FAR EASTERN UNIVERSITY

INSTITUTE OF ACCOUNTS BUSINESS AND FINANCE

FINANCIAL REPORTING TEMPLATE (FRT)

Welcome to the FEU-IABF Financial Reporting Template (FRT)!

This FRT is designed to test the various assumptions and show relationships of key financial aspects of the business case o
statements. The FRT should be fed with inputs or assumptions consistent with the write up found in the Business Plan or Fea

The FRT consists of projections and are not intended to be perfectly accurate. The mathematical accuracy of the numbers ar
of the assumptions and how the proponents support and defend those assumptions.

The FRT is not intended to meet the requirements of a financial accounting class, and do not purport to present information
or the rules on disclosures and financial statements presentation. For convenience, certain numbers are derived on acceptab

HOW TO USE THIS FRT

The 'TOP' Tab of the FRT contains the basic information about the proposed business or study like name of the proposed b
the summary of the contents of the entire FRT. The type of the organization selected will affect the taxes and the reports gen
The numbered yellow tabs from 1.0 to 7.0 contain the model inputs necessary to generate relationships of the financial
shaded cells are the designated are where the needed model input should be typed.
Areas are also provided wherein the proponents can put cross-reference of the related assumptions to their Business Plan o
the related assumptions.
The green tabs "P&L, SFP, SCF and FH" are the reports to be presented as part of the Financial Aspect of the Business Plan
processing program to be formatted by the Proponents in accordance with their Paper.
Refer to FEU-IABF Guide to Building your FRT for more information how to develop your case from start to finish.

TERMS OF USE
This End-User License Agreement (EULA) is a legal agreement between you and FEU IABF that covers this FRT made by FEU
you agree to be bound by the terms of this EULA.

This EULA grants you the right to download this FRT and distribute to your students for use in Far Eastern University (FEU) O

All title and copyrights in and to this FRT and any copies of this FRT are owned by Far Eastern University Institute of Accoun
for any purpose other than expressly permitted in this EULA is prohibited and may result in disciplinary action from the Univ

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

VERSITY
INESS AND FINANCE

EMPLATE (FRT)

ial aspects of the business case or feasibility study of the proponents through a set of basic financial
p found in the Business Plan or Feasibility Study of the proponents.

atical accuracy of the numbers are virtually assured. Emphasis should be made on the reasonableness

ot purport to present information in accordance with generally accepted accounting principles (GAAP)
numbers are derived on acceptable relationships instead to strict formula.

tudy like name of the proposed business or study, the business logo, and the type of organization and
ffect the taxes and the reports generated by the FRT.
ate relationships of the financial aspects of the proposed business plan or study. Typically, the blue

sumptions to their Business Plan or Feasibility as well as areas wherein Advisers can put comments on

ncial Aspect of the Business Plan or Feasibility Study. The reports can be copied and pasted in a word

se from start to finish.

hat covers this FRT made by FEU IABF. By downloading, copying, accessing or otherwise using this FRT,

in Far Eastern University (FEU) ONLY.

ern University Institute of Accounts Business and Finance Department of Accountancy. Use of this FRT
disciplinary action from the University in addition to severe civil and criminal penalties.
 FAR EASTERN UNIVERSITY
INSTITUTE OF ACCOUNTS BUSINESS AND FINANCE

FINANCIAL REPORTING TEMPLATE (FRT)

Company Name

Type of Business Organization (select the highlighted cell to see dropdown button)

The Type of Business Organization (Proprietorship, Partnership or Corporation) affects the tax implication of the financial assumption and the
financial statements line items used in the reports.

A. Model Inputs
1| General Assumptions
2| Project Expenses
3| Capital Expenditures
4| Cost Per Unit of Product or Service
5| Sales Projection
6| Production and Operating Expenses
7| Financing Plan
B. Reports
P&L PROFIT OR LOSS PROJECTION
SFP BALANCE SHEET PROJECTION
SCE STATEMENT OF CHANGES IN EQUITY
SCF STATEMENT OF CASH FLOWS
FH FINANCIAL HIGHLIGHTS

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

ial assumption and the

1.0
2.0
3.0
4.0
5.0
6.0
7.0

P&L
SFP
SCE
SCF
FH
 1.0 General Assumptions
General Assumptions lay down various economic and entity-specific factors that can affect various aspect of the busine

Input Unit of
Assumptions Amount Measure
A Annual Inflation Rate Percentage

B Annual Price Increase Percentage

C Annual Quantity Increase Percentage

D No. of Days of credit to Days

customers

E No. of Days Inventory Days

F No. of Credit Days Allowed Days

by Suppliers

G Factor (%) on Property Percentage

Plant and Equipment
H Budgeted initial direct No. of
costs Months

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

ious economic and entity-specific factors that can affect various aspect of the business plan such as inflation, increase in prices and quantit

Description Remarks

-Annual Inflation Rate will affect the level of expenses in the

succeeding years.
-Estimated increase in annual product price.

-Estimated increase in annual quantity of products or services sold.

-The length of time a customer has to repay the amount owed to the
business from a sales transaction (e.g. 30 days, 60 days, etc.).

-It is common for businesses to allow credit terms to their customers

to boost sales/revenues.
-The No. of Days of credit to customers will affect the level of
Accounts Receivables reported on the Statement of Financial
Position (SFP).
-If the business plan is for a trading or manufacturing concern, this is
estimated average length of time a set of inventories stays in the
store/warehouse before they get sold.

-Leave this item blank if not applicable or if the Business does not
intend to keep inventory items in its store.
-The No. of Days Inventory will affect the level of Inventory reported
on the Statement of Financial Position (SFP).
-The length of time the Supplier allowed to repay the amount owed
by the business to the Supplier from a purchase transaction (e.g. 30
days, 60 days, etc.).
-The No. of Days of credit allowed by Suppliers will affect the level of
Accounts Payable reported on the Statement of Financial Position
(SFP).
-The estimated level of spending on repairs and maintenance on
Machinery, Equipment and Vehicles of the Company

-The estimated no. of months to keep a minimum cash balance equal

to monthly level of operating expenses to sustain initial operations
while the business waits for its cash flows from sales.

All rights reserved.

ncrease in prices and quantity to be sold.

Adviser's Comment
 3.0 Project Expenses
Project expenses are the costs spent at the beginning of the business and tend to include registration, development
costs and other operating expenses before commencement of business operations. Populate the table below those
and additional discussion in your Business Plan Paper.

Cost
Description Remarks
(In PhP)
a Registration fees, taxes and licenses
b Professional fees
c Trials and Testing
d Training and deployment
e Travel costs
Others (Specify)
f
g
h
i
j
k
l
Total Project Expense -

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

d to include registration, development, testing and qualification, training and deployment, and travel
tions. Populate the table below those that apply to your Business Plan. Put the breakdown of each item

Adviser's Comment
4.0 Capital Expenditures
Populate the tables below under Year 1 for items of fixed assets and intangible assets required to start the business. If
after Year 1, put the costs of the additional items under the appropriate Year when the business plans to acquire addi
each item in the body of the business plan.
Important Note: Depreciation of Production-related asset goes to Cost of Revenues, while depreciation of General Adm

PART 1 OF 2: INVESTMENT IN FIXED ASSETS (PROPERTY, PLANT AND EQUIPMENT)

PRODUCTION
Fixed Assets Directly Related to Production of Year 1 Year 2 Year 3
Goods or Services

A Land
B Factory Building
C Machinery and Equipment
D Factory Furniture and fixtures
E Factory Vehicles
Others:
F
G
H
Total 0.00 0.00 0.00

GENERAL ADMINISTRATIVE & SELLING

Fixed Assets Related to General Administrative Year 1 Year 2 Year 3
and Selling Activities

A Land (for Corporate Office)

B Office and Sales Building
C Office & Sales Equipment
D Office & Sales Furniture and fixtures
E Service Vehicles (Office & Sales)
Others:
F
G
H
Total 0.00 0.00 0.00

PART 2 OF 2: INVESTMENT IN INTANGIBLE ASSETS (If Applicable)

PRODUCTION
Intangible Assets Year 1 Year 2 Year 3

A Indefinite Life (like Trademark)

B Definite Life (Franchise, copyright)
 Total 0.00 0.00 0.00

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

ets required to start the business. If the business decides to expand and acquires additional fixed assets and intangible assets
n the business plans to acquire additional items, otherwise leave them blank. Put the description, quantity and breakdown of

s, while depreciation of General Administrative and Selling assets goes to Operating Expenses.

Remarks
Year 4 Year 5 Estimated Useful
Lives in Years

Not Applicable
5.00
5.00
5.00
5.00

5.00
5.00
5.00
0.00 0.00

SELLING Remarks
Year 4 Year 5 Estimated Useful
Lives in Years

Not Applicable
5.00
5.00
5.00
5.00

5.00
5.00
5.00
0.00 0.00

Remarks
Year 4 Year 5 Estimated Useful
Lives in Years

Not Applicable
5.00
0.00 0.00
tional fixed assets and intangible assets
description, quantity and breakdown of

xpenses.

Adviser's Comment

Adviser's Comment

Adviser's Comment
5.0 Cost Per Unit of Product or Service
Document here the Products or Services that the business plan will offer. If the Business Plan is a Manufacturing or Se
Other Variable Costs will be captured in tab '6|Production and Operating Expenses'.

(Note: If Manufacturing or Service Concern, Cost of Mater

No. Name of Product/Service Unit Cost per Unit Selling Price Markup
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
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24
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27
28
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30
31
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36
37
38
39
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81
82
83
 84
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91
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93
94
95
96
97
98
99
100
lan is a Manufacturing or Service concern, only cost of materials are documented here. Cost of Direct Labor and

vice Concern, Cost of Materials only)

Description Remarks Adviser's Comment
5.0 Sales Projection
Document expected sales in unit per month. Relate your projection with your supply and demand analysis, and seaso

Monthly Sales in Units

Name of Product/Service Unit Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
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27
28
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31
32
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34
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68
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71
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75
76
77
78
79
 80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
Total
demand analysis, and seasonality and other market factors.

Sub Totals
Monthly Sales in Units - -

Month 7 Month 8 Month 9 Month Month Month Total Annual Selling Total Annual
10 11 12 Volume Price Sales in Pesos

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tals
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Total Cost of Remarks Adviser's Comment

Sales

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7.0 Production and Operating Expenses
Populate the tables below based on the Proponents' estimates, supported by Assumptions which must be documented
Some Operating Expenses for the succeeding years will be affected by the inflation rate.
Some Operating Expenses such as Rent and Sales and Marketing are based on annual discretionary budget of the Busi

PRODUCTION COSTS
Particulars Percentage Year 1 Year 2
A Materials (from 4|Cost Per Unit) 0.00 0.00
B Direct labor (As a Percentage of Material Cost) 0.00 0.00
Overhead
Variable Overhead Costs
C Other variable overhead (As Percentage of Material Cost) 0.00 0.00
D Other variable overhead (As Percentage of Labor Cost) 0.00 0.00
Fixed Overhead Costs
E Supplies
F Insurance
G Repairs & Maintenance
H Communication, Light and Water
I Rent
J Transportation and Travel
K Depreciation and Amortization - -
L Taxes and Licenses
M Trainings and seminars
N Other fixed overhead
Total Production Cost 0.00 0.00

OPERATING EXPENSES (Limited to General & Administrative & Selling Costs only)
Particulars Year 1 Year 2
1 Payroll and Related Expenses (excluding direct labor costs)
2 Professional Fees
3 Office supplies
4 Insurance
5 Repairs and Maintenance
6 Communication, Light and Water
7 Rent
8 Interest expense - -
9 Sales and marketing
10 Transportation and Travel
11 Depreciation and Amortization - -
12 Taxes and Licenses
13 Representation and Entertainment
14 Trainings and seminars
Others (Specify):
15
16
17
18
19
 20
Total Operating Expenses - -

Document your Assumptions, References and Comments Here

PRODUCTION COSTS
Particulars Assumption
Materials (from 4|Cost Per Unit)
A

Direct labor (As a Percentage of Material Cost)

B

Other variable overhead (As Percentage of Material Cost)

C

Other variable overhead (As Percentage of Labor Cost)

D

Supplies
E

Insurance
F

Repairs & Maintenance

G

Communication, Light and Water

H

Rent
I

Transportation and Travel

J

Depreciation and Amortization

K
 Taxes and Licenses
L

Trainings and seminars

M

Other fixed overhead

N

OPERATING EXPENSES (Limited to General & Administrative & Selling Costs only)
Particulars Assumption
Payroll and Related Expenses (excluding direct labor costs)
1

Professional Fees
2

Office supplies
3

Insurance
4

Repairs and Maintenance

5

Communication, Light and Water

6

Rent
7

Interest expense
8

Sales and marketing

9
 Transportation and Travel
10

Depreciation and Amortization

11

Taxes and Licenses

12

Representation and Entertainment

13

Trainings and seminars

14

15

16

17

18

19

20

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

which must be documented in their Business Plan.

etionary budget of the Business and thus can be populated manually based on company's budget for each year.

Year 3 Year 4 Year 5

0.00 0.00 0.00
0.00 0.00 0.00

0.00 0.00 0.00

0.00 0.00 0.00

- - -

0.00 0.00 0.00

Year 3 Year 4 Year 5

- - -

- - -
- - -

Reference in Business Plan Comments

Reference in Business Plan Comments
 2.0 Financing Plan
This section summarizes the total initial investment needed to start the business and operate it for th

REQUIRED FUNDING: AMOUNT IN PHP

1 PROJECT EXPENSES -
2 CAPITAL EXPENDITURES -
3 INITIAL DIRECT COSTS AND OPERATING EXPENSES -
4 OTHER CONTINGENCIES
TOTAL PROJECTED FINANCING NEEDS -

SOURCE OF FUNDING AMOUNT IN PHP

1 EQUITY -
2 LOAN
TOTAL FINANCING -

3 TERM OF LOANS (IN YEARS)

4 ANNUAL INTEREST RATE

Amount of Owner/Partners/Shareholders Withdrawal Per Year AMOUNT IN PHP

1 Year 1
2 Year 2
3 Year 3
4 Year 4
5 Year 5
Total -

Additional Investments Per Year AMOUNT IN PHP

1 Year 2
2 Year 3
3 Year 4
4 Year 5
5 Total -

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

ded to start the business and operate it for the first few months before cash from sales come in.

REQUIREMENTS
From 2|Project Expenses.
From 3|Capital Expenditures.
From 6|Production & Operating Expenses.

Remarks Adviser's Comment

Remarks Adviser's Comment

Remarks Adviser's Comment

PROFIT OR LOSS PROJECTION
For the Year Ended: Year 1 Year 2 Year 3
Revenues

Revenues ₱- ₱- ₱-

Total Revenue - - -

Direct Costs

Cost of Revenues - - -

Total Direct Costs - - -

Gross Profit - - -

Operating expenses

Payroll and Related Expenses -

Professional fees -
Office supplies -
Insurance -
Repairs and maintenance
Utilities (Communication, Light and Water) -
Rent - - -
Sales and marketing - - -
Transportation and Travel -
Taxes and Licenses -
Representation and Entertainment -
Seminars, Trainings and Subscriptions -
Other - - -

Total Operating Expenses - - -

Earnings Before Interest, Taxes, Depreciation and

- - -
Amportization (EBITDA)

Depreciation, Amortization and Interest

Depreciation and Amortization - - -

Interest expense - - -

Total Depreciation, Amortization and Interest - - -

NET INCOME (LOSS) BEFORE TAX - - -

TAX RATE*

INCOME TAX EXPENSE (BENEFIT) 0 0 0

PROFIT OR (LOSS) ₱- ₱- ₱-

*Corporations and Partnerships are subject to 30% Regular Corporate Income Tax
Year 4 Year 5

₱- ₱-

- -

- -

- -

- -

- -
- -

- -

- -

- -

- -
- -

- -
 - -

0 0

₱- ₱-
STATEMENT OF FINANCIAL POSITION PROJECTION
As of End of: Year 1 Year 2 Year 3 Year 4
ASSETS

Current Assets

Cash and cash equivalents ₱- ₱- ₱- ₱-

Accounts receivable - - - -
Total inventory - - - -

Total current assets - - - -

Non Current Assets

Property, Plant and Equipment - - - -

Less: Accumulated Depreciation - - - -
Net Book Value - - - -

Intangible Assets - - - -
Less: Accumulated Amortization - - - -
- - - -

Total Non Current Assets - - - -

TOTAL ASSETS ₱- ₱- ₱- ₱-

LIABILITIES

Current Liabilities

Accounts payable ₱- ₱- ₱- ₱-

Total Current Liabilities - - - -

Noncurrent Liabilities

Long-term debt/loan - - - -

TOTAL LIABILITIES - - - -

EQUITY

Proprietor's Equity - - - -

TOTAL EQUITY - - - -
TOTAL LIABILITIES AND EQUITY ₱- ₱- ₱- ₱-

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

Year 5

₱-
-
-

-
-
-

-
-
-

₱-

₱-

-
₱-
STATEMENT OF CHANGES IN EQUITY
For the Year: Year 1 Year 2 Year 3 Year 4

EQUITY

Beginning of The Year ₱- ₱- ₱- ₱-

Additional Investments - - - -
Withdrawals - - - -
Profit or Loss - - - -

TOTAL EQUITY END OF THE YEAR ₱- ₱- ₱- ₱-

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

Year 5

₱-
-
-
-

₱-
STATEMENT OF CASH FLOWS
For the Year Ended: Year 1 Year 2 Year 3 Year 4
Operating activities

Net income ₱- ₱- ₱- ₱-
Add back:
Depreciation and Amortization - - - -
Change in Current Assets/Current Liabilities
Accounts receivable - - - -
Inventories - - - -
Accounts payable - - - -

Total operating activities - - - -

Taxes Paid - - - -
Net operating activities - - - -

Investing activities

Capital expenditures - - - -

Total investing activities - - - -

Financing activities

Long-term debt/financing - - - -
Capital contribution - - - -
Withrawals - - - -

Total financing activities - - - -

Net Cash flow During the Year - - - -

Beginning cash balance - - - -

Ending cash balance ₱- ₱- ₱- ₱-

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

Year 5

₱-

-
-
-

-
-

-
-
-

₱-
FINANCIAL HIGHLIGHTS

Liquidity Ratios Year 1 Year 2 Year 3 Year 4

Current Ratio
Quick Ratio
Liquidity ratios measure the company's ability to pay off its short-term obligations. Generally, the higher the value of the ratio,
the larger the margin of safety that the company possesses to cover short-term debts.
Current Ratio is a liquidity ratio that measures a company's ability to pay-off its short-term liabilities with its current assets.
Quick Ratio is also a financial ratio used to gauge a company's liquidity. It is a more stringent measure of liquidity than current
ratio because unlike current ratio which assumes all current assets are available to settle short-term debts, quick ratio limits the
calculation to cash, marketable securities and receivables.

Solvency Ratios Year 1 Year 2 Year 3 Year 4

Shareholder's Equity Ratio
Leverage Ratio

Solvency Ratio measures the company's ability to meet its long-term obligations.
Sharehoder's Equity Ratio represents the amount of assets on which the shareholders or owners have a residual claim.
Leverage Ratio measures the risk that the company is exposed from debt financing. It shows how much capital comes in the
form of debt or loans and assesses the company's ability to meet long term financial obligations.

Profitability (Return) Ratios Year 1 Year 2 Year 3 Year 4

Return on sales or gross income
Return on equity (debt plus equity)
Return on assets
Asset turnover
Percentage of EBITDA to gross revenue
Profitability Ratios are a class of financial measurements that are used to assess the company's ability to generate earnings as
compared to its expenses and other relevant costs incurred during a specified period.

Break even sales in Units Year 1 Year 2 Year 3 Year 4

Total Sales in Units to Break Even #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Break even sales in Pesos Year 1 Year 2 Year 3 Year 4

Total Sales in Pesos to Break Even #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Breakeven point is the level of sales needed to cover the company's fixed and variable expenses during a specified period of
time. Composite breakeven point considers the sales mix structure to arrive at required sales to break even.
Payback Period
No. of Years to Recover Initial Investment -

Payback Period measures the total number of years needed to recover the initial investment used to start or operate the
business.

© 2017 FEU-IABF Department of Accountancy. All rights reserved.

 Year 5

higher the value of the ratio,

s with its current assets.

sure of liquidity than current
m debts, quick ratio limits the

Year 5

have a residual claim.

much capital comes in the

Year 5

ability to generate earnings as

Year 5
#DIV/0!

Year 5
#DIV/0!

during a specified period of

ak even.
 -

to start or operate the

This is the free edit portion of the FRT (sheeets labeled 1-6), you can manipulate the sheets in any way you prefer. You ma
the model inputs required in this FRT.
in any way you prefer. You may copy certain tables and data from your paper into this portion for easy linking in