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Presented to the
Accounting Department
De La Salle University

In partial fulfillment
of the course requirements
in ACCTBA2 C35

Lim, Gelaine Iseya C.

Olis, Lina
Paras, Adrielle Rose M.
Santos, Klerry Denise
Saripada, Noraissa M.


Jollibee Foods Corporation (JFC) develops, operates, and franchises fast-food

stores under the name Jollibee that is founded by a Filipino-Chinese named Tony Tan
Caktiong (Jollibee Foods Corporation [JFC], 2014).
In 1975, Mr. Tony Tan and his family opened a Magnolia Ice cream parlor at
Cubao that offers hot meals and sandwiches. In addition, this ice cream parlor in Cubao
has become the 1st Jollibee Outlet.
Incorporated in the year 1978 under the Corporation Code of the Philippines,
Jollibee has consequently become a 100% Filipino corporation. After the
incorporation, there were seven Jollibee outlets that were exploring the possibility of
finding the unique hamburger concept. In 1979, they have introduced their spaghetti
special. Their great success continues, leading to their first-ever TV commercial on
1980 where they have launched their products french fries and chickenjoy. This TV
commercial has also introduced the Jollibee mascot that have conceived to support
brand awareness and identity efforts. Other mascots are later introduced.
Subsequently, the next introduced food was their palabok fiesta which was launched
in 1982. Moreover, the Langhap-Sarap TV ad Campaign was launched in 1983 that
introduced Chickee and Lady Moo as part of their Jollibee mascots (Milestones &
History, 2014).

In 1984, champ hamburger was launched and Mascots Champ and Hetti were
introduced. On the same year, Jollibee hit P500 million sales mark, making them
become one of the top 500 Philippine Corporation. In 1985, Langhap-Sarap was

awarded most effective ad campaign in the food category during the 9th Philippine
Advertising Congress.

In 1986, Tony Tan won the Agora Award for entrepreneurship given by the
Philippine Marketing Association. Also, Jollibee had their first international venture at
Taiwan (Milestones & History, 2014). After a year, the store in Taiwan increased their
profit by a huge amount, reaching about 570 million sales. This made them gain a spot
in the Top 100 Corporations, thereby encouraging them to open another branch in
Taiwan and their 1st outlet in Brunei.
In 1991, Jollibee received award for the outstanding Corporate Safety
Consciousness Programs by the Safety Organization of the Philippines (SOP). Jollibee
have maintained their sales in the span of 10 years that led them to become the first
fast food chain to surpass billion-peso sales mark because the sales hit P1.3 billion
sales marks in 1989. By 1993, JFC had an initial offering of P9.00 per share. However,
during the month of October, their shares were sold for P20.00 which were a windfall or
more than 135%. As JFC continued their successful operations, they have also made
improvements with their soft serve ice cream line by presenting their newly made fruit
flavored ice cream. On top of that, they have introduced the Kiddie Pack Promo.
Concerning their marketing, they have created an advertising campaign, At Home Ako
sa Jollibee, which focused on their loyal customers. JFC has then moved their Main
Office location in Ortigas Center, Pasig. Moreover, Jollibee expanded into the pizzapasta segment with the acquisition of Greenwich Pizza Corporation on the same year
(Milestones & History, 2014).

The company's trademark food products are the Champ, Chicken Joy, Yum and
the like. The company even has local and international stores, sourcing its raw materials
both local and abroad. Additionally, JFC operates commissaries in Laguna and Cebu;
these two serves as a centralized system that conduct sourcing to distribution
operations (Milestones & History, 2014).
By the year 1995-1999, Jollibee has acquired a franchise of Delifrance and
Chowking Foods Corporation, and has opened several stores abroad like in Guam,
Dubai, Kuwait, etc. Furthermore, Jollibee system wide sales rose to P8.29 billion;
this renders a market share of greater than 50% among the other hamburger fast
food chains. A semi-self-service restaurant and another Jollibee subsidiary, named
Marys Chicken, was also built (Milestones & History, 2014).

In the year 2008, Jollibee has marked its 30 years of operations. Jollibee
organized the 30th anniversary special novelty offering, Hug and Share doll, wherein
proceeds from this sale were donated to charity. Biggest and grandest MaAga ang
Pasko also caps off their 30th anniversary, obtaining a total of more than 117,000
toys and books which were the highest ever in the campaigns 14-year history.
Moreover, Jollibee commenced with the first childrens TV show in the country to be
produced by a fast food chain - Jollitown. Lastly, TTC and ETM have been featured
by BBC and CNBC Managing Asia, respectively (Milestones & History, 2014).


Data Table
Name of corporation/s


Nature of business

Food, beverage and tobacco

Board of Directors

Tony Tank Caktiong

Ernesto Tanmantiong
William Tan Untiong
Ang Cho Sit
Antonio Chua Poe Eng
Ret. Chief Justice Artemio Panganiban
Felipe B. Alfonso (Independent
Monico Jacob (Independent Director)
Cezar P. Consing (Independent

Chairman of the board

Tony Tan Caktiong

President of corporation

Tony Tan Caktiong

Types of stock authorized to issue

Ordinary Share(Common Stock)

Number of authorized issues


Par value/s

P10 and P1

Number of shares issued


Number of shares subscribed


Number of shares in treasury


Cost of treasury per share

P 10.97

Method of recording treasury

At cost

Total retained earnings


Free accumulated profits


Appropriated accumulated profits


Kind of appropriations

Future Expansion

Cash dividends declared


Stock dividends distributable


Date stock dividends are distributed

December 31, 2012

Net income/loss during the year



The Board of Directors of Jollibee Corporation comprises of Tony Tan Caktiong,

Ernesto Tanmantiong, William Tan Untiong, Ang Cho Sit, Antonio Chua Poe Eng,Ret.
Chief Justice Artemio Panganiban, Felipe Alfonso, Monico Jacob, and Cezar Consing.
Moreover, the board is spearheaded by Tony Tan Caktiong who serves as the
Chairman of the Board and the President or the Chief Executive Officer (CEO) (JFC,
2012). With regard to the other members, Tanmantiong is the Treasurer and Chief
Operating Officer while Tan Untiong is the Corporate Secretary. On the other hand, the
other board of directors are under five different Board Committees, namely Executive
Committee, Nomination Committee, Compensation Committee, Audit Committee and
Finance Committee (JFC, 2012).
The Jollibee Group only issues one kind of stock, called the ordinary share or
common stock. This means that ordinary shareholders are entitled with the right to vote

and to receive the remaining dividends once dividends on preferred shares have been
paid (Investopedia, 2014).
There are Php 1.45 billion authorized shares of the corporation, and the par
values are Php 1 and Php 10. There are 1 billion shares issued, and also Php 1 billion
subscribed shares. The company acquires treasury shares, and the acquisitions of
these treasury shares are recorded at cost. The total retained earnings or accumulated
profits of Jollibee in the year 2012 is PhP 14.2 billion consisting of Php 13 billion free
accumulated profits and Php 1.2 appropriated accumulated profits for plant expansion
purposes. For the year 2012, the Jollibee Corporation has declared PhP 2.3 billion cash
Net income for the year was recorded at PhP3.7 billion, an increase of PhP 459.3
million or 12.4%, from the net profit last 2011 mainly due to lower raw material
expenses, more efficient marketing expenditure, and lower income taxes resulting to
higher consumption.
Furthermore, the company acquires treasury shares. Reacquiring shares is
important since it improves earnings through reducing the outstanding shares of the
corporation (shares issued and have the right to receive dividends in case of
declaration); it supports market price for share capital; it invests excess cash
temporarily; and increases the value of the corporation (Treasury Shares, 2014). The
method they follow in recording the acquisition of these treasury shares is cost method.
Cost method incorporates the principle of recording treasury shares by the amount they
were reacquired from delinquent subscribers.

The Statement of Changes in Shareholders Equity is a financial statement which

breaks down into more detail the changes in stockholders equity that occurred during
the year or a given period. The more complicated and diverse the equity structure is, the
more significant the statement becomes. It gives an option and at the same time
resolves several kinds of share transactions and effects on the accumulated profits.


The Jollibee Foods Corporations Statement of Changes in Stockholders Equity
follows the format taught in class although there were a few differences regarding the
particulars used. In addition, there were twelve column headings in the corporations
Statement of Changes in Stockholders Equity which is a larger amount compared to the
seven headings taught in class. Their column headings include:
Capital Stock Since the Jollibee Corporation issues only one kind of stock, it is
a common stock.

Subscriptions Receivable It is the amount of contract price collectible from the

Additional Paid-In CapitalThis account represents the excess of payment by an
investor over the par value price of a stock issue.
Cumulative Translation Adjustments of Subsidiaries
Unrealized Gain (Loss) on Available-for-Sale Financial Assets- These are the
unrealizable amounts on available-for-sale securities.
Excess of Acquisition Cost over the Carrying Value of Minority Interests
Retained Earnings- These are funds kept and reinvested in the business.
a.) Appropriated for Future Expansion- amount set aside for a certain purpose.
b.) Unappropriated also called free, is the amount available for dividend
Cost of Common Stock Held in TreasuryTreasury Shares are shares
reacquired by the company. It is buying back common stock and the ownership
rights of the company.

The notes to financial statements of Jollibee Corporation include disclosures on

corporate social responsibility such as pension benefits and share-based payments.
According to the annual report, The Jollibee Group has a number of funded, noncontributory pension plans, administered by trustees, covering the permanent
employees of the Parent Company and its Philippine-based subsidiaries.



Through the simple research conducted, the researchers were able to

gain insights regarding corporations. Based on the data gathered from Jollibee Foods
Corporation (JFC), they have come to know that a corporation is formed and legalized
through the completion of several requirements, such as the Articles of Incorporation or
Corporate Charter and By-laws, as stated by the Securities and Exchange Commission.
According to the Corporation Code of the Philippines, these information should be
included in the necessary documents:
At least 3 corporate names;
Purpose of the corporation;
Location of the Main Office;
Corporate term (corporation must exist for 50 years, and may opt to renew for another
50 years or for as long as they want to);
5 to 15 incorporators (information includes their nationalities and residences);
Maximum number of shares a corporation can issue to the public (known as authorized
capital stock); and
Names of subscribers, the number of shares they are subscribed to, and the amount of
subscription (at least 25% of the subscribed shares must be paid).
In addition, a corporation must record every business transaction to determine
their performance, changes in equity, cash flow, and financial position.
First, they must determine whether they are able to retrieve back more than the amount
of cash they have disbursed (whether there was net gain or net loss) to monitor their

Second, as indicated in JFCs 2012 annual report, they need to note the number and
amount of shares issued, subscribed, reacquired, and reissued as well as the excess
payment over the par value of shares, and the free and appropriated accumulated
profits. All of these are necessary in knowing the changes in equity for these enable the
corporation to identify the amount of dividends declared to a shareholder, and to
perceive if ever there would be risks in the future and if they have sufficient resources
for future transactions.
Third, overseeing the flow of cash for every operating, investing, and financing activity
helps the corporation in assessing how they can maximize their assets and at the same
time minimize their expenses.
Fourth and last, analyzing the financial position of the corporation concerns the status of
their assets, liabilities, and equity (Business Dictionary, 2014). In this essence, it can be
deduced that knowing the financial position of the corporation is definitely important
since it provides them information regarding whether or not the business overall
operations is under control.
To sum up everything that has been discussed, a corporation can only operate if every
stakeholder is willing to work efficiently and effectively in order to accomplish their
mission and vision. Every stakeholder must also watch out for his or her actions since
even a little mistake can subsequently lead to a major crisis.



2012 Annual Report of Jollibee Foods Corporation http://www.jollibee.com.ph/wpcontent/uploads/2013/05/JFCS_CFS1212_Jollibee_SEC_copy.pdf --- see attached PDF


Business Dictionary. (2014). Financial Position. Retrieved from

Investopedia. 2014. Ordinary Shares. Retrieved from
Jollibee Foods Corporation Board of Directors and Officers 2012-2013. (2012, June 25)
Affordable Cebu. Retrieved from
Jollibee Food Corporation[JFC]. (2014). A Euromoney Institutional Investor
company[EMIS]. Retrieved from
Milestones & History (2014). Jollibee. Retrieved from