SEC Form 20-IS - iRemit Global Remittance

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‘Business development’ pertains to various expenses incurred for development of potential foreign
offices and other related expenses.
‘Miscellaneous’ includes expenses for recruitment, Christmas party expenses, and Christmas
giveaways.
Other charges of the Group in 2009 pertain mainly to goods and services tax (GST) written off.
23. Realized Foreign Exchange Gains - Net and Other Income
‘Realized foreign exchange gains - net’ represents currency exchange income (net of losses)
arising primarily from trading third currencies to Philippine pesos. These third currencies are
sourced from the remittance transactions.
‘Other income’ consists of:
2011 2010 2009
GST refund P=21,668,641 P=– P=–
Unrealized foreign exchange gain - net 1,205,505 1,769,202 5,172,171
Rebates 2,881,469 6,728,713 14,608,204
Others 4,060,301 6,081,539 12,488,020
P=29,815,916 P=14,579,454 P=32,268,395
GST refund pertains to refund of GST previously paid by IRCL and WEPL to the government of
Canada and Australia, respectively. Both entities are exempt from paying GST.
Interest income pertains to interest earned from deposits, short-term placements with banks and
financial assets at FVPL.
Rebates pertain to refund of bank service charges and foreign exchange special rates relating to the
remittance transactions of WEPL.
‘Others’ pertains to commission from processing of remittance from one foreign office to another.
In 2009, this also includes WEPL’s income from sublease of office space (see Note 20).
24. Related Party Transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individuals or corporate entities.
*SGVMC116502*