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FAR EASTERN UNIVERSITY
P.O. BOX 609 MANILA, PHILIPPINES

SECURITIES AND EXCHANGE COMMISSION SEC FORM 17 - A ANNUAL REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SECTION 141 OF THE CORPORATION CODE

1. 2. 3. 4. 5.

For the fiscal year ended SEC Identification Number BIR Tax Identification No. Exact name of registrant as specified in its charter PHILIPPINES Province, Country or other jurisdiction of incorporation or organization ____________ / / (SEC use only) /____________/ Industry Classification Code: Nicanor Reyes Street, Sampaloc, Manila Address of principal office (632) 735-56-21 Issuer's telephone number including area code

March 31, 2010 538 000-225-442 Far Eastern University, Inc.

6.

7.

1008 Postal Code

8.

9.

NOT APPLICABLE Former name, former address, and former fiscal year, if changed since last report. Securities registered pursuant to Sections 8 and 12 of the SRC, or Sec. 4 and 8 of the RSA Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding 9,808,448 Not Applicable

10.

Title of Each Class Common Stock, P100.00 par value Bond with Non-Detachable Warrant, P1.00 per unit /

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11.

All securities (common shares) are listed with the Philippine Stock Exchange, Inc.

12.

Check whether the registrant: (a) has filed reports required to be filed by Section I7 of the SRC and SRC Rule 17 thereunder and Sections 26 and 141 of the Corporation Code of the Philippines during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); Yes [ x ] No [ ]

13.

The aggregate market value of the voting stock held by non-affiliates: None

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TABLE OF CONTENTS

PART I -

BUSINESS AND GENERAL INFORMATION Item 1 Item 2 Item 3 Item 4 Business Properties Legal Proceedings Submission of Matters To A Vote of Security Holders

NO. OF PAGES 5 2 2 1

PART II -

OPERATIONAL AND FINANCIAL INFORMATION Item 5 Market for Issuer’s Common Equity and Related Stockholders Matters Management’s Discussion and Analysis or Plan Operation Financial Statements Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 6 Item 7 Item 8 -

3 11 122 1

PART III -

CONTROL AND COMPENSATION INFORMATION Item 9 Item 10Item 11Item 12Directors and Executive Officers of the Issuer Executive Compensation Security Ownership of Certain Beneficial Owners and Management Certain Relationship and Related Transactions

6 2 2 1

PART IV

CORPORATE GOVERNANCE Item 13Corporate Governance 1

PART V

EXHIBITS AND SCHEDULES Item 14Exhibits and Reports on SEC Form 17-C a. b. c. Exhibits Reports on SEC FORM I7 - C Quarterly Reports 1 3 1

-4PART I - BUSINESS AND GENERAL INFORMATION Item 1. Business Far Eastern University, Inc. ("FEU or the "Corporation") was incorporated in 1933 Brief Discussion of Business Far Eastern University, Inc., founded in 1928, is a private non-sectarian institution of learning. Guided by the core values of Fortitude, Excellence and Uprightness, FEU aims to be a university of choice in Asia. Committed to the highest intellectual, moral and cultural standards, FEU strives to produce principled and competent graduates. It nurtures a service-oriented and environmentconscious community which seeks to contribute to the advancement of the global society. Tuition and other fees which are the main sources of its financial stability are moderate, subject to government regulation. The University also provides full and partial scholarships to deserving students. An FEU Foundation supplements the University scholarship program by providing special grants. The University maintains excellent facilities such as an electronic library, various types of laboratories, auditorium, audio-visual and multimedia rooms, clinic, technology-based gate security and enrollment system, gymnasiums, and spacious air-conditioned classrooms to best serve the students. The University was granted deregulated status for five years beginning October 22, 2001 until October 21, 2006 per CHED Memorandum Order (CMO) No. 38, Series 2001. Then, per CMO No. 52, Series of 2006, the deregulated status was extended until the end of Second Semester, SY 2006-2007. Moreover, per CMO No. 59, Series of 2007, the University was granted the same status from November 15, 2007 to November 14, 2008. On January 22, 2009, through a Memorandum from the CHED Chairman, FEU’s status was extended until April 30, 2009. Recently, a CHED letter addressed to President Lydia B. Echauz dated March 17, 2009 has extended the University’s deregulated status for another five years that is from March 11, 2009 until March 30, 2014. Product: The Corporation is an educational institution. A private, non-sectarian institution of learning comprising the following different Institutes that offer specific programs: A) Institute of Arts and Sciences (IAS) Programs: Masteral: Master of Arts (MA) major in: • Mass Communication • Letters • Psychology Baccalaureate: Bachelor of Arts major in Mass Communication (Granted permit up to recognition) Bachelor of Arts in: (Granted Government Permit to offer 1st & 2nd Year Levels) • • • • English Language Literature Political Science International Studies

-5Bachelor of Science (BS) in Medical Technology (Granted Government Permit to offer 1st, 2nd and 3rd Year Levels) Bachelor of Science (BS) in Biology Bachelor of Science (BS) in: • Psychology • Applied Mathematics with Information Technology B) Institute of Accounts, Business and Finance (IABF) Programs: Masteral: Master of Business Administration (MBA) (Without Thesis Program) Baccalaureate: Bachelor of Science (BS) in: • Accountancy • Hotel and Restaurant Management (Granted Government Permit up to Recognition) • Tourism Management (Granted Government Permit up to Recognition) Bachelor of Science in Business Administration major in: • • • • • • • • C) Business Economics Financial Management Marketing Management Human Resource Development Management Operations Management Business Management Internal Auditing Legal Management

Institute of Education (IE) Programs: Doctoral: Doctor of Education (Ed.D.) major in Educational Administration Masteral: Master of Arts in Education major in: • Educational Administration (Thesis Program) • Curriculum and Instruction (Thesis Program) • Curriculum and Instruction (Without Thesis Program) • Special Education (Thesis Program)

-6Baccalaureate: Bachelor of Elementary Education (B.E.Ed.) major in: • General Education • Special Education Bachelor of Secondary Education (B.S.Ed.) major in: • Mathematics • Sports & Recreational Management • English • Filipino • General Science • Music, Arts and Physical Education Certificate: Teacher Certificate Program

D)

Institute of Architecture and Fine Arts (IARFA) Programs: Baccalaureate: Bachelor of Science in Architecture (B.S. Arch.) Bachelor of Fine Arts (BFA) major in: • Advertising Arts • Painting

E)

Institute of Law (IL) Programs: Post-Baccalaureate: Bachelor of Laws (Ll.B.) Juris Doctor

F)

Institute of Nursing (IN) Programs: Masteral: Master of Arts in Nursing Baccalaureate: Bachelor of Science in Nursing (BSN)

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All programs offered in the University were granted approval/permits by CHED and other concerned government institutions. Accreditation on Programs The Philippine Association of Colleges and Universities Commission on Accreditation (PACUCOA) granted Certificates of Level III Reaccredited Status, from April 24, 2006 to April 2011 to Liberal Arts major in: 1. 2. 3. 4. 5. Literature English Language Mass Communication Economics Political Science

Similarly, effective March 06, 2006 to March 2011, PACUCOA granted a Level III Reaccredited Status to Commerce, major in: 1. 2. 3. 4. 5. 6. 7. 8. Economics/Financial Economics Finance Financial Accounting Internal Auditing Legal Management Management Marketing / Marketing Management Tourism Management

Likewise, the Bachelor in Elementary Education and Bachelor in Secondary Education programs were granted by PACUCOA Level II Reaccredited Status effective February 16, 2004 until February 2009. Also, the Bachelor of Science in Accountancy program was granted by PACUCOA Level II First Reaccredited Status effective April 2010 until April 2015. Meanwhile, the Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU) granted a Level II Reaccredited Status to the University’s Nursing program effective May 6, 2005 valid until May 2010. Using Quality Management System, the University is also ISO (International Organization for Standardization) certified through Certificate Registration No. TUV100 05 0416 valid from January 18, 2009 to January 17, 2012.

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Distribution methods of the products/services: Since this is an educational institution, its services are certainly focused on the students.

The tuition fees of students in the following Institutes significantly contributed to the revenues of the University: Institute Institute of Accounts, Business and Finance Institute of Arts and Sciences Institute of Nursing Percentage to Revenues 32.20%

13.15% 43.87%

Customers:

Students

Purchases of Raw Materials: NOT APPLICABLE Distribution methods of the products/services: Since this is an educational institution, its services are certainly focused on the students.

Competition: Since the school which is the main core of the business is situated in the University Belt, the competitors are prestigious colleges and universities within the specified area. FEU can effectively compete with these institutions of learning because of its well-modulated tuition fees subject to government regulations, air-conditioned classrooms, electronic library and continuous improvement of physical plant and facilities. Diverse scholarships are also offered and a magnificent line-up of cultural performances for the whole year are presented, free for all students. Moreover, the University recently acquired the Level III re-accredited status for most of its Liberal Arts and Commerce programs.

-9Item 2. Properties

FEU owns Seventeen Thousand Nine Hundred Sixty-Seven (17,967) square meters of real properties with improvements in Nicanor Reyes Street, Sampaloc, Manila, wherein its main campus is situated. The principal properties which include buildings, land improvements and equipments are as follows:

Gross Book Value I. PROPERTY, PLANT & EQUIPMENT: LAND BUILDINGS & LAND IMPROVEMENTS New Technology Building II Alfredo Reyes Hall Leasehold Improvement New Technology Building-Idle Hosp. Bldg. Science Building Arts Building Nicanor Reyes Hall GEC & Educational Hall Grade School S B Covered Walk Covered Passage Fence Campus Pavilion GSB Covered Walk Powerhouse Chapel Others Grandstand 282,459,780.00 115,965,314.00 107,721,258.00 9,182,068.00 101,387,260.00 21,095,350.00 45,025,597.00 617,737.00 3,202,126.00 715,360.00 1,661,650.00 310,000.00 296,196.00 708,691.00 9,613,894.00 1,423,704.00 701,385,985.00 98,457,565.00

Accumulated Depreciation

Net Book Value

Location

Condition

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98,457,565.00

Manila

Very Good

55,847,469.00 29,020,575.00 18,647,599.00 536,096.00 16,102,659.00 6,058,121.00 4,377,102.00 525,076.00 592,700.00 546,657.00 309,988.00 263,499.00 296,196.00 857,028.00 49,263.00 134,030,028.00

226,612,311.00 86,944,739.00 89,073,659.00 8,645,972.00 85,284,601.00 15,037,229.00 40,648,495.00 92,661.00 2,609,426.00 168,703.00 1,351,662.00 46,501.00 708,691.00 8,756,866.00 1,374,441.00 567,355,957.00

" " " " " " " " " " " " " " " " " "

" " " " " " " " " " " " " " " " " "

EQUIPMENTS Furnitures & Fixtures Electrical & Mechanical Information Technology Transportation Equipment Miscellaneous Fixed Assets Instruments & Utensils Tools Linen Museum Collection 16,995,976.00 64,765,492.00 29,995,180.00 11,857,241.00 10,645,124.00 565,999.00 1,177,842.00 299,914.00 5,519,573.00 141,822,341.00 941,665,891.00 11,739,849.00 54,561,591.00 23,221,336.00 8,496,527.00 10,645,124.00 349,528.00 820,838.00 299,914.00 110,134,707.00 244,164,735.00 5,256,127.00 10,203,901.00 6,773,844.00 3,360,714.00 216,471.00 357,004.00 5,519,573.00 31,687,634.00 697,501,156.00 " " " " " " " " " " " " " " " " " "

TOTAL II. INVESTMENT PROPERTY: LAND COLLEGE OF ENGINEERING BUILDING TOTAL GRAND TOTAL

53,394,726.00 207,626,479.00 261,021,205.00 1,202,687,096.00 76,547,067.00 76,547,067.00 320,711,802.00

53,394,726.00 131,079,412.00 184,474,138.00 881,975,294.00

" "

" "

The above-mentioned properties are not mortgaged, encumbered, or under any lien.

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Properties leased by the corporation from FERN Realty, Inc.
Monthly Rental Education Building – an eight (8) storey building made of concrete materials located on Nicanor Reyes St., Manila P35,974,093.99 plus applicable VAT Contract Date__ July 1, 2009 to June 30, 2010

Nursing Building – an eight (8) storey building made of concrete materials located on Nicanor Reyes St., Manila Law Building – a four (4) storey building made of concrete materials located on Nicanor Reyes St., Manila Administration Building – a four (4) storey building made of concrete materials located on Nicanor Reyes St., Manila Gymnasium - a two (2) storey building made of concrete materials located on R. Papa St., Manila

The lease contract shall not be deemed extended by implication beyond the contract period for any cause or reason whatsoever, but only by negotiation and written agreement of the LESSOR and the LESSEE.

- 11 Employees: Number of Employees Officials Senior Staff Non-Academic: Supervisor Rank-and-File Academic: Lecturer Regular 625 375 12 46 64 276

With the economic condition prevailing in the country, the corporation has no plan of hiring employees within the ensuing twelve months. It will make use of its present employees and faculty members to meet its manpower requirements.

Inclusive Dates of CBA Non-Academic Academic July 16, 2009 - July 15, 2011 Sept. 1, 2009 - August 31, 2011

The labor unions of the employees and the faculty members have never been on strike in the last ten years, and pose no threat to strike in the foreseeable future. Employees and faculty members have a harmonious relationship with the Administration.

Working Capital:

All of the company's working capital for its existing operation for fiscal year April 1, 2009 to March 31, 2010 was internally generated.

Item 3. Legal Proceedings Hereunder is the list of the legal proceedings involving the company which are being handled by Atty. Enrico G. Gilera, the University’s Legal Counsel: External Cases A. Pending Court Cases as of 31 December 2009 1. 2. 3. 4. 5. 6. Meynard Bathan vs. FEU, NLRC Case No. 08-11985-2009 Abner Cruz vs. FEU, NLRC Case No. 11-15913-2009 Melvira David, et al. vs. FEU, CA GR No. 106532 Fina Gabonada vs. FEU et al; NLRC Case No. 09-13392-2008 Ma. Richelle Simon, et al, vs. NLRC Case No. 12-16513-2009 FEU-ELU (PLAC) vs, FEU, CA GR SP No. 102249

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B.

Recently Dismissed cases 1. Ramir Arceo, vs. FEU, NLRC Case No. 06-09197-2008; dismissed on September 29, 2009 2. Jesus Fernando Dujua vs. FEU, NLRC Case No. 04-05603-2008; dismissed on September 29, 2009 3. Elmer Bolanos vs. FEU/RRC Case No. 06-09197-2008; dismissed on May 29, 2009 4. Annabele Mercado vs. FEU, NLRC Case No. 05-04546-2007; dismissed on April 30, 2009 5. Erlinda Ramos vs. FEU, NLRC Case No. 00-07-09644-2009; dismissed on November 17, 2009

Involvement of Directors and Officers in Certain Legal Proceedings None of the directors and officers were involved during the past five (5) years in any bankruptcy proceeding. Neither have they been convicted by final judgment in any criminal proceeding or been subject to any order, judgment or decree of competent jurisdiction, permanently or temporarily enjoining barring, suspending, or otherwise limiting their involvement in any type of business, securities, commodities, or banking activities, nor found by any court or administrative body to have violated a securities or commodities law. The registrant or any of its subsidiaries or affiliates is not a party to any pending legal proceedings in which any of their property is the subject. Item 4. Submission of Matters to a Vote of Security Holders The registrant is not a party to any voting trust agreement. No security holder of the Registrant holds a voting trust or any other similar agreement. Part II - OPERATIONAL AND FINANCIAL INFORMATION Item 5. Market for Registrants Common Equity and Related Stockholders Matters DIVIDENDS DECLARED FOR THE FISCAL YEAR ENDED MARCH 31, 2009 Dividends During the Year: Cash Dividend:
Payment/Issued Date July 20, 2009 Jan. 25, 2010 P Outstanding Shares 9,808,448 9,808,448

Particulars 15.00/share 15.00/share P

Amount 147,126,720.00 147,126,720.00 P 294,253,440.00 ===============

- 13 Stock Dividend:

No stock dividend for the period April 1, 2009 to March 31, 2010 was declared.

Recent Sales of Unregistered Securities Not a single common share is considered unregistered security. All shares are registered with the Philippine Stock Exchange, Inc. Thus, checklist of requirements for Sale of Unregistered Securities is not applicable. The Philippine Stock Exchange, Inc. is the principal market where the corporation’s common equity is traded.
Market Prices of Common Stocks: (Phil. Stock Exchange, Inc.) Herewith are the high, low, and closing prices of shares of stock traded from April 2009 to March 2010: 2009 Apr May Jun Jul Aug Sep Oct Nov Dec 2010 Jan Feb Mar HIGH 785.00 765.00 775.00 800.00 780.00 780.00 760.00 790.00 800.00 775.00 800.00 790.00 LOW 735.00 750.00 750.00 735.00 750.00 760.00 710.00 735.00 735.00 740.00 750.00 750.00 CLOSE 750.00 750.00 775.00 750.00 770.00 760.00 750.00 750.00 770.00 750.00 785.00 770.00

High and low sale prices for each quarter are as follows: A) April 01, 2009 - March 31, 2010 Period First Quarter Second “ Third “ Fourth “ P / High 775.00 786.67 783.33 783.33 P / Low 745.00 748.33 726.67 746.67 P / Close 758.33 760.00 756.67 768.33

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B)

April 01, 2008 - March 31, 2009 Period First Quarter Second “ Third “ Fourth “ P / High 973.33 695.24 1,263.33 902.38 683.33 700.00 P / Low 916.67 654.76 876.67 697.62 573.33 630.00 P / Close 973.33 695.24 (Adjusted) 1,023.33 807.14 (Adjusted) 610.00 678.33

The number of shareholders on record as of March 31, 2010 was One Thousand Four Hundred Twenty-Eight (1,428). Common shares issued and outstanding were 9,808,448.
20 TOP FEU STOCKHOLDERS AS OF MARCH 31, 2009 No. of Shares and Nature of Beneficial Ownership

Title of Class

Name of Beneficial Owner

Citizenship

Percent Of Class

1. 2. 3. 4. 5. 6. 7. 8.

Common Common Common Common Common Common Common Common

9. Common 10. Common 11. Common 12. 13. 14. 15. 16. 17. 18. 19. 20. Common Common Common Common Common Common Common Common Common

Seyrel Investment and 2,807,835 – D Realty Corporation Sysmart Corporation 2,076,839 – D Desrey, Incorporated 784,800 – D Angelina D. Palanca 314,538 – D Sr. Victorina D. Palanca 220,000 – D ICM Sisters Phil. Mission Board, 215,000 – D Inc. Aurelio R. Montinola III 164,099 – D PCD Nominee Corporation 162,377 – D (Filiipno) Marco P. Gutang 125,081 – D Gonzaga-Lopez Enterprises, Inc 120,136 – D Jomibel Agricultural 106,479 – D Development Corporation Lourdes R. Montinola 94,588 – D AMON Trading Corporation 62,043 – D ZARE, Inc. 49,620 – D Rosario P. Melchor 48,228 – D Rosario Panganiban Melchor 43,782 – D Mitos Sison 40,366 – D Consorcia P. Reyes 39,337 – D Caridad I. Santos 33,303 – D Francisca S. Monzon 33,131 – D

Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino

28.6267 21.1740 8.0013 3.2068 2.2430 2.1920 1.6730 1.6555 1.2752 1.2248 1.0856 0.9644 0.6325 0.5059 0.4917 0.4464 0.4115 0.4010 0.3395 0.3378

- 15 Item 6. Management’s Discussion and Analysis or Plan of Operation

Financial Position : As of March 31, 2007, total assets reached P2,701.2 million which was 20.62% higher than the previous year’s P2,239.5 million. Total liabilities amounted to P389.3 million which was 6.08% higher than the previous year’s P367.0 million. Equity amounted to P2,311.9 million which was 23.46% higher than the previous year’s P1,872.5 million. Current ratio was 4.68:1 and debt was 17% of equity. As of March 31, 2008, total assets amounted to P3,157.3 million which was 16.89% higher than the previous year’s P2,701.2 million. Total liabilities amounted to P572.1 million which was 46.96% higher than the previous year’s P389.3million. Equity amounted to P2,585.2 million which was 11.82% higher than the previous year’s P2,311.9 million. Current ratio was 3.9:1 and debt was 22% of equity. As of March 31, 2009 total assets amounted to P3,447.3 million. Total liabilities amounted to P558.1 million while total stockholders’ equity reached P2,889.2 million. Compared to the previous year, assets and stockholders’ equity increased by 9.19% and 11.76 % respectively while liabilities decreased by 2.45%. Current ratio was 4.38:1 and debt was 19% of equity. As of March 31, 2010, total assets amounted to P3,697.7 million which was 7.26% higher than the previous year’s P3,447.3 million. Total liabilities amounted to P500.1 million which was 10.39% lower than the previous year’s P558.1 million. Equity amounted to P3,197.5 million which was 10.67% higher than the previous year’s P2,889.2 million. Current ratio was 4.97:1 and debt was 16% of equity. For the past four (4) years, total assets increased at an average rate of 13.49% or P364.5 million a year. Total liabilities increased during the first two years but gradually decreased on the last two years. On the average, liabilities increased at around P33.27 million a year. (In Million Pesos)
Year March 31, 2006 March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 Four year average Total Assets P2,239.5 2,701.2 3,157.3 3,447.3 3,697.7 Increase (Decrease) Amount % Total Liabilities P367.0 389.3 572.1 558.1 500.1 Increase (Decrease) Amount %

P461.7 456.1 290.0 250.4 364.55

20.62% 16.89% 9.19% 7.26%

P 22.3 182.8 (14.0) (58.0) 33.27

6.08% 46.96% (2.45%) (10.39%)

During the past four years, the company’s solvency steadily improved as shown by the following figures in million Pesos: Excess of Assets Year Total Assets Total Liabilities over Liabilities March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 P2,701.2 3,157.3 3,447.3 3,697.7 P389.3 572.1 558.1 500.2 P2,311.9 2,585.2 2,889.2 3,197.5

As of March 31, 2010, the company has P7.39 worth of assets to pay for every P1.00 worth of liability. During the same period of time, the company’s liquidity steadily improved as shown by the following statistics in million Pesos:

Year March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010

Current Assets P 1,820.1 2,228.7 2,443.9 2,484.5

Current Liabilities P389.3 572.1 558.1 500.2

Excess of Current Assets over Current Liabilities P1,430.8 1,656.6 1,885.8 1,984.3

As of March 31, 2010, the company has P4.97 worth of current assets to pay for every P1.00 worth of current liability. The constant and steady improvement in the company’s financial condition both in solvency and liquidity is largely attributed to the company’s net income each year over the past four years, net of cash dividends paid over the same period of time. (In Million Pesos) Excess of Net Income over Cash Dividends Paid P428.4 277.7 314.8 291.0

Year 2006 – 2007 2007 – 2008 2008 – 2009 2009 – 2010

Net Income P603.5 592.9 567.0 585.2

Cash Dividends Paid P175.1 315.2 252.2 294.2

% 29% 53.2% 44.5% 50.3%

% 71% 46.8% 55.5% 49.7%

As a result and based on the above figures, around 55.75% of each year’s net income has been retained by the company, thus, the steady increase in owners’ equity as follows: (In Million Pesos) Increase (Decrease) P439.4 273.4 303.9 308.3

Year March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010

Owner’s Equity P1,872.5 2,311.9 2,585.3 2,889.2 3,197.5

% 23.5% 11.8% 11.8% 10.7%

As of March 31, 2010, owner’s equity accounts for 86.47% of total assets. Since 67.2% of the company’s total assets is current, the company can pay all its liabilities and still have 53.67% current assets and 32.8% non-current assets. In pesos, this would mean P1,984.40 million current assets and P1,213.2 million non-current assets after paying all liabilities amounting to P500.1 million as of March 31, 2010. In Million Owners’ Equity Total Assets Non-Current Assets Current Assets Total Liabilities Current Assets after Total Liabilities P3,197.5 3,697.7 1,213.2 2,484.5 500.1 1,984.4 % 86.47% 100% 32.8% 67.2% 13.52% 53.67%

Results of Operations For the year 2006-2007, net income for the period was P603.5 million which was 6.1% higher than the previous year’s P568.9 million. This year’s figure consisted of 80.2% operating profit and 19.8% other income. Operating profit increased by P35.1 million and other income by P.89 million. As a result, net income after tax for the year increased by P34.6 million. For the year 2007-2008, net income for the period amounted to P592.9 million which was 1.8% lower than the previous year’s P603.5 million. This year’s figure consisted of 78% operating profit and 22% other income. Operating profit decreased by P21.0 million while other income increased by P15.5 million. The combined effect resulted in a decrease in net income after tax by P10.6 million.

For the year 2008-2009, net income for the period amounted to P567.0 million which was 4.4% lower than the previous year’s P592.9 million. This year’s figure consisted of 74.7% operating profit and 25.3% other income. Operating profit decreased by P39.8 million while other income increased by P13.3 million. As a result, net income after tax decreased by P25.9 million. For the year 2009-2010, net income for the period amounted to P585.2 million which was 3.2% higher than the previous year’s P567.0 million. This year’s figure consisted of 74.1% operating profit and 25.9% other income. Operating profit increased by P10.7 million while other income increased by P9.02 million. As a result, net income after tax increased by P18.2 million. The company’s operating profit which is largely dependent on enrollment, was up in 2006-2007 when enrollment was still at the 26,000 level but went down in 2007-2008, 20082009 and 2009-2010 when enrollment dropped to 23,000. Enrollment (1st semester) 26,229 23,928 23,291 22,885 Average tuition fee rate per unit P 976.00 1,043.00 1,100.00 1,155.00 Operating Profit (in million Pesos) P540.6 519.6 479.8 490.5

Period Covered 2006 - 2007 2007 - 2008 2008 - 2009 2009 - 2010

Other income consists largely of investment income. During the past four years, investment income accounted for 71.8% of the total other income. Rental income was also a factor. It accounted for 18.0% of such other income. Period Covered 2006 – 2007 2007 – 2008 2008 – 2009 2009 – 2010 Finance Income Net of Finance Cost P110.4 101.7 120.7 110.0 442.8 Four year average Percentage 110.7 71.8%

Rental P23.1 25.5 22.9 39.2 110.7 27.7 18.0%

Miscellaneous P 21.9 18.8 22.2 62.9 15.7 10.2%

Total P133.5 149.1 162.4 171.4 616.4 154.1 100%

A Look of What Lies Ahead

During the past four years, the first semester enrollment decreased from 26,229 in 20062007 to 22,885 in 2009-2010. However, in the second semester, the actual drop in enrollment from that of the first semester was better at 5.82% compared to the usual 10% decrease. 1st Semester Enrollment 26,229 23,928 23,291 22,885 2nd Semester Enrollment 24,510 22,510 21,744 21,908

Year 2006 – 2007 2007 – 2008 2008 – 2009 2009 – 2010

Increase (Decrease) (1,719) (1,392) (1,547) ( 977) (1,409)

% (6.55%) (5.82%) (6.64%) (4.27%) (5.82%)

Four-year average :

For the school year 2010-2011, the first semester enrollment increased by 1,748 students or 7.63% better than the previous year’s 22,885. The increase in enrollment is attributed to our improved facilities and new course offerings. Our newly-opened branch in Makati brought in 192 students. We expect the branch enrollment to be much bigger in the succeeding years. During the past four years, our tuition rates also increased at an average of 5.5% a year. For 2010-2011, our approved tuition fee increase is only 3.5%. While the current increase in rate is relatively lower than the average 5.5%, this year’s 7.6% increase in enrollment will compensate for the lower rate increase. With the proper management of resources, we expect that operating profit will again improve this year. With the company’s total current assets amounting to P1,984.4 million and non-current assets amounting to P1,213.1 million (net of all liabilities) as of March 31, 2010 and with the expected net income, the company does not foresee any cash flow or liquidity problem in the next 12 months. The company shall easily meet all its commitments including those for improvements in instructional and other facilities from its present reserves and from expected future earnings. For the year’s ahead, management is committed to uplift academic standards even more. This will be done through continuously updating curricula, strengthening faculty, improving services to students and providing the best educational facilities. With an additional campus and with sustained improvement in all fronts, plus a reasonable tuition fee hike, the University is confident that it will increase its market share in the industry.

Top Five (5) Key Performance Indicators

I. Test of Liquidity Liquidity refers to the company’s ability to pay its short-term current liabilities as they fall due. This is measured by any of the following: 1. Current ratio measures the number of times that the current liabilities could be paid with the available current assets (Adequate: at least 1.5:1) March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 4.68:1 3.90:1 4.38:1 4.97:1

2. Quick ratio measures the number of times that the current liabilities could be paid with the available quick assets (Adequate: at least 1:1) March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 II. Test of Solvency Solvency refers to the company’s ability to pay all its debts whether such liabilities are current or non-current. It is somewhat similar to liquidity, except that solvency involves a longer time horizon. This is measured by any of the following: 1. Debt to equity ratio measures the amount of assets provided by the creditors relative to that provided by the owner (Adequate : 100% or less) March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 17% 22% 19% 16% 4.44:1 3.67:1 4.21:1 4.70:1

2. Debt to asset ratio measures the amount of assets provided by the creditors relative to the total amount of assets of the company. (Adequate: 50% or less) March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 14% 18% 16% 14%

3. Equity to asset ratio measures the amount of assets provided by the owner relative to the total assets of the company (Adequate: 50% or more) March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 86% 82% 84% 86%

III. Test of Profitability Profitability refers to the company’s earning capacity. It also refers to the company’s ability to earn a reasonable amount of income in relation to its total investment. It is measured by any of the following:

1. Return on total assets measures how well management has used its assets under its control to generate income (Adequate: at least equal to the prevailing industry rate). March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 22% 19% 16% 16%

2. Return on owner’s equity measures how much was earned on the owners’ or stockholders’ investment. (Adequate: at least equal to the prevailing industry rate). March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 26% 23% 20% 18%

3. Earnings per share measures the net income per share. March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010 103.37 84.62 67.44 59.66

IV.

Product Standard

1. Teaching performance in the University is constantly being monitored to maintain a satisfactory level of excellence. Teaching Excellence Awardees 581 412 430 377 % toTotal Teaching force 53% 37% 38% 34%

Year 2005-2006 2006-2007 2007-2008 2008-2009

2. The Philippine Association of Colleges and Universities Commission on Accreditation (PACUCOA) has granted Certificates of Level III Reaccredited Status to our BSBA and Liberal Arts Programs. It has also granted Level II Re-accredited Status to our Elementary and Secondary Education Programs. The Philippine Accreditating Association of Schools, Colleges and Universities (PAASCU), also issued a certificate of accreditation (Level II) to the University’s Nursing Program.

3. Performance of FEU graduates in their respective Board Exams is generally better than the national passing rate:

FEU Passing Rate Architecture, June 2009 Architecture, January 2010 Bar Exam., 2009 CPA, October 2009 CPA, May 2010 LET (Elem.), October 2009 LET (Secondary), October 2009 Nursing, June 2009 35% 39% 37% 67% 42% 56% 31% 79%

National Passing Rate 37% 50% 25% 42% 40% 20% 28% 42%

V.

Market Acceptability Below is a comparative schedule of first semester enrollment for the past 4 years: SY 2007-2008 2008-2009 2009-2010 2010-2011 Enrollment 23,928 23,291 22,885 24,633

It was estimated that the first semester enrollment for SY 2010-2011 would be 4.2% higher compared to the previous year. Final figure was better with an increase of 7.63%. All institutes, except for the Institute of Nursing, had a better enrollment. The number of valedictorians, salutatorians and entrance merit scholars (833 in 2007-2008, 798 in 2008-2009 and 663 in 2009-2010) during the past three school years is an indication that FEU is one of the better choices among the various colleges and universities in the metropolis.

Facts ( In Million Pesos )
March 31, 2007 March 31, 2008 March 31, 2009 March 31, 2010

Quick Assets Current Assets Total Assets Current Liabilities Total Liabilities Stockholder's Equity Operating Profit Other Income Profit Before Tax
Net Profit or Profit After Tax
Total Outstanding shares (average)

1,729.0 1,820.1 2,701.2 389.3 389.3 2,311.9 540.6 133.5 674.1 603.5
5,838,440 shares

2,101.0 2,228.7 3,157.3 572.1 572.1 2,585.2 519.6 149.1 668.7 592.9
7,006,368 shares

2,348.2 2,443.9 3,447.3 558.1 558.1 2,889.2 479.8 162.4 642.2 567.0
8,407,408 shares

2,349.7 2,484.5 3,697.7 500.2 500.2 3,197.5 490.5 171.4 661.9 585.2
9,808,448 shares

Other Items

1.

The current economic condition may still affect the sales/revenues/income from operations.

2.

There are no known events that will trigger direct or contingent financial obligation that may be material to the company. There are also no known events that would result in any default or acceleration of an obligation.

3.

There are no material off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships of the company with unconsolidated entities or other persons created during the reporting period.

4.

There are no sales of Unregistered or Exempt Securities including Recent Issuance of Securities Constituting an Exempt Transaction.

5.

A new school site was constructed and opened in June 2010 at the Makati area.

6.

There are no significant elements of income or loss from continuing operations.

7.

Seasonal aspects that has material effect on financial statements: There are three school terms within a fiscal year: the summer (April-May), the first semester (June to October) and the second semester (November to March). The first semester has the highest enrollment at an average of 24,000 students. The second semester is usually at 90% of the first semester’s enrollment while summer is the lowest at around 33%. The full load of a student during the summer is 9 units compared to 21 to 24 during the first and second semesters. The tuition fee increase, if any, usually takes effect during the first semester of the current school year. Thus, old rates are followed during the summer term while new rates are used during the first and second semesters. Since the first quarter is from April to June, the resulting income for the first quarter is expected to be lowest among the four quarters of the fiscal year.

Formula
A. Liquidity 1. Current ratio = Current assets Current Liabilities Quick assets Current Liabilities

2. Acid test ratio

=

B. Solvency 1. Debt to Equity ratio = Total liabilities Total Stockholder's Equity Total liabilities Total assets Total Stockholder's Equity Total assets

2. Debt to Asset ratio

=

3. Equity to Asset ratio

=

C. Profitability 1. Return on Assets = Net Profit Total assets Net Profit Total Stockholder's Equity Net Profit Total Outstanding shares (average)

2. Return on Owner's Equity

=

3. Earning per share

=

- 16 FAR EASTERN UNIVERSITY SCHEDULE OF PROPERTY, PLANT & EQUIPMENT/INVESTMENT PROPERTY SCHOOL YEAR 2009 - 2010 Accumulated Depreciation

Gross Book Value I. PROPERTY, PLANT & EQUIPMENT: LAND BUILDINGS & LAND IMPROVEMENTS
New Technology Building II Alfredo Reyes Hall Leasehold Improvement New Technology Building-Idle Hosp. Bldg. Science Building Arts Building Nicanor Reyes Hall GEC & Educational Hall Grade school S B Covered Walk Covered Passage Fence Campus Pavilion GSB Covered Walk Powerhouse Chapel Others Grandstand 282,459,780.00 115,965,314.00 107,721,258.00 9,182,068.00 101,387,260.00 21,095,350.00 45,025,597.00 617,737.00 3,202,126.00 715,360.00 1,661,650.00 310,000.00 296,196.00 708,691.00 9,613,894.00 1,423,704.00 701,385,985.00

Net Book Value

Location

Condition

98,457,565.00

-

98,457,565.00

Manila

Very Good

55,847,469.00 29,020,575.00 18,647,599.00 536,096.00 16,102,659.00 6,058,121.00 4,377,102.00 525,076.00 592,700.00 546,657.00 309,988.00 263,499.00 296,196.00 857,028.00 49,263.00 134,030,028.00

226,612,311.00 86,944,739.00 89,073,659.00 8,645,972.00 85,284,601.00 15,037,229.00 40,648,495.00 92,661.00 2,609,426.00 168,703.00 1,351,662.00 46,501.00 708,691.00 8,756,866.00 1,374,441.00 567,355,957.00

" " " " " " " " " " " " " " " " " "

" " " " " " " " " " " " " " " " " "

EQUIPMENTS
Furnitures & Fixtures Electrical & Mechanical Information Technology Transportation Equipment Miscellaneous Fixed Assets Instruments & Utensils Tools Linen Museum Collection 16,995,976.00 64,765,492.00 29,995,180.00 11,857,241.00 10,645,124.00 565,999.00 1,177,842.00 299,914.00 5,519,573.00 141,822,341.00 941,665,891.00 11,739,849.00 54,561,591.00 23,221,336.00 8,496,527.00 10,645,124.00 349,528.00 820,838.00 299,914.00 110,134,707.00 244,164,735.00 5,256,127.00 10,203,901.00 6,773,844.00 3,360,714.00 216,471.00 357,004.00 5,519,573.00 31,687,634.00 697,501,156.00 " " " " " " " " " " " " " " " " " "

TOTAL

II. INVESTMENT PROPERTY: LAND COLLEGE OF ENGINEERING BUILDING TOTAL GRAND TOTAL
53,394,726.00 207,626,479.00 261,021,205.00 76,547,067.00 76,547,067.00 53,394,726.00 131,079,412.00 184,474,138.00 " " " "

1,202,687,096.00

320,711,802.00

881,975,294.00

- 17 FAR EASTERN UNIVERSITY, INC. AND SUBSIDIARIES AMOUNTS RECEIVABLE FROM DIRECTORS, OFFICERS, EMPLOYEES, RELATED PARTIES, AND PRINCIPAL STOCKHOLDERS (OTHER THAN AFFILIATES) FOR THE YEAR ENDED MARCH 31, 2010

Name and Designation of Debtor Abellera, Evelyn C. Acab, Deborah A. Acosta, Venina Corazon S. Adolfo, Marlon Africa, Dickenson Y. Agdalpen, Renato C. Agluba, Noreen Agorilla, Delia Albino, Maulynn Albiva, Merlyn T. Alcaraz, Nellie T. Alcazar, Nina Aiza Alfaro, Jennylyn G. Alibania, Hazel J. Alo, James Alolor, Jacqueline G. Amacan, Normita C. Amlog, Jocelyn A. Ampatin, Estrella V. Anastacio, Nanette V. Anastacio, Teresita M. Andres, Jocelyn Anido, Cecilia I. An Lim, Jaime L. Arabia, Julieta S. Aragon, Lloyd Jeffrey Arbizo, Maria Sophia Arejola, Romeo Arquiza, Glenda S. Arribe, Emma B. Asilo, Ma. Cecilia Ataat, Jose Atanque, Aurora L. Austria, Ryan Ayson, Rosalino P., Jr. Azor, Helen A. Azucena, Cesario Baconawa, Ma. Dorina M. Badiable, Charisma Mae Baello, Christine N. Balaoro, Maria Theresa Balaria, Dalmacio P. Bambico, Elma Banal, Enrico R. Barcellano, Francis Barcelona, Samson V. Bartolome, Liezl DM. Batungbakal, Marisa Bautista, Andres D. Bautista, Arlene Mae DG. Bayan, Zenaida E. Belardo, Ma. Jeanette Belleza, Asuncion L.

Beginning Balance 302.23 10,400.00 418.97 (3,560.00) 200.00 2,000.00 63.00 660.00 207.50 1,464.00 8,200.00 415.50 (3,835.00) 1,000.00 600.00 (873.00) (6.45) 45,000.00 26,005.00 (3,309.80) 89.74 90.00 70,422.99 (1,455.72) (1,900.00) 5,000.00 3,695.57 200.00 (9,845.50) 245.00 50.00 200.00 (2,288.82) 5,000.00 14,345.00 (1,528.17) 1,339.20 79.17 5,000.00 (137.50) (200.00) 7,500.00 311.00 (22,171.50) (4,595.00) 200.00 (58.00) 17.50 3,000.00 1,027.00 585.50 1,794.53 (12,289.47)

Additions

Amount Deducted

Deductions Amount Written-Off

Current

Non-Current 302.23 10,400.00 418.97 (3,560.00) 200.00 2,000.00 63.00 660.00 207.50 1,464.00 8,200.00 415.50 (3,835.00) 1,000.00 600.00 (873.00) (3,764.00) 45,000.00 26,005.00 (3,309.80) 89.74 90.00 (150,654.17) (1,455.72) (1,900.00) 5,000.00 3,695.57 200.00 (9,845.50) 245.00 50.00 200.00 (2,288.82) 5,000.00 (31.00) (1,528.17) 1,339.20 79.17 5,000.00 (137.50) (200.00) 7,500.00 311.00 (22,171.50) (4,595.00) 200.00 (58.00) 17.50 3,000.00 1,027.00 585.50 1,794.53 (12,289.47)

Ending 302.23 10,400.00 418.97 (3,560.00) 200.00 2,000.00 63.00 660.00 207.50 1,464.00 8,200.00 415.50 (3,835.00) 1,000.00 600.00 (873.00) (3,764.00) 45,000.00 26,005.00 (3,309.80) 89.74 90.00 (150,654.17) (1,455.72) (1,900.00) 5,000.00 3,695.57 200.00 (9,845.50) 245.00 50.00 200.00 (2,288.82) 5,000.00 (31.00) (1,528.17) 1,339.20 79.17 5,000.00 (137.50) (200.00) 7,500.00 311.00 (22,171.50) (4,595.00) 200.00 (58.00) 17.50 3,000.00 1,027.00 585.50 1,794.53 (12,289.47)

3,757.55

221,077.16

14,376.00

Name and Designation of Debtor Beltran, Charity J. Belza, Mercedes A. Bonaobra, Salvador B. Brawner, Dalisay G. Briones, Domingo J. Brocal, Cynthia M. Buenaventura, Alexander V. Buenaventura, Olga C. Buenavida, Amelia Bueno, Marivic Bulanhagui, Nida B. Bustamante, Ma. Christine H. Caagbay, Elpidio Z. Cabaltica, Leilani A. Cabantac, Ricardo R. Cadorna, Rosemarie S. Cagadas, Ruly Cajucom, Mary Grace A. Calizar, Dexter A. Camacho, Joseph C. Cando, Cromwell N. Canilao, Fe V. Cao, Marilou F. Capacio, Glenn Caramanza, Edward M. Cardona, Enrico Cariquitan, Daisy Carpio, Miguel M. Castanas, Baby Theress Castro, Joeven R, Cauba, Harvey A. Cecilio, Ma. Elaine Cerrer, Redentor A. Chan, Jeffrei Allan Chu, Connie Chua, Ryan Gilbert Clemente, Luisa DC. Codinera, Virgilio B. Cometa, Ma. Victoria D. Concepcion, Gerald G. Concha, Jhonalyn M. Cordero, Nelma Cruz, Anita B. Cruz, Anna Lisa D. Cruz, Christybel O. Cruz, Eloisa G. Cruz, Janet R. Cruz, John Ross R. Cruz, Jose Noel Cruz, Maricar Cruz, Maritess Cruz, Precita P. Cruz, Reynaldo J. Cruz, Rosalie dela Cruz, Sandra Lyn D. Culala, Harold John D. Cunanan, Fernando M. Custodio, Joselito Dado, Rorylyn H. Dapla, Walter Davalos, Zenaida R.

Beginning Balance 175.00 7,060.00 (750.00) 40.00 10,079.00 24.00 7,060.00 27,213.00 165.00 10,000.00 620.00 8,600.00 (5,305.00) 4,210.55 7,060.00 656.20 200.00 440.00 3,126.10 600.00 1,248.00 359,792.04 (4,867.00) (7,300.00) 9,000.00 200.00 308.00 (13,086.34) 82.50 4,555.00 4,364.78 3,795.89 200.00 (6,927.00) 195.20 5,000.00 3,615.90 79.72 (7,775.00) 250.00 10,900.00 1,195.00 25,000.00 (944.00) 928.75 3,362.50 200.00 (4,500.00) 200.00 5,000.00 9.16 (1,400.00) 934.05 6.68 523.01 (5,835.00) 3,309.80 50.00 (1,000.00) 3,851.29 (499.20)

Additions

Amount Deducted

Deductions Amount Written-Off

Current

120.90

280,069.32

716.88

2,600.90

2,284.77

Non-Current 175.00 7,060.00 (750.00) 40.00 9,958.10 24.00 7,060.00 27,213.00 165.00 10,000.00 620.00 8,600.00 (5,305.00) 4,210.55 7,060.00 656.20 200.00 440.00 3,126.10 600.00 1,248.00 79,722.72 (4,867.00) (7,300.00) 9,000.00 200.00 308.00 (13,086.34) 82.50 4,555.00 3,647.90 3,795.89 200.00 (6,927.00) 195.20 5,000.00 1,015.00 79.72 (7,775.00) 250.00 10,900.00 1,195.00 25,000.00 (944.00) 928.75 3,362.50 200.00 (4,500.00) 200.00 5,000.00 9.16 (1,400.00) 934.05 6.68 523.01 (5,835.00) 1,025.03 50.00 (1,000.00) 3,851.29 (499.20)

Ending 175.00 7,060.00 (750.00) 40.00 9,958.10 24.00 7,060.00 27,213.00 165.00 10,000.00 620.00 8,600.00 (5,305.00) 4,210.55 7,060.00 656.20 200.00 440.00 3,126.10 600.00 1,248.00 79,722.72 (4,867.00) (7,300.00) 9,000.00 200.00 308.00 (13,086.34) 82.50 4,555.00 3,647.90 3,795.89 200.00 (6,927.00) 195.20 5,000.00 1,015.00 79.72 (7,775.00) 250.00 10,900.00 1,195.00 25,000.00 (944.00) 928.75 3,362.50 200.00 (4,500.00) 200.00 5,000.00 9.16 (1,400.00) 934.05 6.68 523.01 (5,835.00) 1,025.03 50.00 (1,000.00) 3,851.29 (499.20)

Name and Designation of Debtor Deatras, Jeffrey Delloro, Evelyn Demagante, Rey Francis G. Destura, Blanca Diaz, Aeneas Eli Dingding, Quintin P. Dino, Kristopher Dizon, Mercy G. Doria, Jeanette V. Duena, Teodoro C., Jr. Dulay, Sofronio C. Dumadag, Norma M. Dumas, Marvin C. Dumdumaya, Myline Marie P. Duque, Ronald Echauz, Lydia B. Elman, Mario B. Enriquez, Emiliana Escosia, Aurora A. Eser, Myline S. Espino, Kristine Espinosa, William V. Esquibel, Elizabeth Estabillo, Ma. Luz Estacio, Ma. Vivian G. Esteban, Alejandro L. Estonanto, Mark Ronald L. Estonanto, Mavi Issel L. Estrella, Gloria Estrella, Luisito P. Fabito, Evelyn Fabros, Marietta Federigan, Melissa Felizardo, Dante A. Feraren, Mitchell Fernandez, Benedict T. III Fernandez, Dante Roel Fernando, Gerry V. G Fesalbon, Hermond F. FEU Consumer's Coop. FEU Credit Union Fiesta, Erlinda P. Figer, Reggy C. Flojo, Flordeliza Flores, Hanonica S. Flores, Miguela T. Flores, Roberto C. Florida, Ma. Corazon M. Foe, Jonathan Frades, Francisca B. Frias, Wilmer Fuentes, Ma. Leda J. Galiza, Miguela S. Gallardo, John Garcia, Dolores A. Garcia, Earl Jimson R. Garcia, Lourdes C. Garcia, Muriel B. Garcia, Mylene M. Garcia, Severino M. Garin, May C.

Beginning Balance (2,861.29) 748.00 50.00 224.56 (10,000.00) 70.00 400.00 (800.00) (260.00) (6,000.00) (10,636.95) 27,015.20 150.00 (1,200.00) 50.00 (20,362.80) (1,800.00) 50.00 23,699.77 33,035.86 112.00 6,431.00 5,000.00 529.50 (1,625.01) 5,000.00 374.85 32,221.65 1,460.37 (300.00) 2,163.00 5,295.67 946.25 10,000.00 50.00 (4,400.00) 699.00 967.00 7,729.34 3,295.85 1,560.92 8,532.50 24,300.00 168.50 50.00 (102.50) (32,250.00) (1,800.00) 100.00 (130.00) 5,000.00 7,060.00 45,000.00 13,000.40 50,000.00 6,000.00 16.41 (6,500.00) 10,000.00 330,762.36 25,000.00

Additions

Amount Deducted

Deductions Amount Written-Off

Current

25,798.20

347.85

236,201.52 15,000.00

Non-Current (2,861.29) 748.00 50.00 224.56 (10,000.00) 70.00 400.00 (800.00) (260.00) (6,000.00) (10,636.95) 1,217.00 150.00 (1,200.00) 50.00 (20,362.80) (1,800.00) 50.00 23,699.77 33,035.86 112.00 6,431.00 5,000.00 529.50 (1,625.01) 5,000.00 374.85 32,221.65 1,460.37 (300.00) 2,163.00 5,295.67 946.25 10,000.00 50.00 (4,400.00) 699.00 967.00 7,729.34 3,295.85 1,560.92 8,532.50 24,300.00 168.50 50.00 (102.50) (32,250.00) (1,800.00) 100.00 (477.85) 5,000.00 7,060.00 45,000.00 13,000.40 50,000.00 6,000.00 16.41 (6,500.00) 10,000.00 94,560.84 10,000.00

Ending (2,861.29) 748.00 50.00 224.56 (10,000.00) 70.00 400.00 (800.00) (260.00) (6,000.00) (10,636.95) 1,217.00 150.00 (1,200.00) 50.00 (20,362.80) (1,800.00) 50.00 23,699.77 33,035.86 112.00 6,431.00 5,000.00 529.50 (1,625.01) 5,000.00 374.85 32,221.65 1,460.37 (300.00) 2,163.00 5,295.67 946.25 10,000.00 50.00 (4,400.00) 699.00 967.00 7,729.34 3,295.85 1,560.92 8,532.50 24,300.00 168.50 50.00 (102.50) (32,250.00) (1,800.00) 100.00 (477.85) 5,000.00 7,060.00 45,000.00 13,000.40 50,000.00 6,000.00 16.41 (6,500.00) 10,000.00 94,560.84 10,000.00

Name and Designation of Debtor Genota, Jaime F. Gil, Aurora H. - PMSI Go-Monilla, Ma. Joycelyn A. Gonzaga, Jemabel Gonzales, Fortune N. Gubio, James B. Guevarra, Remedios P. Gupit, Dolores S. Gutang, Marco P. Guzman, Jericho D. Guzman, Jimmy Hernandez, Alma R. Hernandez, Angeline A. Hilario, Jacqueline E. Hore, Lelioso G. Ibasco, Lourdes Ignacio, Lourdes D. Iguas, Jose A. Imbang, Ma. Nathalie A. Inciong, Cherry Wyne E. Irabagon, Miramar Isidro, Rosalina B. Israel, Marietta C. Jabile, Joel E. Javier, Anabella G. Jesus, Angelita SD. Jimenez, Arsenia S. Jimenez, Marietta Jonson, Joyce Lisa B. Jose, Corazon V. Jose, Haidee R. Junio, Nenitha L. Kenny, Isabel Lagula, Janette Lamboson, Roger C. Lantin, Rommel Lapastora, Milagros P. Lapuebla, Alfredo N. f Larano, Leonora Larda, Edmundo D. Laudato, Emmanuel N. Laurente, Jaime R. Lauro, Jocelyn P. Lazaro, Ma.Teresita A. Legaspi, Heidi Leon, Emma Rose H. Lewis, Salome Liggayu, Michael Lim, Nathaniel L. Lintag, Graciel A. Listana, Mary Rose Lizaso, Marcelino N. Lopez, Anastacio, Jr. L. Lopez, Antonio P., Jr. Lopez, Fernando M. Lopez, Mercedita P. Loza, Luningning R. Lugtu, Blyth Macadangdang, Luzviminda Macalaguing, Mateo D. Jr. Macaraeg, Paul

Beginning Balance 822.32 7,060.00 280.31 505.00 397.50 (6,000.00) 4,297.00 (26,896.39) (2,353.33) 8,460.00 150.00 (1,337.50) 7,491.70 662.50 300.00 350.00 (350.00) (980.00) 3,772.50 7,500.00 6,000.00 (593.75) 5,000.00 50.00 8,162.50 0.08 5,970.00 2,290.86 (48,424.97) 2,058.57 (1,446.80) 767.00 14,000.00 117.50 (4,000.00) 1,383.31 7,406.80 2,490.00 5,848.75 (1,500.00) (1,200.00) 1,650.25 10,856.00 3,205.00 1,000.00 16,500.00 1,147.50 200.00 317.00 1,180.16 1,012.50 400.00 (230.00) 15.34 250.00 252.50 748.00 5.00 (137.50) 10,000.00 6,436.23

Additions

Amount Deducted

Deductions Amount Written-Off

Current

816.17

5,335.00 121.60

Non-Current 822.32 7,060.00 280.31 505.00 397.50 (6,000.00) 4,297.00 (26,896.39) (2,353.33) 8,460.00 150.00 (1,337.50) 6,675.53 662.50 300.00 350.00 (350.00) (980.00) 3,772.50 7,500.00 6,000.00 (593.75) 5,000.00 50.00 8,162.50 0.08 5,970.00 2,290.86 (48,424.97) 2,058.57 (1,446.80) 767.00 14,000.00 117.50 (4,000.00) 1,383.31 2,071.80 2,368.40 5,848.75 (1,500.00) (1,200.00) 1,650.25 10,856.00 3,205.00 1,000.00 16,500.00 1,147.50 200.00 317.00 1,180.16 1,012.50 400.00 (230.00) 15.34 250.00 252.50 748.00 5.00 (137.50) 10,000.00 6,436.23

Ending 822.32 7,060.00 280.31 505.00 397.50 (6,000.00) 4,297.00 (26,896.39) (2,353.33) 8,460.00 150.00 (1,337.50) 6,675.53 662.50 300.00 350.00 (350.00) (980.00) 3,772.50 7,500.00 6,000.00 (593.75) 5,000.00 50.00 8,162.50 0.08 5,970.00 2,290.86 (48,424.97) 2,058.57 (1,446.80) 767.00 14,000.00 117.50 (4,000.00) 1,383.31 2,071.80 2,368.40 5,848.75 (1,500.00) (1,200.00) 1,650.25 10,856.00 3,205.00 1,000.00 16,500.00 1,147.50 200.00 317.00 1,180.16 1,012.50 400.00 (230.00) 15.34 250.00 252.50 748.00 5.00 (137.50) 10,000.00 6,436.23

Name and Designation of Debtor Macario, Christopher Magayaga, Lea Q. Magtoto, Eliseo Malinao, Marivic Maliwat, Herminia I. Malot, Edmund Francis Manalili, Golda P. Manansala, Paolo Mangahas, Roser Benjamin Manicsic, Teresa B. Manigan, Alma C. Manlapaz, Divine Grace Manlapaz, Victor Manrique, Elenita Mazo, Flaviano S. MC Entee, Keneline M. Medina, Joy E. Medina, Ma. Ana Karina S. Medina, Merle S. Medrano, Rosalinda Membrot, Ezitiel R. Mendoza, Cecilia H. Mendoza, Florina M. Mendoza, Jobert Menorca, Emmanuel S. Mercado, Annabelle K. Miguel, Emmanuel C. Milarpis, Joel Miranda, Dennis Monong, Cora Morimonte, Bonifacio D. Mortell, Gideon Nagal, Glenn Z. Narval, Antonio G. Natera, Malvin G. Nava, Delfin D. Nicer, Joselito C. Nietes, Raymond G. G Ninobla, Magnolia Ninubla, Shiela Nolasco, Maria Sylva Noriega, Mariwilda I. Nuestro, Sarah Joyce Nulla, Mila R. Ocampo, Wilfredo T. Olipas, Lorina L. Ong, Emil Orjalo, Victoria G. Ortiz, Jose Ortiz, Milixa Lourdes B. Oyzon, Gualberto J. Padilla, Maria Eleanor T. Pahutan, Ludivinia M. Palparan, Karoline L. Pamintuan, Jose Edmundo E. Pante, Ronald S. Paraiso, Lourdes Oliva C. Paras, Renato Pasag, Maribeth Pascua, Jennifer J. Pascual, Perfecto

Beginning Balance 50.00 (7,059.99) 200.00 110.00 607,752.15 100.00 50.00 81.58 1,397.00 84.00 7.61 5,000.00 1,200.00 17,000.00 780.00 3,928.90 (409.52) 25.94 (1,075.25) 935.50 2,150.00 (6,186.77) 300.00 10,000.00 (250.00) 3,758.55 6,619.60 4,000.00 4,100.00 6,000.00 500.00 5,237.46 330,762.36 520.80 4,121.97 767.00 (65,500.85) 16,689.30 170.00 1,018.53 1,775.00 (7,306.55) 10,947.97 21,433.75 1,150.00 200.00 417.53 200.00 (4,882.00) 5,000.00 3,002.80 1,430.50 (200.00) (900.00) 100.00 600.00 84,847.50 50,000.00 315.00 40,977.91 350.00

Additions

Amount Deducted

Deductions Amount Written-Off

Current

206,292.60

236,201.52

65.74

Non-Current 50.00 (7,059.99) 200.00 110.00 401,459.55 100.00 50.00 81.58 1,397.00 84.00 7.61 5,000.00 1,200.00 17,000.00 780.00 3,928.90 (409.52) 25.94 (1,075.25) 935.50 2,150.00 (6,186.77) 300.00 10,000.00 (250.00) 3,758.55 6,619.60 4,000.00 4,100.00 6,000.00 500.00 5,237.46 94,560.84 520.80 4,121.97 767.00 (65,500.85) 16,689.30 170.00 1,018.53 1,775.00 (7,306.55) 10,882.23 21,433.75 1,150.00 200.00 417.53 200.00 (4,882.00) 5,000.00 3,002.80 1,430.50 (200.00) (900.00) 100.00 600.00 84,847.50 50,000.00 315.00 40,977.91 350.00

Ending 50.00 (7,059.99) 200.00 110.00 401,459.55 100.00 50.00 81.58 1,397.00 84.00 7.61 5,000.00 1,200.00 17,000.00 780.00 3,928.90 (409.52) 25.94 (1,075.25) 935.50 2,150.00 (6,186.77) 300.00 10,000.00 (250.00) 3,758.55 6,619.60 4,000.00 4,100.00 6,000.00 500.00 5,237.46 94,560.84 520.80 4,121.97 767.00 (65,500.85) 16,689.30 170.00 1,018.53 1,775.00 (7,306.55) 10,882.23 21,433.75 1,150.00 200.00 417.53 200.00 (4,882.00) 5,000.00 3,002.80 1,430.50 (200.00) (900.00) 100.00 600.00 84,847.50 50,000.00 315.00 40,977.91 350.00

Name and Designation of Debtor Patricio, Natividad Paz, Rosalinda Z. Pekson II, Enrique Arvin Perez, Crismin Perez, Jose R. Jr. Pimentel, Stephanie Pineda, Rodolfo G. Ponsaran, Levy C. Portiz, Ellen Pring, Melanie Publico, Hilario Q. Puertollano, Derek Pulmano, Zelmo Querijero, Glen Hilario M. Quiambao, Arlene Quijano, Virginia A. Quintanar, Janeth A. Quinto, Myrna P. Quirimit, Luzviminda Ragonjah, Homer Jay D. Ramon, Elizabeth A. de - PMSI Ramones, Rhozallino C. Ramos, Erlinda L. Ramos, Leonora A. Ramos, Ma. Theresa L. Rana, Aurelio Y. Rapirap. Raquel T. Rasalan, Julia Remiendo, Noraliza A. Remigio, Warley Retardo, Victor C. Reyes, Byron M. Reyes, Herbert D. Reyes, Melodia S. Reyes, Ruby Reymundo, Samuel Rivera, Myrna T. Rizada, Ryan Joseph Ronda, Ma. Lea A. Rosa, Giovanni dela Rosario, Alma del - PMSI Rosario, Hilario - PMSI Rosete, Dwight Benedict N. Roxas, Ronald L. Rubillos, Leonardo I. Ruzol, Hipolito S. Sabaupan, Sylvette G. Sabaybay, Jocelyn L. Saldua, Eder John Salonga, Lea Salud, Alann M. Salvacion, Dennis C. Salvador, Esther D. San Pablo, Ma.Cecilia A. Sante, Nova C. Santiago, Christopher G. Santiago, Edwin B. Santiago, Genine Santillan, Vivian M. Santos, Arwind Santos, Carmelita C.

Beginning Balance 598.75 8,805.00 (43,488.12) 10,591.34 52.20 285.00 (149.99) 2,450.00 207.50 5,000.00 5,376.50 250.00 8,000.00 5,000.00 358.50 7,220.00 5,366.56 7,060.00 1,942.77 15.00 7,060.00 5,000.00 10,000.00 1,532.89 853.81 (3,132.92) 8,288.00 772.50 10.00 100.00 (600.00) 200.00 4,555.00 6,834.00 572.50 50.00 (1,420.25) 9,159.80 300.00 551.63 (7,060.00) 14,120.00 (500.00) 8,000.00 (600.00) 300.00 23,364.75 666.00 (5,000.00) 50.00 (520.00) (3,000.00) 18.00 492.25 (981.25) 9,638.17 50.00 1,130.00 190.00 49,990.00 (1,391.64)

Additions

Amount Deducted

Deductions Amount Written-Off

Current

402.25

362.46

Non-Current 598.75 8,805.00 (43,488.12) 10,591.34 52.20 285.00 (149.99) 2,450.00 207.50 5,000.00 5,376.50 250.00 8,000.00 5,000.00 358.50 7,220.00 5,366.56 7,060.00 1,942.77 15.00 7,060.00 5,000.00 10,000.00 1,532.89 853.81 (3,132.92) 8,288.00 772.50 10.00 100.00 (600.00) 200.00 4,555.00 6,834.00 572.50 50.00 (1,420.25) 9,159.80 300.00 551.63 (7,060.00) 14,120.00 (500.00) 8,000.00 (600.00) 300.00 23,364.75 666.00 (5,000.00) 50.00 (520.00) (3,000.00) 18.00 90.00 (981.25) 9,638.17 50.00 767.54 190.00 49,990.00 (1,391.64)

Ending 598.75 8,805.00 (43,488.12) 10,591.34 52.20 285.00 (149.99) 2,450.00 207.50 5,000.00 5,376.50 250.00 8,000.00 5,000.00 358.50 7,220.00 5,366.56 7,060.00 1,942.77 15.00 7,060.00 5,000.00 10,000.00 1,532.89 853.81 (3,132.92) 8,288.00 772.50 10.00 100.00 (600.00) 200.00 4,555.00 6,834.00 572.50 50.00 (1,420.25) 9,159.80 300.00 551.63 (7,060.00) 14,120.00 (500.00) 8,000.00 (600.00) 300.00 23,364.75 666.00 (5,000.00) 50.00 (520.00) (3,000.00) 18.00 90.00 (981.25) 9,638.17 50.00 767.54 190.00 49,990.00 (1,391.64)

Name and Designation of Debtor Santos, Danilo B. Santos, Dinia Santos, Glecerio Santos, Mary Lord Santuile, Aida M. Sapitula, Preciosa S. Sarita, Larry Sarmiento, Lina Q. Sayco, Marjorie Sido, Ma. Victoria P. Sin, Glenda S. Sinang, Rolando R. Sincioco, Mary Ann Siongco, Ma. Teresita Sioson, Annabelle P. Sioson, Yolanda J. Soliman, Norma P. Sopoco, Anna Marie M. Soria, Eulegio E. Sta. Ana, Noemi V. Tabaloc, Edgardo U. Jr. Tabaniag, Flordeliza Tablizo, Anne Margareth Tagle, Susan M. Tamay, Shariff M. Tamayao, Olivia E. Tan, Carolina M. - PMSI Tan, Cedrick - PMSI Tan, Derrick - PMSI Tan, Mary Joyce P.- PMSI Tan, Ryanne Tapalgo, Elyn M. Jr. Tecson, Rhenalyn Teoxon, Lucio Tibayan, Florencia C. Tiburcio, Jaime, Jr. Timbugan, Josefina - PMSI Tirazona, Renato A. Togado, Illumar I. Tomas, Eden A. Torres, Maruja T. Trinidad, Alfredo D. Trinidad, Josefina Tuazon, Nino M. Unidad, Kim Ryan Ureta, Peter Usita, Laarni P. Uy, Moira B. Uyson, Leslie Marie C. Valdez, Ferdinand Valdez, Gloria Valencia, Jean Pauline S. Valencia, Ma. Theresa L. Valenzuela, Edwin E. Valmonte, Alejandra Monica Varilla, Edglyn G. Vera, Antonio Vera, Jose Rizalito c. Vera, Sebastian Verances, Ma. Laline V. Vergara, Flocerfida - PMSI

Beginning Balance 2,645.25 251.25 200.00 5,000.00 8,000.00 1,586.57 50.00 5,691.62 206.50 125.80 7,060.00 7,263.50 207.50 2,000.00 60.00 57,480.00 7,060.00 1,890.00 1,000.00 311.00 51.58 63.75 206.50 5,051.41 5,000.00 4,996.60 7,060.00 (4,875.00) 15,187.00 7,060.00 117.50 (2,657.50) 311.00 379.82 305.00 2,007.50 7,060.00 1,992.92 4,000.00 943.00 206.50 329.07 170.00 356.25 100.00 9,397.10 23,069.00 4,000.00 15,372.00 1,000.00 1,237.50 (5,198.00) 530.00 300.00 205.25 5,140.61 0.03 (5,400.00) (2,300.00) (841.50) (35,220.00)

Additions

Amount Deducted

Deductions Amount Written-Off

Current

4,753.25

6,113.92

Non-Current 2,645.25 251.25 200.00 5,000.00 8,000.00 1,586.57 50.00 938.37 206.50 125.80 7,060.00 7,263.50 207.50 2,000.00 60.00 57,480.00 7,060.00 1,890.00 1,000.00 311.00 51.58 63.75 206.50 5,051.41 5,000.00 4,996.60 7,060.00 (4,875.00) 15,187.00 7,060.00 117.50 (2,657.50) 311.00 379.82 305.00 2,007.50 7,060.00 1,992.92 4,000.00 943.00 206.50 329.07 170.00 356.25 100.00 9,397.10 23,069.00 4,000.00 9,258.08 1,000.00 1,237.50 (5,198.00) 530.00 300.00 205.25 5,140.61 0.03 (5,400.00) (2,300.00) (841.50) (35,220.00)

Ending 2,645.25 251.25 200.00 5,000.00 8,000.00 1,586.57 50.00 938.37 206.50 125.80 7,060.00 7,263.50 207.50 2,000.00 60.00 57,480.00 7,060.00 1,890.00 1,000.00 311.00 51.58 63.75 206.50 5,051.41 5,000.00 4,996.60 7,060.00 (4,875.00) 15,187.00 7,060.00 117.50 (2,657.50) 311.00 379.82 305.00 2,007.50 7,060.00 1,992.92 4,000.00 943.00 206.50 329.07 170.00 356.25 100.00 9,397.10 23,069.00 4,000.00 9,258.08 1,000.00 1,237.50 (5,198.00) 530.00 300.00 205.25 5,140.61 0.03 (5,400.00) (2,300.00) (841.50) (35,220.00)

Name and Designation of Debtor Vergara, Melchor - PMSI Vergara, Oliver Francis - PMSI Vergara, Regidor - PMSI Vergara, Romeo - PMSI Verzosa, Bobby Vibar, Enrico B. Vicera, Desmond M. Victoria, Michael S. Villaceran, Eugenio V. Villamiel, Carminda Villanueva, Ace R. Villanueva, Jonas V. Villanueva, Ma. Concepcion Villapando, Marimel A. Villar, Gerald Vivas, Cherry Mae Woolsey, Nida B. Yabis, Geraldine Yang, Gloria Yanzon, Gina Yap, Caridad P. Yatco, Ma. Carmen S. Zaldivar, Ramil P. Zulueta, Michael R. P FACULTY ADVANCES Aguilos, Susan S. Alona, Elizabeth V. Altares, Priscilla S. Anastacio, Nanette v. Ansano, Bela R. Austria, Rex S. Avengoza, Rosalie J. Badiola, Jose Luisito V. Bautista, Mary Grace S. Cano, Charito F. Castro, Lawrence Christopher Cruz, Sandra Lyn E. Dimalibot, Martina Geraldine Q. Estacio, Ma. Vivian G. Gariguez, Mariflor N. Garin, May C. Isip, Amando F. Javier, Nancy Joan M. Jose, Franco C. Malay, Ernesto B. Martinez, Zenaida S. Minas, Geraldine C. Narciso, Wilfrida B. Naui, Elizabeth S. Pacot, Marilou M. Permalino, Albert Emmanuel S. Sagarino, Gavino N. Salcedo, Liezel Donatila M Salunga, Loida P. Salvado, Rowena E. Santos, Buenvenida Santos, Katherine Vera A.

Beginning Balance (7,060.00) (7,060.00) (7,060.00) 21,180.00 100.00 7,200.00 200.00 (640.00) (18,230.98) (29,288.90) 26.98 (13,073.00) 5,000.00 200.00 7,060.00 300.00 278.00 97.50 45,000.00 500.00 (4,841.00) 29,320.00 5,000.00 7,000.00 2,825,974.91

Additions

Amount Deducted

Deductions Amount Written-Off

Current

7,060.00

Non-Current (7,060.00) (7,060.00) (7,060.00) 21,180.00 100.00 7,200.00 200.00 (640.00) (25,290.98) (29,288.90) 26.98 (13,073.00) 5,000.00 200.00 7,060.00 300.00 278.00 97.50 45,000.00 500.00 (4,841.00) 29,320.00 5,000.00 7,000.00 1,556,099.35

Ending (7,060.00) (7,060.00) (7,060.00) 21,180.00 100.00 7,200.00 200.00 (640.00) (25,290.98) (29,288.90) 26.98 (13,073.00) 5,000.00 200.00 7,060.00 300.00 278.00 97.50 45,000.00 500.00 (4,841.00) 29,320.00 5,000.00 7,000.00 1,556,099.35

-

1,269,875.56

-

2,983.13 (5,295.67) (37.62) (5,295.67) 11,590.42 (2,160.00) (6,518.64) (0.52) (5,295.67) 847.27 1,765.22 44,290.05 1,926.98 3,832.70 10,591.34 5,534.22 (1,323.91) 5,295.67 (6,619.59) 20,910.00 (7,943.50) (2,100.00) 5,295.67 (50.00) (7,943.50) 7,060.89 (5,295.67) 17,190.24 14,960.54 22,160.26 3,971.75 (32.50)

2,983.13 (5,295.67) (37.62) (5,295.67) 11,590.42 (2,160.00) (6,518.64) (0.52) (5,295.67) 847.27 1,765.22 44,290.05 1,926.98 3,832.70 10,591.34 5,534.22 (1,323.91) 5,295.67 (6,619.59) 20,910.00 (7,943.50) (2,100.00) 5,295.67 (50.00) (7,943.50) 7,060.89 (5,295.67) 17,190.24 14,960.54 22,160.26 3,971.75 (32.50)

2,983.13 (5,295.67) (37.62) (5,295.67) 11,590.42 (2,160.00) (6,518.64) (0.52) (5,295.67) 847.27 1,765.22 44,290.05 1,926.98 3,832.70 10,591.34 5,534.22 (1,323.91) 5,295.67 (6,619.59) 20,910.00 (7,943.50) (2,100.00) 5,295.67 (50.00) (7,943.50) 7,060.89 (5,295.67) 17,190.24 14,960.54 22,160.26 3,971.75 (32.50)

Name and Designation of Debtor Santos, Melody Christian R. Simo, Rickson Jay Tia, Christopher B. Trinidad, Josefina M. Villanueva, Rosalie R. Villegas, Ma. Marissa M. Villorente, Elizabeth F. Vinluan, Renato A. Total Ampatin, Estrella V. Cabasada, Albert R. III Caratao, Jinky Rosario Cruz, Reynaldo J. Diwa, Alvin S. Frades, Francisca B. Garin, May C. Molina, Mark Oliver P. Paraiso, Lourdes Oliva Pizaro, Arthur Sarabia, Juliet S. Soria, Eulegio Tolentino, Rosula R. Villanueva, Romulo Villar, Gerald Yang, Gloria G. P

Beginning Balance 3,909.51 (21,182.72) (0.03) 1,690.82 (10,591.34) (10,591.34) 1,323.91 2,028.62 2,916,856.23 (560.00) 26,099.35 6,800.00 (5,000.00) 31,783.91 (451.32) 46,130.23 (5,232.06) 0.20 1,200.00 4,755.00 1,777.00 8,646.70 5,212.00 20,388.77 11,760.00

Additions

Amount Deducted

Deductions Amount Written-Off

Current

Non-Current 3,909.51 (21,182.72) (0.03) 1,690.82 (10,591.34) (10,591.34) 1,323.91 2,028.62 1,646,980.67 (560.00) 26,099.35 6,800.00 (5,000.00) 31,783.91 (451.32) 46,130.23 (5,232.06) 0.20 1,200.00 4,755.00 1,777.00 8,646.70 5,212.00 20,354.47 11,760.00

Ending 3,909.51 (21,182.72) (0.03) 1,690.82 (10,591.34) (10,591.34) 1,323.91 2,028.62 1,646,980.67 (560.00) 26,099.35 6,800.00 (5,000.00) 31,783.91 (451.32) 46,130.23 (5,232.06) 0.20 1,200.00 4,755.00 1,777.00 8,646.70 5,212.00 20,354.47 11,760.00

-

1,269,875.56

P

-

34.30

TOTAL

P

3,070,166.01

-

1,269,909.86

P

-

1,800,256.15

1,800,256.15

JANUARY 2008 - MARCH 2010

Abala, GenP Abanco, Nini Paz M. Abella, Bernard Adil, Mary Antoinette Agnes, Reynold D. Agudong, Julito A. Aguila, Fitzgerald Aguilar, Manuel P. Aguilar, Sarah Joy A. Agustin, Ma. Theresa A. Ahmadzadeh, Teresita Alagao, Ma. Cristina T. Alarde, Crispulo, Jr. Alcoberes, Philip Jay N. Alcoriza, Jennifer M. Aldeguer, Christine Carpio Alimuin, Sylvia A. Alvarez, Alfredo R. Andrada, Gaylene H. Angel, Heherson M. Angeles, Lemuel Anido, Cecilia I. An Lim, Jaime L. Apolonio, Jerry D.

155.00 (155.00) 3.88 200.00 30,128.00 1,480.00 11,000.00 1,500.00 3,823.50 19,650.00 10,792.75 1,094.45 550.00 76,565.00 25,128.00 1,895.09 1,500.00 10,465.05 810.62 367.01 60,695.85

P

155.00 (155.00) 3.88 200.00 5,000.00 1,480.00 9,104.91 3,823.50 19,650.00 327.70 994.45 366.67 16,529.15 (1,000.00) (600.00)

710.62 183.68 660.00 (1,000.00) (600.00) 1,350.12 (733.40)

4,386.67 119,500.00

4,140.00 8,682.00 20,588.20 1,147.00 3,243.00 600.00 1,009,285.90 88,182.00 431.50

1,780.00 6,566.12 18,961.45 947.00 281.25 100.00 5,823.82 176,682.00 281.50

2,360.00 3,466.00 1,626.75 (533.40) 2,961.75 500.00 1,007,848.75 31,000.00 150.00

155.00 (155.00) 3.88 200.00 5,000.00 1,480.00 9,104.91 3,823.50 19,650.00 327.70 994.45 366.67 16,529.15 (1,000.00) (600.00) 2,360.00 3,466.00 1,626.75 (533.40) 2,961.75 500.00 1,007,848.75 31,000.00 150.00

Name and Designation of Debtor Arabia, Julieta S. Arago, Teodulfo A. Areola, Vina Arquiza, Glenda Arriola, Eric John C. Asis, Amelia B. Atanacio, Heidi C. Atanque, Aurora L. Ayson, Paulino Ayson, Rosalino P. Baccay, Yolanda A. Badiola, Jose Luisito V. Baello, Christine N. Baja, Lauro Balaoro, Maria Theresa Balarosan, Edna G. Balita, Paulita C. Bantayan, Maria Emilia R. Baquiran, Leonidez Barro, Liana M. Barroga, Junalyn Batan, Ericson S. Batoon, Allen Bautista, Juan Andres Baylon, Milagros D. Bejo, Noel B. Belardo, Amy G. Belaya, Vina Grace C. Belleza, Asuncion L. Bello, Yolanda L. Beltran, Edna M. Beltran, Manuel D. Belza, Mercedes A. Bengo, Manuelito V. Bernado, Norma V. Bernardo, Rodrigo G. Bilan, Jeanette L. Bingculado, Roger B. Bisco, Melanie C. Bolo, Benjamin A. Botaslac, Benjamin D. Brillo, Eva B. Brillon, Cherish Aileen A. Buen, Jennifer T. Buenafe, Ma. Belinda G. Buendia, Ma. Esperanza Bueno, Marivie Buot, Joseph Buquid, Apolonio A. Burac, Joseph T. Bustamante, Maria Christine H. Caagbay, Elpidio Z. Cabaltica, Leilani A. Cabasada, Albert R. III Cabilto, Gerardo P. Cabinta, Ma. Dolores B. Cabrera, Alicia M. Cabrera, Roberlyn V. Cada, Leonardo F. Cajucom, Cherry S. Cajucom, Marie Christine B.

Beginning Balance 16,629.90 7,700.00 73,000.00 (200.00)

Additions 92,992.80 2,253.40 179,724.25 200.00 5,064.50 3,467.00 32.00 632.75 12,757.30 8,611.05 22,271.00 996.25 100.00 28,970.00 46,000.00

Amount Deducted 83,336.90 1,178.00 199,130.25 200.00 64.50 18,632.00 15,956.28 27,057.55 18,610.65 100.00 13,314.59 58,921.96 2,639.92 10,175.02

Deductions Amount Written-Off

Current 26,285.80 1,075.40 53,594.00

Non-Current

7,700.00 (200.00) 5,000.00 3,467.00 (3,810.60) 632.75 6,828.65 1,553.50 200.00 3,660.35 996.25 (200.00) 17,848.75 21,786.77 5,710.08 200.00 920.00 145.00 1,516.60 850.00 10,572.00 297.50 4,604.50 23,665.50 4,412.70 93,547.74 8,492.00 37,985.00 550.00 62,089.09 36,653.99 13,400.90 6,999.00 1,326.18 38,000.00 10,000.00 69,121.09 27,959.00 100,000.00 6,948.00 1,773.76 20,000.00 10.00 297.00 634.50 1,750.00 2,295.90 96,900.74 5,078.75 32,985.00 600.00 64,257.91 32,126.84 8,702.35 10,562.00 0.50 3,970.00 23,665.50 254.40 37,458.00 3,413.25 12,500.00 (50.00) 12,414.98 4,527.15 4,698.55 6,999.00 1,326.18 18,000.00 10,000.00 6,666.68 25,000.00 6,666.67 1,919.00 1,693.75 20,000.00 370.75 600.00 18,653.00 32,215.50 49,649.00 71,000.00 145,183.50 24.00 12,000.00 65,312.00 7,100.65 36,000.00 13,650.66 14,590.00 18,153.00 8,331.80 41,354.00 58,000.00 163,721.42 24.00 21,800.00 37,812.00 4,212.00 4,000.00 12,463.76 11,327.92 500.00 23,883.70 8,895.00 13,000.00 38,848.75 (12,300.00) 1,000.00 27,500.00 2,888.65 32,000.00 1,186.90 7,648.75 850.00

14,789.40 10,027.63 20,000.00 200.00

(200.00) 2,193.34 34,708.73 8,350.00 200.00 145.00 1,516.60 850.00

11,095.02

1,750.00 (1,862.40) 40,811.00 7,500.00 14,583.80

21,412.00 2,500.00

21,412.00

22,500.00 62,454.41 2,959.00 93,333.33 5,029.00 80.01

(25.00)

(25.00)

370.75 600.00

600.00 57,386.67 (12,300.00) 10,800.00

4,386.67 850.00

Ending 26,285.80 1,075.40 7,700.00 53,594.00 (200.00) 5,000.00 3,467.00 (3,810.60) 632.75 6,828.65 1,553.50 200.00 3,660.35 996.25 (200.00) 17,848.75 21,786.77 5,710.08 200.00 920.00 145.00 1,516.60 850.00 10,562.00 0.50 3,970.00 23,665.50 254.40 37,458.00 3,413.25 12,500.00 (50.00) 12,414.98 4,527.15 4,698.55 28,411.00 1,326.18 18,000.00 10,000.00 6,666.68 25,000.00 6,666.67 (25.00) 1,919.00 1,693.75 20,000.00 370.75 600.00 500.00 23,883.70 8,895.00 13,000.00 38,848.75 (12,300.00) 1,000.00 27,500.00 2,888.65 32,000.00 1,186.90 7,648.75 850.00

Name and Designation of Debtor Camaclang, Merlita J. Camana, Love V. Campomanes, Carolina Canare, Sabino C. Cando, Cromwell N. Canilao, Fe V. Canosa, Michelle Cao, Marilou F Capacio, Glenn Capili, Leslie Ann V. Capili, Regina R. Carino, Raquel G. Carlos, Salome S. Carpio, Miguel M. Carpio, Rustica Castillo, Carolina Castro, Joeven R. Casuco, Leonida S. Cayetano, Lovella M. Chastein, Cherry R. Chua, Wilson S. Ciubal, Willie Y. Corpuz, Cristina R. Cotorno, Lorine B. Cruz, Benjamin F. Cruz, Christybel O. Cruz, Noel L. Cruz, Rebecca S. Cuibillas, Jorge P. Culala, Harold John D. Dacayanan, Marites G. Daguman, Ian Dalton, Juanita Damasco, Charmaine Gay Davalos, Zenaida R. David, Melvira C. Decena, May Celine Defino, Lorna M. f Destura, Blanca Diamante, Fernan M. Diaz, Joel Dimaano, Jessalyn Dimalibot, Ma. Martina Geraldine Diorico, Marites C. Dios, Rolando Gerald Dizon, Kenneth Earl I. Doble, Jon Derek Doctolero, Priscila L. Domingo, Ernesto E. Dominguez, Rex S. Dones, Irene P. Dublin, Marietta T. Ducut, Mirela G. Dulalia, Nelson M. Durban, Joel M. Dy Kam, Felicidad Echauz, Lydia B. Eleazar, Glenda C. Enriquez, Rex Cezar P. Ermitano, Nolivienne C. Escobia, Irma L.

Beginning Balance 6,569.62 2,675.00 (375.00) 4,000.00 104,386.67

Additions 63,534.00 27,888.25 1.00 36,696.85 8,970.00 20,000.00 18,925.75 100.00 6,623.85 4,598.00 498.50 53,124.50 45,937.00 8,970.02 35,002.50 25,000.00 5,000.00 136.00 650.00 13,600.00 25,000.00 45,000.00 46,956.47 30,992.50 8,464.50 30,000.75 5,014.50 617.50 1,022.00

Amount Deducted 46,103.62 26,775.75 6.00 37,000.00 105,507.92 18,425.75 1,920.00 3,464.87 498.50 204.50 34,937.00 6,280.06 8,002.50 29,681.81 4,450.00 3,886.00 150.00 8,800.00 30,000.00 40,500.00 66,796.13 992.50 5,043.75 21,000.75 5,014.50

Deductions Amount Written-Off

Current 24,000.00 3,787.50 (5.00) 3,696.85 7,848.75 20,000.00 500.00

Non-Current

(375.00)

(5,000.00) (418.13) (850.00) 1,788.00 24,000.00 5,158.79 (14,614.40) 6,000.00 10,000.00 3,150.00 (1,820.00) 2,740.85 4,598.00

(5,000.00)

(850.00) 52,920.00 1,788.00 35,000.00 7,848.75 12,385.60 1,318.19 10,000.00 550.00 (600.00) 500.00 4,800.00 (5,000.00) 4,500.00 594.25 30,000.00 3,420.75 9,000.00 (237.04) 650.00 617.50 (617.50) 250.00 (335.00) 272.00

20,433.91

(237.04) 650.00

1,639.50

250.00 (335.00) 272.00 10,749.58 850.00 15,000.00 200.00 24,487.60 200.00 200.00 52,800.00 737.25 200.00 39,100.00 1,344.00 1,756.15 30,342.20 24,000.00 664.50 63,439.16 28,844.00 68.00 49,398.10 1,450.00 966.60 1,025.00 50,000.00 43,967.11 975.00 16,250.01 28,800.00 72.75 200.00 0.50 (100.00) 1,688.15 18,108.70 (1,450.00) (966.60) (1,025.00) 57,549.35 35,404.31 15,812.50 8,675.10 15,000.00 492.00 74,690.25 26,430.20 222.00 51,638.43 5,672.00 270.00 33,801.40 20,758.20

850.00 200.00 200.00 200.00

24,339.66 27,400.00 37,164.60

50,000.00 34,386.67 (200.00) (237.50)

57,549.35 44,984.75 975.00 17,500.01

(200.00) (237.50) 1,250.00

Ending 24,000.00 3,787.50 (5.00) (375.00) 3,696.85 7,848.75 20,000.00 500.00 (5,000.00) (1,820.00) 2,740.85 4,598.00 (850.00) 52,920.00 1,788.00 35,000.00 7,848.75 12,385.60 1,318.19 10,000.00 550.00 (600.00) 500.00 4,800.00 (5,000.00) 4,500.00 594.25 30,000.00 3,420.75 9,000.00 (237.04) 650.00 617.50 (617.50) 250.00 (335.00) 272.00 270.00 33,801.40 20,758.20 850.00 15,000.00 200.00 8,675.10 200.00 200.00 28,800.00 72.75 200.00 0.50 (100.00) 1,688.15 18,108.70 (1,450.00) (966.60) (1,025.00) 57,549.35 35,404.31 (200.00) (237.50) 1,250.00

Name and Designation of Debtor Escobia, Jaime T. Escosia, Aurora A. Esguerra, Anna Leah R. Esguerra, Marissa B.. Espinosa, William V. Espiritu, Elizabeth O. Estacio, Ma. Vivian G. Estrella, Luisito P. Evangelista, Erika Evangelista, Rey M. Fajardo, Rolando Ferareza, Rimar Fernandez, Rosana S. Fernando, Gerry V. Fernando, Rogelio E. Fiesta, Erlinda P. Flora, Dolores Flores, Floriza Ann Flores, Ma.Cecilia D. Flores, Miguela Trinidad Flores, Roberto C. Flores, Teresita T. Foronda, John Clarence Fortaleza, Ramon M. Frades, Francisca B. Fronda, Adelaida C. Galo, Crispin L. Garcia, Dolores A. Garcia, Miriam Garcia, Mylene M. Garcia, Myllah D. Garcia, Severino M. Garrido, Elma C. Gaspillo, Rudy M> Gella, Delia D. Gella, Frederick S. Gemzon, Elena F. Gerardo, Elsa F. G Gervacio, Ma. Cristina SJ. Gilera, Enrico G. Golloso, Helen E. Gonzales, Emmanuel S. Gorod, Flordeliza N. Grasparil, James Andrew Guarin, Ellen G. Gubio, James B. Guevarra, Dorvin H. Guevarra, Ma. Theresa M. Guevarra, Remedios P. Gurrea, Ruby Gusi, Rechilda D. Gutierrez, Lucita A. Guzman, Barbara Michelle Guzman, Guillerma M. Guzman, Ma. Corazon A. Hatt, Cielito Sanvictores Hernandez, Jan Joseph S. Hizon, Irma L. Ibalio, Dyann A. Ignacio, Lourdes D. Iguas, Jose A.

Beginning Balance 5,869.06 200.00

Additions 23,300.00 28,775.75 203.00 56,420.00 11,868.90 34,408.50 17,500.00 17,375.00 92,850.60

Amount Deducted 20,970.00 27,096.31 563.00 62,420.00 4,114.70 19,499.74 22,400.00 62,706.25 2,150.00 6,366.60 51,540.47 1,000.00 3,000.00 8,388.67

Deductions Amount Written-Off

Current 2,330.00 7,548.50 (360.00) (6,000.00) 9,291.54 28,682.09 800.00 17,375.00 58,453.54 (2,150.00)

Non-Current

200.00

1,537.34 13,773.33 5,700.00 28,309.19 250.00 (2,500.00) 20,000.00

6,366.60 64,392.01 5,000.00 55,913.20 18,000.00

250.00 (2,500.00) 32,851.54 4,000.00 52,913.20 2,385.66 18,000.00 100.00 9,583.33 84,000.00 3,024.00 1,000.00 2,011.35 15,450.00 4,301.75 6,550.25 9,677.25 2,000.00 39.00 100,000.00 5,774.95 20,621.55 200.00 (2,000.10)

10,774.33 100.00 43,333.33

37,482.00 (1,000.00) 100.00 9,038.12

39,000.00 140,000.00 3,090.50 1,000.00 2,011.35 38,990.25 5,273.75 6,550.25 21,392.25 20,035.00 7,615.90 206,974.75 5,775.45 20,621.55

72,750.00 56,000.00 66.50

61,022.25 972.00

(1,000.00) 100.00

66,664.00

20,753.12 18,035.00 7,576.90 173,638.75 0.50

200.00 (2,000.10) 3,655.33 (240.00) 68,315.74 4,499.99

9,145.00 5,383.00 100,855.50 629.25 66,630.92

4,951.58 975.00 5,383.00 79,171.24 5,000.00 57,186.52

7,848.75 ( (975.00) ) (240.00) 90,000.00 (500.01) 629.25 9,444.40 (1,575.00) 400.00

(1,575.00) 400.00 2,400.00 (425.00) 200.00 821.40

24,702.60 32,034.93 31,817.50 50,020.00 11,134.05 29,080.50 910.50 31,963.00 21,503.44 979.50 6,586.00 7,295.80 35,000.00 9,486.75

14,254.20 18,171.74 28,647.80 25,020.00 4,609.90 28,172.50 933.50 4,963.00 22,503.44 14,065.85 6,386.00 7,295.00 50,991.57 15,800.05

12,848.40 13,863.19 3,169.70 25,000.00 7,345.55 908.00 (23.00) 27,000.00 (1,000.00) (975.00)

(425.00) 200.00

12,111.35 1,186.45

1,186.45 200.00 0.80 15,000.00 4,794.40

30,991.57 11,107.70

Ending 2,330.00 7,548.50 200.00 (360.00) (6,000.00) 9,291.54 28,682.09 800.00 17,375.00 58,453.54 (2,150.00) 250.00 (2,500.00) 32,851.54 4,000.00 52,913.20 2,385.66 18,000.00 100.00 9,583.33 84,000.00 3,024.00 1,000.00 2,011.35 15,450.00 3,301.75 6,550.25 100.00 9,677.25 2,000.00 39.00 100,000.00 5,774.95 20,621.55 200.00 (2,000.10) 7,848.75 ( (975.00) ) (240.00) 90,000.00 (500.01) 629.25 9,444.40 (1,575.00) 400.00 12,848.40 13,863.19 2,744.70 25,000.00 200.00 7,345.55 908.00 (23.00) 27,000.00 (1,000.00) (975.00) 1,186.45 200.00 0.80 15,000.00 4,794.40

Name and Designation of Debtor Inciong, Cherry Wyne Indico, Julie Ann Ireneo, Elsa A. Isidro, Teresita L. Jamisod, Rafael Jamon, Romano M. Janagap, Fe Q. Jarlos, Anna Liza Jauco, Magdalena Javier, Mary Jacquelou Jerusalem, Violeta L. Jesus, Angelita SD. Jimenez, Arsenia S. Jintalan, Elma C. Joloya, Ma. Aura Christine Jose, Angelina P. Julio, Beata R. Junio, Nenitha L. Kenny Isabel Knuttel, Jens Ko, Robert H. Kuan, Robert Lacanilao, Gary Ladera, Renville M. Lajara, Galilea R. Lakian, Teodosio Lamorena, Juditha M. Lansang, Brenda Lapastora, Milagros Lauro, Jocelyn P. Laxamana, Rachel D. Lee, Nestor Leon, Angelito Y. Leon, Emma Rose H. Leon, Jocelyn E. Leonardo, Marietta Leonardo, Violeta M. Lepon, Ma. Luisa M. Letrero, Bernard Lim, Royce Randall Limon, Miguel Antonio P. Lindo, Alicia C. Lojo, Joanne Marie Lopez, Antonio C. Lopez, Mercedita P. Lopez, Ricardo S. Lopez, Ruelda A. Loyola, Voltaire Lumacad, Fernando B. Luyun, Teofilo P. Jr. Mabborang, Mishel T. Macalintal, Connie SJ. Macapagal, Arnualdo B. Macaraig, Melinda Macasaet, Grace Minerva Madria, Emenvenciano Magayaga, Lea Q. Magbuhat, Frances Ann Magmanlac, Mark Roland Mahilum, Rosalinda S. Malcampo, Agnes C.

Beginning Balance 477.00 348.50 4,241.00 200.00 3,655.33 200.00 45,737.28 4,386.67

Additions 7,402.00 20,000.00 62,890.76 600.00 52,274.90 32,070.00 7,303.10 118,694.50 58,964.58 28,150.00 42,290.00 361.00 50,000.00 16,897.45 125.00 7,948.30 192.00 50,000.00 375.00 28,136.75 91,256.09 192,012.28 116,377.52 76,345.85 38,297.00 23,380.00 1,483.25 53,970.00 23,674.75 10,730.00 20,515.00 135,299.50 5,000.00 162.75

Amount Deducted 6,699.00

Deductions Amount Written-Off

Current 1,180.00 20,000.00 40,258.77 600.00

Non-Current 348.50

26,872.99

200.00 37,921.65 12,936.58 3,182.75 173,801.26 45,381.25 18,150.00 34,000.00 234.00 341,383.87 1,618.50 14,353.25 22,788.75 4,120.35 200.00 (9,369.48) 17,970.00 10,000.00 8,290.00 127.00 50,000.00 15,278.95 125.00 50,000.00 62.00 543,032.13 23,000.00 80,426.19 167,321.10 116,827.52 69,138.50 39,521.88 21,042.00 4,617.67 45,000.00 41,265.75 3,930.59 22,285.00 110,299.50 8,250.00 62.75 7,948.30 130.00 50,000.00 375.00 5,098.75 10,829.90 (1,650.00) 66,691.18 200.00 13,872.35 8,574.12 2,338.00 1,252.25 8,970.00 (13,850.00) 8,992.75 (1,770.00) 25,000.00 ( (3,000.00) ) 1,650.00 200.00 100.00 26,947.90 20,000.00 20,512.15 46,239.00 19,936.66 5,000.00 50.33 9,570.00 6,345.01 240,847.74 11,755.30 5,092.75 1,200.00 15,000.00 20,000.00 37,629.95 18,432.12 17,947.00 32,828.42 4,941.95 20,000.00 28,324.65 28,292.00 3,000.04 5,000.00 50.33 7,848.75 1,345.00 50,010.24 2,760.80 35.75 650.00 800.00 400.00 15,000.00 20,000.00 200.00 35,085.00 25,539.56 9,545.44 72.00 (32,539.00) 200.00 5,000.01 236,788.00 8,994.50 6,101.00

341,383.87

50,000.00

543,032.13 (38.00) (1,650.00) 42,000.00 650.00 6,665.00 9,799.00 4,386.67 3,741.00 2,193.34

250.00 1,550.00 200.00 100.00 15,624.00 26,244.62 15,891.80 72.00 (32,539.00) 8,446.94 200.00 45,950.50 1,044.00 650.00

10,168.19

200.00

Ending 1,180.00 348.50 20,000.00 40,258.77 600.00 200.00 14,353.25 22,788.75 4,120.35 200.00 (9,369.48) 17,970.00 10,000.00 8,290.00 127.00 50,000.00 15,278.95 125.00 50,000.00 7,948.30 130.00 50,000.00 375.00 5,098.75 10,829.90 (1,650.00) 66,691.18 200.00 13,872.35 8,574.12 2,338.00 1,252.25 8,970.00 (13,850.00) 8,992.75 (1,770.00) 25,000.00 ( (3,000.00) ) 1,650.00 200.00 100.00 4,941.95 20,000.00 28,324.65 28,292.00 3,000.04 5,000.00 72.00 (32,488.67) 7,848.75 200.00 1,345.00 50,010.24 2,760.80 35.75 650.00 400.00 15,000.00 20,000.00 200.00 9,545.44

Name and Designation of Debtor Maliwat, Herminia I. Mamaid, Melanie P. Manalansan, Paolo F. Manalo, Evelyn P. Manalo, Marilou Manaois, Mario B. Manguerra, Laarni C. Marcelino, Ariel Christopher Marcelo, Gerry A. Marcial, Maridel S. Mariano, Maria Lourdes A. Maristela, Teresita Martin, Wilhelmina E. Mateo, Jacinto C. Jr. Mazo, Flaviano S. Medel, Mervin Medina, Buenaventura Jr. Medina, Joy E. Melchor, Elizabeth P. Mendoza, Cecilia H. Mendoza, Gloria A. Mendoza, Simplica A. Menez, Karren G. Menorca, Emmanuel S. Mercado, Valerie Grace P. Mesina, Karen T. Miguel, Emmanuel C. Mina, Enrique N. Minas, Geraldine C. Mintu, Cynthia B. Mitra, Melvin P. Molina, Ma. Olivia G. Molina, Mark Oliver P. Monderin, Victor C. Monfero, Rowena A. Montano, Moses M. Montinola, Aurelio R. III Montinola, G Gianna R. Montinola, Lourdes R. Morilla, Toriana A. Mostajo, Esmeralda D. Nagal, Glenn Z. Nagtalon, Leo Angelo Najjar, Mary Chastine T. Naui, Elizabeth S. Navarro, Lilibeth C. Nebril, Jonathan A. Nicdao, Lazaro B. Nicer, Joselito C. Nicolas, Crispinita Nob, Rene M. Norcio, Glen R. Noriega, Mariwilda Nuestro, Sarah A. Nulla, Mila R. Oaferina, Gemmalyn A. Olivares, Joh Paul T. Omampo, Rolando B. Ondevilla, Miel Kristian Orias, Ronito B. Orolfo, Teodora C.

Beginning Balance 112,145.31 6,250.00

1,000.00 4,386.67 14,444.51 215.00

Additions 103,224.00 39,684.00 10,063.00 10,000.00 15,000.00 2,104.20 5,000.00 19,669.00 8,257.00 671.00 9,196.00 2,901.25 35,024.25 13,326.75 200.00 43,193.25 1,336.50 7,447.25 12,203.00 34,738.00 27,642.00 30,000.00 200.00 293.50 9,316.00 2,110.50

Amount Deducted 110,110.37 39,317.33 12,713.00

Deductions Amount Written-Off

5,000.00 17,702.10 5,473.05 13,619.26

Current 105,258.94 366.67 3,600.00 10,000.00 15,000.00 2,104.20 1,000.00 1,966.90 7,170.62 1,496.25 9,196.00 1,495.00 5,000.00 12,241.02 200.00

Non-Current

215.00 1,406.25 30,024.25 10,867.50

9,781.77 1,050.00 600.00 200.00

1,050.00 42,483.73 724.50 2,419.25 25,702.68 39,740.00 13,300.76 1,309.52 612.00 200.00 5,028.00 (13,499.68) 998.00 14,341.24 30,000.00 (4,000.00) 200.00 12,288.00 1,800.00 49,120.00 5,507.92 321.50 38,404.00 274,838.73 387,795.94 1,800,488.76 55,438.75 198,000.66 27,364.40 272.00 2,118.00 8,762.80 55,608.72 200.00 93.50 (2,972.00) 310.50 552.35 59,120.00 8,970.00 2,577.00 36,149.75 50,000.00 50,000.00 50,000.00 53,998.00 200,000.00 33,752.90 272.00 2,025.00 1,114.70 61,754.50 10,000.00 7,848.75 2,255.50 3,745.75 941.67 50,000.00 50,000.00 50,000.00 850.00 10,559.25 1,999.67 640.00 9,519.30 (93.75) 200.00 4,907.00 1,110.70 28,418.50 190.00 (1,800.00) 644.00 40,448.13 118,933.95 9,451.25 78,200.00 27,278.00 110.00 713.01 60,763.35 744.00 28,733.16 98,974.00 10,382.55 57,200.00 1,010.00 2,713.01 66,913.00 (100.00) 23,331.73 150.00 63,816.95 (1,931.34) 21,000.00 27,278.00 3,600.00 2,000.00 5,034.35

6,000.00

(4,000.00)

552.35 4,386.67 6,000.00 941.67 274,838.73 387,795.94 1,800,488.76 850.00 12,000.00 0.33 640.00 3,130.80 (93.75) 200.00 5,000.00 8,758.80 22,272.72 190.00 (1,800.00) 11,616.76 150.00 43,857.00 (1,000.04)

4,500.00 4,000.00 11,184.00

Ending 105,258.94 366.67 3,600.00 10,000.00 15,000.00 2,104.20 1,000.00 1,966.90 7,170.62 1,496.25 9,196.00 215.00 1,495.00 5,000.00 12,241.02 200.00 1,050.00 1,309.52 612.00 200.00 5,028.00 (13,499.68) 998.00 14,341.24 30,000.00 (4,000.00) 200.00 93.50 (2,972.00) 310.50 552.35 10,000.00 7,848.75 2,255.50 3,745.75 941.67 50,000.00 50,000.00 50,000.00 850.00 10,559.25 1,999.67 640.00 9,519.30 (93.75) 200.00 4,907.00 1,110.70 28,418.50 190.00 (1,800.00) (100.00) 23,331.73 150.00 63,816.95 (1,931.34) 21,000.00 27,278.00 3,600.00 2,000.00 5,034.35

Name and Designation of Debtor Orozco, Glorina P. Pacquing, Elizabeth P. Padilla, Leo A. Padual, Jennifer C. Pagdilao, Menchie C. Paguirigan, Viviana Pahutan, Ludivinia M. Pal, Salvacion A. Palaje, Joseph M. Palencia, Marjueve M. Palis, Fernando F. Palparan, Karoline L. Panesa, Isabelita A. Panganiban, Don Brendo Pantas, Felix L. Jr. Panzo, Salome V. Paraiso, Jesus R. Paras, Renato Pascua, Jennifer J. Pascual, Danilo S. Pataunia, Ma. Cecilia C. Paz, Rosalinda Z. Pearson, Lou Dominic Pelaez, Felimon P. Pening, Teodoro Perez, Hector Perez, Winnie E. Pineda, Rodolfo G. Pizaro, Arthur P. Polido, Maria Myrel M.. Ponsaran, Levy C. Presas, Heinrich G. Punsalan, Angelita Quijano, Arianne Quinto, Myrna P. Ramirfez, Marnel Ramos, Bernadette Ramos, Henry C. C Ramos, Leonora A. Ramos, Rebben Japheth Ramos, Teodorica L. Rana, Aurelio Y. Rapirap, Raquel T. Rayos, Nancy Reambonanza, Maria Teresita Remiendo, Nora Liza A. Restor, Nerissa A. Resuello, Heidi Retardo, Victor Cezar Reyes, Melodia S. Reyes, Mercedes C. Reyes, Richard R. Reyes, Richard Anthony Reyes, Richard Glenn C. Reyes, Rosa M. Rimano, Joy S. Rito, Estrellita S. Rosal, Josefina T. Rosario, Enrico Rosario, Ma. Theresa O. Rosario, Warly Evelyn

Beginning Balance 4,386.67 348.50

Additions 14,366.50 19,561.50 30,000.00 100.00 1,443.25 3.25 6,439.65 800.00 8,688.45 35,569.51 3,892.55 20,000.00 22,132.75 1,087.50 65,430.95 50,000.00 650.00 343.00 28,521.75 57,663.75 7,344.00 70,342.05 43,851.25 37,954.25 9,023.00 15,855.50 5,628.75 20,000.00 973.25 10,000.00 46,905.00 20,000.00 6,850.91 5,000.00 34,575.00 15,000.00 44,000.00 120,422.10 54,187.00 20,000.00 20,000.00 27,201.00 30,784.00 25,027.00 34,160.00 47,104.15 3,192.00 20,000.00 31,405.50 5,550.00 15,253.17 43,940.00 450.00 4,155.50 26,954.15

Amount Deducted 11,777.55 5,000.00

Deductions Amount Written-Off

Current 14,366.50 12,170.62 25,000.00 100.00 1,443.25

Non-Current

348.50

(1,000.00) 10,000.00 400.00 (1,000.00) 2,250.00

3.25 15,006.00 800.00 10,081.30 5,569.51 2,757.50 11,927.26 362.50 15,607.25

(1,000.00) 1,433.65 400.00 (1,000.00) 857.15 30,000.00 1,135.05 20,000.00 15,697.50 725.00 49,823.70 50,000.00 650.00

5,492.01

4,000.00 9,175.00 (1,583.50) 13,160.00

343.00 25,984.25 594.00 28,177.67 40,563.91 37,954.25 5,923.00 22,105.50 3,478.75 20,000.00 161.75 43,405.00 44,996.96 5,000.00 6,975.00 37,500.00 46,387.75 91,141.59

4,000.00 9,175.00 (1,583.50)

10,655.42 2,166.66 (50.00) (655.25) 4,500.00 7,500.00 1,500.00 (2,500.00)

15,697.50 57,663.75 6,750.00 52,819.80 5,454.00 (50.00) (655.25) 7,600.00 1,250.00 3,650.00 (2,500.00) 811.50 10,000.00 3,500.00 20,000.00 853.95 9,000.00 27,600.00 15,000.00 6,500.00 74,034.35 22,182.08 20,000.00 20,000.00 (2,333.33) 2,283.10 200.00 20,000.00 23,546.25 25,658.35 2,716.00 20,000.00 4,306.75 0.25 366.67 5,000.00 15,000.00 300.00 1,837.75 11,705.65

39,000.00 9,000.00

59,136.67

2,333.34 200.00 8,773.33 17,036.60 (212.00)

31,867.67 28,500.90 5,027.00 19,387.08 38,482.40 264.00 27,098.75 7,673.33 10,253.17 28,940.00 150.00 2,317.75 25,537.46

0.25 2,490.00

10,288.96

Ending 14,366.50 12,170.62 348.50 25,000.00 100.00 1,443.25 (1,000.00) 1,433.65 400.00 (1,000.00) 857.15 30,000.00 1,135.05 20,000.00 15,697.50 725.00 49,823.70 50,000.00 4,650.00 9,175.00 (1,583.50) 15,697.50 57,663.75 6,750.00 52,819.80 5,454.00 (50.00) (655.25) 7,600.00 1,250.00 3,650.00 (2,500.00) 811.50 10,000.00 3,500.00 20,000.00 853.95 9,000.00 27,600.00 15,000.00 6,500.00 74,034.35 22,182.08 20,000.00 20,000.00 (2,333.33) 2,283.10 200.00 20,000.00 23,546.25 25,658.35 2,716.00 20,000.00 4,306.75 0.25 366.67 5,000.00 15,000.00 300.00 1,837.75 11,705.65

Name and Designation of Debtor Rubillos, Leonardo I. Rufo, Rowena O. Ruzol, Hipolito Sabas, Angel Francisco Sabaupan, Sylvette G. Salagubang, Reulay Kay B. Salloman, Philip M. Salvador, Paulino Samarita, Mercy Cristy B. Samson, Leylani H. Santaren, Emma C. Santos, Carmelita Santos, Leonida Santos, Marilou D. Saplala, Mariano F. Sarabia, Juliet C. Sasis, Florentino I. Sayat, Ruby DG. Simbol, Elvira C. Simo, Rickson Jay P. Siongco, Josephine C. Sioson, Yolanda J. Sison, Erlinda G. Sison, Roger Amadeo Sison, Waltedrudes M. Solano, Maria S. Soliman, Norma P. Solivio, Rosalie E. Soriano, Carol Bongar Soriano, Myla Grace Sta.Cruz, Cinderella A. Sta.Maria, Hipolito M. Suba, Sally Chua Tagle, Susan H. Tajonera, Joan Patrick Talampas, Ma. Cristina J. Tamondong, Ivy Tampol, Eduardo Tan, Paulino Tanafranca, Enrico V. Tapalgo, Elyn M. Tapit, Neila E. Tayag, Evelyn R. Tecson, Wilfrido Temporosa, Bernard T. Tiotangco, Angelina N. Tirazona, Renato L. Tizon, Dolores J. Togado, Illumar Tolentino, Rosula R. Topenio, Jimmy P. Torres, Maruja Torres, Teem Umpad, Mara Urquico, Ma. Luisa Usita, Laarni P. Valderrama, Ruth D. Valencia, Eufracia Valencia, Jean Pauline S. Valencia, Joy G. Valenzuela, Rowena B.

Beginning Balance

Additions 10,000.00 1,997.26 4,521.51 47,089.51 10,000.00 28,594.10 8,150.81 34,450.00 31,028.30 852.00 27,081.50 1,100.00 13,200.50 77,855.75 53,609.80 5,000.00 15,458.25 9,613.95 32,530.02 10,136.85 200.00 5,600.00 14,475.75 35,099.95

Amount Deducted 11,000.00 1,220.26 2,070.80 40,380.41 11,479.85 7,744.31 9,450.00 30,160.40 342.00 16,695.25 366.67 9,738.42 79,476.19 5,000.00 2,500.00 5,000.00 6,567.00 31,467.02 100.00 200.00 5,700.00 11,453.00 35,008.75

Deductions Amount Written-Off

Current (1,000.00) 777.00 3,063.51 6,709.10 10,000.00 17,114.25

Non-Current

850.00 612.80

850.00

50.00 406.50 25,000.00 867.90 510.00 23,546.25 733.33 7,848.75 20,546.97 48,609.80 2,500.00 10,458.25

50.00

13,160.00 4,386.67 22,167.41

200.00 3,046.95 1,063.00 10,036.85

200.00

(290.00) 1,862.40

(290.00) 1,862.40 (100.00) 3,022.75 91.20 1,246.00 200.00 (4,200.00) 700.00 30,450.00 22,200.02 12,088.85 12,500.00 200.00 220.00

1,246.00 200.00 (4,200.00) 12,600.00 52,666.65 30,200.02 27,818.20 200.00 220.00

5,821.00 41,700.00 75,532.00 32,366.00 12,088.85 65,009.00

5,821.00 53,600.00 97,748.65 40,366.00 80,327.20

590.00 6,080.00

(4,212.00) 12,012.08 2,193.34 2,000.00

50,000.00 983.00 10,928.00 53,259.00 28,697.71 50,000.00 55,057.75 54,871.25 41,156.25 9,290.00 8,000.00 12,151.35 11,978.75 2,344.40 152,000.00 73,740.90 24,017.10 670.25 53,795.25 3,490.95 40,851.25

833.00 10,899.33 25,711.25 28,697.67 34,050.00 23,071.25 44,296.00 3,634.59 8,666.65 11,112.95 5,306.00 4.00 176,000.00 54,254.43 16,349.53 44,795.26 522.00 39,000.00

50,000.00 150.00 618.67 33,627.75 0.04 50,000.00 16,795.75 31,800.00 8,872.33 7,848.75 1,333.35 1,038.40 6,672.75 414.00 2,340.40 24,000.00 666.00 19,486.47 9,078.44 670.25 8,999.99 2,968.95 1,851.25

414.00 48,000.00 666.00 1,410.87

Ending (1,000.00) 777.00 850.00 3,063.51 6,709.10 10,000.00 17,114.25 50.00 406.50 25,000.00 867.90 510.00 23,546.25 733.33 7,848.75 20,546.97 48,609.80 2,500.00 10,458.25 200.00 3,046.95 1,063.00 10,036.85 (290.00) 1,862.40 (100.00) 3,022.75 91.20 1,246.00 200.00 (4,200.00) 700.00 30,450.00 22,200.02 12,088.85 12,500.00 200.00 220.00 50,000.00 150.00 618.67 33,627.75 0.04 50,000.00 16,795.75 31,800.00 8,872.33 7,848.75 1,333.35 1,038.40 6,672.75 414.00 2,340.40 24,000.00 666.00 19,486.47 9,078.44 670.25 8,999.99 2,968.95 1,851.25

Name and Designation of Debtor Vanguardia, Cesar G. Velasco, Maria Luisa R. Velasquez, Damian D. Velasquez, Ma. Charisma B. Velasquez, Willyn V. Vera, Alpher Vera, Liorinda D. Vera, Michael R. Vergara, Febes Vibas, Danilo T. Vicera, Reynante P. Victoria, Michael S. Victoria, Wendelliza M. Villanueva, Ma. Concepcion Villanueva, Ruth Villapando, Marimel A. Villar, Gerald L. Villaroya, Robinson L. Villegas, Mary Claire L. Vinluan, Lourdes R. Vinluan, Renato A. Vitug, Eliza J. Wee, Mariano B. Yang, Gloria G,. Yap, Donato C. Yatco, Maria Carmen Zaldivar, Felicia P. Zaldivar, Ramil P. Zamudio, Rowena B. Zape, Vida Edna C. P

Beginning Balance 200.00 (4,100.00) 1,000.00 4,000.00 10,000.00 5,000.00 200.00 (1,300.00) 8,773.33 6,402.80 (497.30) 650.00 (50.00) (4,000.00) 1,953.34 4,875.00

Additions 11,775.00 17,283.00 5,002.25 5,600.00 27,284.00 779.94 239.50 11,424.26 23,274.50 28,914.15 13,718.36 9,846.00 41,570.25 14,500.00 89,736.04 14,881.25 9,411.60 8,349.70 5,354.00 50,400.00 135,562.30 2,060.65 1,700.00 74,654.05 11,708,489.55

Amount Deducted 1,775.00 17,283.00 5,002.25 10,600.00 33,423.74 239.50

Deductions Amount Written-Off

Current 10,000.00

Non-Current 200.00 (4,100.00) 1,000.00

(1,000.00) 3,860.26 779.94 5,000.00 200.00 11,424.26 (1,300.00)

16,350.33 32,498.75 6,896.50 6,780.66 33,519.00 13,291.63 50,041.38 7,459.00 2,367.25 354.00 65,825.04 71,967.84 1,800.01 98,012.94 11,856,639.52 P

15,697.50 2,818.20 6,324.56 650.00 3,015.34 8,051.25 (4,000.00) 1,208.37 41,648.00 14,881.25 1,952.60 5,982.45 5,000.00 4,366.65 67,716.80 2,060.65 (100.01) (3,941.19) 5,391,386.12 84,900.78

4,875.00

200.00 19,791.69 4,122.34

200.00

19,417.70 5,624,436.87

Ending 10,000.00 200.00 (4,100.00) 1,000.00 (1,000.00) 3,860.26 779.94 5,000.00 200.00 11,424.26 (1,300.00) 15,697.50 2,818.20 6,324.56 650.00 3,015.34 8,051.25 (4,000.00) 1,208.37 41,648.00 19,756.25 1,952.60 5,982.45 5,000.00 200.00 4,366.65 67,716.80 2,060.65 (100.01) (3,941.19) 5,476,286.90

Alvarez, Alfredo Ampatin, Estrella V. p Cabasada, Albert R. Capili, Regina R. Destura, Blanca Domingo, Leovildo V. Fernando, Gerry V. Frades, Francisca B. Inciong, Cherry Wyne Leon, Jocelyn E. Lopez, Martin Z. Mendoza, Malaya Molina, Mark Oliver P. Quines, Dante P. Rapirap, Raquel T. Rosal, Josefina T. Rosales, Amormia Rhodora J. Tolentino, Rosula R.

2,000.00 27,220.00 8,114.36

2,000.00 8,400.00 3,640.00 1,800.00 69,600.00 27,000.00 150,640.00 55,948.81 166,566.97 175,117.00 7,962.00 575,175.40 325,461.95 17,600.00 105,191.89 8,310.00 1,820.00 900.00 102,876.15 24,498.63 43,250.44 56,228.81 159,286.97 203,857.89 7,962.00 360,597.52 296,661.95 21,800.00 67,581.89 27,310.00 8,114.36 1,820.00 900.00 (33,276.15) 2,501.37 107,389.56 (280.00) 7,280.00 (28,740.89) 7,650.00 76,043.37 300.00 25,828.00 1,000.00 (4,200.00) 37,610.00

7,650.00 (138,534.51) 300.00 (2,972.00) 1,000.00

2,000.00 27,310.00 8,114.36 1,820.00 900.00 (33,276.15) 2,501.37 107,389.56 (280.00) 7,280.00 (28,740.89) 7,650.00 76,043.37 300.00 25,828.00 1,000.00 (4,200.00) 37,610.00

P

(95,222.15)

1,690,104.02

1,355,632.25

P

220,185.26

19,064.36

239,249.62

TOTAL - 1131012

P

5,529,214.72

13,398,593.57

13,212,271.77

P

5,611,571.38

103,965.14

5,715,536.52

- 18 -

Item 7:

Financial Statements The Financial Statements including the applicable schedules listed in the accompanying index to financial statements and supplementary schedules are filed as part of this form I7 - A.

THE FAR EASTERN UNIVERSITY, INCORPORATED STATEMENTS OF FINANCIAL POSITION MARCH 31, 2010 AND 2009

(With Comparative Figures for 2008) (Amounts in Philippine Pesos)

Notes A S S E T S CURRENT ASSETS Cash and cash equivalents Receivables - net Available-for-sale investments Held-to-maturity investments Other current assets Total Current Assets NON-CURRENT ASSETS Due from a related party Held-to-maturity investments Investments in subsidiaries and an associate Investment property - net Property and equipment - net Deferred tax assets - net Other non-current assets Total Non-current Assets

2010

2009

2008 (As Restated)

4 5 6 4, 5

P

427,163,215 699,920,334 1,202,638,312 20,000,000 134,823,634 2,484,545,495

P

1,121,771,210 133,310,657 1,073,109,957 20,000,000 95,692,468 2,443,884,292

P

1,148,501,776 111,845,027 840,687,402 127,690,496 2,228,724,701

17 7 8 9 16

218,774,500 102,563,489 184,474,137 697,501,156 7,089,946 2,765,207 1,213,168,435

100,000,000 96,313,489 194,855,462 601,011,101 5,701,855 5,598,807 1,003,480,714

100,000,000 32,071,040 88,941,889 202,399,663 491,142,241 8,590,596 5,463,973 928,609,402

TOTAL ASSETS LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and other liabilities Trust funds Unearned tuition fees Income tax payable Total Current Liabilities EQUITY Capital stock Treasury stock Accumulated fair value gains (losses) Retained earnings Appropriated Unappropriated Total Equity

P

3,697,713,930

P

3,447,365,006

P

3,157,334,103

10 11 12

P

410,324,304 43,970,750 45,878,467 500,173,521

P

380,536,852 58,490,642 75,499,149 43,616,798 558,143,441

P

430,264,990 76,162,222 16,854,919 48,792,628 572,074,759

18 18 6 18

(

984,577,900 3,733,100 ) 7,857,562 1,675,099,017 533,739,030 3,197,540,409

( (

984,577,900 3,733,100 ) 9,533,437 ) 975,099,017 942,811,185 2,889,221,565

(

704,369,900 3,733,100 ) 1,233,243 1,147,161,414 736,227,887 2,585,259,344

TOTAL LIABILITIES AND EQUITY

P

3,697,713,930

P

3,447,365,006

P

3,157,334,103

See Notes to Financial Statements.

THE FAR EASTERN UNIVERSITY, INCORPORATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED MARCH 31, 2010 AND 2009

(With Comparative Figures for 2008) (Amounts in Philippine Pesos)

Notes EDUCATIONAL INCOME Tuition fees - net Other school fees
12

2010

2009

2008 (As Restated)

P

1,665,790,366 35,257,665 1,701,048,031

P

1,611,808,467 50,280,810 1,662,089,277 1,182,310,970 479,778,307

P

1,580,683,033 33,146,510 1,613,829,543 1,094,192,396 519,637,147

OPERATING EXPENSES OPERATING PROFIT OTHER INCOME (CHARGES) Finance income Rental Management fees Finance costs Others

13

1,210,578,122 490,469,909

14 8 5

(

113,408,092 39,179,482 14,080,414 3,482,984 ) 8,232,332 171,417,336 661,887,245

120,713,165 22,927,970 11,527,024 7,227,083 162,395,242 642,173,549 75,175,688 566,997,861

(

106,423,249 25,494,398 20,145,930 4,747,863 ) 1,738,889 149,054,603 668,691,750 75,785,747 592,906,003

PROFIT BEFORE TAX TAX EXPENSE NET PROFIT OTHER COMPREHENSIVE INCOME Fair value gains (losses) Reclassification to profit or loss
16

76,705,960 585,181,285

6

17,390,999 17,390,999

( ( (

8,016,081 ) 2,750,599 ) 10,766,680 )

( (

1,286,340 5,514,166 ) 4,227,826 )

TOTAL COMPREHENSIVE INCOME Earnings Per Share Basic and Diluted

P

602,572,284

P

556,231,181

P

588,678,177

19

P

59.66

P

67.44

P

84.62

See Notes to Financial Statements.

THE FAR EASTERN UNIVERSITY, INCORPORATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED MARCH 31, 2010 AND 2009

(With Comparative Figures for 2008) (Amounts in Philippine Pesos)

Notes Balance at April 1, 2009 Comprehensive income Net profit for the year Fair value gains for the year Total comprehensive income Transactions with owners Appropriations for the year Reversal of appropriations during the year Cash dividends

Capital Stock P

Treasury Stock

Accumulated Fair Value Gains (Losses) 9,533,437 ) 17,390,999 17,390,999 ( P

Retained Earnings Appropriated Unappropriated 975,099,017 1,000,000,000 ( 300,000,000 ) ( 700,000,000 ( P 942,811,185 585,181,285 585,181,285 1,000,000,000 ) 300,000,000 294,253,440 ) ( 994,253,440 ) ( P

Total Equity 2,889,221,565 585,181,285 17,390,999 602,572,284 294,253,440 ) 294,253,440 )

984,577,900 ( P -

3,733,100 ) ( P -

6

18 18 18

Balance at March 31, 2010

P

984,577,900

( P

3,733,100 )

P

7,857,562

P

1,675,099,017

P

533,739,030

P

3,197,540,409

Balance at April 1, 2008 Comprehensive income Net profit for the year Fair value losses for the year Reclassification to profit or loss for the year Total comprehensive income Transactions with owners Issuance during the year Reversal of appropriations during the year Cash dividends Stock dividends

P

704,369,900 ( P 280,208,000

3,733,100 ) -

P

1,233,243 8,016,081 ) 2,750,599 ) 10,766,680 ) (

P

1,147,161,414 172,062,397 ) ( ( 172,062,397 ) (

P

736,227,887 566,997,861 ( ( 566,997,861 172,062,397 252,268,960 ) ( 280,208,000 ) ( 360,414,563 ) (

P

2,585,259,344 566,997,861 8,016,081 ) 2,750,599 ) 556,231,181 280,208,000 252,268,960 ) 280,208,000 ) 252,268,960 )

6

( ( (

18 18 18

280,208,000

(

Balance at March 31, 2009

P

984,577,900 ( P

3,733,100 ) ( P

9,533,437 )

P

975,099,017

P

942,811,185

P

2,889,221,565

Balance at April 1, 2007 As previously reported Prior period adjustments As restated Comprehensive income Net profit for the year Fair value gains for the year Reclassification to profit or loss for the year Total comprehensive income Transactions with owners Appropriations for the year Cash dividends

P

704,369,900 ( P 704,369,900 ( -

3,733,100 ) 3,733,100 ) ( (

P

5,461,069 5,461,069 1,286,340 5,514,166 ) 4,227,826 ) -

P

697,161,414 P ( 697,161,414 450,000,000 ( ( 450,000,000 (

938,901,911 P 30,293,467 ) ( 908,608,444 592,906,003 ( 592,906,003 450,000,000 ) 315,286,560 ) ( 765,286,560 ) (

2,342,161,194 30,293,467 ) 2,311,867,727 592,906,003 1,286,340 5,514,166 ) 588,678,177 315,286,560 ) 315,286,560 )

6

18 18

-

Balance at March 31, 2008

P

704,369,900 ( P

3,733,100 )

P

1,233,243

P

1,147,161,414

P

736,227,887

P

2,585,259,344

See Notes to Financial Statements.

THE FAR EASTERN UNIVERSITY, INCORPORATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED MARCH 31, 2010 AND 2009

(With Comparative Figures for 2008) (Amounts in Philippine Pesos)

Notes CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments for: Interest income Depreciation and amortization Unrealized foreign exchange losses (gains) Gain on disposal of property and equipment Loss on sale of investment Operating profit before working capital changes Increase in receivables Decrease (increase) in other assets Increase in accounts payable and other liabilities Increase (decrease) in unearned tuition fees Decrease in trust funds Cash generated from operations Income taxes paid Net Cash From Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Increase in loans receivable Acquisitions of property and equipment and investment property Increase in due from a related party Increase in available-for-sale investments Interest received Investment made to joint venture under registration Decrease in held-to-maturity investments Additional investment in subsidiaries Proceeds from disposal of property and equipment Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITY Dividends paid Effect of Exchange Rate Changes on Cash and Cash Equivalents NET DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

2010

2009

2008 (As Restated)

P
14 13

661,887,245 113,408,092 ) 51,192,377 3,482,984 603,154,514 86,959,370 ) 40,253,212 ) 101,013,918 75,499,149 ) 14,519,892 ) 486,936,809 71,876,736 ) 415,060,073 ( ( (

P

642,173,549 117,675,433 ) 46,524,455 3,037,732 ) 726,424 ) 567,258,415 13,575,721 ) 27,907,548 7,878,567 58,644,230 17,671,580 ) 630,441,459 73,507,131 ) 556,934,328 (

P

668,691,750 106,423,249 ) 42,254,725 4,747,863 2,842,069 612,113,158 2,630,642 ) 99,068,120 ) 56,906,567 16,854,919 25,109,062 ) 559,066,820 69,936,888 ) 489,129,932

(

( ( ( ( (

(

( (

( (

( (

5 8, 9 17 6 7 7

( ( ( ( (

477,000,000 ) 137,301,107 ) 118,774,500 ) 112,137,356 ) 110,757,785 6,250,000 ) 740,705,178 ) ( (

148,849,114 ) 240,347,166 ) 105,270,892 13,743,603 7,371,600 ) 726,424 276,826,961 ) ( ( (

48,003,906 ) 35,000,000 ) 22,914,741 ) 90,267,525 257,510 ( 15,393,612 )

(

(

(

18

(

365,479,906 )

(

309,875,665 )

(

194,554,457 )

(

3,482,984 )

3,037,732

(

6,607,781 )

(

694,607,995 )

(

26,730,566 )

272,574,082

1,121,771,210

1,148,501,776

875,927,694

CASH AND CASH EQUIVALENTS AT END OF YEAR

P

427,163,215

P

1,121,771,210

P

1,148,501,776

Supplemental Information on Noncash Financing Activities: 1) The University declared and issued stock dividends amounting to P280.2 million in 2009 (see Note 18). 2) In 2010, 2009 and 2008, the University declared cash dividends totaling P294.3 million, P252.3 million and P315.3 million, respectively, of which P8.5 million, P24.6 million and P119.5 million, respectively, were not paid in the year of declarations (see Notes 10 and 18).

See Notes to Financial Statements.

THE FAR EASTERN UNIVERSITY, INCORPORATED NOTES TO FINANCIAL STATEMENTS MARCH 31, 2010 AND 2009

(With Comparative Figures for 2008) (Amounts in Philippine Pesos)

1.

CORPORATE INFORMATION The Far Eastern University, Incorporated (the University or FEU) is a domestic educational institution founded in June of 1928 and incorporated on January 5, 1933. The University was registered with the Securities and Exchange Commission (SEC) on March 7, 1940. The University is a private, non-sectarian institution of learning comprising the following different institutes that offer specific courses, namely, Institute of Arts and Sciences; Institute of Accounts, Business and Finance; Institute of Education; Institute of Architecture and Fine Arts; Institute of Nursing; Institute of Engineering; Institute of Law; and Institute of Graduate Studies. The University became a listed corporation in the Philippine Stock Exchange on July 11, 1986. In 2010, the University established the FEU Makati Campus in Makati City (see Note 5). Also in November 2009, FEU entered into a Joint Venture (JV) Agreement to establish a joint venture company (JVC) for culinary arts. The registration of the JVC was approved by the SEC on May 7, 2010. As of March 31, 2010, 2009 and 2008, the University holds interest in the following subsidiaries and associate which were all incorporated and operating in the Philippines: Company Name Subsidiaries: East Asia Computer Center, Inc. (EACCI) Far Eastern College-Silang, Inc. (FECSI) Fern Realty Corporation (FRC) TMC – FRC Sports Performance and Physical Medicine Center, Inc. (SPARC) Associate – Juliana Management Co., Inc. (JMCI) Percentage of Effective Ownership 2010 2009 2008

100% 100% 37.52% 22.51%

100% 100% 37.52% -

100% 36.73% -

49%

49%

49%

FECSI was incorporated on January 21, 2009 but has not yet started commercial operations as of March 31, 2010. FECSI and EACCI, similar to the University, were also established to operate as educational institutions. FRC, on the other hand, operates as a real estate company leasing most of its investment properties to the University and other related parties.

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Although the University controls less than 50% of the voting shares of stock of FRC, it has the power to govern the financial and operating policies of the said entity as the University has the power to cast the majority of votes at meetings of the board of directors and elect officers of FRC. Accordingly, FRC is recognized as a subsidiary of the University. FRC acquired 60% equity ownership interest over SPARC which is engaged in the business of organizing, owning, operating, managing and maintaining a sports facility for the rehabilitation and sports performance enhancement within the Philippines. The registered office address and principal place of business of the University is located at Nicanor Reyes Sr. Street, Sampaloc, Manila. The financial statements of the University for the year ended March 31, 2010 (including the comparatives for the years ended March 31, 2009 and 2008) were authorized for issue by the Board of Trustees (BOT) on July 6, 2010. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies that have been used in the preparation of these financial statements are summarized below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1
(a)

Basis of Preparation of Financial Statements
Statement of Compliance with Philippine Financial Reporting Standards The financial statements of the University have been prepared in accordance with Philippine Financial Reporting Standards (PFRS). PFRS are adopted by the Financial Reporting Standards Council (FRSC) from the pronouncements issued by the International Accounting Standards Board. The financial statements have been prepared using the measurement bases specified by PFRS for each type of asset, liability, income and expense. These financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial assets. The measurement bases are more fully described in the accounting policies that follow.

(b)

Presentation of Financial Statements The financial statements are presented in accordance with Philippine Accounting Standard (PAS) 1 (Revised 2007), Presentation of Financial Statements. The University presents all items of income and expenses in a single statement of comprehensive income. Two comparative periods are presented for the statement of financial position when the University applies an accounting policy retrospectively, makes a retrospective restatement of items in its financial statements, or reclassifies items in the financial statements. Certain accounts in 2009 and 2008 financial statements were reclassified to conform with the 2010 financial statement presentation, hence, two comparative periods for the statement of financial position are presented (see Note 4).

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(c)

Functional Currency These financial statements are presented in Philippine pesos, the University’s functional currency, and all values represent absolute amounts except when otherwise indicated. Items included in the financial statements of the University are measured using the currency of the primary economic environment in which the entity operates (the functional currency).

2.2 Adoption of New Interpretations, Revisions and Amendments to PFRS
(a) Effective in fiscal year 2010 that are relevant to the University In 2010, the University adopted the following new revisions and amendments to PFRS that are relevant to the University and effective for financial statements for the annual period beginning on or after January 1, 2009: PAS 1 (Revised 2007) PFRS 7 (Amendment) Various Standards : : : Presentation of Financial Statements Financial Instruments: Disclosures 2008 Annual Improvements to PFRS

Discussed below are the effects on the financial statements of the new and amended standards. (i) PAS 1 (Revised 2007), Presentation of Financial Statements, requires an entity to present all items of income and expense recognized in the period in a single statement of comprehensive income or in two statements: a separate statement of income and a statement of comprehensive income. Income and expense recognized in profit or loss is presented in the statement of income in the same way as the previous version of PAS 1. The statement of comprehensive income includes the profit or loss for the period and each component of income and expense recognized outside of profit or loss or the “non-owner changes in equity”, which are no longer allowed to be presented in the statements of changes in equity, classified by nature (e.g., gains or losses on available-for-sale assets or translation differences related to foreign operations). A statement showing an entity’s financial position at the beginning of the previous period is also required when the entity retrospectively applies an accounting policy or makes a retrospective restatement, or when it reclassifies items in its financial statements. The University’s adoption of PAS 1 (Revised 2007) did not result in any material adjustments in its financial statements as the change in accounting policy only affects presentation aspects. Two comparative periods are presented for the statement of financial position since the University reclassified certain items in the financial statements (see Note 4). The University has elected to present a single statement of comprehensive income (see Note 2.1).

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(ii) PFRS 7 (Amendment), Financial Instruments Disclosures. The amendment requires additional disclosures for financial instruments that are measured at fair value in the statement of financial position. These fair value measurements are categorized into a three-level fair value hierarchy, which reflects the extent to which they are based on observable market data. A separate quantitative maturity analysis must be presented for derivative financial liabilities that shows the remaining contractual maturities, where these are essential for an understanding of the timing of cash flows. The change in accounting policy only results in additional disclosures (see Note 22.2). (iii) 2008 Annual Improvements to PFRS. The FRSC has adopted the Improvements to PFRS 2008 which became effective for the annual periods beginning on or after January 1, 2009. Among those improvements, the following are the amendments relevant to the University: • PAS 36 (Amendment), Impairment of Assets. Where fair value less cost to sell is calculated on the basis of discounted cash flows, disclosures equivalent to those for value-in-use calculation should be made. The amendment has no significant impact on the 2010 financial statements since in 2010 fair values of non-financial assets were not calculated on the basis of discounted cash flows. PAS 39 (Amendment), Financial Instruments: Recognition and Measurement. The definition of financial asset or financial liability at fair value through profit or loss as it related to items that are held for trading was changed. A financial asset or liability that is part of a portfolio of financial instruments managed together with evidence of an actual recent pattern of short-term profit taking is included in such a portfolio on initial recognition. The University determined that adoption of this amendment had no material effect on its 2010 financial statements. PAS 40 (Amendment), Investment Property. PAS 40 is amended to include property under construction or development for future use as investment property in its definition of investment property. This results in such property being within the scope of PAS 40; previously, it was within the scope of PAS 16. Also, if an entity’s policy is to measure investment property at fair value, but during construction or development of an investment property the entity is unable to reliably measure its fair value, then the entity would be permitted to measure the investment property at cost until construction or development is complete. At such time, the entity would be able to measure the investment property at fair value. The adoption had no material effect on its 2010 financial statements as the University has no property under construction or development for future use as investment property.





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(b)

Effective in fiscal year 2010 but not relevant to the University The following amendments, interpretations and improvements to published standards are mandatory for accounting periods beginning on or after January 1, 2009 but are not relevant to the University’s financial statements: PFRS 1 and PAS 27 (Amendments) PFRS 2 (Amendment) PFRS 8 (Amendment) Philippine Interpretation IFRIC 13 IFRIC 16 : : : : : PFRS 1 – First Time Adoption of PFRS and PAS 27 – Consolidated and Separate Financial Statements Share-based Payment Operating Segments Customer Loyalty Programmes Hedges of a Net Investment in a Foreign Operation

(c)

Effective subsequent to fiscal year 2010 There are new PFRS, revisions, amendments, annual improvements and interpretations to existing standards that are effective for periods subsequent to 2010. Among those pronouncements, management has initially determined the following, which the University will apply in accordance with their transitional provisions, to be relevant to its financial statements. (i) Philippine Interpretation IFRIC 17, Distribution of Non-cash Assets to Owners (effective from July 1, 2009). IFRIC 17 clarifies that a dividend payable should be recognized when the dividend is appropriately authorized and is no longer at the discretion of the entity. Also, an entity should measure the dividend payable at the fair value of the net assets to be distributed and the difference between the dividend paid and the carrying amount of the net assets distributed in profit or loss. The University will apply the interpretation prospectively starting January 1, 2010. (ii) Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments (effective from July 1, 2010). It addresses accounting by an entity when the terms of a financial liability are renegotiated and result in the entity issuing equity instruments to a creditor to extinguish all or part of the financial liability. These transactions are sometimes referred to as “debt for equity” exchanges or swaps, and have happened with increased regularity during the financial crisis. The interpretation requires the debtor to account for a financial liability which is extinguished by equity instruments as follows: • the issue of equity instruments to a creditor to extinguish all (or part of a financial liability) is consideration paid in accordance with PAS 39, Financial Instruments: Recognition and Measurement; the entity measures the equity instruments issued at fair value, unless this cannot be reliably measured;



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if the fair value of the equity instruments cannot be reliably measured, then the fair value of the financial liability extinguished is used; and, the difference between the carrying amount of the financial liability extinguished and the consideration paid is recognized in profit or loss.



Management has determined that the adoption of the interpretation will not have any material effect on its financial statements as it does not normally extinguish financial liabilities through equity swap. (iii) 2009 Annual Improvements to PFRS. The FRSC has adopted the Improvements to PFRS 2009. Most of these amendments became effective for annual periods beginning on or after July 1, 2009, or January 1, 2010. Among those improvements, only the following amendments were identified to be relevant to the University’s financial statements: • PAS 1 (Amendment), Presentation of Financial Statements (effective from January 1, 2010). The amendment clarifies the current and non-current classification of a liability that can, at the option of the counterparty, be settled by the issue of the entity’s equity instruments. The University will apply the amendment in its 2011 financial statements but does not expect it to have a material impact on the University’s financial statements. PAS 7 (Amendment), Statement of Cash Flows (effective from January 1, 2010). The amendment clarifies that only an expenditure that results in a recognized asset can be classified as a cash flow from investing activities. The amendment will not have a material impact on the financial statements since only recognized assets are classified by the University as cash flow from investing activities. PAS 17 (Amendment), Leases (effective from January 1, 2010). The amendment clarifies that when a lease includes both land and building elements, an entity assesses the classification of each element as finance or an operating lease separately in accordance with the general guidance on lease classification set out in PAS 17. Management has initially determined that this will not have material impact on the financial statements of the University. PAS 36 (Amendment), Impairment of Assets (effective from January 1, 2010). PAS 36 clarifies that the largest unit permitted for the purpose of allocating goodwill to cash-generating units for goodwill impairment is the operating segment level defined in PFRS 8 before aggregation. This amendment will not have material impact on the University’s financial statements.







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(iv) PFRS 9, Financial Instruments (effective from January 1, 2013). PFRS 9 is the first part of Phase 1 of the project to replace PAS 39, in its entirety by the end of 2010. The main phases are (with a separate project dealing with recognition): o Phase 1: Classification and Measurement o Phase 2: Impairment Methodology o Phase 3: Hedge Accounting PFRS 9 introduces major simplifications of the classification and measurement provisions under PAS 39. These include reduction from four measurement categories into two categories, i.e. fair value and amortized cost, and from several impairment methods into one method. Management is yet to assess the impact that this amendment is likely to have on the financial statements of the University. However, it does not expect to implement the amendments until fiscal year 2014 when all chapters of the PAS 39 replacement have been published at which time the University expects it can comprehensively assess the impact of the revised standard.

2.3 Separate Financial Statements and Investments in Subsidiaries and an Associate
These financial statements are prepared as the University’s separate financial statements. The University also prepares consolidated financial statements as required under PFRS. The University’s investments in subsidiaries and an associate are accounted for in these separate financial statements at cost, less any impairment loss. Impairment loss is provided when there is objective evidence that the investments in subsidiaries, an associate and advances to joint venture under registration will not be recovered. Such impairment loss is measured as the difference between the carrying amount of the investment and the present value of the estimated cash flows discounted at the current market rate of return for similar financial asset. The amount of the impairment loss is recognized in profit or loss in the statement of comprehensive income. Any goodwill arising from the acquisition of investments in subsidiaries and associates, representing the excess of the acquisition costs over the fair value of the University’s share in the identifiable net assets of the acquired subsidiaries or associates at the date of acquisition, is included in the amount recognized as investments in subsidiaries and associates. Subsidiaries are entities over which the University has the power to govern the financial reporting policies generally accompanying a shareholding of more than one half of the voting rights. The University obtains and exercises control through voting rights. The existence and effect of potential voting rights that are currently exercisable and convertible are considered when assessing whether the University controls another entity. Associate is an entity over which the University is able to exert significant influence but which is neither subsidiary nor interest in a joint venture.

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As of March 31, 2010, the registration of the University’s joint venture with PHI Culinary Arts and Food Services, Inc. is pending approval by the SEC. Accordingly, investment made to the joint venture is included under Investments in Subsidiaries and an Associate account as Advances to Joint Venture under Registration. Joint venture is an entity whose economic activities are controlled jointly by the venturers.

2.4 Financial Assets
Financial assets include cash and cash equivalents and other financial instruments. Financial assets, other than hedging instruments, are classified into the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets. Financial assets are assigned to the different categories by management on initial recognition, depending on the purpose for which the investments were acquired. The designation of financial assets is re-evaluated at every reporting date at which date a choice of classification or accounting treatment is available, subject to compliance with specific provisions of applicable accounting standards. Regular purchase and sales of financial assets are recognized on their trade date. All financial assets that are not classified as at fair value through profit or loss are initially recognized at fair value, plus transaction costs. Financial assets carried at fair value through profit or loss are initially recognized at fair value and transaction costs are recognized directly in profit or loss in the statement of comprehensive income. Currently, the University’s financial instruments are categorized as follows: (a) Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the University provides money, goods or services directly to a debtor with no intention of trading the receivables. They are included in current assets when their maturity is within 12 months after the reporting period. Loans and receivables are subsequently measured at amortized cost using the effective interest method, less any impairment loss. Any change in their value is recognized in profit or loss. Impairment loss is provided when there is objective evidence that the University will not be able to collect all amounts due to it in accordance with the original terms of the receivables. The amount of the impairment loss is determined as the difference between the assets’ carrying amount and the present value of estimated cash flows. The University’s financial assets categorized as loans and receivables are presented as Cash and Cash Equivalents, Receivables, Due from a Related Party and Other Current Assets to the extent of the restricted cash and cash equivalents included therein, in the statement of financial position. Cash and cash equivalents are defined as cash on hand, demand deposits and short-term, highly liquid investments readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.

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(b)

Held-to-maturity Investments This includes non-derivative financial assets with fixed or determinable payments and a fixed date of maturity. Investments are classified as held-to- maturity if the University has the positive intention and ability to hold them until maturity which is presented as Held-to-maturity Investments in the non-current section of the statement of financial position, except those maturing within 12 months from the reporting period which are presented as part of current assets. Investments intended to be held for an undefined period are not included in this classification. Held-to-maturity investments are measured at amortized cost using the effective interest method. In addition, if there is objective evidence that the investment has been impaired, the financial asset is measured at the present value of estimated cash flows. Changes to the carrying amount of the investment are recognized in profit or loss.

(c)

Available-for-sale Financial Assets This include non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any of the other categories of financial assets. These are presented as Available-for-sale Investments in the non-current section of the statement of financial position unless management intends to dispose of the investment within 12 months from the reporting period. All financial assets within this category are subsequently measured at fair value, unless otherwise disclosed, with changes in value recognized in other comprehensive income, net of any effects arising from income taxes. When the asset is disposed of or is determined to be impaired the cumulative gain or loss recognized in other comprehensive income is reclassified from revaluation reserve to profit or loss and presented as a reclassification adjustment within other comprehensive income. Reversal of impairment loss is recognized in other comprehensive income, except for financial assets that are debt securities which are recognized in profit or loss only if the reversal can be objectively related to an event occurring after the impairment loss was recognized.

Impairment losses, except those pertaining to tuition and other fees receivables which are presented under Operating Expenses, recognized on financial assets are presented as part of Finance Costs in the statement of comprehensive income. For investments that are actively traded in organized financial markets, fair value is determined by reference to stock exchange-quoted market bid prices at the close of business on the reporting period. For investments where there is no quoted market price, fair value is determined by reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows (such as dividend income) of the underlying net asset base of the investment.

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Non-compounding interest, dividend income and other cash flows resulting from holding financial assets are recognized in profit or loss when earned, regardless of how the related carrying amount of financial assets is measured. All income and expense relating to financial assets recognized in profit or loss are presented in the statement of comprehensive income line item Finance Income and Finance Costs, respectively. Derecognition of financial assets occurs when the rights to receive cash flows from the financial instruments expire or are transferred and substantially all of the risks and rewards of ownership have been transferred.

2.5 Property and Equipment
Except for land, which is stated at cost less any impairment in value, property and equipment are stated at cost less accumulated depreciation and amortization, and impairment in value, if any. The cost of an asset comprises its purchase price and directly attributable costs of bringing the asset to working condition for its intended use. Expenditures for additions, major improvements and renewals are capitalized; expenditures for repairs and maintenance are charged to expense as incurred. When assets are sold, retired or otherwise disposed of, their cost and related accumulated depreciation, amortization and impairment losses are removed from the accounts and any resulting gain or loss is reflected in income for the period. Depreciation and amortization are computed on the straight-line basis over the estimated useful lives of the assets as follows: Building and improvements Leasehold improvements Furniture and equipment Miscellaneous equipment 20 years 20 years 3-6 years 5 years

Leasehold improvements are amortized over 20 years regardless of the term of lease contract which is usually shorter than the expected useful life of the improvements because it is highly probable that the lease contract with FRC will be renewed before the end of such contract. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (see Note 2.12). The residual values and estimated useful lives of property and equipment are reviewed, and adjusted if appropriate, at the end of each reporting period. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in profit or loss in the year the item is derecognized.

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2.6 Investment Property
Investment property is measured initially at acquisition cost. Subsequently, investment property, except land which is carried at cost less impairment in value, if any, is carried at cost less accumulated depreciation and impairment in value. Depreciation of investment property, which consists of building and improvements, are computed using the straight-line method over its estimated useful life of 20 years. Investment property is derecognized upon disposal or when permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss on the retirement or disposal of an investment property is recognized in profit or loss in the year of retirement or disposal. Transfers are made to investment property when, and only when, there is a change in use, evidenced by the end of owner-occupation, commencement of an operating lease to another party or by the end of construction or development. Transfers are made from investment property when, and only when, there is a change in use, evidenced by commencement of the owner-occupation of commencement of development with a view to sell.

2.7 Financial Liabilities
Financial liabilities of the University include accounts payable and other liabilities, which are measured at amortized cost using the effective interest rate method. Financial liabilities are recognized when the University becomes a party to the contractual agreements of the instrument. All interest related charges are recognized as an expense in profit or loss under the caption Finance Costs in the statement of comprehensive income. The liabilities are initially recognized at their fair value and subsequently measured at amortized cost. Financial liabilities are derecognized from the statement of financial position only when the obligations are extinguished either through discharge, cancellation or expiration.

2.8 Provisions
Provisions are recognized when present obligations will probably lead to an outflow of economic resources and they can be estimated reliably even if the timing or amount of the outflow may still be uncertain. A present obligation arises from the presence of a legal or constructive commitment that has resulted from past events. Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the end of the reporting period, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. When time value of money is material, long term-provisions are discounted to their present values using a pretax rate that reflects market assessments and the risks specific to the obligation. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate.

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In those cases where the possible outflow of economic resource as a result of present obligations is considered improbable or remote, or the amount to be provided for cannot be measured reliably, no liability is recognized in the financial statements. Similarly, possible inflows of economic benefits to the University that do not yet meet the recognition criteria of an asset are considered contingent assets, hence, are not recognized in the financial statements. On the other hand, any reimbursement that the University can be virtually certain to collect from a third party with respect to the obligation is recognized as a separate asset not exceeding the amount of the related provision.

2.9 Revenue and Expense Recognition
Revenue is recognized to the extent that the revenue can be reliably measured, it is probable that the economic benefits will flow to the University, and the costs incurred or to be incurred can be measured reliably. In addition, the following specific recognition criteria must also be met before revenue is recognized: (a) Tuition and Other School Fees – Revenue is recognized in profit or loss over the corresponding school term. Tuition fee received in advance and applicable to a school term after the reporting period is not recognized in profit or loss until the next reporting period (see also Note 12). (b) Management Fees – Revenue is recognized on a monthly basis upon rendering of the services. (c) Interest – Income is recognized as the interest accrues taking into account the effective yield on the asset.

(d) Rental – Revenue is recognized over the lease term using the straight-line method. Revenue is measured by reference to the fair value of consideration received or receivable by the University for services rendered, excluding value-added tax (VAT) and discounts. Cost and expenses are recognized in profit or loss upon utilization of goods or services or at the date such cost and expenses are incurred.

2.10 Leases
The University accounts for its leases as follows: (a) University as Lessee Leases which do not transfer to the University substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease payments are recognized as expense in profit or loss in the statement of comprehensive income on a straight-line basis over the lease term. Associated costs, such as maintenance and insurance, are expensed as incurred.

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(b)

University as Lessor Leases which do not transfer to the lessee substantially all the risks and benefits of ownership of the asset are classified as operating leases. Lease income from operating leases is recognized in profit or loss in the statement of comprehensive income on a straight-line basis over the lease term.

The University determines whether an arrangement is, or contains a lease based on the substance of the arrangement. It makes an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.

2.11 Foreign Currency Transactions
The accounting records of the University are maintained in Philippine pesos. Foreign currency transactions during the year are translated into the functional currency at exchange rates which approximate those prevailing on transaction dates. Foreign currency gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the statement of comprehensive income as part of income or loss from operations.

2.12 Impairment of Non-financial Assets
The University’s investments in subsidiaries and an associate, property and equipment, investment property and certain other non-current assets are subject to impairment testing. All other individual assets or cash-generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. An impairment loss is recognized for the amount by which the asset or cash-generating unit’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell, and value in use, based on an internal evaluation of discounted cash flow. Impairment loss is charged pro-rata to the other assets in the cash-generating unit. All assets are subsequently reassessed for indications that an impairment loss previously recognized may no longer exist and the carrying amount of the asset is adjusted to the recoverable amount resulting in the reversal of the impairment loss.

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2.13 Employee Benefits
(a) Post-employment Benefits

Post-employment benefits are provided to employees through a defined contribution plan. A defined contribution plan is a pension plan under which the University pays fixed contributions into an independent entity. The University has no legal or constructive obligations to pay further contributions after payment of the fixed contribution. The contributions recognized in respect of defined contribution plans are expensed as they fall due. Liabilities and assets may be recognized if underpayment or prepayment has occurred and are included in current liabilities or current assets as they are normally of a short term nature. (b) Termination Benefits

Termination benefits are payable when employment is terminated by the University before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The University recognizes termination benefits when it is demonstrably committed to either: (a) terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or (b) providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the reporting period are discounted to present value. (c) Compensated Absences

Compensated absences are recognized for the number of paid leave days (including holiday entitlement) remaining at the end of the reporting period. They are included in Accounts Payable and Other Liabilities account at the undiscounted amount that the University expects to pay as a result of the unused entitlement.

2.14 Trust Funds
This represents restricted funds of the University that are intended for student welfare, development, loan, assistance and scholarship fund, and for other specific educational purposes. The University administers the use of these funds based on the specific purpose such funds are identified with.

2.15 Income Taxes
Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity, if any. Current tax assets or liabilities comprise those claims from, or obligations to, fiscal authorities relating to the current or prior reporting period, that are uncollected or unpaid at end of the reporting period. They are calculated according to the tax rates and tax laws applicable to the fiscal periods to which they relate, based on the taxable profit for the year. All changes to current tax assets or liabilities are recognized as a component of tax expense in profit or loss.

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Deferred tax is provided, using the liability method on temporary differences at the end of the reporting period between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes. Under the liability method, with certain exceptions, deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences and the carryforward of unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deferred income tax asset can be utilized. The carrying amount of deferred tax assets is reviewed at the end of the reporting period and reduced to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, provided such tax rates have been enacted or substantively enacted at the end of the reporting period. Most changes in deferred tax assets or liabilities are recognized as a component of tax expense in profit or loss. Only changes in deferred tax assets or liabilities that relate to items recognized in other comprehensive income or directly in equity are recognized in other comprehensive income or directly in equity.

2.16 Related Parties
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. Transactions between related parties are based on terms similar to those offered to non-related parties.

2.17 Equity
Capital stock represents the nominal value of shares that have been issued. Treasury shares are stated at the cost of re-acquiring such shares. Accumulated fair value gains (losses) comprise gains and losses arising from the revaluation of available-for-sale financial assets. Retained earnings include all current and prior period results of operations as disclosed in profit or loss in the statement of comprehensive income. The appropriated portion represents the amount which is not available for distribution.

2.18 Earnings Per Share
Basic earnings per share (EPS) is determined by dividing net profit by the weighted average number of shares subscribed and issued during the year after giving retroactive effect to stock dividend declared, stock split and reverse stock split during the current year, if any.

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Diluted earnings per share is computed by adjusting the weighted average number of ordinary shares outstanding to assume conversion of dilutive potential shares. The University does not have dilutive potential shares outstanding that would require disclosure of diluted earnings per share in the statement of comprehensive income. 3. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES The University’s financial statements are prepared in accordance with PFRS require management to make judgments and estimates that affect amounts reported in the financial statements and related notes. Judgments and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under circumstances. Actual results may ultimately vary from these estimates.

3.1

Critical Management Judgments in Applying Accounting Policies

In the process of applying the University’s accounting policies, management has made the following judgments, apart from those involving estimation, which have the most significant effect on the amounts recognized in the financial statements: (a) Held-to-maturity Investments In classifying non-derivative financial assets with fixed or determinable payments and fixed maturity, such as bonds, as held-to-maturity investments, the University evaluates its intention and ability to hold such investments up to maturity. If the University fails to keep these investments to maturity other than for specific circumstances as allowed under the standards, it will be required to reclassify the whole class to available-for-sale financial assets. In such a case, the investments would therefore be measured at fair value, not amortized cost. As of March 31, 2010, 2009 and 2008, there are no held-to-maturity investments disposed of before their maturity. (b) Distinction Between Investment Properties and Owner-managed Properties The University determines whether a property qualifies as investment property. In making its judgment, the University considers whether the property generates cash flows largely independent of the other assets held by an entity. Owner-occupied properties generate cash flows that are attributable not only to the property but also to other assets used in the process of supplying educational services. Some properties comprise a portion that is held to earn rental or for capital appreciation and another portion that is held for use in the supply of services or for administrative purposes. If portion can be sold separately (or leased out separately under finance lease), the University accounts for such portion separately. If the portion cannot be sold separately, the property is accounted for as investment property only if an insignificant portion is held for use in the supply of services or for administrative purposes. Judgment is applied in determining whether ancillary services are so significant that a property does not qualify as investment property. The University considers each property separately in making its judgment.

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(c)

Classification of Leases The University has entered into various lease agreements as either a lessor or a lessee. Critical judgment was exercised by management to distinguish each lease agreement as either an operating or finance lease by looking at the transfer or retention of significant risk and rewards of ownership of the properties covered by the agreements. Currently, all of the University’s lease agreements are determined to be operating leases. Rental expense charged to operations amounted to P55.0 million in 2010, P56.2 million in 2009 and P50.5 million in 2008 (see Note 13) while rental income earned in 2010, 2009 and 2008 are presented as Rental Income in the statements of comprehensive income (see Note 8).

(d)

Provisions and Contingencies Judgment is exercised by management to distinguish between provisions and contingencies. Policies on recognition and disclosure of provision and disclosure of contingencies are discussed in Note 2.8 and relevant disclosures are presented in Note 20.

3.2 Key Sources of Estimation Uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year: (a) Allowance for Impairment of Receivables The University maintains an allowance for impairment loss on receivables at a level considered adequate to cover probable uncollectible receivables. The level of this allowance is evaluated by management on the basis of factors that affect the collectibility of the accounts. These factors include, but are not limited to, history of the students’ payment behavior, age of receivables and other external factors affecting the education industry. The University constantly reviews the age and status of receivables, and identifies accounts that should be provided with allowance. Analyses of the net realizable value of receivables as of March 31, 2010, 2009 and 2008 are presented in Note 5. Impairment losses recognized on receivables amounted to about P22.0 million in 2010, P17.6 million in 2009 and P17.4 million in 2008 (see Note 5). (b) Valuation of Financial Assets Other than Loans and Other Receivables The University carries certain financial assets at fair value, which requires the extensive use of accounting estimates and judgment. In cases where active market quotes are not available, fair value is determined by reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows of the underlying net base of the instrument. The amount of changes in fair value would differ if the University utilized different valuation methods and assumptions. Any change in fair value of these financial assets would affect profit and loss and equity.

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Fair value gains and losses recognized on available-for-sale financial assets in 2010, 2009 and 2008 are presented as Accumulated Fair Value Gains (Losses) in the statements of changes in equity (see Note 6). (c) Impairment of Available-for-sale Investments The determination when an investment is other-than-temporarily impaired requires significant judgment. In making this judgment, the University evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost, and the financial health of and near-term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flows. No impairment loss was recognized on available-for-sale investments in 2010, 2009 and 2008. Analyses of the carrying value of the available-for-sale investments as of March 31, 2010, 2009 and 2008 are presented in Note 6. (d) Useful Lives of Investment Property and Property and Equipment The University estimates the useful lives of investment property and property and equipment based on the period over which the assets are expected to be available for use. The estimated useful lives of these assets are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the assets. Analyses of the carrying amounts of investment property and property and equipment are presented in Notes 8 and 9, respectively. Actual results, however, may vary due to changes in factors mentioned above. Based on management assessment as of March 31, 2010, 2009 and 2008, no change in the estimated useful lives of the assets is necessary. (e) Impairment of Non-financial Assets PFRS requires that an impairment review be performed when certain impairment indicators are present. The University’s policy on estimating the impairment of non-financial assets is discussed in detail in Note 2.12. Though management believes that the assumptions used in the estimation of fair values reflected in the financial statements are appropriate and reasonable, significant changes in these assumptions may materially affect the assessment of recoverable values and any resulting impairment loss could have a material adverse effect on the results of operations. The University did not recognize any impairment loss on property and equipment, investment property and investments in subsidiaries and an associate in 2010, 2009 and 2008.

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4.

CASH AND CASH EQUIVALENTS Cash and cash equivalents include the following components as of March 31:
2010 Cash on hand and in banks Short-term placements P P 100,407,916 P 326,755,299 2009 149,405,908 P 972,365,302 2008 193,801,807 954,699,969

427,163,215 P 1,121,771,210 P 1,148,501,776

Cash in banks generally earn interest at rates based on daily bank deposit rates. Short-term placements are made for varying periods of up to three months depending on the immediate cash requirements of the University. These placements earn effective annual interest ranging from 2.5% to 4.5% in 2010, 3.75% to 7.00% in 2009 and 3.75% to 5.25% in 2008 for peso placements and 1.75% to 4.00% in 2009 and 2.25% to 2.50% in 2008 for dollar placements. There are no dollar placements in 2010. Interest income earned from cash and cash equivalents are presented as part of Finance Income in the statements of comprehensive income (see Note 14). Certain portion of cash and cash equivalents are set aside to cover for trust funds (see Note 11). The amount of cash and cash equivalents set aside to cover trust funds were P44.0 million, P58.5 million and P76.2 million as of March 31, 2010, 2009 and 2008, respectively. Considering the restriction on such amounts of cash and cash equivalents, the University retrospectively reclassified them to Other Current Assets in 2010 (see Note 2.1). 5. RECEIVABLES This account is composed of the following:
Notes Tuition and other school fees Allowance for impairment Loans receivable Receivable from: FEU Educational Foundation, Inc. (FEFI) East Asia Educational Foundation, Inc. (EAEF) Related parties 17.2 Accrued interest 4, 6, 17.1 Advances to employees Others P P ( 2010 104,475,283 P 15,727,708) ( 88,747,575 477,000,000 2009 64,246,194 P 14,146,263) ( 50,099,931 2008 (As restated) 54,371,503 11,872,333) 42,499,170 -

36,671,312 22,415,485 7,475,114 11,380,645 9,279,805 46,950,398 699,920,334 P

38,040,770 18,165,787 4,984,005 8,730,337 11,479,722 1,810,105 133,310,657 P

28,843,710 14,116,055 2,341,650 14,644,925 9,145,859 253,658 111,845,027

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A reconciliation of the allowance for impairment loss on receivables at the beginning and end of 2010, 2009 and 2008 is shown below.
Note Balance at beginning of year Impairment losses during the year Receivables written off during the year P 13 ( P 2010 14,146,263 P 22,035,435 20,453,990) ( 15,727,708 P 2009 11,872,333 P 17,581,234 15,307,304) ( 14,146,263 P 2008 11,436,501 17,450,897 17,015,065) 11,872,333

All of the University’s receivables had been reviewed for indicators of impairment. Certain tuition and other fees receivables were found to be impaired and allowance has been recorded accordingly. The allowance for impairment loss on receivables as of March 31, 2010, 2009 and 2008 relates only to receivables from students which have been outstanding for more than one semester and specifically identified to be impaired. No allowance for impairment loss on all other receivables was provided as of March 31, 2010, 2009 and 2008 since management believes that those are collectible in full. Impairment loss recognized on receivables is presented as part of Operating Expenses in the statements of comprehensive income (see Note 13). Loans receivable represents promissory notes issued to certain rental and leasing corporation as part of University’s trust fund arrangement with a certain local bank. Interest income earned from these loans is presented as part of Finance Income in the 2010 statement of comprehensive income (see Note 14). Other receivables in 2010 includes a P43.7 million option money for the acquisition of shares of stock of Crans Montana Holdings Corporation (Crans Montana) (see Note 20.3). Such option money will be refunded to the University upon acquisition of Crans Montana or failure by FEU to pursue such acquisition. Pending consummation of the Crans Montana acquisition, the University temporarily leased the properties (land and building located in Makati City) owned by Crans Montana and made improvements thereon, including construction of a new school building, for the FEU Makati Campus (see Notes 1 and 20.1). In relation to such improvements, the University has made advances to contractors amounting to P52.0 million as of March 31, 2010. Such advances are presented as part of Other Current Assets in the 2010 statement of financial position. The University provides management services to EAEF which agreed to pay management fee computed at a certain percentage of their gross revenue subject to certain conditions. Management fees earned amounted to P14.1 million in 2010, P11.5 million in 2009 and P20.1 million in 2008 which are presented as Management Fees in the statements of comprehensive income. Receivable from EAEF represents the outstanding receivables arising from management services provided by the University to EAEF and those arising from the lease of a school building to EAEF (see Note 8). The University provides cash advances to FEFI for the latter’s operating requirements such as faculty payroll, which FEFI regularly pays to the University. The outstanding receivables arising from this transaction are presented above as Receivable from FEFI.

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6.

AVAILABLE-FOR-SALE (AFS) INVESTMENTS This category of financial assets consists of the following:
2010 Debt securities: Government Corporate Equity securities P 2009 2008 706,326,539 109,258,504 815,585,043 25,102,359 840,687,402

678,179,527 P 792,260,802 P 261,110,403 502,529,786 1,180,709,313 1,053,371,205 21,928,999 19,738,752

P 1,202,638,312 P 1,073,109,957 P

Interest income recognized in 2010, 2009 and 2008 are presented as part of Finance Income in the statements of comprehensive income. Certain AFS investments reached their maturity in 2009 and 2008 and were no longer reinvested; thus reclassified to Cash and Cash Equivalents resulting in the reclassification to profit or loss of cumulative gains of P2.8 million in 2009 and P5.5 million in 2008 which were previously recognized in equity. Analyses of the movements in the carrying amounts of the University’s investments held by trustee banks are presented below.
Note Balance at beginning of year Additions Withdrawals Investment income – net Fair value gains (losses) Balance at end of year 2010 P 1,073,109,957 P 464,552,265 ( 414,986,880) ( 62,571,971 17,390,999 ( 2009 840,687,402 P 663,027,476 467,769,330) ( 45,180,490 8,016,081) 2008 816,893,531 287,469,902 302,906,036) 37,943,665 1,286,340 840,687,402

14

P 1,202,638,312 P 1,073,109,957 P

7.

INVESTMENTS IN SUBSIDIARIES AND AN ASSOCIATE This account consists of the following as of March 31:
2010 Investments in: Subsidiaries FRC EACCI FECSI Associate – JMCI Allowance for impairment Advances to joint venture under registration P 2009 2008

P

(

64,419,299 P 20,104,999 6,250,000 7,878,121 2,338,930) ( 96,313,489 6,250,000 102,563,489 P

64,419,299 P 20,104,999 6,250,000 7,878,121 2,338,930) ( 96,313,489 96,313,489 P

63,297,699 20,104,999 7,878,121 2,338,930) 88,941,889 88,941,889

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In November 2009, the University entered into a JV Agreement with a co-venturer to establish and operate a culinary skills training center which shall provide courses of study in the culinary arts. The University and co-venturer invested P6.3 million each to ICF-CCE, Inc., the JVC. Pending approval by the SEC of the JVC’s registration (see Notes 1 and 2.3), the amount invested by the University is presented as Advances to Joint Venture under Registration in the Investment in Subsidiaries and an Associate account in the 2010 statement of financial position. The registration with the SEC was approved after the reporting date (see Note 1). In April 2008, the University made an additional investment in FRC amounting to P1.1 million which increased the University’s equity ownership interest from 36.73% to 37.52%. The shares of stocks of the subsidiaries and an associate are not listed in the stock exchange; hence, the fair value of the shares cannot be determined reliably. However, management believes that the carrying amount of the investments is fully recoverable. 8. INVESTMENT PROPERTY This account consists of the FEU East Asia Main Building and its improvements being leased out to EAEF. The gross carrying amounts and accumulated depreciation of investment property at the beginning and end of 2010, 2009 and 2008 are shown below.
Land March 31, 2010 Cost Accumulated depreciation Net carrying amount March 31, 2009 Cost Accumulated depreciation Net carrying amount March 31, 2008 Cost Accumulated depreciation Net carrying amount April 1, 2007 Cost Accumulated depreciation Net carrying amount P P P P P P P P Building and Improvements 207,626,479 P 76,547,068) ( 131,079,411 P 207,626,479 P 66,165,743) ( 141,460,736 P 204,900,484 P 55,895,547) ( 149,004,937 P 204,900,484 P 45,185,685) ( 159,714,799 P Total 261,021,205 76,547,068) 184,474,137 261,021,205 66,165,743) 194,855,462 258,295,210 55,895,547) 202,399,663 258,295,210 45,185,685) 213,109,525

53,394,726 P ( 53,394,726 P 53,394,726 P ( 53,394,726 P 53,394,726 P ( 53,394,726 P 53,394,726 P ( 53,394,726 P

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A reconciliation of the carrying amounts at the beginning and end of 2010, 2009 and 2008, of investment property is shown below.
Land Balance at April 1, 2009, net of accumulated depreciation Depreciation charges for the year Balance at March 31, 2010, net of accumulated depreciation Balance at April 1, 2008, net of accumulated depreciation Additions Depreciation charges for the year Balance at March 31, 2009, net of accumulated depreciation Balance at April 1, 2007, net of accumulated depreciation Depreciation charges for the year Balance at March 31, 2008, net of accumulated depreciation Building and Improvements Total

P

53,394,726 P (

141,460,736 P 10,381,325) (

194,855,462 10,381,325)

P

53,394,726 P

131,079,411 P

184,474,137

P

53,394,726 P (

149,004,937 P 2,725,995 10,270,196) (

202,399,663 2,725,995 10,270,196)

P

53,394,726 P

141,460,736 P

194,855,462

P

53,394,726 P (

159,714,799 P 10,709,862) (

213,109,525 10,709,862)

P

53,394,726 P

149,004,937 P

202,399,663

The total rental income earned from investment property amounted to P39.2 million in 2010, P22.9 million in 2009 and P25.5 million in 2008 which are presented as Rental under Other Income (Charges) in the statements of comprehensive income (see also Note 20.2). The direct operating expenses incurred by the University relating to the investment property is presented as part of Depreciation and Amortization under General Operating Expenses in the statements of comprehensive income (see Note 13). The fair value of investment property as of March 31, 2010 is P280.2 million and P386.5 million as of March 31, 2009 and 2008 which were determined based on the most recent valuation performed by independent appraisers immediately after the reporting periods.

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9.

PROPERTY AND EQUIPMENT The gross carrying amounts and accumulated depreciation and amortization at the beginning and end of 2010, 2009 and 2008 are shown below.
Land March 31, 2010 Cost Accumulated depreciation and amortization Net carrying value March 31, 2009 Cost Accumulated depreciation and amortization Net carrying value March 31, 2008 Cost Accumulated depreciation and amortization Net carrying value April 1, 2007 Cost Accumulated depreciation and amortization Net carrying value P 98,457,565 P P 98,457,565 98,457,565 P P 98,457,565 98,457,565 P P 98,457,565 98,457,565 P 98,457,565 ( P ( P P ( P P ( P P Building and Improvements P 628,387,963 115,382,431 ) ( 513,005,532 513,765,632 89,307,115 ) ( 424,458,517 391,268,141 67,658,804) ( 323,609,337 363,116,887 48,836,475) ( 314,280,412 P P P P P P P Furniture and Equipment P 123,613,889 98,019,303 ) ( 25,594,586 114,826,750 88,590,851 ) ( 26,235,899 107,011,947 77,080,300 ) ( 29,931,647 88,895,056 66,938,240 ) ( 21,956,816 P P P P P P P Leasehold Improvements P 72,998,023 18,647,599 ) ( 54,350,424 65,423,403 15,190,788 ) ( 50,232,615 50,719,189 12,325,394 ) ( 38,393,795 49,301,578 9,860,315 ) ( 39,441,263 P P P P P P P Miscellaneous Equipment P 18,208,452 12,115,403) ( 6,093,049 13,515,760 11,889,255) ( 1,626,505 12,409,149 11,659,252 ) ( 749,897 12,090,999 11,543,857 ) ( 547,142 P P P P P P P P Total 941,665,892 244,164,736 ) 697,501,156 805,989,110 204,978,009 ) 601,011,101 659,865,991 168,723,750 ) 491,142,241 611,862,085 137,178,887 ) 474,683,198

A reconciliation of the carrying amounts, at the beginning and end of 2010, 2009 and 2008, of property and equipment is shown below.
Land Balance at April 1, 2009, net of accumulated depreciation and amortization Additions Depreciation and amortization charges for the year Balance at March 31, 2010, net of accumulated depreciation and amortization Balance at April 1, 2008, net of accumulated depreciation and amortization Additions Depreciation and amortization charges for the year Balance at March 31, 2009, net of accumulated depreciation and amortization Balance at April 1, 2007, net of accumulated depreciation and amortization Additions Depreciation and amortization charges for the year Balance at March 31, 2008, net of accumulated depreciation and amortization Building and Improvements Furniture and Equipment Leasehold Improvements Miscellaneous Equipment Total

P

98,457,565 (

P

424,458,517 114,622,330 26,075,315 ) (

P

26,235,899 10,411,464 11,052,777 ) (

P

50,232,615 7,574,620 3,456,811 ) (

P

1,626,505 4,692,693 226,149) (

P

601,011,101 137,301,107 40,811,052)

P

98,457,565

P

513,005,532

P

25,594,586

P

54,350,424

P

6,093,049

P

697,501,156

P

98,457,565 (

P

323,609,337 122,497,491 21,648,311 ) (

P

29,931,647 7,814,803 11,510,551 ) (

P

38,393,795 14,704,214 2,865,394 ) (

P

749,897 P 1,106,611 230,003 ) (

491,142,241 146,123,119 36,254,259 )

P

98,457,565

P

424,458,517

P

26,235,899

P

50,232,615

P

1,626,505

P

601,011,101

P

98,457,565 (

P

314,280,412 28,151,254 18,822,329 ) (

P

21,956,816 18,116,891 10,142,060 ) (

P

39,441,263 1,417,611 2,465,079 ) (

P

547,142 318,150 115,395 ) (

P

474,683,198 48,003,906 31,544,863 )

P

98,457,565

P

323,609,337

P

29,931,647

P

38,393,795

P

749,897

P

491,142,241

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10.

ACCOUNTS PAYABLE AND OTHER LIABILITIES This account consists of:
Notes Accounts payable Accrued expenses Dividends payable Funds payable Amounts due to students Withholding and other taxes payable Payable to FEU retirement plan Accrued salaries and employee benefits Deposits payable Other current liabilities P 17.3 18.2 2010 47,803,128 P 89,586,908 71,226,466 55,705,967 37,573,353 36,131,410 15 32,313,215 29,614,032 1,340,235 9,029,590 P 410,324,304 P 2009 41,270,585 P 74,459,814 57,606,705 38,743,170 33,746,306 36,045,790 36,901,623 54,229,149 1,326,485 6,207,225 380,536,852 P 2008 35,707,914 57,845,983 139,805,663 27,887,733 46,555,113 43,473,581 41,886,105 30,048,030 1,326,485 5,728,383 430,264,990

Accrued expenses include the University’s accrual for utilities, rentals and directors’ bonuses. Funds payable are amounts due to third parties for cooperative members’ fees; school uniforms of students; and computer loans of employees. Amounts due to students represent excess payment of miscellaneous fees from students. 11. TRUST FUNDS This account consists of the following as of March 31:
2010 Visual aid development fund FEU Central Student Organization: Student loan fund Student scholarship fund Student welfare and development fund Student assistance fund Others P 14,635,307 P 13,384,402 2,290,745 13,141,458 518,838 P 43,970,750 P 2009 13,224,923 P 12,777,129 3,902,308 26,202,141 2,384,141 58,490,642 P 2008 13,670,640 10,502,842 3,919,602 40,693,748 2,653,039 4,722,351 76,162,222

These trust funds represent collections to defray expenses related to activities for specific educational purposes. As discussed in Note 4, the amounts of cash and cash equivalents corresponding to the outstanding balances of these funds presented as part of Other Current Assets in the statements of financial position are set aside and restricted for such purposes.

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12.

TUITION AND OTHER SCHOOL FEES Details of net tuition and other school fees presented in the statements of comprehensive income are as follows:
2010 Tuition Less discounts: Scholarship Cash Family 2009 2008

P 1,746,362,097 P 1,694,493,469 P 1,655,826,499 61,000,082 10,294,191 9,277,458 80,571,731 1,665,790,366 63,723,848 10,214,508 8,746,646 82,685,002 1,611,808,467 29,904,890 8,775,916 9,030,205 1,745,791 824,008 50,280,810 57,508,745 10,038,965 7,595,756 75,143,466 1,580,683,033 13,500,341 8,655,013 7,919,956 2,315,965 755,235 33,146,510

Other school fees: Entrance fees Identification cards Transcript fees Diplomas Miscellaneous

12,879,474 9,903,306 8,794,229 2,910,208 770,448 35,257,665

P 1,701,048,031 P 1,662,089,277 P 1,613,829,543

Towards the end of the fiscal year, the University collected tuition fees from students for summer classes which start after the reporting period. Such collections are excluded from tuition fees earned for the year and presented as Unearned Tuition Fees in the 2009 and 2008 statements of financial position and recognized as revenue in the following year. There are no unearned tuition fees in 2010. 13. OPERATING EXPENSES Operating expenses consists of:
Notes Instructional and Academic Salaries and allowances Employees benefits Related learning experience Affiliation Others Administrative Salaries and allowances Rental Employees benefits Directors’ bonus Others 17.5 P 15, 17.5 2010 519,662,398 P 165,028,563 31,738,871 17,153,509 19,128,326 752,711,667 92,596,727 55,008,187 44,727,498 12,010,000 14,167,855 218,510,267 2009 527,192,891 P 164,350,335 21,641,432 9,960,332 21,503,870 744,648,860 84,461,509 56,180,367 39,266,335 11,750,000 10,259,595 201,917,806 2008 495,587,597 150,395,234 19,474,376 11,418,035 17,370,504 694,245,746 77,655,820 50,504,658 36,165,361 10,500,000 11,502,529 186,328,368

17.3 15

- 27 Notes Maintenance and University Operations Utilities Salaries and allowances Janitorial services Repairs and maintenance Employee benefits Property insurance 2010 2009 2008

15

66,785,904 21,722,461 11,915,987 11,406,398 11,198,934 1,485,816 124,515,500

67,818,876 23,490,070 12,808,640 4,619,377 11,296,291 1,160,749 121,194,003

60,771,052 24,196,975 11,707,163 4,330,271 11,772,106 564,594 113,342,161

General Depreciation and amortization 8, 9 Impairment losses on receivables 5 Security services Publicity and promotions Professional fees Maintenance of art works Donation and charitable contributions Taxes and licenses Others Total Operating Expenses

51,192,377 22,035,435 15,782,208 9,017,636 8,818,080 2,812,457 1,803,543 654,492 2,724,460 114,840,688

46,524,455 17,581,234 25,834,071 6,615,235 6,306,848 6,176,320 629,864 1,985,560 2,896,714 114,550,301

42,254,725 17,450,897 18,314,315 8,033,477 5,416,097 2,184,264 533,888 505,605 5,582,853 100,276,121

P 1,210,578,122 P 1,182,310,970 P 1,094,192,396

14.

FINANCE INCOME This account consists of interest income from:
Notes AFS investments Cash and cash equivalents Due from a related party Loans receivable HTM investments Foreign exchange gains – net 6 4 17.1 5 P 2010 62,571,971 P 41,295,682 5,698,023 2,192,416 1,650,000 P 113,408,092 P 2009 45,180,490 P 65,927,344 4,895,036 1,672,563 3,037,732 120,713,165 P 2008 37,943,665 62,635,081 3,164,618 2,679,885 106,423,249

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15.

EMPLOYEES’ HEALTH, WELFARE AND RETIREMENT FUND The University maintains a funded and contributory retirement plan, which is a defined contribution type of retirement plan since 1967, covering regular teaching and non-teaching personnel members. The retirement fund is under the administration of an organization, the FEU Health, Welfare and Retirement Fund (the Fund), through its Retirement Board. Contributions to this fund are in accordance with the defined contribution established by the Retirement Board which is the sum of the employees’ and the University’s contributions. Employees’ contribution is 5% of basic salary while the University’s contribution is equivalent to 20% of the employees’ basic salary. Retirement expense recognized in profit or loss in the statements of comprehensive income amounted to P86.6 million in 2010, P85.9 million in 2009 and P63.4 million in 2008 (see Note 13). The Fund’s statements of financial position as of December 31, 2009, 2008 and 2007 showed the following:
2009 Assets Money market placements Receivables Cash in banks Others Liabilities Net Assets P 715,250,000 P 52,926,997 9,997,093 136,263 778,310,353 55,569,843) ( 722,740,510 P 2008 643,050,000 P 38,547,269 10,784,913 185,654 692,567,836 50,395,960) ( 642,171,876 P 2007 555,853,116 40,186,159 4,628,136 208,505 600,875,916 49,871,692) 551,004,224

( P

16.

INCOME TAXES The components of the University’s tax expense presented in profit or loss are as follows:
2010 Current tax expense: Special rate at 10% Final tax at 20% Deferred tax expense (income): Deferred tax arising from origination and reversal of temporary differences P 56,990,568 P 21,103,483 78,094,051 2009 51,743,268 P 20,543,679 72,286,947 2008 59,615,310 19,135,613 78,750,923

( P

1,388,091) 76,705,960 P

2,888,741 ( 75,175,688 P

2,965,176) 75,785,747

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A reconciliation of tax on pretax income computed at the applicable statutory rates to tax expense reported in profit or loss follows:
2010 Tax on pretax income at 10% Adjustments for income subjected to higher tax rates Derecognition of previously recognized deferred tax Others Tax expense P 66,188,724 P 10,551,718 ( P 34,482) ( 76,705,960 P 2009 64,217,355 P 9,265,639 1,700,000 7,306) 75,175,688 P 2008 66,869,175 8,809,750 106,822 75,785,747

The net deferred tax assets relate to the following as of March 31:
2010 Deferred tax assets: Accrued rent expense Allowance for impairment on receivables Unrealized foreign currency loss Unearned income Accrued donation Deferred tax liability – Unrealized foreign currency gains Deferred tax expense (income) Deferred tax assets – net Statements of Financial Position 2009 2008 2010 Profit or Loss 2009 2008

P

5,168,876 1,572,771 348,299 (

P 4,591,002 1,414,626 303,773 ) P 5,701,855

P

3,543,085 1,187,233 474,786 1,685,492 1,700,000 -

(P ( (

577,874) ( P 1,047,917 ) 158,145) ( 348,299) 303,773) 227,393 ) 474,786 1,685,492 1,700,000 303,773 P 2,888,741

( P 1,131,710 ) ( ( ( 43,583 ) 104,391 ) 1,685,492 ) ( P 2,965,176 )

(

( P 1,388,091) P 7,089,946 P 8,590,596

The University availed of the Tax Incentives Provisions of Republic Act (R.A.) No. 8525, Adopt-a-School Act of 1998. Total benefit from the availment of these tax incentives provided under the R.A. is the sum of the amount of contribution/donation that was actually, directly and exclusively incurred for the Adopt-a-School Program, with limitations, conditions and rules set forth in Section 34 (H) of the Tax Code and fifty percent (50%) of the amount of such contribution/donation. 17. RELATED PARTY TRANSACTIONS The University’s related parties include its subsidiaries, the University’s key management and others as described below. The following are its significant transactions with related parties:

17.1 Interest-bearing Advances
The University has outstanding cash advances to FRC with an aggregate principal amount of P100.0 million as of March 31, 2009 and 2008. These advances bear interest due quarterly based on 91-day Treasury bill rates ranging from 3.94% to 4.55% in 2010, 4.61% to 6.84% in 2009 and 3.95% to 4.15% in 2008. In 2010, additional advances amounting to P118.8 million were granted by the University to FRC for the construction of school building and campus for FECSI. Interest rate charged on these advances is fixed at 2.5% per annum based on usual interest rate on the University’s placements.

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Total interest income earned from the advances amounted to P5.7 million in 2010, P4.9 million in 2009 and P3.2 million in 2008 which were presented as part of Finance Income in the statements of comprehensive income (see Note 14). The related outstanding interest receivables are shown as Accrued Interest under the Receivables account in the statements of financial position (see Note 5). The movement in the outstanding balance which is presented as Due from a Related Party in the statements of financial position is shown below.
2010 Balance at beginning of year Advances during the year Balance at end of year P P 100,000,000 P 118,774,500 218,774,500 P 2009 100,000,000 P 100,000,000 P 2008 100,000,000 100,000,000

17.2 Noninterest-bearing Advances
The University grants unsecured and noninterest-bearing advances to certain related parties for working capital purposes which are currently due and demandable. Summarized below are the outstanding receivables shown as part of receivable from related parties under the Receivables account in the statements of financial position arising from these transactions (see Note 5).
Net Additions P 775,647 1,866,708 Net Additions (Deductions)

2008 FRC FECSI P 2,341,650 P 2,341,650

2009

2010

P 3,117,297 (P 2,828,391) P 288,906 1,866,708 5,319,500 7,186,208 P 4,984,005 P 2,491,109 P 7,475,114

P 2,462,355

17.3 Lease of Campus Premises from FRC
The University leases certain buildings located within the campus premises from FRC for a period of 10 years from July 1, 2005 to June 30, 2015. The lease period is renewable subject to conditions mutually agreed upon by both parties. Total rental expense charged to operations amounted to P55.0 million in 2010, P56.2 million in 2009 and P50.5 million 2008 under the Administrative Expenses (see Note 13) while outstanding payables as of March 31, 2010, 2009 and 2008 amounted to P45.8 million, P42.6 million and P36.1 million, respectively, presented as part of Accrued Expenses under Accounts Payable and Other Liabilities in the statements of financial position (see Note 10). .

17.4 Lease of Certain Floor to FRC
The University leases the mezzanine floor of one of the University’s building to FRC for a period of 10 years from September 1, 2007 to August 31, 2017, renewable upon mutual consent of both parties. Based on the lease contract, the University provides discounts on the monthly rental during the lean season of the school year. Rent income from FRC amounted to P800,000 in 2010 and 2009 and P560,000 in 2008 which is shown as part of Rental under Other Income (Charges) in the statements of comprehensive income. There are no outstanding receivables as of the end of each year.

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17.5 Key Management Personnel Compensation
Total remunerations of the University’s key management personnel presented as part of salaries and allowances and employees benefits under the Instructional and Academic Expenses (see Note 13) is as follows:
2010 Short-term benefits Retirement benefits P P 116,432,220 P 18,247,691 134,679,911 P 2009 113,999,963 P 18,063,955 132,063,918 P 2008 100,412,356 16,321,494 116,733,850

18.

EQUITY

18.1 Capital Stock
Shares 2010 Common shares – P100 par value Authorized Issued and outstanding: Balance at beginning of year Issued during the year Balance at end of year Treasury stock – at cost Total outstanding ( 9,845,779 9,845,779 37,331) ( 9,808,448 7,043,699 2,802,080 9,845,779 37,331 ) ( 9,808,448 7,043,699 7,043,699 37,331 ) ( 7,006,368 P P 984,577,900 984,577,900 3,733,100) ( 980,844,800 P P 704,369,900 P 704,369,900 280,208,000 984,577,900 3,733,100 ) ( 980,844,800 P 704,369,900 3,733,100 ) 700,636,800 10,000,000 10,000,000 10,000,000 2009 2008 2010 Amount 2009 2008

18.2 Retained Earnings
Significant transactions affecting Retained Earnings, which is also restricted at an amount equivalent to the cost of treasury shares, are as follows: (a) Appropriation of Retained Earnings Appropriated Retained Earnings consists of appropriations for:
Note Property and investment acquisition Expansion of facilities General retirement Contingencies 20.4 Purchase of equipment and improvements Acquisition of laboratory equipment Repairs and improvements 2010 2009 2008

P 1,000,000,000 P 599,333,335 57,000,000 18,765,682 P 1,675,099,017 P

P 899,333,335 1,010,000,000 57,000,000 57,000,000 18,765,682 20,161,414 30,000,000 20,000,000 10,000,000

975,099,017 P 1,147,161,414

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On March 25, 2008, additional appropriation for school expansion of P300 million was approved by the BOT. In 2009, the University made a reversal of appropriations amounting to P172.1 million pertaining to expansion of facilities, repairs and improvements, acquisition of laboratory equipment and purchase of equipment and improvements. In 2010, the University appropriated P1.0 billion for property and investment acquisition and reversed P300.0 million relating to expansion of facilities. (b) Dividend Declaration The BOT approved the following dividend declarations in 2010, 2009 and 2008, respectively:
Declaration 2010 Cash dividend of P15 per share Cash dividend of P15 per share Date of Record Payment Amount

June 19, 2009 December 15, 2009

July 6, 2009 January 8, 2010

July 20, 2009 January 25, 2010

P

147,126,720 147,126,720

P 2009 Cash dividend of P15 per share June 17, 2008 40% stock dividend equivalent to 2,802,547 shares August 23, 2008 467 fractional shares paid out in cash at P100 per share August 23, 2008 Cash dividend of P15 per share December 16, 2008

294,253,440

July 7, 2008 September 15, 2008 September 15, 2008 January 8, 2009

July 21, 2008 October 9, 2008 October 9, 2008 January 22, 2009

P

105,095,520 280,208,000 46,720 147,126,720

P 2008 Cash dividend of P15 per share Cash dividend of P15 per share Cash dividend of P15 per share

532,476,960

June 26, 2007 December 18, 2007 March 25, 2008

July 11, 2007 January 7, 2008 April 10, 2008

July 23, 2007 January 17, 2008 April 24, 2008

P

105,095,520 105,095,520 105,095,520

P

315,286,560

Unpaid dividends as of March 31, 2010, 2009 and 2008 are presented as dividends payable under Accounts Payable and Other Liabilities in the statements of financial position (see Note 10).

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19.

EARNINGS PER SHARE Earnings per share amounts were computed as follows:
2010 Net profit Divided by weighted average number of outstanding shares, net of treasury stock of 37,331 shares Basic and diluted earnings per share P 585,181,285 P 2009 566,997,861 P 2008 592,906,003

9,808,448 P 59.66 P

8,407,408 67.44 P

7,006,368 84.62

The weighted average number of shares outstanding as of March 31, 2009 is computed as follows:
Number of shares Balance at beginning of year Issuance on October 9, 2008 Balance at end of year Divided by total months as of March 31, 2009 Weighted average number of shares outstanding 7,006,368 2,802,080 9,808,448 Months outstanding 12 6 Weighted number of shares 84,076,416 16,812,480 100,888,896 12 8,407,408

There were no stock issuances in 2010 and 2008, hence, the weighted average number of shares outstanding is equivalent to the total outstanding shares as of March 31, 2010 and 2008. The University has no dilutive potential common shares as of March 31, 2010, 2009 and 2008. 20. COMMITMENTS AND CONTINGENCIES

20.1 Operating Lease Commitments – University as Lessee
(a) Lease Agreement with FRC The University is a lessee under non-cancellable operating leases covering certain buildings. The lease has 10-year terms with renewal options and includes annual escalation rates of 10%. The future minimum rentals payable under these non-cancellable operating leases are as follows as of March 31:
2010 2009 2008

Within one year After one year but not more than five years More than five years

P

43,312,809 P 221,116,303 16,222,259

39,375,281 P 201,014,828 79,636,542

35,795,710 182,740,740
137,285,912 355,822,362

P 280,651,371 P 320,026,651 P

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(b) Lease Agreement with Crans Montana The University also entered into a contract of lease with Crans Montana for the building occupied by FEU Makati Campus commencing on November 18, 2009 until November 17, 2010. The parties amended the contract extending the lease term for a period of 10 years. The future minimum rentals payable under this non-cancellable operating lease is as follows as of March 31, 2010: Within one year After one year but not more than five years More than five years P 2,623, 200 10,492,800 12,241,600 25,357,600

P

20.2 Operating Lease Commitments – University as Lessor
The University leases out certain buildings to EAEF for a period of one to ten years until August 31, 2017 (see Note 8). Total rent income recognized in profit or loss amounted to P39.2 million in 2010, P22.9 million in 2009 and P25.5 million in 2008. Future minimum rental receivables, excluding contingent rental, under these operating leases as of March 31, 2010, 2009 and 2008 are as follows:
2010 2009 2008 17,483,208

Within one year After one year but not more than five years More than five years

P

28,666,776 P 114,667,104 57,333,552

28,666,776 P 114,667,104 86,000,328

69,932,832 69,932,832

P 200,667,432 P 229,334,208 P 157,348,872

20.3 Acquisition of Crans Montana
In 2010, the University has made a commitment to acquire all shares of stock of Crans Montana and paid option money amounting to P43.7 million for such acquisition and which shall be refunded to the University upon acquisition or failure to pursue such acquisition (see Note 5). The total acquisition price is about P216.0 million.

20.4 Legal Claims
As of March 31, 2010, 2009 and 2008, the University is a defendant in certain civil cases which are pending in the local courts, certain illegal dismissal cases pending before the national Labor Relations Commission, and a class suit for damages by certain students which is pending before the Court of Appeals. The University’s management and its legal counsel believe that liabilities, if any, which may result from the outcome of these cases, will not materially affect the financial position and results of operations of the University. However, the University has appropriated portion of its retained earnings for these contingencies (see Note 18.2).

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20.5 Others
There are other contingencies that arise in the normal course of business that are not recognized in the University’s financial statements. However, management believes that losses, if any, arising from these commitments and contingencies will not materially affect its financial statements. 21. RISK MANAGEMENT OBJECTIVES AND POLICIES The University is exposed to certain financial risks in relation to financial instruments. Its main purpose for its dealings in financial instruments is to fund operational and capital expenditures. The BOT has overall responsibility for the establishment and oversight of the University’s risk management framework. It has a risk management committee headed by an independent trustee that is responsible for developing and monitoring the University’s policies, which address risk management areas. Management is responsible for monitoring compliance with the University’s risk management policies and procedures and for reviewing the adequacy of these policies in relation to the risks faced by the University. The University does not actively engage in trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the University is exposed to are described below.

21.1 Interest Rate Sensitivity
The University’s exposure to interest rate risk arises from the following interest-bearing financial instruments which are subject to variable interest rates. All other financial assets and liabilities have fixed rates.
Notes 2010 2009 2008

Cash and cash equivalents AFS investments Held-to-maturity investments Due from a related party

4 6

P

427,163,215 P 1,121,771,210 P 1,148,501,776 1,202,638,312 1,073,109,957 840,687,402

20,000,000
17.1 100,000,000

20,000,000
100,000,000

32,071,040
100,000,000

P 1,749,801,527 P 2,314,881,167 P 2,121,260,218

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The following table illustrates the sensitivity of profit before tax for the years with regard to the University’s interest-bearing financial instruments. These percentages have been determined based on the average market volatility rates, using standard deviation, in the previous 12 months, estimated at 68% level of confidence. The sensitivity analysis is based on the University’s financial instruments held at March 31, 2010, 2009 and 2008.
2010 Reasonably possible change in rate Cash and cash equivalents AFS investments Held-to-maturity investments Due from a related party +/-1.39% +/-0.94% +/-1.39% +/-0.78% Effect on profit before tax P 5,925,674 16,034,252 278,000 780,297 Reasonably possible change in rate +/-2.67% +/-2.83% +/-2.67% +/-2.73% 2009 Effect on profit before tax P 31,423,827 28,147,720 534,000 2,733,463 P 62,839,010 2008 Reasonably Effect on possible profit before change in rate tax +/-1.35% +/-1.54% +/-1.35% +/-2.76% P 16,574,626 11,117,533 432,959 2,761,040 P 30,886,158

P 23,018,223

21.2 Credit Risk
Credit risk represents the loss the University would incur if the counterparty failed to perform under its contractual obligations. The University’s exposure to credit risk on its receivables related primarily to the inability of the debtors to pay and students to fully settle the unpaid balance of tuition fees and other charges which are owed to the University based on installment payment schemes. The University has established controls and procedures in its credit policy to determine and to monitor the credit worthiness of the students based on relevant factors. Also, students are not allowed to enroll in the following semester unless the unpaid balance in the previous semester has been paid. The University also withholds the academic records and clearance of the students with unpaid balance, thus ensuring that collectibility is reasonably assured. The University’s exposure to credit risk on its other receivable from debtors and related parties is managed through close account monitoring and setting limits. The University neither has any significant exposure to any individual customer or counterparty nor does it have any other concentration of credit risk arising from counterparties in similar business activities, geographic region or economic parties. With respect to credit risk arising from cash and cash equivalents, receivables, due from a related party, AFS investments and HTM investments, the University’s exposure to credit risk arises from default of the counterparty, with maximum exposure equal to the carrying amount of these instruments. The maximum exposure to credit risk at the end of the reporting period is as follows:
Notes 2010 2009 2008

Cash and cash equivalents Receivables AFS investments Due from a related party HTM investments Restricted cash and cash equivalents

4 5 6 17.1

P

427,163,215 P 1,121,771,210 P 1,148,501,776 699,920,334 133,310,657 111,845,027 1,202,638,312 1,073,109,957 840,687,402 218,774,500 20,000,000 100,000,000 20,000,000 100,000,000 32,071,040

4, 11

43,970,750

58,490,642

76,162,222

P 2,612,467,111 P 2,506,682,466 P 2,309,267,467

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The table below shows the credit quality of the University’s financial assets as of March 31, 2010, 2009 and 2008 (presented in ‘000s) having past due but not impaired components.
Neither past due nor impaired 2010 Cash and cash equivalents Receivables AFS investments Held-to-maturity investments Restricted cash and cash equivalents Due from a related party Past due Impaired Not (see Note 5) impaired

Total

P

427,163 683,522 1,202,638 20,000 43,970 218,775

P

15,728 -

P

16,398 -

P

427,163 715,649 1,202,638 20,000 43,970 218,775

P 2,596,068 2009 Cash and cash equivalents Receivables AFS investments Held-to-maturity investments Restricted cash and cash equivalents Due from a related party

P

15,728

P

16,398

P 2,628,194

P 1,121,771 118,536 1,073,110 20,000 58,491 100,000 P 2,491,908

P

14,146 -

P

14,775 -

P 1,121,771 147,457 1,073,110 20,000 58,491 100,000 P 2,520,829

P

14,146

P

14,775

2008 Cash and cash equivalents Receivables AFS investments Held-to-maturity investments Restricted cash and cash equivalents Due from a related party

P 1,148,502 85,154 840,687 32,071 76,162 100,000 P 2,282,576

P

11,872 -

P

26,692 -

P 1,148,502 123,718 840,687 32,071 76,162 100,000 P 2,321,140

P

11,872

P

26,692

The age of past due but not impaired receivables is about six months for each of the three years.

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The University classifies tuition and other fee receivables from students based on the number of semesters the receivables have been outstanding. Receivables from students that are outstanding for more than one semester are analyzed to determine whether they are impaired. Those that are not outstanding for more than one semester or are currently receivable are determined to be collectible, based on historical experience. The University’s management considers that all the above financial assets are not impaired, except those specifically provided with allowance for impairment, as of the reporting dates and of good credit quality. Cash and cash equivalents, AFS investments and HTM investments are coursed through reputable financial institutions duly approved by the BOT. The balance of Due from a Related Party account is from a profitable related party with good payment record; collections therefrom are reasonably assured.

21.3 Liquidity Risk
The University manages liquidity risk by maintaining a balance between continuity of funding and flexibility. Treasury controls and procedures are in place to ensure that sufficient cash is maintained to cover daily operational and working capital requirements. Management closely monitors the University’s future and contingent obligations and ensures that future cash collections are sufficient to meet them in accordance with internal policies. The University invests in cash placements when excess cash is obtained from operations. Financial liabilities of the University at the end of the reporting period comprise of accounts payable and accrued expenses and dividends payables which are all short-term in nature and have contractual maturities of less than 12 months.

21.4 Other Price Risk Sensitivity
The University’s exposure to price risk arises from its investments in equity and debt securities, which are classified as AFS investments in the statements of financial position. Management monitors its equity and debt securities in its investment portfolio based on market indices. Material investments within the portfolio are managed on an individual basis. AFS investments consist of publicly listed equity securities and government securities which are carried at fair value and non-listed equity securities for which no fair value information is available and that are therefore carried at cost. For equity securities listed in the Philippines, an average volatility of 26.06%, 36.68% and 56.14% has been observed during 2010, 2009 and 2008 respectively. If quoted price for these securities increased or decreased by that amount profit before tax would have changed by P4.9 million, P7.1 million and P9.8 million in 2010, 2009 and 2008, respectively. The investments in listed equity securities are considered long-term strategic investments. In accordance with the University’s policies, no specific hedging activities are undertaken in relation to these investments. The investments are continuously monitored and voting rights arising from these equity instruments are utilized in the University’s favor.

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22.

CATEGORIES AND FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

22.1 Comparison of Carrying Amounts and Fair Values
The carrying amounts and fair values of the categories of financial assets and liabilities presented in the statements of financial position are shown below.
Notes Carrying Values
Financial assets
Loans and receivables Cash and cash equivalents Receivables Restricted cash and cash equivalents Due from a related party 4 5 4, 11 P 427,163,215 699,920,334 43,970,750 218,774,500 1,389,828,799 AFS investments Debt securities Equity securities 6 1,180,709,313 21,928,999 1,202,638,312 HTM investments Debt securities P 20,000,000 2,612,467,111 1,180,709,313 21,928,999 1,202,638,312 20,000,000 P 2,612,467,111 P 1,053,371,205 19,738,752 1,073,109,957 20,000,000 2,506,682,466 1,053,371,205 19,738,752 1,073,109,957 20,000,000 P 2,506,682,466 815,585,043 25,102,359 840,687,402 32,071,040 P 2,309,267,467 815,585,043 25,102,359 840,687,402 32,071,040 P 2,309,267,467 P 427,163,215 699,920,334 43,970,750 218,774,500 1,389,828,799 P 1,121,771,210 133,310,657 58,490,642 100,000,000 1,413,572,509 P 1,121,771,210 133,310,657 58,490,642 100,000,000 1,413,572,509 P 1,148,501,776 111,845,027 76,162,222 100,000,000 1,436,509,025 P 1,148,501,776 111,845,027 76,162,222 100,000,000 1,436,509,025

2010 Fair Values Carrying Values

2009 Fair Values Carrying Values

2008 Fair Values

Financial liabilities
Accounts payable and accrued expenses 10 P 410,324,304 P 410,324,304 P 380,536,852 P 380,536,852 P 430,264,990 P 430,264,990

See Notes 2.4 and 2.7 for a description of the accounting policies for each category of financial instruments. A description of the University’s risk management objectives and policies for financial instruments is provided in Note 21.

22.2 Fair Value Hierarchy
The University adopted the amendments to PFRS 7, Improving Disclosures about Financial Instruments, effective January 1, 2009. These amendments require the University to present certain information about financial instruments measured at fair value in the statements of financial position. In the first year of application, comparative information need not be presented for the disclosures required by the amendment. Accordingly, the disclosure for the fair value hierarchy is only presented for March 31, 2010. In accordance with this amendment, financial assets and liabilities measured at fair value in the statements of financial position are categorized in accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based on the significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value hierarchy has the following levels: • • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices included within Level 1 that are observable for the resource or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and, Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).



- 40 -

The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement. The breakdown of the University’s AFS investments measured at fair value in its statement of financial position as of March 31, 2010 is as follows:
Level 1 Debt securities: Government Corporate Equity securities Level 2 Level 3 Total

P

678,179,527 55,540,548 21,928,999

P

-

P

P 678,179,527 446,989,238 502,529,786 21,928,999

P 755,649,074

P

P 446,989,238 P 1,202,638,312

23.

CAPITAL MANAGEMENT OBJECTIVES, POLICIES AND PROCEDURES The University aims to provide returns on equity to shareholders while managing operational and strategic objectives. The University manages its capital structure and makes adjustments to it, in the light of changes in economic conditions. To maintain or adjust capital structure, the University may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The University defines capital as paid-in capital stock and retained earnings, both appropriated and unappropriated. Other components of equity such as treasury stock and revaluation reserves are excluded from capital for purposes of capital management. The BOT has overall responsibility for monitoring of capital in proportion to risks. Profiles for capital ratios are set in the light of changes in the University’s external environment and the risks underlying the University’s business, operation and industry. The University monitors capital on the basis of debt-to-equity ratio, which is calculated as total debt net of unearned tuition fees and deferred tax liability divided by total equity. Capital for the reporting period March 31, 2010, 2009 and 2008 under review is summarized as follows:
2010 Total debt – net Total equity Debt-to-equity ratio P 500,173,521 P 3,197,540,409 0.16 : 1.00 2009 482,644,292 P 2,889,221,565 0.17 : 1.00 2008 555,219,840 2,585,259,344 0.21 : 1:00

The University is not subject to any externally-imposed capital requirements. There was no change in the University’s approach to capital management during the year.

THE FAR EASTERN UNIVERSITY, INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION MARCH 31, 2010 AND 2009

(With Comparative Figures for 2008) (Amounts in Philippine Pesos)

Notes A S S E T S CURRENT ASSETS Cash and cash equivalents Receivables - net Available-for-sale investments Held-to-maturity investments Real estate held for sale Other current assets Total Current Assets NON-CURRENT ASSETS Held-to-maturity investments Investment in an associate Investment property - net Property and equipment - net Deferred tax assets Other non-current assets Total Non-current Assets

2010

2009 (As Restated see Note 2.1)

2008 (As Restated see Note 2.1)

5 6 7 8 5, 6

P

468,148,054 839,947,375 1,240,095,151 20,000,000 122,532,288 128,520,280 2,819,243,148

P

1,172,859,362 138,151,928 1,088,109,957 20,000,000 129,216,942 90,677,164 2,639,015,353

P

1,207,342,389 113,434,183 840,687,402 129,216,942 134,567,441 2,425,248,357

9 10 11 18 2

13,251,976 371,577,177 1,207,576,778 10,841,548 16,117,892 1,619,365,371

7,055,963 364,903,545 843,473,310 9,228,791 26,151,492 1,250,813,101

32,071,040 7,105,379 363,737,216 720,820,379 11,357,319 17,816,656 1,152,907,989

TOTAL ASSETS

P

4,438,608,519

P

3,889,828,454

P

3,578,156,346

LIABILITIES AND EQUITY CURRENT LIABILITIES Accounts payable and other liabilities Deferred income Trust funds Income tax payable Notes payable Total Current Liabilities NON-CURRENT LIABILITIES Notes payable Deferred tax liabilities Total Non-current Liabilities Total Liabilities Forward

12 14 13 10

P

453,578,125 2,715,463 43,970,750 78,758,273 3,371,494 582,394,105

P

349,657,377 76,555,105 58,490,641 48,721,315 3,103,359 536,527,797

P

420,350,624 24,287,583 76,162,222 54,676,608 1,895,782 577,372,819

10 18

6,955,744 13,822,482 20,778,226 603,172,331

10,327,238 13,170,629 23,497,867 560,025,664

12,117,687 12,117,687 589,490,506

-2-

Notes EQUITY Equity attributable to owners of the parent company Capital stock Treasury stock Accumulated fair value gains (losses) Retained earnings Appropriated Unappropriated Total equity attributable to owners of the parent company

2010

2009

2008

20 20 7 20

(

984,577,900 3,733,100 ) ( 7,857,562 ( 1,675,099,017 731,601,395

984,577,900 3,733,100 ) ( 9,533,437 ) 975,099,017 1,068,447,399

704,369,900 3,733,100 ) 1,233,243 1,147,161,414 843,661,207

3,395,402,774

3,014,857,779

2,692,692,664

Non-controlling interest Total Equity

440,033,414 3,835,436,188

314,945,011 3,329,802,790

295,973,176 2,988,665,840

TOTAL LIABILITIES AND EQUITY

P

4,438,608,519

P

3,889,828,454

P

3,578,156,346

See Notes to Consolidated Financial Statements.

THE FAR EASTERN UNIVERSITY, INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED MARCH 31, 2010 AND 2009

(With Comparative Figures for 2008) (Amounts in Philippine Pesos)

Notes REVENUES Educational income Tuition fees - net Other school fees Rental Sale of real estate

2010

2009

2008 (As Restated)

14

P

10 8

1,665,790,366 35,257,665 1,701,048,031 58,772,878 8,032,714 1,767,853,623

P

1,611,808,467 50,280,810 1,662,089,277 50,437,726 1,712,527,003 1,166,169,195 546,357,808

P

1,580,683,033 33,146,510 1,613,829,543 41,289,534 1,655,119,077 1,077,236,959 577,882,118

COSTS AND OPERATING EXPENSES OPERATING PROFIT OTHER INCOME (CHARGES) Gain on sale of investment property Finance income Management fees Finance costs Share in net losses of an associate Others

15

1,208,484,789 559,368,834

10 16 6

9

( (

211,609,170 110,665,596 14,080,414 3,482,984 ) 53,987 ) 12,208,533 345,026,742

(

120,856,838 11,527,024 49,416 ) 13,597,675 145,932,121

( (

106,418,765 20,145,930 5,431,506 ) 24,732 ) 2,362,837 123,471,294

PROFIT BEFORE PREACACQUISITION INCOME AND TAX PREACQUISITION INCOME PROFIT BEFORE TAX TAX EXPENSE NET PROFIT OTHER COMPREHENSIVE INCOME Fair value gains (losses) Reclassification to profit or loss
18 1

904,395,576 904,395,576 126,699,737 777,695,839

692,289,929 3,999,262 696,289,191 86,995,739 609,293,452

701,353,412 701,353,412 87,546,984 613,806,428

7

17,390,999 17,390,999

( ( (

8,016,082 ) 2,750,598 ) 10,766,680 )

( (

1,176,093 5,514,166 ) 4,338,073 )

TOTAL COMPREHENSIVE INCOME

P

795,086,838

P

598,526,772

P

609,468,355

Net profit attributable to: Owners of the parent company Non-controlling interest

P

657,407,436 120,288,403 777,695,839

P

585,200,755 24,092,697 609,293,452

P

600,693,262 13,113,166 613,806,428

P Total comprehensive income attributable to: Owners of the parent company Non-controlling interest

P

P

P

674,798,435 120,288,403 795,086,838

P

574,434,075 24,092,697 598,526,772

P

596,355,189 13,113,166 609,468,355

P Earnings Per Share Basic and Diluted

P

P

21

P

67.02

P

69.61

P

85.74

See Notes to Consolidated Financial Statements.

THE FAR EASTERN UNIVERSITY, INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED MARCH 31, 2010 AND 2009

(With Comparative Figures for 2008) (Amounts in Philippine Pesos)

Notes Balance at April 1, 2009 Comprehensive income Net profit for the year Fair value gains for the year Total comprehensive income Transactions with owners Appropriations for the year Reversal of appropriations during the year Cash dividends Transaction with non-controlling interest Increase in non-controlling interest Balance at March 31, 2010 P

Capital Stock 984,577,900 P 984,577,900 ( P ( P

Attributable to Owners of the Parent Company Retained Earnings Accumulated Fair Treasury Stock Value Gains (Losses) Appropriated Unappropriated 3,733,100 ) ( P 3,733,100 ) P 17,390,999 17,390,999 7,857,562 P 9,533,437 ) P 1,000,000,000 ( 300,000,000 ) ( 700,000,000 ( 975,099,017 P 1,068,447,399 657,407,436 657,407,436 1,000,000,000 ) 300,000,000 294,253,440 ) 994,253,440 ) P 731,601,395 P P

Non-controlling Interest 314,945,011 120,288,403 120,288,403 4,800,000 440,033,414 P P

Total Equity 3,329,802,790 777,695,839 17,390,999 795,086,838 ( ( 294,253,440 ) 294,253,440 ) 4,800,000 3,835,436,188

7

20 20 20

(

-

1

1,675,099,017

Balance at April 1, 2008 Comprehensive income Net profit for the year Fair value losses for the year Reclassification to profit or loss for the year Total comprehensive income Transactions with owners Issuance during the year Reversal of appropriations during the year Cash dividends Stock dividends Transaction with non-controlling interest Decrease in non-controlling interest Balance at March 31, 2009

P -

704,369,900

( P -

3,733,100 )

P ( ( ( -

1,233,243

P

1,147,161,414 -

P

843,661,207 585,200,755 585,200,755 -

P

295,973,176 24,092,697 24,092,697 ( (

P

2,988,665,840 609,293,452 8,016,082 ) 2,750,598 ) 598,526,772 280,208,000 -

7

8,016,082 ) 2,750,598 ) 10,766,680 )

280,208,000 20 20 20 280,208,000 1 P 984,577,900 ( P

3,733,100 ) ( P

( ( 9,533,437 ) P

172,062,397 ) ( ( 172,062,397 ) ( 975,099,017 P

172,062,397 252,268,960 ) 280,208,000 ) 360,414,563 ) ( P

( ( ( 5,120,862 ) ( 314,945,011 P

252,268,960 ) 280,208,000 ) 252,268,960 ) 5,120,862 ) 3,329,802,790

1,068,447,399

Balance at April 1, 2007 As previously reported Prior period adjustments As restated Comprehensive income Net profit for the year Fair value gains for the year Reclassification to profit or loss for the year Total comprehensive income Transactions with owners Appropriations for the year Cash dividends

P -

704,369,900 704,369,900 -

( P ( -

3,733,100 ) 3,733,100 )

P -

5,571,316 5,571,316 1,176,093

P -

697,161,414 ( 697,161,414 450,000,000 450,000,000 ( ( (

P

1,028,997,472 20,742,967 ) 1,008,254,505 600,693,262 600,693,262 450,000,000 ) 315,286,560 ) 765,286,560 )

P -

282,860,010 ( 282,860,010 13,113,166 13,113,166 (

P

2,715,227,012 20,742,967 ) 2,694,484,045 613,806,428 1,176,093 5,514,166 ) 609,468,355 -

7

( ( 3,733,100 ) P

5,514,166 ) 4,338,073 )

20 20

P 704,369,900 ( P

( ( 295,973,176 P

315,286,560 ) 315,286,560 ) 2,988,665,840

Balance at March 31, 2008

1,233,243

P

1,147,161,414

P

843,661,207

P

See Notes to Consolidated Financial Statements.

THE FAR EASTERN UNIVERSITY, INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED MARCH 31, 2010 AND 2009

(With Comparative Figures for 2008) (Amounts in Philippine Pesos)

Notes CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments for: Gain on sale of investment property Interest income Depreciation Unrealized foreign exchange losses (gains) Share in net losses of an associate Preacquisition income Gain on disposal of property and equipment Loss on sale of investment Operating profit before working capital changes Increase in receivables Decrease in real estate held for sale Decrease (increase) in other assets Increase (decrease) in accounts payable and other liabilities Increase (decrease) in deferred income Decrease in trust funds Cash generated from operations Income taxes paid Net Cash From Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Increase in loans receivable Acquisitions of investment property Acquisitions of property and equipment Increase in available-for-sale investments - net Interest received Proceeds from sale of investment property Investment made to joint venture under registration Proceeds from disposal of property and equipment Decrease in held-to-maturity investments Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid Payment of notes payable Net Cash Used in Financing Activities Effect of Exchange Rate Changes on Cash and Cash Equivalents NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR

2010

2009

2008 (As Restated)

P
10 16 10, 11 9 1

904,395,576 211,609,170 ) 110,665,596 ) 58,378,201 3,482,984 53,987 644,035,982 108,764,370 ) 6,684,654 32,672,921 ) 175,147,214 73,839,642 ) 14,519,891 ) 596,071,026 87,960,278 ) 508,110,748

P

696,289,191 117,819,106 ) 52,944,002 3,037,732 ) 49,416 3,999,262 ) 726,424 ) 623,700,085 16,276,113 ) 31,588,975 13,086,542 ) 52,267,522 17,671,581 ) 660,522,346 86,924,696 ) 573,597,650

P

701,353,412 106,418,765 ) 46,899,496 4,747,861 24,732 2,842,069 649,448,805 3,060,882 ) 59,603,214 105,926,543 ) 51,897,736 16,722,873 25,109,062 ) 643,576,141 78,126,826 ) 565,449,315

( (

( ( ( (

(

( ( ( ( (

(

( (

( ( (

( (

6 10 11 7 10 9

( ( (

(

477,000,000 ) 431,849,189 ) 134,594,195 ) 108,937,577 100,000,000 6,250,000 ) 840,755,807 )

( ( (

15,723,242 ) 147,865,321 ) 258,189,235 ) 109,929,197 726,424 12,071,040

( ( (

96,147,971 ) 108,533,445 ) 13,871,477 ) 87,525,308 257,510

(

(

299,051,137 )

(

130,770,075 )

20 10

( ( (

365,479,906 ) 3,103,359 ) 368,583,265 )

( ( (

309,875,665 ) 2,191,607 ) 312,067,272 )

( ( (

194,554,457 ) 1,753,954 ) 196,308,411 )

(

3,482,984 )

3,037,732

(

6,607,781 )

(

704,711,308 )

(

34,483,027 )

231,763,048

1,172,859,362

1,207,342,389

975,579,341

CASH AND CASH EQUIVALENTS AT END OF YEAR

P

468,148,054

P

1,172,859,362

P

1,207,342,389

Supplemental Information on Noncash Investing and Financing Activities: 1) The University declared and issued stock dividends amounting to P280.2 million in 2009 (see Note 20). 2) In 2010, 2009 and 2008, the University declared cash dividends totaling P294.3 million, P252.3 million and P315.3 million, respectively, of which P8.5 million, P24.6 million and P119.5 million, respectively, were not paid in the year of declarations (see Notes 12 and 20). 3) In December 2009, Fern Realy Corporation (FRC) sold a parcel of land for a total consideration of P240 million. Of such amount, P140 million was unpaid as of March 31, 2010 (see Note 10). 4) In September 2008, FRC acquired a condominium unit by applying the P6.7 million advance payments made to the developer and issuing a promissory note for P13.4 million for the remaining cost of the unit (see Note 10).

See Notes to Consolidated Financial Statements.

THE FAR EASTERN UNIVERSITY, INCORPORATED AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2010 AND 2009

(With Comparative Figures for 2008) (Amounts in Philippine Pesos)

1.

CORPORATE INFORMATION The Far Eastern University, Incorporated (the University or parent company) is a domestic educational institution founded in June of 1928 and incorporated on January 5, 1933. The University was registered with the Securities and Exchange Commission (SEC) on March 7, 1940. As a private, non-sectarian institution of learning comprising the following different institutes that offer specific courses, namely, Institute of Arts and Sciences; Institute of Accounts, Business and Finance; Institute of Education; Institute of Architecture and Fine Arts; Institute of Nursing; Institute of Engineering; Institute of Law; and Institute of Graduate Studies. The University became a listed corporation in the Philippine Stock Exchange on July 11, 1986. In 2010, the University established the FEU Makati Campus in Makati City (see Note 6). Also in November 2009, FEU entered into a Joint Venture (JV) Agreement to establish a joint venture company (JVC) for culinary arts. The registration of the JVC was approved by the SEC on May 7, 2010 (see Notes 2.3 and 9). As of March 31, 2010, 2009 and 2008, the University holds interest in the following subsidiaries and associate which were all incorporated and operating in the Philippines: Company Name Subsidiaries: East Asia Computer Center, Inc. (EACCI) Far Eastern College-Silang, Inc. (FECSI) Fern Realty Corporation (FRC) TMC – FRC Sports Performance and Physical Medicine Center, Inc. (SPARC) Associate – Juliana Management Co., Inc. (JMCI) Percentage of Effective Ownership 2010 2009 2008

100% 100% 37.52% 22.51%

100% 100% 37.52% -

100% 36.73% -

49%

49%

49%

-2-

FECSI was incorporated on January 21, 2009 but has not yet started commercial operations as of March 31, 2010. FECSI and EACCI, similar to the University, were also established to operate as educational institutions. FRC, on the other hand, operates as a real estate company leasing most of its investment properties to the University and other related parties. In 2009, FEU made additional investment to FRC which resulted in 37.52% ownership interest, recognition of preacquisition income and decrease in non-controlling interest. FRC acquired 60% equity ownership interest over SPARC which is engaged in the business of organizing, owning, operating, managing and maintaining a sports facility for the rehabilitation and sports performance enhancement within the Philippines. The parent company and its subsidiaries are collectively referred to as the Group. Although the University controls less than 50% of the voting shares of stock of FRC, it has the power to govern the financial and operating policies of the said entity. Also, the University has the power to cast the majority of votes at meetings of the board of directors and elect officers of FRC. Accordingly, FRC is recognized as a subsidiary of the University. The registered office address and principal place of business of the University is located at Nicanor Reyes Sr. Street, Sampaloc, Manila. The consolidated financial statements of the Group for the year ended March 31, 2010 (including the comparatives for the years ended March 31, 2009 and 2008) were authorized for issue by the Board of Trustees (BOT) on July 6, 2010. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies that have been used in the preparation of these consolidated financial statements are summarized below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1
(a)

Basis of Preparation of Consolidated Financial Statements
Statement of Compliance with Philippine Financial Reporting Standards The consolidated financial statements of the Group have been prepared in accordance with Philippine Financial Reporting Standards (PFRS). PFRS are adopted by the Financial Reporting Standards Council (FRSC) from the pronouncements issued by the International Accounting Standards Board. The consolidated financial statements have been prepared using the measurement bases specified by PFRS for each type of asset, liability, income and expense. These consolidated financial statements have been prepared on the historical cost basis, except for the revaluation of certain financial assets. The measurement bases are more fully described in the accounting policies that follow.

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(b)

Presentation of Consolidated Financial Statements The consolidated financial statements are presented in accordance with Philippine Accounting Standard (PAS) 1 (Revised 2007), Presentation of Financial Statements. The Group presents all items of income and expenses in a single statement of comprehensive income. Two comparative periods are presented for the consolidated statement of financial position when the University applies an accounting policy retrospectively, makes a retrospective restatement of items in its financial statements, or reclassifies items in the financial statements. The reclassification of construction in progress from Property and Equipment to Investment Property account in 2010 (see Notes 10 and 11) is due to FRC’s adoption of the improvements on PAS 40, Investment Property [see Note 2.2 (a)(v)]. Such improvement requires a prospective treatment of the change in classification of construction in progress. On the other hand, the reclassification from Real Estate Held for Sale of the parcels of land exchanged with another real estate company (see Notes 8 and 11) requires retrospective treatment. Accordingly, the 2008 consolidated statement of financial position is also presented. There are other accounts in 2009 and 2008 consolidated financial statements that were reclassified to conform with the 2010 financial statement presentation.

(c)

Functional Currency These consolidated financial statements are presented in Philippine pesos, the University’s functional currency, and all values represent absolute amounts except when otherwise indicated. Items included in the consolidated financial statements of the University are measured using the currency of the primary economic environment in which the entity operates (the functional currency).

2.2 Adoption of New Interpretations, Revisions and Amendments to PFRS
(a) Effective in fiscal year 2010 that are relevant to the University In 2010, the University adopted the following new revisions and amendments to PFRS that are relevant to the University and effective for financial statements for the annual period beginning on or after January 1, 2009: PAS 1 (Revised 2007) PAS 23 (Revised 2007) PFRS 7 (Amendment) PFRS 8 Various Standards : : : : : Presentation of Financial Statements Borrowing Costs Financial Instruments: Disclosures Operating Segments 2008 Annual Improvements to PFRS

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Discussed below are the effects on the financial statements of the new and amended standards. (i) PAS 1 (Revised 2007), Presentation of Financial Statements, requires an entity to present all items of income and expense recognized in the period in a single statement of comprehensive income or in two statements: a separate statement of income and a statement of comprehensive income. Income and expense recognized in profit or loss is presented in the statement of income in the same way as the previous version of PAS 1. The statement of comprehensive income includes the profit or loss for the period and each component of income and expense recognized outside of profit or loss or the “non-owner changes in equity”, which are no longer allowed to be presented in the statements of changes in equity, classified by nature (e.g., gains or losses on available-for-sale assets or translation differences related to foreign operations). A statement showing an entity’s financial position at the beginning of the previous period is also required when the entity retrospectively applies an accounting policy or makes a retrospective restatement, or when it reclassifies items in its financial statements. The Group’s adoption of PAS 1 (Revised 2007) did not result in any material adjustments in its consolidated financial statements as the change in accounting policy only affects presentation aspects. Two comparative periods are presented for the consolidated statement of financial position since the University and FRC reclassified certain items in the consolidated financial statements (see Note 2.1 [b]). The Group has elected to present a single consolidated statement of comprehensive income (see Note 2.1). (ii) PAS 23 (Revised 2007), Borrowing Costs. Under the revised PAS 23, all borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset shall be capitalized as part of the cost of the asset. The option of immediately expensing borrowing costs that qualify for asset recognition has been removed. The adoption of this new standard had no significant effect on the 2010 consolidated financial statements, as well as for prior period and future periods, as the Group’s current accounting policy is to capitalize interest directly related to qualifying assets. (iii) PFRS 7 (Amendment), Financial Instruments Disclosures. The amendment requires additional disclosures for financial instruments that are measured at fair value in the statement of financial position. These fair value measurements are categorized into a three-level fair value hierarchy, which reflects the extent to which they are based on observable market data. A separate quantitative maturity analysis must be presented for derivative financial liabilities that shows the remaining contractual maturities, where these are essential for an understanding of the timing of cash flows. The change in accounting policy only results in additional disclosures (see Note 24.2).

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(iv) PFRS 8, Operating Segments. Under this new standard, a reportable operating segment is identified based on the information about the components of the entity that management uses to make decisions about the operating matters. In addition, segment assets, liabilities, and performance, as well as certain disclosures, are to be measured and presented based on the internal reports prepared for and reviewed by the chief decision makers. The Group identifies operating segments and reports on segments assets, liabilities, and performance based on internal management reports, hence, adoption of this new standard did not have an impact on the Group’s consolidated financial statements. (v) 2008 Annual Improvements to PFRS. The FRSC has adopted the Improvements to PFRS 2008 which became effective for the annual periods beginning on or after January 1, 2009. Among those improvements, the following are the amendments relevant to the Group: • PAS 16 (Amendment), Property, Plant and Equipment and consequential amendment to PAS 7, Statement of Cash Flows. The amendment clarifies that an entity in the course of ordinary activities, sells property, plant and equipment that was held for rental transfers the property, plant and equipment to inventories at carrying amount when they ceased to be rented and are held for sale. A consequential amendment to PAS 7 states that cash flows arising from purchase, rental and sale of those assets are classified as cash flows from operating activities. Also, the term “net selling price” has been replaced with “fair value less cost to sell” in the definition of recoverable amount so as to achieve consistency with the terminology used in PFRS 5. This amendment did not result in any significant adjustment on the 2010 consolidated financial statements. PAS 23 (Amendment), Borrowing Costs. The amendment clarifies the definition of borrowing costs to include interest expense determined using the effective interest method under PAS 39. This amendment had no material effect on the 2010 consolidated financial statements. PAS 36 (Amendment), Impairment of Assets. Where fair value less cost to sell is calculated on the basis of discounted cash flows, disclosures equivalent to those for value-in-use calculation should be made. The amendment had no significant impact on the 2010 consolidated financial statements since in 2010, fair values of non-financial assets were not calculated on the basis of discounted cash flows. PAS 40 (Amendment), Investment Property. PAS 40 is amended to include property under construction or development for future use as investment property in its definition of investment property. This results in such property being within the scope of PAS 40; previously, it was within the scope of PAS 16. Also, if an entity’s policy is to measure investment property at fair value, but during construction or development of an investment property the entity is unable to reliably measure its fair value, then the entity would be permitted to measure the investment property at cost until construction or development is complete. At such time, the entity would be able to measure the







-6-

investment property at fair value. The adoption of this amendment resulted in the reclassification from Property and Equipment to Investment Property account of certain properties under construction in the 2010 consolidated financial statements (see Notes 10 and 11). (b) Effective in fiscal year 2010 but not relevant to the University The following amendments, interpretations and improvements to published standards are mandatory for accounting periods beginning on or after January 1, 2009 but are not relevant to the Group’s consolidated financial statements: PAS 32 and PAS 1 (Amendments) : Financial Instruments: Presentation and Presentation of Financial Statements – Puttable Financial Instruments and Obligations Arising on Liquidation PFRS 1 – First Time Adoption of PFRS and PAS 27 – Consolidated and Separate Financial Statements Share-based Payment Customer Loyalty Programmes Hedges of a Net Investment in a Foreign Operation

PFRS 1 and PAS 27 (Amendments) PFRS 2 (Amendment) Philippine Interpretations IFRIC 13 IFRIC 16 (c)

: : : :

Effective subsequent to fiscal year 2010 There are new PFRS, revisions, amendments, annual improvements and interpretations to existing standards that are effective for periods subsequent to 2010. Among those pronouncements, management has initially determined the following, which the Group will apply in accordance with their transitional provisions, to be relevant to its consolidated financial statements: (i) PAS 27 (Revised), Consolidated and Separate Financial Statements (effective from July 1, 2009). The revised standard requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control and these transactions will no longer result in goodwill or gains and losses. The standard also specifies the accounting when control is lost. Any remaining interest in the equity is re-measured to fair value, and a gain or loss is recognized in profit or loss. The Group will apply this revised standard prospectively from April 1, 2010 to all transactions with non-controlling interests.

-7-

(ii) PFRS 3 (Revised), Business Combinations (effective from July 1, 2009). The revised standard continues to apply the acquisition method to business combinations, with some significant changes. For example, all payments to purchase a business are to be recorded at fair value at the acquisition date, with contingent payments classified as debt subsequently re-measured through profit or loss. There is a choice on an acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets. All acquisition related costs should be expensed. The Group will apply PFRS 3 (Revised) prospectively to all business combinations from April 1, 2010, if any. (iii) Philippine Interpretation IFRIC 17, Distribution of Non-cash Assets to Owners (effective from July 1, 2009). IFRIC 17 clarifies that a dividend payable should be recognized when the dividend is appropriately authorized and is no longer at the discretion of the entity. Also, an entity should measure the dividend payable at the fair value of the net assets to be distributed and the difference between the dividend paid and the carrying amount of the net assets distributed in profit or loss. The Group will apply the interpretation prospectively starting April 1, 2010. (iv) Philippine Interpretation IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments (effective from July 1, 2010). It addresses accounting by an entity when the terms of a financial liability are renegotiated and result in the entity issuing equity instruments to a creditor to extinguish all or part of the financial liability. These transactions are sometimes referred to as “debt for equity” exchanges or swaps, and have happened with increased regularity during the financial crisis. The interpretation requires the debtor to account for a financial liability which is extinguished by equity instruments as follows: • the issue of equity instruments to a creditor to extinguish all (or part of a financial liability) is consideration paid in accordance with PAS 39; the entity measures the equity instruments issued at fair value, unless this cannot be reliably measured; if the fair value of the equity instruments cannot be reliably measured, then the fair value of the financial liability extinguished is used; and, the difference between the carrying amount of the financial liability extinguished and the consideration paid is recognized in profit or loss.







Management has determined that the adoption of the interpretation will not have any material effect on its consolidated financial statements as it does not normally extinguish financial liabilities through equity swap.

-8-

(v) Philippine Interpretation IFRIC 15, Agreement for the Construction of Real Estate (effective from January 1, 2012). This interpretation provides guidance on how to determine whether an agreement for the construction of real estate is within the scope of PAS 11, Construction Contracts, or PAS 18, Revenue, and accordingly, when revenue from construction should be recognized. It is likely to result in PAS 18 being applied to a wider range of transactions. IFRIC 15 is not expected to have a significant effect on the Group’s operations as all real estate transactions of FRC are accounted for under PAS 18. (vi) 2009 Annual Improvements to PFRS. The FRSC has adopted the Improvements to PFRS 2009. Most of these amendments became effective for annual periods beginning on or after July 1, 2009, or January 1, 2010. Among those improvements, only the following amendments were identified to be relevant to the Group’s consolidated financial statements: • PAS 1 (Amendment), Presentation of Financial Statements (effective from January 1, 2010). The amendment clarifies the current and non-current classification of a liability that can, at the option of the counterparty, be settled by the issue of the entity’s equity instruments. The Group will apply the amendment in its 2011 consolidated financial statements but expects it to have no material impact on the consolidated financial statements. PAS 7 (Amendment), Statement of Cash Flows (effective from January 1, 2010). The amendment clarifies that only an expenditure that results in a recognized asset can be classified as a cash flow from investing activities. The amendment will not have a material impact on the consolidated financial statements since only recognized assets are classified by the Group as cash flow from investing activities. PAS 17 (Amendment), Leases (effective from January 1, 2010). The amendment clarifies that when a lease includes both land and building elements, an entity assesses the classification of each element as finance or an operating lease separately in accordance with the general guidance on lease classification set out in PAS 17. Management has initially determined that this will not have material impact on the consolidated financial statements since the Group’s lease agreements for both land and buildings are separately classified as operating leases. PAS 36 (Amendment), Impairment of Assets (effective from January 1, 2010). PAS 36 clarifies that the largest unit permitted for the purpose of allocating goodwill to cash-generating units for goodwill impairment is the operating segment level defined in PFRS 8 before aggregation. This amendment will not have material impact on the Group’s consolidated financial statements.







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(vii) PFRS 9, Financial Instruments (effective from January 1, 2013). PFRS 9 is the first part of Phase 1 of the project to replace PAS 39, Financial Instruments: Recognition and Measurement, in its entirety by the end of 2010. The main phases are (with a separate project dealing with recognition): o Phase 1: Classification and Measurement o Phase 2: Impairment Methodology o Phase 3: Hedge Accounting PFRS 9 introduces major simplifications of the classification and measurement provisions under PAS 39. These include reduction from four measurement categories into two categories, i.e. fair value and amortized cost, and from several impairment methods into one method. Management is yet to assess the impact that this amendment is likely to have on the consolidated financial statements of the Group. However, it does not expect to implement the amendments until fiscal year 2014 when all chapters of the PAS 39 replacement have been published at which time the Group expects it can comprehensively assess the impact of the revised standard.

2.3 Consolidated Financial Statements and Investment in an Associate
The consolidated financial statements comprise the financial statements of the University and its subsidiaries as of March 31, 2010, 2009 and 2008 and for each of the three years in the period ended March 31, 2010. The financial statements of subsidiaries are prepared for the same reporting year, except for EACCI whose fiscal year ends at April 30, as the University using consistent accounting policies. Amounts reported in the financial statements of subsidiaries and associate have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group. All intercompany balances and transactions with subsidiaries, including unrealized gains and losses arising from intercompany transactions, have been eliminated in full in consolidation. Intercompany losses, if any, that indicate impairment are recognized in the consolidated financial statements. The Group accounts for its investment in subsidiaries, associate and non-controlling interests as follows: (a) Investments in Subsidiaries Subsidiaries are all entities over which the University has the power to control the financial and operating policies. The University obtains and exercises control through voting rights. Subsidiaries are consolidated from the date the University obtains control until such time that such control ceases.

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Acquired subsidiaries are subject to application of the purchase method for acquisitions. This involves the revaluation at fair value of all identifiable assets and liabilities, including contingent liabilities of the subsidiary, at the acquisition date, regardless of whether or not they were recorded in the financial statements of the subsidiary prior to acquisition. On initial recognition, the assets and liabilities of the subsidiary are included in the consolidated statement of financial position at their fair values, which are also used as the bases for subsequent measurement in accordance with the Group’s accounting policies. Goodwill represents the excess of the cost of an acquisition of a subsidiary or associate over the fair value of the Group’s share of the net identifiable assets of the acquired subsidiary or associate at the date of acquisition. Currently, due to immateriality, goodwill on acquisition of subsidiaries is presented as part of Other Non-current Assets in the consolidated statement of financial position. Goodwill on acquisitions of associates is included in the carrying value of investments in associates. Goodwill is tested annually for impairment (see Note 2.13). (b) Investment in an Associate Associate is an entity over which the Group is able to exercise significant influence but which is neither a subsidiary nor interest in a joint venture. Investments in associate is initially recognized at cost and subsequently accounted for using the equity method. Acquired investment in associate is also subject to purchase accounting. However, any goodwill or fair value adjustment attributable to the share in the associate is included in the amount recognized as investment in associate. All subsequent changes to the share in the equity of the associate are recognized in the carrying amount of the Group’s investment. Changes resulting from the profit or loss generated by the associate are reported as Equity in Net Losses of an Associate in the Group’s consolidated statement of comprehensive income and therefore affect the net results of operations of the Group. In computing the Group’s share in net earnings or losses of its associate, unrealized gains or losses on transactions between the Group and its associate are eliminated to the extent of the Group’s interest in the associate. Where unrealized losses are eliminated, the underlying asset is also tested for impairment from a group perspective. (c) Transactions with Non-controlling Interests The Group applies a policy of treating transactions with non-controlling interests as transactions with parties external to the Group. Disposals of equity investments to non-controlling interests result in gains and losses for the Group that are recorded in the consolidated statement of comprehensive income. Purchases of equity shares from non-controlling interests may result in goodwill, being the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary.

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As of March 31, 2010, the registration of the University’s joint venture with PHI Culinary Arts and Food Services, Inc. is pending approval by the SEC. Accordingly, investment made to the joint venture is included in Investment in an Associate account as Advances to Joint Venture under Registration. Joint venture is an entity whose economic activities are controlled jointly by the venturers.

2.4 Financial Assets
Financial assets include cash and other financial instruments. Financial assets, other than hedging instruments, are classified into the following categories: financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments and available-for-sale financial assets. Financial assets are assigned to the different categories by management on initial recognition, depending on the purpose for which the investments were acquired. The designation of financial assets is re-evaluated at every reporting date at which date a choice of classification or accounting treatment is available, subject to compliance with specific provisions of applicable accounting standards. Regular purchase and sales of financial assets are recognized on their trade date. All financial assets that are not classified as at fair value through profit or loss are initially recognized at fair value, plus transaction costs. Financial assets carried at fair value through profit or loss are initially recognized at fair value and transaction costs are recognized directly in profit or loss in the consolidated statement of comprehensive income. Currently, the Group’s financial instruments are categorized as follows: (a) Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the Group provides money, goods or services directly to a debtor with no intention of trading the receivables. They are included in current assets when their maturity is within 12 months after the reporting period. Loans and receivables are subsequently measured at amortized cost using the effective interest method, less any impairment loss. Any change in their value is recognized in profit or loss. Impairment loss is provided when there is objective evidence that the Group will not be able to collect all amounts due to it in accordance with the original terms of the receivables. The amount of the impairment loss is determined as the difference between the assets’ carrying amount and the present value of estimated cash flows. The Group’s financial assets categorized as loans and receivables are presented as Cash and Cash Equivalents, Receivables and Other Current Assets, to the extent of the restricted cash and cash equivalents included therein, in the consolidated statement of financial position. Cash and cash equivalents are defined as cash on hand, demand deposits and short-term, highly liquid investments readily convertible to known amounts of cash and which are subject to insignificant risk of changes in value.

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(b)

Held-to-maturity Investments This includes non-derivative financial assets with fixed or determinable payments and a fixed date of maturity. Investments are classified as held-to maturity if the Group has the positive intention and ability to hold them until maturity which is presented as Held-to-maturity Investments in the non-current section of the consolidated statement of financial position, except those maturing within 12 months from the reporting period which are presented as part of current assets. Investments intended to be held for an undefined period are not included in this classification. Held-to-maturity investments are measured at amortized cost using the effective interest method. In addition, if there is objective evidence that the investment has been impaired, the financial asset is measured at the present value of estimated cash flows. Changes to the carrying amount of the investment are recognized in profit or loss.

(c)

Available-for-sale Financial Assets This include non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any of the other categories of financial assets. These are presented as Available-for-sale Investments in the non-current section of the consolidated statement of financial position unless management intends to dispose of the investment within 12 months from the reporting period. All financial assets within this category are subsequently measured at fair value, unless otherwise disclosed, with changes in value recognized in other comprehensive income, net of any effects arising from income taxes. When the asset is disposed of or is determined to be impaired the cumulative gain or loss recognized in other comprehensive income is reclassified from revaluation reserve to profit or loss and presented as a reclassification adjustment within other comprehensive income. Reversal of impairment loss is recognized in other comprehensive income, except for financial assets that are debt securities which are recognized in profit or loss only if the reversal can be objectively related to an event occurring after the impairment loss was recognized.

Impairment losses, except those pertaining to tuition and other fees receivables which are presented under Operating Expenses, recognized on financial assets are presented as part of Finance Costs in the consolidated statement of comprehensive income. For investments that are actively traded in organized financial markets, fair value is determined by reference to stock exchange-quoted market bid prices at the close of business on the reporting period. For investments where there is no quoted market price, fair value is determined by reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows (such as dividend income) of the underlying net asset base of the investment.

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Non-compounding interest, dividend income and other cash flows resulting from holding financial assets are recognized in profit or loss when earned, regardless of how the related carrying amount of financial assets is measured. All income and expense relating to financial assets recognized in profit or loss are presented in the consolidated statement of comprehensive income line item Finance Income and Finance Costs, respectively. Derecognition of financial assets occurs when the rights to receive cash flows from the financial instruments expire or are transferred and substantially all of the risks and rewards of ownership have been transferred.

2.5 Real Estate Held for Sale
Acquisition costs of raw land intended for future development by FRC, including other costs and expenses incurred to effect the transfer of title of the property as well as related property development costs are accumulated in this account. Real estate held for sale is carried at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs to complete and the estimated costs necessary to make the sale. Real estate held for sale is expected to be sold within 2 to 10 years from the time of acquisition, which is considered as the normal operating cycle of FRC with respect to its development and sale of real estate properties.

2.6 Property and Equipment
Except for land, which is stated at cost less any impairment in value, property and equipment are stated at cost less accumulated depreciation and amortization, and impairment in value, if any. The cost of an asset comprises its purchase price and directly attributable costs of bringing the asset to working condition for its intended use. Expenditures for additions, major improvements and renewals are capitalized; expenditures for repairs and maintenance are charged to expense as incurred. When assets are sold, retired or otherwise disposed of, their cost and related accumulated depreciation and impairment losses are removed from the accounts and any resulting gain or loss is reflected in income for the period. Depreciation is computed on the straight-line basis over the estimated useful lives of the assets as follows: Building and improvements Furniture and equipment Miscellaneous equipment 20 years 3-6 years 5 years

Construction in progress represents properties under construction and is stated at cost. This includes cost of construction, applicable borrowing cost and other direct costs (see Note 2.16). The account is not depreciated until such time that the assets are completed and available for use.

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An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (see Note 2.13). The residual values and estimated useful lives of property and equipment are reviewed, and adjusted if appropriate, at the end of each reporting period. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in profit or loss in the year the item is derecognized.

2.7 Investment Property
Investment property is measured initially at acquisition cost. Subsequently, investment property, except land which is carried at cost less impairment in value, if any, is carried at cost less accumulated depreciation and any impairment in value. Depreciation is computed on a straight line basis over the estimated useful lives of the assets as follows: Building and improvements Land improvements 20 to 50 years 5 years

An investment property’s carrying amount is written down immediately to its recoverable amount if the property’s carrying amount is greater than its estimated recoverable amount (see Note 2.13). Investment property is derecognized upon disposal or when permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gain or loss on the retirement or disposal of an investment property is recognized in profit or loss in the year of retirement or disposal. Transfer is made to investment property when, and only when, there is a change in use, evidenced by the end of owner-occupation, commencement of an operating lease to another party or by the end of construction or development. Transfer is made from investment property when and only when, there is a change in use, evidenced by commencement of the owner-occupation or commencement of development with a view to sell.

2.8 Financial Liabilities
The Group’s financial liabilities include accounts payable and other liabilities and notes payable, which are measured at amortized cost using the effective interest rate method. Financial liabilities are recognized when the Group becomes a party to the contractual agreements of the instrument. All interest related charges are recognized as an expense in profit or loss under the caption Finance Costs in the consolidated statement of comprehensive income.

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The liabilities are initially recognized at their fair value and subsequently measured at amortized cost less settlement payments. Financial liabilities are derecognized from the consolidated statement of financial position only when the obligations are extinguished either through discharge, cancellation or expiration.

2.9 Provisions
Provisions are recognized when present obligations will probably lead to an outflow of economic resources and they can be estimated reliably even if the timing or amount of the outflow may still be uncertain. A present obligation arises from the presence of a legal or constructive commitment that has resulted from past events. Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the end of the reporting period, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. When time value of money is material, long term-provisions are discounted to their present values using a pretax rate that reflects market assessments and the risks specific to the obligation. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. In those cases where the possible outflow of economic resource as a result of present obligations is considered improbable or remote, or the amount to be provided for cannot be measured reliably, no liability is recognized in the consolidated financial statements. Similarly, possible inflows of economic benefits to the Group that do not yet meet the recognition criteria of an asset are considered contingent assets, hence, are not recognized in the consolidated financial statements. On the other hand, any reimbursement that the Group can be virtually certain to collect from a third party with respect to the obligation is recognized as a separate asset not exceeding the amount of the related provision.

2.10 Revenue and Expense Recognition
Revenue is recognized to the extent that the revenue can be reliably measured, it is probable that the economic benefits will flow to the Group, and the costs incurred or to be incurred can be measured reliably. In addition, the following specific recognition criteria must also be met before revenue is recognized: (a) Tuition and Other School Fees – Revenue is recognized in profit or loss over the corresponding school term. Tuition received in advance and applicable to a school term after the reporting period is not recognized in profit or loss until the next reporting period (see also Note 14). (b) Sale of Real Estate – Revenue is recognized when the earning process is virtually complete and collectibility of the entire sales price is reasonably assured. (c) Management Fees – Revenue is recognized on monthly basis upon rendering of the services.

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(d) Rental – Revenue is recognized in profit or loss over the term of the lease using the straight-line method, and in certain cases, the amount determined using straight-line method or amount determined using a certain percentage of the lessee’s gross annual revenue whichever is higher. Rent received in advance is recorded as Deferred Income in the consolidated statement of financial position and transferred to Rental revenue when earned. (e) Interest – Income is recognized as the interest accrues taking into account the effective yield on the asset.

Revenue is measured by reference to the fair value of consideration received or receivable by the Group for services rendered, excluding value-added tax (VAT) and trade discounts. Cost and expenses are recognized in profit or loss upon receipt of goods, utilization of services or at the date they are incurred. All finance costs are reported in profit or loss on the accrual basis.

2.11 Leases
The Group accounts for its leases as follows: (a) Group as Lessee Leases which do not transfer to the Group substantially all the risks and benefits of ownership of the asset are classified as operating leases. Operating lease payments are recognized as expense in profit or loss in the consolidated statement of comprehensive income on a straight-line basis over the lease term. Associated costs, such as maintenance and insurance, are expensed as incurred. (b) Group as Lessor Leases which do not transfer to the lessee substantially all the risks and benefits of ownership of the asset are classified as operating leases. Lease income from operating leases is recognized in profit or loss in the consolidated statement of comprehensive income on a straight-line basis over the lease term. The Group determines whether an arrangement is, or contains a lease based on the substance of the arrangement. It makes an assessment of whether the fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset.

2.12 Foreign Currency Transactions
The accounting records of the Group are maintained in Philippine pesos. Foreign currency transactions during the year are translated into the functional currency at exchange rates which approximate those prevailing on transaction dates. Foreign currency gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the consolidated statement of comprehensive income as part of income or loss from operations.

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2.13 Impairment of Non-financial Assets
The Group’s investment in an associate, property and equipment, investment property and certain other non-current assets are subject to impairment testing. All other individual assets or cash-generating units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. For purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level. An impairment loss is recognized for the amount by which the asset or cash-generating unit’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of fair value, reflecting market conditions less costs to sell, and value in use, based on an internal evaluation of discounted cash flow. Impairment loss is charged pro-rata to the other assets in the cash-generating unit. All assets are subsequently reassessed for indications that an impairment loss previously recognized may no longer exist and the carrying amount of the asset is adjusted to the recoverable amount resulting in the reversal of the impairment loss.

2.14 Employee Benefits
(a) Post-employment Benefits

Post-employment benefits are provided to employees through a defined contribution plan. A defined contribution plan is a pension plan under which the Group pays fixed contributions into an independent entity. The Group has no legal or constructive obligations to pay further contributions after payment of the fixed contribution. The contributions recognized in respect of defined contribution plans are expensed as they fall due. Liabilities and assets may be recognized if underpayment or prepayment has occurred and are included in current liabilities or current assets as they are normally of a short term nature. (b) Termination Benefits

Termination benefits are payable when employment is terminated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognizes termination benefits when it is demonstrably committed to either: (a) terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal; or (b) providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the reporting period are discounted to present value.

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(c)

Compensated Absences

Compensated absences are recognized for the number of paid leave days (including holiday entitlement) remaining at the end of the reporting period. They are included in Accounts Payable and Other Liabilities account at the undiscounted amount that the Group expects to pay as a result of the unused entitlement.

2.15 Trust Funds
This represents restricted funds of the University that are intended for student welfare, development, loan, assistance and scholarship fund, and for other specific educational purposes. The University administers the use of these funds based on the specific purpose such funds are identified with.

2.16 Borrowing Costs
Borrowing costs are recognized as expenses in the period in which they are incurred, except to the extent that they are capitalized. Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset (i.e., an asset that takes a substantial period of time to get ready for its intended use or sale) are capitalized as part of cost of such asset. The capitalization of borrowing costs commences when expenditures for the asset and borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalization ceases when substantially all such activities are complete.

2.17 Income Taxes
Tax expense recognized in profit or loss comprises the sum of deferred tax and current tax not recognized in other comprehensive income or directly in equity, if any. Current tax assets or liabilities comprise those claims from, or obligations to, fiscal authorities relating to the current or prior reporting period, that are uncollected or unpaid at the end of the reporting period. They are calculated according to the tax rates and tax laws applicable to the fiscal periods to which they relate, based on the taxable profit for the year. All changes to current tax assets or liabilities are recognized as a component of tax expense in profit or loss. Deferred tax is provided, using the liability method on temporary differences at the end of the reporting period between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes. Under the liability method, with certain exceptions, deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences and the carryforward of unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which the deferred income tax asset can be utilized. The carrying amount of deferred tax assets is reviewed at the end of the reporting period and reduced to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.

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Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, provided such tax rates have been enacted or substantively enacted at the end of the reporting period. Most changes in deferred tax assets or liabilities are recognized as a component of tax expense in profit or loss. Only changes in deferred tax assets or liabilities that relate to items recognized in other comprehensive income or directly in equity are recognized in other comprehensive income or directly in equity.

2.18 Related Parties
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to common control or common significant influence. Related parties may be individuals or corporate entities. Transactions between related parties are based on terms similar to those offered to non-related parties.

2.19 Equity
Capital stock represents the nominal value of shares that have been issued. Treasury shares are stated at the cost of re-acquiring such shares. Accumulated fair value gains (losses) comprise gains and losses arising from the revaluation of available-for-sale investments. Retained earnings include all current and prior period results of operations as disclosed in profit or loss in the statement of comprehensive income. The appropriated portion represents the amount which is not available for distribution.

2.20 Earnings Per Share
Basic earnings per share (EPS) is determined by dividing net profit by the weighted average number of shares subscribed and issued during the year after giving retroactive effect to stock dividend declared, stock split and reverse stock split during the current year, if any. Diluted earnings per share is computed by adjusting the weighted average number of ordinary shares outstanding to assume conversion of dilutive potential shares. The University does not have dilutive potential shares outstanding that would require disclosure of diluted earnings per share in the statements of comprehensive income.

2.21 Segment Reporting
A business segment is a group of asset and operations engaged in providing products or services that are subject to risks and returns and are different from those of other business segments.

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The activities undertaken by the education segment includes income from tuition fees and other school fees from offering specific courses as discussed in Note 1. Real estate segment includes leasing of properties and acquiring and developing real properties for sale or lease. Corporate and others consists of revenues and expenses which are not classified under the two major business segments. The Group’s operating segments are organized and managed separately according to the nature of the products and services provided, with each segment representing a strategic business unit that offers different products and serve different markets. The measurement policies the Group uses for segment reporting under PFRS 8 are the same as those used in its consolidated financial statements. Share in net loss of an associate, finance income, finance costs, miscellaneous income, preacquisition income and tax expense are not included in arriving at the operating profit of the operating segment. In addition, corporate assets which are not directly attributable to the business activities of any operating segment are not allocated to a segment. Financial information on operating segments is presented in Note 4 to the consolidated financial statements. 3. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES The Group’s financial statements prepared in accordance with PFRS require management to make judgments and estimates that affect amounts reported in the consolidated financial statements and related notes. Judgments and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under circumstances. Actual results may ultimately vary from these estimates.

3.1

Critical Judgments in Applying Accounting Policies

In the process of applying the Group’s accounting policies, management has made the following judgments, apart from those involving estimation, which have the most significant effect on the amounts recognized in the consolidated financial statements: (a) Classification of Held-to-maturity Investments In classifying non-derivative financial assets with fixed or determinable payments and fixed maturity, such as bonds, as held-to-maturity investments the Group evaluates its intention and ability to hold such investments up to maturity. If the Group fails to keep these investments to maturity other than for specific circumstances as allowed under the standards, it will be required to reclassify the whole class as available-for-sale financial assets. In such a case, the investments would therefore be measured at fair value, not amortized cost. As of March 31, 2010, 2009 and 2008, there are no held-to-maturity investments disposed of before their maturity.

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(b)

Distinction Between Investment Properties and Owner-managed Properties The Group determines whether a property qualifies as investment property. In making its judgment, the Group considers whether the property generates cash flows largely independent of the other assets held by an entity. Owner-occupied properties generate cash flows that are attributable not only to the property but also to other assets used in the process of supplying services. Some properties comprise a portion that is held to earn rental or for capital appreciation and another portion that is held for use in the supply of services or for administrative purposes. If portion can be sold separately (or leased out separately under finance lease), the Group accounts for such portion separately. If the portion cannot be sold separately, the property is accounted for as investment property only if an insignificant portion is held for use in the supply of services or for administrative purposes. Judgment is applied in determining whether ancillary services are so significant that a property does not qualify as investment property. The Group considers each property separately in making its judgment.

(c)

Classification of Leases The Group has entered into various lease agreements as either a lessor or a lessee. Critical judgment was exercised by management to distinguish each lease agreement as either an operating or finance lease by looking at the transfer or retention of significant risk and rewards of ownership of the properties covered by the agreements. Currently, all of the Group’s lease agreements are determined to be operating leases. Rental expense charged to operations amounted to P7.9 million in 2010, P17.1 million in 2009 and P11.3 million in 2008 (see Note 15) while rental income earned in 2009, 2008 and 2007 are presented as Rental under Revenues in the consolidated statements of comprehensive income.

(d)

Provisions and Contingencies Judgment is exercised by management to distinguish between provisions and contingencies. Policies on recognition and disclosure of provision and disclosure of contingencies are discussed in Note 2.9 and relevant disclosures are presented in Note 22.

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3.2 Key Sources of Estimation Uncertainty
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year: (a) Allowance for Impairment of Receivables The Group maintains an allowance for impairment loss on receivables at a level considered adequate to cover probable uncollectible receivables. The level of this allowance is evaluated by management on the basis of factors that affect the collectibility of the accounts. These factors include, but are not limited to, history of the students’ payment behavior, age of receivables and other external factors affecting the education industry. The Group constantly reviews the age and status of receivables, and identifies accounts that should be provided with allowance. Analyses of net realizable value of receivables as of March 31, 2010, 2009 and 2008 are presented in Note 6. Impairment losses recognized on receivables amounted to about P22.0 million in 2010, P17.6 million in 2009 and P17.4 million in 2008 (see Note 6). (b) Valuation of Financial Assets Other than Loans and Other Receivables The Group carries certain financial assets at fair value, which requires the extensive use of accounting estimates and judgment. In cases where active market quotes are not available, fair value is determined by reference to the current market value of another instrument which is substantially the same or is calculated based on the expected cash flows of the underlying net base of the instrument. The amount of changes in fair value would differ if the Group utilized different valuation methods and assumptions. Any change in fair value of these financial assets would affect profit and loss and fund balance. Fair value gains and losses recognized on available-for-sale investments in 2010, 2009 and 2008 are presented as Accumulated Fair Value Gains (Losses) in the consolidated statements of changes in equity (see Note 7).

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(c)

Impairment of Available-for-sale Investments The determination when an investment is other-than-temporarily impaired requires significant judgment. In making this judgment, the Group evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost, and the financial health of and near-term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flows. Analyses of the carrying value of the available-for-sale investments as of March 31, 2010, 2009 and 2008 are presented in Note 7.

(d)

Useful Lives of Investment Property and Property and Equipment The Group estimates the useful lives of investment property and property and equipment based on the period over which the assets are expected to be available for use. The estimated useful lives of these assets are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the assets. Analyses of the carrying amounts of investment property and property and equipment are presented in Notes 10 and 11, respectively. Actual results, however, may vary due to changes in factors mentioned above. Based on management assessment as of March 31, 2010, 2009 and 2008, no change in the estimated useful lives of the assets is necessary.

(e)

Impairment of Non-financial Assets PFRS requires that an impairment review be performed when certain impairment indicators are present. The Group’s policy on estimating the impairment of non-financial assets is discussed in detail in Note 2.13. Though management believes that the assumptions used in the estimation of fair values reflected in the financial statements are appropriate and reasonable, significant changes in these assumptions may materially affect the assessment of recoverable values and any resulting impairment loss could have a material adverse effect on the results of operations. The Group did not recognize any impairment loss on property and equipment, investment property and investment in an associate in 2010, 2009 and 2008.

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4.

SEGMENT INFORMATION Management currently identifies the Group’s three operating segments and is consistent with accounting policies described in Note 2.21. These operating segments are monitored and strategic decisions are made on the basis of adjusted segment operating results. The following tables present revenue and profit information regarding business segments for the years ended March 31, 2010, 2009 and 2008 and certain asset and liability information regarding segments as at March 31, 2010, 2009 and 2008 (amounts in thousands):
Education 2010 Segment revenues Cost of real estate sales Operating expenses Segment operating profit Real Estate Corporate and Others Total

P ( P

1,701,048 P ( 1,163,918 ) ( 537,130 P

278,415 P 6,685 ) 33,831 ) ( 237,899 P

14,080 ( 4,051 ) ( 10,029

P

1,993,543 6,685 ) 1,201,800 ) 785,058

P

Total Segment Assets Total Segment Liabilities 2009 Segment revenues Operating expenses Segment operating profit

P P

3,345,076 444,671

P P

1,026,207 143,987

P P

30,879 692

P P

4,402,162 589,350

P ( P

1,662,089 P 1,142,352 ) ( 519,737 P

50,438 P 23,421 ) ( 27,017 P

11,527 P 397 ) ( 11,130 P

1,724,054 1,166,170 ) 557,884

Total Segment Assets Total Segment Liabilities 2008 Segment revenues Operating expenses Segment operating profit

P P

3,177,865 503,981

P P

663,308 42,371,

P P

20,017 503

P P

3,861,190 546,855

P ( P

1,613,830 P 1,054,473 ) ( 559,357 P

41,290 P 22,621 ) ( 18,669 P

20,146 P 143 ) ( 20,003 P

1,675,266 1,077,237 ) 598,029

Total Segment Assets Total Segment Liabilities

P P

2,955,546 523,823

P P

584,315 53,425

P P

7,480 125

P P

3,547,341 577,373

Segment assets include all operating assets used by a segment and consist principally of operating cash, receivables, available-for-sale investments, held-to-maturity investments, real estate held for sale, investment property and property and equipment. Segment liabilities include all operating liabilities as presented in the consolidated statements of financial position except for deferred tax liabilities. Segment assets do not include deferred taxes, investment in an associate and other assets which are considered corporate assets and are not allocated to any segment’s assets.

- 25 -

The totals presented for the Group’s operating segments reconcile to the key financial figures presented in Group’s financial statements as follows (amounts in thousands):
2010 Segment operating profit Finance income Miscellaneous income Finance costs Share in net loss of an associate Preacquisition income Tax expense Group Net Profit P 785,058 P 110,666 12,209 3,483 ) 54 ) ( 126,700 ) ( 777,696 P 2009 557,884 120,857 13,598 49 ) 3,999 86,996 ) 609,293 P 2008 598,029 106,419 2,362 5,432 ) 25 ) ( P 87,547 ) 613,806

( ( ( P

( (

Segment assets Investment in an associate Goodwill Deferred tax assets Total Assets Segment liabilities Deferred tax liabilities Total Liabilities

P

4,402,162 13,252 12,353 10,842 4,438,609 589,350 13,822 603,172

P

3,861,190 7,056 12,353 9,229 3,889,828 546,855 13,171 560,026

P

3,547,341 7,105 12,353 11,357 3,578,156 577,373 12,118 589,491

P P

P P

P P

P

P

P

The segment revenues equal the Group revenues for the reporting periods presented, hence, a reconciliation is no longer presented.

5.

CASH AND CASH EQUIVALENTS Cash and cash equivalents include the following components as of March 31:
2010 Cash on hand and in banks Short-term placements P P 2009 2008

114,333,595 P 157,747,517 P 197,126,244 353,814,459 1,015,111,845 1,010,216,145 468,148,054 P 1,172,859,362 P 1,207,342,389

Cash in banks generally earn interest at rates based on daily bank deposit rates. Short-term placements are made for varying periods of up to three months depending on the immediate cash requirements of the Group. These placements earn effective annual interest ranging from 2.5% to 4.5% in 2010, 3.75% to 7.00% in 2009 and 3.75% to 5.25% in 2008 for peso placements and 1.75% to 4.00% in 2009 and 2.25% to 2.50% in 2008 for dollar placements. There are no dollar placements in 2010. Interest income earned from cash and cash equivalents were presented as part of Finance Income in the consolidated statements of comprehensive income (see Note 16).

- 26 -

Certain portion of cash and cash equivalents are set aside to cover for trust funds of the University (see Note 13). The amount of cash and cash equivalents set aside to cover trust funds were P44.0 million, P58.5 million and P76.2 million as of March 31, 2010, 2009 and 2008, respectively. Considering the restriction on such amounts of cash and cash equivalents, the University retrospectively reclassified them to Other Current Assets in 2010. 6. RECEIVABLES This account is composed of the following:
Notes Tuition and other school fees Allowance for impairment Loans receivable Accounts receivable Receivable from: FEU Educational Foundation, Inc. (FEFI) East Asia Educational Foundation, Inc. (EAEF) Accrued interest Advances to employees Rental receivable Others 10.1 P ( 2010 104,475,283 P 15,727,708) ( 88,747,575 477,000,000 140,000,000 2009 64,246,194 P 14,146,263) ( 50,099,931 2008 (As Restated) 54,371,503 11,872,333) 42,499,170 -

36,671,312 22,415,485 10,200,097 9,279,805 7,022,965 48,610,136 P 839,947,375 P

38,040,770 18,165,787 8,472,078 11,479,722 8,202,478 3,691,162 138,151,928 P

28,843,710 14,116,055 14,821,789 9,145,859 829,938 3,177,662 113,434,183

5, 7

A reconciliation of the allowance for impairment loss on receivables at the beginning and end of 2010, 2009 and 2008 is shown below.
Note Balance at beginning of year Impairment losses during the year Receivables written off during the year P 15 ( P 2010 14,146,263 P 22,035,435 20,453,990) ( 15,727,708 P 2009 11,872,333 P 17,581,234 15,307,304) ( 14,146,263 P 2008 11,436,501 17,450,897 17,015,065) 11,872,333

- 27 -

All of the Group’s receivables have been reviewed for indicators of impairment. Certain tuition and other fees receivables were found to be impaired and allowance has been recorded accordingly. The allowance for impairment loss on receivables as of March 31, 2010, 2009 and 2008 relates only to receivables from students which have been outstanding for more than one semester and specifically identified to be impaired. Impairment loss recognized on receivables is presented as part of General Operating Expenses in the consolidated statements of comprehensive income (see Note 15). No allowance for impairment loss on all other receivables was provided as of March 31, 2010, 2009 and 2008 since management believes that those are collectible in full. Loans receivable represents promissory notes issued to certain rental and leasing corporation as part of the University’s trust fund arrangement with a certain local bank. Interest income earned from these loans is presented as part of Finance Income in the 2010 consolidated statement of comprehensive income (see Note 16). Other receivables in 2010 includes a P43.7 million option money for the acquisition of shares of stock of Crans Montana Holdings Corporation (Crans Montana) (see Note 22.4). Such option money will be refunded to the University upon acquisition of Crans Montana or failure by FEU to pursue such acquisition. Pending consummation of the Crans Montana acquisition, the University temporarily leased the properties (land and building located in Makati City) owned by Crans Montana and made improvements thereon, including construction of a new school building, for the FEU Makati Campus (see Notes 1 and 22.2). In relation to such improvements, the University has made advances to contractors amounting to P52.0 million as of March 31, 2010. Such advances are presented as part of Other Current Assets in the 2010 consolidated statement of financial position. The University provides management services to EAEF which agreed to pay management fee computed at a certain percentage of their gross revenue subject to certain conditions. Management fees earned amounted to P14.1 million in 2010, P11.5 million in 2009 and P20.1 million in 2008 which are presented as Management Fees in the consolidated statements of comprehensive income. Receivable from EAEF represents the outstanding receivables arising from management services provided by the University to EAEF and those arising from the lease of school building to EAEF (see Note 10). The University provides cash advances to FEFI for the latter’s operating requirements such as faculty payroll, which FEFI regularly pays to the University. The outstanding receivables arising from this transaction are presented above as Receivable from FEFI.

- 28 -

7.

AVAILABLE-FOR-SALE (AFS) INVESTMENTS This category of financial assets consists of the following:
2010 Debt securities: Government Corporate Equity securities P 2009 2008 706,326,539 109,258,504 815,585,043 25,102,359 840,687,402

678,179,527 P 792,260,802 P 276,110,403 539,986,625 1,218,166,152 1,068,371,205 19,738,752 21,928,999

P 1,240,095,151 P 1,088,109,957 P

Interest income recognized in 2010, 2009 and 2008 are presented as part of Finance Income in the consolidated statements of comprehensive income (see Note 16). Certain AFS investments reached their maturity in 2009 and 2008 and were no longer reinvested; thus reclassified to Cash and Cash Equivalents resulting in the reclassification to profit or loss of cumulative gains of P2.8 million in 2009 and P5.5 million in 2008 which were previously recognized in equity. Analyses of the movements in the carrying amounts of the Group’s investments held by trustee banks are presented below.
Note Balance at beginning of year Additions Withdrawals Investment income – net Fair value gains (losses) Balance at end of year 2010 P 1,088,109,957 P 486,717,814 ( 414,986,880) ( 62,863,261 17,390,999 ( 2009 840,687,402 P 678,027,477 467,769,330) ( 45,180,490 8,016,082) 2008 816,893,531 287,469,902 302,795,789) 37,943,665 1,176,093 840,687,402

16

P 1,240,095,151 P 1,088,109,957 P

8.

REAL ESTATE HELD FOR SALE Real estate held for sale as of March 31, 2010, 2009 and 2008 represents certain lots at the following locations:
2009 (As Restated – see Note 2.1) 2008 (As Restated – see Note 2.1) 103,751,973 25,464,969 129,216,942

2010 Silang, Cavite Ferndale Homes, Quezon City P P

103,751,973 P 18,780,315 122,532,288 P

103,751,973 P 25,464,969 129,216,942 P

Total sale generated and cost of real property sold amounted to P8.0 million and P6.7 million, respectively for 2010. The sale is reported as Sale of Real Estate in the 2010 consolidated statement of comprehensive income while the related cost is presented as Cost of Real Estate Sold in the 2010 consolidated statement of comprehensive income (see Note 15).

- 29 -

In December 2007, FRC entered into a memorandum of agreement with another real estate company for the exchange of their respective parcels of land which are both located in a subdivision in Silang, Cavite. However, the Group was not able to reclassify the property to Property and Equipment at the time of the exchange when it has already made certain that the property will be leased to FECSI. Accordingly, the Group made a retrospective reclassification of the property in 2010. The cost of the Group’s property, which was reclassified to Property and Equipment, was P59.8 million (see Note 11). No gain or loss was recognized on the exchange since management determined that it has no commercial substance in accordance with the conditions set forth in PAS 40, Investment Property. The exchange has been considered to have no commercial substance since the fair values of the properties exchanged did not significantly differ as these are both located in the same area and these did not change as a result of the exchange. Management has assessed that the net realizable value of the assets is higher than their cost, hence, no impairment loss was recognized in 2010, 2009 and 2008. 9. INVESTMENT IN AN ASSOCIATE This account consists of the following as of March 31:
2010 Investment in an associate Acquisition cost Accumulated equity in net losses: Balance at beginning of year Share in net losses Balance at end of year Advances to joint venture under registration P P ( ( ( 7,878,121 P 822,158) ( 53,987) ( 876,145) ( 7,001,976 6,250,000 13,251,976 P 2009 7,878,121 P 772,742) ( 49,416) ( 822,158) ( 7,055,963 7,055,963 P 2008 7,878,121 748,010) 24,732) 772,742) 7,105,379 7,105,379

JMCI’s summary of the financial information as of December 31, 2010, 2009 and 2008 are as follows:
2010 Total assets Total liabilities Total equity Net loss P 14,913,564 P 623,820 14,289,744 110,178 2009 14,824,762 P 424,840 14,399,922 100,849 2008 14,826,831 326,060 14,500,771 50,474

- 30 -

In November 2009, the University entered into a JV Agreement with a co-venturer to establish and operate a culinary skills training center which shall provide courses of study in the culinary arts. The University and co-venturer invested P6.3 million each to ICF-CCE, Inc., the JVC. Pending approval by the SEC of the JVC’s registration (see Notes 1 and 2.3), the amount invested by the University is presented as Advances to Joint Venture under Registration in the Investment in an Associate account in the 2010 consolidated statement of financial position. The registration with the SEC was approved after the reporting date (see Note 1). 10. INVESTMENT PROPERTY The gross carrying amounts and accumulated depreciation of investment property at the beginning and end of 2010, 2009 and 2008 are shown below.
Building Land and Improvements Improvements P ( P P ( P P ( P P ( 2,941,664 2,419,214) ( 522,450 2,941,664 2,012,361) ( 929,303 2,722,557 1,467,850) ( 1,254,707 2,117,490 1,020,911) ( P 306,970,521 95,813,556 ) P 211,156,965 P 306,970,521 81,673,204 ) P 225,297,317 P 304,160,428 67,660,802 ) P 236,499,626 P 242,559,966 54,883,329 ) P P P P P P P Construction in Progress P

Land March 31, 2010 Cost Accumulated depreciation Net carrying amount March 31, 2009 Cost Accumulated depreciation Net carrying amount March 31, 2008 Cost Accumulated depreciation Net carrying amount April 1, 2007 Cost Accumulated depreciation Net carrying amount P 135,983,037 P 135,983,037 P 138,676,925 P 138,676,925 P 125,982,883 P 125,982,883 P 91,893,657 P

Total

23,914,725 P 469,809,947 23,914,725 ( ( ( ( 98,232,770 ) P 371,577,177 P 448,589,110 83,685,565 ) P 364,903,545 P 432,865,868 69,128,652 ) P 363,737,216 P 336,571,113 55,904,240 ) P 280,666,873

91,893,657 P

1,096,579 P 187,676,637

- 31 -

A reconciliation of the carrying amounts at the beginning and end of 2010, 2009 and 2008, of investment property is shown below.
Building and Construction Land Building in Improvements Improvements Progress

Land

Total

Balance at April 1, 2009, net of accumulated depreciation P 138,676,925 P Disposal ( 2,693,888) Reclassification Depreciation charges ( for the year Balance at March 31, 2010, net of accumulated depreciation

929,303 406,853) (

P 225,297,317 14,140,352 )

P

P 364,903,545 ( 2,693,888 ) 23,914,725 23,914,725 ( 14,547,205 )

P 135,983,037

P

522,450

P 211,156,965

P

23,914,725

P 371,577,177

Balance at April 1, 2008, net of accumulated depreciation P 125,982,883 P Additions 12,694,042 Depreciation charges for the year ( Balance at March 31, 2009, net of accumulated depreciation

1,254,707 219,107 544,511) (

P 236,499,626 2,810,093 14,012,402 )

P

(

P 363,737,216 15,723,242 14,556,913 )

P 138,676,925

P

929,303

P 225,297,317

P

-

P 364,903,545

Balance at April 1, 2007, net of accumulated depreciation P Additions Reclassification Depreciation charges for the year Balance at March 31, 2008, net of accumulated depreciation

91,893,657 34,089,226 (

P

1,096,579 458,283 146,784 446,939) (

P 187,676,637 61,600,462 12,777,473 )

P

(

P 280,666,873 96,147,971 146,784 13,224,412 )

P 125,982,883

P

1,254,707

P 236,499,626

P

-

P 363,737,216

The total rental income earned from the investment property amounted to P58.8 million in 2010, P50.4 million in 2009, P41.3 million in 2008 and presented as Rentals under Revenues in the consolidated statements of comprehensive income (see also Note 22.3). The direct operating expenses which include depreciation expense incurred by the University relating to investment property is presented as part of Depreciation and Amortization under General Operating Expenses in the consolidated statements of comprehensive income (see Note 15). The fair value of the investment property as of March 31, 2010 is P2.3 billion, and P2.5 billion as of March 31, 2009 and 2008 which was determined based on the most recent valuation performed by independent appraisers immediately after the end of the reporting periods except that portion pertaining to FRC’s investment property amounting to P2.1 billion which was based on valuation in prior year. Interest expense capitalized as part of the construction in progress amounted to P0.7 million in 2010, P0.9 million in 2009 and nil in 2008.

- 32 -

10.1 Sale of Parcel of Land
In December 2009, FRC sold its parcels of land located in Quezon City, for a total consideration of P240.0 million which is inclusive of output VAT. The carrying value of the property as of the date of sale amounted to P2.3 million. Total gain recognized from this transaction amounted to P211.6 million presented as Gain on Sale of Investment Property in the 2010 consolidated statement of comprehensive income. Receivable arising from this transaction amounting to P140.0 million as of March 31, 2010 is presented as Accounts Receivable under Receivables in the 2010 consolidated statement of financial position (see Note 6).

10.2 Reclassifications
In 2010, FRC reclassified from Property and Equipment, the condominium unit that was acquired in prior year and is still undergoing minor construction and renovation works as of March 31, 2010. The condominium unit was acquired in prior year as replacement for the original unit acquired by FRC. The original contract was cancelled and replaced in May 2008 prior to its maturity with a new contract for a unit that is significantly bigger than the original. The new contract required a 25% downpayment and monthly installment payments of P341,975, which is covered by a promissory note issued in favor of the seller; payable starting September 2008 until January 2013. FRC has already made a total of P8.5 million payments, net of administrative fees to the seller, in the cancelled contract of which P6.7 million has been applied as downpayment for the new contract. The remaining amount which pertains to input taxes is presented as part of Other Current Assets in the consolidated statements of financial position. The current portion of the liability arising from this transaction was P3.4 million, P3.1 million, and P1.9 million as of March 31, 2010, 2009 and 2008, respectively, while the non-current portion was P7.0 million, P10.3 million and nil as of March 31, 2010 and 2009 and 2008, respectively. These liabilities are presented in the consolidated statements of financial position as Notes Payable. Interest expense capitalized as part of construction in progress pertaining to the condominium unit amounted to P1.0 million in 2010 and P0.9 million in 2009. 11. PROPERTY AND EQUIPMENT The gross carrying amounts and accumulated depreciation at the beginning and end of 2010, 2009 and 2008 are shown below.
Land March 31, 2010 Cost Accumulated depreciation Net carrying value P 257,219,324 P 257,219,324 257,219,324 257,219,324 ( P ( P P Building and Improvements P 782,503,943 152,625,123 ) ( 629,878,820 654,637,049 120,539,142 ) ( 534,097,907 P P P Furniture and Equipment P 127,256,408 98,498,881 ) ( 28,757,527 115,455,954 88,841,105 ) ( 26,614,849 P P P Miscellaneous Equipment P 25,137,266 12,520,278 ) 12,616,988 13,515,759 11,889,254 ) 1,626,505 P P P Construction in Progress P 279,104,119 279,104,119 23,914,725 23,914,725 ( P ( Total P 1,471,221,060 263,644,282 ) P 1,207,576,778 P 1,064,742,811 221,269,501 ) 843,473,310

March 31, 2009 – As Restated Cost P Accumulated depreciation Net carrying value P

- 33 Building and Improvements P ( P P ( P 517,435,345 93,944,046 ) ( 423,491,299 487,866,479 70,575,246 ) ( 417,291,233 P P P Furniture and Equipment P 107,580,928 77,305,432 ) ( 30,275,496 89,420,099 67,114,543 ) ( 22,305,556 P P P Miscellaneous Equipment P 12,409,148 11,659,251 ) 749,897 12,090,999 11,543,857 ) 547,142 P P P Construction in Progress P 9,084,363 9,084,363 8,434,363 8,434,363 ( P ( P P P

Land March 31, 2008 – As Restated Cost P Accumulated depreciation Net carrying value April 1, 2007 Cost Accumulated depreciation Net carrying value P P 257,219,324 257,219,324 197,383,724 P 197,383,724

Total 903,729,108 182,908,729 ) 720,820,379 795,195,664 149,233,646 ) 645,962,018

A reconciliation of the carrying amounts at the beginning and end of 2010, 2009 and 2008 of property and equipment is shown below.
Land Balance at April 1, 2009, net of accumulated depreciation Additions Reclassifications Depreciation charges for the year Balance at March 31, 2010, net of accumulated depreciation Balance at April 1, 2008, net of accumulated depreciation Additions Derecognition Depreciation charges for the year Balance at March 31, 2009, net of accumulated depreciation Balance at April 1, 2007, net of accumulated depreciation Additions Depreciation charges for the year Balance at March 31, 2008, net of accumulated depreciation Building and Improvements Furniture and Equipment Miscellaneous Equipment Construction in Progress Total

P

257,219,324 (

P

534,097,907 127,803,892 32,022,979 ) (

P

26,614,849 13,413,153 11,270,475 ) (

P

1,626,505 P 11,528,025 ( 537,542 )

23,914,725 P 279,104,119 23,914,725) ( (

843,473,310 431,849,189 23,914,725) 43,830,996)

P

257,219,324

P

629,878,820

P

28,757,527

P

12,616,988

P

279,104,119

P 1,207,576,778

P

257,219,324 (

P

423,491,299 P 137,201,704 ( 26,595,096 ) (

30,275,496 P 7,906,080 4,737 ) 11,561,990 ) (

749,897 P 1,106,611 ( 230,003 )

9,084,363 P 23,914,725 9,084,363 ) ( (

720,820,379 170,129,120 9,089,100 ) 38,387,089)

P

257,219,324

P

534,097,907

P

26,614,849

P

1,626,505

P

23,914,725

P

843,473,310

P

197,383,724 59,835,600 (

P

417,291,233 29,568,866 23,368,800 ) (

P

22,305,556 18,160,829 10,190,889 ) (

P

547,142 318,150 115,395 )

P

8,434,363 650,000 (

P

645,962,018 108,533,445 33,675,084)

P

257,219,324

P

423,491,299

P

30,275,496

P

749,897

P

9,084,363

P

720,820,379

As discussed in Note 8, FRC exchanged certain parcels of land with another real estate company in 2007. The exchange was recorded at the carrying value of the property given up amounting to P59.8 million by FRC because management determined that such exchange has no commercial substance.

- 34 -

12.

ACCOUNTS PAYABLE AND OTHER LIABILITIES This account consists of:
Notes Accounts payable Dividends payable 20.2 Funds payable Payable to contractor Accrued expense Withholding and other taxes payable Amounts due to students Payable to FEU retirement plan 17 Accrued salaries and employee benefits Retention payable Deposits payable Other current liabilities P 2010 48,363,855 P 71,226,466 55,705,967 50,717,331 45,340,965 38,360,652 37,573,353 32,313,215 29,614,032 26,691,627 6,133,212 11,537,450 P 453,578,125 P 2009 41,670,926 P 58,499,156 38,743,170 33,569,525 36,513,664 33,746,306 36,901,623 54,229,149 9,831,557 5,952,301 349,657,377 P 2008 (As Restated) 35,781,894 140,701,054 27,887,732 24,573,479 43,934,253 46,555,113 41,886,105 30,048,030 23,550,545 5,432,419 420,350,624

Accrued expenses include the Group’s accrual for utilities, rentals and directors’ bonuses. Funds payable are amounts due to third parties for cooperative members’ fees; school uniforms of students; and computer loans of employees. Amounts due to students represent excess payment of miscellaneous fees from students. 13. TRUST FUNDS This account consists of the following as of March 31:
2010 Visual aid development fund FEU Central Student Organization: Student loan fund Student scholarship fund Student welfare and development fund Student assistance fund Others P 14,635,307 P 13,384,402 2,290,745 13,141,458 518,838 P 43,970,750 P 2009 13,224,923 P 12,777,129 3,902,308 26,202,141 2,384,140 58,490,641 P 2008 13,670,640 10,502,842 3,919,602 40,693,748 2,653,039 4,722,351 76,162,222

- 35 -

These trust funds represent collections to defray expenses related to activities for specific educational purposes. As discussed in Note 5, the amounts of cash and cash equivalents corresponding to the outstanding balances of these funds presented as part of Other Current Assets in the consolidated statements of financial position are set aside and restricted for such purposes. 14. TUITION AND OTHER SCHOOL FEES Details of this account presented in the consolidated statements of comprehensive income are as follows:
2010 Tuition Less discounts: Scholarship Cash Family 2009 2008

P 1,746,362,097 P 1,694,493,469 P 1,655,826,499 61,000,082 10,294,191 9,277,458 80,571,731 1,665,790,366 63,723,848 10,214,508 8,746,646 82,685,002 1,611,808,467 29,904,890 8,775,916 9,030,205 1,745,791 824,008 50,280,810 57,508,745 10,038,965 7,595,756 75,143,466 1,580,683,033 13,500,341 8,655,013 7,919,956 2,315,965 755,235 33,146,510

Other school fees: Entrance fees Identification cards Transcript fees Diplomas Miscellaneous

12,879,474 9,903,306 8,794,229 2,910,208 770,448 35,257,665

P 1,701,048,031 P 1,662,089,277 P 1,613,829,543

Towards the end of the fiscal year, the University collected tuition fees from students for summer classes which start after the reporting period. Such collections are excluded from tuition fees earned for the year and presented as part of Deferred Income in the 2009 and 2008 consolidated statements of financial position and recognized as revenue in the following year. There are no unearned tuition fees in 2010.

- 36 -

15.

COSTS AND OPERATING EXPENSES Costs and Operating expenses consists of:
Notes Instructional and Academic Salaries and allowances Employees benefits Related learning experience Affiliation Others Real Estate Sales Cost of real estate sold Administrative Salaries and allowances Employees benefits Directors’ bonus Rental Others Maintenance and University Operations Utilities Salaries and allowances Repairs and maintenance Janitorial services Employee benefits Property insurance 19 17 P 2010 519,662,398 P 165,028,563 31,738,871 17,153,509 19,128,326 752,711,667 8 19 17 6,684,654 98,577,604 44,727,498 12,010,000 7,914,634 20,833,245 184,062,981 2009 527,192,891 P 164,350,335 21,641,432 9,960,332 21,503,871 744,648,861 87,788,025 39,266,335 11,750,000 17,136,041 17,243,886 173,184,287 2008 495,587,597 150,395,234 19,474,376 11,418,036 17,370,504 694,245,747 80,599,603 36,165,361 10,500,000 11,345,139 16,772,935 155,383,038

17

67,704,864 21,722,461 18,579,781 11,915,987 11,198,934 1,485,816 132,607,843 58,378,201 22,035,435 15,782,208 14,068,475 9,017,636 5,226,801 2,812,457 2,091,949 3,004,482 132,417,644

68,074,983 23,490,070 6,458,042 12,808,640 11,296,291 1,160,749 123,288,775 52,944,002 17,581,234 25,834,071 6,306,848 6,615,235 5,333,533 6,176,320 1,358,909 2,897,120 125,047,272

61,619,734 24,196,975 8,071,553 11,707,163 11,772,106 564,594 117,932,125 46,899,496 17,450,897 18,314,315 5,416,097 8,033,477 4,322,713 2,184,264 1,471,938 5,582,852 109,676,049

General Depreciation 10, 11 Impairment losses on receivables 6 Security services Professional fees Publicity and promotions Taxes and licenses Maintenance of art works Donation and charitable contributions Others Total Costs and Operating Expenses

P 1,208,484,789 P 1,166,169,195 P 1,077,236,959

- 37 -

16.

FINANCE INCOME This account consists of interest income from:
Notes AFS investments Cash and cash equivalents Receivables HTM Foreign exchange gain – net 7 5 6 P 2010 62,863,261 P 43,959,919 2,192,416 1,650,000 P 110,665,596 P 2009 45,180,490 P 69,502,580 1,463,473 1,672,563 3,037,732 120,856,838 P 2008 37,943,665 65,795,215 2,679,885 106,418,765

17.

EMPLOYEES’ HEALTH, WELFARE AND RETIREMENT FUND The Group maintains a funded and contributory retirement plan, which is a defined contribution type of retirement plan since 1967, covering regular teaching and non-teaching personnel members. The retirement fund is under the administration of an organization, the FEU Health, Welfare and Retirement Fund, through its Retirement Board. Contributions to this fund are in accordance with the defined contribution established by the Retirement Board which is the sum of the employees’ and the Group’s contributions. Employees’ contribution is 5% of basic salary while the Group’s contribution is equivalent to 20% of the employees’ basic salary. Retirement expense recognized in the University’s consolidated statement of comprehensive income amounted to P86.6 million in 2010, P85.9 million in 2009 and P63.4 million in 2008 (see Note 15). The Fund’s statements of financial position as of December 31, 2009, 2008 and 2007 showed the following:
2009 Assets Money market placements Receivables Cash in banks Others Liabilities Net Assets P 715,250,000 P 52,926,997 9,997,093 136,263 778,310,353 55,569,843) ( 722,740,510 P 2008 643,050,000 P 38,547,269 10,784,913 185,654 692,567,836 50,395,960) ( 642,171,876 P 2007 555,853,116 40,186,159 4,628,136 208,505 600,875,916 49,871,692) 551,004,224

( P

- 38 -

18.

INCOME TAXES The components of the tax expense presented in profit or loss are as follows:
2010 Current tax expense: Special rate at 10% Regular corporate income tax (RCIT) rate at 30% in 2010, 35% and 30% in 2009 and 35% in 2008 Final tax at 20% and 7.5% P 56,990,568 P 2009 51,743,268 P 2008 59,615,310

48,978,646 21,691,427 127,660,641

10,812,275 21,258,726 83,814,269

10,675,348 19,135,614 89,426,272

Deferred tax expense (income): Deferred tax benefit arising from origination and reversal of temporary differences ( Effect of change in RCIT rate ( P

960,904) 960,904) 126,699,737 P (

4,788,752 ( 1,607,282) 3,181,470 ( 86,995,739 P

1,879,288) 1,879,288) 87,546,984

A reconciliation of tax on pretax income computed at the applicable statutory rates to tax expense reported in profit or loss is as follows:
2010 Tax on pretax income at 10% Adjustments for income subjected to: RCIT rate Final tax Excess of OSD over itemized deductions Effect of change in RCIT rate Others Tax expense P 90,439,558 P 48,303,738 10,257,745 ( 24,161,010) ( ( 1,859,706 126,699,737 P 2009 69,628,919 P 10,843,328 8,858,395 3,289,439) 1,607,282) 2,561,818 86,995,739 P 2008 70,135,341 6,208,259 9,711,972 1,491,412 87,546,984

P

- 39 -

The deferred tax assets and liabilities relate to the following as of March 31:
Consolidated Statements of Financial Position 2009 2008 2010 Deferred tax assets: Accrued rent expense Unearned rental income Allowance for impairment on receivables Unrealized foreign currency loss Unearned income Accrued donation Net-operating loss carryover Minimum corporate income tax (MCIT) Deferred tax assets 2010 Profit or Loss 2009 2008

P

5,168,876 3,751,602 1,572,771 348,299 -

P 4,591,002 3,223,163 1,414,626 P 9,228,791 ( P 12,866,856 ) ( 303,773 ) (P 13,170,629 )

P

3,543,085 2,601,432 1,187,233 474,786 1,685,492 1,700,000 163,176 2,115

(P ( ( (

577,874) ( P 1,047,917 ) 528,439) ( 621,731 ) 158,145) ( 348,299) 227,393 ) 474,786 1,685,492 1,700,000 163,176 2,115

( P 1,131,710 ) ( 2,601,432 ) ( ( ( ( 43,583 ) 104,391 ) 1,685,492 ) 50,143 ) -

P

10,841,548 13,822,482 ) 13,822,482 )

P (P (P

11,357,319 12,117,687 ) 12,117,687 ) (P 960,904) P 3,181,470 ( P 1,879,288 ) 955,626 303,773) 749,169 303,773 3,737,463 -

Deferred tax liabilities: Accrued rent income (P Unrealized foreign currency gains Deferred tax liabilities Deferred tax expense (income) (P

(

The University availed of the Tax Incentives Provisions of Republic Act (R.A.) No. 8525, Adopt-a-School Act of 1998. Total benefit from the availment of this tax incentives provided under the R.A. is the sum of the amount of contribution/ donation that were actually, directly and exclusively incurred for the Adopt-a-School Program, with limitations, conditions and rules set forth in Section 34 (H) of the Tax Code and fifty percent (50%) of the amount of such contribution/donation. FRC is subject to MCIT which is computed at 2% of gross income, as defined under the tax regulations. No MCIT was recognized in 2010, 2009 and 2008 as RCIT was higher than MCIT in those years. On July 6, 2008, R.A. No. 9504 became effective giving corporate taxpayers an option to claim itemized deduction or optional standard deduction (OSD) equivalent to 40% of gross income which is relevant only to FRC. Once the option is made, it shall be irrevocable for the taxable year for which the option was made. In 2010 and 2009, FRC opted to use OSD in computing its RCIT. In accordance with R.A.No. 9337, RCIT rate, which is also applicable to FRC only, was reduced from 35% to 30% while nonallowable deductions for interest expense from 42% to 33% of interest income subjected to final tax beginning January 1, 2009. 19. RELATED PARTY TRANSACTIONS Total remunerations of the Group’s key management personnel presented as part of salaries and allowances and employees benefits under the Instructional and Academic, and Administrative Expenses caption (see Note 15) is as follows:
2010 Short-term benefits Retirement benefits P P 120,223,887 P 18,247,691 138,471,578 P 2009 113,999,963 P 18,063,955 132,063,918 P 2008 100,412,356 16,321,494 116,733,850

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20.

EQUITY

20.1 Capital Stock
Shares 2010 Common shares – P100 par value Authorized Issued and outstanding: Balance at beginning of year Issued during the year Balance at end of year Treasury stock – at cost Total outstanding ( 9,845,779 9,845,779 37,331) ( 9,808,448 7,043,699 2,802,080 9,845,779 37,331 ) ( 9,808,448 7,043,699 7,043,699 37,331 ) ( 7,006,368 P P 984,577,900 984,577,900 3,733,100) ( 980,844,800 P P 704,369,900 P 704,369,900 280,208,000 984,577,900 3,733,100 ) ( 980,844,800 P 704,369,900 3,733,100 ) 700,636,800 10,000,000 10,000,000 10,000,000 2009 2008 2010 Amount 2009 2008

20.2 Retained Earnings
Significant transactions affecting Retained Earnings, which is also restricted at an amount equivalent to the cost of treasury shares, are as follows: (a) Appropriation of Retained Earnings Appropriated Retained Earnings consists of appropriations for:
Note Property and investment acquisition Expansion of facilities General retirement Contingencies 22.5 Purchase of equipment and improvements Acquisition of laboratory equipment Repairs and improvements 2010 2009 2008

P 1,000,000,000 P 599,333,335 57,000,000 18,765,682 P 1,675,099,017 P

P 899,333,335 1,010,000,000 57,000,000 57,000,000 18,765,682 20,161,414 30,000,000 20,000,000 10,000,000

975,099,017 P 1,147,161,414

On March 25, 2008, additional appropriation for school expansion of P300 million was approved by the BOT. In 2009, the University made a reversal of appropriations amounting to P172.1 million pertaining to expansion of facilities, repairs and improvements, acquisition of laboratory equipment and purchase of equipment and improvements. In 2010, the University appropriated P1.0 billion for property and investment acquisition and reversed P300.0 million relating to expansion of facilities.

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(b) Dividend Declaration The BOT approved the following dividend declarations in 2010, 2009 and 2008, respectively:
Declaration 2010 Cash dividend of P15 per share Cash dividend of P15 per share Date of Record Payment Amount

June 19, 2009 December 15, 2009

July 6, 2009 January 8, 2010

July 20, 2009 January 25, 2010

P

147,126,720 147,126,720

P 2009 Cash dividend of P15 per share June 17, 2008 40% stock dividend equivalent to 2,802,547 shares August 23, 2008 467 fractional shares paid out in cash at P100 per share August 23, 2008 Cash dividend of P15 per share December 16, 2008

294,253,440

July 7, 2008 September 15, 2008 September 15, 2008 January 8, 2009

July 21, 2008 October 9, 2008 October 9, 2008 January 22, 2009

P

105,095,520 280,208,000 46,720 147,126,720

P 2008 Cash dividend of P15 per share Cash dividend of P15 per share Cash dividend of P15 per share

532,476,960

June 26, 2007 December 18, 2007 March 25, 2008

July 11, 2007 January 7, 2008 April 10, 2008

July 23, 2007 January 17, 2008 April 24, 2008

P

105,095,520 105,095,520 105,095,520

P

315,286,560

Unpaid dividends as of March 31, 2010, 2009 and 2008 are presented as dividends payable under Accounts Payable and Other Liabilities in the consolidated statements of financial position (see Note 12). 21. EARNINGS PER SHARE Earnings per share amounts were computed as follows:
2010 Net profit attributable to owners of the University Divided by weighted average number of outstanding shares, net of treasury stock of 37,331 shares Basic and diluted earnings per share P 657,407,436 P 2009 585,200,755 P 2008 600,693,262

9,808,448 P 67.02 P

8,407,408 69.61 P

7,006,368 85.74

- 42 -

The weighted average number of shares outstanding as of March 31, 2009 is computed as follows:
Number of shares Balance at beginning of year Issuance on October 9, 2008 Balance at end of year Divided by total months as of March 31, 2009 Weighted average number of shares outstanding 7,006,368 2,802,080 9,808,448 Months Outstanding 12 6 Weighted number of shares 84,076,416 16,812,480 100,888,896 12 8,407,408

There were no stock issuances in 2010 and 2008, hence, the weighted average number of shares outstanding is equivalent to the total outstanding shares as of March 31, 2010 and 2008. The University has no dilutive potential common shares as of March 31, 2010, 2009 and 2008. 22. COMMITMENTS AND CONTINGENCIES

22.1 Purchase of Condominium Unit
As discussed in Note 10.2, FRC has an existing contract with a real estate company for the acquisition of a condominium unit which is still undergoing minor construction and renovation works. Future payments under this contract are as follows which is presented as Notes Payable in the consolidated statements of financial position.
2010 Within one year After one year but not more than five years P 3,371,494 P 6,955,744 P 10,327,238 P 2009 3,103,359 P 10,327,238 13,430,597 P 2008 1,895,782 1,895,782

22.2 Operating Lease Commitments – Group as Lessee
The University entered into a contract of lease with Crans Montana for the building occupied by FEU Makati Campus commencing on November 18, 2009 until November 17, 2010. The parties amended the contract extending the lease term for a period of 10 years. The future minimum rentals payable under this operating lease is as follows as of March 31, 2010: Within one year After one year but not more than five years More than five years P 2,623,200 10,492,800 12,241,600 25,357,600

P

- 43 -

22.3 Operating Lease Commitments – Group as Lessor
The University leases out certain buildings to EAEF for a period of one to ten years until August 31, 2017 (see Note 10). Total rent income recognized in the University’s consolidated statements of comprehensive income amounted to P39.2 million in 2010, P22.9 million in 2009 and P25.5 million in 2008. Future minimum rental receivables, excluding contingent rental, under these operating leases as of March 31, 2010, 2009 and 2008 are as follows:
2010 Within one year After one year but not more than five years More than five years P 28,666,776 P 114,667,104 57,333,552 P 200,667,432 P 2009 28,666,776 P 114,667,104 86,000,328 229,334,208 P 2008 17,483,208 69,932,832 69,932,832 157,348,872

FRC leases out certain land and buildings to several related and non-related parties for a period of one to ten years. Certain lease contracts stipulate contingent rentals at a certain percentage of the lessee’s monthly gross revenue. FRC’s lease agreement with Nicanor Reyes Educational Foundation, Inc. (Fern College) which covers certain buildings that Fern College occupies within the campus from June 1, 2007 to May 31, 2017 provides for an annual rental of P1.4 million or 10% of gross annual revenue, whichever is higher. Rental income recognized from this transaction amounted to P6.7 million in 2010, P5.5 million in 2009 and P1.4 million in 2008. Future minimum rental receivables, excluding contingent rental, under these operating leases as of March 31 are as follows:
2010 Within one year After one year but not more than five years More than five years P 52,648,424 P 192,814,163 23,215,842 P 268,678,429 P 2009 50,442,397 P 252,835,730 17,802,160 321,080,287 P 2008 110,606,309 226,149,835 12,886,189 349,642,333

22.4 Acquisition of Crans Montana
In 2010, the University has made a commitment to acquire all shares of stock of Crans Montana and paid option money amounting to P43.7 million for such acquisition. The option money shall be refunded to the University upon acquisition or failure to pursue such acquisition (see Note 6). The total acquisition price is about P216.0 million.

- 44 -

22.5 Legal Claims
FRC is a party to a case filed by World War II Veterans Legionaries of the Philippines, which seeks the annulment of FRC’s title over approximately 15 to 25 hectares of land that had been the subject matter of a joint development agreement with Ayala Land, Inc. The specific bounds of the claimed area were not specified by the plaintiff. The plaintiff also sought monetary damages in the amount of approximately P300,000 and monthly rentals of P300,000, while the case is pending in court. FRC’s management and its legal counsel, however, are vigorously contesting the claims. The case was initially dismissed by the Regional Trial Court and is currently pending on appeal before the Court of Appeals. The Group’s management and its legal counsel believe that the liabilities, if any, which may result from the outcome of these cases, will not materially affect the financial position and results of operations of the Group. However, the Group has appropriated portion of its retained earnings for these contingencies (see Note 20.2)

22.6 Others
There are other contingencies that arise in the normal course of business that are not recognized in the Group’s financial statements. However, management believes that losses, if any, arising from these commitments and contingencies will not materially affect its consolidated financial statements. 23. RISK MANAGEMENT OBJECTIVES AND POLICIES The Group is exposed to certain financial risks in relation to financial instruments. Its main purpose for its dealings in financial instruments is to fund operational and capital expenditures. The BOT has overall responsibility for the establishment and oversight of the Group’s risk management framework. It has a risk management committee headed by an independent trustee that is responsible for developing and monitoring the Group’s policies, which address risk management areas. Management is responsible for monitoring compliance with the Group’s risk management policies and procedures and for reviewing the adequacy of these policies in relation to the risks faced by the Group. The Group does not actively engage in trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Group is exposed to are described below.

- 45 -

23.1 Interest Rate Sensitivity
The Group’s exposure to interest rate risk arises from the following interest-bearing financial instruments which are subject to variable interest rates. All other financial assets and liabilities have fixed rates.
Notes 2010 2009 2008

Cash and cash equivalents AFS investments Held-to-maturity investments

5 7

P

468,148,054 P 1,172,859,362 P 1,207,342,389 1,240,095,151 1,088,109,957 840,687,402

20,000,000

20,000,000

32,071,040

P 1,728,243,205 P 2,280,969,319 P 2,080,100,831

The following table illustrates the sensitivity of profit before tax for the years in regards to the Group’s interest-bearing financial instruments. These percentages have been determined based on the average market volatility rates, using standard deviation, in the previous 12 months, estimated at 68% level of confidence. The sensitivity analysis is based on the Group’s financial instruments held at March 31, 2010, 2009 and 2008.
2010 Reasonably possible change in rate Cash and cash equivalents AFS investments Held-to-maturity investments +/-1.39% +/-0.94% +/-1.39% Effect on profit before tax P 4,992,069 16,554,134 278,000 Reasonably possible change in rate +/-2.67% +/-2.83% +/-2.67% 2009 Effect on profit before tax P 32,788,553 28,547,356 534,000 P 61,869,909 2008 Reasonably Effect on possible profit before change in rate tax +/-1.35% +/-1.54% +/-1.35% P 17,375,862 11,117,533 432,959 P 28,926354

P 21,824,203

23.2 Credit Risk
Credit risk represents the loss the Group would incur if the counterparty failed to perform under its contractual obligations. The Group’s exposure to credit risk on its receivables related primarily to the inability of the debtors to pay and students to fully settle the unpaid balance of tuition fees and other charges which are owed to the Group based on installment payment schemes. The Group has established controls and procedures in its credit policy to determine and to monitor the credit worthiness of the students based on relevant factors. Also, students are not allowed to enroll in the following semester unless the unpaid balance in the previous semester has been paid. The Group also withholds the academic records and clearance of the students with unpaid balance, thus ensuring that collectibility is reasonably assured. The Group’s exposure to credit risk on its other receivable from debtors and related parties is managed through close account monitoring and setting limits. The Group neither has any significant exposure to any individual customer or counterparty nor does it have any other concentration of credit risk arising from counterparties in similar business activities, geographic region or economic parties.

- 46 -

With respect to credit risk arising from cash and cash equivalents, receivables, AFS investments and HTM investments, the Group’s exposure to credit risk arises from default of the counterparty, with maximum exposure equal to the carrying amount of these instruments. The maximum exposure to credit risk at the end of the reporting period is as follows:
Notes 2010 2009 2008

Cash and cash equivalents Receivables AFS investments HTM investments Restricted cash and cash equivalents

5 6 7

P

468,148,054 P 1,172,859,362 P 1,207,342,389 839,947,375 138,151,928 113,434,183 1,240,095,151 1,088,109,957 840,687,402 20,000,000 20,000,000 32,071,040

5, 13

43,970,750

58,490,642

76,162,222

P 2,612,161,330 P 2,477,611,889 P 2,269,697,236

The table below shows the credit quality of the Group’s financial assets as of March 31, 2010, 2009 and 2008 (presented in ‘000) having past due but not impaired components.
Neither past due nor impaired 2010 Cash and cash equivalents Receivables AFS investments Held-to-maturity investments Restricted cash and cash equivalents Past due Impaired Not (see Note 6) impaired

Total

P

468,148 823,549 1,240,095 20,000 43,970

P

15,728 -

P

16,398 -

P

468,148 855,675 1,240,095 20,000 43,970

P 2,595,762 2009 Cash and cash equivalents Receivables AFS investments Held-to-maturity investments Restricted cash and cash equivalents

P

15,728

P

16,398

P 2,627,888

P 1,172,859 123,377 1,088,110 20,000 58,491 P 2,462,837

P

14,146 -

P

14,775 -

P 1,172,859 152,298 1,088,110 20,000 58,491 P 2,491,758

P

14,146

P

14,775

- 47 Neither past due nor impaired 2008 Cash and cash equivalents Receivables AFS investments Held-to-maturity investments Restricted cash Past due Impaired Not (see Note 6) impaired

Total

P 1,207,342 86,742 840,687 32,071 76,162 P 2,243,004

P

11,872 -

P

26,692 -

P 1,207,342 125,306 840,687 32,071 76,162 P 2,281,568

P

11,872

P

26,692

The age of past due but not impaired receivables is about six months for each of the three years. The Group classifies tuition and other fee receivables from students based on the number of semesters the receivables have been outstanding. Receivables from students that are outstanding for more than one semester are analyzed to determine whether they are impaired. Those that are not outstanding for more than one semester or are currently receivable are determined to be collectible, based on historical experience. The Group’s management considers that all the above financial assets are not impaired, except those specifically provided with allowance for impairment, as of the end of the reporting periods and of good credit quality. Cash and cash equivalents, AFS investments and HTM investments are coursed through reputable financial institutions duly approved by the BOT.

23.3 Liquidity Risk
The Group manages liquidity risk by maintaining a balance between continuity of funding and flexibility. Treasury controls and procedures are in place to ensure that sufficient cash is maintained to cover daily operational and working capital requirements. Management closely monitors the Group’s future and contingent obligations and ensures that future cash collections are sufficient to meet them in accordance with internal policies. The Group invests in cash placements when excess cash is obtained from operations. Financial liabilities of the Group at the end of the reporting period comprise of accounts payable and accrued expenses, dividends payables and notes payable – current which are all short-term in nature and have contractual maturities of less than 12 months from the reporting period, except for the non-current portion of notes payable amounting to P7.0 million and P10.3 million as of March 31, 2010 and 2009, respectively, which are due beyond 12 months.

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23.4 Other Price Risk Sensitivity
The Group’s exposure to price risk arises from its investments in equity and debt securities, which are classified as AFS investments in the consolidated statements of financial position. Management monitors its equity and debt securities in its investment portfolio based on market indices. Material investments within the portfolio are managed on an individual basis. AFS investments consist of publicly listed equity securities and government securities which are carried at fair value and non-listed equity securities for which no fair value information is available and that are therefore carried at cost. For equity securities listed in the Philippines, an average volatility of 26.06%, 36.68% and 56.14% has been observed during 2010, 2009 and 2008 respectively. If quoted price for these securities increased or decreased by that amount profit before tax would have changed by P4.9 million, P7.1 million and P9.8 million in 2010, 2009 and 2008, respectively. The investments in listed equity securities are considered long-term strategic investments. In accordance with the Group’s policies, no specific hedging activities are undertaken in relation to these investments. The investments are continuously monitored and voting rights arising from these equity instruments are utilized in the Group’s favor. 24. CATEGORIES AND FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES

24.1 Comparison of Carrying Amounts and Fair Values
The carrying amounts and fair values of the categories of financial assets and liabilities presented in the consolidated statements of financial position are shown below.
Notes Carrying Values
Financial assets
Loans and receivables Cash and cash equivalents Receivables Restricted cash and and cash equivalents 5 6 5, 13 P 468,148,054 839,947,375 43,970,750 1,352,066,179 AFS investments Debt securities Equity securities 7 1,218,166,152 21,928,999 1,240,095,151 HTM investments Debt securities P 20,000,000 2,612,161,330 1,218,166,152 21,928,999 1,240,095,151 20,000,000 P 2,612,161,330 P 1,068,371,205 19,738,752 1,088,109,957 20,000,000 2,477,611,889 1,068,371,205 19,738,752 1,088,109,957 20,000,000 P 2,477,611,889 815,585,043 25,102,359 840,687,402 32,071,040 P 2,269,697,236 815,585,043 25,102,359 840,687,402 32,071,040 P 2,269,697,236 P 468,148,054 839,947,375 43,970,750 1,352,066,179 P 1,172,859,362 138,151,928 58,490,642 1,369,501,932 P 1,172,859,362 138,151,928 58,490,642 1,369,501,932 P 1,207,342,389 113,434,183 76,162,222 1,396,938,794 P 1,207,342,389 113,434,183 76,162,222 1,396,938,794

2010 Fair Values Carrying Values

2009 Fair Values Carrying Values

2008 Fair Values

Financial liabilities
Accounts payable and accrued expenses Notes payable 12 10 P P 453,578,125 10,327,238 463,905,363 P P 453,578,125 10,327,238 463,905,363 P P 349,657,377 13,430,597 363,087,974 P P 349,657,377 13,430,597 363,087,974 P P 420,350,624 1,895,782 422,246,406 P 420,350,624 1,895,782

P 422,246,406

- 49 -

See Notes 2.4 and 2.8 for a description of the accounting policies for each category of financial instruments. A description of the Group’s risk management objectives and policies for financial instruments is provided in Note 23.

24.2 Fair Value Hierarchy
The Group adopted the amendments to PFRS 7, Improving Disclosures about Financial Instruments, effective January 1, 2009. These amendments require the Group to present certain information about financial instruments measured at fair value in the consolidated statements of financial position. In the first year of application, comparative information need not be presented for the disclosures required by the amendment. Accordingly, the disclosure for the fair value hierarchy is only presented for March 31, 2010. In accordance with this amendment, financial assets and liabilities measured at fair value in the consolidated statements of financial position are categorized in accordance with the fair value hierarchy. This hierarchy groups financial assets and liabilities into three levels based on the significance of inputs used in measuring the fair value of the financial assets and liabilities. The fair value hierarchy has the following levels: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2: inputs other than quoted prices included within Level 1 that are observable for the resource or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and, Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).





The level within which the financial asset or liability is classified is determined based on the lowest level of significant input to the fair value measurement. The breakdown of the Group’s AFS investments measured at fair value in its statement of financial position as of March 31, 2010 is as follows:
Level 1 Debt securities: Government Corporate Equity securities Level 2 Level 3 Total

P

678,179,527 55,540,548 21,928,999 755,649,074

P

-

P

P 678,179,527 484,446,077 539,986,625 21,928,999

P

P

P 484,446,077 P 1,240,095,151

- 50 -

25.

CAPITAL MANAGEMENT OBJECTIVES, POLICIES AND PROCEDURES The Group aims to provide returns on equity to shareholders while managing operational and strategic objectives. The Group manages its capital structure and makes adjustments to it, in the light of changes in economic conditions. To maintain or adjust capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Group defines capital as paid-in capital stock and retained earnings, both appropriated and unappropriated. Other components of equity such as treasury stock, accumulated fair value gains (losses) and minority interest are excluded from capital for purposes of capital management. The BOT has overall responsibility for monitoring of capital in proportion to risks. Profiles for capital ratios are set in the light of changes in the Group’s external environment and the risks underlying the Group’s business, operation and industry. The Group monitors capital on the basis of debt-to-equity ratio, which is calculated as total debt, net of deferred income and deferred tax liabilities divided by total equity. Capital for the reporting period March 31, 2010, 2009 and 2008 under review is summarized as follows:
2010 Total debt – net Total equity attributable to owners of the parent company Debt-to-equity ratio P 586,634,386 P 2009 470,299,930 P 2008 553,085,236

3,395,346,584 0.17 : 1.00

3,014,857,779 0.16 : 1.00

2,692,692,664 0.21 : 1:00

The Group is not subject to any externally-imposed capital requirements. There was no change in the Group’s approach to capital management during the year.

THE FAR EASTERN UNIVERSITY, INCORPORATED AND SUBSIDIARIES INDEX TO SUPPLEMENTARY SCHEDULES MARCH 31, 2010

Statement of Management’s Responsibility for the Consolidated Financial Statements Independent Auditors’ Report on the SEC Supplementary Schedules Filed Separately from the Basic Financial Statements Supplementary Schedules to Consolidated Financial Statements (Form 17-A, Item 7) Page No. A. Marketable Securities - (Current Marketable Equity Securities and Other Short-term Cash Investments) B. Amounts Receivable from Directors, Officers, Employees, Related Parties and Principal Stockholders (Other than Affiliates) C. Noncurrent Marketable Equity Securities, Other Long-term Investments in Stocks and Other Investments D. Indebtedness to Unconsolidated Subsidiaries and Related Parties E. Other Assets F. Long-term Debt G. Indebtedness to Related Parties (Long-term Loans from Related Companies) H. Guarantees of Securities of Other Issuers I. Capital Stock

1 2 18 NA 19 NA* NA NA 20

Supplementary Schedule to Parent Financial Statements (SEC Circular No. 11) Reconciliation of Parent Company Retained Earnings for Dividend Declaration 21

* Balance of account is less than 5% of the total liabilities of the Group.

THE FAR EASTERN UNIVERSITY, INCORPORATED AND SUBSIDIARIES Schedule A - Marketable Securities - (Current Marketable Equity Securities and Other Short-Term Cash Investments) For the year ended March 31, 2010

Name of banks

Amount shown on the statements of financial position

Income received and accrued

Bank of the Philippine Islands Banco de Oro Metrobank Security Bank Unionbank Rizal Commercial Banking Corp. Chinabank Citibank Land Bank TOTAL

P

735,846,427 486,690,497 167,715,521 100,000,000 39,000,000 32,820,698 30,000,000 20,000,000 1,836,467 1,613,909,610

P

53,131,605 36,725,691 5,741,449 3,710,070 1,318,780 3,001,898 2,732,687 1,650,000 461,000 108,473,180

P

P

The amounts are presented in the statements of financial position as follows: Short-term placements Available-for-sale investments Held-to-maturity investment P 353,814,459 1,240,095,151 20,000,000 1,613,909,610 P 43,959,919 62,863,261 1,650,000 108,473,180

P

P

1

THE FAR EASTERN UNIVERSITY, INCORPORATED AND SUBSIDIARIES SCHEDULE B - AMOUNTS RECEIVABLE FROM DIRECTORS, OFFICERS, EMPLOYEES, RELATED PARTIES, AND PRINCIPAL STOCKHOLDERS (OTHER THAN AFFILIATES) FOR THE YEAR ENDED MARCH 31, 2010

(Amounts in Philippine Pesos)
Deductions Name and Designation of Debtor Beginning Balance Additions Amount Deducted Amount Written-Off Current Non-Current Ending

Abellera, Evelyn C. Acab, Deborah A. Acosta, Venina Corazon S. Adolfo, Marlon Africa, Dickenson Y. Agdalpen, Renato C. Agluba, Noreen Agorilla, Delia Albino, Maulynn Albiva, Merlyn T. Alcaraz, Nellie T. Alcazar, Nina Aiza Alfaro, Jennylyn G. Alibania, Hazel J. Alo, James Alolor, Jacqueline G. Amacan, Normita C. Amlog, Jocelyn A. Ampatin, Estrella V. Anastacio, Nanette V. Anastacio, Teresita M. Andres, Jocelyn Anido, Cecilia I. An Lim, Jaime L. Arabia, Julieta S. Aragon, Lloyd Jeffrey Arbizo, Maria Sophia Arejola, Romeo Arquiza, Glenda S. Arribe, Emma B. Asilo, Ma. Cecilia Ataat, Jose Atanque, Aurora L. Austria, Ryan Ayson, Rosalino P., Jr. Azor, Helen A. Azucena, Cesario Baconawa, Ma. Dorina M. Badiable, Charisma Mae Baello, Christine N. Balaoro, Maria Theresa Balaria, Dalmacio P. Bambico, Elma Banal, Enrico R. Barcellano, Francis Barcelona, Samson V. Bartolome, Liezl DM. Batungbakal, Marisa Bautista, Andres D. Bautista, Arlene Mae DG. Bayan, Zenaida E. Belardo, Ma. Jeanette Belleza, Asuncion L. Beltran, Charity J. Belza, Mercedes A. Bonaobra, Salvador B.

302.23 10,400.00 418.97 (3,560.00) 200.00 2,000.00 63.00 660.00 207.50 1,464.00 8,200.00 415.50 (3,835.00) 1,000.00 600.00 (873.00) (6.45) 45,000.00 26,005.00 (3,309.80) 89.74 90.00 70,422.99 (1,455.72) (1,900.00) 5,000.00 3,695.57 200.00 (9,845.50) 245.00 50.00 200.00 (2,288.82) 5,000.00 14,345.00 (1,528.17) 1,339.20 79.17 5,000.00 (137.50) (200.00) 7,500.00 311.00 (22,171.50) (4,595.00) 200.00 (58.00) 17.50 3,000.00 1,027.00 585.50 1,794.53 (12,289.47) 175.00 7,060.00 (750.00)

3,757.55

221,077.16

14,376.00

302.23 10,400.00 418.97 (3,560.00) 200.00 2,000.00 63.00 660.00 207.50 1,464.00 8,200.00 415.50 (3,835.00) 1,000.00 600.00 (873.00) (3,764.00) 45,000.00 26,005.00 (3,309.80) 89.74 90.00 (150,654.17) (1,455.72) (1,900.00) 5,000.00 3,695.57 200.00 (9,845.50) 245.00 50.00 200.00 (2,288.82) 5,000.00 (31.00) (1,528.17) 1,339.20 79.17 5,000.00 (137.50) (200.00) 7,500.00 311.00 (22,171.50) (4,595.00) 200.00 (58.00) 17.50 3,000.00 1,027.00 585.50 1,794.53 (12,289.47) 175.00 7,060.00 (750.00)

302.23 10,400.00 418.97 (3,560.00) 200.00 2,000.00 63.00 660.00 207.50 1,464.00 8,200.00 415.50 (3,835.00) 1,000.00 600.00 (873.00) (3,764.00) 45,000.00 26,005.00 (3,309.80) 89.74 90.00 (150,654.17) (1,455.72) (1,900.00) 5,000.00 3,695.57 200.00 (9,845.50) 245.00 50.00 200.00 (2,288.82) 5,000.00 (31.00) (1,528.17) 1,339.20 79.17 5,000.00 (137.50) (200.00) 7,500.00 311.00 (22,171.50) (4,595.00) 200.00 (58.00) 17.50 3,000.00 1,027.00 585.50 1,794.53 (12,289.47) 175.00 7,060.00 (750.00)

Deductions Name and Designation of Debtor Brawner, Dalisay G. Briones, Domingo J. Brocal, Cynthia M. Buenaventura, Alexander V. Buenaventura, Olga C. Buenavida, Amelia Bueno, Marivic Bulanhagui, Nida B. Bustamante, Ma. Christine H. Caagbay, Elpidio Z. Cabaltica, Leilani A. Cabantac, Ricardo R. Cadorna, Rosemarie S. Cagadas, Ruly Cajucom, Mary Grace A. Calizar, Dexter A. Camacho, Joseph C. Cando, Cromwell N. Canilao, Fe V. Cao, Marilou F. Capacio, Glenn Caramanza, Edward M. Cardona, Enrico Cariquitan, Daisy Carpio, Miguel M. Castanas, Baby Theress Castro, Joeven R, Cauba, Harvey A. Cecilio, Ma. Elaine Cerrer, Redentor A. Chan, Jeffrei Allan Chu, Connie Chua, Ryan Gilbert Clemente, Luisa DC. Codinera, Virgilio B. Cometa, Ma. Victoria D. Concepcion, Gerald G. Concha, Jhonalyn M. Cordero, Nelma Cruz, Anita B. Cruz, Anna Lisa D. Cruz, Christybel O. Cruz, Eloisa G. Cruz, Janet R. Cruz, John Ross R. Cruz, Jose Noel Cruz, Maricar Cruz, Maritess Cruz, Precita P. Cruz, Reynaldo J. Cruz, Rosalie dela Cruz, Sandra Lyn D. Culala, Harold John D. Cunanan, Fernando M. Custodio, Joselito Dado, Rorylyn H. Dapla, Walter Davalos, Zenaida R. Deatras, Jeffrey Delloro, Evelyn Demagante, Rey Francis G. Destura, Blanca Diaz, Aeneas Eli Dingding, Quintin P. Beginning Balance 40.00 10,079.00 24.00 7,060.00 27,213.00 165.00 10,000.00 620.00 8,600.00 (5,305.00) 4,210.55 7,060.00 656.20 200.00 440.00 3,126.10 600.00 1,248.00 359,792.04 (4,867.00) (7,300.00) 9,000.00 200.00 308.00 (13,086.34) 82.50 4,555.00 4,364.78 3,795.89 200.00 (6,927.00) 195.20 5,000.00 3,615.90 79.72 (7,775.00) 250.00 10,900.00 1,195.00 25,000.00 (944.00) 928.75 3,362.50 200.00 (4,500.00) 200.00 5,000.00 9.16 (1,400.00) 934.05 6.68 523.01 (5,835.00) 3,309.80 50.00 (1,000.00) 3,851.29 (499.20) (2,861.29) 748.00 50.00 224.56 (10,000.00) 70.00 Additions Amount Deducted 120.90 Amount Written-Off Current Non-Current 40.00 9,958.10 24.00 7,060.00 27,213.00 165.00 10,000.00 620.00 8,600.00 (5,305.00) 4,210.55 7,060.00 656.20 200.00 440.00 3,126.10 600.00 1,248.00 79,722.72 (4,867.00) (7,300.00) 9,000.00 200.00 308.00 (13,086.34) 82.50 4,555.00 3,647.90 3,795.89 200.00 (6,927.00) 195.20 5,000.00 1,015.00 79.72 (7,775.00) 250.00 10,900.00 1,195.00 25,000.00 (944.00) 928.75 3,362.50 200.00 (4,500.00) 200.00 5,000.00 9.16 (1,400.00) 934.05 6.68 523.01 (5,835.00) 1,025.03 50.00 (1,000.00) 3,851.29 (499.20) (2,861.29) 748.00 50.00 224.56 (10,000.00) 70.00 Ending 40.00 9,958.10 24.00 7,060.00 27,213.00 165.00 10,000.00 620.00 8,600.00 (5,305.00) 4,210.55 7,060.00 656.20 200.00 440.00 3,126.10 600.00 1,248.00 79,722.72 (4,867.00) (7,300.00) 9,000.00 200.00 308.00 (13,086.34) 82.50 4,555.00 3,647.90 3,795.89 200.00 (6,927.00) 195.20 5,000.00 1,015.00 79.72 (7,775.00) 250.00 10,900.00 1,195.00 25,000.00 (944.00) 928.75 3,362.50 200.00 (4,500.00) 200.00 5,000.00 9.16 (1,400.00) 934.05 6.68 523.01 (5,835.00) 1,025.03 50.00 (1,000.00) 3,851.29 (499.20) (2,861.29) 748.00 50.00 224.56 (10,000.00) 70.00

280,069.32

716.88

2,600.90

2,284.77

Deductions Name and Designation of Debtor Dino, Kristopher Dizon, Mercy G. Doria, Jeanette V. Duena, Teodoro C., Jr. Dulay, Sofronio C. Dumadag, Norma M. Dumas, Marvin C. Dumdumaya, Myline Marie P. Duque, Ronald Echauz, Lydia B. Elman, Mario B. Enriquez, Emiliana Escosia, Aurora A. Eser, Myline S. Espino, Kristine Espinosa, William V. Esquibel, Elizabeth Estabillo, Ma. Luz Estacio, Ma. Vivian G. Esteban, Alejandro L. Estonanto, Mark Ronald L. Estonanto, Mavi Issel L. Estrella, Gloria Estrella, Luisito P. Fabito, Evelyn Fabros, Marietta Federigan, Melissa Felizardo, Dante A. Feraren, Mitchell Fernandez, Benedict T. III Fernandez, Dante Roel Fernando, Gerry V. Fesalbon, Hermond F. FEU Consumer's Coop. FEU Credit Union Fiesta, Erlinda P. Figer, Reggy C. Flojo, Flordeliza Flores, Hanonica S. Flores, Miguela T. Flores, Roberto C. Florida, Ma. Corazon M. Foe, Jonathan Frades, Francisca B. Frias, Wilmer Fuentes, Ma. Leda J. Galiza, Miguela S. Gallardo, John Garcia, Dolores A. Garcia, Earl Jimson R. Garcia, Lourdes C. Garcia, Muriel B. Garcia, Mylene M. Garcia, Severino M. Garin, May C. Genota, Jaime F. Gil, Aurora H. - PMSI Go-Monilla, Ma. Joycelyn A. Gonzaga, Jemabel Gonzales, Fortune N. Gubio, James B. Guevarra, Remedios P. Gupit, Dolores S. Gutang, Marco P. Beginning Balance 400.00 (800.00) (260.00) (6,000.00) (10,636.95) 27,015.20 150.00 (1,200.00) 50.00 (20,362.80) (1,800.00) 50.00 23,699.77 33,035.86 112.00 6,431.00 5,000.00 529.50 (1,625.01) 5,000.00 374.85 32,221.65 1,460.37 (300.00) 2,163.00 5,295.67 946.25 10,000.00 50.00 (4,400.00) 699.00 967.00 7,729.34 3,295.85 1,560.92 8,532.50 24,300.00 168.50 50.00 (102.50) (32,250.00) (1,800.00) 100.00 (130.00) 5,000.00 7,060.00 45,000.00 13,000.40 50,000.00 6,000.00 16.41 (6,500.00) 10,000.00 330,762.36 25,000.00 822.32 7,060.00 280.31 505.00 397.50 (6,000.00) 4,297.00 (26,896.39) (2,353.33) Additions Amount Deducted Amount Written-Off Current Non-Current 400.00 (800.00) (260.00) (6,000.00) (10,636.95) 1,217.00 150.00 (1,200.00) 50.00 (20,362.80) (1,800.00) 50.00 23,699.77 33,035.86 112.00 6,431.00 5,000.00 529.50 (1,625.01) 5,000.00 374.85 32,221.65 1,460.37 (300.00) 2,163.00 5,295.67 946.25 10,000.00 50.00 (4,400.00) 699.00 967.00 7,729.34 3,295.85 1,560.92 8,532.50 24,300.00 168.50 50.00 (102.50) (32,250.00) (1,800.00) 100.00 (477.85) 5,000.00 7,060.00 45,000.00 13,000.40 50,000.00 6,000.00 16.41 (6,500.00) 10,000.00 94,560.84 10,000.00 822.32 7,060.00 280.31 505.00 397.50 (6,000.00) 4,297.00 (26,896.39) (2,353.33) Ending 400.00 (800.00) (260.00) (6,000.00) (10,636.95) 1,217.00 150.00 (1,200.00) 50.00 (20,362.80) (1,800.00) 50.00 23,699.77 33,035.86 112.00 6,431.00 5,000.00 529.50 (1,625.01) 5,000.00 374.85 32,221.65 1,460.37 (300.00) 2,163.00 5,295.67 946.25 10,000.00 50.00 (4,400.00) 699.00 967.00 7,729.34 3,295.85 1,560.92 8,532.50 24,300.00 168.50 50.00 (102.50) (32,250.00) (1,800.00) 100.00 (477.85) 5,000.00 7,060.00 45,000.00 13,000.40 50,000.00 6,000.00 16.41 (6,500.00) 10,000.00 94,560.84 10,000.00 822.32 7,060.00 280.31 505.00 397.50 (6,000.00) 4,297.00 (26,896.39) (2,353.33)

25,798.20

347.85

236,201.52 15,000.00

Deductions Name and Designation of Debtor Guzman, Jericho D. Guzman, Jimmy Hernandez, Alma R. Hernandez, Angeline A. Hilario, Jacqueline E. Hore, Lelioso G. Ibasco, Lourdes Ignacio, Lourdes D. Iguas, Jose A. Imbang, Ma. Nathalie A. Inciong, Cherry Wyne E. Irabagon, Miramar Isidro, Rosalina B. Israel, Marietta C. Jabile, Joel E. Javier, Anabella G. Jesus, Angelita SD. Jimenez, Arsenia S. Jimenez, Marietta Jonson, Joyce Lisa B. Jose, Corazon V. Jose, Haidee R. Junio, Nenitha L. Kenny, Isabel Lagula, Janette Lamboson, Roger C. Lantin, Rommel Lapastora, Milagros P. Lapuebla, Alfredo N. Larano, Leonora Larda, Edmundo D. Laudato, Emmanuel N. Laurente, Jaime R. Lauro, Jocelyn P. Lazaro, Ma.Teresita A. Legaspi, Heidi Leon, Emma Rose H. Lewis, Salome Liggayu, Michael Lim, Nathaniel L. Lintag, Graciel A. Listana, Mary Rose Lizaso, Marcelino N. Lopez, Anastacio, Jr. L. Lopez, Antonio P., Jr. Lopez, Fernando M. Lopez, Mercedita P. Loza, Luningning R. Lugtu, Blyth Macadangdang, Luzviminda Macalaguing, Mateo D. Jr. Macaraeg, Paul Macario, Christopher Magayaga, Lea Q. Magtoto, Eliseo Malinao, Marivic Maliwat, Herminia I. Malot, Edmund Francis Manalili, Golda P. Manansala, Paolo Mangahas, Roser Benjamin Manicsic, Teresa B. Manigan, Alma C. Manlapaz, Divine Grace Beginning Balance 8,460.00 150.00 (1,337.50) 7,491.70 662.50 300.00 350.00 (350.00) (980.00) 3,772.50 7,500.00 6,000.00 (593.75) 5,000.00 50.00 8,162.50 0.08 5,970.00 2,290.86 (48,424.97) 2,058.57 (1,446.80) 767.00 14,000.00 117.50 (4,000.00) 1,383.31 7,406.80 2,490.00 5,848.75 (1,500.00) (1,200.00) 1,650.25 10,856.00 3,205.00 1,000.00 16,500.00 1,147.50 200.00 317.00 1,180.16 1,012.50 400.00 (230.00) 15.34 250.00 252.50 748.00 5.00 (137.50) 10,000.00 6,436.23 50.00 (7,059.99) 200.00 110.00 607,752.15 100.00 50.00 81.58 1,397.00 84.00 7.61 5,000.00 Additions Amount Deducted Amount Written-Off Current Non-Current 8,460.00 150.00 (1,337.50) 6,675.53 662.50 300.00 350.00 (350.00) (980.00) 3,772.50 7,500.00 6,000.00 (593.75) 5,000.00 50.00 8,162.50 0.08 5,970.00 2,290.86 (48,424.97) 2,058.57 (1,446.80) 767.00 14,000.00 117.50 (4,000.00) 1,383.31 2,071.80 2,368.40 5,848.75 (1,500.00) (1,200.00) 1,650.25 10,856.00 3,205.00 1,000.00 16,500.00 1,147.50 200.00 317.00 1,180.16 1,012.50 400.00 (230.00) 15.34 250.00 252.50 748.00 5.00 (137.50) 10,000.00 6,436.23 50.00 (7,059.99) 200.00 110.00 401,459.55 100.00 50.00 81.58 1,397.00 84.00 7.61 5,000.00 Ending 8,460.00 150.00 (1,337.50) 6,675.53 662.50 300.00 350.00 (350.00) (980.00) 3,772.50 7,500.00 6,000.00 (593.75) 5,000.00 50.00 8,162.50 0.08 5,970.00 2,290.86 (48,424.97) 2,058.57 (1,446.80) 767.00 14,000.00 117.50 (4,000.00) 1,383.31 2,071.80 2,368.40 5,848.75 (1,500.00) (1,200.00) 1,650.25 10,856.00 3,205.00 1,000.00 16,500.00 1,147.50 200.00 317.00 1,180.16 1,012.50 400.00 (230.00) 15.34 250.00 252.50 748.00 5.00 (137.50) 10,000.00 6,436.23 50.00 (7,059.99) 200.00 110.00 401,459.55 100.00 50.00 81.58 1,397.00 84.00 7.61 5,000.00

816.17

5,335.00 121.60

206,292.60

Deductions Name and Designation of Debtor Manlapaz, Victor Manrique, Elenita Mazo, Flaviano S. MC Entee, Keneline M. Medina, Joy E. Medina, Ma. Ana Karina S. Medina, Merle S. Medrano, Rosalinda Membrot, Ezitiel R. Mendoza, Cecilia H. Mendoza, Florina M. Mendoza, Jobert Menorca, Emmanuel S. Mercado, Annabelle K. Miguel, Emmanuel C. Milarpis, Joel Miranda, Dennis Monong, Cora Morimonte, Bonifacio D. Mortell, Gideon Nagal, Glenn Z. Narval, Antonio G. Natera, Malvin G. Nava, Delfin D. Nicer, Joselito C. Nietes, Raymond G. Ninobla, Magnolia Ninubla, Shiela Nolasco, Maria Sylva Noriega, Mariwilda I. Nuestro, Sarah Joyce Nulla, Mila R. Ocampo, Wilfredo T. Olipas, Lorina L. Ong, Emil Orjalo, Victoria G. Ortiz, Jose Ortiz, Milixa Lourdes B. Oyzon, Gualberto J. Padilla, Maria Eleanor T. Pahutan, Ludivinia M. Palparan, Karoline L. Pamintuan, Jose Edmundo E. Pante, Ronald S. Paraiso, Lourdes Oliva C. Paras, Renato Pasag, Maribeth Pascua, Jennifer J. Pascual, Perfecto Patricio, Natividad Paz, Rosalinda Z. Pekson II, Enrique Arvin Perez, Crismin Perez, Jose R. Jr. Pimentel, Stephanie Pineda, Rodolfo G. Ponsaran, Levy C. Portiz, Ellen Pring, Melanie Publico, Hilario Q. Puertollano, Derek Pulmano, Zelmo Querijero, Glen Hilario M. Quiambao, Arlene Beginning Balance 1,200.00 17,000.00 780.00 3,928.90 (409.52) 25.94 (1,075.25) 935.50 2,150.00 (6,186.77) 300.00 10,000.00 (250.00) 3,758.55 6,619.60 4,000.00 4,100.00 6,000.00 500.00 5,237.46 330,762.36 520.80 4,121.97 767.00 (65,500.85) 16,689.30 170.00 1,018.53 1,775.00 (7,306.55) 10,947.97 21,433.75 1,150.00 200.00 417.53 200.00 (4,882.00) 5,000.00 3,002.80 1,430.50 (200.00) (900.00) 100.00 600.00 84,847.50 50,000.00 315.00 40,977.91 350.00 598.75 8,805.00 (43,488.12) 10,591.34 52.20 285.00 (149.99) 2,450.00 207.50 5,000.00 5,376.50 250.00 8,000.00 5,000.00 358.50 Additions Amount Deducted Amount Written-Off Current Non-Current 1,200.00 17,000.00 780.00 3,928.90 (409.52) 25.94 (1,075.25) 935.50 2,150.00 (6,186.77) 300.00 10,000.00 (250.00) 3,758.55 6,619.60 4,000.00 4,100.00 6,000.00 500.00 5,237.46 94,560.84 520.80 4,121.97 767.00 (65,500.85) 16,689.30 170.00 1,018.53 1,775.00 (7,306.55) 10,882.23 21,433.75 1,150.00 200.00 417.53 200.00 (4,882.00) 5,000.00 3,002.80 1,430.50 (200.00) (900.00) 100.00 600.00 84,847.50 50,000.00 315.00 40,977.91 350.00 598.75 8,805.00 (43,488.12) 10,591.34 52.20 285.00 (149.99) 2,450.00 207.50 5,000.00 5,376.50 250.00 8,000.00 5,000.00 358.50 Ending 1,200.00 17,000.00 780.00 3,928.90 (409.52) 25.94 (1,075.25) 935.50 2,150.00 (6,186.77) 300.00 10,000.00 (250.00) 3,758.55 6,619.60 4,000.00 4,100.00 6,000.00 500.00 5,237.46 94,560.84 520.80 4,121.97 767.00 (65,500.85) 16,689.30 170.00 1,018.53 1,775.00 (7,306.55) 10,882.23 21,433.75 1,150.00 200.00 417.53 200.00 (4,882.00) 5,000.00 3,002.80 1,430.50 (200.00) (900.00) 100.00 600.00 84,847.50 50,000.00 315.00 40,977.91 350.00 598.75 8,805.00 (43,488.12) 10,591.34 52.20 285.00 (149.99) 2,450.00 207.50 5,000.00 5,376.50 250.00 8,000.00 5,000.00 358.50

236,201.52

65.74

Deductions Name and Designation of Debtor Quijano, Virginia A. Quintanar, Janeth A. Quinto, Myrna P. Quirimit, Luzviminda Ragonjah, Homer Jay D. Ramon, Elizabeth A. de - PMSI Ramones, Rhozallino C. Ramos, Erlinda L. Ramos, Leonora A. Ramos, Ma. Theresa L. Rana, Aurelio Y. Rapirap. Raquel T. Rasalan, Julia Remiendo, Noraliza A. Remigio, Warley Retardo, Victor C. Reyes, Byron M. Reyes, Herbert D. Reyes, Melodia S. Reyes, Ruby Reymundo, Samuel Rivera, Myrna T. Rizada, Ryan Joseph Ronda, Ma. Lea A. Rosa, Giovanni dela Rosario, Alma del - PMSI Rosario, Hilario - PMSI Rosete, Dwight Benedict N. Roxas, Ronald L. Rubillos, Leonardo I. Ruzol, Hipolito S. Sabaupan, Sylvette G. Sabaybay, Jocelyn L. Saldua, Eder John Salonga, Lea Salud, Alann M. Salvacion, Dennis C. Salvador, Esther D. San Pablo, Ma.Cecilia A. Sante, Nova C. Santiago, Christopher G. Santiago, Edwin B. Santiago, Genine Santillan, Vivian M. Santos, Arwind Santos, Carmelita C. Santos, Danilo B. Santos, Dinia Santos, Glecerio Santos, Mary Lord Santuile, Aida M. Sapitula, Preciosa S. Sarita, Larry Sarmiento, Lina Q. Sayco, Marjorie Sido, Ma. Victoria P. Sin, Glenda S. Sinang, Rolando R. Sincioco, Mary Ann Siongco, Ma. Teresita Sioson, Annabelle P. Sioson, Yolanda J. Soliman, Norma P. Sopoco, Anna Marie M. Beginning Balance 7,220.00 5,366.56 7,060.00 1,942.77 15.00 7,060.00 5,000.00 10,000.00 1,532.89 853.81 (3,132.92) 8,288.00 772.50 10.00 100.00 (600.00) 200.00 4,555.00 6,834.00 572.50 50.00 (1,420.25) 9,159.80 300.00 551.63 (7,060.00) 14,120.00 (500.00) 8,000.00 (600.00) 300.00 23,364.75 666.00 (5,000.00) 50.00 (520.00) (3,000.00) 18.00 492.25 (981.25) 9,638.17 50.00 1,130.00 190.00 49,990.00 (1,391.64) 2,645.25 251.25 200.00 5,000.00 8,000.00 1,586.57 50.00 5,691.62 206.50 125.80 7,060.00 7,263.50 207.50 2,000.00 60.00 57,480.00 7,060.00 1,890.00 Additions Amount Deducted Amount Written-Off Current Non-Current 7,220.00 5,366.56 7,060.00 1,942.77 15.00 7,060.00 5,000.00 10,000.00 1,532.89 853.81 (3,132.92) 8,288.00 772.50 10.00 100.00 (600.00) 200.00 4,555.00 6,834.00 572.50 50.00 (1,420.25) 9,159.80 300.00 551.63 (7,060.00) 14,120.00 (500.00) 8,000.00 (600.00) 300.00 23,364.75 666.00 (5,000.00) 50.00 (520.00) (3,000.00) 18.00 90.00 (981.25) 9,638.17 50.00 767.54 190.00 49,990.00 (1,391.64) 2,645.25 251.25 200.00 5,000.00 8,000.00 1,586.57 50.00 938.37 206.50 125.80 7,060.00 7,263.50 207.50 2,000.00 60.00 57,480.00 7,060.00 1,890.00 Ending 7,220.00 5,366.56 7,060.00 1,942.77 15.00 7,060.00 5,000.00 10,000.00 1,532.89 853.81 (3,132.92) 8,288.00 772.50 10.00 100.00 (600.00) 200.00 4,555.00 6,834.00 572.50 50.00 (1,420.25) 9,159.80 300.00 551.63 (7,060.00) 14,120.00 (500.00) 8,000.00 (600.00) 300.00 23,364.75 666.00 (5,000.00) 50.00 (520.00) (3,000.00) 18.00 90.00 (981.25) 9,638.17 50.00 767.54 190.00 49,990.00 (1,391.64) 2,645.25 251.25 200.00 5,000.00 8,000.00 1,586.57 50.00 938.37 206.50 125.80 7,060.00 7,263.50 207.50 2,000.00 60.00 57,480.00 7,060.00 1,890.00

402.25

362.46

4,753.25

Deductions Name and Designation of Debtor Soria, Eulegio E. Sta. Ana, Noemi V. Tabaloc, Edgardo U. Jr. Tabaniag, Flordeliza Tablizo, Anne Margareth Tagle, Susan M. Tamay, Shariff M. Tamayao, Olivia E. Tan, Carolina M. - PMSI Tan, Cedrick - PMSI Tan, Derrick - PMSI Tan, Mary Joyce P.- PMSI Tan, Ryanne Tapalgo, Elyn M. Jr. Tecson, Rhenalyn Teoxon, Lucio Tibayan, Florencia C. Tiburcio, Jaime, Jr. Timbugan, Josefina - PMSI Tirazona, Renato A. Togado, Illumar I. Tomas, Eden A. Torres, Maruja T. Trinidad, Alfredo D. Trinidad, Josefina Tuazon, Nino M. Unidad, Kim Ryan Ureta, Peter Usita, Laarni P. Uy, Moira B. Uyson, Leslie Marie C. Valdez, Ferdinand Valdez, Gloria Valencia, Jean Pauline S. Valencia, Ma. Theresa L. Valenzuela, Edwin E. Valmonte, Alejandra Monica Varilla, Edglyn G. Vera, Antonio Vera, Jose Rizalito c. Vera, Sebastian Verances, Ma. Laline V. Vergara, Flocerfida - PMSI Vergara, Melchor - PMSI Vergara, Oliver Francis - PMSI Vergara, Regidor - PMSI Vergara, Romeo - PMSI Verzosa, Bobby Vibar, Enrico B. Vicera, Desmond M. Beginning Balance 1,000.00 311.00 51.58 63.75 206.50 5,051.41 5,000.00 4,996.60 7,060.00 (4,875.00) 15,187.00 7,060.00 117.50 (2,657.50) 311.00 379.82 305.00 2,007.50 7,060.00 1,992.92 4,000.00 943.00 206.50 329.07 170.00 356.25 100.00 9,397.10 23,069.00 4,000.00 15,372.00 1,000.00 1,237.50 (5,198.00) 530.00 300.00 205.25 5,140.61 0.03 (5,400.00) (2,300.00) (841.50) (35,220.00) (7,060.00) (7,060.00) (7,060.00) 21,180.00 100.00 7,200.00 200.00 Additions Amount Deducted Amount Written-Off Current Non-Current 1,000.00 311.00 51.58 63.75 206.50 5,051.41 5,000.00 4,996.60 7,060.00 (4,875.00) 15,187.00 7,060.00 117.50 (2,657.50) 311.00 379.82 305.00 2,007.50 7,060.00 1,992.92 4,000.00 943.00 206.50 329.07 170.00 356.25 100.00 9,397.10 23,069.00 4,000.00 9,258.08 1,000.00 1,237.50 (5,198.00) 530.00 300.00 205.25 5,140.61 0.03 (5,400.00) (2,300.00) (841.50) (35,220.00) (7,060.00) (7,060.00) (7,060.00) 21,180.00 100.00 7,200.00 200.00 Ending 1,000.00 311.00 51.58 63.75 206.50 5,051.41 5,000.00 4,996.60 7,060.00 (4,875.00) 15,187.00 7,060.00 117.50 (2,657.50) 311.00 379.82 305.00 2,007.50 7,060.00 1,992.92 4,000.00 943.00 206.50 329.07 170.00 356.25 100.00 9,397.10 23,069.00 4,000.00 9,258.08 1,000.00 1,237.50 (5,198.00) 530.00 300.00 205.25 5,140.61 0.03 (5,400.00) (2,300.00) (841.50) (35,220.00) (7,060.00) (7,060.00) (7,060.00) 21,180.00 100.00 7,200.00 200.00

6,113.92

Deductions Name and Designation of Debtor Victoria, Michael S. Villaceran, Eugenio V. Villamiel, Carminda Villanueva, Ace R. Villanueva, Jonas V. Villanueva, Ma. Concepcion Villapando, Marimel A. Villar, Gerald Vivas, Cherry Mae Woolsey, Nida B. Yabis, Geraldine Yang, Gloria Yanzon, Gina Yap, Caridad P. Yatco, Ma. Carmen S. Zaldivar, Ramil P. Zulueta, Michael R. P FACULTY ADVANCES Aguilos, Susan S. Alona, Elizabeth V. Altares, Priscilla S. Anastacio, Nanette v. Ansano, Bela R. Austria, Rex S. Avengoza, Rosalie J. Badiola, Jose Luisito V. Bautista, Mary Grace S. Cano, Charito F. Castro, Lawrence Christopher Cruz, Sandra Lyn E. Dimalibot, Martina Geraldine Q. Estacio, Ma. Vivian G. Gariguez, Mariflor N. Garin, May C. Isip, Amando F. Javier, Nancy Joan M. Jose, Franco C. Malay, Ernesto B. Martinez, Zenaida S. Minas, Geraldine C. Narciso, Wilfrida B. Naui, Elizabeth S. Pacot, Marilou M. Permalino, Albert Emmanuel S. Sagarino, Gavino N. Salcedo, Liezel Donatila M Salunga, Loida P. Salvado, Rowena E. Santos, Buenvenida Santos, Katherine Vera A. Santos, Melody Christian R. Simo, Rickson Jay Tia, Christopher B. Trinidad, Josefina M. Villanueva, Rosalie R. Villegas, Ma. Marissa M. Villorente, Elizabeth F. Vinluan, Renato A. Total P 2,983.13 (5,295.67) (37.62) (5,295.67) 11,590.42 (2,160.00) (6,518.64) (0.52) (5,295.67) 847.27 1,765.22 44,290.05 1,926.98 3,832.70 10,591.34 5,534.22 (1,323.91) 5,295.67 (6,619.59) 20,910.00 (7,943.50) (2,100.00) 5,295.67 (50.00) (7,943.50) 7,060.89 (5,295.67) 17,190.24 14,960.54 22,160.26 3,971.75 (32.50) 3,909.51 (21,182.72) (0.03) 1,690.82 (10,591.34) (10,591.34) 1,323.91 2,028.62 2,916,856.23 1,269,875.56 P 2,983.13 (5,295.67) (37.62) (5,295.67) 11,590.42 (2,160.00) (6,518.64) (0.52) (5,295.67) 847.27 1,765.22 44,290.05 1,926.98 3,832.70 10,591.34 5,534.22 (1,323.91) 5,295.67 (6,619.59) 20,910.00 (7,943.50) (2,100.00) 5,295.67 (50.00) (7,943.50) 7,060.89 (5,295.67) 17,190.24 14,960.54 22,160.26 3,971.75 (32.50) 3,909.51 (21,182.72) (0.03) 1,690.82 (10,591.34) (10,591.34) 1,323.91 2,028.62 1,646,980.67 2,983.13 (5,295.67) (37.62) (5,295.67) 11,590.42 (2,160.00) (6,518.64) (0.52) (5,295.67) 847.27 1,765.22 44,290.05 1,926.98 3,832.70 10,591.34 5,534.22 (1,323.91) 5,295.67 (6,619.59) 20,910.00 (7,943.50) (2,100.00) 5,295.67 (50.00) (7,943.50) 7,060.89 (5,295.67) 17,190.24 14,960.54 22,160.26 3,971.75 (32.50) 3,909.51 (21,182.72) (0.03) 1,690.82 (10,591.34) (10,591.34) 1,323.91 2,028.62 1,646,980.67 Beginning Balance (640.00) (18,230.98) (29,288.90) 26.98 (13,073.00) 5,000.00 200.00 7,060.00 300.00 278.00 97.50 45,000.00 500.00 (4,841.00) 29,320.00 5,000.00 7,000.00 2,825,974.91 Additions Amount Deducted 7,060.00 Amount Written-Off Current Non-Current (640.00) (25,290.98) (29,288.90) 26.98 (13,073.00) 5,000.00 200.00 7,060.00 300.00 278.00 97.50 45,000.00 500.00 (4,841.00) 29,320.00 5,000.00 7,000.00 1,556,099.35 Ending (640.00) (25,290.98) (29,288.90) 26.98 (13,073.00) 5,000.00 200.00 7,060.00 300.00 278.00 97.50 45,000.00 500.00 (4,841.00) 29,320.00 5,000.00 7,000.00 1,556,099.35

-

1,269,875.56

Deductions Name and Designation of Debtor Ampatin, Estrella V. Cabasada, Albert R. III Caratao, Jinky Rosario Cruz, Reynaldo J. Diwa, Alvin S. Frades, Francisca B. Garin, May C. Molina, Mark Oliver P. Paraiso, Lourdes Oliva Pizaro, Arthur Sarabia, Juliet S. Soria, Eulegio Tolentino, Rosula R. Villanueva, Romulo Villar, Gerald Yang, Gloria G. Beginning Balance (560.00) 26,099.35 6,800.00 (5,000.00) 31,783.91 (451.32) 46,130.23 (5,232.06) 0.20 1,200.00 4,755.00 1,777.00 8,646.70 5,212.00 20,388.77 11,760.00 Additions Amount Deducted Amount Written-Off Current Non-Current (560.00) 26,099.35 6,800.00 (5,000.00) 31,783.91 (451.32) 46,130.23 (5,232.06) 0.20 1,200.00 4,755.00 1,777.00 8,646.70 5,212.00 20,354.47 11,760.00 Ending (560.00) 26,099.35 6,800.00 (5,000.00) 31,783.91 (451.32) 46,130.23 (5,232.06) 0.20 1,200.00 4,755.00 1,777.00 8,646.70 5,212.00 20,354.47 11,760.00

34.30

TOTAL

P

3,070,166.01

-

1,269,909.86

P

-

1,800,256.15

1,800,256.15

JANUARY 2008 - MARCH 2010

Abala, Genelin P Abanco, Nini Paz M. Abella, Bernard Adil, Mary Antoinette Agnes, Reynold D. Agudong, Julito A. Aguila, Fitzgerald Aguilar, Manuel P. Aguilar, Sarah Joy A. Agustin, Ma. Theresa A. Ahmadzadeh, Teresita Alagao, Ma. Cristina T. Alarde, Crispulo, Jr. Alcoberes, Philip Jay N. Alcoriza, Jennifer M. Aldeguer, Christine Carpio Alimuin, Sylvia A. Alvarez, Alfredo R. Andrada, Gaylene H. Angel, Heherson M. Angeles, Lemuel Anido, Cecilia I. An Lim, Jaime L. Apolonio, Jerry D. Arabia, Julieta S. Arago, Teodulfo A. Areola, Vina Arquiza, Glenda Arriola, Eric John C. Asis, Amelia B. Atanacio, Heidi C. Atanque, Aurora L. Ayson, Paulino Ayson, Rosalino P. Baccay, Yolanda A. Badiola, Jose Luisito V. Baello, Christine N.

155.00 (155.00) 3.88 200.00 30,128.00 1,480.00 11,000.00 1,500.00 3,823.50 19,650.00 10,792.75 1,094.45 550.00 76,565.00 25,128.00 1,895.09 1,500.00 10,465.05 810.62 367.01 60,695.85

P

155.00 (155.00) 3.88 200.00 5,000.00 1,480.00 9,104.91 3,823.50 19,650.00 327.70 994.45 366.67 16,529.15 (1,000.00) (600.00)

710.62 183.68 660.00 (1,000.00) (600.00) 1,350.12 (733.40)

4,386.67 119,500.00 16,629.90 7,700.00 73,000.00 (200.00)

4,140.00 8,682.00 20,588.20 1,147.00 3,243.00 600.00 1,009,285.90 88,182.00 431.50 92,992.80 2,253.40 179,724.25 200.00 5,064.50 3,467.00 32.00 632.75 12,757.30 8,611.05 22,271.00

1,780.00 6,566.12 18,961.45 947.00 281.25 100.00 5,823.82 176,682.00 281.50 83,336.90 1,178.00 199,130.25 200.00 64.50 18,632.00 15,956.28 27,057.55 18,610.65

2,360.00 3,466.00 1,626.75 (533.40) 2,961.75 500.00 1,007,848.75 31,000.00 150.00 26,285.80 1,075.40 7,700.00 53,594.00 (200.00) 5,000.00 3,467.00 (3,810.60) 632.75 6,828.65 1,553.50 200.00 3,660.35

14,789.40 10,027.63 20,000.00 200.00

155.00 (155.00) 3.88 200.00 5,000.00 1,480.00 9,104.91 3,823.50 19,650.00 327.70 994.45 366.67 16,529.15 (1,000.00) (600.00) 2,360.00 3,466.00 1,626.75 (533.40) 2,961.75 500.00 1,007,848.75 31,000.00 150.00 26,285.80 1,075.40 7,700.00 53,594.00 (200.00) 5,000.00 3,467.00 (3,810.60) 632.75 6,828.65 1,553.50 200.00 3,660.35

Deductions Name and Designation of Debtor Baja, Lauro Balaoro, Maria Theresa Balarosan, Edna G. Balita, Paulita C. Bantayan, Maria Emilia R. Baquiran, Leonidez Barro, Liana M. Barroga, Junalyn Batan, Ericson S. Batoon, Allen Bautista, Juan Andres Baylon, Milagros D. Bejo, Noel B. Belardo, Amy G. Belaya, Vina Grace C. Belleza, Asuncion L. Bello, Yolanda L. Beltran, Edna M. Beltran, Manuel D. Belza, Mercedes A. Bengo, Manuelito V. Bernado, Norma V. Bernardo, Rodrigo G. Bilan, Jeanette L. Bingculado, Roger B. Bisco, Melanie C. Bolo, Benjamin A. Botaslac, Benjamin D. Brillo, Eva B. Brillon, Cherish Aileen A. Buen, Jennifer T. Buenafe, Ma. Belinda G. Buendia, Ma. Esperanza Bueno, Marivie Buot, Joseph Buquid, Apolonio A. Burac, Joseph T. Bustamante, Maria Christine H. Caagbay, Elpidio Z. Cabaltica, Leilani A. Cabasada, Albert R. III Cabilto, Gerardo P. Cabinta, Ma. Dolores B. Cabrera, Alicia M. Cabrera, Roberlyn V. Cada, Leonardo F. Cajucom, Cherry S. Cajucom, Marie Christine B. Camaclang, Merlita J. Camana, Love V. Campomanes, Carolina Canare, Sabino C. Cando, Cromwell N. Canilao, Fe V. Canosa, Michelle Cao, Marilou F Capacio, Glenn Capili, Leslie Ann V. Capili, Regina R. Carino, Raquel G. Carlos, Salome S. Carpio, Miguel M. Carpio, Rustica Castillo, Carolina Beginning Balance (200.00) 2,193.34 34,708.73 8,350.00 200.00 145.00 1,516.60 850.00 10,572.00 297.50 4,604.50 23,665.50 4,412.70 93,547.74 8,492.00 37,985.00 550.00 62,089.09 36,653.99 13,400.90 6,999.00 1,326.18 38,000.00 10,000.00 69,121.09 27,959.00 100,000.00 6,948.00 1,773.76 20,000.00 370.75 600.00 18,653.00 32,215.50 49,649.00 71,000.00 145,183.50 24.00 12,000.00 65,312.00 7,100.65 36,000.00 13,650.66 14,590.00 63,534.00 27,888.25 1.00 36,696.85 8,970.00 20,000.00 18,925.75 100.00 6,623.85 4,598.00 498.50 53,124.50 45,937.00 18,153.00 8,331.80 41,354.00 58,000.00 163,721.42 24.00 21,800.00 37,812.00 4,212.00 4,000.00 12,463.76 11,327.92 46,103.62 26,775.75 6.00 37,000.00 105,507.92 18,425.75 1,920.00 3,464.87 498.50 204.50 34,937.00 500.00 23,883.70 8,895.00 13,000.00 38,848.75 (12,300.00) 1,000.00 27,500.00 2,888.65 32,000.00 1,186.90 7,648.75 850.00 24,000.00 3,787.50 (5.00) (375.00) 3,696.85 7,848.75 20,000.00 500.00 (5,000.00) (1,820.00) 2,740.85 4,598.00 (850.00) 52,920.00 1,788.00 35,000.00 10.00 297.00 634.50 1,750.00 2,295.90 96,900.74 5,078.75 32,985.00 600.00 64,257.91 32,126.84 8,702.35 10,562.00 0.50 3,970.00 23,665.50 254.40 37,458.00 3,413.25 12,500.00 (50.00) 12,414.98 4,527.15 4,698.55 6,999.00 1,326.18 18,000.00 10,000.00 6,666.68 25,000.00 6,666.67 1,919.00 1,693.75 20,000.00 370.75 600.00 Additions 996.25 100.00 28,970.00 46,000.00 Amount Deducted 100.00 13,314.59 58,921.96 2,639.92 10,175.02 Amount Written-Off Current 996.25 17,848.75 21,786.77 5,710.08 200.00 920.00 145.00 1,516.60 850.00 Non-Current (200.00) Ending 996.25 (200.00) 17,848.75 21,786.77 5,710.08 200.00 920.00 145.00 1,516.60 850.00 10,562.00 0.50 3,970.00 23,665.50 254.40 37,458.00 3,413.25 12,500.00 (50.00) 12,414.98 4,527.15 4,698.55 28,411.00 1,326.18 18,000.00 10,000.00 6,666.68 25,000.00 6,666.67 (25.00) 1,919.00 1,693.75 20,000.00 370.75 600.00 500.00 23,883.70 8,895.00 13,000.00 38,848.75 (12,300.00) 1,000.00 27,500.00 2,888.65 32,000.00 1,186.90 7,648.75 850.00 24,000.00 3,787.50 (5.00) (375.00) 3,696.85 7,848.75 20,000.00 500.00 (5,000.00) (1,820.00) 2,740.85 4,598.00 (850.00) 52,920.00 1,788.00 35,000.00

11,095.02

1,750.00 (1,862.40) 40,811.00 7,500.00 14,583.80

21,412.00 2,500.00

21,412.00

22,500.00 62,454.41 2,959.00 93,333.33 5,029.00 80.01

(25.00)

(25.00)

600.00 57,386.67 (12,300.00) 10,800.00

4,386.67 850.00 6,569.62 2,675.00 (375.00) 4,000.00 104,386.67

(5,000.00) (418.13) (850.00) 1,788.00 24,000.00

Deductions Name and Designation of Debtor Castro, Joeven R. Casuco, Leonida S. Cayetano, Lovella M. Chastein, Cherry R. Chua, Wilson S. Ciubal, Willie Y. Corpuz, Cristina R. Cotorno, Lorine B. Cruz, Benjamin F. Cruz, Christybel O. Cruz, Noel L. Cruz, Rebecca S. Cuibillas, Jorge P. Culala, Harold John D. Dacayanan, Marites G. Daguman, Ian Dalton, Juanita Damasco, Charmaine Gay Davalos, Zenaida R. David, Melvira C. Decena, May Celine Defino, Lorna M. Destura, Blanca Diamante, Fernan M. Diaz, Joel Dimaano, Jessalyn Dimalibot, Ma. Martina Geraldine Diorico, Marites C. Dios, Rolando Gerald Dizon, Kenneth Earl I. Doble, Jon Derek Doctolero, Priscila L. Domingo, Ernesto E. Dominguez, Rex S. Dones, Irene P. Dublin, Marietta T. Ducut, Mirela G. Dulalia, Nelson M. Durban, Joel M. Dy Kam, Felicidad Echauz, Lydia B. Eleazar, Glenda C. Enriquez, Rex Cezar P. Ermitano, Nolivienne C. Escobia, Irma L. Escobia, Jaime T. Escosia, Aurora A. Esguerra, Anna Leah R. Esguerra, Marissa B.. Espinosa, William V. Espiritu, Elizabeth O. Estacio, Ma. Vivian G. Estrella, Luisito P. Evangelista, Erika Evangelista, Rey M. Fajardo, Rolando Ferareza, Rimar Fernandez, Rosana S. Fernando, Gerry V. Fernando, Rogelio E. Fiesta, Erlinda P. Flora, Dolores Flores, Floriza Ann Flores, Ma.Cecilia D. Beginning Balance 5,158.79 (14,614.40) 6,000.00 10,000.00 3,150.00 Additions 8,970.02 35,002.50 25,000.00 5,000.00 136.00 650.00 13,600.00 25,000.00 45,000.00 46,956.47 30,992.50 8,464.50 30,000.75 5,014.50 617.50 1,022.00 250.00 (335.00) 272.00 10,749.58 850.00 15,000.00 200.00 24,487.60 200.00 200.00 52,800.00 737.25 200.00 39,100.00 1,344.00 1,756.15 30,342.20 24,000.00 664.50 63,439.16 28,844.00 68.00 49,398.10 1,450.00 966.60 1,025.00 50,000.00 43,967.11 975.00 16,250.01 20,970.00 27,096.31 563.00 62,420.00 4,114.70 19,499.74 22,400.00 62,706.25 2,150.00 6,366.60 51,540.47 1,000.00 3,000.00 8,388.67 28,800.00 72.75 200.00 0.50 (100.00) 1,688.15 18,108.70 (1,450.00) (966.60) (1,025.00) 57,549.35 35,404.31 (200.00) (237.50) 1,250.00 2,330.00 7,548.50 200.00 203.00 56,420.00 11,868.90 34,408.50 17,500.00 17,375.00 92,850.60 (360.00) (6,000.00) 9,291.54 28,682.09 800.00 17,375.00 58,453.54 (2,150.00) 250.00 (2,500.00) 32,851.54 4,000.00 52,913.20 2,385.66 18,000.00 100.00 15,812.50 8,675.10 200.00 200.00 15,000.00 200.00 492.00 74,690.25 26,430.20 222.00 51,638.43 5,672.00 270.00 33,801.40 20,758.20 850.00 Amount Deducted 6,280.06 8,002.50 29,681.81 4,450.00 3,886.00 150.00 8,800.00 30,000.00 40,500.00 66,796.13 992.50 5,043.75 21,000.75 5,014.50 Amount Written-Off Current 7,848.75 12,385.60 1,318.19 550.00 (600.00) 500.00 4,800.00 (5,000.00) 4,500.00 594.25 30,000.00 3,420.75 9,000.00 (237.04) 650.00 617.50 (617.50) 250.00 (335.00) 272.00 Non-Current Ending 7,848.75 12,385.60 1,318.19 10,000.00 550.00 (600.00) 500.00 4,800.00 (5,000.00) 4,500.00 594.25 30,000.00 3,420.75 9,000.00 (237.04) 650.00 617.50 (617.50) 250.00 (335.00) 272.00 270.00 33,801.40 20,758.20 850.00 15,000.00 200.00 8,675.10 200.00 200.00 28,800.00 72.75 200.00 0.50 (100.00) 1,688.15 18,108.70 (1,450.00) (966.60) (1,025.00) 57,549.35 35,404.31 (200.00) (237.50) 1,250.00 2,330.00 7,548.50 200.00 (360.00) (6,000.00) 9,291.54 28,682.09 800.00 17,375.00 58,453.54 (2,150.00) 250.00 (2,500.00) 32,851.54 4,000.00 52,913.20 2,385.66 18,000.00 100.00

10,000.00

20,433.91

(237.04) 650.00

1,639.50

24,339.66 27,400.00 37,164.60

50,000.00 34,386.67 (200.00) (237.50)

57,549.35 44,984.75 975.00 17,500.01 23,300.00 28,775.75

5,869.06 200.00

1,537.34 13,773.33 5,700.00 28,309.19 250.00 (2,500.00) 20,000.00

6,366.60 64,392.01 5,000.00 55,913.20 18,000.00

10,774.33 100.00

Deductions Name and Designation of Debtor Flores, Miguela Trinidad Flores, Roberto C. Flores, Teresita T. Foronda, John Clarence Fortaleza, Ramon M. Frades, Francisca B. Fronda, Adelaida C. Galo, Crispin L. Garcia, Dolores A. Garcia, Miriam Garcia, Mylene M. Garcia, Myllah D. Garcia, Severino M. Garrido, Elma C. Gaspillo, Rudy M> Gella, Delia D. Gella, Frederick S. Gemzon, Elena F. Gerardo, Elsa F. Gervacio, Ma. Cristina SJ. Gilera, Enrico G. Golloso, Helen E. Gonzales, Emmanuel S. Gorod, Flordeliza N. Grasparil, James Andrew Guarin, Ellen G. Gubio, James B. Guevarra, Dorvin H. Guevarra, Ma. Theresa M. Guevarra, Remedios P. Gurrea, Ruby Gusi, Rechilda D. Gutierrez, Lucita A. Guzman, Barbara Michelle Guzman, Guillerma M. Guzman, Ma. Corazon A. Hatt, Cielito Sanvictores Hernandez, Jan Joseph S. Hizon, Irma L. Ibalio, Dyann A. Ignacio, Lourdes D. Iguas, Jose A. Inciong, Cherry Wyne Indico, Julie Ann Ireneo, Elsa A. Isidro, Teresita L. Jamisod, Rafael Jamon, Romano M. Janagap, Fe Q. Jarlos, Anna Liza Jauco, Magdalena Javier, Mary Jacquelou Jerusalem, Violeta L. Jesus, Angelita SD. Jimenez, Arsenia S. Jintalan, Elma C. Joloya, Ma. Aura Christine Jose, Angelina P. Julio, Beata R. Junio, Nenitha L. Kenny Isabel Knuttel, Jens Ko, Robert H. Kuan, Robert Beginning Balance 43,333.33 Additions 39,000.00 140,000.00 3,090.50 1,000.00 2,011.35 38,990.25 5,273.75 6,550.25 21,392.25 20,035.00 7,615.90 206,974.75 5,775.45 20,621.55 Amount Deducted 72,750.00 56,000.00 66.50 Amount Written-Off Current 84,000.00 3,024.00 1,000.00 2,011.35 15,450.00 4,301.75 6,550.25 9,677.25 2,000.00 39.00 100,000.00 5,774.95 20,621.55 200.00 (2,000.10) 9,145.00 5,383.00 100,855.50 629.25 66,630.92 (1,575.00) 400.00 2,400.00 (425.00) 200.00 821.40 4,951.58 975.00 5,383.00 79,171.24 5,000.00 57,186.52 7,848.75 (975.00) (240.00) 90,000.00 (500.01) 629.25 9,444.40 (1,575.00) 400.00 24,702.60 32,034.93 31,817.50 50,020.00 11,134.05 29,080.50 910.50 31,963.00 21,503.44 979.50 6,586.00 7,295.80 35,000.00 9,486.75 7,402.00 20,000.00 62,890.76 600.00 52,274.90 32,070.00 7,303.10 118,694.50 58,964.58 28,150.00 42,290.00 361.00 50,000.00 16,897.45 125.00 7,948.30 192.00 50,000.00 14,254.20 18,171.74 28,647.80 25,020.00 4,609.90 28,172.50 933.50 4,963.00 22,503.44 14,065.85 6,386.00 7,295.00 50,991.57 15,800.05 6,699.00 12,848.40 13,863.19 3,169.70 25,000.00 7,345.55 908.00 (23.00) 27,000.00 (1,000.00) (975.00) 1,186.45 200.00 0.80 15,000.00 4,794.40 1,180.00 348.50 26,872.99 20,000.00 40,258.77 600.00 200.00 37,921.65 12,936.58 3,182.75 173,801.26 45,381.25 18,150.00 34,000.00 234.00 341,383.87 1,618.50 14,353.25 22,788.75 4,120.35 200.00 (9,369.48) 17,970.00 10,000.00 8,290.00 127.00 50,000.00 15,278.95 125.00 50,000.00 62.00 543,032.13 7,948.30 130.00 50,000.00 Non-Current 9,583.33 Ending 9,583.33 84,000.00 3,024.00 1,000.00 2,011.35 15,450.00 3,301.75 6,550.25 100.00 9,677.25 2,000.00 39.00 100,000.00 5,774.95 20,621.55 200.00 (2,000.10) 7,848.75 (975.00) (240.00) 90,000.00 (500.01) 629.25 9,444.40 (1,575.00) 400.00 12,848.40 13,863.19 2,744.70 25,000.00 200.00 7,345.55 908.00 (23.00) 27,000.00 (1,000.00) (975.00) 1,186.45 200.00 0.80 15,000.00 4,794.40 1,180.00 348.50 20,000.00 40,258.77 600.00 200.00 14,353.25 22,788.75 4,120.35 200.00 (9,369.48) 17,970.00 10,000.00 8,290.00 127.00 50,000.00 15,278.95 125.00 50,000.00 7,948.30 130.00 50,000.00

37,482.00 (1,000.00) 100.00 9,038.12

61,022.25 972.00

(1,000.00) 100.00

66,664.00

20,753.12 18,035.00 7,576.90 173,638.75 0.50

200.00 (2,000.10) 3,655.33 (240.00) 68,315.74 4,499.99

(425.00) 200.00

12,111.35 1,186.45

30,991.57 11,107.70 477.00 348.50 4,241.00 200.00 3,655.33 200.00 45,737.28 4,386.67

341,383.87

50,000.00

543,032.13

Deductions Name and Designation of Debtor Lacanilao, Gary Ladera, Renville M. Lajara, Galilea R. Lakian, Teodosio Lamorena, Juditha M. Lansang, Brenda Lapastora, Milagros Lauro, Jocelyn P. Laxamana, Rachel D. Lee, Nestor Leon, Angelito Y. Leon, Emma Rose H. Leon, Jocelyn E. Leonardo, Marietta Leonardo, Violeta M. Lepon, Ma. Luisa M. Letrero, Bernard Lim, Royce Randall Limon, Miguel Antonio P. Lindo, Alicia C. Lojo, Joanne Marie Lopez, Antonio C. Lopez, Mercedita P. Lopez, Ricardo S. Lopez, Ruelda A. Loyola, Voltaire Lumacad, Fernando B. Luyun, Teofilo P. Jr. Mabborang, Mishel T. Macalintal, Connie SJ. Macapagal, Arnualdo B. Macaraig, Melinda Macasaet, Grace Minerva Madria, Emenvenciano Magayaga, Lea Q. Magbuhat, Frances Ann Magmanlac, Mark Roland Mahilum, Rosalinda S. Malcampo, Agnes C. Maliwat, Herminia I. Mamaid, Melanie P. Manalansan, Paolo F. Manalo, Evelyn P. Manalo, Marilou Manaois, Mario B. Manguerra, Laarni C. Marcelino, Ariel Christopher Marcelo, Gerry A. Marcial, Maridel S. Mariano, Maria Lourdes A. Maristela, Teresita Martin, Wilhelmina E. Mateo, Jacinto C. Jr. Mazo, Flaviano S. Medel, Mervin Medina, Buenaventura Jr. Medina, Joy E. Melchor, Elizabeth P. Mendoza, Cecilia H. Mendoza, Gloria A. Mendoza, Simplica A. Menez, Karren G. Menorca, Emmanuel S. Mercado, Valerie Grace P. Beginning Balance (38.00) (1,650.00) 42,000.00 650.00 6,665.00 9,799.00 4,386.67 3,741.00 2,193.34 Additions 375.00 28,136.75 91,256.09 192,012.28 116,377.52 76,345.85 38,297.00 23,380.00 1,483.25 53,970.00 23,674.75 10,730.00 20,515.00 135,299.50 5,000.00 162.75 Amount Deducted 23,000.00 80,426.19 167,321.10 116,827.52 69,138.50 39,521.88 21,042.00 4,617.67 45,000.00 41,265.75 3,930.59 22,285.00 110,299.50 8,250.00 62.75 Amount Written-Off Current 375.00 5,098.75 10,829.90 66,691.18 200.00 13,872.35 8,574.12 2,338.00 1,252.25 8,970.00 (13,850.00) 8,992.75 (1,770.00) 25,000.00 (3,000.00) 1,650.00 200.00 100.00 26,947.90 20,000.00 20,512.15 46,239.00 19,936.66 5,000.00 50.33 9,570.00 6,345.01 240,847.74 11,755.30 5,092.75 1,200.00 15,000.00 20,000.00 200.00 112,145.31 6,250.00 35,085.00 103,224.00 39,684.00 10,063.00 10,000.00 15,000.00 2,104.20 5,000.00 19,669.00 8,257.00 671.00 9,196.00 2,901.25 35,024.25 13,326.75 200.00 43,193.25 1,336.50 7,447.25 12,203.00 34,738.00 27,642.00 30,000.00 25,539.56 110,110.37 39,317.33 12,713.00 9,545.44 105,258.94 366.67 3,600.00 10,000.00 15,000.00 2,104.20 1,000.00 1,966.90 7,170.62 1,496.25 9,196.00 215.00 1,406.25 30,024.25 10,867.50 1,495.00 5,000.00 12,241.02 200.00 1,050.00 42,483.73 724.50 2,419.25 25,702.68 39,740.00 13,300.76 1,309.52 612.00 200.00 5,028.00 (13,499.68) 998.00 14,341.24 30,000.00 37,629.95 18,432.12 17,947.00 32,828.42 4,941.95 20,000.00 28,324.65 28,292.00 3,000.04 5,000.00 50.33 7,848.75 1,345.00 50,010.24 2,760.80 35.75 650.00 800.00 400.00 15,000.00 20,000.00 200.00 72.00 (32,539.00) 200.00 5,000.01 236,788.00 8,994.50 6,101.00 Non-Current Ending 375.00 5,098.75 10,829.90 (1,650.00) 66,691.18 200.00 13,872.35 8,574.12 2,338.00 1,252.25 8,970.00 (13,850.00) 8,992.75 (1,770.00) 25,000.00 (3,000.00) 1,650.00 200.00 100.00 4,941.95 20,000.00 28,324.65 28,292.00 3,000.04 5,000.00 72.00 (32,488.67) 7,848.75 200.00 1,345.00 50,010.24 2,760.80 35.75 650.00 400.00 15,000.00 20,000.00 200.00 9,545.44 105,258.94 366.67 3,600.00 10,000.00 15,000.00 2,104.20 1,000.00 1,966.90 7,170.62 1,496.25 9,196.00 215.00 1,495.00 5,000.00 12,241.02 200.00 1,050.00 1,309.52 612.00 200.00 5,028.00 (13,499.68) 998.00 14,341.24 30,000.00

(1,650.00)

250.00 1,550.00 200.00 100.00 15,624.00 26,244.62 15,891.80 72.00 (32,539.00) 8,446.94 200.00 45,950.50 1,044.00 650.00

10,168.19

1,000.00 4,386.67 14,444.51 215.00

5,000.00 17,702.10 5,473.05 13,619.26

9,781.77 1,050.00 600.00 200.00

6,000.00

Deductions Name and Designation of Debtor Mesina, Karen T. Miguel, Emmanuel C. Mina, Enrique N. Minas, Geraldine C. Mintu, Cynthia B. Mitra, Melvin P. Molina, Ma. Olivia G. Molina, Mark Oliver P. Monderin, Victor C. Monfero, Rowena A. Montano, Moses M. Montinola, Aurelio R. III Montinola, Gianna R. Montinola, Lourdes R. Morilla, Toriana A. Mostajo, Esmeralda D. Nagal, Glenn Z. Nagtalon, Leo Angelo Najjar, Mary Chastine T. Naui, Elizabeth S. Navarro, Lilibeth C. Nebril, Jonathan A. Nicdao, Lazaro B. Nicer, Joselito C. Nicolas, Crispinita Nob, Rene M. Norcio, Glen R. Noriega, Mariwilda Nuestro, Sarah A. Nulla, Mila R. Oaferina, Gemmalyn A. Olivares, Joh Paul T. Omampo, Rolando B. Ondevilla, Miel Kristian Orias, Ronito B. Orolfo, Teodora C. Orozco, Glorina P. Pacquing, Elizabeth P. Padilla, Leo A. Padual, Jennifer C. Pagdilao, Menchie C. Paguirigan, Viviana Pahutan, Ludivinia M. Pal, Salvacion A. Palaje, Joseph M. Palencia, Marjueve M. Palis, Fernando F. Palparan, Karoline L. Panesa, Isabelita A. Panganiban, Don Brendo Pantas, Felix L. Jr. Panzo, Salome V. Paraiso, Jesus R. Paras, Renato Pascua, Jennifer J. Pascual, Danilo S. Pataunia, Ma. Cecilia C. Paz, Rosalinda Z. Pearson, Lou Dominic Pelaez, Felimon P. Pening, Teodoro Perez, Hector Perez, Winnie E. Pineda, Rodolfo G. Beginning Balance (4,000.00) Additions 200.00 293.50 9,316.00 2,110.50 552.35 4,386.67 6,000.00 941.67 274,838.73 387,795.94 1,800,488.76 850.00 12,000.00 0.33 640.00 3,130.80 (93.75) 200.00 5,000.00 8,758.80 22,272.72 190.00 (1,800.00) 11,616.76 150.00 43,857.00 (1,000.04) 59,120.00 8,970.00 2,577.00 36,149.75 50,000.00 50,000.00 50,000.00 53,998.00 200,000.00 33,752.90 272.00 2,025.00 1,114.70 61,754.50 49,120.00 5,507.92 321.50 38,404.00 274,838.73 387,795.94 1,800,488.76 55,438.75 198,000.66 27,364.40 272.00 2,118.00 8,762.80 55,608.72 10,000.00 7,848.75 2,255.50 3,745.75 941.67 50,000.00 50,000.00 50,000.00 850.00 10,559.25 1,999.67 640.00 9,519.30 (93.75) 200.00 4,907.00 1,110.70 28,418.50 190.00 (1,800.00) 644.00 40,448.13 118,933.95 9,451.25 78,200.00 27,278.00 110.00 713.01 60,763.35 14,366.50 19,561.50 30,000.00 100.00 1,443.25 3.25 6,439.65 800.00 8,688.45 35,569.51 3,892.55 20,000.00 22,132.75 1,087.50 65,430.95 50,000.00 650.00 343.00 28,521.75 57,663.75 7,344.00 70,342.05 43,851.25 37,954.25 744.00 28,733.16 98,974.00 10,382.55 57,200.00 1,010.00 2,713.01 66,913.00 11,777.55 5,000.00 (100.00) 23,331.73 150.00 63,816.95 (1,931.34) 21,000.00 27,278.00 3,600.00 2,000.00 5,034.35 14,366.50 12,170.62 348.50 25,000.00 100.00 1,443.25 (1,000.00) 1,433.65 400.00 (1,000.00) 857.15 30,000.00 1,135.05 20,000.00 15,697.50 725.00 49,823.70 50,000.00 650.00 Amount Deducted Amount Written-Off Current 200.00 93.50 (2,972.00) 310.50 552.35 Non-Current (4,000.00) Ending (4,000.00) 200.00 93.50 (2,972.00) 310.50 552.35 10,000.00 7,848.75 2,255.50 3,745.75 941.67 50,000.00 50,000.00 50,000.00 850.00 10,559.25 1,999.67 640.00 9,519.30 (93.75) 200.00 4,907.00 1,110.70 28,418.50 190.00 (1,800.00) (100.00) 23,331.73 150.00 63,816.95 (1,931.34) 21,000.00 27,278.00 3,600.00 2,000.00 5,034.35 14,366.50 12,170.62 348.50 25,000.00 100.00 1,443.25 (1,000.00) 1,433.65 400.00 (1,000.00) 857.15 30,000.00 1,135.05 20,000.00 15,697.50 725.00 49,823.70 50,000.00 4,650.00 9,175.00 (1,583.50) 15,697.50 57,663.75 6,750.00 52,819.80 5,454.00 (50.00) (655.25)

200.00 12,288.00 1,800.00

4,500.00 4,000.00 11,184.00 4,386.67 348.50

(1,000.00) 10,000.00 400.00 (1,000.00) 2,250.00

3.25 15,006.00 800.00 10,081.30 5,569.51 2,757.50 11,927.26 362.50 15,607.25

5,492.01

4,000.00 9,175.00 (1,583.50) 13,160.00

343.00 25,984.25 594.00 28,177.67 40,563.91 37,954.25

4,000.00 9,175.00 (1,583.50)

10,655.42 2,166.66 (50.00) (655.25)

15,697.50 57,663.75 6,750.00 52,819.80 5,454.00 (50.00) (655.25)

Deductions Name and Designation of Debtor Pizaro, Arthur P. Polido, Maria Myrel M.. Ponsaran, Levy C. Presas, Heinrich G. Punsalan, Angelita Quijano, Arianne Quinto, Myrna P. Ramirfez, Marnel Ramos, Bernadette Ramos, Henry C. Ramos, Leonora A. Ramos, Rebben Japheth Ramos, Teodorica L. Rana, Aurelio Y. Rapirap, Raquel T. Rayos, Nancy Reambonanza, Maria Teresita Remiendo, Nora Liza A. Restor, Nerissa A. Resuello, Heidi Retardo, Victor Cezar Reyes, Melodia S. Reyes, Mercedes C. Reyes, Richard R. Reyes, Richard Anthony Reyes, Richard Glenn C. Reyes, Rosa M. Rimano, Joy S. Rito, Estrellita S. Rosal, Josefina T. Rosario, Enrico Rosario, Ma. Theresa O. Rosario, Warly Evelyn Rubillos, Leonardo I. Rufo, Rowena O. Ruzol, Hipolito Sabas, Angel Francisco Sabaupan, Sylvette G. Salagubang, Reulay Kay B. Salloman, Philip M. Salvador, Paulino Samarita, Mercy Cristy B. Samson, Leylani H. Santaren, Emma C. Santos, Carmelita Santos, Leonida Santos, Marilou D. Saplala, Mariano F. Sarabia, Juliet C. Sasis, Florentino I. Sayat, Ruby DG. Simbol, Elvira C. Simo, Rickson Jay P. Siongco, Josephine C. Sioson, Yolanda J. Sison, Erlinda G. Sison, Roger Amadeo Sison, Waltedrudes M. Solano, Maria S. Soliman, Norma P. Solivio, Rosalie E. Soriano, Carol Bongar Soriano, Myla Grace Sta.Cruz, Cinderella A. Beginning Balance 4,500.00 7,500.00 1,500.00 (2,500.00) Additions 9,023.00 15,855.50 5,628.75 20,000.00 973.25 10,000.00 46,905.00 20,000.00 6,850.91 5,000.00 34,575.00 15,000.00 44,000.00 120,422.10 54,187.00 20,000.00 20,000.00 27,201.00 30,784.00 25,027.00 34,160.00 47,104.15 3,192.00 20,000.00 31,405.50 5,550.00 15,253.17 43,940.00 450.00 4,155.50 26,954.15 10,000.00 1,997.26 4,521.51 47,089.51 10,000.00 28,594.10 8,150.81 34,450.00 31,028.30 852.00 27,081.50 1,100.00 13,200.50 77,855.75 53,609.80 5,000.00 15,458.25 9,613.95 32,530.02 10,136.85 200.00 5,600.00 14,475.75 35,099.95 1,246.00 200.00 (4,200.00) Amount Deducted 5,923.00 22,105.50 3,478.75 20,000.00 161.75 43,405.00 44,996.96 5,000.00 6,975.00 37,500.00 46,387.75 91,141.59 Amount Written-Off Current 7,600.00 1,250.00 3,650.00 811.50 10,000.00 3,500.00 20,000.00 853.95 9,000.00 27,600.00 15,000.00 6,500.00 74,034.35 22,182.08 20,000.00 20,000.00 (2,333.33) 2,283.10 200.00 5,027.00 19,387.08 38,482.40 264.00 27,098.75 7,673.33 10,253.17 28,940.00 150.00 2,317.75 25,537.46 11,000.00 1,220.26 2,070.80 40,380.41 11,479.85 7,744.31 9,450.00 30,160.40 342.00 16,695.25 366.67 9,738.42 79,476.19 5,000.00 2,500.00 5,000.00 6,567.00 31,467.02 100.00 200.00 5,700.00 11,453.00 35,008.75 20,000.00 23,546.25 25,658.35 2,716.00 20,000.00 4,306.75 0.25 366.67 5,000.00 15,000.00 300.00 1,837.75 11,705.65 (1,000.00) 777.00 850.00 3,063.51 6,709.10 10,000.00 17,114.25 50.00 406.50 25,000.00 867.90 510.00 23,546.25 733.33 7,848.75 20,546.97 48,609.80 2,500.00 10,458.25 200.00 3,046.95 1,063.00 10,036.85 (290.00) 1,862.40 (100.00) 3,022.75 91.20 1,246.00 200.00 (4,200.00) Non-Current Ending 7,600.00 1,250.00 3,650.00 (2,500.00) 811.50 10,000.00 3,500.00 20,000.00 853.95 9,000.00 27,600.00 15,000.00 6,500.00 74,034.35 22,182.08 20,000.00 20,000.00 (2,333.33) 2,283.10 200.00 20,000.00 23,546.25 25,658.35 2,716.00 20,000.00 4,306.75 0.25 366.67 5,000.00 15,000.00 300.00 1,837.75 11,705.65 (1,000.00) 777.00 850.00 3,063.51 6,709.10 10,000.00 17,114.25 50.00 406.50 25,000.00 867.90 510.00 23,546.25 733.33 7,848.75 20,546.97 48,609.80 2,500.00 10,458.25 200.00 3,046.95 1,063.00 10,036.85 (290.00) 1,862.40 (100.00) 3,022.75 91.20 1,246.00 200.00 (4,200.00)

(2,500.00)

39,000.00 9,000.00

59,136.67

2,333.34 200.00 8,773.33 17,036.60 (212.00)

31,867.67 28,500.90

0.25 2,490.00

10,288.96

850.00 612.80

50.00

13,160.00 4,386.67 22,167.41

200.00

(290.00) 1,862.40

5,821.00

5,821.00

Deductions Name and Designation of Debtor Sta.Maria, Hipolito M. Suba, Sally Chua Tagle, Susan H. Tajonera, Joan Patrick Talampas, Ma. Cristina J. Tamondong, Ivy Tampol, Eduardo Tan, Paulino Tanafranca, Enrico V. Tapalgo, Elyn M. Tapit, Neila E. Tayag, Evelyn R. Tecson, Wilfrido Temporosa, Bernard T. Tiotangco, Angelina N. Tirazona, Renato L. Tizon, Dolores J. Togado, Illumar Tolentino, Rosula R. Topenio, Jimmy P. Torres, Maruja Torres, Teem Umpad, Mara Urquico, Ma. Luisa Usita, Laarni P. Valderrama, Ruth D. Valencia, Eufracia Valencia, Jean Pauline S. Valencia, Joy G. Valenzuela, Rowena B. Beginning Balance 12,600.00 52,666.65 30,200.02 27,818.20 200.00 220.00 Additions 41,700.00 75,532.00 32,366.00 12,088.85 65,009.00 Amount Deducted 53,600.00 97,748.65 40,366.00 80,327.20 Amount Written-Off Current 700.00 30,450.00 22,200.02 12,088.85 12,500.00 Non-Current Ending 700.00 30,450.00 22,200.02 12,088.85 12,500.00 200.00 220.00 50,000.00 150.00 618.67 33,627.75 0.04 50,000.00 16,795.75 31,800.00 8,872.33 7,848.75 1,333.35 1,038.40 6,672.75 414.00 2,340.40 24,000.00 666.00 19,486.47 9,078.44 670.25 8,999.99 2,968.95 1,851.25

200.00 220.00 50,000.00 983.00 10,928.00 53,259.00 28,697.71 50,000.00 55,057.75 54,871.25 41,156.25 9,290.00 8,000.00 12,151.35 11,978.75 2,344.40 152,000.00 73,740.90 24,017.10 670.25 53,795.25 3,490.95 40,851.25 833.00 10,899.33 25,711.25 28,697.67 34,050.00 23,071.25 44,296.00 3,634.59 8,666.65 11,112.95 5,306.00 4.00 176,000.00 54,254.43 16,349.53 44,795.26 522.00 39,000.00 50,000.00 150.00 618.67 33,627.75 0.04 50,000.00 16,795.75 31,800.00 8,872.33 7,848.75 1,333.35 1,038.40 6,672.75 414.00 2,340.40 24,000.00 666.00 19,486.47 9,078.44 670.25 8,999.99 2,968.95 1,851.25

590.00 6,080.00

(4,212.00) 12,012.08 2,193.34 2,000.00

414.00 48,000.00 666.00 1,410.87

Deductions Name and Designation of Debtor Vanguardia, Cesar G. Velasco, Maria Luisa R. Velasquez, Damian D. Velasquez, Ma. Charisma B. Velasquez, Willyn V. Vera, Alpher Vera, Liorinda D. Vera, Michael R. Vergara, Febes Vibas, Danilo T. Vicera, Reynante P. Victoria, Michael S. Victoria, Wendelliza M. Villanueva, Ma. Concepcion Villanueva, Ruth Villapando, Marimel A. Villar, Gerald L. Villaroya, Robinson L. Villegas, Mary Claire L. Vinluan, Lourdes R. Vinluan, Renato A. Vitug, Eliza J. Wee, Mariano B. Yang, Gloria G,. Yap, Donato C. Yatco, Maria Carmen Zaldivar, Felicia P. Zaldivar, Ramil P. Zamudio, Rowena B. Zape, Vida Edna C. P Beginning Balance 200.00 (4,100.00) 1,000.00 4,000.00 10,000.00 5,000.00 200.00 (1,300.00) 8,773.33 6,402.80 (497.30) 650.00 (50.00) (4,000.00) 1,953.34 4,875.00 14,500.00 89,736.04 14,881.25 9,411.60 8,349.70 5,354.00 50,400.00 135,562.30 2,060.65 1,700.00 74,654.05 11,708,489.55 13,291.63 50,041.38 7,459.00 2,367.25 354.00 65,825.04 71,967.84 1,800.01 98,012.94 11,856,639.52 P 1,208.37 41,648.00 14,881.25 1,952.60 5,982.45 5,000.00 4,366.65 67,716.80 2,060.65 (100.01) (3,941.19) 5,391,386.12 84,900.78 Additions 11,775.00 17,283.00 5,002.25 5,600.00 27,284.00 779.94 239.50 11,424.26 23,274.50 28,914.15 13,718.36 9,846.00 41,570.25 16,350.33 32,498.75 6,896.50 6,780.66 33,519.00 Amount Deducted 1,775.00 17,283.00 5,002.25 10,600.00 33,423.74 239.50 11,424.26 (1,300.00) 15,697.50 2,818.20 6,324.56 650.00 3,015.34 8,051.25 (4,000.00) Amount Written-Off Current 10,000.00 Non-Current 200.00 (4,100.00) 1,000.00 (1,000.00) 3,860.26 779.94 5,000.00 200.00 Ending 10,000.00 200.00 (4,100.00) 1,000.00 (1,000.00) 3,860.26 779.94 5,000.00 200.00 11,424.26 (1,300.00) 15,697.50 2,818.20 6,324.56 650.00 3,015.34 8,051.25 (4,000.00) 1,208.37 41,648.00 19,756.25 1,952.60 5,982.45 5,000.00 200.00 4,366.65 67,716.80 2,060.65 (100.01) (3,941.19) 5,476,286.90

4,875.00

200.00 19,791.69 4,122.34

200.00

19,417.70 5,624,436.87

Alvarez, Alfredo Ampatin, Estrella V. Cabasada, Albert R. Capili, Regina R. Destura, Blanca Domingo, Leovildo V. Fernando, Gerry V. Frades, Francisca B. Inciong, Cherry Wyne Leon, Jocelyn E. Lopez, Martin Z. Mendoza, Malaya Molina, Mark Oliver P. Quines, Dante P. Rapirap, Raquel T. Rosal, Josefina T. Rosales, Amormia Rhodora J. Tolentino, Rosula R.

2,000.00 27,220.00 8,114.36

2,000.00 8,400.00 3,640.00 1,800.00 69,600.00 27,000.00 150,640.00 55,948.81 166,566.97 175,117.00 7,962.00 575,175.40 325,461.95 17,600.00 105,191.89 8,310.00 1,820.00 900.00 102,876.15 24,498.63 43,250.44 56,228.81 159,286.97 203,857.89 7,962.00 360,597.52 296,661.95 21,800.00 67,581.89 27,310.00 8,114.36 1,820.00 900.00 (33,276.15) 2,501.37 107,389.56 (280.00) 7,280.00 (28,740.89) 7,650.00 76,043.37 300.00 25,828.00 1,000.00 (4,200.00) 37,610.00

7,650.00 (138,534.51) 300.00 (2,972.00) 1,000.00

2,000.00 27,310.00 8,114.36 1,820.00 900.00 (33,276.15) 2,501.37 107,389.56 (280.00) 7,280.00 (28,740.89) 7,650.00 76,043.37 300.00 25,828.00 1,000.00 (4,200.00) 37,610.00

P

(95,222.15)

1,690,104.02

1,355,632.25

P

220,185.26

19,064.36

239,249.62

TOTAL - 1131012

P

5,529,214.72

13,398,593.57

13,212,271.77

P

5,611,571.38

103,965.14

5,715,536.52

Deductions Name and Designation of Debtor Beginning Balance Additions Amount Deducted Amount Written-Off Current Non-Current Ending

THE FAR EASTERN UNIVERSITY, INCORPORATED AND SUBSIDIARIES SCHEDULE C - NONCURRENT MARKETABLE EQUITY SECURITIES, OTHER LONG-TERM INVESTMENTS IN STOCKS AND OTHER INVESTMENTS FOR THE YEAR ENDED MARCH 31, 2010

Name of Issuing Entity and Description of Each Investment

BEGINNING BALANCE Number of Shares or Principal Amount of Bonds Amount in Pesos and Notes

ADDITIONS (DEDUCTIONS) Number of Shares or Principal Amount of Bonds and Notes Equity in Earnings (Losses) of Investees for the Period

Amount in Pesos

Dividends Received/ (Declared)

ENDING BALANCE Number of Shares or Principal Amount of Bonds Amount in Pesos and Notes

Percentage Ownership

Dividends Received/Accrued from Investments Not Accounted for by the Equity Method

Investment - Juliana Mngt. (associate)

43,659

P

7,055,963

P

-

P

-

( P

53,987 )

43,659

P

7,001,976

49.00%

P

7,055,963

P

-

P

-

( P

53,987 )

43,659

P

7,001,976

18

THE FAR EASTERN UNIVERSITY, INCORPORATED AND SUBSIDIARIES SCHEDULE E - OTHER ASSETS FOR THE YEAR ENDED MARCH 31, 2010

Description Other Current Assets Restricted cash Advances to suppliers Prepayments Others

Beginning Balance

Additions at Cost

Deductions Charged to Costs Charged to and Expenses Other Accounts

Other ChangesAdditions (Deductions)

Ending Balance

P

58,490,642 P 20,954,948 1,558,956 9,672,618

-

P (

P 4,006,673 ) -

-

P (

(

14,519,892 ) P 57,234,123 864,442 )

43,970,750 16,948,275 58,793,079 8,808,176

P Other Non-Current Assets Goodwill Surety Bond Marketable Securities Club membership shares Cash bond Long-term refundable deposit

90,677,164 P

-

P (

4,006,673 ) P

-

P

41,849,789

P

128,520,280

P

12,352,684 P 2,833,600 2,530,373 1,000,000 134,835 100,000

-

P

-

P

-

P (

P 2,833,600 ) -

12,352,684 2,530,373 1,000,000 134,835 100,000

P

18,951,492 P

-

P

-

P

-

P (

2,833,600 ) P

16,117,892

19

THE FAR EASTERN UNIVERSITY, INCORPORATED SCHEDULE I - CAPITAL STOCK FOR THE YEAR ENDED MARCH 31, 2010

Number of shares held by

Title of Issue 2

Number of shares authorized

Number of shares issued and outstanding as shown under the related balance sheet caption

Number of shares reserved for options, warrants, coversion and other rights

Related parties 3

Directors, officers and employees

Others

10,000,000
Issuance during the year
-

9,808,448 9,808,448

Board of trustees Officers Employees/Faculty

599,557 40,059 16,584

1

Indicate in a note any significant changes since the date of the last balance sheet filed. Include in this column each type of issue authorized.

2

3

Affiliates referred to include affiliates for which separate financial statements are filed and those included in consolidated financial statements, other than the issuer of the particular security.

20

THE FAR EASTERN UNIVERSITY, INCORPORATED Nicanor Reyes Sr. Street, Sampaloc, Manila Reconciliation of Retained Earnings for Dividend Declaration March 31, 2010

UNAPPROPRIATED RETAINED EARNINGS FOR DIVIDEND DECLARATION AT BEGINNING OF YEAR * Net Profit Realized for the Year Net profit per audited financial statements Less reconciling item - deferred tax income

P

937,802,775

585,181,285 1,388,091 583,793,194

Add (Less) Changes in Retained Earnings for the Year Appropriation during the year Reversals of appropriations Dividend declarations during the year

( ( (

1,000,000,000 ) 300,000,000 294,253,440 ) 994,253,440 )

UNAPPROPRIATED RETAINED EARNINGS FOR DIVIDEND DECLARATION AT END OF YEAR

P

527,342,529

21

- 21 -

Item 8:

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure There has been no recent change in and disagreement with Accountants on accounting and financial disclosure.

PART III - CONTROL AND COMPENSATION

Item 9.

Trustees and Executive Officers

Name Lourdes R. Montinola Aurelio R. Montinola III Lydia B. Echauz Angelina P. Jose Paulino Y. Tan Gianna R. Montinola Renato L. Paras Wilfrido C. Tecson Robert F. Kuan Elizabeth P. Melchor

Ages 82 58 62 57 63 52 83 87 61 53

Citizenship Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino

Position Chair, Board of Trustees Vice Chair, Board of Trustees President/Trustee Corporate Secretary/ Trustee Trustee Trustee Trustee Independent Trustee Independent Trustee Vice President for Planning and Development Vice President for Academic Affairs Chief Financial Officer Treasurer Comptroller Compliance Officer

Miguel M. Carpio Fe V. Canilao Herminia I. Maliwat Glenn Z. Nagal Severino M. Garcia

54 64 61 52 61

Filipino Filipino Filipino Filipino Filipino

- 22 TRUSTEES AND EXECUTIVE OFFICERS: 1. Lourdes R. Montinola, 82, Filipino: Chair of the Board of Trustees of Far Eastern University, Inc. (June 1989 to present) Other Corporate Affiliations: Chair, Board of Directors, FERN Realty Corporation; Chair and President, FEU Educational Foundation, Inc.; Chair, Nicanor Reyes Educational Foundation; Chair, Executive Committee, Far Eastern University, Inc.; Chair, Far Eastern College Silang; Governor, Nicanor Reyes Memorial Foundation; Trustee, FEU-Dr. Nicanor Reyes Medical Foundation; Trustee, AY Foundation, Inc.; Member, Museum Foundation of the Philippines, Oriental Ceramic Society, Heritage Conservation Society, Asia Society, & Philippine Textile Society. Dr. Montinola holds a Bachelor of Arts degree (cum laude) from Marymount College, New York, U.S.A., and an M. A. in Cultural History from the Asean Graduate Institute of Arts. She completed the Management Development Program for College and University Administrators in the Institute for Educational Management, Graduate School of Education, Harvard University, U.S.A. She obtained her Ph. D. in English: Creative Writing from the University of the Philippines. 2. Aurelio Montinola III, 58, Filipino: Vice Chairman of the Board of Trustees, Far Eastern University, Inc. (June 1989 to present) President and Chief Executive Officer of Bank of the Philippine Islands and President, Bankers Association of the Philippines. His other affiliations, among others, include: Chairman of the Board of Directors of Amon Trading Corporation; Vice Chairman of the Board of Directors of Republic Cement Corporation; Chairman of East Asia Educational Foundation, Inc.; Regional Board of Advisers, MasterCard International; Director, Ayala Land, Inc.; President, BPI Foundation, Inc.; Member, Makati Business Club; and Member, Management Association of the Philippines; Member, Board of Directors, Far Eastern College Silang. He graduated with a BS Management Engineering degree at the Ateneo de Manila University in 1973, and received his MBA at Harvard Business School in 1977. 3. Lydia B. Echauz, 62, Filipino: President (June 2003 to present) and Member of the Board of Trustees, Far Eastern University, Inc. (1999 to present) Appointed Acting President of Far Eastern University in 2002, and since 2003, President, FEU-East Asia College; President, FEU-FERN College; President, FEU East Asia Educational Foundation, Inc.; in 2010 President, Far Eastern College Silang. Since 2002, member, Board of Directors of FERN Realty Corporation and Governor, Nicanor Reyes Memorial Foundation. She is past President of the Association of Southeast Asian Institutes of Higher Learning – Philippine Council; Director of the Philippine Association of Colleges and Universities; Alternate Director, Coordinating Council of Philippine Educational Associations; and member of the Management Association of the Philippines. She was Dean of the Graduate School of Business, De La Salle University Professional Schools, Inc., from 1986 to 2002; former Associate Director of the MBA Program, Ateneo de Manila University Graduate School of Business for seven years; also Associate Professor of the College of Business Administration, University of the East, for twelve years.

- 23 -

Dr. Echauz is a Bachelor of Arts, major in Economics and Mathematics from St. Theresa’s College, MBA from Ateneo de Manila University, and DBA from De La Salle University, and awarded outstanding alumna of all three educational institutions, outstanding Bulakena, Manilan, Filipino and mother by various organiziations. 4. Angelina Palanca Jose, 57, Filipino: Trustee (1990 to present) and Corporate Secretary, Far Eastern University, Inc. (1998 to present) Other Corporate Affiliations: Member, Board of Directors, FERN Realty Corporation; Secretary, Treasurer and Trustee, Nicanor Reyes Educational Foundation; Corporate Secretary and Trustee, FEU Educational Foundation Inc.; Corporate Secretary and Governor, Nicanor Reyes Memorial Foundation; and member, Executive Committee, Far Eastern University, Inc.; Corporate Secretary, Far Eastern College Silang. Ms. Jose obtained her Bachelor of Science degree, major in Economics, from the University of the Philippines (Dean’s Medal). 5. Paulino Y. Tan, 64, Filipino: Trustee, Far Eastern University, Inc. (1991 to present) Other Business Experience: President of Asia Pacific College; IT Services Consultant, SM (Shoemart) Inc. At present, member of the Board of Directors/Trustees of the following companies: Nicanor Reyes Educational Foundation, Inc., FEU Educational Foundation, Inc., East Asia Educational Foundation, Inc., Lyceum of Batangas, Lyceum of Laguna, Foundation for Upgrading the Standard of Education (FUSE), SM (Shoemart) Foundation, Inc., Asia Pacific Technology Educational Foundation, FERN Realty Corporation and Far Eastern College Silang. Dr. Tan obtained the Degree of Bachelor in Science in Chemical Engineering (summa cum laude) from De La Salle University. He topped the Chemical Engineering Board Examination and obtained both his M. S. and Ph.D. in Chemical Engineering from the University of Notre Dame, Indiana, U.S.A. 6. Gianna R. Montinola, 52, Filipino: Trustee of Far Eastern University, Inc. (19891993 and 1996 to present) Concurrently Director and Corporate Secretary of FERN Realty Corporation and Consultant for Marketing and Communications of Far Eastern University. A lawyer by profession, she was connected with the Quisumbing, Torres and Evangelista Law Office (an affiliate of the Baker & McKenzie Law Office, U.S.A.) from 1986 to 1992. She served as Philippine Honorary Consul to the Republic of Peru from 1992 to 1996, and joined the Marketing and Business Development departments of Rockwell Land Corporation from 1996 to 1998. She is a member of the Board of Directors and Corporate Secretary of Amon Trading Corporation and a Director of True Value Hardware Corporation. She is also a co-founder of non-profit organizations Hands On Manila Foundation, Inc. and Chairperson of PeaceTech, Inc. She obtained her Bachelor of Arts degree in International Relations from Mount Holyoke College, USA and a Bachelor of Laws (Ll.B.) degree, with honors, from the Ateneo de Manila College of Law.

- 24 7. Renato L. Paras, 84, Filipino: Trustee of Far Eastern University, Inc. (1989-1991 and 2002 to present) Other Corporate Affiliations: Chair of CHEMREZ Technologies and of Philippine Ratings; Vice Chair of CIBI Foundation and East Asia Educational Foundation, Inc. He is also a member of the Board of Directors/Trustees of the following: FERN Realty Corporation, CIBI Information, Inc., Insular Life Health Care, IBM Philippines Retirement Fund Committee and is Asia Pacific Regional Treasurer of the World Organization of Scout Movement. Dr. Paras was a member of the Central Bank Monetary Board, was also Board Director and CFO of Procter & Gamble Philippines, and Consultant on Internal Auditing to CFO of San Miguel Corporation. Dr. Paras is a Certified Public Accountant. He topped the CPA Board Exam in 1948. He finished his Bachelor of Science in Accountancy in FEU in 1949 (summa cum laude), and earned his Master of Science in Accountancy at Columbia University in New York as an FEU scholar. He took up an Advanced Management Program conducted by the Harvard Graduate School of Business Faculty. In the year 2000, he was conferred an honorary degree of Doctor of Humanities by FEU. He is listed in the Accountancy Hall of Fame. 8. Wilfrido C. Tecson, 87, Filipino: Trustee (1989-2001) and Independent Trustee, Far Eastern University (2001 to present) Banking Experience: Co-founded Solid Bank and assumed positions of President, CEO and Vice Chairman until he retired; served as Vice President of China Banking Corporation and as President and Vice Chairman of Equitable Banking Corporation. At present, he is a Director of the Lepanto Mining Corporation. He is founding Treasurer of the Hero Foundation, Inc. and the Museong Pambata, and is a member of the Board of Trustees of the YMCA. Dr. Tecson graduated with the degree of Bachelor of Science in Commerce, major in Accounting (summa cum laude) from FEU, and was conferred the degree of Doctor of Business Management (honoris causa) by FEU in 1993. 9. Robert F. Kuan, 61, Filipino: Independent Trustee of Far Eastern University, Inc. (2004 to present) Other Business Affiliations: Chairman, St. Luke’s Medical Center; Trustee, St. Luke’s College of Medicine–William H. Quasha Memorial; Trustee, Brent International School of Manila; Chairman, Brent International School Baguio, Inc.; Trustee, Brent International School Subic, Inc.; Chairman, Brent International School, Inc.; Chairman, St. Theodore of Tarsus Hospital in Sagada, Inc.; Director, China Banking Corporation; Founder/President, Chowking Food Corporation (1985 – 2000); Director, Far Eastern College Silang. Mr. Kuan graduated from the University of the Philippines (1970) with a degree of Bachelor of Science in Business Administration. In 1975, he earned his Masters in Business Management from the Asian Institute of Management (AIM). In 1993, he took up the Top Management Program at AIM, a program exclusively for company Presidents and Chief Executive Officers. He was a TOFIL (Ten Outstanding Filipino) Awardee in 2003 in the field of Business & Entrepreneurship; Agora Awardee for Entrepreneurship; Triple-A Awardee of AIM; and Outstanding Alumnus of the University of the Philippines (UP) in the field of Business.

- 25 10. Miguel M. Carpio, 54, Filipino: Vice-President for Academic Affairs, Far Eastern University, Inc. (April 2008 to present) Other Professional Experience: Founding member and incorporator, UST College of Architecture Alumni Association and the Council of Architectural Researchers and Educators; Chairman, CHED Technical Committee on Architecture and Member, Regional Assessment Team for Architecture; Fellow, United Architects of the Philippines (UAP); Director, UAP Sta. Mesa Chapter; Member, Philippine Institute of Environmental Planners; Executive Director, Commission on Education of the UAP (2002 to 2004); President of the Council of Deans and Heads of Architecture Schools in the Philippines or CODHASP (2003 to 2005); Secretary, National Committee on Architecture and Allied Arts of the National Commission on Culture and the Arts (NCCA) (2003 to 2007); Member, National Real Estate Association, Inc.; Dean, FEU Institute of Architecture and Fine Arts (November 2000 to March 2008); Executive Director, FEU Center for Studies on the Urban Environment or FEU-SURE (2000 to 2002). Arch./En.P. Carpio is a registered and licensed Architect and Environmental Planner. He graduated with the degree of Bachelor of Science in Architecture from the University of Santo Tomas and earned a Master of Environmental Management and Development degree from the Australian National University in Canberra, Australia. He also earned academic units in the Master in Urban and Regional Planning from the University of the Philippines. He is currently working on his dissertation in the Ph.D. in Development Studies at the University of Santo Tomas. 11. Elizabeth P. Melchor, 53, Filipino: Vice President for Planning and Development, Far Eastern University, Inc. (April 2008 to present) Other Professional Experience: Trustee, FEU-Nicanor Reyes Medical Foundation; Governor, Nicanor Reyes Memorial Foundation; Trustee, East Asia Educational Foundation, Inc.; Director, Far Eastern College Silang; Vice-President, Alejandro Melchor Jr. Memorial Foundation; Trustee and Officer, Cradle of Joy Learning Center; Member, Commission on Tertiary Education, Philippine Accrediting Association of Schools, Colleges and Universities (PAASCU); Dean, Registrar and Outstanding Teacher Awardee, Assumption College, Makati; Visiting Professor, Huaqiao University, Quanzhou, China; Scholar, Beijing Language Institute; Chapter Head, Haggai Institute of Advanced Leadership; Vice President for Academic Affairs, Far Eastern University, Inc. (2004 to 2008). Dr. Melchor holds a Bachelor of Science degree, major in Physics (College Scholar), and a Master of Science, major in Physics, from the University of the Philippines, Diliman. She earned her doctorate degree in Education from the California Coast University in Santa Ana, California, U.S.A. 12. Fe V. Canilao, 64, Filipino: Chief Financial Officer, Far Eastern University, Inc. (1996 to present) Other Business Experience: Served as Vice President for Finance prior to her current position. At present, Vice President of FERN Realty Corporation; Alternate Member, Executive Committee, and Investor Relations Officer, Far Eastern University, Inc.; Trustee and Treasurer, East Asia Educational Foundation, Inc.; Assistant Corporate Secretary, Nicanor Reyes Educational Foundation and the FEU Educational Foundation, Inc.; Treasurer, Far Eastern College Silang.

- 26 -

Ms. Canilao, a Certified Public Accountant, earned her Bachelor of Science in Business Administration from the Philippine Women’s University and her MBA from FEU. 13. Herminia I. Maliwat, 61, Filipino: Treasurer, Far Eastern University, Inc. (1998 to present) Ms. Maliwat is a Certified Public Accountant. She obtained her BS in Accounting, cum laude, from the University of the East. Before joining FEU, she worked as Chief Accountant for 10 years and Instructor for 8 years at the College of the Holy Spirit, as Administrative and Finance Officer for 16 years at the Asia Foundation, and as External Auditor for 10 years at the Mother Edelwina Educational Foundation. She also served as Executive Director of the FEU Educational Foundation for three years and as 2007-08 Committee Chairperson on special projects of the Philippine Institute of Certified Public Accountants (PICPA). 14. Glenn Z. Nagal, 53, Filipino: Comptroller, Far Eastern University, Inc. (1996 to present) Work experience: External Auditor, Carlos J. Valdes and Company; Examiner, Central Bank of the Philippines; Internal Audit Manager, Far Eastern University; Chief Accountant and Budget Director, Far Eastern University; Accounting Professor, Far Eastern University. A Certified Public Accountant by profession, Mr. Nagal graduated with the degree of Bachelor of Science in Commerce, major in Accounting from Far Eastern University. 15. Severino M. Garcia, 61, Filipino: Compliance Officer, Far Eastern University, Inc. (January 21, 2003 to present) Former Assistant Vice President – Audit. Mr. Garcia earned the degree of Bachelor of Science in Commerce, major in Accounting from FEU. A Certified Public Accountant, he worked in different companies as Auditor, Chief Accountant, Finance and Accounting Manager and Senior Financial Analyst. The members of the Board of Trustees of the Corporation are elected at the Annual Stockholders' Meeting to hold office until the next succeeding annual meeting, up to the time their respective successors shall have been elected and qualified. The officers are appointed or elected annually by the Board of Trustees at its organizational meeting, each to hold office until the corresponding meeting of the Board the following year or until a successor shall have been elected, appointed and qualified.

Significant Employees The corporation considers its entire work force as significant employees. Everyone is expected to work together as a team to achieve the corporation’s goals and objectives.

- 27 Family Relationships The Chair, Dr. Lourdes R. Montinola, is the mother of Mr. Aurelio R. Montinola III and Atty. Gianna R. Montinola, all of whom are members of the Board of Trustees.

Item 10:

Executive Compensation
April 1/2008 to March 31/2009 April 1/2009 to March 31/2010 April 1/2010 to March 31/2011

Name Lourdes R. Montinola Lydia B. Echauz Angelina P. Jose Fe V. Canilao Cecilia I. Anido Miguel M. Carpio Elizabeth P. Melchor Herminia I. Maliwat Severino M. Garcia

Principal Position Chair, Board of Trustees Trustee/President Trustee/Corporate Secretary Chief Financial Officer VP – Academic Affairs VP – Special Projects* VP – Planning and Development Treasurer Compliance Officer _____________ P62,797,434.00 _____________ P69,744,631.52 ____________ P75,616,648.36

* Effective November 9, 2009

The compensation above presented are actual for the last two (2) completed fiscal years and the estimate for the ensuing fiscal year ending March 31, 2011. Aggregate amount is P / 208,158,713.88 ==============
Compensation of Directors A. Standard Arrangement The members of the Board of Trustees of the corporation are receiving gas allowances for regular board/special board meetings attended. They are also entitled to bonuses at the end of the fiscal year at the discretion of the Board, while the officers of the corporation are entitled to basic salaries, living allowance, special financial assistance, fringe benefits, and also bonuses at the discretion of the Board. B. Other Arrangement There are no other material terms or conditions of employment for contractual executive officers. Voting Trust Holders The Registrant is not a party to any voting trust agreement. No security holder of the Registrant holds a voting trust or other similar agreements.

- 28 -

No information is available on all outstanding warrants or options held by the members of the Board of Trustees and officers of the corporation.

Summary Compensation Table

Summary and Principal Position Lourdes R. Montinola Chair, Board of Trustees Lydia B. Echauz Trustee/President Angelina P. Jose Trustee/Corporate Secretary Fe V. Canilao Chief Financial Officer Cecilia I. Anido VP-Academic Affairs Elizabeth P. Melchor VP-Planning and Development Miguel M. Carpio VP-Special Projects Severino M. Garcia Compliance Officer Herminia I. Maliwat Treasurer Grand Total

Year -x-x-x-x-x-x-x-x-x2008-2009 2009-2010 2010-2011 (est.)

Salary -x-x-x-x-x-x-x-x-xP43,091,751.54 / 48,736,473.56 53,122,756.18

Bonus -x-x-x-x-x-x-x-x-xP19,705,682.00 / 21,008,157.96 22,493,892.18

Other Annual Compensation -x-x-x-x-x-x-x-x-x-x -x-x-

- 29 -

Item 11:

Security Ownership of Certain Beneficial Owners and Management

Beneficial Owners of More Than 5% and 10% Securities as of March 31, 2010

As of March 31, 2010, Far Eastern University does not have on record any person, party or entity who beneficially owns more than 5% and 10% of common stock except as set forth in the table below:

Title of Class

Name, Address of Record Owner and Relationship with Issuer Desrey, Incorporated1 10th Fl., Pacific Star Bldg. Cor. Makati & Gil Puyat Ave. Makati City Seyrel Investment and Realty Corporation2 10th Fl., Pacific Star Bldg. Cor. Makati & Gil Puyat Ave. Makati City Sysmart Corporation3 426 MKSE, Ayala Avenue Makati City

Citizenship

No. of Shares Held 784,800

Percent

Common

Filipino

8.0013

Common

Filipino

2,807,835

28.6267

Common

Filipino

2,076,839

21.1740

All of the above are direct beneficial owners of the securities.

1

Dr. Lourdes, R. Montinola as President is authorized to vote for the shares of the Corporation. Ibid Mr. Henry Sy Sr. as Chair of the Board will vote for the shares of the Corporation.

2

3

- 30 -

Security Ownership of Management

Title of Class

Name of Beneficial Owner

Common Common Common Common Common Common Common Common Common Common

Common Common Common

Lourdes R. Montinola Chair, Board of Trustees Lydia B. Echauz Trustee/President Aurelio R. Montinola III Vice Chair, Board of Trustees Angelina Palanca Jose Trustee/Corporate Secretary Wilfrido C. Tecson Trustee Paulino Y. Tan Trustee Gianna R. Montinola Trustee Renato L. Paras Trustee Robert F. Kuan Trustee Elizabeth P. Melchor VP for Planning and Development Fe V. Canilao Chief Financial Officer Herminia I. Maliwat Treasurer Glenn Z. Nagal Comptroller

Number of Shares and and Nature of Beneficial Ownership 94,588 - D 5,919 - D 164,099 - D 314,538 - D 1 - I 1 - I 20,409 - D 1 - I 1 - I 17,862 - D

Citizenship

Percent Of Class

Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino Filipino

0.9644 0.0603 1.6730 3.2068 0.00001 0.00001 0.2081 0.00001 0.00001 0.1821

21,737 - D 56 - D 404 - D

Filipino Filipino Filipino

0.2216 0.00057 0.0041

Security of Ownership of Management as a Group Total Shares Percentage 639,616 6.5210%

- 31 -

Item 12:

Certain Relationship and Related Transactions

During the last two (2) years, the corporation or any of the members of the Board of Trustees was never a party or proposed to be a party in any related transaction.

PART IV - Corporate Governance

Item 13. •

Corporate Governance

The University’s compliance with SEC Memorandum Circular No. 2 dated April 5, 2002, as well as all relevant circulars on Corporate Governance has been monitored. FAR EASTERN UNIVERSITY, its trustees, officers and employees complied with the leading practices and principles on good corporate governance as embodied in the company’s Manual; FAR EASTERN UNIVERSITY also complied with the appropriate performance self-rating assessment and performance evaluation system to determine and measure compliance with the Manual. The corporation’s evaluation system was approved by the Board of Trustees at its meeting on March 16, 2004; FAR EASTERN UNIVERSITY did not commit any major deviations from the provisions of its Manual. Our Corporate Governance Compliance Officer submitted his 2009 certification to the Securities and Exchange Commission on the extent of the company’s compliance with its manual on January 20, 2010. All members of the Board of Trustees as well as Senior Management officers completed and were duly certified to have attended a special seminar on Corporate Governance conducted by an entity accredited by the Securities and Exchange Commission. In September 2009, the university participated in the Corporate Governance Survey using the Corporate Governance Scorecard prepared by the Institute of Corporate Directors. Far Eastern University submitted its Revised Manual on Corporate Governance to the Securities and Exchange Commission on January 8, 2010.













- 32 -

PART V – EXHIBITS AND SCHEDULES Item 14 Exhibits and Reports on SEC Form 17-C (a) Exhibit The exhibits are not applicable to the company nor require any answer. (b) Report on SEC Form 17-C 1. Resolution approved at the Board of Trustees’ meeting held on June 19, 2009: Declaration of P15.00/share cash dividend on record as of July 6, 2009, payable on July 20, 2009. Report received on June 22, 2009. 2. Resolutions approved at the Annual Stockholders’ meeting held on August 22, 2009: a. Minutes of the Annual Meeting on August 23, 2008; b. Academic Report of the President and Annual Report of the Chairman for fiscal year 2008-2009; Ratification and confirmation of the acts of the officers and trustees in the furtherance of the matters covered by the annual report for fiscal year 2008-2009; Elected trustees and independent trustees for the fiscal year 2009-2010; Re-Appointment of Punongbayan and Araullo as External Auditor for the fiscal year 2009-2010; and Vote of appreciation to the Board of Trustees, the officials, faculty and staff. Report received on August 25, 2009. 3. Resolutions approved at the Annual Stockholders’ meeting held on August 22, 2009 ratified and confirmed by the stockholders holding 88.37% of the total issued and outstanding capital stocks of the Corporation:

c.

d.

e.

f.

- 33 -

Amendment of Article 1 of the Amended Articles of Incorporation of Far Eastern University from: First. That the name of said corporation shall be – The Far Eastern University, Incorporated To henceforth read as follows: First. That the name of said corporation shall be – FAR EASTERN UNIVERSITY, INC. doing business under the name and style FAR EASTERN UNIVERSITY 4. Resolutions approved at the Organizational Meeting of the Board of Trustees held on September 15, 2009: a. Elected Corporate and University Officials for the fiscal year 2009-2010; Composition of the Executive Committee; Composition of the Audit Committee; Composition of the Corporate Governance Committee; Composition of the Nomination Committee; Composition of the Risk Management; and Composition of the Compensation Committee Report received on September 16, 2009. 5. Resolution approved at the Special Board of Trustees’ meeting held on September 30, 2009: Opening of Far Eastern University branch in Makati City and entering into a lease agreement with Crans Montana Property Holdings Corporation for its property located in Makati City. Report received on September 30, 2009. 6. Resolution approved at the Board of Trustees’ meeting held on December 15, 2009: Declaration of P15.00/share cash dividend on record as of January 8, 2010, payable on January 25, 2010. Report received on December 17, 2009.

b. c. d. e. f. g.

- 34 -

7.

Resolution approved at the Board of Trustees’ meeting held on March 16, 2010: Appropriation from the retained earnings the amount of One Billion Pesos (P1,000,000,000.00) for property acquisition and investment. Report received on March 16, 2010.

8.

Resolutions approved at the Board of Trustees’ meeting held on March 16, 2010: Authorizing the Corporation to join and participate as a party/co-venturer with PHI Culinary Arts and Food Services Institute, Inc. to set up a joint venture corporation named ICF-CCE, Inc. for the purpose of owning and operating a culinary arts school to be named “ICF@FEU’’ under the following capital contribution scheme: Far Eastern University PHI Culinary Arts and Food Services Institute, Inc. : : 50% 50%

and under such other terms and conditions as may be consistent with the foregoing and beneficial to the Corporation. Report received on March 18, 2010. (c) Quarterly Reports: Ended June 30, 2009 Received August 14, 2009 Ended September 30, 2009 Received November 13, 2009 Ended December 31, 2009 Received February 12, 2010 Ended December 31, 2009 (Amended) Received March 8, 2010

- 35 -

Business and General Information I. Industry Profile The following are the dominant characteristics of the education industry: The business of higher education in the country is in the hands of the private sector. There is an uneven distribution of colleges and universities across the regions. This connotes a problem of unequal access to higher education. This is evidenced by the high concentration of state and private colleges and universities in the National Capital Region and Southern Tagalog Regions. Statistics show a high mismatch between education and occupation. The number of graduates in fields like commerce and business administration continues to increase even if unemployment among these graduates is on the rise.

-

-

Far Eastern University’s market is made up of the working class and the middle income group. FEU is situated in Manila, particularly in the area popularly known as the University Belt. To be competitive, the university must continuously improve its products and at the same time maintain reasonable tuition fees. II. Group of related services which contribute 10% or more to revenues 1. 2. 3. III. IV. V. VI Institute of Accounts, Business and Finance Institute of Arts and Sciences Institute of Nursing 32.20% 13.15% 43.87%

Teaching services are rendered to students who come and enroll. No patents, trademarks, copyrights, licenses, franchises, concessions, and royalty agreements are held by the company. All courses offered are with CHED recognition. Standard set by CHED encourages the University to continuously improve its quality of teaching and its facilities. Operational and Financial Information Dividend payments are normally restricted by reserves and appropriations made by the company, and by the amount needed to ensure smooth and unhampered operations during the year. Control and Compensation Information No warrants or options are given by the corporation.

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