Sio, 81, Filipino: Independent Trustee (April 2019 to present), Far Eastern University, Inc. Other corporate affiliations: Chairman of the Board of SM Investments Corporation;. Other corporate affiliations: She is a member of the Biology Teachers Association (BIOTA), Philippine Society of Microbiology (PSM), and the Association of Systematic Biologists of the Philippines (ASBP).
ANNEXES
Financial Reporting
Almost all academic programs in Manila campus are accredited by the PACUCOA. Edustria, Inc. was founded in 2019 as a joint venture of Far Eastern University and the Technological Institute of the Philippines.
COVER SHEETCOVER SHEET
Note: In case of death, resignation or termination of duty of the official designated as contact person, such incident shall be reported to the Commission within thirty (30) calendar days of its occurrence with full information and contact details of the person new contact. assigned.
Far Eastern University, Incorporated and Subsidiaries
Report of Independent Auditors
CORPORATE INFORMATION 1 Background of the University
- Impact of COVID-19 Pandemic on the Group’s Operations
- Other Corporate Information
- Approval for Issuance of Consolidated Financial Statements
The Group also made the FEU Alabang Campus available to the vaccination clients of Ayala Health. Despite the 11% decrease in the Group's total student population in the financial year 2021, last year's tuition discounts (see Note 18.3) and cancellation of the third term for the.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- Basis of Preparation of the Consolidated Financial Statements (a) Statement of Compliance with Philippine Financial Reporting Standards
- Adoption of New and Amended PFRS
- Basis of Consolidation
- Business Combinations
- Financial Instruments
- Real Estate Held-for-Sale
- Prepayments and Other Assets
- Property and Equipment
- Investment Properties
- Provisions and Contingencies
- Revenue and Expense Recognition
- Leases
- Foreign Currency Transactions and Translation
- Impairment of Non-financial Assets
- Employee Benefits
- Borrowing Costs
- Income Taxes
- Related Party Transactions and Relationships
- Equity
- Earnings Per Share
- Segment Reporting
- Events After the End of the Reporting Period
Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the financial instrument. Prepayments and other current assets of the Group include inventory items such as books and merchandise.
SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES
- Critical Management Judgments in Applying Accounting Policies
- Key Sources of Estimation Uncertainty
Currently, all of the Group's lease agreements are determined to be operating leases. k) Recognition of provisions and contingencies. For purposes of determining impairment, the Group has based the value in use of the CGU (that is RCI) against which the carrying value of goodwill is compared.
RISK MANAGEMENT OBJECTIVES AND POLICIES
- Market Risk (a) Foreign Currency Risk
- Credit Risk
- Liquidity Risk
For cash and cash equivalents and financial assets of a similar nature, the Group applies the low credit risk simplification. The Group judged that the expected loss rates for tuition fees and other receivables are a reasonable approximation of the loss rates for these financial assets.
CATEGORIES AND OFFSETTING OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
- Carrying Amounts and Fair Values by Category
- Offsetting of Financial Assets and Financial Liabilities
For financial assets and financial liabilities that are subject to enforceable framework netting agreements or similar arrangements above, each arrangement between the Group and counterparties (i.e. the custodian bank) enables the net settlement of the relevant financial assets and financial liabilities (i.e. interest-bearing loans) when both decide to settle on a net basis. All other financial assets and financial liabilities are settled in the gross amount; however, each party to the financial instrument (ie, related parties) will have the option to settle all such amounts on a net basis with the approval of the BOT or BOD of both parties.
FAIR VALUE MEASUREMENT AND DISCLOSURES 1 Fair Value Hierarchy
- Financial Instruments Measurement at Fair Value
- Financial Instruments Measured at Amortized Cost for which Fair Value is Disclosed
- Fair Value Measurement for Non-financial Assets (a) Determining Fair Value of Investment Properties
The fair values ​​of the Group's interest-bearing loans are classified under Level 3 of the fair value hierarchy. The fair values ​​of these non-financial assets were determined based on the following approaches: i) Fair value measurement for Land.
SEGMENT INFORMATION 1 Geographic Segments
- Segment Assets and Liabilities
- Intersegment Transactions
- Analysis of Segment Information
- Reconciliation
There was no change to the valuation techniques used by the Group for its non-financial assets during the year. Presented below is a reconciliation of the Group's segment information with the key financial information presented in its consolidated financial statements (in thousands).
CASH AND CASH EQUIVALENTS
Interest income from liquid assets is presented as part of Financial income in the consolidated income statement (see note 20.1). The associated interest receivable from placements per May and 2019 are presented as part of Accrued interest under the account for sales and other receivables in
TRADE AND OTHER RECEIVABLES This account is composed of the following
During the years ended May and 2019, receivables from tuition and other school fees were assessed for impairment and corresponding impairment losses were recognized as Impairment losses on receivables in the consolidated income statement. Various receivables are materially related to broker receivables relating to the receivable from the Group's trust funds and various other receivables from unrelated parties.
FINANCIAL ASSETS
- Financial Assets at FVTPL
- Financial Assets at FVOCI
- Investment Securities at Amortized Cost
Analyzes of the movements in the carrying amounts of the Group's financial assets at FVOCI are presented below. An analysis of the movements in the carrying amount of the Group's investment securities at amortized cost for the years ending May and 2019 is presented below.
REAL ESTATE HELD-FOR-SALE
PROPERTY AND EQUIPMENT
In May and 2019, none of the Group's properties and equipment were used as collateral for any of the Group's interest-bearing loans and borrowings. As of May 31, 2021 and 2020, none of the Group's right-of-use assets are used as collateral for any of the Group's interest-bearing loans and borrowings.
LEASES
- Lease Liabilities
- Lease Payments Not Recognized as Liabilities
- Additional Profit or Loss and Cash Flow Information
In 2020, the Group recognized profit on the sale of miscellaneous equipment amounting to P2.1 million and is shown as Other Income – net account in the 2020 consolidated statement of profit or loss. The table below describes the nature of the Group's leasing activities by type of right-of-use asset recognized in the consolidated statements of financial position.
INVESTMENT PROPERTIES
- Related Income and Direct Expenses
- Fair Values of Investment Properties
Interest expense related to lease liabilities amounted to P2.8 million and P1.2 million and is presented as part of the interest expense under Finance expense in the 2021 and 2020 consolidated income statements (see Note 20.2). In 2020, the Group recorded a gain on the sale of buildings and improvements amounting to P38.0 million and is presented as part of Other operating income in the 2020 income statement.
OTHER ASSETS
Information on the fair value measurement and disclosures relating to investment properties is presented in Note 6.4. Additional allowance for depreciation on input VAT and long-term investments amounting to P23.8 million and P3.7 million, respectively, was recognized by the Group in 2021 (see Note 19).
TRADE AND OTHER PAYABLES This account consists of
Long-term investments include investments in redeemable preferred stock and time deposits that bear effective interest rates ranging from 6.13% to 6.63% for the years ended May 31, 2021 and 2020 and mature more than one year from of the installation date at the end of each reporting period. As of May and 2019, withholding includes a portion of the payment for the acquisition of RCI that is withheld by the University to ensure compliance by the shareholders selling the RCI with certain terms of the stock purchase agreement.
INTEREST-BEARING LOANS
All interest-bearing loans and Group loans are pure loans; in May and 2019, there are no funds used and/or required as collateral. The total interest that the Group has on all these loans, which do not already include the capitalization costs of borrowing the Group's real estate and equipment, is presented as part of the interest expense under finance costs in the consolidated statements of profit and loss (see notes 12 and 20.2), while any outstanding obligations for interest recognized as part of pre-charged expenses in the account of business and other liabilities in the consolidated account.
EDUCATIONAL REVENUES
- Core Revenue Stream
- Unearned Tuition Fees
- Tuition Fee Rebates
The Group generates income from transactions related to tuition fees, other school fees and other school-related activities such as the sale of school supplies and books. The Group presents below the breakdown of its income by school units for the years ending May and 2019.
OPERATING EXPENSES Operating expenses consist of
These are recognized as revenue as soon as the performance obligation of the schools within the Group has been met. For the school year, the Group has introduced full online classes to allow students to continue learning as quarantine restrictions take effect.
FINANCE INCOME AND FINANCE COSTS 1 Finance Income
- Finance Costs
In 2019, the University and EACCI recognized and paid basic local taxes in arrears amounting to P225.3 million, submitted as part of Taxes and Licenses, covering the taxable calendar years 2009 to 2018, assessed and covered by the tax amnesty. from the locals. the city government of Manila. In and 2019, an interest expense of P6.8 million, P17.0 million, and P38.4 million, respectively, was capitalized as part of construction in progress in the property and equipment account, which was generated only by specific borrowings (see note 12). .
EMPLOYEES’ HEALTH, WELFARE AND RETIREMENT FUND (a) Characteristics of the Defined Contribution and Defined Benefit Plans
The present value of the defined benefit obligation is calculated using a discount rate determined by reference to government bond market yields. The weighted average duration of the RCI defined benefit obligation at the end of the reporting period is 15 years.
INCOME TAXES
RCI's deferred tax expense of P0.3 million and P0.3 million relates to the remeasurement of post-employment benefits during the years ended 31 May 2021 and 2020 respectively (zero in 2019) and is recognized as a component of tax expense reported in the consolidated statement of comprehensive income. RCI did not recognize the deferred tax assets related to the provision for impairment of receivables amounting to P0.3 million and P2.5 million respectively at 31 May 2021 and 2020.
RELATED PARTY TRANSACTIONS
- Subscription of Preferred Shares of Stock (a) EACCI
- Noninterest-bearing Advances (a) Advances of the University to a Related Party
- Reimbursement of Expenses
- Leases
- Retirement Funds
- Key Management Personnel Compensation
- Financial Guaranty for Subsidiaries’ Loans
- Others
P40.0 million as at May 31, 2020 is presented as part of Other advances to related parties under Trade and Other Receivables account (see Note 9), was fully paid in 2021. Outstanding payable arising from the transaction amounting to P6.8 million as at May 31, 2019, is presented as part of accrued expenses under the trade and other payables account in the consolidated statements of financial position (see Note 16).
EQUITY
- Capital Stock
- Treasury Stock
- Revaluation Reserves
- Retained Earnings
- Subsidiaries with Material Non-controlling Interest
In accordance with the increase in authorized capital stock of the University, the BOT also declared, subsequently ratified by the shareholders, 46% stock dividends amounting to P755.4 million. As of May 31, 2020, pending the approval of the SEC, the value of the stock dividends was recognized and presented as stock dividends.
EARNINGS PER SHARE
COMMITMENTS AND CONTINGENCIES
- Capital Commitments
- Operating Lease Commitments (a) Group as Lessor
- Other Provisions and Contingencies
There are also other possible events that arise in the ordinary course of business and are not recognized in the group's financial statements. OBJECTIVES, POLICIES AND PROCEDURES OF CAPITAL MANAGEMENT The Group aims to provide shareholders with returns on capital.
CAPITAL MANAGEMENT OBJECTIVES, POLICIES AND PROCEDURES The Group aims to provide returns on equity to shareholders while managing
The Group has entered into transactions that have resulted in liabilities that will probably result in an outflow of economic resources. The Group has met its covenant obligations, including maintaining the required debt-to-equity ratio and debt service coverage ratio for all years presented. There was no significant change in the Group's approach to capital management during the year.
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
The report of the Independent Auditor on the supplementary schedules of the SEC presented separately from the basic financial statements. Reconciliation of retained earnings available for declaration of dividend 23 Map showing relationships between and among the university and related parties 24.
Report of Independent Auditors to Accompany Supplementary
Commission Filed Separately from the Basic Consolidated
