ALAH VALLEY ACADEMY OF SURALA COTABATO, INC.

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.

April 30, 2013 December 31, 2011

Other Income 35,516.26 13,999.70