SEC Form 20-IS - iRemit Global Remittance

10. Other Current Assets
This account consists of:
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2011 2010
Receivable from Bureau of Internal Revenue (BIR) P=13,160,535 P=13,160,535
Prepaid expenses 9,907,410 14,882,159
Visa cards inventory 3,371,662 8,054,220
Advances to suppliers and contractors 1,087,500 50,000
Refundable taxes 1,208,422 –
Office supplies 190,328 199,689
Creditable withholding tax 2,979 −
P=28,928,836 P=36,346,603
Receivable from the BIR pertains to the excess payments made by the Parent Company in 2007
for the Initial Public Offering (IPO) percentage tax. As of December 31, 2011, the case is pending
resolution with the Court of Tax Appeals. The Parent Company believes that it will be able to
obtain the refund from the BIR.
Prepaid expenses include prepayments for interest, rent, association dues and insurance.
Refundable taxes pertain to the advance income taxes paid by LSML at the beginning of the year
based on the tax assessment on the projected income. In 2011, LSML operations resulted to a loss
making the advance tax payments either refundable or applicable to other tax obligations.
11. Investments in Associates
The Parent Company’s investments in associates consist of the following:
2011 2010
Acquisition cost:
ISPL P=12,600,000 P=12,600,000
HKHCL 3,573,974 3,573,974
16,173,974 16,173,974
Accumulated equity in net earnings:
Balance at beginning of year 4,758,262 2,850,188
Equity in net earnings during the year 2,131,855 2,504,455
Dividends – (596,381)
Balance at end of year 6,890,117 4,758,262
P=23,064,091 P=20,932,236
Acquisition of associates
HKHCL
On July 1, 2009, the Parent Company acquired 49.00% ownership interest in HKHCL, for a
consideration of NTD2.45 million (P=3.57 million). HKHCL is a remittance business based in
Taiwan.
*SGVMC116502*