Notes to Financial Statements

The Full disclosure principle requires an entity to provide necessary information

about their financial statements, operations and policy. These information were
disclosed in the notes to financial statements presented subsequent to the financial
reports.

As for the Bloomberry’s report, they begin their notes by stating the date of filing
and registration to the Securities and Exchange Commission (the government agency
which regulates Partnership and Corporations in the Philippines). The Corporate term of
Bloomberry is 50 years but is subject for extension for another 50 years. According to
Batas Pambansa Blg. 68, a corporation has a legal life of 50 years and can only be
extended for another 50 years provided that it has been made known and stated in the
articles of Incorporation. However, the Revised Corporation Code now allows the
perpetual existence of corporations. This new Code took effect on February 20, 2019,
since the FS was prepared on March 5, 2019 (13 days from the revision), they might
have not read the revision yet so they followed the prior code.

The standard where the group’s consolidated financial statements have been
prepared is also disclosed in the notes. As stated the entity prepared these FS in
conformity with Philippine Financial Reporting Standards (“PFRS”). Other details
disclosed in this section include the company’s measurement of assets which are of
historical cost basis except for derivative assets and investment in club shares which
have been measured at fair value. The changes in accounting policies are also
presented to conform to the amendments to PFRS just like the adoption of PFRS 9
which requires the application of forward looking expected credit loss (ECL) approach
instead of PAS 39’s incurred loss approach. This creates a fundamental change in the
entity’s accounting for impairment, for this reason, disclosures are necessary.

In summary, the notes to FS of Bloomberry had presented only the necessary

disclosures to provide the users with concise but not redundant and overloaded
information.

Conclusion

Financial statements are used to provide financial information about an entity’s

operations and activities which are helpful to the users particularly to the investors and
creditors in evaluating the company’s earning potential. In preparing a report about an
entity’s operations, one should conform to the standards provided by different standard-
setting body such as PAS (Philippine Accounting Standards ), and PFRS (Philippine
Financial Reporting Standards ) for a fair, well-written and uniform report. Standards are
very essential as they supply the guidelines to be followed from the format and
technicality down to the measurement and recognition of accounts and the presentation
of financial statements.

To conclude, Bloomberry Resorts and Corporation has presented its

consolidated financial statements fairly and in accordance with the Philippine Financial
Reporting Standards (“PFRS”).