[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-173306-105":53,"doc-detail-173306-en":127},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":120,"head_meta":122,"extra_data":124,"updated_unix":126},105,"en","observations-and-recommendations-financial-issues","OBSERVATIONS AND RECOMMENDATIONS - Financial Issues","","Observations and recommendations address financial reporting issues in LBP’s consolidated financial statements as at December 31, 2022. Unreconciled intragroup receivable and payable accounts totaling P7.069 million and P70.346 million were not fully eliminated, impacting faithful representation of account balances and contravening PAS 1 and PFRS 10 guidance. The document details the receivable and payable components across subsidiaries and management’s proposed actions, including establishing reconciliation timelines, issuing guidelines, and centralizing related processing through EO 013 series of 2023.",{"@graph":63,"@context":119},[64,80,102],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":11,"@type":70,"position":76},"https://docshare.wps.com/template/presentations/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/observations-and-recommendations-financial-issues/173306/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/observations-and-recommendations-financial-issues/173306.png","ImageObject",442,249,{"name":88,"@type":89},"Aditya","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/vnd.openxmlformats-officedocument.wordprocessingml.document","2026-10-19","2026-09-01",true,{"@type":98,"interactionType":99,"userInteractionCount":101},"InteractionCounter",{"@type":100},"ViewAction",10,{"@type":103,"mainEntity":104},"FAQPage",[105,111,115],{"name":106,"@type":107,"acceptedAnswer":108},"What is the main financial issue observed in LBP’s consolidated financial statements for December 31, 2022?","Question",{"text":109,"@type":110},"Unreconciled intragroup receivable and payable balances were not fully eliminated, affecting the faithful presentation of account balances.","Answer",{"name":112,"@type":107,"acceptedAnswer":113},"What guidance did the unreconciled balances contradict?",{"text":114,"@type":110},"The issue is stated as contrary to paragraph 10 of PAS 1 and Item c of paragraph B86 of the PFRS 10 Application Guidance.",{"name":116,"@type":107,"acceptedAnswer":117},"What actions did management agree to in response to the observation?",{"text":118,"@type":110},"Management agreed to reconcile intragroup receivables and payables within specified timelines, formulate and comply with periodic reconciliation guidelines, and centralize processing/payment for certain third-party services via EO 013 s. of 2023.","https://schema.org",{"og:url":78,"og:type":121,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":123,"canonical":78},"index,follow",{"doc_id":125,"site_id":56},173306,1791742237,{"code":4,"msg":5,"data":128},{"doc_id":125,"user_id":129,"nickname":88,"user_avatar":130,"doc_module":9,"category_id":8,"category_name":11,"doc_title":59,"doc_description":61,"doc_content":131,"file_id":132,"file_url":133,"file_type":134,"file_size":135,"view_count":101,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":136,"language":137,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":138,"faqs":139,"seo_title":140,"seo_description":61,"update_tm":141,"read_time":142},962085564549,"https://ap-avatar.wpscdn.com/davatar_085a072bc5b1113ac321206ff7593b45","OBSERVATIONS AND RECOMMENDATIONS\nFINANCIAL ISSUES\nUnreconciled intragroup receivable and payable accounts, amounting to P7.069 million and P70.346 million, respectively, were not fully eliminated in the Bank’s consolidated financial statements as at December 31, 2022, contrary to paragraph 10 of PAS 1 and Item c of paragraph B86 of the Application Guidance of the PFRS 10; thus affecting the fair presentation of the balances of accounts in the financial statements.\nParagraph 15 of Philippine Accounting Standards 1 provides that:\nFinancial statements shall present fairly the financial position, financial performance and cash flows of an entity. Fair presentation requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expense set out in the Framework.\nItem c of paragraph B86 of the Application Guidance of the Philippine Financial Reporting Standard (PFRS) 10, on consolidated financial statements, provides:\nEliminate in full intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between entities of the group (profits or losses resulting from intragroup transactions that are recognised in assets, such as inventory and fixed assets, are eliminated in full). x x x\nThe intragroup assets consist of Accounts Receivable (AR), Accrued Interest Receivable, Miscellaneous Asset-Others, Contracts Receivable (CR), Retention Receivable (RR) and Loans/Lease Receivable, while the intragroup liabilities consist of Accounts Payable (A/P), Accrued & Other Expense Payable (AOEP), Finance Lease Payable, Deposit on Lease Contracts, Miscellaneous Liabilities, Bills Payable, Accrued Interest Payable, Other Deposits, Advances from Clients, and Retention Payable in either LBP or subsidiaries’ books of accounts.\nIn the preparation of consolidated financial statements (FS), the balance of each account of the LBP and its subsidiaries are summed up line by line and thereafter the account balances and transactions are eliminated to come up with the consolidated FS of the LBP Group.\nVerification of the balances of receivables and payables from/to subsidiaries in the LBP books against the corresponding payables and receivables to/from LPB in subsidiaries books disclosed unreconciled variances amounting to P7,069,412.26 receivables from and P70,345,520.68 payables to subsidiaries, respectively, which were not fully eliminated in the consolidated FS as at December 31, 2022. Details as follows:\nManagement informed that a memorandum dated December 12, 2022 concerning the setting up of accruals on LBP subsidiaries billings on a monthly basis was issued to all units. Other than this advisory, there were no other written guidelines to be followed for consistency of application and compliance on reconciliation of intragroup receivables and payables within specified timelines by the parent and the subsidiaries.\nThe receivable from OFB of P5,949,774.85 are still undergoing reconciliation, while P1,119,637.41 from LBP Resources and Development Corporation (LBRDC) and LBP Leasing and Finance Corporation (LLFC) relates to the difference in accounting between parent and subsidiary, adjustments made by the parent that were not recorded in the subsidiary books. The total P70,345,520.68 payables to LBRDC and LLFC, on the other hand, all remain unreconciled.\nThese unreconciled variances in the intragroup receivables and payables accounts between LBP and three (3) subsidiaries amounting to P7.069 million and P70.346 million, respectively, as at December 31, 2022, which were not fully eliminated in the consolidation affected the faithful representation of the account balances in the consolidated FS of the LBP group, contrary to PAS 1 and PFRS 10.\nWe recommended and Management agreed to:\nContinue to establish within specified timelines the balances of receivables from and payables to the subsidiaries by v","cbCaidSYaq5aPTBl","https://ap.wps.com/l/cbCaidSYaq5aPTBl","docx",191781,62,"English","# Financial Issues\n## Intragroup accounts not fully eliminated\n## Detailed receivables and payables variances\n## Management recommendations and commitments","[{\"question\":\"What is the main financial issue observed in LBP’s consolidated financial statements for December 31, 2022?\",\"answer\":\"Unreconciled intragroup receivable and payable balances were not fully eliminated, affecting the faithful presentation of account balances.\"},{\"question\":\"What guidance did the unreconciled balances contradict?\",\"answer\":\"The issue is stated as contrary to paragraph 10 of PAS 1 and Item c of paragraph B86 of the PFRS 10 Application Guidance.\"},{\"question\":\"What actions did management agree to in response to the observation?\",\"answer\":\"Management agreed to reconcile intragroup receivables and payables within specified timelines, formulate and comply with periodic reconciliation guidelines, and centralize processing/payment for certain third-party services via EO 013 s. of 2023.\"}]","OBSERVATIONS AND RECOMMENDATIONS - Financial Issues | DOCX",1788302289,22]