WINDSOR HOMES HOMEOWNERS ASSOCIATION, INC

Notes to Financial Statements

December 31, 2014
(In Philippine Pesos)
NOTE 1 COMPANY INFORMATION
WINDSOR HOMES HOMEOWNERS ASSOCIATION, INC. (Non-stock, Non Profit)
was established with the primary purpose of providing security to its
members and the management and maintenance of the subdivision. The
association was registered with the Housing and Land Use Regulatory Board
(HLURB) as a non-stock, nonprofit corporation.
The registered address is at Area-C, DBB, Dasmarias City, Cavite.
NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basic o Preparation
The financial statements of the company were prepared in accordance with
the Philippine Financial Reporting Standards and under the historical cost
basis.
2.2 Use of Estimates
The preparatory of financial statement in conformity with accounting
principles generally accepted in the Philippines requires management to
make estimates and assumptions that affect the reported amounts of income,
expenses, assets, liabilities and owners capital and disclosure of contingent
assets and liabilities. Actual results could differ from these estimates.
Adoption of New Statements of Financial Accounting Standards (SFAS)/
International Accounting Standards (AIS) which became effective on January
1, 2004 and prior years.
PAS 1. Preparation of Financial Statements, provides a framework within
which an entity assess how to present fairly the effects of transactions other
events provides the base criteria from classifying liabilities as current or noncurrent; prohibits the presentation of income the operating activities and
extra-ordinary items as separate line in the statement of income; and
specifies the disclosure about key success of estimation, uncertainly and
judgments management has made in process of applying the entitys
accounting policies. It requires changes in the presentation of minority
interest in the balance sheet and statement of income. It also require in the
presentation of cash and cash equivalents, and accounts receivables in the
balance sheet.
PAS 8, Accounting Policies, Change in Accounting Estimates and Errors,
removes the concepts of fundamental error and the allowed alternative to
retrospective application of voluntary changes in accounting policies and
retrospective restatements to correct prior period errors. It defines material
omission or statement, and describes how to apply the concepts of materially
when applying accounting policies and correcting errors.

PAS 10, Events after the Balance Sheet Date, provides a limited clarification
of accounting for dividends declared after the balance sheet date; and
requires disclosure of two (2) types of events which can be identified as (1)
those that provide evidence of conditions that exist at the balance sheet date
(adjusting events after the balance sheet date) and (2) these are indicative of
conditions that arose after the balance sheet date (non-adjusting events after
the balance sheets date.)
PAS 16, Property, Plant and equipments, provides additional guidance and
clarification on recognition and measurement of items or property, plant and
equipments is also provides that each part of an item of property, plant and
equipments with cost that is significant in relation to the total cost of the item
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 equipments.
PAS 18, Revenue Recognition, Revenue is recognized when it is probable that
the economic benefits associated with the transactions will flow to the
company and the amount of revenue can be reliably measured. Sales are
recognized as the interest is recognized as the interest accrues.
PASS 22, Related party Disclosures, provides additional guidance and clarity
in the scope of the standards, the definitions and disclosures for related
parties. It also requires disclosures of compensations of the key management
personnel by benefit type.
Adaption of these new standards did not result in restatement of prior years
financial statements.
New Accounting Standards Effective Subsequent to 2004, the Accounting
Standard Council (ASC) approved the insurance of new and revised
accounting standards, which are based on the revised IAS and the new
International Financial Reporting Standards (IFRS) issued by the International
Accounting Standard b\Board (IASB). The ASC has renamed the standard that
is issued to correspond better with the issuances of the IASB. Philippine
Accounting Standards (PAS) and Philippine Financial Reporting Standards
(PFRS) correspond to adopt IAS and IFRS, respectively. Previously, standard
issued by the ASC were designated as Statements of Financial Reporting
Standards (SFRS).
The company will adopt the following in the future:
PAS 24, Employee Benefits, requires the use of project unit credit method in
measuring retirement benefit expense and a change in the manner of
computing benefit expense relating to past service cost and actuarial gain
and losses. It requires company to determine the present value of defined
benefit obligations and the fair market value of any plan assets with sufficient
regularity that the amount recognized in the financial statements do not
differ materially from the amounts that would be determined at the balance
sheet date.
Statement of Compliance

We applied Philippine Financial Reporting Standards of PFRS 1, First time

adoption of Philippine Financial Reporting Standards in preparing our financial
statements, with June 1, 2004 as the date of transition. We applied the
accounting principle set forth above to the years presented.
2.3 Cash and Cash Equivalents
Cash includes cash on hand in banks only.
2.4 Accounts Receivables
Accounts receivables are recognized and carried at original invoice amount or
face value less an allowance from any uncollectible amounts. An allowance
for doubtful accounts is made when the collection of the full amounts in no
longer probable.

2.5 Property, Plant and Equipments

Property, plant and equipments are carried at cost, net of accumulated
depreciation. Depreciation is computed using the straight line method over
the estimated useful lives of the properties ranging from two or twenty years.
The cost of repairs and maintenance is charged to income as incurred;
significant renewals and betterments are capitalized. When assets are retired
or otherwise disposed of, the cost and related accumulated depreciation are
removed from the accounts and any resulting gain or loss is reflected as
income in the period.
The useful lives and depreciation and amortization are reviewed periodically
to ensure that the period and method of depreciation are removed from the
accounts and any resulting gain or loss is reflected as income in the period.
The useful lives and depreciation and amortization are reviewed periodically
to ensure that the period and method of depreciation and amortization are
consistent with the expected pattern of economic benefits from the items of
property, plant and equipment.
2.6 Revenue
Revenue is recognized when it is probable that the economic benefits
associated with the transactions will flow to the company and the amount of
revenue can be reliably measured. Service incomes are recognized when the
service has been accomplished and completed. Interest is recognized as the
interest accrues.
2.7 Subsequent Events
A post year-end event that provides additional information about the
companys position at balance sheet date (adjusting events) are reflected in
the financial statements. Post year-end events that are not adjusting events
are disclosed when material.
2.8 Related party disclosures

Related party disclosure provides additional guidance and clarity in the scope
of the standard, the definition and disclosures for related parties. It also
requires disclosures to compensation of the key management personnel by
benefit type.