(ACCCOB2) Reflection Paper

ACCCOB2 PORTFOLIO
Reflection paper presented to the Accountancy Department
In partial fulfilment of the course requirement in ACCCOB2 AY 2020-2021
Submitted by:
Panda, Ainon Jarya A.
Tulio, Courtney Love
K-32
CHAPTER I. INVESTMENTS
Universal Robina Corporation classifies its investments at fair value and initial
recognition and subsequently measures them at amortized cost, fair value through other
comprehensive income, and fair value through profit or loss. Such classification of their
financial assets depend on the latter’s contractual cash flow components and the
corporation’s business model for managing them when it comes to initial recognition.
However, given the exception of trade receivables that do not have a significant financing
component, URC initially measures a financial asset at its fair value; and in the case wherein
such asset is not at FVTPL, it is measured at transaction costs. The financial assets of the
company as of December 31, 2019 and 2018 consist of financial assets at amortized cost,
financial assets designated at FVOCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments), derivative assets at FVOCI and financial assets at
FVTPL (equity instruments). To emphasize when it comes to debt instruments, the
corporation classifies such at amortized cost or FVOCI, but they also described that they
may be designated at FVTPL on initial recognition to reduce any sort of accounting
mismatch if the situation so provides.
Meanwhile, the recognition of Universal Robina Corporation’s total assets amounted

to P3.2 billion as of January 1, 2019 and P3.7 billion at December 31, 2019. The account for
financial assets at FVTPL consists of investments held-for-trading amounting to P414.9
million and P420.2 million as of December 31, 2019 and 2018, respectively. Investments
held-for-trading consist of quoted equity securities issued by certain domestic entities.
Market valuation on financial instruments at fair value though profit and loss amounted to
P5.3 million loss, P35.4 million loss and P71.0 million gain for the years ended December
31, 2019, 2018 and 2017, respectively. The Group received dividends from its quoted equity
securities amounting to P=16.2 million, P32.3 million and P=2.9 million for the years ended
December 31, 2019, 2018 and 2017, respectively.
The company’s investment properties consist of properties that are held to earn
rentals or for capital appreciation or both, and those which are not occupied by entities in
the Group. Investment properties, except for land, are carried at cost less accumulated
depreciation and any impairment loss, if any. Land is carried at cost less any impairment
loss, if any. The carrying amount includes the cost of replacing part of an existing
investment property at the time that cost is incurred if the recognition criteria are met, and
excludes the cost of day-to-day servicing of an investment property.
Additionally, they have also invested in joint ventures wherein they use the equity
method of accounting. In the arrival of the event wherein there has been a change
recognized directly in the investees’ equity, the company recognizes its share of any
changes and discloses this, when applicable, in the other comprehensive income in the
consolidated statement of changes in equity. Profits and losses arising from transactions
between URC and the joint ventures are eliminated to the extent of the interest in the joint
ventures.
It is also note-worthy that the corporation’s financial statements include common

stock, retained earnings, other comprehensive income, treasury shares, dividends, earnings
per share, and the like; which were also discussed during the lectures of ACCCOB2.
CHAPTER II. INVENTORY

The inventory account of Universal Robina Corporation amounts to approximately
P24.3 billion in 2019 and P22.0 Billion in 2018. It was also reported that under the terms of
the agreements covering liabilities under trust receipts totaling P8.7 billion and P6.0 billion
as of December 31, 2019 and 2018, respectively, certain inventories which approximate the
trust receipts payable, have been released to the company under trust receipt agreement
with the banks. They also recognized impairment losses amounting to P7.9 million and P2.9
million for the years ended December 31, 2019 and 2018, respectively.
Found in p.25 of their financial statement, it was stated that inventories, including
goods-in-process, are recorded at cost and subsequently valued at the lower of cost and net
realizable value.
The corporation accounts for the costs incurred in bringing products to the present location
and conditions as follows:
a) Finished goods, goods-in-process, raw materials, containers and packaging materials,

and spare parts and supplies
● Cost is determined using the weighted average method. Finished goods and
goods-in-process include direct materials and labor, and a proportion of
manufacturing overhead costs based on actual goods processed and
produced, but excluding borrowing costs.
b) Materials in-transit
● Cost is determined using the specific identification basis.
Finally, their inventory account consists of raw materials, finished goods, spare parts
and supplies, containers/packaging materials, and goods-in-process.
*additional appendix

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ACCCOB2 PORTFOLIO

Reflection paper presented to the Accountancy Department

In partial fulfilment of the course requirement in ACCCOB2 AY 2020-2021

Panda, Ainon Jarya A.

Tulio, Courtney Love

Meanwhile, the recognition of Universal Robina Corporation’s total assets amounted

It is also note-worthy that the corporation’s financial statements include common

CHAPTER II. INVENTORY

a) Finished goods, goods-in-process, raw materials, containers and packaging materials,

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