SEC Form 20-IS - iRemit Global Remittance

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A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction. The excess of acquisition cost over the carrying value of the noncontrolling
interest (formerly known as minority interest) is charged against the ‘Capital paid-in excess of par
value’.
When the Parent Company issues more than one class of stock, a separate account is maintained
for each class of stock and the number of shares issued.
‘Retained earnings’ represents accumulated earnings (losses) of the Parent Company less
dividends declared.
Own equity instruments which are reacquired (treasury shares) are recognized at cost and
deducted from equity as ‘Treasury stock’. No gain or loss is recognized in the parent company
statement of income on the purchase, sale, issue or cancellation of the Parent Company’s own
equity instruments. Any difference between the carrying amount and the consideration is
recognized in ‘Capital paid-in excess of par value’.
Dividends
Cash dividends on common shares are recognized as a liability and deducted from equity when
declared and approved by the Board of Directors (BOD) of the Parent Company. Stock dividends
are deducted from equity when declared and approved by the BOD and stockholders of the Parent
Company.
Related party relationships and 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.
Provisions
Provisions are recognized when the Parent Company has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of assets embodying
economic benefits will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation. Where the Parent Company expects a provision to be reimbursed,
the reimbursement is recognized as a separate asset but only when the reimbursement is virtually
certain. The expense relating to any provision is presented in the parent company statement of
income, net of any reimbursement.
Contingencies
Contingent liabilities are not recognized in the parent company financial statements. These are
disclosed unless the possibility of an outflow of resources embodying economic benefits is
remote. A contingent asset is not recognized in the parent company financial statements but
disclosed when an inflow of economic benefits is probable.
Events After the Reporting Period
Post year-end events that provide additional information about the Parent Company’s financial
position at the balance sheet date (adjusting events) are reflected in the parent company financial
statements. Post year-end events that are not adjusting events are disclosed in the notes to the
parent company financial statements when material.
*SGVMC116501*