SEC Form 20-IS - iRemit Global Remittance

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Statement of Compliance
The accompanying consolidated financial statements have been prepared in compliance with
Philippine Financial Reporting Standards (PFRS).
Basis of Consolidation
The financial statements of subsidiaries are prepared for the same reporting year as the Parent
Company, using consistent accounting policies.
Subsidiaries are all entities over which the Group has the power to govern the financial and
operating policies generally accompanying a shareholding of more than one half of the voting
rights. The existence and effect of potential voting rights that are currently exercisable or
convertible are considered when assessing whether the Group has control over the entity.
All significant intra-group balances, transactions, income and expenses and profits and losses
resulting from intra-group transactions are eliminated in full.
Subsidiaries are consolidated from the date on which control is transferred to the Group. Control
is achieved when the Group has the power to govern the financial and operating policies of an
entity so as to obtain benefits from its activities. Consolidation of subsidiaries ceases when
control is transferred out of the Group.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated
statement of income from the date of acquisition up to the date of disposal, as appropriate.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an
equity transaction. If the Group losses control over the subsidiary, it:
• derecognizes the assets (including goodwill) and liabilities of the subsidiary;
• derecognizes the carrying amount of any noncontrolling interest;
• derecognizes the related other comprehensive income recorded in equity and recycle the same
to profit or loss or retained earnings;
• recognizes the fair value of the consideration received;
• recognizes the fair value of any investment retained; and
• recognizes any surplus or deficit in profit or loss.
Business Combinations and Goodwill
Business combinations from January 1, 2010
Business combinations are accounted for using the acquisition method. The cost of an acquisition
is measured as the aggregate of the consideration transferred, measured at acquisition date fair
value and the amount of any noncontrolling interest in the acquiree. For each business
combination, the acquirer measures the noncontrolling interest in the acquiree either at fair value
or at the proportionate share of the acquiree’s identifiable net assets. Acquisition costs incurred
are expensed and included in operating expenses.
When the Group acquires a business, it assesses the financial assets and liabilities assumed for
appropriate classification and designation in accordance with the contractual terms, economic
circumstances and pertinent conditions as at the acquisition date. This includes the separation of
embedded derivatives in host contracts by the acquiree.
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