ACCOB2 PORTFOLIO
Reflection paper presented
to the Accountancy Department
In partial fulfillment
of the course requirement
in ACCCOB2
K46A
Reflection Number 1
Company Chosen: Far Eastern University, Incorporated
Introduction
In the Philippines, a private, nonsectarian university called Far Eastern University (FEU)
is located. Dr. Nicanor Reyes Sr. founded it in 1928 with the intention of offering Filipinos from
all socioeconomic backgrounds top-notch education. Business, education, engineering, law,
medicine, and the arts are just a few of the subjects where FEU is renowned for its academic
prowess. Its two main campuses are in Manila and Makati City, and it also has satellite
campuses across the rest of the Philippines. The university provides undergraduate and
graduate degrees in a variety of subject areas, including the FEU Institute of Technology, which
specializes in engineering and technologically oriented fields. That is why we choose Far Eastern
University, which is dedicated to giving students a holistic education that would enable them to
flourish in their chosen disciplines, and as a result has become one of the top schools of higher
learning in the Philippines.
Topic 1: Financial Statements
Source: https://edge.pse.com.ph/companyPage/financial_reports_view.do?cmpy_id=25
There are both positive and negative changes found in the balance sheet data provided
for Far Eastern University, Incorporated. The company's financial position is showing
encouraging trends overall, though. The current assets, total assets, retained earnings,
stockholders' equity, stockholders' equity - parent, and book value per share have all increased,
which is noteworthy. These upward trends highlight increases in assets, retained earnings, and
shareholder value, which reflect better financial health. It is also important to note that, despite
an increase in current liabilities, total liabilities have decreased, indicating a decrease in the
company's overall obligations. All of these signs point to a positive future for the business and
potential gains for its shareholders.
Topic 2: Cash and Cash Equivalent
Source:https://investors.feu.edu.ph/reports%20new%20format/2022/11252022/
FEU_ANNUAL_REPORT_2022_FINAL.pdf
Over the three-year period (2020 to 2022), Far Eastern University, Incorporated
observed a growth trajectory in its current assets. Notably, there were increases in cash and
cash equivalents, trade and other receivables, financial assets at fair value through profit or
loss, financial assets at fair value through other comprehensive income, investment securities at
amortized cost, and other current assets. Consequently, the company's total current assets
surged from P4,531,846,290 in 2020 to P5,261,753,391 in 2022. These figures reflect a positive
trend in the company's short-term asset holdings, signifying enhanced liquidity and financial
stability.
Topic 3: Trade and Other Receivables
Source: https://investors.feu.edu.ph/reports%20new%20format/2022/09142022/Far-Eastern-
University_SEC-Form-17-A_PSE-Form-17-1_13September2022.pdf
The money that Far Eastern University Incorporated (FEU) is owing by its clients and
other parties is reflected in its trade and other receivables. This includes receivables from
various sources like rental receivables or loans given by the institution, as well as receivables
from students who haven't paid their tuition yet. Trade and other receivables held by FEU are
categorized as current assets because they are anticipated to be converted into cash within a
year or during the university's typical operational cycle. These resources could help the
university become more liquid and give it the financial flow it needs to keep running its business
and make investments in new initiatives.
Reflection/Observation
Based on tbe trade and other receivables, there has been increased over the previous
period. This is because of the increase number of students served. For the fiscal years ended
May 31, 2022, 2021, and 2020, the Group recorded total impairment losses of P58.9 million,
P254.8 million, and P81.7 million, respectively. The provision for opening loss allowance is
compared to the allowance for ECL as of May 31, 2022, 2021, and 2020 in Note 6 in topic 3.
Overall, the financial statements of a corporation provide information about trade and other
receivables. They can be used to evaluate the cash flow, creditworthiness, and financial stability
of an organization. Businesses should carefully manage their trade receivables and other
receivables to make sure they can collect their payments on schedule and stay out of debt.
