Allah Valley Drive, National Highway, Surallah, South Cotabato
NOTES TO THE FINANCIAL STATEMENTS April 30, 2013
ORGANIZATION
The ALAH VALLEY ACADEMY OF SURALA COTABATO, INC., is a domestic non-stock, non-profit corporation engaged in the secondary education. Starting June 2012, as approved by the Department of Education the school shall offer pre-school education.
The registered business office is at Allah Valley Drive, National Highway, Surallah, South Cotabato.
Among the specific purposes of the corporation include: 1. To establish and maintain a complete academic or general secondary school with vocational education as well as elementary and college education; 2. To help carry out faithfully the educational objectives in the constitution of the Philippines; and 3. To hold and to acquire real properties as the necessities of the corporation may require.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The more significant accounting policies and practices of the corporation are summarized below to facilitate the understanding of the data presented in the financial statements.
The corporation prepares its financial statements on accrual basis of accounting. Accordingly, income are recognized when earned and expenses are recognized when incurred.
Property, Plant and Equipment are recorded at cost less accumulated depreciation. The cost of an asset comprises its purchase price and directly attributable costs of bringing the asset to working condition for its intended use. Major improvements are capitalized; expenditures for repairs and maintenance are charged to expense as incurred.
Depreciation is computed on straight-line basis over the estimated useful lives of the assets. The useful life and depreciation method are reviewed periodically to ensure that the period and method of depreciation are consistent with the expected pattern of economic benefits from the items of property, plant and equipment.
1 Cash and Cash Equivalents
Cash and Cash Equivalents are cash on hand, demand deposits and short-term highly liquid investments readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.
April 30, 2013 December 31, 2011 Cash In Bank 710,673.06 1,073,056.63 Petty Cash Fund 5,000.00 5,000.00 Total 716,673.06 1,078,056.03
2 Accounts Receivable
Trade & Other Receivable are recognized and carried at original invoice amounts less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off when identified.
April 30, 2013 December 31, 2011
Current 103,161.00 226,248.82 Past Due 483,508.00 489,188.00 Others 441.50 11,585.00 Total 587,110.50 727,021.82
3 Plant, Property and Equipment
Property, Plant and Equipment are recorded at cost less accumulated depreciation. The cost of an asset comprises its purchase price and directly attributable costs of bringing the asset to working condition for its intended use. Major improvements are capitalized; expenditures for repairs and maintenance are charged to expense as incurred.
Depreciation is computed on straight-line basis over the estimated useful lives of the assets. The useful life and depreciation method are reviewed periodically to ensure that the period and method of depreciation are consistent with the expected pattern of economic benefits from the items of property, plant and equipment.
Life Years Land - Water System 10 years Power Generator 10 years Building Improvements 30 years Building 30 years Laboratory Equipments 15 years Drum Corps Equipment 15 years Furniture and Fixtures 15 years
Sports Equipment 15 years Tools and Utensils 10 years Other F, F and E 10 years Library Books 10 years Gymnasium 50 years
A lapsing schedule of depreciation is attached.
Total Property and Equipment 23,094,214.95 Less Accumulated Depreciation 4,347,892.13
Property and Equipment (Net) 18,746,322.82
4 Non-current Liabilities This consist of the proceeds of long-term debt from ICTUS and SRMPC which bears interest of 3% monthly.
April 30, 2013 December 31, 2011 Long-term Liability 3,423,500.42 -
5 Income from School Fees This consists of fees covering, matriculation, registration fees, dental and medical fees, library, laboratory, tuition and athletic fees.
April 30, 2013 December 31, 2011 Income from School Fees 6,212,685.82 3,385,842.25
6 Uncategorized Income Uncategorized Income covers income from yearbook and insurance.
April 30, 2013 December 31, 2011 Uncategorized Income 406,135.00 525,365.00
7 Other Income Other income are income from risograph machines, copier, rentals and income generated from drum corps and cheerdance.