SEC Form 20-IS - iRemit Global Remittance

Associates:
IRemit Singapore Pte Ltd
Country of
Incorporation
- 2 -
Functional
Currency
Effective Percentage of Ownership
December 31
2011 2010 2009
(ISPL) Singapore
Singapore
Dollar (SGD) 49.00 49.00 49.00
Hwa Kung Hong & Co.,
New Taiwan
Ltd. (HKHCL) Taiwan
Dollar (NTD) 49.00 49.00 49.00
* Consists of direct voting interest of 70.00% and indirect voting interest through IAPL of 30.00%
**Formerly IREMIT EUROPE Remittance Consulting AG (IERCAG)
On March 25, 2011, the Parent Company acquired 35.00% ownership interest in WEPL from the
noncontrolling stockholders for a consideration of P=12.30 million. The carrying value of the
noncontrolling interest at acquisition was P=1.09 million. The difference of P=11.21 million
between the consideration paid and the carrying value of the noncontrolling interest was
recognized as equity adjustment and deducted from ‘Capital paid-in excess of par value’. The
acquisition increased the Parent Company’s effective ownership in WEPL to 100.00% from
65.00%.
On May 5, 2011, the Parent Company acquired the 25.10% ownership interest in IERCAG from
the noncontrolling stockholder for a consideration of P=25.02 million. The carrying value of the
noncontrolling interest at acquisition was P=2.05 million deficit. The difference of P=27.06 million
between the consideration paid and the carrying value of the noncontrolling interest was
recognized as equity adjustment and deducted from ‘Capital paid-in excess of par value’. The
acquisition increased the Parent Company’s ownership interest in IERCAG to 100.00% from
74.90%.
Consequently, on October 11, 2011, IERCAG changed its legal name to IREMIT Remittance
Consulting GmbH (IRCGmbH) and changed its legal status from a stock company to a limited
liability company. It also amended its Articles of Incorporation to include management
consultancy in its business activities.
On June 10, 2011, the Parent Company incorporated KKIJ in Japan to provide remittance services.
KKIJ has not started commercial operations as of March 23, 2012.
2. Summary of Significant Accounting Policies
Basis of Preparation
The accompanying consolidated financial statements of the Group have been prepared on a
historical cost basis except for financial assets at fair value through profit or loss (FVPL) that have
been measured at fair value. The financial statements are presented in Philippine peso, the Parent
Company’s functional and presentation currency, and all values are rounded to the nearest peso
except when otherwise indicated.
Each entity in the Group determines its own functional currency and items included in the
financial statements of each entity are measured using that functional currency. The respective
functional currencies of the subsidiaries and associates are presented in Note 1.
*SGVMC116502*