Cash and cash equivalents increased by 22% or P123.39 million mainly due to the receipt of tuition fees for the second semester. Financial assets available for sale increased by 21% or P485.88 million due to additional investments made in various securities during the period.
Capital Stock
Treasury Stock
Revaluation reserves
Retained Earnings
Non-controlling Interest (NCI)
Tuition fees – net
Other school fees
Rental income
Other operating income
Finance income
Miscellaneous income – net
Employee salaries and benefits expenses increased by 4% and 13% or P24.31 million and P18.59 million, respectively, mainly due to the increase in projected wage rates.
Salaries and employee benefit expense increased by 4% and 13% or P24.31 million and P18.59 million, respectively, primarily due to the increases in salary rates as provided for
Rental expense increased by 6% equivalent to P0.41 million
Janitorial services decreased by only 1% equivalent to P 0.07 million
Insurance expense increased by P5.36 million due to additional property insurance obtained by the Group during the period
Pre-tax and license expenses decreased by P2.63 million as a result of lower amounts for various business taxes during the period.
Taxes and licenses expense decreased by P2.63 million due to the lower amounts incurred for various business taxes during the period
Charitable contributions decreased by P0.49 million due to fewer donations made to various recipients during the period
Test of Liquidity
Test of Solvency
Debt to asset ratio measures the amount of assets that the creditors have made available in relation to the total amount of assets of the group. The solvency ratio measures the amount of assets provided by the owner in relation to the group's total assets.
Test of Profitability
Product Standard
Both schools are run and managed in accordance with FEU's quality standards and best practices. Planned course offerings and services and management of such entities are also aligned in accordance with FEU quality standards and best practices.
Market Acceptability
CORPORATE INFORMATION 1 Background of the University
- Other Corporate Information
- Approval for Issuance of Interim Consolidated Financial Statements
The University is a private, non-sectarian educational institution consisting of the following various institutes offering specific courses, namely: Institute of Arts and Sciences;. Institute of Accounting, Business and Finance; Institute for Education; Institute of Architecture and Fine Arts; Institute of Nursing; Institute of Tourism and Hotel Management and Institute of Law. Several of FEU's programs, such as liberal arts, business administration, and education, are accredited by the Accreditation Commission of the Philippine Association of Colleges and Universities.
EACCI, which operates under the trade name FEU Institute of Technology, has been granted permission by the Commission on Higher Education (CHED) to offer various engineering courses. FEU High School, Inc. will offer and implement enhanced basic education programs until the necessary permits are issued by the relevant regulatory agencies. On the other hand, FRC operates as a real estate company that leases most of its investment properties to the university and other related parties.
SPARC is engaged in maintaining a sports facility for the purpose of rehabilitation and improvement of sports performance. Although the University controls less than 50% of FRC's voting shares, it has control over FRC as it is exposed or entitled to variable returns from its involvement in FRC and has the ability to influence those returns through its power over FRC. The University also has the power to cast the majority of votes at meetings of the Board of Trustees and to elect officers of the FRC.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- Basis of Preparation of the Consolidated Financial Statements (a) Statement of Compliance with Interim Financial Reporting Standards
- Adoption of New and Amended PFRS
- Basis of Consolidation
- Business Combinations
- Financial Assets
- Real Estate Held-for-Sale
- Property and Equipment
- Investment Property
- Financial Liabilities
- Offsetting Financial Instruments
- Provisions and Contingencies
- Revenue and Expense Recognition
- Leases
- Foreign Currency Transactions and Translation
- Impairment of Non-financial Assets
- Deposits Payable
- Trust Funds
- Borrowing Costs
- Related Party Relationships and Transactions
- Equity
- Earnings Per Share
- Events After the End of the Reporting Period
Items included in the group's consolidated accounts are measured in its functional currency (see note 2.15). Functional currency is the currency of the primary economic environment in which the Group operates. All subsequent changes in the share in the associated company's equity are recognized in the accounting value of the group's investment.
The Group's interest in a jointly controlled entity is recognized in the Group's consolidated financial statements using the equity method. The Group's share of the profit or loss of the JV is adjusted for any unrealized profits arising from transactions with the JV against the relevant investment. Financial assets are recognized when the Group becomes a party to the contractual terms of the financial instrument.
Any gain or loss arising from the derecognition of an asset (calculated as the difference between the net proceeds from disposal and the book value of the asset) is included in the profit or loss in the year in which the asset was derecognised. The difference between the book value of the derecognized financial liability and the compensation paid or the obligation to pay is recognized in profit or loss. Based on the content of the agreement, the group determines whether the agreement is a lease or contains a lease.
Paid absences are recognized for the number of days of paid leave (including vacation entitlement) remaining at the end of the reporting period. Any post-year-end event that provides additional information about the group's financial position at the end of the reporting period (corrective event) is reflected in the consolidated financial statements.
USE OF JUDGMENTS AND ESTIMATES
The operating segments are reported in a manner consistent with the internal reporting provided to the Group's strategic steering committee; its main operational decision maker. The strategic steering committee is responsible for allocating resources and reviewing the performance of the operating segments. In identifying its operating segments, management generally follows the Group's products and/or services as disclosed in Note 7, which represent the main products and/or services provided by the Group.
Each of these operating segments is managed separately, as each of these service lines requires different technologies and resources, as well as marketing approaches. The accounting principles used by the Group for segment reporting under PFRS 8 are the same as those used in the consolidated financial statements. In addition, assets that are not directly attributable to the operating activities of an operating segment are not allocated to a segment.
There have been no changes compared to previous periods in the measurement methods used to calculate the reported segment result.
RISK MANAGEMENT OBJECTIVES AND POLICIES
- Interest Rate Risk
- Credit Risk
- Liquidity Risk
- Carrying Amounts and Fair Values by Category
- Offsetting of Financial Assets and Financial Liabilities
The Group does not engage in trading in financial assets for speculative purposes, nor does it issue options. The most important financial risks to which the group is exposed are described in the following points. The Group's interest rate risk management policy is to minimize exposure to the risk of interest cash flow to changes in interest rates.
The Group's exposure to interest rate risk arises from financial instruments that are subject to variable interest rates. The Group manages interest rate risk by using fixed interest rate financial instruments over variable interest rate financial instruments. The Group's exposure to credit risk on its receivables was primarily related to the inability of debtors to pay and students to repay in full the outstanding balance of tuition fees and other charges owed to the Group on an installment basis.
The Group's exposure to credit risk on its other receivables from debtors and related parties is managed by setting limits and closely monitoring said accounts. A description of the Group's risk management objectives and policies for financial instruments is provided in Note 4. As such, the Group's outstanding receivables from and payable to the same related parties can potentially be offset to the extent of their corresponding outstanding balances.
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 value of the Group's debt securities, consisting of government and corporate bonds, is estimated based on the quoted bid price in the active market at the end of the reporting period and is classified in level 1. c) Derivatives. The table on the following page summarizes the fair value hierarchy of the Group's consolidated financial assets and financial liabilities that are not measured at fair value in the consolidated interim balance sheet as at December 31, 2014, but for which the fair value is disclosed. The fair value of these non-financial assets has been determined based on the following approaches:. i) Fair value measurement for land.
The Level 2 fair value of land was obtained using the comparable market approach which reflects the recent transaction prices for similar properties in nearby locations. Under this approach, when sales prices of comparable land in the vicinity are used in the valuation of the subject property without any adjustment to the price, fair value. On the other hand, if the observable recent prices of the reference properties are adjusted for differences in key characteristics such as property size, zoning and accessibility, the fair value is included in Level 3.
The Level 3 fair value of the buildings and improvements included in the investment property account was determined using the cost method, which reflects the cost to a market participant to construct an asset of comparable use. Under this approach, higher estimated costs used in the valuation will result in higher fair value of the properties. In 2014, the fair value of the investment property, except for certain condominiums owned by FRC, which is based on the prevailing sales prices for such properties, is determined based on valuations carried out by an independent appraiser.
SEGMENT INFORMATION 1 Business Segments
- Segment Assets and Liabilities
- Intersegment Transactions
- Reconciliation
There were no transfers into or out of the level 3 fair value hierarchy during the nine months ended December 31, 2014. Below is a reconciliation of the Group's segment information with key financial information in the consolidated financial statements (in thousands). Unverified) (Unverified) Profit or Loss.
PROPERTY AND EQUIPMENT
A reconciliation of the carrying amounts of property and equipment at the beginning and end of the reporting periods is shown below.
INVESTMENT PROPERTY
INTEREST-BEARING LOANS
DIVIDENDS
EQUITY
- Capital Stock
- Treasury Stock
- Retained Earnings
The increase in the authorized share capital and the declaration of stock dividend were ratified by the shareholders representing at least 2/3 of FEU's total outstanding shares during the university's annual meeting of shareholders on August 27, 2011 and were subsequently approved by the SEC on November 2, 2011 An additional 2,745,720 shares were therefore listed, which were taken from the university's unissued share capital (see note 11). FRC acquired a total of 17,277 FEU shares on various dates during the period at a total price of P19.28 million.
Transferred earnings are legally limited to an amount equal to the price of the university's own shares of P3.7 million. There has been no change in allocated retained earnings for the nine months ended 31 December 2014. The changes in eligible retained earnings for the year ended 31 March 2014 (revised) are shown below.
Below is a breakdown of the approved budget funds expected to be spent within one year of the end of the relevant reporting period. P1.7 billion in 2013 and 2012; since the planned expansion of the facilities was completed in 2014, and the investments and acquisition of real estate in 2013 and 2012.
EARNINGS PER SHARE
COMMITMENTS AND CONTINGENCIES
CAPITAL MANAGEMENT OBJECTIVES, POLICIES AND PROCEDURES The Group aims to provide returns on equity to shareholders while managing operational
Other capital components such as treasury stock and revaluation reserves are excluded from capital for capital management purposes. Profiles for capital ratios are established in light of changes in the Group's external environment and the risks underlying the Group's business, operations and industry. There was no significant change in the Group's approach to capital management during the year.
SEASONAL FLUCTUATIONS
SUBSEQUENT EVENTS
