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Metro Retail Puregold: Accounting Policies, Changes in Accounting Estimates and Errors

Both Metro Retail and Puregold follow a dividend policy where cash dividends are declared by the board of directors based on available cash and profitability. Metro Retail aims to pay out approximately 20% of net income as annual dividends to stockholders. The companies present their revenue differently - Metro Retail separates net sales from rental income, while Puregold includes all income sources like rentals and concessions in a single "Other Income" line item. Both companies adopted the full retrospective approach of PFRS 16 on leases for 2018 and 2017 financial statements. They also use the indirect method to present their statements of cash flows.

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Christine Nathalie Balmes
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62 views2 pages

Metro Retail Puregold: Accounting Policies, Changes in Accounting Estimates and Errors

Both Metro Retail and Puregold follow a dividend policy where cash dividends are declared by the board of directors based on available cash and profitability. Metro Retail aims to pay out approximately 20% of net income as annual dividends to stockholders. The companies present their revenue differently - Metro Retail separates net sales from rental income, while Puregold includes all income sources like rentals and concessions in a single "Other Income" line item. Both companies adopted the full retrospective approach of PFRS 16 on leases for 2018 and 2017 financial statements. They also use the indirect method to present their statements of cash flows.

Uploaded by

Christine Nathalie Balmes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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METRO RETAIL PUREGOLD

Metro Retail follows a policy with Cash dividends are upon the
regards to declaration and payout declaration of the board of
of dividends to stockholder. directors, but no stockholders’
approval is required.
Under Section 3 Article VIII of the Declaration of cash dividend
Company’s Fourth Amended By- depends on the company’s
Dividend Policy Laws, the annual dividend available cash and
payment ratio is approximately profitability.
20% of net income after tax for
the preceding fiscal year.
Dividends shall be declared and
paid out of the unrestricted
retained earnings.
The company’s presentation of The company’s income
revenue is divided into two, net derived from rentals are
sales and rental income. presented in Other Income as
Revenue Recognition
one line item along with
concessionaire income and
membership income.
Both company adopts PFRS 16 and applied the full retrospective
Changes in Accounting
transition approach resulting to restatement for 2018 and 2017
Policy
financial years
Both companies used Indirect Method in presenting the Statement of
Cashflow.

Under PAS 7, operating cash flows may be prepared from a company’s


accounting records under the “direct method,” which shows the gross
cash receipts/payments from operations, or “indirectly” by adjusting net
Presentation of the
profit or loss for non-operating and non-cash transactions; and for
Statement of Cash Flows changes in working capital.

Companies are encouraged but not mandated to report cash flows from
operating activities using the direct method because the information
provided is more useful.

Definition of Material Amendments to PAS 1, Presentation of Financial Statements and PAS 8,


Accounting Policies, Changes in Accounting Estimates and Errors

The amendments to PAS 1 and PAS 8 clarify the definition of material and
how it should be applied by stating that information is material if
omitting, misstating or obscuring it could reasonably be expected to
influence the decisions that the primary users of general purpose
financial statements make on the basis of those financial statements,
which provide financial information about a specific reporting entity. The
amendments to PAS 1 and PAS 8 apply prospectively for annual periods
beginning on or after January 1, 2020
The Company plans to apply these The company does not anticipate
amendments on the required that the application of these
effective date amendments will have a significant
effect on the future consolidated
financial statements.

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