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This document contains notes to the financial statements of SleepBox Corporation for the years ending December 31, 2022 through 2018. Note 1 provides information on the company and its operations focusing on hotel accommodation services in Davao City. Note 2 outlines the company's significant accounting policies for items such as cash, receivables, property and equipment, revenue and expense recognition. Note 3 discusses management's significant accounting judgments and estimates including depreciation estimates for property and equipment.
This document contains notes to the financial statements of SleepBox Corporation for the years ending December 31, 2022 through 2018. Note 1 provides information on the company and its operations focusing on hotel accommodation services in Davao City. Note 2 outlines the company's significant accounting policies for items such as cash, receivables, property and equipment, revenue and expense recognition. Note 3 discusses management's significant accounting judgments and estimates including depreciation estimates for property and equipment.
This document contains notes to the financial statements of SleepBox Corporation for the years ending December 31, 2022 through 2018. Note 1 provides information on the company and its operations focusing on hotel accommodation services in Davao City. Note 2 outlines the company's significant accounting policies for items such as cash, receivables, property and equipment, revenue and expense recognition. Note 3 discusses management's significant accounting judgments and estimates including depreciation estimates for property and equipment.
As of December 31, 2022, 2021, 2020, 2019 and 2018
Note 1-CORPORATE INFORMATION
SleepBox is a hotel business registered in the Philippines. It is operated by SleepBox
Corporation, which is duly registered with the Securities and Exchange Corporation having a life of fifty (50) years. SleepBox is intended primarily to accumulate profits by providing accommodation services to transients doing business, leisure activities and other undertakings in Davao City. Its operations centers on accepting guests, providing high-quality and competent sleeping quarters and developing more innovative service practices. The firm’s principal office is located at __________________.
Note 2-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2.1 Basis of Preparation of Financial Statements
The accompanying financial statements are prepared in conformance with Philippine Financial Reporting Standards (PFRS) for each type of asset, liability, shareholder’s equity, revenues and expenses. The historical basis is used in preparing these statements. The amounts are presented in Philippine peso, which is used as the functional currency. 2.2 Cash and Cash Equivalents
This line item includes Cash on Hand, Cash in Bank, Petty Cash and Payroll Fund.
a. Cash on Hand represents the collections awaiting deposit to the bank.
b. Cash in Bank refers to the money deposited in the bank under the name of the corporation. c. Petty Cash represents the money allocated for minor disbursements for the use in its operations handled by the General Manager. d. Payroll Fund represents the amount set aside for the payment of salaries. 2.3 Trade and Other Receivables This line item only includes Subscriptions Receivable which are receivables coming from share subscriptions collectible within one (1) year from the reporting date. 2.4 Property, Plant and Equipment These assets are carried at cost less accumulated depreciation with the exception of Land. Depreciation is computed on a straight-line method over the estimated useful life of the assets. (PAS 16) 2.5 Organization and Borrowing Costs Organization costs are recognized prior to the start of the operations and borrowing costs are computed from the time the loan is received which is 6 months prior to start of the reporting year. 2.6 Revenue and Expense Recognition Revenue is recognized upon the receipt of cash or on cash-basis. It only includes the gross inflow of economic benefits received by the entity. Expenses are recognized as incurred or treated as prepaid expense depending on the materiality and usage of such. 2.7 Subsequent Events Subsequent events, which have material adjusting effect on the firm’s financial statements, will be reflected accordingly. Material non-adjusting subsequent events are disclosed in the notes to financial statements. NOTE 3- MANAGEMENT’S SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES Judgments The preparation of the Company’s financial statements in conformity to the Philippine Financial Reporting Standards requires management to make estimates and assumptions used in the Company’s financial statements are based upon management’s evaluation of relevant facts and circumstances as of the date of the Company’s financial statements. Actual results could differ from such estimates, 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 the circumstances. Estimates In the application of the Company’s accounting policies, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The following represents a summary of the significant estimates and judgments used in the Company’s financial statements: a. Estimated Useful Lives and Depreciation of PPE The Company estimates the useful lives of property, plant and equipment based on the period over which the property and equipment are expected to be available for use. The estimated useful lives of the property, plant and equipment 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 property, plant and equipment. In addition, the estimation of the useful lives of property, plant and equipment is based on industry practice and internal assessment. Depreciation is computed on the straight-line method, based on the estimated useful lives of the assets as follows: *****