Marissa.P. Escala m[ili] mmNumber) · 2019-06-18 · P.T.R. No. 0024447, issued on January 3,2014,...

!-./ ..COVER SHEET

(Company's Full Name)

Marissa.P. Escala(Contact Person)

m[ili]Month Day

(Fiscal Year)

I~~-Dept. Requiring this Doc.

I~_ITotal No. of Shareholders

~(Form 'JYpe)

I~~~I(Secondary License 'JYpe, If Applicable)

521-6300(Company Telephone Number)

mmMonth Day(Annual Meeting)

_ Amended Articles Number/Section

Total Amount of Borrowings

~_II~-Domestic Foreign

~-------------------------------------------------------------------------------To be accomplished by SEC Personnel concerned

DocumentID

r-----------------------I, ,

STAMPS

~----------------- '

LCU

Cashier

Remarks: Please use BLACKink for scanning purposes.

.1 ,

--.pwcIndependent Auditor's Report

To the Board of Directors and Shareholders ofPhilam Dollar Bond Fund, Inc.(An Open-End Mutual Fund Company)17F Philam Life Head OfficeNet Lima Building, 5th Ave. cor. 26th St.Bonifacio Global City, Taguig 1634Philippines

Report on the Financial Statements

Isla Lipana & Co.

We have audited the accompanying financial statements of Philam Dollar Bond Fund, Inc., whichcomprise the statements of financial position as at December 31,2013 and 2012, and statements of totalcomprehensive income, statements of changes in equity and statements of cash flows for each of the threeyears in the period ended December 31, 2013, and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with Philippine Financial Reporting Standards, and for such internal control as managementdetermines is necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. Weconducted our audits in accordance with Philippine Standards on Auditing. Those standards require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements. The procedures selected depend on the auditor's judgment, including theassessment of the risks of material misstatement of the financial statements, whether due to fraud orerror. In making those risk assessments, the auditor considers internal control relevant to the entity'spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness ofthe entity's internal control. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of accounting estimates made by management, as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.

BUREAU"OF INTERNAL REVENUEf-l'=-VEMlJE REGION NO. a _ MAKATI

.".,,,••,,'''' n•••,."" orne"" N,,_ •.•

REC'if •.VED11IfTlAL: DATE". _

,QeD', ~;'l>E: JESS'" MAE Iol PELLE

APR........................................................................................................................................................................................................................................

Isla Lipana & Co., 29th Floor, Phi/amlife Tower, 8767 Paseo deRoxas, 1226Makati City, PhilippinesT: +63 (2) 845 2728, F: +63 (2) 8452806, www.pwc.com/ph

Isla lipana & Co. is the Philippine member firm of PWC. PwG refers to the Phillppine member firm, and may sometimes refer to the PwC network. Each member firmis a separate legal entity. Please see www.pwc.com/structureforfurtherdetalls.

http://www.pwc.com/ph

http://www.pwc.com/structureforfurtherdetalls.

-.Iipwc

Independent Auditor's ReportTo the Board of Directors and Shareholders ofPhilam Dollar Bond Fund, Inc.(An Open-End Mutual Fund Company)Page 2

Opinion

Isla Lipana & Co.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financialposition of Philam Dollar Bond Fund, Inc. as at December 31, 2013 and 2012, and its financialperformance and its cash flows for each of the three years in the period ended December 31, 2013 inaccordance with Philippine Financial Reporting Standards.

Report on Bureau ofIntemal Revenue Requirements

Our audits were conducted for the purpose of forming an opinion on the basic financial statements takenas a whole. The supplementary information in Note 14 to the financial statements is presented forpurposes of filing with the Bureau of Internal Revenue and is not a required part of the basic financialstatements. Such supplementary information is the responsibility of management and has been subjectedto the auditing procedures applied in our audits of the basic financial statements. In our opinion, thesupplementary information is fairly stated in all material respects in relation to the basic financialstatements taken as a whole.

Isla Lipana & Co.

Zaldy D. AguirrePartnerCPA Cert No. 105660P.T.R. No. 0024447, issued on January 3,2014, Makati CitySEC A.N. (individual) as general auditors 1176-A,Category A; effective until January 4,2015SEC A.N. (firm) as general auditors 0009-FR-3; effective until August 15, 2015TIN 221-755-698BIRA.N. 08-000745-77-2012, issued on February 9,2012; effective until February 8,2015BOA/PRC Reg. No. 0142, effective until December 31, 2016

Makati CityApril 4, 2014

J •

.JIpwc

Statements Required by RuIe 68Securities Regulation Code (SRC),As Amended on October 20, 2011

To the Board of Directors and Shareholders ofPhilam Dollar Bond Fund, Inc.(An Open-End Mutual Fund Company)17F Philam Life Head OfficeNet Lima Building, 5th Ave. cor. 26th St.Bonifacio Global City, Taguig 1634Philippines

Isla Lipana & Co.

We have audited the financial statements of Philam Dollar Bond Fund, Inc. as at and for the year endedDecember 31, 2013, on which we have rendered the attached report dated April 4, 2014. The supplementaryinformation shown in the Reconciliation of Retained Earnings Available for Dividend Declaration andSchedule of Philippine Financial Reporting Standards effective as at December 31, 2012 as additionalcomponents required by Part I, Section 4 of Rule 68 of the Securities ReguIation Code and SupplementaryScheduIes A and H as additional components required by Part II, Section 6 of RuIe 68 of the SecuritiesRegulation Code, is presented for purposes of filing with the Securities and Exchange Commission and is not arequired part of the basic financial statements. Such supplementary information is the responsibility ofmanagement and has been subjected to the auditing procedures applied in the audit of the basic financialstatements. In our opinion, the supplementary information has been prepared in acCordance with Rule 68 ofthe Securities Regulation Code.

Isla Lipana & Co.,

\

Zaldy D. AguirrePartnerCPA Cert No. 105660P.T.R. No. 0024447, issued on January 3,2014, Makati CitySEC AN. (individual) as general auditors 1176-A, Category A; effective until January 4,2015SEC AN. (firm) as general auditors 0009-FR-3; effective until August 15, 2015TIN 221-755-698BIRAN. 08-000745-77-2012, issued on February 9,2012; effective until February 8, 2015BOA/PRC Reg. No. 0142, effective until December 31, 2016

Makati CityApril 4, 2014

- REVENUE I____-. _ OF INTERNA\ _M-A~•••.tl

\

'''IR.CA.U'E K.£0101'4 ~~ •.<_ •• N".... .. '~::;;c'~tveD\ w.~~ C~TE:. c.ocOOf:00)3681 ')i1;VJ:_~ElI.E II

h hhh.hhhhh ..hh.hhhh hh hj:~~:K?R~~:2IJ.'lO\4 ..hhh hh..hhhh hhh hhhh.hhh ..hhh.Isla Lipana & Co., 29th Floor, Phi/amlife Tower, 8767 Paseo de Roxas, 1226 Makati City, PhilippinesT: +63 (2) 8452728, F: +63 (2) 8452806, www.pwc.com/ph

Isla Upana & Co. is the Philippine member firm of PWC. PWC refers to the Philippine member firm, and may sometimes refer to the PwC network. Each member firmis a separate legal entity. Please see www.pwc.com/structureforfurtherdetails.

http://www.pwc.com/ph

http://www.pwc.com/structureforfurtherdetails.

Statements of Financial PositionDecember 31, 2013 and 2012

Philam Dollar Bond Fund, Inc.(An Open-End Mutual Fund Company)

Notes

2013In thousands of In thousands ofUS Dollars Phili ine Pesos

2012In thousands of . In thousands ofUS Dollars Phili ine Pesos

Cash and cash equivalentsFinancial assets at fair value through profit or lossAccrued income .

Total assets

ASSETS

56

5,68160,5151,12967,325

252,2082,686,563

50,1222,988,893

3,11175,784.1,25280,147

127,7073,110,933

51,3953,290,035

LIABILITIES AND EQUITY

LIABILITIESAccounts payable and accrued expenses 7 274 12,164 250 10,263Due to Philam Asset Management, Inc. 12 126 5,594 112 4,598Total liabilities 400 17,758 362 14,861

EQUITY 8Share capital 35,221 1,779,533 38,042 1,902,100Translation adjustment (851,450) (1,095,929)Retained earnings 31,704 2,043,052 41,743 2,469,003Total equity 66,925 2,971,135 79,785 3,275,174Total liabilities and equity 67,325 2,988,893 80,147 3,290,035

The notes on pages 1to 28 are an integral part of these financial statements.

I r":_;~Jr;':~~r~i~I~ENR~t~~~~~~IE

I ~~e'e:~rW;VE'D1 IWlrl'-.(: [)ArE;_~ __

! ~':0, ~AI<!;::JESS'" "'.!lEM PELLE RCOCOO£;()0J3~8

'~R 2 R ?nil


Statements of Total Comprehensive IncomeFor each of the three years in the period ended December 31,2013

2013 2012 2011In thousands In thousands In thousands

In thousands of Philippine In thousands of Philippine In thousands of PhilippineNotes of US Dollars Pesos of US Dollars Pesos of US Dollars Pesos

INCOMEInterest income 9 3,615 153,383 3,811 160,966 4,048 175,325Fair value gains, net 6 5,875 248,144 84 3,659

3,615 153,383 9,686 409,110 4,132 178,984EXPENSES

Fair value losses, net 6 9,628 408,512Management fees 12 1,241 52,655 1,281 54,106 1,299 56,275Fees and other charges 10 137 5,813 73 3,083 141 6,100Taxes and licenses 72 3,064 46 1,924 47 2,011Foreign exchange loss, net 1 42 8 357 1 56 .Other 36 1,518 9 380 14 615

11,115 471,605 1,417 59,850 1,502 65,057(LOSS) PROFIT BEFORE INCOME TAX (7,500) (318,222) 8,269 349,260 2,630 113,927INCOME TAX EXPENSE 11 7 297 2 84 5 228NET (LOSS) PROFIT FOR THE YEAR (7,507) (318,519) 8,267 349,176 2,625 113,699OTHER COMPREHENSIVE INCOME ••

Items that may be subsequentlyreclassified to profit or lossTranslation adjustment 244,479 (180,990) 3,549

TOTAL COMPREHENSIVE (LOSS) INCOMEFOR THE YEAR (7,507) (74,040) 8,267 168,186 2,625 117,248

BASIC AND DILUTED (LOSS) EARNINGS 8PER SHARE 0.2198 9.2819 0.0634 " "". .2-.7450

! .j ~

'<'.VENUE r-U.'.010N NO. e _ MAKAltR •• "..""", '"j ••",,,,, t)tfL,-", N" ..•.•

an integral part of these financial statements,I ~~~~~ti.!,'nJ..l; -9 ~~Jf:

.~__ .:.';'I:E_~;".t;.SSLm~{;lLE Il'::Gcom '".-- AP~ '')~ 'IIU!

Balance at January 1, 2011

Comprehensive incomeNet profit for the yearOther comprehensive incomeTranslation adjustment

Total comprehensive incomeTransactions with shareholders

Issuance of shares

Redemption of sharesTotal transactions with shareholdersBalance at December 31,2011

Comprehensive incomeNet profit for the yearother comprehensive incomeTranslation adjustment

Total comprehensive incomeTransactions with shareholders

Issuance of shares

Redemption of sharesTotal transactions with shareholdersBalance at December 31,2012(Forward)

Philarn Dollar Bond Fund, Inc.(An Open-End Mutual Fund Company)

Statements of Changes in EquityFor each of the three years in the period ended December 31, 2013


Statements of Changes in EquityFor each of the three years in the period ended December 31, 2013

TranslationShare capital Share premium adjustment Retained earnings Total

In thousands In thousands In thousands In thousands In thousands

In thousands of Philippine In thousands of Philippine of Philippine In thousands of Philippine In thousands of PhilippineNote of US Dollars Pesos of US Dollars Pesos Pesos of US Dollars Pesos of US Dollars Pesos

Balance at December 31,,2012 38,042 1,902,100 (1,095,929) 41,743 2,469,003 79,785 3,275,174Comprehensive income

Net loss for the year (7,507) (318,519) (7,507) (318,519)Other comprehensive income

Translation adjustment 244,479 244,479Total comprehensive loss. 244,479 (7,507) (318,519) (7,507) (74,040)Transactions with shareholders 8

Issuance of shares 3,823 157,723 3,823 157,723Redemption of shares (6,644) (280,290) (2,532) (107,432) (9,176) (387,722)

Total transactions with shareholders (2,821) (122,567) (2,532) (107,432) (5,353) (229,999)Balance at December 31, 2013 35,221 1,779,533 (851,450) 31,704 2,043,052 66,925 2,971,135


Philarn Dollar Bond Fund, Inc ..(An Open-End Mutual Fund Company)

Statements of Cash FlowsFor each of the three years in the period ended December 31, 2013

2013 2012 2011In thousands In thousands In thousands

In thousands of Philippine In thousands of Philippine In thousands of PhilippineNotes of US Dollars Pesos of US Dollars Pesos of US Dollars Pesos

CASH FLOWS FROM OPERATINGACTIVITIES(Loss) profit before income tax (7,500) (318,222) 8,269 349,260 2,630 113,927Adjustments for:

Unrealized fair value losses (gains), net 6 4,995 211,936 (1,749) (73,873) 212 9,297Foreign exchange adjustments 6 (223;488) 187,019 57

Operating (loss) income before changes inoperating assets and liabilities (2,505) (329,774) 6,520 462;406 2,842 123,281

Changes in operating assets and liabilitiesDecrease in Accrued income 123 1,273 67 6,449 60 2,612(Decrease) increase in:

Accounts payable and accrued expenses 24 1,901 74 2,567 52 2,260Due to Philam Asset Management, Inc. 14 996 20 545 (16) (682)

Purchases of:Financial assets at fair value through

profit or loss 6 (70,955) (3,010,592) (279,071) (11,787,206) (67,731) (2,969,321)Held-to-maturity investments (2,005) (87,917)

Proceeds from disposals/maturities of:Financial assets at fair value through

profit or loss 6 81,229 3,446,514 265,610 11,218,650 77,631 3,403,318Held-to-maturity investments 2,005 87,917

Net cash generated from (used in) operations 7,930 110,318 (4,775) (8,672) 10,833 473,551Income taxes paid (7) (297) (2) (84) (5) (228)Net cash from (used in) operating activities 7,923 110,021 (4,777) . (8,756) 10,828 473,323

(Forward)

Phil am Dollar Bond Fund, Inc.(An Open-End Mutual Fund Company)

Statements of Cash FlowsFor each of the three years in the period ended December 31, 2013

2013In thousands

In thousands of PhilippineNotes of US Dollars Pesos

2012In thousands

In thousands of Philippineof US Dollars Pesos

2011In thousands


CASH FLOWS FROM FINANCING ACTIVITIESIssuance of shares 8Redemption of shares 8Net cash used in financing activities

NET INCREASE (DECREASE) IN CASH ANDCASH EQUIVALENTS

CASH AND CASH EQUIVALENTS 5January 1Effect of exchange rate changes on cash and

cash equivalentsDecember 31

3,823 157,723 12,721 582,318 11,407 526,268(9,176) (387,722) (14,281) (679,074) (19,950) (902,957)(5,353) (229,999) (1,560) (96,756) (8,543) (376,689)

2,570 (119,978) (6,337) (105,512) 2,285 96,634

3,111 127,707 9,448 414,209 7,163 314,026

244,479 (180,990) 3,5495,681 252,208 3,111 127,707 9,448 414,209


APR 292014

Philarn Dollar Bond Fund, Inc.(An Open-End Mutual Fund Company)

Notes to Financial StatementsAfJat December 31, 2013 and 2012 and for each of the

three years in the period ended December 31, 2013

Note 1- General information

Philam Dollar Bond Fund, Inc. (the "Fund") is an open-end mutual fund company engaged in the saleof its shares of stock, the proceeds of which are invested in fixed income securities denominated inUnited States ("US") Dollars. It was registered with the Securities and Exchange Commission ("SEC")on September 5, 2001 under the Investment Company Act of 1960 or Republic Act 2629 and TheRevised Securities Act or Batas Pambansa BIg. 178. AfJan open-end mutual dollar fund company, its

. outstanding shares of stock are redeemable anytime at the holder's option based on the net asset value("NAV') per share at the time of redemption.

The Fund is registered as an issuer of securities with the SEC under Section 12 of the SecuritiesRegulation Code ("SRC"). The Fund's track record of securities registration is shown in Note 8.

The Fund's registered office address, which is also its principal place of business, is located at the 17FPhilam Life Head Office, Net Lima Building, 5th Avenue corner 26th St., Bonifacio Global City, Taguig1634, Philippines.

The Fund has no employees. Philam AfJsetManagement, Inc. ("PAMI"), a wholly-owned subsidiary ofThe Philippine American Life and General InsuranceCompany ("Philamlife"), acts as the Fundmanager. PAMI also serves as adviser, administrator and distributor ofthe Fund and providesmanagement, distribution and all required operational services.

The financial statements have been approved and authorized for issue by the Fund's Board of Directors("BOD") on April 1, 2014. There are no material events that occurred subsequent to April 1,2014 untilApril 4, 2014.

Note 2 - Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set outbelow. These policies have been consistently applied to all years presented, uuless otherwise stated.

2.1 Basis of preparation

The financial statements of the Fund have been prepared in accordance with Philippine FinancialReporting Standards ("PFRS"). The term PFRS in general includes all applicable PFRS, PhilippineAccounting Standards ("PAS") and interpretations of the Philippine Interpretations Committee ("PIC"),Standing Interpretations Committee ("SIC") and International Financial Reporting InterpretationsCommittee ("IFRIC") which have been approved by the Financial Reporting Standards Council("FRSC") and adopted by the SEC.

The financial statements have been prepared under the historical cost convention, as modified by therevaluation of financial assets at fair value throug p.l;tlfif<wlllss FI;'II: VENUE

H(oVENliE HEO.ON NO.6. MAKATl

~'F'e~~fm~vEil;"'\A,;,'C'-JESS)s.'M~. ~'. Erlt'--,,-oC-OO-',-OO-3366

_I

The preparation of financial statements in conformity with PFRS requires the use of certain criticalaccounting estimates. It also requires management to exercise its judgment in the process of applying theFund's accounting policies. The areas involving a higher degree of judgment or complexity significant tothe financial statements are disclosed in Note 4. There are no areas where assumptions and estimates aresignificant to the financial statements.

Changes in accounting policy and disclosUres

(a) New and amended standards adopted by the Fund

The following standard has been adopted by the Fund effective January 1, 2013 and has a materialimpact on the Fund:

• PAS 1 (Amendment), Financial Statement Presentation - Other Comprehensive Income (effectiveJuly 1, 2012). The main change resulting from these amendments is a requirement for entities togroup items presented in other comprehensive income on the basis of whether they are potentiallyreclassifiable to profit or loss subsequently (reclassification adjustments). The required change inpresentation has been effected in the statements of total comprehensive income.

• PFRS 13, Fair Value Measurement (effective January 1, 2013). This new standard aims to improveconsistency and reduce complexity by providing a clarified definition of fair value and a singlesource of fair value measurement and disclosure requirements for use across PFRS. Therequirements, which are largely aligned with IFRS and US GAAP, do not extend the use of fairvalue accounting but provide guidance on how it should be applied where its use is alreadyrequired or permitted by other standards within PFRS. Apart from the additional disclosuresrequired by PFRS 13, there is no other significant impact on the financial statements as the currentfair value measurement followed by the Fund is already consistent with the requirements of thenew standard. See Note 3 for the disclosures required by the new standard.

There are no other standards and amended standards that became effective for the first time for thefinancial year beginning January 1, 2013 had a material impact on the Fund's financial statements.

• I

(b) New standards, amendments and interpretations not yet adopted

A number of new standards and amendments to standards and interpretations will become effectivebeginning after January 1, 2013, which has not been early adopted by the Fund. The relevant standardand the assessment of its impact is discussed below:

• PFRS 9, Financial Instruments. This new standard addresses the classification, measurement andrecognition of financial assets and financial liabilities. It replaces the parts of PAS 39, FinancialInstruments: Recognition and Measurement, that relate to the classification and measurement offinancial instruments, and hedge accounting. PFRS 9 requires financial assets to be classified intotwo measurement categories: those measured as at fair value and those measured at amortizedcost. The determination is made at initial recognition. The classification depends on the entity'sbusiness model for managing its financial instruments and the contractual cash flow characteristicsof the instrument. For financial liabilities, the standard retains most of the PAS 39 requirements.The main change is that, in cases where the fair value option is taken for financial liabilities, part ofthe fair value change due to an entity's own credit risk is recorded in other comprehensive incomerather than in profit or loss, unless this creates an accounting mismatch. PFRS also details thechanges in requirements to hedge accounting that will allow entities to better reflect their riskmanagement activities in the financial statements. The mandatory effective date of PFRS9, whichis for annual periods beginning January 1, 2015 has been deferred and left open pending thefinalization of the impairment classification and measurement requirements. The Fund has yet toassess the full impact of PFRS 9 and intends to adopt PFRS 9 upon completion of the IASB project.The Fund will also consider the impact of the remaining phases of PFRS 9 when issued.

There are no other standards, amendments or interpretations that are not yet effective that have amaterial impact on the Fund's financial statements.

2.2 Cash and cash equivalents

Cash and cash equivalents include deposits held at call with banks and other short-term highly liquidinvestments with original maturities of three months or less from date of acquisition.

2.3 Financial instruments

Date of recognition

Financial instruments are recognized in the statements of financial position when the Fund becomes aparty to the contractual provisions of the instrument. Purchases or sales of financial assets that requiredelivery of assets within the time frame established by regulation or convention in the marketplace arerecognized on the trade date.

Initial recognition of financial instruments

Financial instruments not carried at FVTPL are initially recognized at fair value plus transaction costs.Financial instruments carried at FVTPL are initially recognized at fair value, and transaction costs arerecognized as expense in profit or loss.

(3)

• I

Day 1profit

Where the transaction price in a non-active market is different from the fair value from otherobservable current market transactions in the same instrument or based on a valuation techniquewhose variables include only data from observable market, the Fund recognizes the difference betweenthe transaction price and fair value (a "Day 1" profit) in profit or loss unless it qualifies for recognitionas some other type of asset. In cases where variables are made of data which are not observable, thedifference between the transaction price and model value is only recognized in profit or loss when theinputs become observable or when the instrument is derecognized. For each transaction, the Funddetermines the appropriate method of recognizing the Day 1profit amount.

Classification of financial instruments

The Fund classifies its financial assets in the following categories: (a) financial assets at FVTPL,(b) held-to-maturity ("HTM"), (c) loans and receivables and (d) available-for-sale ("AFS"). The Fundclassifies its financial liabilities at FVTPL or as other financial liabilities at amortized cost. Theclassification depends on the purpose for which the financial instruments were acquired or incurredand whether they are quoted in an active market. Management determines the classification of theFund's financial instruments at initial recognition. The Fund does not hold any financial assets undercategory (b) and (d) at the end of each reporting period. The Fund does not hold any financial liabilitiesat FVTPL during and at the end of each reporting period.

Financial assets or financial liabilities at FVTPL

This category consists of financial assets or financial liabilities that are held for trading or designated bymanagement as at FVTPL on initial recognition. Derivatives instruments, except those covered byhedge accounting relationships (none as at reporting dates), are classified under this category.Financial assets or financial liabilities classified in this category are designated by management oninitial recognition when the following criteria are met:

• The designation eliminates or significantly reduces the inconsistent treatment that would otherwisearise from measuring the assets or liabilities or recognizing gains or losses on them on a differentbasis; or

• The assets and liabilities are part of a group of financial assets, financial liabilities or both which aremanaged and their performance evaluated on a fair value basis, in accordance with a documentedrisk management or investment strategy; or

• The financial instrument contains an embedded derivative, unless the embedded derivative doesnot significantly modify the cash flows or it is clear, with little or no analysis, that it would not beseparately recorded.

Financial assets at FVTPL are recorded in the statements of financial position at fair value, withchanges in the fair value recorded in profit or loss, included under Fair value gains (losses). Interestearned is recorded in Interest income in profit or loss. Gains or losses realized from sale of financialassets at FVTPL are recorded in Fair value gains (losses) in profit or loss.

• I

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that arenot quoted in an active market. They are not entered into with the intention of immediate or short-term resale and are not classified as financial assets held for trading, designated as AFS or FVTPL. Thisaccounting policy applies to cash and cash equivalents and accrued income.

After initial measurement, loans and receivables are subsequently measured at amortized cost usingthe effective interest rate method, less allowance for impairment, if any. Amortized cost is calculatedby taking into account any discount or premium on acquisition and fees that are an integral part of theeffective interest rate. The amortization is included in Interest income in profit or loss. The lossesarising from impairment of such loans and receivables are recognized in Provision for impairmentlosses in profit or loss.

Other financial liabilities at amortized cost

Issued financial instruments or their components, which are not designated as financial liabilities atFVTPL are classified as other financial liabilities, where the substance of the contractual arrangementresults in the Fund having an obligation either to deliver cash or another financial asset to the holder,or to satisfy the obligation other than by the exchange of a fixed amount of cash or another financialasset for a fixed number of the Fund's own equity shares.

After initial measurement, other financial liabilities are subsequently measured at amortized cost usingthe effectiveinterest rate method. Amortized cost is calculated by taking into account any discount orpremium on the issue and fees that are an integral part of the effective interest rate.

This accounting policy applies to accounts payable and accrued expenses (excluding taxes payable) anddue to PAM!.

Impairment of financial assets

The Fund assesses at each reporting date whether a financial asset or group of financial assets isimpaired.

A financial asset or a group of financial assets is deemed to be impaired if, and only if, there is objectiveevidence of impairment as a result of one or more events that has occurred after the initial recognitionof the asset (a "loss event") and that loss event (or events) has an impact on the estimated future cashflows of the financial asset or the group of financial assets that can be reliably estimated. Evidence ofimpairment may include indications that the debtor or a group of debtors is experiencing significantfinancial difficulty, default or delinquency in interest or principal payments, the probability that theywill enter bankruptcy or other financial reorganization and where observable data indicate that there isa measurable decrease in the estimated future cash flows, such as changes in arrears or economicconditions that correlate with defaults.

(5)

.'

Financial assets at amortized cost

For financial assets which are carried at amortized cost, the Fund first assesses whether objectiveevidence of impairment exists individually for financial assets that are individually significant, orcollectively for financial assets that are not individually significant. If the Fund determines that noobjective evidence of impairment exists for an individually assessed financial asset, whether significantor not, it includes the asset in a group of financial assets with similar credit risk characteristics such astype of borrower, collateral type, past-due status and term, and collectively assesses for impairment.Assets that are individually assessed for impairment and for which an impairment loss is, or continuesto be, recognized are not included in a collective assessment for impairment.

If there is objective evidence that an impairment loss has been incurred, the amount of the loss ismeasured as the difference between the asset's carrying amount and the present value of the estimatedfuture cash flows. The carrying amount of the asset is reduced through the use of an allowance accountand the amount of loss is charged to profit or loss. If, in a subsequent period, the amount of theestimated impairment loss decreases because of an event occurring after the impairment wasrecognized, the previously recognized impairment loss is reversed. Any subsequent reversal of animpairment loss is recognized in profit or loss, to the extent that the carrying value of the asset does notexceed its amortized cost had the impairment not been recognized at the reversal date.

The present value of the estimated future cash flows is discounted at the financial asset's originaleffective interest rate. Time value is generally not considered when the effect of discounting is notmaterial. If an instrument has a variable interest rate, the discount rate for measuring any impairmentloss is the current effective interest rate, adjusted for the original credit risk premium. The calculationof the present value of the estimated future cash flows of a collateralized financial asset reflects the cashflows that may result from foreclosure less costs for obtaining and selling the collateral, whether or notforeclosure is probable.

For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis ofsuch credit risk characteristics as type of debtor, past-due status and term.

Derecognition of financial assets and liabilities

Financial asset

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financialassets) is derecognized where:

• The right to receive cash flows from the asset has expired;• The Fund retains the right to receive cash flows from the asset, but has assumed an obligation to

pay them in full without material delay to a third party under a 'pass-through' arrangement; or• The Fund has transferred its right to receive cash flows from the asset and either (a) has

transferred substantially all the risks and rewards of the asset, or (b) has neither transferred norretained substantially all the risks and rewards of the asset, but has transferred control of the asset.

Where the Fund has transferred its right to receive cash flows from an asset and has neither transferrednor retained substantially all the risks and rewards of the asset nor transferred control of the asset, theasset is recognized to the extent ofthe Fund's continuing involvement in the asset.

(6)

..

Financial liability

A financial liability is derecognized when the obligation under the liability is discharged, or cancelled orhas expired.

Where an existing financial liability is replaced by another from the same lender on substantiallydifferent terms, or the terms of an existing liability are substantially modified, such an exchange ormodification is treated as a derecognition of the original liability and the recognition of a new liability,and the difference in the respective carrying amounts is recognized in profit or loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount is reported in the Fund'sstatements of financial position if, and only if, there is a currently enforceable legal right to offset therecognized amounts and there is an intention to settle on a net basis, or to realize the asset and settlethe liability simultaneously.

2.4 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date.

The fair value of a non-financial asset is measured based on its highest and best use. The asset's currentuse is presumed to be its highest and best use.

The fair value of financial and non-financial liabilities takes into account non-performance risk, whichis the risk that the entity will not fulfill an obligation.

There are no non-financial assets as at December 31, 2013 and 2012.

The fair value for financial instruments traded in active markets at the reporting date is based on theirquoted market price quotations, without any deduction for transaction costs. A market is regarded asactive if quoted prices are readily and regularly available from an exchange, dealer, broker, industrygroup; pricing service, or regulatory agency, and those prices represent actual and regularly occurringmarket transactions on an arm's length basis. When current bid and ask prices are not available, theprice of the most recent transaction provides evidence of the current fair value as long as there has notbeen a significant change in economic circumstances since the time ofthe transaction.

For all other financial instruments not listed in an active market, the fair value is determined by usingappropriate valuation techniques. Valuation techniques include net present value techniques,comparison to similar instruments for which market observable prices exist, option pricing models,and other relevant valuation models.

(7)

..

PFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to those valuationtechniques are observable or unobservable. Observable inputs reflect market data obtained fromindependent sources; unobservable inputs reflect the Fund's market assumptions. These two types ofinputs have created the following fair value hierarchy:

LeVell - Quoted prices (unadjusted) in active markets for identical assets or liabilities. This levelincludes listed equity securities and debt instruments on exchanges (for example, PhilippineStock Exchange, Inc., Philippine Dealing and Exchange Corp., etc.).

Level 2 - Inputs other than quoted prices included within Levell that are observable for the asset orliability, either directly (Le., as prices) or indirectly (Le., derived from prices).

Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservableinputs). This level includes equity investments and debt instruments with significantunobservable components.

The Fund's classification of its financial assets based on the above fair value hierarchy is presented inNote 3 to the financial statements.

2.5 Share capital

The Fund issues shares, which are redeemable at the holder's option and are classified as equity inaccordance with PAS 32, Financial Instruments: Presentation. Each share has the following featureswhich support the equity classification:

• It entitles the holder to a pro rata share of the Fund's net assets in the event of the entity'sliquidation;

• The share has no priority over other claims to the assets of the entity on liquidation, and it does notneed to be converted into another instrument before it is classified as such; and

• All shares impose a contractual obligation on the Fund to deliver a pro rata share of its net assetson liquidation.

In addition, the Fund has no other financial instrument or contract that has:

• total cash flows based substantially on the profit or loss, the change in the recognised net assets orthe change in the fair value of the recognized and unrecognised net assets of the Fund (excludingany effects of such instrument or contract); and

• the effect of substantially restricting or fixing the residual return to the shareholders.

Should the redeemable shares' terms or conditions change such that they do not comply with the strictcriteria as mentioned above, the redeemable shares would be reclassified to a financial liability fromthe date the instrument ceases to meet the criteria. The financial liability would be measured at theinstrument's fair value at the date of reclassification. Any difference between the carrying value of theequity instrument and fair value of the liability on the date of reclassification would be recognized inequity.

Redeemable shares can be put back to the Fund at any time for cash equal to a proportionate share ofthe Fund's trading NAV calculated in accordance with the Fund's regulations. Redeemed shares are notcancelled and may be reissued in the future.

(8)

.'

Share premium

Sales of shares are recorded by crediting Share capital at par value and Share premium for the amountreceived in excess of the par value; redemptions are recorded by debiting those accounts. In the eventthat the Share premium balance is exhausted as a result of redemptions, the Retained earnings accountis reduced by redemptions in excess of par. .

2.6 Revenue recognition

Interest income

Interest income is recognized on a time-proportion basis using the effective interest method. When areceivable is impaired, the Fund reduces the carrying amount to its recoverable amount, being theestimated future cash flows discounted at original effective interest rate ofthe instrument, and accretesthe discount as interest income. Interest income on impaired financial asset carried at amortized costis recognized using the original effective interest rate.

Other income

Other income is recognized when earned and the Fund's right to receive payment is established.

2.7 Expenses

Expenses are recognized in the year in which they are incurred.

2.8 NAV per share

NAV per share is computed by dividing net assets attributable to shareholders (total assets less totalliabilities) by the total number of shares issued and outstanding at the reporting date.

2.9 Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to shareholders of the Fund bythe weighted average number of shares outstanding during the year.

Diluted earnings per share is calculated by adjusting the weighted average number of sharesoutstanding to assume conversion of all dilutive potential shares. The number of shares calculated asabove is compared with the number of shares that would have been issued assuming the exercise of theshare options.

As at December 31, 2013 and 2012, there are no dilutive potential shares.

2.10 Taxation

The Fund is domiciled in the Philippines. Under the existing tax laws of the Philippines, a documentarystamp tax, included under Taxes and licenses in profit or loss, is payable by the Fund on original issueand subsequent sale or transfer of its redeemable shares.

The Fund has interest income from bank deposits and government securities which is subject to finalwithholding tax. Such income is presented at gross amount and the related final tax is presented as partof Income tax expense in profit or loss.

(9)

••

2.11 Current and deferred income tax

Income tax expense for the period comprises current and deferred tax. Tax is recognized in profit orloss, except to the extent that it relates to items recognized in other comprehensive income or directlyin equity, in which case, the tax is also recognized in other comprehensive income or directly in equity,respectively.

Current tax assets or liabilities comprise those claims from, or obligations to, fiscal authorities relatingto the current or prior reporting period, that are uncollected or unpaid at the end of reporting period.They are calculated using the tax rates and tax laws applicable to the fiscal periods to which they relate,based on the taxable profit for the year. All changes to current tax assets or liabilities are recognized asa component of income tax expense in profit or loss.

Deferred income tax ("DIT") is provided, using the liability method on temporary differences at the endof the reporting period between the tax bases of assets and liabilities and their carrying amounts forfinancial reporting purposes. Under the liability method, with certain exceptions, DIT liabilities arerecognized for all taxable temporary differences and DIT assets are recognized for all deductibletemporary differences and the carry-forward of unused tax losses (net operating loss carry over orNOLCO) and unused tax credits (excess of minimum corporate income tax or MClT) to the extent thatit is probable that taxable profit will be available against which the DIT asset can be utilized.

DIT liabilities are recognized in full for all taxable temporary differences, except to the extent that theDIT liability arises from the initial recognition of goodwill.

The carrying amount of DIT asset is reviewed at each reporting period and reduced to the extent that itis probable that sufficient taxable profit will be available to allow all or part of the DIT asset to beutilized. The Fund reassesses at each reporting date the need to recognize a previously unrecognizeddeferred income tax asset.

DIT assets and liabilities are measured at the tax rates that are expected to apply to the period when theasset is realized or the liability is settled provided such tax rates have been enacted or substantivelyenacted at the end of the reporting period.

DIT assets and liabilities are offset when there is a legally enforceable right to offset current tax assetsagainst current tax liabilities and when the DIT assets and liabilities relate to income taxes levied by thesame taxation authority and where there is an intention to settle the balances on a net basis.

2.11 Related party relationships and transactions

Related party relationship exists when one party has the ability to control, directly, or indirectlythrough one or more intermediaries, the other party or exercises significant influence over the otherparty in making financial and operating decisions. Such relationship also exists between and/or amongentities which are under common control with the reporting enterprise, or between, and/or among thereporting enterprise and its key management personnel, directors, or its shareholders. In consideringeach possible related party relationship, attention is directed to the substance of the relationship, andnot merely the legal form.

(10)

.'.

2.12 Functional and presentation currency

(a) Functional and presentation currency

Subscriptions and redemptions of the Fund's redeemable shares are denominated in United StatesDollar (US Dollar). The performance of the Fund is measured and reported to the investors in USDollar. The BOD considers the US Dollar as the currency that most faithfully represents the economiceffects of the underlying transactions, events and conditions. The financial statements are presented onUS Dollar, which is the Fund's functional and presentation currency.

(b) Foreign exchange transactions

Transactions in foreign currencies are initially recorded in the functional currency rate at the date ofthe transaction. Monetary assets and liabilities denominated in foreign currencies are translated at thefunctional currency rate of exchange at the reporting date. Exchange gains or losses arising fromforeign exchange transactions are credited to or charged against Foreign exchange gains (losses) inprofit or loss.

(c) Translation of usDollar balances to Philippine Peso

The financial statements include comparative figures in Philippine Peso for adilitional informationpurposes only.

The Fund's US Dollar-denominated financial statements are translated to the Philippine Peso using thefollowing procedures:

a. Assets and liabilities reported in the statements of financial position are translated at closingexchange rate ofP43.40 to US$1 (2012 - P41.05 to US$1) as at the reporting date;

b. Revenue, expenses, gains and losses reported in profit or loss in the statements of totalcomprehensive income are translated at annual weighted average exchange rate of P42.43 to US$1(2012 - P42.24 to US$1; 2011- P43.31 to US$1) as at the reporting date; and

c. Share capital is translated at historical exchange rate.d. The resulting translation adjustment is presented as a separate component of equity in the

Philippine Peso statement of financial position.

2.13 Events after the reporting date

Post year-end events that provide additional information about the Fund's financial position atreporting date (adjusting events) are reflected in the financial statements. Post year-end events thatare not adjusting events are disclosed in the notes to financial statements when material.

(11)

.'

Note 3 - Capital and financial risk management

3.1 Governance framework

The primary objective of the Fund's risk and financial management framework is to protect the Fundfrom events that hinder the sustainable achievement of the Fund's performance objectives, includingfailing to exploit opportunities. The Fund recognizes the critical importance of having efficient andeffective risk management systems in place.

BOD has approved the Fund's risk management policies and meets regularly to approve on anycommercial, regulatory and own organizational requirements in such policies. The policies define theFund's identification of risk and its interpretation, limit structure to ensure the appropriate quality anddiversification of assets, alignment of investment strategy to the corporate goals and specify reportingrequirements.

3.2 Capital management

The Fund's objectives for managing capital are: (a) to invest the capital in investments meeting thedescription and risk exposure indicated in its prospectus; (b) to achieve consistent returns whilesafeguarding capital; and (c) to maintain sufficient liquidity to meet the expenses of the Fund and tomeet redemption requests as they arise.

As provided by Investment Company Act of 1960, the Fund's minimum required capitalizationamounts to US$1.1 million (P50.0 million) translated using the closing exchange rate. The Fund'scapitalization is more than the required by the SEC.

The Fund considers the net assets attributable to shareholders as its capital (or total equity as shown inthe statements of financial position). As at December 31, 2013 and 2012, the net assets attributable toshareholders amounted to US$66,925 thousand (P2,971,135 thousand) and US$79,785 thousand(P3,275,174 thousand), respectively (Note 8).

3.3 Regulatory framework

The operations of the Fund are also subject to the regulatory requirements of the SEC. Suchregulations not only prescribe approval and monitoring of activities but also impose certain restrictiveprovisions. Unless ordered otherwise by the SEC, the Fund shall not sell securities short or invest inany ofthe following:

a. margin purchase of securities (investments in partially paid shares are excluded);b. commodity future contracts;c. preciousmetals;d. unlimited liability investments;e. short selling of currencies;f. short selling of investments; andg. other investments as the SEC shall, from time to time prescribe.

Any changes in the Fund's investment objective should be with notice and prior approval of the SEC.An investment company shall not change its investment objective without the approval from themajority of the Fund's shareholders.

(12)

.,

In addition, the SEC also provides maximum limits on exposure to counterparties, maintenance of acertain level of liquid assets and conditions for incurring borrowings (Note 3.5).

The Fund is fully compliant with regulatory requirements as at December 31,2013 and 2012.

3.4 Financial instruments

The following table sets forth the carrying values and estimated fair values of financial assets andliabilities recognized as at December 31:

In thousands ofUS Dollars

Carrying value Fair value

in thousands ofPhilippine Pesos


In thousands ofUS Dollars


In thousands ofPhilippine Pesos


At December 31,2013Loans and receivables

Cash and cash equivalentsAccrued incomeTotal loans and receivables

Financial assets at FVTPLTotal financial assetsFinancial liabilities

Accounts payable and accrued expenses(excluding taxes payable)

Due to PAMITotal financial liabilities

At December 31, 2012Loans and receivables

Cash and cash equivalentsAccrued incomeTotal loans and receivables

Financial assets at FVTPLTotal financial assetsFinancial liabilities

Accounts payable and accrued expenses(excluding taxes payable)


5,6811,1296,810

60,51567,325

260126386

3,1111,2524,363

75,78480,147

230112342

5,6811,1296,810

60,51567,325

260126386

3,1111,2524,363

75,78480,147

230112342

252,20850,122

302,3302,686,5632,988,893

11,5705,594

17,164

127,70751,395

179,1023,110,9333,290,035

9,2904,598

13,888

252,20850,122

302,3302,686,5632,988,893

11,5705,594

17,164

127,70751,395

179,1023,110,9333,290,035

9,2904,598

13,888

Due to the short-term nature of cash and cash equivalents, accrued income, accounts payable andaccrued expenses (excluding taxes payable) and due to PAMI, their carrying values reasonablyapproximate fair values at year end.

The fair value of financial assets at FVTPL that are actively traded in organized financial markets isdetermined by reference to quoted market bid prices, at the close of business on the reporting date.

.'

3.5 Financial risk

The Fund's portfolio shall be invested in US Dollar-denominated fixed-income instruments includingbut not limited to government securities, Bangko Sentral ng Pilipinas ("BSP") certificate ofindebtedness, other government securities or bonds and such otber evidence of obligations issued bythe BSP or guaranteed by the Philippine Government issued locally and abroad. The Fund shall alsoinvest in debt instruments issued by foreign governments and corporations tbat are determined asfinancially sound and approved by the Investment Committee of the Fund manager. However,investments should be consistent with tbe government regulations on offshore investments. The Fundshall likewise invest in US Dollar-denominated savings deposits, time deposits and other depositsubstitutes transacted with commercial banks and financial institutions that are pre-approved by theBOD oftbe Fund manager.

The Fund is exposed to financial risk through its financial assets. The most important components arecredit risk, liquidity risk and market risk.

These risks arise from open positions in interest rate securities, all of which are exposed to general andspecific market movements.

Credit risk

Credit risk is the risk tbat one party to a financial instrument will fail to discharge an obligation andcause the other party to incur a financial loss.

The Fund manages the level of credit risk it accepts tbrough setting up of exposure limits by eachcounterparty or group of counterparties. Effective July 2013, the maximum investment of the Fund inany single enterprise shall not exceed an amount equivalent to fifteen percent (15%) of tbe Fund's NAVexcept obligations of tbe Philippine government or its instrumentalities, provided tbat in no case shallthe total investment of tbe Fund exceeds ten percent (10%) of tbe outstanding securities of anyoneinvestee company. The Fund also transacts only witb institutions with high credit rating or standing.

In addition, the Fund manages the level of credit risk it accepts tbrough reporting of credit riskexposures, monitoring compliance witb credit risk policy and review of credit risk policy for pertinenceand changing environment. The Fund cannot lend to individual borrowers.

The Fund manager's high grade credit process combines top down and bottom up elements reflectingtbe observation tbat tbe weaker the credit quality, the more security specific risk comes to dominateoverall portfolio risk. The bottom up element focuses on the analysis of individual credits. The topdown element focuses on the analysis of sectors. In order to manage risk, tbe high-grade portfolioscombine diversification rules with a number of filters designed to help avoid downgrade and defaultcandidates. Key to tbe Fund's credit process is tbe minimization of the impact from security default ordowngrade.

.'.

The following table provides information regarding the maximum credit risk exposure and creditquality of financial assets of the Fund:

Aaa-Aa3*In thousands In thousandsof US Dollars of Pesos

Baa2-Baa3*In thousands In thousandsof US Dollars of Pesos

At December 31,2013Cash and cash equivalentsFinancial assets at FVTPLAccrued income

3872,738

183,143

17,181121,554

799139,534

3542,337

87243,244

1,5541,879,551

38,7121,919,817

A1-Aa3*In thousands In thousandsof US Dollars of Pesos

Ba1*In thousands In thousandsof US Dollars of Pesos

At December 31,2012Cash and cash equivalentsFinancial assets at FVTPLAccrued income

'Based on Moody's rating.

860

860

35,323

35,323

6965,336

1,09966,504

2,8392,682,039

45,1242,730,002

At December 31, 2013, corporate bonds classified as financial assets at FVTPL and accrued incomeamounting to US$2,933 thousand (2012 - US$1,042 thousand) and US$34 thousand (2012 - US$17thousand) are rated Aaa by Philratings while the remaining balances are not rated. Unratedcounterparties however, have no history of default.

Cash and cash equivalents are maintained with universal banks to minimize credit risk exposure. Theother financial assets are considered by the Fund as having investment grade credit quality, whereinthe counterparties are assessed to possess strong to very strong capacities to meet their obligations.

There are no collaterals held as security and other credit enhancements attached to financial assets asat December 31,2013 and 2012.

As at December 31, 2013 and 2012, there are no past due or impaired financial assets.

Liquidity risk

Liquidity or funding risk is the risk that the Fund will encounter difficulty in raising funds to meetcommitments associated with financial instruments. Liquidity risk may result from either the inabilityto sell financial assets quickly at their fair values; or counterparty failing on repayment of a contractualobligation; or inability to generate cash inflows as anticipated.

The Fund is exposed to daily cash redemptions of its issued shares. It therefore invests the majority ofits assets in investments that are traded in an active market and can be readily disposed of.

..

The Fund manages liquidity through specifying minimum proportion of funds to meet emergency calls.Unless otherwise prescribed by the SEC, at least five percent (5%) of the fund shall be invested inliquid/semi-liquid assets effective July 2013 such as:

a. Treasury notes or bills, BSP certificate of indebtedness which are short-term, and othergovernment securities or bonds and such other evidences of indebtedness or obligation, theservicing and repayment of which are fully guaranteed by the Republic of the Philippines.

b. Savings or time deposits with government-owned banks or commercial banks, provided that in nocase shall any such savings or time deposits account be accepted or allowed under a "bearer","numbered" account or other similar arrangement.

The Fund may not incur any further debt or borrowings unless at the time of its occurrence orimmediately thereafter, there is an asset coverage of at least 300% for all its borrowings. In the eventthat such asset coverage shall fall below 300%, the Fund shall, within three days thereafter, reduce theamount of borrowings to an extent that the asset coverage of such borrowings shall be at least 300%.The Fund has not breached the said asset coverage requirement as at December 31,2013 and 2012.

In addition, the Fund manages liquidity through reporting ofliquidity risk exposures, monitoringcompliance with liquidity risk policy and review of liquidity risk policy for pertinence and changingenvironment.

The table below analyzes the assets and liabilities of the Fund into their relevant maturity groups usingthe undiscounted amounts based on the remaining period at the reporting date to their contractualmaturities or expected repayment dates.

December 31,2013

2,428 12,063 56,4052,004 7,925 13,8321,129

11,242 19,988 70,237

260126386

Cash and cash equivalentsFinancial assets at FVTPL (including interest)Government securitiesCorporate bonds

Accrued incomeTotal financial assetsAccounts payable and accrued expenses(excluding taxes payable)


(16)

Up to a year'5,681

In thousands of US Dollars2-5 years Over 5 years Total

5,681

70,89623,761

1,129101,467

260126386

.'

Total252,208

3,147,4281,054,870

50,1224,504,628

2,504,100614,072

3,118,172

535,537351,830

887,367

107,79188,96850,122

499,089

In thousands of Philippine PesosUp to a year" 2-5 years Over 5 years

252,208Cash and cash equivalentsFinancial assets at FVTPL (including interest)

Government securitiesCorporate bonds

Accrued incomeTotal financial assetsAccounts payable and accrued expenses

(excluding taxes payable) 11,570 11,570Due to PAMI 5,594 5,594Total financial liabilities 17,164 17,164"Up tDa year are all assets/cDmmitments which are either due within the time frame Drare cDllectible/payableDndemand.

December 31, 2012

3,248 15,600 79,698583 7,512 4,485

1,2528,194 23,112 84,183

230112342

Cash and cash equivalentsFinancial assets at FVTPL (including interest)



(excluding taxes payable)Due to PAMI

. Total financial liabilities

Up to a year"3,111

In thousands of US Dollars2-5 years Over 5 years Total

3,111

98,54612,580

1,252115,489

230112342

Total127,707

4,045,313516,409

. 51,3954,740,824

3,271,603184,109

3,455,712948,748

640,380308,368

133,33023,93251,395

336,364

In thousands of Philippine PesosUp to a year" 2-5 years Over 5 years

127,707Cash and cash equivalentsFinancial assets at FVTPL (including interest)



(excluding taxes payable) 9,290 9,290Due to PAMI 4,598 4,598Total financial liabilities 13,888 13,888• Up tDa year are all assets/cDmmitments which are either due within the time frame Drare cDllectible/payableon demand.

. '

Market risk

Market risk is the risk of change in fair value of financial instruments from fluctuation in foreignexchange rates (currency risk), market interest rates (fair value interest rate risk) and market prices(price risk), whether such change in fair value is caused by factors specific to the individual instrumentor its issuer or factors affecting all instruments traded in the market.

The Fund structures levels of market risk it accepts through a market risk policy that determines whatconstitutes market risk for the Fund; basis used to fair value financial assets and liabilities; sets out thenet exposure limits by each counterparty or group of counterparties and industry segments; reportingof market risk exposures; monitoring compliance with market risk policy and review of market riskpolicy for pertinence and changing environment:

Currency risk

Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuatebecause of changes on foreign exchange rates. Since the transactions of the Fund are generally carriedout in its functional currency, its exposure to currency risk is minimal.

Fair value interest rate risk

Fair value interest rate risk is the risk that the value/future cash flows of a financial instrument willfluctuate because of changes in market interest rates.

Floating rate instruments expose the Fund to cash flow interest risk, whereas fixed interest rateinstruments expose the Fund to fair value interest rate risk. The Fund's fixed rate investments, whichare classified as financial assets at FVTPL, are exposed to fair value interest rate risk.

The Fund's market risk policy requires it to manage the maturities of interest bearing financial assetsand financial liabilities.

The following table shows the information relating to the Fund's financial instruments that are exposedto fair value interest rate risk presented by maturity profile.

December 31,2013

Range of ratesIn thousands of US Dollars

Up to a year 2-5 years Over 5 years Total

Financial assets at FVTPLGovernment securitiesCorporale bonds

1.750%-10.625%4.250%-8.350% 1.020

3,4834,832

39.88511.295

43,36817,147

Range of ralesIn thousands of Philippine PesosUp 10 a year 2-5 years Over 5 years Total

Financial assels al FVTPLGovernment securitiesCorporate bonds

(18)

1.750%-10.625%4.250%-8.350% 45,283

154,627214,518

1.770.695501.440

1,925.322761,241

Inthousands of US DollarsUpto a year 2-5 years Over 5 years

..

December 31, 2012

Financial assets at FVTPLGovernment securitiesCorporate bonds

Range of rates

4.000%-10.625%4.250%-8.350%

3,7286,070

61,6084,378

Total

65,3,3610,448

Range of ratesInthousands of PhilippinePesosUpto a year 2-5 years Over 5 years Total

Financial assets at FVTPLGovernment securitiesCorporate bonds

4.000%-10.625%4.250%-8.350%

153,034249,174

2,529,008179,717

2,682,042428,891

The analysis below is performed for reasonably possible movements in interest rate with all othervariables held constant, showing the impact on post-tax profit.

December 31,2013

December 31, 2012

Changes ininterest rate

+1%-1%+1%-1%

Impact on post-tax profitIncrease (decrease)

In thousands of In thousands ofUS Dollars Pesos

(4,461) (189,278)5,073 215,245(6,886) (282,670)7,985 327,784

As at December 31, 2013 and 2012, the Fund determined the reasonably possible change in interestrates using the percentage changes in weighted average yield rates of outstanding securities for the pastthree years.

Price risk

Price risk relates to financial assets and liabilities whose values will fluctuate as a result of changesin market prices, principally of equity securities. The Fund has no exposure to price risk as atDecember 31, 2013 and 2012.

Fair value hierarchy

The Fund's financial assets at FVTPL as at December 31, 2013 and 2012 amounting to US$60,515thousand (P2,686,563 thousand) and US$75,784 thousand (P3,1l0,933 thousand), respectively, are allclassified under Levell.

The fair value of government and corporate securities were obtained from Bloomberg.

The Fund has no financial assets that fall under the Level 2 and 3 categories. There are also no financialliabilities measured at fair value as at December 31, 2013 and 2012.

..

Note 4 - Critical accounting judgments in applying accounting policies

Judgments used in preparing the financial statements are continually evaluated and are based onhistorical experience and other factors, including expectations of future events that are believed to bereasonable under the circumstances. The accounting judgment that has a significant risk of causing amaterial adjustment to the carrying amounts of assets within the next financial year is discussed below.

Unrecognized DIT assets

DIT asset from NOLCO has not been recognized because the Fund believes that there will be no futuretaxable profit against which benefit from NOLCO can be utilized. The Fund assesses the unrecognizedDIT assets and will recognize a previously unrecognized DIT asset to the extent that it has becomeprobable that future taxable income will allow the DIT assets to be recovered.

As at December 31, 2013 and 2012, unrecognized DIT asset from NOLCO amounts to US$646thousand (P28,666 thousand) and US$996 thousand (P40,866 thousand), respectively (Note 11).

Note 5 - Cash and cash equivalents

The account at December 31 consists of:

Inthousandsof US Dollars

4695.2125,681


1,0622,0493,111


5938,8559,448

Cash in banksShort-term time deposits

2013Inthousandsof PhilippinePesos20,821231,387252,208

2012In thousandsof PhilippinePesos43,59684,111127,707

2011Inthousandsof PhilippinePesos25,985388,224414,209

Cash in banks earn interest at prevailing bank deposit rates, Short-term time deposits have averagematurity of 10 to 35 days (2012 - 30 days; 2011 - 30 days) and carry effective interest rate of 0.75% to1,75% (2012 - 0.75%; 2011- 0.02% to 0.50%). The related interest earned from cash and cashequivalents is disclosed in Note 9.

Note 6 - Financial assets at fair value through profit or loss


In thousandsof US Dollars

43,36817,14760,515


65,33610,44875,784

Government bondsCorporate bonds

(20)

2013In thousandsof PhilippinePesos1,925,322

761,2412,686,563

2012In thousandsof PhilippinePesos2,682,043

428,8903,110,933

" "

The movements in financial assets at FVTPL are summarized as follows:

2012In thousandsof Philippine

Pesos2,655,523

11,787,206(11,208,555)

(10,095)73,873

(187,019)3,110,93375,784


60,574279,071(265,371 )

(239)1,749(211,936)

223,4882,686,563


Pesos3,110,9333,010,592

(3,446,514)

(4,995)

60,515


75,78470,955(81,229)

At January 1AdditionsDisposalsMaturitiesUnrealized fair value (losses) gains, netForeign currency translation adjustmentsAt December 31

The net Ooss) gain on financial assets at FVTPL for the years ended December 31 is summarized asfollows:

2013 2012 2011

Inthousands In thousands In thousandsIn thousands of Philippine Inthousands of Philippine In thousands of Philippineof US Dollars Pesos of US Dollars Pesos of US Dollars Pesos

Realized (losses) gains, net (4,633) (196,576) 4,126 174,271 296 12,956Unreaiized (losses) gains, net (4,995) (211,936) 1,749 73,873 (212) (9,297)

(9,628) (408,512) 5,875 248,144 84 3,659

Note 7 -Accounts payable and accrued expenses


Accounts payableAccrued expenses


22351

274


Pesos9,9002,264

12,164


21634

250


Pesos8,8671,396

10,263

Accounts payable includes payable to investors due to redemptions that have been contracted for butnot yet settled as at reporting date and taxes payable.

Accrued expenses includes fund accounting fees, which represent amount payable to Deutsche Bank forfund accounting services (Note 13).

.'

Note 8 - Net assets attributable to shareholders

The details of the account at December 31 are as follows:

(914,939)2,150,4943,203,744

1,968,189

34,15373,078

38,9251,902,100

(1,095,929)2,469,0033,275,174

41,74379,785

38,042

2012 2011In thousands In thousands

In thousands of Philippine In thousands of Phiiippineof US Dollars Pesos of US Dollars Pesos

1,779,533

(851,450)2,043,0522,971,135

35,221

31,70466,925

2013In thousands


Share capital - P50 par value; US$1Authorized - 200,000,000 sharesIssued and outstanding

Foreign currency translationadjustments

Retained earnings

The movements in the number of issued and outstanding shares follow:

Issued and outstanding, January 1Issuances of sharesRedemptions of sharesIssued and outstanding, December 31

201338,041,5653,823,434(6,643,873)35,221,126

201238,924,8206,072,577(6,955,832)38,041,565

201143,568,7986,209,656

(10,853,634)38,924,820

As at December 31, 2013, the Fund has 3.457 shareholders (2012 - 3,674 shareholders).

Earnings per share at December 31 are computed as follows:

2013 2012 2011In In In

thousands thousands thousandsIn thousands of Philippine In thousands of Philippine In thousands of Philippineof US Dollars Pesos of US Dollars Pesos of US Dollars. Pesos

(7,507) (318,519) 8,267 349,176 2,625 113,699Net (loss) profit for the yearWeighted average number of shares

outstanding during the year(in thousands)

(Loss) eamings per share37,023(0.2028)

37,023(8.6033)

37,6190.2198

37,6199.2819

41,4200.0634

41,4202.7450

...•

NAVper share is computed as follows:

2013In thousands


2012In thousands


2011In thousands


Net assets attributable toshareholders (or total equity) 66,925 2,971,135 79,785 3,275,174 73,078 3,203,744

Number of shares outstanding(inthousands) 35,221 35,221 38,042 38,042 38,925 38,925

NAVper share 1.9001 84.3569 2.0973 86.0936 1.8774 82.3056

In compliance with the SRC, the Fund is required to file registration statements for each instance ofincrease in authorized shares. The table below shows the Fund's track record of registration ofsecurities under the SRC:

SEC approval dateSeptember 5, 2001

June 25, 2004

Number of shares140,000,00060,000,000

Par valueP50P50

Issue or offer price is equivalent to the NAVper share at the time of issuance.

Note 9 - Interest income

The Fund's interest income for the years ended December 31 are derived from:

Financial assets at FVTPLCash and cash equivalentsHTM investments

2013In thousands


3,527 149,64988 3,734

3,615 153,383

2012In thousands


3,771 159,27731 1,3099 380

3,811 160,966

2011Inthousands


3,931 170,25870 3,03247 2,035

4,048 175,325

The Fund invested in short-term corporate bonds in 2011 classified as HTM investments whichmatured on January 20, 2012.

."

Note 10 - Fees and other charges

The details of the account for the years ended December 31 follow:

Transfer chargesMarketingfeesFees to custodian bankAdministrationfeesProfessional feesDirectors' fees

2013Inthousands

Inthousands of Philippineof US Dollars Pesos

37 1,57033 1,40021 89120 84916 67910 424137 5,813

2012Inthousands


19 8037 29511 46521 8879 3806 25373 3,083

2011Inthousands


47 2,01020 85918 77121 92113 57022 969141 6,100

•

Transfer charges pertain to the fees paid to the transfer agent bank for the record keeping of individualshareholdings and the issuance and cancellation of stock certificates.

Fees to custodian bank pertain to amounts paid to the custodian bank for the safekeeping of thesecurities, arranging settlement of any purchases and sales and collecting information on and incomefrom such assets.

Administration fees are the amounts paid to the Fund's accountant for services rendered which include,among others, the preparation and maintenance of books of accounts and computation ofNAV(Note 13).

Professional fees include charges for audit and legal services provided to the Fund.

Directors' fees pertain to per diem received by each director and allocation for bonuSes .

••

Note 11 - Income tax

Income tax expense represents final tax withheld from interest income earned from cash and cashequivalents, financial assets at FVTPL and HTM investments.

Details of the Fund's NOLCO which is available for offset against future taxable income follow:

Income tax rate.Unrecognized DIT asset

Unrecognized DIT asset (in thousands of US Dollars)

36,61033,95465,72361,224197,511(61,224)136,287

30%40,886

996

161,276(65,723)95,553

30%28,666

646

2013 2012(In thousands of Philippine Pesos)

24,98936,61033,95465,723

20162015201420132012

Year of expiration

20132012201120102009

Year of incurrence

Expired NOLCO

The reconciliation of the income tax expense computed at statutory income tax rate to the effectiveincome tax rate follows: .

2013 2012 2011Statutory income tax rate 30.00% 30.00% 30.00%Tax effects of:

Income exempt from tax 10.52 (21.29) (0.96)Income subject to final tax 0.26 (11.83) (37.78)Unrecognized DIT asset (2.36) 3.14 8.94Non-deductible losses (38.51 )

Effective income tax rate (0.09%) 0.02% 0.20%

Note 12 - Related party transactions

The Fund has a management and distribution agreement with PAMI, whereby the latter is appointed asthe Fund's investment manager. PAMI also functions as the principal distributor of the Fund. As such,it takes charge of the sales of the Fund shares to prospective investors.

••

The table below summarizes the Fuud's trausactious and balances with PAM!.

Transactions(Charges to profit Of loss)

In thousands In thousandsof US Dollars of Pesos

Outstanding balance(Due to PAMI)

In thousands In thousandsof US Dollars of Pesos

Outstanding balance'stenns and conditions

Management feesFund managerDecember 31, 2013December 31,2012December 31,2011

1,2411,2811,299

52,65554,10656,275

12611292

5,5944,5984,053

Management fees arecomputed as one-eighth (1/8)of one percent (1%) of theNAV per month determinedon a daily basisOutstanding balance ispayable in cash within thefollowing month,unguaranteed and unsecuredand non-interest bearing

Note 13 - Fund accounting services

On July 1, 2008, the Fund and Deutsche Bank entered into a fund accounting agreement whereinDeutsche Bank shall perform administrative functions, which include, among others, the preparationand maintenance of books of accounts and computation ofNAV. As compensation for servicesrendered, Deutsche Bank shall be entitled to an administration fee equivalent to 0.0275% per annumbased on the NAV of the Fund.

Administration fees for the year ended December 31, 2013 amounted to US$20 thousand(P849 thousand) [2012 - US$21 thousand (P887 thousand); 2011 - US$21 thousand (P921 thousand)).As at December 31, 2013, administration fees payable to Deutsche Bank included in Accounts payableand accrued expenses amounted to US$S thousand (P222 thousand) [2012 - US$4 thousand (P1S1thousand)] (Note 7).

Note 14 - Supplementary information required by the Bureau ofInternal Revenue (BIR)

The following information is presented for purposes of filing with the BIR and is not a required part ofthe basic financial statements. All amounts are in thousands of Philipine Pesos.

(aJ Supplementary iriformation required by Revenue Regulations No. 15-2010

Below is the additional information required by RR No. 15-2010 that is relevant to the Fund.

(i) All other local and national taxes

All other local and national taxes paid and accrued for the year ended December 31, 2013consist of:

Paid Accrued TotalMunicipal taxes & mayor's permit 2,107 2,107Documentary stamp tax 946 10 956Community tax 1 1

3,054 10 3,064

(26)

."

The above local and national taxes are charged under Taxes and licenses account in profit or loss inthe statements of total comprehensive income.

Accrued documentary stamp tax as at December 31, 2013 is included under Accounts payable andaccrued expenses in statements offinan~ial position.

(ii) Withholding taxes

Withholding taxes paid and accrued for the year ended December 31,2013 consist of:

Expanded withholding taxPaid6,854

Accrued584

Total7,438

Accrued expanded withholding tax as at December 31, 2013 is included under Accounts payableand accrued expenses in the statements of financial position.

(iii) Tax assessments and cases

As at December 31, 2013, taxable years 2012, 2011 and 2010 are open for tax examinations.

The Fund has no pending tax cases as at December 31, 2013.

(b) Supplementary information required by Revenue Regulations No. 19-2011

Below is the additional information required by RR No. 19-2011 that is relevant to the Fund for theyear ended December 31, 2013.

(i) Sales/receipts/fees

The Fund's interest income on corporate bonds amounting to P32,246 thousand is subject to theregular tax rate of 30%. Interest income on cash and cash equivalents is subject to final tax rate of20%. Interest income on government bonds denominated in us Dollar is exempt from tax.

There are no other sales, receipts and fees subject to special tax rates.

(ii) Cost of services

Direct chargesManagement feesTransfer agent feesDocumentary stamp taxFees to custodian bankAdministration feesTotal cost of services

There are no direct costs subject to special tax rates.

Deductible amount52,6551,570956891849

56,921

(iii) Non-operating and taxable other income

There are no non-operating and taxable other income subject to regular and special tax rates.

(iv) Itemized deductions

NatureTaxes and licenses feesMarketing feesPostage and mailingProfessional feesDirectors' feesRealized foreign exchange lossBank chargesOther expensesTotal expenses

There are no itemized deductions subject to special tax rates.

(v) Taxes and licenses

Deductible amount2,1081,4008066794244242

6706,171

The details of the Fund's taxes and licenses are presented in section (a) of this note.

(vi) Other information

All other information prescribed to be disclosed by the BIR has been included in this note.

.'


Reconciliation of Retained EarningsAvailable for Dividend Declaration

December 31, 2013(All amounts in thousands ofDS Dollars)

Una ro riated Retained EarninAd"ustments:Una ro riated Retained EarninNet loss during the periodLess: Non-actual/unrealized income, net of tax

• Equity in net income of associate/joint venture• Unrealized foreign exchange gain - net (except those attributable to Cash

and Cash Equivalents)• Unrealized actuarial gain• Fair value adjustment (M2M gains)• Fair value adjustment of Investment Property resulting to gain• Adjustment due to deviation from PFRS/GAAP - gain• Other unrealized gains or adjustments to the retained earnings as a result

of certain transactions accounted for under the PFRSAdd: Non-actual losses

• Depreciation on revaluation increment (after tax)• Adjustment due to deviation from PFRS/GAAP - loss• Loss on fair value adjustment of investment property (after tax)

Net loss actual/realizedUna ro riated Retained Earnin s, as ad"usted, endin

Amount41,743

41,743(7,507)

7,50734,236

, ,

Philam Dollar Bond Fund, Inc.Schedule A - Financial Assets

December 31, 2013(Allamounts in USDollars)

Name of Issuing entityand association of each issue

Government bonds

ROP 30 ISIN US718286AY36 9.5% DUE 02FEB30

ROP34 ISIN US718286BG11 6.375% DUE 230CT34

ROP 21 US718286BK23 4% DUE 15JAN21

ROP 311SIN US718286BB24 7.75% DUE 14JAN31ROP 20 US718286BF38 6.5% DUE 20JAN20

ROP 37 ISIN US718286BW60 5.00% DUE 13JAN37

ROP 24 ISIN US718286AL 159.5% DUE 210CT24

ROP 19 NISIN US718286BE62 8.375% DUE 17JUN19

ROP 32 ISIN US718286BD89 6.375% DUE 15JAN32ROP 16 NEW ISIN US718286BA41 8.0% DUE 15JAN16

REPUBLIC OF INDONESIA 4.625% DUE 15APR43ROP 17 US718286AQ02 9.375% DUE 18JAN17

ROP 26 US718286BN61 5.5% DUE 30MAR26REPUBLIC OF KOREA 3.875% DUE 11SEP23US TREASURY NOTE 1.75% DUE 15MAY23

REPUBLIC OF INDONESIA 5.25% DUE 17JAN42US TREASURY NOTE 2.875% DUE 15MAY43ROP 25 US718286AP29 10.625% DUE 16MAR25

Corporate bondsCB FGEN USD 10Y DUE 090CT23CB SM PHIL 5.5% DUE 130CT17CB ICT 10YR USD BONDS 7.375% DUE 17MAR20

CB SMIC 4.25% DUE 170CT19

CB PLDT 8.350% DUE06MAR17JGSH PHIL LTD 4.375% DUE 23JAN23CB SMIC 10YR USD BONDS 6% DUE 22SEP14CB ICTSI TREASURY BV 4.625% DUE 16JAN23

Face value Inumber of

shares

4,000,000

3,500,0004,000,000

3,000,000

3,000,000

3,000,000

2,100,0002,000,000

2,000,000

2,000,0002,000,000

1,000,0001,000,000

1,000,000

1,000,0001,000,000

1,000,000505,000

37,105,000

5,000,000

3,000,0002,000,0002,000,000

1,500,0001,500,0001,000,0001,000,000

Amountshown in

the balancesheet

6,007,500

4,160,625

4,135,000

3,963,750

3,526,8753,120,000

2,997,750

2,550,000

2,343,0002,260,000

1,605,0001,223,125

1,102,500

1,019,862

903,535860,000

814,718775,175

43,368,416

4,874,0503,125,310

2,217,3001,913,180

1,707,0901,370,2201,019,850

919.370

17,146,370

60,514,786

Value basedon marketquotation

6,007,500

4,160,625

4,135,000

3,963,7503,526,875

3,120,000

2,997,750

2,550,0002,343,000

2,260,000

1,605,0001,223,125

1,102,500

1,019,862

903,535860,000

814,718775,175

43,368,416

4,874,050

3,125,3102,217,3001,913,180

1,707,0901,370,2201,019,850

919,370

17,146,370

60,514,786

Notes:(a) The Fund's financial assets refer to financial assets at fair value through profit or loss in the

statements of financial position.(b) Total income received and accrued from financial assets at fair value through profit or loss

amounts to US$3,527,019 for the year ended December 31, 2013.

Philam Dollar Bond Fund, Inc.Schedule H - Capital Stock

December 31, 2013

Titles of IssueRedeemable shares

Number ofshares

authorized200,000,000

Number of shares issuedand outstanding asshown under relatedbalance sheet caption

35,221,126

Number of sharesreserved for options,warrants, conversion

and other rights

Number of sharesheld by related

parties16,610

Directors, officersand employees

Philam Dollar Bond Fund Inc.(An Open-End Mutual Fund Company)

Schedule of Philippine Financial Reporting Standardseffective as at December 31, 2013

PHILIPPINE FINANCIAL REPORTING STANDARDS AND Not NotINTERPRETATIONS Adopted Adopted Applicable

Framework for the Preparation and Presentation of FinancialStatements ./Conceptual Framework Phase A: Objectives and qualitativecharacteristics

PFRSs Practice Statement Management Commentary ./

Philippine Financial Reporting Standards (PFRS)

PFRSl First-time Adoption of Philippine Financial Reporting ./(Revised) Standards

Amendments to PFRS 1and PAS 27: Cost of an ./Investment in a Suhsidiary, Jointly Controlled Entity orAssociate

Amendments to PFRS 1:Additional Exemptions for First- ./time Adopters

Amendment to PFRS 1: Limited Exemption from ./Comparative PFRS 7 Disclosures for First-time Adopters

Amendments to PFRS 1:Severe Hyperinflation and ./Removal of Fixed Date for First-time Adopters

Amendments to PFRS 1:Government Loans ./

PFRS2 Share-hased Payment ./

Amendments to PFRS 2: Vesting Conditions and ./Cancellations

Amendments to PFRS 2: Group Cash-settled Share-hased ./Payment Transactions

PFRS3 Business Combinations ./(Revised)

PFRS4 Insurance Contracts ./

Amendments to PAS 39 and PFRS 4: Financial ./Guarantee Contracts

PFRSS Non-current Assets Held for Sale and Discontinued ./Operations

PFRS6 Exploration for and Evaluation of Mineral Resources ./

PFRS7 Financial Instruments: Disclosures ./

Amendments to PAS 39 and PFRS 7' Reclassification of ./Financial Assets

•

•

"

Philam Dollar Bond Fund Inc.(An Open-End Mutual Fund Company)Schedule of Philippine Financial Reporting Standardseffective as at December 31, 2013Page 2


Amendments to PAS 39 and PFRS 7: Reclassification of .(

Financial Assets - Effective Date and Transition

Amendments to PFRS 7: Improving Disclosures about .(

Financial Instruments

Amendments to PFRS 7: Disclosures - Transfers of .(

Financial Assets

Amendments to PFRS 7: Disclosures - Offsetting .(

Financial Assets and Financial Liabilities

Amendments to PFRS 7: Mandatory Effective Date of .(

PFRS 9 and Transition Disclosures

PFRS8 Operating Segments .(

PFRS9 Financial Instruments .(

Amendments to PFRS 9: Mandatory Effective Date of .(

PFRS 9 and Transition Disclosures

PFRSlO Consolidated Financial Statements .(

Amendments to PFRS 10: Consolidation for Investment .(

Entities

PFRS11 Joint Arrangements .(

PFRSl2 Disclosure of Interests in Other Entities .(

Amendments to PFRS 12: Consolidation for Investment .(

Entities

PFRSl3 Fair Value Measurement ,

.(

Philippine Accounting Standards

PASl Presentation of FinanCialStatements .(

(Revised)Amendment to PAS 1: Capital Disclosures .(

Amendments to PAS 32 and PAS 1: Puttable Financial .(

Instrumen~s and Obligations Arising on Liquidation

Amendments to PAS 1: Presentation of Items of Other .(

Comprehensive Income

PAS 2 Inventories .(

PAS 7 Statement of Cash Flows .(

PAS 8 Accounting Policies, Changes in Accounting Estimates .(

and Errors

PAS 10 Events after the Reporting Period .(

PAS 11 Construction Contracts .(

PASl2 Income Taxes .(

• I ' .Philam Dollar Bond Fund Inc.(An Open-End Mutual Fund Company)Schedule of Philippine Financial Reporting Standardseffective as at December 31, 2013Page 3


Amendment to PAS 12 - Deferred Tax: Recovery of ,/Underlying Assets .

PAS 16 Property, Plant and Equipment ,/

PAS 17 Leases .,/

PAS 18 Revenue ,/

PAS 19 Employee Benefits ,/(Revised)

PAS 20 Accounting for Government Grants and Disclosure of ,/Government Assistance

PAS 21 The Effects of Changes in Foreign Exchange Rates ,/

Amendment: Net Investment in a Foreign Operation ,/

PAS 23 Borrowing Costs ,/(Revised)

PAS 24 Related Party Disclosures ,/(Revised)

PAS 26 Accounting and Reporting by Retirement Benefit Plans ,/

PAS 27 Separate Financial Statements ,/(Revised)

Amendments to PAS 27: Consolidation for Investment ,/Entities

PAS 28 Investments in Associates and Joint Ventures ,/(Revised)

PAS 29 Financial Reporting in Hyperinflationary Economies ,/

PAS 32 Financial Instruments: Presentation ,/(Revised)

Amendments to PAS 32 and PAS 1: Puttable Financial ,/Instruments and Obligations Arising on Liquidation

Amendment to PAS 3~: Classification of Rights Issues ,/

Amendments to PAS 32: Offsetting Financial Assets and ,/Financial Liabilities

PAS 33 Earnings per Share ,/

PAS 34 Interim Financial Reporting ,/

PAS 36 Impairment of Assets ,/

Amendments to PAS 36: Recoverable Amount ,/Disclosures

PAS 37 Provisions, Contingent Liabilities and Contingent Assets ,/

PAS 38 Intangible Assets ,/

PAS 39 Financial Instruments: Recognition and Measurement ,/

...• '. .•

Philam Dollar Bond Fund Inc.(An Open-End Mutual Fund Company)Schedule of Philippine Financial Reporting Standardseffective as at December 31, 2013Page 4

PHILIPPINE FINANCIAL REPORTING STANDARDS AND Not NotINI'ERPRETATIONS Adopted Adopted Applicable

Amendments to PAS 39: Transition and Initial ,/'

Recognition of Financial Assets and Financial Liabilities

Amendments to PAS 39: Cash Flow Hedge Accounting of ,/'

Forecast Intra-group Transactions

Amendments to PAS 39: The Fair Value Option ,/'

Amendments to PAS 39 and PFRS 4: Financial ,/'

Guarantee Contracts

Amendments to PAS 39 and PFRS 7: Reclassification of ,/'

Financial Assets

Amendments to PAS 39 and PFRS 7: Reclassification of ,/'

Financial Assets - Effective Date and Transition

Amendments to Philippine Interpretation IFRIC-9 and ,/'

PAS 39: Emhedded Derivatives

Amendment to PAS 39: Eligible Hedged Items ,/'

Amendment to PAS 39: Novation of Derivatives ,/'

PAS 40 Investment Property ,/'

PAS 41 Agriculture ,/'

Philippine Interpretations

IFRIC 1 Changes in Existing Decommissioning, Restoration and ,/'

Similar Liabilities

IFRIC2 Members' Share in Co-operative Entities and Similar ,/'

Instruments

IFRIC4 Determining Whether an Arrangement Contains a Lease ,/'

IFRICS Rights to Interests arising from Decommissioning, ,/'

Restoration and Environmental Rehabilitation Funds

IFRIC6 Liabilities arising from Participating in a Specific Market ,/'

- Waste Electrical and Electronic Equipment

IFRIC7 Applying the Restatement Approach under PAS 29 ,/'

Financial Reporting in Hyperinflationary Economies

IFRIC9 Reassessment of Embedded Derivatives ,/'

Amendments to Philippine Interpretation IFRIC-9 and ,/'

PAS 39: Embedded Derivatives

IFRIC 10 Interim Financial Reporting and Impairment ,/'

IFRIC 12 Service Concession Arrangements ,/'

IFRIC 13 Customer Loyalty Programmes ,/'

IFRIC14 The Limit on a Defined Benefit Asset, Minimum Funding ,/'

Requirements and their Interaction

.'. •... .Philam Dollar Bond Fund Inc.(An Open-End Mutual Fund Company)Schedule of Philippine Financial Reporting Standardseffective as at December 31, 2013Page 5


Amendments to Philippine Interpretation IFRlC-14, ./Prepayments of a Minimum Funding Requirement

IFRIC 15 Agreements for the Construction of Real Estate ./

IFRIC 16 Hedges of a Net Investment in a Foreign Operation ./

IFRIC 17 Distributions of Non-cash Assets to Owners ./

IFRIC 18 Transfers of Assets from Customers ./

IFRIC 19 Extinguishing Financial Liabilitieswith Equity ./Instruments

IFRIC20 Stripping Costs in the Production Phase of a Surface ./Mine

IFRIC 21 Levies ./

SIC-7 Introduction of the Euro ./

SIC-I0 Government Assistance - No Specific Relation to ./Operating Activities

SIC-15 Operating Leases - Incentives ./

SIC-25 Income Taxes - Changes in the TaxStatus of an Entity or ./its Shareholders

SIC-27 Evaluating the Substance of Transactions Involvingthe ./LegalForm of a Lease

SIC-29 Service Concession Arrangements: Disclosures ./

SIC-31 Revenue - Barter Transactions Involving Advertising ./Services

SIC-32 Intangible Assets - Web Site Costs ./.

The standards and interpretations that are labeled as "Not Applicable" are already effective as atDecember 31,2013 but will never be relevant/applicable to the Company or are currently not relevant tothe Company because it has currently no related transactions.

The standards, amendments and interpretations that have been issued but are not yet effective as atDecember 31,2013 are marked as "Not Adopted".

Marissa.P. Escala m[ili] mmNumber) · 2019-06-18 · P.T.R. No. 0024447, issued on January 3,2014,...

Documents

Transcript of Marissa.P. Escala m[ili] mmNumber) · 2019-06-18 · P.T.R. No. 0024447, issued on January 3,2014,...