FINMAN STAR HOTEL AND RESTAURANT CORPORATION
BONIFACIO ST., QUEZON CITY, METRO MANILA
STATEMENT OF MANAGEMENT'S RESPONSIBILITY
FOR FINANCIAL STATEMENTS
The management of FINMAN Star Hotel and Restaurant Corporation is responsible for the
preparation and fair presentation of the financial statements including the schedules attached
therein for the years ended December 31, 2020 and 2019 in accordance with the prescribed
financial reporting framework indicated therein and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the entity's ability to
continue as a going concern, disclosing, as applicable matters related to going concern and using
the going concern basis of accounting unless management either intends to liquidate the entity or to
cease operations, or has no realistic alternative to do so.
The Board of Directors is responsible for overseeing the entity's financial reporting process.
The Board of Directors reviews and approves the financial statements including the schedules
attached therein, and submits the same to the shareholders.
JUAN DELA CRUZ, CPA, the independent auditor appointed by the Board of Directors, has
audited the financial statements of the business in accordance with the Philippine Standards on
Auditing in her report to the Board of Directors, has expressed her opinion on the fairness of
presentation upon completion of such audit.
PETER PARKER
Chief Executive Officer / President
JOHN WICK
Secretary
BRUCE WAYNE
Treasurer
Signed on this ___ day of
,2021.
FINMAN STAR HOTEL AND RESTAURANT CORPORATION
BONIFACIO ST., QUEZON CITY, METRO MANILA
STATEMENT OF MANAGEMENT'S RESPONSIBILITY
FOR INCOME TAX RETURN
The Management of FINMAN Star Hotel and Restaurant Corporation is responsible for all
information and representations contained in the Income Tax Return for the year ended December
31, 2020. Management is likewise responsible for all information and representations contained in
the financial statements and all attachments accompanying the quarterly Income Tax Return
covering the same reporting period. Furthermore, the Management is responsible for all
information and representations contained in all the other tax returns filed for the reporting period,
including, but not limited, to the value added tax returns, withholding tax returns, documentary
stamp tax returns, and any and all other tax returns.
In this regard, the Management affirms that the attached audited financial statements for the year
ended December 31, 2020 and the accompanying Income Tax Return are in accordance the books
and records of FINMAN Star Hotel and Restaurant Corporation, complete and correct in all
material Management likewise affirms that:
1. The Income Tax Return has been prepared in accordance with die provisions of the
National Internal Code, as amended, and pertinent tax regulations and other issuances of
the Department of Finance and the Bureau of Internal Revenue;
2. Any disparity figures in die submitted reports arising from the preparation of financial
statements pursuant to financial accounting standards in the preparation of the income tax
return pursuant to tax accounting rules has been reported as reconciling items and
maintained in the company's books and records in accordance with the requirements of
Revenue Regulations No. 8-2007 and other relevant issuances;
3. FINMAN Star Hotel and Restaurant Corporation has filed all applicable returns,
reports and statements required to be filed under Philippine tax laws for the reporting
period, and all taxes and other impositions shown thereon to be due and payable had been
paid for the reporting period, except those contested in good faith.
PETER PARKER
Chief Executive Officer / President
JOHN WICK
Secretary
BRUCE WAYNE
Treasurer
Signed on this ___ day of
,2021.
FINMAN STAR HOTEL AND RESTAURANT CORPORATION
BONIFACIO ST., QUEZON CITY, METRO MANILA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020 and 2019
(Amounts in Philippine Pesos)
1. GENERAL INFORMATION
FinMan Star Hotel and Restaurant Corporation has the primary purpose of engaging in the business of hotel,
accommodations, recreational and social activities, restaurant and catering services and like activities.
It is a duly registered company with the Securities and Exchange Commission on the 2nnd day of April 2014 under the
registration No. 12345678 and thereby granted all the express powers of a corp[oration as provided for under Section 36
of the Corporation Code of the Philippines.
The Corporation’s principal office is located as the Bonifacio St. Quezon City, Metro Manila, Philippines.
FinMan Star Hotel and Restaurant Corporation has five (5) shareholders who are all citizens and residents of the
Philippine and it is authorized to issue Php 25,000,000.00 common capital stock with a par value of Php 100.00 per stock.
As of December 31, 2020, the Corporation has 100% issued share capital of the authorized capital.
The Financial Statements for the year ended December 31, 2020 including the figures for the year ended December 31,
2019 was authorized for issue by the Board of Directors on February 28, 2021.
2. MANAGEMENT'S SIGNIFICANT ACCOUNTING JUDGMENT AND ESTIMATES
2.1 Judgments
The preparation of the business entity's financial statements in with Financial Reporting Framework (in to the Generally
Accepted Accounting Principles of the Philippines) requires management to make estimates and assumptions that
affect the amounts reported in die business entity's financial statements and accompanying notes. The estimates and
assumptions used in the business entity's financial statements are based upon management's evaluation of the relevant
facts and circumstances as of the date of the business entity's financial statements. Actual results could differ from such
estimates. Judgments and estimates are conditionally evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the circumstances.
2.2 Estimates
In the application of the business entity's accounting policies, management is required to make judgments, estimates
and assumptions about the carving amounts of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience and other factors that are considered to
be relevant. Actual results may differ from these estimates
The estimates and underlying assumption are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which these estimates 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 and related impact and associated risks
in the business entity's financial statements

Provision for Probable Losses on Loans
There is no provision for probable losses on receivables maintained by the entity to provide for potentially uncollectible
receivables because all of the receivables are current It is the policy of owners to periodically its' receivables and any
items which is ascertained to be non-collectible shall be written-off from the books.

Impairment of Financial Assets at Fair Value
The Corporation follows the guidelines of PAS 39 in determining when an asset is other than temporarily impaired. This
determination requires significant judgment. In making this judgment , the corporation evaluates among the factors,
the duration and extent to which the fair value of an investment is less than its cost. The financial health of the near
term business outlook of the investee, including factors such as industry and sectors performance, changes in
technology and operational and financing cash flows.
If the assumption made regarding the duration that, and extent to which he fair value is less than the coat, the
corporation would suffer a additional loss in tits financial statements, representing he write down of cost t its fair value.

Amortization of Intangible Assets
The business entity follows the guidelines of PAS 38 in determining the life and impairment intangible assets. This
determination requires significant judgment. In making this judgment, the business entity evaluates, among other
factors, the duration and extent to which the recoverable amount of the intangible asset is higher of fair value less cost
of disposal and value in use- Fair value is the price that would be received to sell an asset or paid to transfer liability in
an orderly transaction between market participants at the measurement date. Value in use is the present value of the
future cash flows expected to be derived from an asset.
Amortization is the systematic allocation of the amortizable amount of an intangible asset over the useful life.
entity uses three (3) years useful life to amortize its intangible assets.
The
Estimated Useful Lives of Property, Plant and Equipment
The business entity estimates that the useful lives of property, plant and equipment based on the period over which the
property, plant and equipment are expected to be available for use. The estimated useful lives of 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 the property, plant and
equipment In addition, the estimation of the useful lives of property, plant and equipment is based on the collective
assessment of industry practice, internal technical evaluation and experience with similar assets. It is possible, however,
that future performance could be materially affected by changes in the estimates brought about by changes in factors
mentioned above. The amounts and timing of recorded expenses for any period would be affected by changes in these
factors and circumstances.
A reduction in estimated useful lives of the property, plant and equipment would increase the recorded expenses and
decrease the non-current assets while an increase in their estimated useful lives would decrease the recorded expenses
and increase the non-current assets.
Depreciation is computed on a straight-line method over the estimated useful lives of the assets as follows:
Property & Equipment
Number of Years
Building and Improvements
30
Transport vehicle
8
Furniture and Fixtures
15
Office and Other Equipment
3-5
The business entity assesses the value of the property, plant and equipment which require the determination of future
cash flows expected to be generated from the continued use and ultimate disposition of such assets and require the
business entity to make estimates and assumptions that can materially affect the financial statements. Future events
could cause the business entity to conclude that property, plant and equipment and other long-lived assets are
impaired. Any resulting impairment loss could have a material adverse impact on the business entity's financial
condition and results of operations.
The preparation of the estimated future cash flows involves significant judgment and estimations. While the business
entity believes that its assumptions are appropriate and reasonable, significant changes in these assumptions may
materially affect the business entity's assessment-of recoverable values and may lead to future additional impairment
charges.
Revenue Recognition
The entity's revenue recognition policies require the use of estimates and assumptions that may affect the reported
amounts of revenues and receivables. Differences between the amounts initially recognized and actual settlements are
taken up on the accounts upon reconciliation. However, there is no assurance that such use of estimates may not result
to material adjustments in future periods.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
To facilitate the understanding of the financial statements, the more significant accounting policies and practices of the
business entity are summarized as follows:
3.1. Basis of Preparation/Partial Adoption of New/Revised Philippine Accounting Standards
The financial statements have been prepared in conformity with Financial Reporting Standards applicable to business
entities in the Philippines:
PAS I — Preparation of Financial Statements
PAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors
PAS 10 —Events after balance Sheet Date
PAS 36 — Impairments of Assets
PAS 7 — Cash Flow Statements
PAS 18 — Revenue
PAS 32, 39 — Financial Instruments
PAS 1 — Presentation or Financial Statements
Provides the framework of financial statements presentation. It more balance sheet line items (tax liabilities, provisions,
non-current interest bearing debt, among others).
PAS 8 — Accounting Policies, Changes in Accounting Estimates and Errors
The standard is applied in selecting and applying accounting policies, changes in accounting policies, changes in
accounting estimates and correction of prior period errors.
PAS 10 — Events after balance Sheet Date
The standard is applied in the accounting for and disclosure of events after balance sheet date.
PAS 36 — Impairments of Assets
This standard applies in accounting for the impairment of assets other than those covered by separate standards.
PAS 7 — Cash Flow Statements
Prescribes the provision of information about the historical changes in cash and cash equivalents of an entity by means
of a cash flow statement which classifies cash flows during the period from operating, investing and financing activities.
PAS 18— Revenue
Prescribes the accounting treatment for revenue arising from certain types of transactions and events.
PAS 32, 39— Financial Instruments
Prescribes the accounting treatment, presentation and disclosure requirements for financial instruments.
3.2. Basis of Accounting
The financial statements have been prepared on the basis of historical cost conventions.
3.3. Functional and Presentation Currency
Items included in the business entity's financial statements are measured using the currency of the primary economic
environment in which the entity operates in (the "functional currency"). The financial statements are presented in
Philippine Peso, which is the business entity's functional and presentation currency. All values are recorded to the
nearest Philippine peso except when otherwise indicated.
3.4. Revenue Recognition
Revenues is recognized when it is probable that the economic benefits associated with the transaction will flow to the
business entity and the amount of revenue can be measured reliably. Sales and other revenues are recognized on an
accrual basis.
3.5. Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid that are readily convertible to
known amounts of cash and with original maturities of three months or less and are subject to an insignificant risk in
change in value.
3.6. Receivables
Trade and other receivables are non-derivative financial assets with determinable payments that are not quoted in an
active market, and for which the entity has no intention of trading. They are stated at contract price.
3.7. Financial Liabilities
Financial liabilities include bank loans, trade and other payables. These are recognized when the business entity
becomes a party to the contractual agreements of the instrument All interest; related charges are recognized as an
expense in the Statement of Operations under the caption Finance Costs.
Trade payables are recognized at their nominal value.
Financial liabilities are derecognized from the balance sheet only when the are extinguished either through discharge,
cancellation or expiration.
3.8. Impairment or Assets
The carrying amount of the business entity's non-current assets are reviewed at each balance sheet date to determine
whether there is any indication of impairment. If such indication exists, the asset's recoverable amount is estimated.
An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its
recoverable amount
3.9. Costs and Expenses
The preparation of financial statements in accordance with accounting principles generally accepted in the Philippines
requires the business entity to make estimates and assumptions that affect the reported amounts on income, expenses,
revenues, liabilities and disclosures of contingent resources and liabilities. Actual results could differ from those
estimates.
3.10. Income Taxes (PAS 12)
The business entity is obligated to pay all government taxes, and therefore adopts the accounting standards for income
taxes as stated in PAS 12.
3.11. Income Recognition (PAS 18, 39)
As a rule, the business entities adopt the accrual basis of accounting
3.12. Financing Cost
These represent interest expense and charges on Loans Payable and other borrowings made by the business entity. As
of the periods ended, the-e were no business-related loans and borrowing of the entity.
4. FNANCIALRISKMANAGEMENT OBJECTIVES AND POLICES
The business is to credit, liquidity and other risk that may arise in die normal course of its business. Its risk and control
framework includes a focus on minimizing negative effects on the financial performance due to unpredictability of
financial markets that drives the risks.
4.1 Credit Risk
The business entity's management considers that all the above financial asses that are n« impaired past due for each
balance dates are of good quality.
With respect to trade & other receivable, the business is not exposed to any Significant credit risk to any single counter
party or any group of counter parties having similar characteristics. Based on historical information about customer
default rates, consider the quality of receivables that are not past due or impaired to be good.
4.2 Liquidity Risks
Liquidity or funding risk is the risk that an entity will incur difficulty in raising funds to meet commitments associated
with financial instruments Liquidity risk may result from either the inability to sell financial assets quickly at their fair
values; or counter party failing on repayment of contractual obligation; or inability to generate cash flows as anticipated.
In order to minimize liquidity risk, the business maintains sufficient cash and has the availability of funding through an
adequate amount of committed credit facilities.
4.3 Other Price Risk Sensitivity
The business entity's price risk arises from its investments carried at fair value (financial assets classified as financial
assets at fair value through profit or loss and available-for-sale financial assets). It manages its risk arising from changes
in market price by monitoring changes in the market price of the investments.