2007 Annual Report - Sun Life Financial

GS FUND
Year Incurred Year of Expiry 2006 Balance Additions Expired 2007 Balance
2005 2008 P1,536,608 - - P1,536,608
2006 2009 1,617,689 - - 1,617,689
2007 2010 2,270,796 - 2,270,796
P3,154,297 P2,270,796 - P5,425,093
A substantial portion of the Companies’ income is interest income arising from treasury notes and
special savings accounts, which are already subjected to final withholding tax and therefore excluded
in the computation of taxable income. Thus, with the exception of the Dollar Advantage and the Dollar
Abundance Funds, the Companies usually incur net operating losses.
The Bond Fund and Balanced Fund are liable to pay the minimum corporate income tax (MCIT) of
2% of gross income.
Deferred income tax on NOLCO was not recognized because tax benefit is not likely to be realized in
the future.
The carry forward benefit of the Bond Fund’s MCIT of P2,246,491 and P1,841,399 in 2007 and 2006,
respectively, which is included as part of “Other non-current assets” account, is valid until 2010 and
2009, respectively.
On the other hand, the carry forward benefit of the Balanced Fund’s MCIT amounting to P89,667 and
P82,042 in 2007 and 2006, is valid until 2010 and 2009, respectively.
Held–to-maturity investments amounting to P1,218,613,087 in 2006 was reclassified to loans and
receivables to conform with the current year classification.
18. APPROVAL OF FINANCIAL StAtEMENtS
The financial statements were approved by Management and authorized for issue on February 26,
2008. The Companies did not grant anyone the power to amend the financial statements once issued
to the public.
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2007 Annual Report 57