SEC Form 20-IS - iRemit Global Remittance

Historical loss experience is adjusted on the basis of current observable data to reflect
the effects of current conditions that did not affect the period on which the historical loss
experience is based and to remove the effects of conditions in the historical period that
do not exist currently.
Estimates of changes in future cash flows reflect, and are directionally consistent with
changes in related observable data from period to period (such as changes in payment
status, or other factors that are indicative of incurred losses in the group and their
magnitude). The methodology and assumptions used for estimating future cash flows
are reviewed regularly by the Group to reduce any differences between loss estimates
and actual loss experience.
Significant Accounting Judgments and Estimates
The preparation of the financial statements in compliance with PFRS requires the Group
to make judgments and estimates that affect the reported amounts of assets, liabilities,
income and expenses and disclosure of contingent assets and contingent liabilities.
Future events may occur which will cause the assumptions used in arriving at the
estimates to change. The effects of any change in estimates are reflected in the
financial statements as they become reasonably determinable.
Judgments and estimates are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are believed to
be reasonable under the circumstances.
Fair Value Measurement
The following methods and assumptions were used to estimate the fair value of the
financial instruments:
Cash and cash equivalents, Account receivables, Other receivables, Beneficiaries and
other payables and Interest-bearing loans - carrying amounts approximate fair values
due to the relatively short-term maturities of these instruments.
Financial assets at FVPL - fair values are based on quoted market prices.
Refundable deposits - fair values are based on the present value of future cash flows
discounted using prevailing interest rates ranging from 2.71% to 8.00% and 4.05% to
10.19% as at March 31, 2012 and December 31, 2011, respectively.
Fair Value Hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:
Level 1: quoted prices in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly (as prices) or indirectly (derived from prices); and
Level 3: inputs that are not based on observable market data or unobservable inputs.
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