the Company’s
continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the
transferred asset is measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Company would required to repay.
Financial liabilities
A financial liability is derecognized when the obligation under the liability was discharged, cancelled or
has expired.
Where an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as a derecognition of the original liability and the recognition of a new liability, and the difference
in the respective carrying amounts in recognized in the consolidated statement of income.
Impairment of Financial Assets
The Company assesses at each end of reporting period whether there is objective evidence that the
financial asset or group of financial asset or group of the financial assets is impaired. A financial asset or a
group of financial assets is deemed to be impaired if, and only if, there is objective evidence of
impairment as a result of one or more events that has occurred after the initial recognition of the asset (an
incurred ‘loss event) and that loss event (or events) has an impact on the estimated future cash flows of
the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment
may include indications that the borrower or a group of borrowers is experiencing significant financial
difficulty, default or delinquency in interest or principal payments, the probability that they will enter
bankruptcy or other financial reorganization and where observable data indicate that there is measurable
decrease in the estimated future cash flows, such as changes in arrears or economic conditions that
correlate with defaults.
Financial assets carried at cost
If there is objective evidence that an impairment loss on an unquoted equity instrument that is not carried
at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to an
must be settled by delivery of such an unquoted equity instrument has been incurred, the amount of the
loss is measured as the difference between the asset’s carrying amount and the present value of the
estimated future cash flows discounted at the current market rate of return of a similar financial asset.
Loans and receivables
For loans and receivables carried at amortized cost, the Company first assesses whether objective
evidence of impairment exists individually for financial assets that are individually significant, or
collectively for financial assets that are not individually significant. If the Company determines that no
objective evidence of impairment exists for individually assessed financial asset, whether significant or
not, it includes the asset in a group of financial assets with similar credit risk characteristics and
collectively assesses for impairment. Assets that are individually assessed for impairment and for which
an impairment loss is, continues to be, recognized are not included in a collective assessment for
impairment.
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is
measured as the difference between the asset’s carrying amount and the present value of the estimated
future cash flows. The carrying amount of the asset is reduced through use of an allowance account and
the amount of loss is charged to the statement of comprehensive income. Interest income continues to be
recognized based on the original effective interest rate of the asset. Loans, together with the associated
allowance account, are written off when there is no realistic prospect of future recovery and all collateral
has been realized. If, in a subsequent period, the amount of the estimated impairment loss decreases
14
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
because of an event occurring after the impairment was recognized, the previously recognized impairment
loss is reversed. Any subsequent reversal of an impairment loss is recognized in the statement of
comprehensive income, to the extent that the carrying value of the asset does not exceed its amortized cost
at the reversal date.
The present value of the estimated future cash flows is discounted at the financial asset’s original effective
interest rate. Time value is generally not considered when the effect of discounting is not material. If a
loan has a variable interest rate, the discount rate for measuring any impairment loss is the current
effective interest rate, adjusted for the original credit risk premium. The calculation of the present value
of the estimated future cash flows of a collateralized financial asset reflects the cash flows that may result
from foreclosure less costs for obtaining and selling the collateral, whether or not foreclosure is probable.
For the purpose of a collective evaluation of impairment, financial assets are group on the basis of such
credit risk characteristics as type of borrower, collateral type, past-due status and term. Future cash flows
in a group of financial assets that are collectively evaluated for impairment are estimated on the basis of
historical loss experience for assets with credit risk characteristics similar to those in the group. Historical
loss experience is adjusted on the basis of current observable data to reflect the effects of current
conditions that did not affect the period on which the historical loss experience is based and to remove the
effects of conditions in the historical period that do not exist currently.
AFS financial asset
In case of equity investments classified as AFS financial assets, impairment indicators would include a
significant or prolonged decline in the fair value of the investments below its cost. Where there is
evidence of impairment, the cumulative loss – measured as the difference between the acquisition cost
and the current fair value, less any impairment loss on that financial asset previously recognized in the
statement of comprehensive income – is removed from the equity and recognized in the statement of
comprehensive income. Impairment losses on equity investments are not reversed through the statement
of comprehensive income. Increases in fair value after impairment are recognized directly in equity.
In the case of debt instruments classified as AFS financial assets, impairment is assessed based on the
same criteria as financial assets carried at amortized cost. Interest continues to be accrued at the original
effective interest rate on the reduced carrying amount of the asset and is recorded as part of “Investment
income” in the statement of comprehensive income. If in subsequent year, the fair value of a debt
instrument increased and the increase can be objectively related to an event occurring after the impairment
loss was recognized in the statement of comprehensive income, the impairment loss is reversed through
the statement of comprehensive income.
If there is objective evidence that an impairment loss on an unquoted equity instrument that is not carried
at fair value because its fair value cannot be reliably measured, or on a derivative asset that is linked to
and must be settled by delivery of such unquoted equity instrument has been incurred, the amount of the
loss is measured as the difference between the asset’s carrying amount and the present value of estimated
future cash flows discounted at the current market rate of return for a similar asset.
Inventories
Inventories are valued at the lower of cost or net realizable value (NRV). NRV is the estimated selling
price in the ordinary course of business, less estimated costs of completion and the estimated costs
necessary to make the sale. Cost is determined by the weighted average method for newsprint and by
first-in, first-out method for machinery spare parts and supplies. Cost comprises all costs of purchase,
handling costs and other costs incurred in bringing the inventories to the present location or condition.
Allowance is provided for obsolescence due to deterioration, damage, bad quality, age and technological
changes. Full obsolescence allowance is provided when the inventory is non-moving for more than one
year. An allowance for market decline is also provided equivalent to the difference between the cost and
the NRV of inventories. When inventories are sold, the related allowance is reversed in the same period.
Newsprint and printing supplies are consumed upon withdrawal from the storeroom for use in the daily
printing of newspapers and magazines.
Retirement Plan
The Company has a funded, non-contributory retirement plan, administered by a common retirement
trustee, covering its employees on regular status. Retirement benefits are provided for under the
Collective Bargaining Agreement (CBA). Pertinent provision of the Agreement provides for, the
15
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
payment of gratuity benefits based on the longevity of service to resigned employees. However, under
Section 4, Article X of the agreement, the Company at its option, may retire any employee or worker who
had rendered at least 20 years of service or had reached the age of 60 years on his birthday by paying him
full benefits provided in Section 1 of the same Article.
The Company set up a fund to fully cover the estimated liability for retirement benefits. As a result, the
Company maintains a separate bank account exclusively for the purpose of the plan.
All officers and regular employees are allowed to borrow from the retirement fund. The Treasurer of the
Company oversees the management of the said retirement fund.
The new CBA was signed between the Bulletin Progressive Union and Management on August 29, 2012
for a period of five (5) years after a cordial and mutually satisfactory negotiation.
The liability recognized in the statement of financial position in respect of the defined benefit pension
plans is the present value of the defined benefit obligation at the financial position date minus the fair
value of plan assets, together with adjustments for actuarial gains/losses and past service costs. The
defined benefit obligation is calculated periodically by independent actuaries using the projected unit
credit method. The present value of the defined benefit obligation is determined by discounting the
estimated future cash flows using interest rates of debt securities that are denominated in the currency in
which the benefits will be paid, and that have terms to maturity which approximate the terms of the
related retirement liability. Gains or losses on the curtailment or settlement of retirement benefit are
recognized when the curtailment or settlement occurs. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are credited to or charged against income when the net
cumulative unrecognized actuarial gains and losses at the end of the previous period exceeds 10% of the
higher of the defined benefit obligation and the fair value of the plan assets at that date. These gains or
losses are recognized over the expected average remaining working lives of the employees participating in
the plan.
Past service cost, if any, are recognized immediately in the statement of comprehensive income, unless the
changes to the pension plan are conditional on the employees remaining in service for a specified period
of time (the vesting period). In this case, the past service cost are amortized on a straight-line basis over
the vesting period.
The transitional asset as of January 1, 2009 is as follows:
2009
Fair value of plan assets
Present value of obligation
Transitional liability
Liability recognized in the statement of financial position
Increase in asset
P
P
135,771,074
103,540,972
32,230,102
32,230,102
The transition asset is recognized immediately under PAS 8.
Non-current Asset Held for Sale
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than through continuing use. This condition is
regarded as met only when the sale is highly probable and the non-current asset (or disposal group) is
available for immediate sale in its present condition. Management must be committed to the sale, which
should be expected to qualify for recognition as a completed sale within one year from the date of
classification.
Investment Property
Investment properties are properties held to earn rentals and/or for capital appreciation (including property
under construction for such purposes). Investment properties are measured initially at cost, including
transaction costs. Subsequent to initial recognition, investment properties are measured at fair value.
Gains and losses arising from changes in the fair value of investment properties are included in profit or
loss in the period in which they arise.
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MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
An investment property is derecognized upon disposal or when the investment property is permanently
withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss
arising on derecognition of the property (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset) is included in profit or loss in the period in which the property is
derecognized.
Property, Plant and Equipment
Recognition and measurement
Property, plant and equipment, except for land, are stated at cost less accumulated depreciation. Cost of
an item of property, plant and equipment comprises of its purchase price and any cost attributable in
bringing the asset to its intended location and working condition. The cost of self-constructed assets
includes the costs of materials and direct labor, and any other cost directly attributable to bringing the
asset to a working condition for its intended use, and the costs of dismantling and removing the items and
restoring to site on which they are located. Cost also includes interest and other financing charges on
borrowed funds used to finance the acquisition of property and equipment to the extent incurred during
the period of installation and construction.
Land is stated at cost less any impairment in value.
Major spare parts and stand-by equipment items that the Company expects to use more than one (1)
period and can be used only in connection with an item of property, plant and equipment are accounted
for as property, plant and equipment.
When parts of an item of property and equipment have different useful lives, they are accounted for as
separate items (major components) of property, plant and equipment.
Construction in progress, included in property, plant and equipment, is stated at cost. This cost includes
cost of construction, plant and equipment and other direct costs. Construction in progress is not
depreciated until such time as the relevant assets are completed and put into operational use.
Projects under construction are transferred to the related property, plant and equipment account when the
construction or installation and related activities necessary to prepare the property, plant and equipment
for their intended use are completed, and the property, plant and equipment are ready for service.
Subsequent costs
The cost of replacing of an item of property, plant and equipment is recognized in the carrying amount of
the item if it is probable that the future economic benefits embodied within the part will flow to the
Company and its cost can be measured reliably. The cost of the day-to-day servicing of property, plant
and equipment are recognized in profit or loss as incurred.
The carrying values of property, plant and equipment are reviewed for impairment when events or
changes in the circumstances indicate that the carrying values may not be recoverable.
Depreciation
Depreciation and amortization of property, plant and equipment commence, once the property, plant and
equipment are available for use (i.e. when it is in the location and condition necessary for it to be capable
of operating in the manner intended by the Company) and are computed using the straight-line method
over the estimated useful lives (EUL) of the assets regardless of utilization. Depreciation is recognized in
profit or loss.
The EUL for each item of property, plant and equipment of the Company follows:
Category
Number of years
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MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
Buildings
Machineries and equipment
Furniture, fixtures and equipment
Transportation equipment
Leasehold improvement
10 - 20
10 - 15
3 - 10
3-7
5 - 10 or term of lease
whichever is shorter
Depreciation methods, useful lives and residual values are reassessed periodically to ensure that the
periods and method of depreciation are consistent with the expected pattern of economic benefits from
items of property and equipment.
Derecognition
An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition
of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the
item) is included in the statements of comprehensive income, in the year the item is derecognized.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes
in circumstances indicate that the carrying values may not be recoverable.
Intangible Asset
Goodwill
Goodwill represents the excess of cost of the acquisition over the fair value of identifiable net assets of the
investee at the date of acquisition which is not identifiable to specific assets. Following initial recognition,
goodwill is measured at cost less any accumulated impairment losses. Goodwill on acquisitions is not
amortized but is reviewed for impairment, annually or more frequently if events of changes in circumstances
indicate that the carrying value may be impaired.
Impairment of Non-Financial Assets
The carrying amounts of the Company’s non-financial assets, other than deferred tax assets, are reviewed
at each reporting date to determine whether there is any indication of impairment. If any such indication
exists then the asset’s recoverable amount is estimated.
An impairment loss is recognized when the carrying amount of an asset or its cash-generating unit
exceeds its recoverable amount.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair
value less costs to sell. In assessing the value in use, the estimated future cash flows are discounted to
their present value using the pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset.
Impairment losses recognized in prior periods are assessed at each reporting date for any indications that
the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in
the estimates using the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation and amortization, if no impairment loss had been recognized.
Income Taxes
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be
recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount
are those that are enacted or substantively enacted as of the financial position date.
Deferred tax
Deferred income tax is provided, using balance sheet liability method on temporary differences at the
financial position date between the tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes.
Deferred income tax liabilities are recognized for all deductible temporary differences, carryforward benefit
of unused tax credits (minimum corporate income tax or MCIT) and unused tax losses (net operating loss
carry over or NOLCO), to the extent that it is probable that taxable profit will be available against which the
18
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
deductible temporary differences, and the carryforward benefit of unused tax credits and unused tax losses
can be utilized.
The carrying amount of deferred income tax assets is reviewed at each financial position date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred income tax to be utilized. Unrecognized deferred tax assets are reassessed at each financial
position date and are recognized to the extent that it has become probable that future taxable profit will
allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that is expected to apply to the period
when the asset is realized or settled, based on tax rate (and tax laws) that has been enacted or substantively
enacted at the financial position date.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same
taxation authority.
Value added Tax
Revenue, expenses and assets are recognized net of the amount of Value added tax (VAT) except:
• Where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation
authority, in which case the sales tax is recognized as part of the cost of acquisition of the asset or as
part of the expense item as applicable;
• Receivables and payables that are stated with the amount of VAT included.
The net amount of VAT recoverable from, or payable to, the taxation authority is included as part of
“Prepaid expenses and other current assets” or “Other payables” account in the statement of financial
position.
Borrowings and Borrowing Costs
All borrowings are initially recognized at the fair value of the consideration received less directly attributable
debt issuance costs.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost
using the effective interest method. Amortized cost is calculated by taking into consideration any issue
costs, and any discount or premium of settlement.
Borrowing costs are generally expensed in the period in which they are incurred and are shown in the
statements of comprehensive income. Borrowing costs and other finance costs incurred during the
construction period on borrowing used to finance the construction of an asset are capitalized to the
appropriate asset accounts. Capitalization of borrowing costs commences when the activities to prepare
the asset are in progress and expenditures and borrowing costs are being incurred. The capitalization of
these borrowing costs ceases when substantially all the activities necessary to prepare the asset to its
intended use are complete. If the carrying amount of the asset exceeds its recoverable amount, an
impairment loss is recorded. Capitalized borrowing cost is based on the applicable weighted average
borrowing rate.
Equity
Share Capital
Capital stock is determined using the nominal value of shares that have been issued.
Retained Earnings
Retained earnings include all current and prior period results as disclosed in the statement of
comprehensive income.
Treasury shares
Treasury shares are recorded at cost and are presented as a deduction from equity. When the shares are
retired, the capital stock account is reduced by its par value. The excess of cost over par value upon
retirement is debited to the following accounts in the order given: (a) additional paid-in capital to the
extent of the specific or average additional paid-in capital when the shares were issued, and (b) retained
earnings. No gain or loss is recognized in the statement of comprehensive income on the purchase, sale,
issue or cancellation of the Company’s own equity instruments.
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MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
Comprehensive Income
The Company uses single statement of comprehensive income, in which it presents all items of income
and expenses recognized during the period.
Revenue and Expense Recognition
Revenue is recognized to the extent that it is probable that the economic benefit will flow to the Company
and the revenue can be measured reliably. The following specific recognition criteria must also be met
before revenue is recognized:
Revenues from newspapers and magazines and placement of advertisements are recorded immediately
upon sale either to readers, dealers or advertisers, net of discounts allowed.
Circulation
Revenue from circulation consists of sales of newspapers, the daily broadsheet Manila Bulletin, English
tabloid, Tempo and Tagalog tabloid, Balita. Weekly and monthly magazines also contribute to the total
sales revenue of the Company.
Advertising
The newspapers and magazines carry with them advertisements, which are a major source of its revenue.
Interest income
Interest income from bank deposits is recognized as the interest accrues taking into account the effective
yield on the asset.
Rental income
Rental income is recognized in the income statement when earned in accordance with the term of the lease
agreement and on a straight-line basis over the term of the lease.
Dividend income
Dividend income is recognized when the shareholder’s right to receive the payment is established. Other
income are recognized when earned.
Revenue from exchange transactions
Under PAS 18, revenue cannot be recognized if the amount of revenue is not reliably measurable.
SIC 31 deals with the circumstances in which a seller can reliably measure revenue at the fair value
of advertising services received or provided in a barter transaction. Under SIC 31, revenue from a
barter transaction involving advertising cannot be measured reliably at the fair value of advertising
services received. However, a seller can realiably measure revenue at the fair value of the
advertising services it provides in a barter transaction by reference only to a non-barter transaction
that:
•
•
•
•
•
Involve advertising similar to the advertising in the barter transaction;
Occur frequently;
Represent a predominant number of transactions and amount when compared to all transactions
to provide advertising that is similar to the advertising in a barter transaction;
Involve cash and/or another form of consideration (such as marketable securities, nonmonetary assets, and other services) that has a reliably measurable fair value; and
Do not involve the same counterparty as in the barter transaction.
Goods received in exchange for advertisement pursuant to an ex-deal transaction executed between the
Company and its customers are recorded at fair value of the advertising services it provides. Revenue is
recognized upon placement of advertisements.
Royalty income
Royalty income is recognized on accrual basis in accordance with the substance of the relevant agreement.
Printing revenue
Printing revenue is recognized upon actual printing.
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MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
Other income
Other income is recognized upon sale of scrap, newsprint wastes, spoiled newspapers and notarizations.
Cost and expenses are charged to operations when incurred.
Leases
The determination of whether an arrangement is, or contains a lease is based on the substance of the
arrangement at inception date, and requires an assessment of whether the fulfillment of the arrangement is
dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset. A
reassessment is made after inception of the lease only if one of the following applies:
(i) there is a change in contractual terms, other than a renewal or extension of the arrangement;
(ii) a renewal option is exercised or an extension is granted, unless that term of the renewal or extension
was initially included in the lease term;
(iii) there is a change in the determination of whether fulfillment is dependent on a specified asset; or
(iv) there is a substantial change to the asset.
Where a reassessment is made, lease accounting shall be commence or cease from the date when the
change in circumstances gave rise to the reassessment for any of the scenarios above, and at the date of
renewal or extension period for the second scenario.
Company as a lessee
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Operating lease payments are recognized as an expense in the statement of
comprehensive income and expenses on a straight-line basis over the lease term.
Company as a lessor
Leases where the Company does not transfer substantially all the risks and benefits of ownership of the
assets are classified as operating leases. Initial direct costs incurred in negotiating operating leases are
added to the carrying amount of the leased asset and recognized over the lease term on the same basis as
the rental income. Contingent rents are recognized as revenue in the period in which they are earned.
Rental income from operating leases is recognized on a straight-line basis over the term of the relevant
lease. Initial direct costs incurred in negotiating and arranging an operating lease are added t carrying
amount of the leased asset and recognized on a straight-line basis over the lease term.
Basic and Diluted Earnings per Share
Basic and diluted earnings per share is computed by dividing net income for the year by the weighted
average number of common shares issued and outstanding during the year, after giving retroactive effect
to stock dividends declared, stock rights exercised and stock split, if any, declared during the year. The
Company does not have any potential diluters; hence, basic and diluted earnings per share are the same.
Provision and Contingencies
Provision
Provision is recognized when: (a) the Company has a present obligation (legal or constructive) as a result of
a past event; (b) it is probable (i.e. more likely than not) that an outflow of resources embodying economic
benefits will be required to settle the obligation; and (c) a reliable estimate can be made of the amount of the
obligation. Where the Company expects a provision to be reimbursed, the reimbursement is recognized as
a separate asset but only when the reimbursement is virtually certain. If the effect of the time value of
money is material, provisions are determined by discounting the expected future cash flows at a pretax
rate that reflects current market assessments of the time value of money and, where appropriate, the risks
specific to the liability. Where discounting is used, the increase in the provision due to the passage of
time is recognized as interest expense. Provisions are reviewed at each financial position date and
adjusted to reflect the current best estimate.
Contingencies
A contingent asset is not recognized in the financial statements but disclosed when an inflow of economic
benefits is probable. Contingent liabilities are not recognized in the financial statements. They are
disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.
Related Party Transactions
21
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
Parties are considered to be related if one of the parties has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subjected to common control or common
significant influence. Related parties may be individuals or corporate entities.
Subsequent Event
Post-year-end events that provide additional information about the Company’s position at the financial
position date (adjusting events) are reflected in the financial statements. Post-year-end events that are not
adjusting events are disclosed in the notes to financial statements, when material.
Foreign Currency Transaction and Translations
Transactions in foreign currencies are initially recorded in the functional currency rate at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the
functional currency rate of exchange ruling at the balance sheet date. All differences are taken to profit or
loss.
Segment Reporting
A business segment is a group of assets and operations engaged in providing products or services that are
subject to risks and returns that are different from those of other business segments. A geographical
segment is engaged in providing products or services within a particular economic environment that are
subject to risks and return that are different from those of segments operating in other economic
environments.
3. Significant Accounting Judgments and Estimates
The preparation of the financial statements in accordance with PFRS requires the Company to make
estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses and
disclosure of contingent assets and contingent liabilities. Future events may occur which will cause the
assumptions used in arriving at the estimates to change. The effects of any change in estimates are
reflected in the financial statements as they become reasonably determinable.
Estimates and judgments are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances.
The following are critical judgments and key estimates and assumptions that have a significant risk of
material adjustment to the carrying amounts of assets and liabilities within the next financial year and/or
in future periods:
Critical Accounting Judgments
Critical accounting judgments made in applying the Company’s accounting policies include:
Revenue recognition
In making judgment, the management considered the detailed criteria for the recognition of revenue from
the sale of goods set out in PAS 18 Revenue and, in particular, whether the Company had transferred to
the buyer the significant risks and rewards of ownership of the goods.
Fair value of financial instruments
Where fair values of financial assets and financial liabilities recorded on the statement of financial
position cannot be derived from the active markets, they are determined using a variety of valuation
techniques that include the use of mathematical models. The input to these models is taken from
observable markets where possible, but where this is not feasible, a degree of judgment is required in
establishing fair values.
Operating leases agreement
The Company has entered into various lease agreements either as a lessor or as a lessee. Critical judgment
was exercised by the management to distinguish each lease agreement as either an operating or finance
lease by looking at the transfer or retention of significant risk and rewards of ownership of the properties
covered by the agreements. All of the Company’s lease agreements were determined as operating leases.
22
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
Rent income amounted to P1.6 and P38.3 million for the years ended December 31, 2011 and 2010,
respectively (see Notes 18, 24).
Rental expense amounted to P17.3 and P18.4million for the years ended December 31, 2011 and 2010,
respectively (see Notes 18, 24).
Contingencies
Contingent liabilities are not recognized in the financial statements but disclosed unless the possibility of
an outflow of resources embodying economic benefits is remote. Contingent assets are not recognized in
the financial statements but disclosed when an inflow of economic benefits is probable.
As of December 31, 2011, the Company has no contingencies since the Company is neither a plaintiff nor
a defendant in any legal actions in or out of court.
Functional currency
The Company has determined that its functional currency is the Philippine peso. It is the currency of
primary economic environment in which the Company operates.
Distinction between investment properties and owner-occupied properties
The Company determines whether a property qualifies as investment property. In making its judgment,
the Company considers whether the property generates cash flows largely independent of the other assets
held by an entity. Owner-occupied properties generate cash flows that are attributable not only to property
but also to the other assets used in the production or supply process.
Some properties consist of a portion that is held to earn rentals or for capital appreciation and another
portion that is held for use in the production of services or for administrative purposes. If these portions
cannot be sold separately, the property is accounted for as investment property only if an insignificant
portion is held for use in the production of services or for administrative purposes. Judgment is applied in
determining whether ancillary services are so significant that a property does not qualify as investment
property. The Company considers each property separately in making judgment.
The Company classifies all properties which have a portion that is earning rentals and another portion
which are used in production of services or used in administrative purposes as owner-occupied properties
based on the criterion above. In this case, such properties were included in the account “Property, plant
equipment”.
Key Sources of Estimation Uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty at the
statement of financial date, that have a significant risk of causing a material adjustment the carrying
amounts of resources and liabilities within the next financial year are discussed below:
Fair values of financial assets and liabilities
The Company carries certain financial assets at fair value, which requires extensive use of accounting
estimates and judgments. Fair value determinations for financial assets and liabilities are based generally
on listed or quoted market prices. If prices are not readily determinable or if liquidating the positions is
reasonably expected to affect market prices, fair value is based on either internal valuation models or
management’s estimate of amounts that could be realized under current market conditions, assuming an
orderly liquidation over a reasonable period of time.
The fair values of the financial assets and liabilities as of September 30, 2012 and December 31, 2011are
disclosed in Note 25.
Estimated allowance for impairment losses on trade receivables
The Company maintains an allowance for doubtful accounts at a level considered adequate to provide for
potential uncollectible receivables. The level of allowance is evaluated by the Company on the basis of
factors that affect the collectability of the accounts. The review is accomplished using a combination of
specific and collective assessment. The factors considered is specific impairment assessment are the
length of the Company’s relationship with customers, customers’ current credit status based on known
factors, age of the accounts and other available information that will indicate objective evidence that the
customers may unable to meet their financial obligations. The collective impairment assessment is based
on historical loss experience and deterioration in the market in which the customers operate. The amounts
23
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
and timing of recorded provision for doubtful accounts for any period would differ if the Company made
different assumptions or utilized different estimates.
The related balances follow (see Note 5):
2011
Sept. 30, 2012
Receivables
Allowance for impairment losses
Provision for impairment loss
Writte-off of receivables
P
2,078,550,242
71,206,483
3,017,779
-
P
P
2,054,349,401
47,241,546
4,001,091
20,947,158
Net realizable value of inventories
The Company records a provision for excess of cost over the net realizable value of materials and supplies
whenever the value of material and supplies becomes lower than cost due to damage, physical
deterioration, obsolescence, change in price levels or other causes. The lower of cost or net realizable
value of inventories is reviewed on a monthly basis to reflect the accurate valuation in the financial
records. Materials and supplies identified to be obsolete and unusable are written off and charged as
expense for the year.
As at September 30, 2012, the Company recorded an allowance for market decline on inventories of news
print and press supplies.
The carrying values of inventories amounted to P1,144 million and P1,196 million as of September 30,
2012 and December 31, 2011, respectively. For the period ended, September 30, 2012 and the year ended
December 31, 2011, the Company did not provide any provision for the excess of cost over the net
realizable value of inventories (see Note 6).
Estimated useful lives of property, plant and equipment
The Company reviews annually the estimated useful lives of property, plant and equipment based on the
period over which the assets are expected to be available for use and are updated if expectations differ
from previous estimates due to physical wear and tear, technical or commercial obsolescence. It is
possible that future results of operations could be materially affected by changes in these estimates
brought about by changes in the factors mentioned.
As of September 30, 2012 and December 31, 2011 , the carrying amount of the Company’s property plant
and equipment amounted to P2,871,730,002 and P2,869,452,880 respectively, (see Note 11).
Impairment of Non-Financial Assets
The Company assesses impairment on assets whenever events or changes in circumstances indicate that
the carrying amount of an asset may not be recoverable. The factors that the Company considers
important which could trigger an impairment review include the following:
• significant underperformance relative to expected historical or projected future operating results;
• significant changes in the manner of use of the acquired assets or the strategy for overall business; and
• significant negative industry or economic trends.
The Company evaluated impairment on non-financial assets on a basis described accounting policy.
No indications of impairment were noted on property, plant and equipment as of September 30, 2012 and
December 31, 2011.
As of September 30, 2012 and 2011, the Company recorded no impairment loss on its available-for-sale
securities.
Realizability of Deferred Tax Assets
The Company reviews its deferred tax assets at each financial position date and reduces the carrying
amount to the extent that is no longer probable that sufficient taxable profit will be available to allow all
24
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
6. Inventories
The account at September 30, 2012 and December 31, 2011 consist of the following:
September 30, 2012
P
Newsprint
Printing supplies
Spare parts
Total costs
Allowance for inventory write down
Net realizable value
P
965,189,376
170,700,421
15,572,646
1,151,462,443
7,068,324
1,144,394,119
2011
P
P
1,043,260,190
149,547,457
10,572,636
1,203,380,283
7,068,324
1,196,311,960
Included in the account spare parts and supplies, are printing materials and spare parts of the old
machines.
As discussed in Note 3, the Company considers any adjustment necessary for the obsolescence in
determining the net realizable value.
These inventories do not secure any existing outstanding loans obligation with any private or public
financial institutions.
7. Other Current Assets
The account at September 30, 2012 and December 31, 2011 consists of the following:
September 30, 2012
Current
Prepaid items
VAT input tax
Rental deposit
Recoverable deposit
Deferred debit
Deferred input tax
Emergency fund
Other assets
P
P
117,845,398
10,268,709
5,961,055
753,885
107,642
93,611
1,500
32,668,038
167,699,838
2011
P
P
123,643,189
8,905,217
5,235,598
753,885
107,642
93,611
1,500
29,321,999
168,062,642
Prepaid items consist of local and internal revenue taxes and insurance premiums of the Company
properties owned and/or leased.
To expand its network and reach out to various advertisers, the Company is planning to establish branches
in different key cities all over the Philippines, Prepaid taxes are being amortized on a regular basis.
Other assets represents receivable from ex-deal transactions made by the Company which were entered
into exchange agreements with various advertisers such as real estate owners, developers, car
manufacturers and others. The contracts provide among others that for every advertisement placed by
advertisers on the newspaper, the corresponding amount that will be accumulated will be exchanged for
the product/s that a particular advertiser is selling. The items claimed which will not be useful to the
Company will be disposed.
26
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
8. Available-for-sale Investments
The available-for-sale investment consists of:
September 30, 2012
Equity security- quoted
Proprietary shares
P
5,449,040
315,000
5,764,040
P
2011
P
P
5,449,040
315,000
5,764,040
The roll forward analysis of this account follows:
September 30, 2012
Beginning balance
Impairment of AFS
Changes in fair value
Ending balance
P
5,764,040
5,764,040
P
2011
P
P
5,368,156
395,884
5,764,040
The roll forward analysis of unrealized gain on AFS account follows:
September 30, 2012
Beginning balance
Impairment of AFS
Changes in fair value
Ending balance
P
P
5,107,122
5,107,122
2011
P
P
4,711,239
395,884
5,107,123
9. Assets Held-for-sale
The assets held-for-sale were acquired through an ex-deal transaction with various clients. The Company
is committed to a plan to sell the assets immediately as soon as there is ready buyer. The Company has an
active program to locate buyers. As of September 30, 2012 and December 31, 2011, the account has a
balance of P53,101,287.
10. Investment Properties
The company acquired land located in Sta. Rosa, Laguna amounting to P94,808,970 as of September 30,
2012 and December 31, 2011. The Company intended to hold the property for capital appreciation.
27
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
11. Property, Plant and Equipment
The rollforward analysis of this account follows:
September 30, 2012
Land
COST
At January 1, 2012
Additions
Retirements/disposals
At September 30, 2012
ACCUMULATED DEPRECIATION
AMORTIZATION AND
IMPAIRMENT LOSS
At January 1, 2012
Depreciation, amortization, and
impairment loss
Retirements/disposals
At September 30, 2012
NET BOOK VALUE
AS OF September 30, 2012
P 255,568,682
255,568,682
Leasehold
improvements
Buildings
P
604,654,586
604,654,586
P
Depreciation, amortization, and
impairment loss
Retirements/disposals
At December 31, 2011
NET BOOK VALUE
AS OF DECEMBER 31, 2011
3,087,821,614
50,581,236
P
3,138,402,850
849,487,945
23,288,847
872,776,792
Transportation
equipment
P
71,067,074
843,751
71,910,825
Total
P
4,886,092,231
74,713,834
4,960,806,065
103,112,372
16,368,510
1,047,422,173
785,308,441
64,427,854
2,016,639,350
-
7,403,973
110,516,345
1,058,909
45,775,300
17,427,419
1,093,197,473
13,736,716
799,045,157
4,461,814
68,889,668
72,436,712
2,089,076,062
P 255,568,682
P
Land
ACCUMULATED DEPRECIATION
AMORTIZATION AND
IMPAIRMENT LOSS
At January 1, 2011
P
Furniture, fixtures
and equipment
-
494,138,241
P
December 31, 2011
COST
At January 1, 2011
Additions
Retirements/disposals
At December 31, 2011
17,492,330
17,492,330
Machinery, tools
and equipment
P 405,568,682 P
(150,000,000)
255,568,682
64,911
Buildings
Leasehold
improvements
632,000,540 P
5,154,046
(32,500,000)
604,654,586
17,492,330
17,492,330
P
2,045,205,377
P
Machinery, tools
and equipment
P
3,021,963,926
65,857,688
73,731,635
P
Furniture, fixtures
and equipment
P
3,087,821,614
844,603,389
4,884,555
849,487,944
3,021,157
P
Transportation
equipment
P
66,742,967
4,324,107
71,067,074
2,871,730,003
Total
P
4,988,371,834
80,220,396
(182,500,000)
4,886,092,230
-
90,170,454
14,772,544
974,742,437
762,391,258
58,283,373
1,900,360,066
-
12,941,918
1,595,966
72,679,736
22,917,183
785,308,441
6,144,481
64,427,854
116,279,284
2,016,639,350
P 255,568,682
103,112,372
P
501,542,214
16,368,510
P
1,123,820
1,047,422,173
P
2,040,399,441
P
64,179,503
P
6,639,220
P
2,869,452,880
The land, buildings, machineries, equipment and printing facilities are all owned by the Company and do
not secure any existing loan obligation with any government financial institutions.
Included in the account furniture, fixtures and equipment is the total cost of upgraded versions of
computer hardware and software for editorial, advertising, circulation and financial management systems.
The Company continues to modernize its facilities and it has computerized the entire process of
preprinting until full-page output, including color. In addition, the Company acquired new machines for
commercial printing, which are used for printing magazines, posters, catalogues and other collaterals;
format printers were also installed for billboards and streamers. The upgrading and modernization of
these facilities will be on a continuing basis.
12. Goodwill
This Company recorded goodwill from the acquisition of Balita, Liwayway, Hiligaynon, Bisaya and
Bannawag from Liwayway Publishing, Inc. amounting to P5,000,000. Such intangible asset is reviewed
periodically by the management.
28
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
13. Trade and Other Payables
The account as of September 30, 2012 and December 31, 2011 consist of the following:
September 30, 2012
Suppliers
Withholding taxes payable
Accrued payroll and other benefits
Accrued commissions, rebates and interests
P
P
2011
1,966,089,173
16,247,817
13,412,384
82,790,981
2,078,540,355
P
P
2,112,662,338
28,656,662
15,462,972
77,922,425
2,234,704,397
The Company normally obtains credit from suppliers with ninety-day term.
14. Bills Payable
The account represents trust receipts payable incurred in the importation of newsprint materials, which are
the major components in the production of the Company’s newspapers and magazines. The inventory is
maintained at a level commensurate enough to cover the corresponding level of the obligation. This
obligation is unsecured. The payments are made as every promissory note matures. Interest rate ranges
from 5.25% to 5.30%.
As of September 30, 2012 and December 31, 2011, the bills payable amounts to P390,106,091 and
P211,873,635, respectively.
15. Loans Payable
The Company continues to undertake major expansion of its production facilities. In this connection the
Company has obtained credit facilities from private local banking institutions on a long term basis. The
total loans payable amounting to P750,000,000 as of September 30, 2012 carries interest rates ranging
from 11% to 14% and is partially secured by the modern machineries installed in the production area.
The Company is required to comply with certain loan covenants, including maintenance of certain
financial ratios at the year end of every financial year.
The unpaid loan obligations obtained from Rizal Commercial Banking Corporation totaling to
P750,000,000 will mature on July 12, 2026.
The details of machineries and equipment pledged as security on loans payable follows:
September 30, 2012
Cost
Accumulated depreciation
Carrying amount
P
P
844,677,850
135,540,661
709,137,189
2011
P
P
844,677,850
122,870,492
721,807,358
29
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
16. Equity
The details of the Company’s ordinary shares follow:
September 30, 2012
Authorized shares
Par value per share
Issued and subscribed shares
Treasury shares
P
6,000,000,000
1.00
3,030,284,900
16,347,977
2011
P
6,000,000,000
1.00
3,030,284,900
16,347,977
Share capital
The details of the Company’s paid-up capital follow:
September 30, 2012
Beginning of the year
Issuances during the year
2011
P
3,030,284,900
3,030,284,900
16,347,977
P
3,030,284,900
3,030,284,900
16,347,977
P
3,013,936,923
P
3,013,936,923
Less: Treasury shares
Retained earnings
The September 30, 2012 and December 31, 2011retained earnings balance which are available for
dividend declarations amount to P203,150,033 and P248,311,729, respectively. Subject amounts
represent accumulated net earnings of the Company, less deferred tax benefits they being yet in their
unrealized state. There are no restrictions, statutory or contractual, including those relating to legal
reserves and capitalized earnings, which limit for dividend purposes and other appropriations. The
amounts are all unappropriated/free. There is no existing stock purchase agreement.
Prior period error
In 2010, the Company made a prior period adjustment amounting to P1,530,386 as an effect of adoption
of PAS 26 on accounting and reporting by retirement benefit plans and PAS 19 on employee benefits.
17. Revenues
The revenue from advertising and circulation for the semester ended September 30, 2012 and the year
ended December 31, 2011 are as follows:
Amounts
Advertising
Circulation
P 1,393,526,948
P 1,393,526,948
P 1,053,578,760
(158,605,956)
P
894,972,804
January to September, 2012
Sales
Sales return
Net sales
30
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
Amounts
2011
Sales
Sales return
Net sales
Advertising
Circulation
P 1,676,349,018
P 1,676,349,018
P 1,640,440,146
(333,525,017)
P 1,306,915,129
18. Other Income
This account consists of the following:
Jan to Sept., 2012
Other operating revenue (loss)
Sale of spoiled newpapers
Sale of scrap newspapers
Printing services
Royalty
Rental income
Sale of newsprint wastes
Income from notarization
Gain (loss) on foreign exchange
Realized exchange gain
Unrealized exchange gain (loss)
Gain on sale of fixed assets
Impairment loss
Miscellaneous income
P
P
2011
46,431,135 P 63,339,350
34,852,652
42,973,719
8,506,851
10,698,074
28,206,750
5,365,643
1,088,520
1,726,402
1,358,090
1,563,571
976,803
1,045,019
608,952
437,026
361,140
5,928
11,285
9,758
5,027,096
124,715,185
127,062,777 P 252,246,173
Other operating revenue refers to additional charges for additional color and border for an advertisement.
Miscellaneous income consists mainly of sale of metal scrap and garbage.
31
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
19. Retirement Plan
The Company has a funded non-contributory retirement plan covering all its regular officers and
employees. The Company’s employees’ retirement plan is classified as defined contribution plan wherein
the Company’s obligation for each period is determined by the amounts to be contributed for that period
and no actuarial assumption is required to measure the obligation or the expenses and there is no basis of
determining actuarial gain or loss as well as the fair value of the plan asset.
The plan provides retirement, separation, disability and death benefits to its members. The fund is
maintained in a separate bank account exclusively for the purpose of the plan.
20. Earnings Per Share
Basic earnings per share are computed as follows:
2011
Jan to Sept., 2012
Net income (a)
Weighted average number of shares (b)
Earnings per share
Basic / Diluted
P
P
105,886,316
P 190,904,421
3,020,960,250
3,020,960,250
0.04
P
0.06
21. Financial Risk Management
Overview
The Company has exposure to the following risks from its use of financial instruments:
•
•
•
Credit risk
Liquidity risk
Market risk
This note presents information about the Company’s exposure to each of the above risks, the Company’s
objectives, policies and processes for the measuring and managing risk, and the Company’s management
of capital. Further quantitative disclosures are included throughout these financial statements.
Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables
from customers and other financial instruments.
Trade and other receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. The demographics of the Company’s customer base, including the default risk of the industry
in which the customers operate, has less of an influence on credit risk. Approximately .001 percent of the
Company’s revenue is attributable to sales transactions with a single customer. However, geographically
there is no concentration of credit risk.
The Credit Committee has established a credit policy under which each new customer is analyzed
individually for creditworthiness before the Company’s standard payment and conditions are offered. The
Company’s review includes external ratings, where available, and in some cases bank references. Credit
limits are established for each customer, which represents the maximum open amount without requiring
approval from the Credit Committee; these limits are reviewed quarterly. Customers that fail to meet the
Company’s benchmark creditworthiness may transact with the Company only on a prepayment basis.
More than 30 percent of the Company’s customers have been transacting with the Company for over 20
years, and losses have occurred infrequently. In monitoring customer credit risk, customers are group
32
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
according to their credit characteristics, including whether they are an individual or legal entity, industry,
aging profile, maturity and existence of previous financial difficulties. Trade and other receivables relate
mainly to the Company’s valued clients. Customers that are graded as “high risk” are placed on a
restricted customer list, and future sales are made on a prepayment basis.
The Company establishes an allowance for credit losses that represents its estimate of incurred losses in
respect of trade and other receivables. The main components of this allowance are specific loss
component that relates to individually significant exposures. The allowance is determined based on
historical data or aging of accounts.
Maximum exposure to credit risk
2011
Sept. 30, 2012
Cash in banks
Trade and other receivables
P
P
20,634,392
2,007,343,759
2,027,978,151
P
20,459,874
1,988,807,855
2,009,267,729
P
The aging of receivables at the reporting date was:
September 30, 2012
Gross
Not past due
Past due 0-30 days
P 929,520,452
2011
Allow for Impairment
P
-
Gross
P 823,962,294
Allow for Impairment
P
-
1,077,823,307
71,206,483
1,164,845,561
47,241,546
P 2,007,343,759
P 71,206,483
P 1,988,807,855
P 47,241,546
Liquidity Risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall
due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always
have sufficient liquidity to meet its liabilities when they due, under both normal and stressed conditions,
without incurring unacceptable losses or risking damage to the Company’s reputation.
The Company focuses on its cash sales transactions, which assists it in monitoring cash flow requirements
and optimizing its cash returns on investments, specifically on modern machineries. Typically the
Company ensures that it has sufficient cash on demand to meet expected operational expenses for a period
of 30days, including the servicing of financial obligation; this excludes the potential impact of extreme
circumstances that cannot reasonably be predicted, such as natural disasters. In addition, the Company
maintains the lines of credit with certain local bank.
The Company manages liquidity risk by continuously monitoring forecast and actual cash flows and
matching the maturity profiles of financial assets and liabilities.
The key measure used by the Company for managing liquidity risk is the net liquidity gaps between assets
and liabilities as to maturity. The details of the reported net liquidity gaps at the reporting date shown
below:
33
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
1 month to
Up to 1 month
3 months
Financial assets
Cash
Trade and other
receivables
P
Financial liabilities
Trade and other
payables
Bills payable
Loans payable
Net liquidity gaps
P
45,497
P
Financial liabilities
Trade and other
payables
Bills payable
Loans payable
Net liquidity gaps
P
Total
P
650,486
695,982
197,857
197,857
698,520
698,520
(2,538) P
187,952
187,952
9,905
Up to 1 month
Financial assets
Cash
Trade and other
receivables
September 30, 2012
3 months to
over 1 year
1 year
(Amounts in thousand)
268,520
268,520
1,192,068
390,106
180,000
1,762,174
P (1,493,654) P
890,481
890,481
2,007,344
2,052,840
570,000
570,000
320,481
2,078,540
390,106
750,000
3,218,646
(1,165,806)
P
December 31, 2011
1 month to
3 months to
over 1 year
3 months
1 year
(Amounts in thousand)
20,460
Total
P
639,401
659,861
184,561
184,561
248,999
248,999
718,457
718,457
(58,596) P
207,401
1,308,846
211,874
180,000
207,401
1,700,720
(22,840) P (1,451,721) P
45,497
20,460
915,846
915,846
1,988,807
2,009,267
570,000
570,000
345,846
2,234,704
211,874
750,000
3,196,578
(1,187,311)
P
The table above summarizes the maturity profile of the company’s financial assets and liabilities as of
September 30, 2012 and December 31, 2011 based on undiscounted cash flows.
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates.
The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimizing the return on risk.
Foreign exchange risk
Foreign exchange risk arises on financial instruments that are denominated in a foreign currency other
than the functional currency in which they are measured.
The following table demonstrates the sensitivity to a reasonably possible change in the US dollar rate, with
all variables held constant, of the Company’s profit before tax (due to change in the fair value of monetary
asset) and the Company’s equity.
34
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
September 30, 2012
US $ depreciates (appreciates)
P1.00
P(1.00)
2011
US $ depreciates (appreciates)
P1.00
P(1.00)
Effect on statement of
comprehensive income
P
28,395
P
(29,985) P
110,669
P
(116,867)
Effect on equity
P
19,876
P
(20,989) P
77,469
P
(81,807)
Interest rate risk
Interest rate risk arises on interest-bearing financial instruments recognized in the statement of financial
position.
The Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s
short-term and long-term debt obligations. The Company’s policy is to manage its interest cost using a
mix of fixed and variable rate debt.
The following table demonstrates the sensitivity to the Company’s profit before tax and equity to a
reasonably possible change in interest rates on September 30, 2012 and December 31, 2011, with all variable
held constant.
2011
September 30, 2012
Increase/ (Decrease) in basis points Increase/ (Decrease) in basis points
+100
-100
+100
-100
Effect on statement of
comprehensive income
(29,332,575)
29,332,575
(28,386,166)
28,386,166
Effect on equity
(20,532,802)
20,532,802
(19,870,316)
19,870,316
The terms and maturity profile of the interest-bearing financial assets and liabilities, together with its
corresponding nominal amounts and carrying values, are shown below:
Sept. 30,2012
Cash
Short-term
debt
Long-term
debt
Interest terms
(p.a.)
Fixed at the
date of
investment
Rate
fixing
period
Nominal
amount
< 1 year
1 to 5 years
> 5 years Carrying value
Various
P 20,634,392
P 20,634,392
P 20,634,392
Variable
ranging from
5.25% to
5.30%
Monthly
390,106,091
390,106,091
390,106,091
Variable
ranging from
11 % to 14% Quarterly
750,000,000
180,000,000
570,000,000
750,000,000
35
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
2011
Cash
Interest terms
(p.a.)
Fixed at the
date of
investement
Rate
fixing
period
Nominal
amount
< 1 year
1 to 5 years
> 5 years Carrying value
Various
P 20,459,874
P 20,459,874
P 20,459,874
Variable
Shortterm debt ranging from
5.25% to
5.75%
Monthly
211,873,635
211,873,635
211,873,635
LongVariable
term debt ranging from
11 % to 14% Quarterly
750,000,000
180,000,000
570,000,000
750,000,000
Capital management
The primary objective of the Company’s capital management policy is to maintain a strong capital base so
as to maintain investor, creditor and market confidence and to sustain future development of the business.
The Board of Directors monitors both the return on equity, which defines as total shareholders’ equity,
and the level of dividends to ordinary shareholders.
The Company manages its capital structure and makes adjustments to it, in light of changes in economic
conditions. To maintain or adjust the capital structure, the company may adjust the dividend payment to
shareholders or issue new shares. No changes were made in the objective, policies or processes for the
period ended, September 30, 2012 and the year ended December 31, 2011.
The Company monitors capital using the gearing ratio of debt to equity and net debt to equity. Debt
consists of bills payable and long-term debt. Net debt includes bills payable and long-term debt less cash.
The Company considers as capital the equity attributable to equity holders of the Company.
2011
Sept. 30, 2012
Bills payable
Long-term debt
Total debt
Less: Cash
Net debt
Equity attributable to equity holders of the
Company
Debt to equity
Net debt to equity
P
P
390,106,091
750,000,000
1,140,106,091
45,496,523
1,094,609,568
P
3,222,194,078 P
35%
34%
211,873,635
750,000,000
961,873,635
33,654,965
928,218,670
3,267,355,775
29%
28%
The Company is not subject to externally imposed capital requirements.
36
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
Fair Value Measurement
The following table sets forth the carrying values and estimated fair values of the financial assets and
financial liabilities as of September 30, 2012 and December 31, 2011.
Sept. 30, 2012
Carrying Value Financial assets
Cash
Trade and other receivables
Available-for-sale investments
Other assets
Financial liabilities
Trade and other payables
Bills payable
Loans payable
Fair Value 2011
Carrying Value Fair Value P
45,496,523 P
45,496,523 P
33,654,965 P
33,654,965
2,007,343,759
2,007,343,759
1,988,807,855
1,988,807,855
5,764,040
5,764,040
5,764,040
5,764,040
29,321,999
29,321,999
29,321,999
29,321,999
P 2,087,926,322 P 2,087,926,322 P 2,057,548,860 P 2,057,548,860
P 2,078,540,355 P 2,078,540,355 P 2,234,704,397 P 2,234,704,397
211,873,635 390,106,091 390,106,091
211,873,635
750,000,000 750,000,000 750,000,000
750,000,000
P 3,218,646,446 P 3,218,646,446 P 3,196,578,032 P 3,196,578,032
The following methods and assumptions were used to estimate the fair value of each class of financial
instrument for which it is practicable to estimate such value:
Cash, trade and other receivables, other assets, trade and other payables, bills payable and loans payable
Carrying amounts approximate their fair values due to the relatively short-term maturity of these
instruments.
Amounts due from and due to related parties
Carrying amounts of due from and due to related parties which are payable and due on demand
approximate their fair values.
Financial assets at FVPL and AFS investments
Fair values of debt securities are generally based upon quoted market prices. If the market prices are not
readily available, fair values are estimated using either values obtained from independent parties offering
pricing services or adjusted quoted market prices of comparable investments or using the discounted cash
flow methodology. Fair values of quoted equity securities are based on quoted prices published in markets
Long-term debt
The fair value is determined using the discounted cash flow methodology, with reference to the
Company’s current incremental lending rates for similar types of loans.
Fair Value Hierarchy
The Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:
• Quoted prices in active markets for identical assets or liabilities (level 1);
• Those involving inputs other than quoted prices included in level 1 that are observable for the
asset or liability, either directly (as prices) or indirectly (derived from prices) (level2); and
• Those with inputs for the asset or liability that are not based on observable market data
(unobservable inputs) (level 3).
As of December 31, 2011 and 2010, the Company’s financial instruments carried at fair values pertain to
quoted equity securities amounting to P5.449 millions and P5.053 million, respectively, which have been
determined by reference to the price of the most recent transaction at the close of the end of reporting
period (Level 1). There were no financial instruments carried at fair values measured under level 2 and
level 3. In 2011 and 2010, there were no transfers between level 1 and level 2 fair value measurements
and no transfers into and out of level 3 fair value measurement.
37
MANILA BULLETIN PUBLISHING CORPORATION
Notes to Financial Statements –September 30, 2012
22. Related Party Transactions
Related party relationship exists when one party has the ability to control, directly, or indirectly through
one or more intermediaries, the other party or exercise significant influence over the other party in making
financial and operating decisions. Such relationship also exists between and/or among entities which are
under common control with the reporting enterprise, or between, and/or among the reporting enterprise
and its key management personnel, directors, or its stockholders. In considering each possible related
party relationship, attention is directed to the substance of the relationship, and not merely the legal form.
Transactions between related parties are based on terms similar to those offered to non-related parties.
The Company is a stand-alone Company, it has no investment in subsidiary, affiliates and associates.
Under the Company policy, shareholders are prohibited to obtain loans and advances from/to the
Company.
Compensation of Key Management Personnel
The compensation of the Company’s directors is stipulated in the By Laws of the Company which is 3 %
of the yearly net profits before payment of income tax is distributed among them in proportion to the
number of regular special meetings of the BOD actually attended by each.
The Company maintains retirement plan for all regular officers and employees. Retirement computations
are the same both for executives and rank and file employees.
There are no outstanding warrants or options held by directors and officers.
The Company does not enter into an employment/management contract with any of its executive officers.
The remuneration of the key management personnel of the Company is set out bellow in aggregate for
each of the categories specified in PAS 24, “Related Party Disclosures”:
2011
Jan to Sept., 2012
Short-term benefits
Post-employment benefits
P
67,163,461
56,144,394
123,307,855
P
P
98,488,245
58,473,368
P 156,961,613
The short-term benefits as of September 30, 2012 and December 31, 2011 are as follows:
2011
Jan to Sept., 2012
Salary
Bonus
Other annual compensation
or directors' fee
P
P
43,076,725
19,358,272
4,728,464
67,163,461
P
P
54,853,107
39,439,266
4,195,872
98,488,245
There are no advances made to/from related party which are interest-bearing or non-interest-bearing.
23. Contingencies
As of September 30, 2012, the Company has no contingencies since the Company is neither a plaintiff nor
a defendant in any legal actions in or out of court.
38
Item 2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
Total revenue from January to September, 2012 slightly increased by P.700
million as compared with that of the same period last year. This was brought about by
the decrease in other income account by 26% or P43.776 million wherein last year
various scrap materials were sold. On the other hand, Advertising revenue and
Circulation revenue went up by 3% and 1% respectively. Simultaneous to the increase
in our advertising and circulation revenue, printing cost went up by 3% due to more
pages printed and the increase in the cost of printing materials used. The Company’s
cost and operating expenses increased insignificantly, despite the increase in both
advertising and circulation revenues.Net income increased by P1.759 million or 2%
over last year’s results of operations.
For the third quarter of 2012 , both Advertising and Circulation revenue went
up, by 3.% and 1.% respectively. Likewise, other income account increased by 24%
brought about by more commercial printing revenue. Total cost and expenses for the
3rd quarter this year went up due to more advertisements, translating to more copy
pages printed as well as increase in circulation copies.
Provision for income tax for the third quarter of 2012 amounted to P20,169,760
lower by P1.101 million or 5.17 % over last year of the same quarter.
Net income of the Corporation for the third quarter of 2012 amounted to
P47,365,392. This represented 4.69 % of the total revenue for the third quarter
of P1,009,606,709. Earnings per share was P.0157. Percentage of net profit to
stockholders equity for the third quarter of 2012 was computed at 1.47%
As of September 30, 2012, Current Assets to Current Liabilities ratio was
1.2624 : 1 as compared to 1.2787 : 1 the same period last year.
There is no significant element of income or loss that did not arise from the issuer’s
continuing operations.
Total assets of the Company decreased by P35.231 million as of September
30, 2012 as compared with the audited figures presented as of December 31, 2011.
The net worth of the Corporation as of September 30, 2012 is P3,222,194,078
with paid in capital of P3,030,284,900, net retained earnings of
P203,150,033 and
unrealized gain/ (loss) of P5,107,122 less P16,347,977 cost of treasury stock.
The Company came up with computations of various ratios, which the
Company considers to be key performance indicators and these are as follows :
39
Third
2012
Quarter
2011
Current Ratio – Current Assets / Current Liabilities 1.2624 : 1
(Liquidity ratio – ability to meet short term obligations)
1.2787:1
Return on Assets – Net Income / Total Assets
0.0164
(Effectiveness in the use of assets to generate profits )
0.0064
Return on Equity - Net Income / Stockholders’ Equity 0.0329
(Measures the profits earned for each peso invested
in the company’s stocks )
0.0126
Gross Profit Margin – Gross Profit / Sales
(Measures gross profit earned on sales)
0.5003
0.5838
0.5010: 1
0.4902:1
Debt Ratio – Total Liabilities / Total Assets
(Indicator of the long term solvency of the Company)
Due to the intensified collection efforts / programs of the Company, comparing cash
account balance as of September 30, 2012 with that of December 31, 2011, it
registered an increase of 35%. Likewise, sales of Balita, Liwayway, Bannawag,
Hiligaynon and Bisaya contributed to the increase of our cash account.
The increase of 84% in the balance of bills payable account represents more purchases
of imported newsprint and press supplies in anticipation of more advertisement
placements, increase in circulation copies as well as more commercial printing for the
next quarter up to 2013 where election is anticipated to contribute to the forecasted
increase in consumption of said printing materials. Payment of maturing trust receipts n
connection with the importation of printing materials such as paper, ink and supplies
which are usually payable in 180 days.
The Company did not enter into any contracts of merger, consolidation of joint venture,
contract management, licensing, marketing, distributorship, technical assistance or
similar agreements.
The Company did not offer rights or grant Stock Options and corresponding plans
therefor.
The Company does not know of any information, event or happening that may affect
the market price of its security.
There was no transferring of assets made except in normal course of business.
There are no known trends, demands, commitments, events or uncertainties known to
management that would have an impact on the Company’s liquidity.
The Registrant does not know of any event that will trigger direct or contingent financial
obligation that is material to the Company, including any default or acceleration of an
obligation.
40
There are no material off-balance sheet transactions, arrangements, obligations
(including contingent obligations), and other relationships of the Company with
unconsolidated entities or other persons created during the reported period.
Likewise, The Company does not know of any material commitments for capital
expenditures, known trends, events or uncertainties that have had or that are
reasonably expected to have a material impact whether favorable or unfavorable impact
on net sales/ revenues/ income from continuing operations.
And lastly, the Registrant has no knowledge of any seasonal aspects that had a
material effect on the financial condition or results of operations.
PART II – OTHER INFORMATION
All significant information was properly disclosed as they happen under SEC
Form 17 – C.
SIGNATURES
Pursuant to the requirements of the Securities Regulation Code, the issuer has
duly caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
MANILA BULLETIN PUBLISHING CORPORATION
PACIENCIA M. PINEDA
Executive Vice President/ Treasurer
November 14, 2012
ELIZABETH T. MORALES
Assistant Vice President / Chief Accountant
November 14, 2012
41
MANILA BULLETIN PUBLISHING CORPORATION
AGED SCHEDULE OF ACCOUNTS RECEIVABLE
As of September 30, 2012
Trade Receivables
Allowance for Doubtful Accounts
PHP 1,902,897,837
71,206,483
Net
Others
1,831,691,354
175,652,405
Total
Age
Classification
Current
1-30 days
31-60 days
61-90 days
91-365 days
More than one year
Totals
PHP 2,007,343,759
Advertising
520,450,520
187,502,650
74,100,520
56,758,905
94,500,605
175,505,654
RECEIVABLES
Circulation
389,745,105
87,520,405
48,745,102
35,410,520
72,852,410
159,805,441
PHP 1,108,818,854 PHP 794,078,983
Total
910,195,625
275,023,055
122,845,622
92,169,425
167,353,015
335,311,095
1,902,897,837
MANILA BULLETIN PUBLISHING CORP
TOP ONE HUNDRED STOCKHOLDERS
Processed Transactions as at 28 SEPTEMBER 2012
1
2
3
4
5
6
7
8
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U S AUTOMOTIVE CO INC
USAUTOCO INC.
MENZI TRUST FUND INC
PCD NOMINEE CORPORATION
EVERGREEN STOCKBROKERAGE & SEC., INC.
YAP, EMILIO T
UY, WILLIAM CARLOS
CHUNG BUNSIT
3,637,775.00
522,345.00
461,646.00
166,022.00
4,787,788.00
0.1585
CHING, RICHARD
TAN, TEODORA D.
FLORENZ D &/OR ANITA S REGALADO
CHUA, FRANCISCO C.
PARITY VALUES INC
PHESCO INCORPORATED
UNIMART INC
MAKATI SUPERMARKET CORPORATION
PAN MALAYAN MANAGEMENT & INVESTMENT CORP
SY, JIMMY
CARLOS UY CORPORATION
LEE, EDWARD A.
MICHAEL ANGELO P &/OR BIENVENIDO U LIM
JOHNNY K CHOA
O LEDESMA & CO INC
LEE, CARLOS A.
TIONG KENG CHING
SABINO B PADILLA IV &/OR MA DOMINGA B PADILLA
ZENAIDA GONZALES OR ARNEL GONZALES
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762,590.00
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0.0262
0.0262
0.0262
0.0262
0.0262
0.0262
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24
25
26
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31
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RESTRICTED
MIRIAM CU
MIRIAM C. CU
MIRIAM C. CU
MIRIAM C CU
1,641,797,349.00 54.3469
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EDAN CORPORATION
SY BEE DY
BARCELON, GEORGE T.
ILUSORIO, ERLINDA K
AW PENG LAM
TIU, EDWARD Y.
GOLDCLASS INC.
37
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46
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54
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MA BARBARA B &/OR TEODORO B PADILLA
TEODORO B &/OR MA DOMINGA B PADILLA
JEANNE SY KING
CHUNG BUN SIT
PINKY ROSE &/OR FLORENTINA PEDRO LIM
SABINO B PADILLA IV &/OR MA BARBARA B PADILLA
EDELYN L ONGCHANHOI ITF KAILYN PEARL L ONGCH
CARLOS CHUNG BUNSIT
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DR. ANACLETO S. HERMOGENES
SEE, BENITO LAGUNA
FIDEL V. GIRON
FERIA, CRISTETA A
FEDELINA U&/OR ELIODORO J&/OR BETHEL ANN RAV
ANGELINA C. ACIDO
MENDOZA, ALBERTO &/OR JEANIE C
WELDING INDUSTRIES OF THE PHIL. INC.
CONSUNJI, EDWINA A.
SY GIOK TEE
ANGEL NGU
RONALDO V LAVAPIEZ
JOHNNY CUA WEN GEE
NUBLA JR, RALPH
ANITY TY
DECKTA PACIFIC EQUITIES INC
BALTAO, HAZEL P
JEANNE S KING
ONG, JOSEPH D.
ONG, LUIS T.
GO, CARLOS S.
TIU, EMILIO
UY, REMEDIOS
SY, VICENTE GUEVARA
LUZVISMINDA A MAGBANUA
MARSHALL COHU ITF: MARC ALLAN C. COHU
PENA SR, GREGORIO
YAP JR, EMILIO C
AMANDO ALBERTO MIRASOL JR
GO, EUSEBIO S
YAP, BENJAMIN C.
YAP, BASILIO C.
V LEYEZA
YAP, FLORENTINO C
GO, CARLITO C
JOSEF, JOSEFINA N.
TANQUETO JR, PERSHING
CIPRIANO, PURIFICACION M.
JOSE LIM CHU TICK
GAN TIONG CHUA
LUZVISMINDA A MAGBANUA
GO, WILSON G.
CHUA HU HUA
762,590.00
762,589.00
712,961.00
692,425.00
636,300.00
610,073.00
577,500.00
558,160.00
525,000.00
495,111.00
475,309.00
471,348.00
455,502.00
436,065.00
401,834.00
396,088.00
396,088.00
396,088.00
396,088.00
396,088.00
396,088.00
376,284.00
360,888.00
358,523.00
355,748.00
334,109.00
319,797.00
316,876.00
316,876.00
316,876.00
316,874.00
316,874.00
316,874.00
315,000.00
304,941.00
298,971.00
273,005.00
264,058.00
253,498.00
250,755.00
250,755.00
242,467.00
237,656.00
237,656.00
237,656.00
237,655.00
237,655.00
237,655.00
237,655.00
231,000.00
221,815.00
221,810.00
0.0252
0.0252
0.0236
0.0229
0.0211
0.0202
0.0191
0.0185
0.0174
0.0164
0.0157
0.0156
0.0151
0.0144
0.0133
0.0131
0.0131
0.0131
0.0131
0.0131
0.0131
0.0125
0.0119
0.0119
0.0118
0.0111
0.0106
0.0105
0.0105
0.0105
0.0105
0.0105
0.0105
0.0104
0.0101
0.0099
0.0090
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0.0080
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0.0079
0.0079
0.0079
0.0079
0.0079
0.0079
0.0076
0.0073
0.0073
89
90
91
92
93
94
95
96
97
98
99
100
2100060009T
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RESTRICTED
NAPOLEON S TIONGCO &/OR JOHN L TIONGCO
DANIEL C CU
ESTATE DEVELOPERS AND INVESTORS CORP
ELIODORO J. RAVALO
MENDOZA, AMORSOLO V
ANDREA D DOMINGO
JOAQUIN L. GATCHALIAN, JR.
OPPEN, ANTONIO C.
LUY KIM GUAN
JESSE REYES
P & A AGRICULTURAL & TRADING CORPORATION
YUQUICO, GEORGE
219,380.00
215,783.00
211,668.00
209,928.00
208,638.00
204,330.00
204,305.00
201,198.00
199,168.50
198,050.00
198,046.00
190,126.00
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0.0070
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