2020 Definitive Information Statement PDF

COVER SHEET
A 1 9 9 9 1 0 0 6 5
S.E.C. Registration Number
C O L F I N A N C I A L G R O U P , I N C .
(Company's Full Name)
2 4 F E A S T T O W E R P S E C E N T R E
E X C H A N G E R O A D O R T I G A S C E N T E R
P A S I G C I T Y
(Business Address: No. Street City/Town/Province)
Atty. Sharon T. Lim 636-54-11

Contact Person Company Telephone Number
SEC Form 20-IS

1 2 3 1 0 3
Definitive Information Statement
Month Day FORM TYPE Month Day
Fiscal Year Annual Meeting
Secondary License Type, If Applicable
Dept. Requiring this Doc. Amended Articles Number/Section
Total Amount of Borrowings

none
Total Number of Stockholders Domestic Foreign
To be accomplished by SEC Personnel concerned
File Number LCU
Document I.D. Cashier
STAMPS
Remarks = pls. Use black ink for scanning purposes

ANNEX “G”
AUDITED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2019 AND 2018
COVER SHEET
for
AUDITED FINANCIAL STATEMENTS
SEC Registration Number
A 1 9 9 9 1 0 0 6 5
COMPANY NAME
C O L F I N A N C I A L G R O U P , I N C . A N D
S U B S I D I A R I E S
PRINCIPAL OFFICE ( No. / Street / Barangay / City / Town / Province )
U n i t 2 4 0 1 - B E a s t T o w e r , P S E C e
n t r e , E x c h a n g e R o a d , O r t i g a s C
e n t e r , P a s i g C i t y
Form Type Department requiring the report Secondary License Type, If Applicable
1 7 - A C F D B r o k e r
COMPANY INFORMATION
Company’s Email Address Company’s Telephone Number Mobile Number
[email protected] (02) 8636-5411 NA
No. of Stockholders Annual Meeting (Month / Day) Fiscal Year (Month / Day)
33 03/NA 12/31
CONTACT PERSON INFORMATION

The designated contact person MUST be an Officer of the Corporation
Name of Contact Person Email Address Telephone Number/s Mobile Number
Mr. Conrado F. Bate [email protected] (02) 8636-5411 NA

m
CONTACT PERSON’s ADDRESS
Unit 2401-B East Tower, PSE Centre, Exchange Road, Ortigas Center, Pasig City
NOTE 1 : In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission within
thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person designated.
2 : All Boxes must be properly and completely filled-up. Failure to do so shall cause the delay in updating the corporation’s records with the Commission
and/or non-receipt of Notice of Deficiencies. Further, non-receipt of Notice of Deficiencies shall not excuse the corporation from liability for its deficiencies.
*SGVFS039143*
SyCip Gorres Velayo & Co. Tel: (632) 891 0307 BOA/PRC Reg. No. 0001,
6760 Ayala Avenue Fax: (632) 819 0872 October 4, 2018, valid until August 24, 2021
1226 Makati City ey.com/ph SEC Accreditation No. 0012-FR-5 (Group A),
Philippines November 6, 2018, valid until November 5, 2021
INDEPENDENT AUDITOR’S REPORT
The Board of Directors and Stockholders

COL Financial Group, Inc.
Unit 2401-B East Tower, PSE Centre
Exchange Road, Ortigas Center, Pasig City
Opinion
We have audited the consolidated financial statements of COL Financial Group, Inc.
(the Parent Company) and Subsidiaries (the Group), which comprise the consolidated statements of
financial position as at December 31, 2019 and 2018, and the consolidated statements of income,
consolidated statements of comprehensive income, consolidated statements of changes in equity and
consolidated statements of cash flows for each of the three years in the period ended December 31, 2019,
and notes to the consolidated financial statements, including a summary of significant accounting
policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the financial position of the Group as at December 31, 2019 and 2018, and its financial performance and
its cash flows for each of the three years in the period ended December 31, 2019 in accordance with
Philippine Financial Reporting Standards (PFRSs).
Basis for Opinion
We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements section of our report. We are independent of the Group in
accordance with the Code of Ethics for Professional Accountants in the Philippines (Code of Ethics)
together with the ethical requirements that are relevant to our audit of the consolidated financial
statements in the Philippines, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements of the current period. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. For the matter below, our description
of how our audit addressed the matter is provided in that context.
*SGVFS039143*
A member firm of Ernst & Young Global Limited
-2-
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report, in relation to these matters. Accordingly, our
audit included the performance of procedures designed to respond to our assessment of the risks of
material misstatement of the consolidated financial statements. The results of our audit procedures,
including the procedures performed to address the matter below, provide the basis for our audit opinion
on the accompanying consolidated financial statements.
Information Technology Environment Supporting the Stockbrokerage Business
The Parent Company is highly dependent on the reliability and continuity of its information technology
(IT) environment to support the automated data processing of its stockbrokerage business. This IT
environment is key to the Parent Company’s revenue generation and is relied upon in many aspects of its
financial reporting process. We, therefore, considered the testing of the controls over IT processes of the
Parent Company to address the IT process risks as a key audit matter.
Audit response
We performed procedures to obtain an understanding of the Parent Company’s IT environment, which

covers the IT applications and supporting infrastructure, IT processes and IT personnel. We obtained an
understanding and performed testing of the IT controls over program changes to the IT applications, user
access management to the IT applications and databases, and management of IT operations. To the extent
applicable, we performed testing of the design and operation of the IT controls of the applications
supporting the trading-related revenue process and the financial reporting process. We evaluated and
considered the results of the testing of controls in the design and extent of our substantive audit
procedures.
Other Information
Management is responsible for the other information. The other information comprises the information
included in the SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A and Annual Report
for the year ended December 31, 2019 but does not include the consolidated financial statements and our
auditor’s report thereon. The SEC Form 20-IS (Definitive Information Statement), SEC Form 17-A and
Annual Report for the year ended December 31, 2019 are expected to be made available to us after the
date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we will not
express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information when it becomes available and, in doing so, consider whether the other information is
materially inconsistent with the consolidated financial statements or our knowledge obtained in the audits,
or otherwise appears to be materially misstated.
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with PFRSs, and for such internal control as management determines is
necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
*SGVFS039143*
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In preparing the consolidated financial statements, management is responsible for assessing the Group’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 Group or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these consolidated financial statements.
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
· Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control.
· Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
· Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group to cease
to continue as a going concern.
· Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
*SGVFS039143*
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· Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is
Janeth T. Nuñez-Javier.
SYCIP GORRES VELAYO & CO.
Janeth T. Nuñez-Javier
Partner
CPA Certificate No. 111092
SEC Accreditation No. 1328-AR-2 (Group A),
July 9, 2019, valid until July 8, 2022
Tax Identification No. 900-322-673
BIR Accreditation No. 08-001998-69-2018,
February 26, 2018, valid until February 25, 2021
PTR No. 8125274, January 7, 2020, Makati City
March 6, 2020
*SGVFS039143*
COL FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31
2019 2018
Security Valuation Security Valuation
Money Balance Long Short Money Balance Long Short
ASSETS
Current Assets
Cash and cash equivalents (Note 4) P
=8,226,032,009 =8,897,583,382
P
Cash in a segregated account (Note 5) 137,679,325 133,788,336
Short-term time deposits (Note 4) 200,000,000 626,000,000
Financial assets at fair value through profit or loss (Note 6) 4,003,329 P
=4,003,329 3,225,163 =3,225,163
P
Investment securities at amortized cost (Note 8) 200,348,264 –
Trade receivables (Notes 7 and 20) 864,272,801 3,984,013,048 811,048,151 3,472,639,844
Other receivables (Notes 7 and 20) 48,067,874 52,041,067
Prepayments 5,422,562 7,186,335
Other current assets (Note 12) 21,914 –
Total Current Assets 9,685,848,078 10,530,872,434
Noncurrent Assets
Long-term time deposit (Note 4) 200,000,000 200,000,000
Investment securities at amortized cost (Note 8) – 201,564,744
Property and equipment (Note 9) 148,644,922 76,030,681
Investment property (Note 10) 15,758,762 16,634,249
Intangibles (Note 11) 19,522,713 17,400,444
Deferred tax assets (Note 19) 2,096,547 –
Other noncurrent assets (Note 12) 77,221,097 76,108,530
Total Noncurrent Assets 463,244,041 587,738,648
TOTAL ASSETS P
=10,149,092,119 =11,118,611,082
P
Securities in box, in Philippine Depository and Trust Corporation
and Hong Kong Securities Clearing Company, Limited P
=65,716,445,905 P
=64,836,014,077
(Forward)
*SGVFS039143*
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December 31
2019 2018
Security Valuation Security Valuation
Money Balance Long Short Money Balance Long Short
LIABILITIES AND EQUITY
Current Liabilities
Trade payables (Notes 13 and 20) P
=8,185,897,877 P
=61,728,429,528 =9,254,855,350
P =61,360,149,070
P
Lease liabilities - current portion (Note 21) 20,767,513 –
Income tax payable 6,618,090 18,775,269
Other current liabilities (Note 14) 84,968,381 107,152,667
Total Current Liabilities 8,298,251,861 9,380,783,286
Noncurrent Liabilities
Lease liabilities – net of current portion (Note 21) 36,454,605 –
Retirement obligation (Notes 18 and 20) 68,336,052 42,945,228
Deferred tax liabilities (Note 19) – 1,312,743
Total Noncurrent Liabilities 104,790,657 44,257,971
Total Liabilities 8,403,042,518 9,425,041,257
Equity
Capital stock (Note 15) 476,000,000 476,000,000
Capital in excess of par value 53,219,024 53,219,024
Accumulated translation adjustment 14,516,424 21,881,155
Loss on remeasurement of retirement obligation (Note 18) (32,236,855) (15,806,586)
Retained earnings:
Appropriated 332,507,131 276,503,775
Unappropriated (Note 15) 879,945,260 881,772,457
Equity Attributable to the Equity Holders of the Parent Company 1,723,950,984 1,693,569,825
Non-controlling Interest (Note 15) 22,098,617 –
Total Equity 1,746,049,601 1,693,569,825
TOTAL LIABILITIES AND EQUITY P

=10,149,092,119 P
=65,716,445,905 P
=65,716,445,905 =11,118,611,082
P =64,836,014,077
P =64,836,014,077
P
See accompanying Notes to Consolidated Financial Statements.
*SGVFS039143*
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31
2019 2018 2017
REVENUES (Note 16)
Commissions (Note 20) = 539,049,838
P =702,931,280
P =678,725,716
P
Others:
Interest income (Notes 4, 5, 7, 8 and 20) 527,716,977 422,227,848 250,460,547
Trail fees 17,365,097 14,730,081 10,578,055
Trading gains- net (Note 6) 41,501 14,107,532 17,202,792
Others (Note 6) 1,761,520 2,666,112 1,488,176
1,085,934,933 1,156,662,853 958,455,286
COST OF SERVICES
Personnel costs - operations (Notes 17, 18 and 20) 93,662,645 98,870,861 85,287,973
Commission expense (Note 20) 40,387,642 60,620,567 88,976,207
Stock exchange dues and fees (Note 12) 14,771,915 16,505,261 20,760,645
Central depository fees 7,051,621 6,782,983 6,836,230
Research 3,743,136 3,374,658 2,311,047
Others:
Communications 33,522,738 34,536,487 32,318,019
Depreciation (Note 9) 134,902 134,635 159,299
193,274,599 220,825,452 236,649,420
GROSS PROFIT 892,660,334 935,837,401 721,805,866
OPERATING EXPENSES
Administrative expenses:
Personnel costs (Notes 17, 18 and 20) 62,010,240 59,329,902 43,320,968
Professional fees (Note 20) 48,953,170 50,711,036 42,478,126
Management bonus (Note 20) 16,889,521 24,701,098 23,376,289
Advertising and marketing 15,719,591 11,592,176 9,719,249
Taxes and licenses 8,358,190 5,853,764 4,891,861
Security and messengerial services 6,631,905 6,482,716 6,657,462
Power, light and water 5,492,450 5,791,410 4,571,689
Repairs and maintenance 5,123,022 5,215,864 3,844,478
Insurance and bonds 4,928,438 4,078,614 3,479,704
Condominium dues and utilities 4,639,515 3,570,573 2,737,636
Office supplies 3,631,825 3,226,088 3,293,621
Representation and entertainment 3,114,077 3,755,314 3,671,632
Donation 2,000,000 – –
Directors’ fees (Note 20) 1,750,000 1,682,500 870,000
Trainings, seminars and meetings 1,266,387 1,510,387 1,460,946
Membership fees and dues 1,336,837 1,388,886 845,622
Rentals (Note 21) 207,015 22,494,380 17,034,409
Others 4,629,719 4,559,816 5,556,780
196,681,902 215,944,524 177,810,472
Depreciation and amortization (Notes 9, 10, 11 and 21) 58,680,226 25,812,755 22,083,858
Provision for (recovery from) credit losses (Note 7) 614,712 296,943 (10,938,998)
255,976,840 242,054,222 188,955,332
OTHER INCOME (LOSSES)
Interest expense (Notes 18 and 21) (6,201,084) (2,482,293) (1,475,447)
Foreign exchange gains (losses) – net (93,432) 129,256 717,580
Gain on disposal of property and equipment (Note 9) 8,409 – –
Other income (Note 12) – 21,510,020 –
Recovery from (provision for) impairment losses (Notes 11 and 12) – 13,724,200 (20,636,226)
(6,286,107) 32,881,183 (21,394,093)
INCOME BEFORE INCOME TAX 630,397,387 726,664,362 511,456,441
PROVISION FOR (BENEFIT FROM) INCOME TAX (Note 19)
Current
Regular corporate income tax 76,115,523 104,471,111 97,225,712
Final income tax 96,160,900 75,807,941 36,764,607
Deferred (253,812) 33,831,121 (1,255,093)
172,022,611 214,110,173 132,735,226
NET INCOME = 458,374,776
P =512,554,189
P =378,721,215
P
Attributable to:
Equity holders of the Parent Company = 458,776,159
P =512,554,189
P =378,721,215
P
Non-controlling interest (Note 15) (401,383) – –
= 458,374,776
P =512,554,189
P =378,721,215
P
Earnings Per Share (Note 25)
Basic and diluted = 0.96
P =1.08
P =0.80
P
*SGVFS039143*
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

2019 2018 2017
NET INCOME P
=458,374,776 =512,554,189
P =378,721,215
P
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

Item that will not be reclassified to consolidated
statements of income:
Loss on remeasurement of retirement obligation - net of tax
(Note 18) (16,430,269) (4,064,955) (10,861,557)
Item that may be reclassified subsequently to consolidated
statements of income:
Translation adjustments - net of tax (7,364,731) 13,655,969 (1,150,483)
(23,795,000) 9,591,014 (12,012,040)
TOTAL COMPREHENSIVE INCOME P

=434,579,776 =522,145,203
P =366,709,175
P
Attributable to:
Equity holders of the Parent Company P
=434,981,159 =522,145,203
P =366,709,175
P
Non-controlling interest (401,383) – –
P
=434,579,776 =522,145,203
P =366,709,175
P
*SGVFS039143*
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2019, 2018, AND 2017
Equity Attributable to the Equity Holders of the Parent Company

Loss on
Remeasurement
Capital Accumulated of Retirement Retained Earnings
Capital Stock In Excess of Translation Obligation Appropriated Non-controlling
(Note 15) Par Value Adjustment (Note 18) (Note 15) Unappropriated Total Interest (Note 15) Total Equity
Balances at January 1, 2019 = 476,000,000
P = 53,219,024
P = 21,881,155
P (P
= 15,806,586) = 276,503,775
P = 881,772,457
P = 1,693,569,825
P =–
P = 1,693,569,825
P
Non-controlling interest of a new subsidiary – – – – – – – 22,500,000 22,500,000
Total comprehensive income (loss) – – (7,364,731) (16,430,269) – 458,776,159 434,981,159 (401,383) 434,579,776
Appropriation of retained earnings (Note 15) – – – – 56,003,356 (56,003,356) – – –
Declaration of cash dividend (Note 15) – – – – – (404,600,000) (404,600,000) – (404,600,000)
Balances at December 31, 2019 = 476,000,000
P = 53,219,024
P = 14,516,424
P (P
= 32,236,855) = 332,507,131
P = 879,945,260
P = 1,723,950,984
P = 22,098,617
P = 1,746,049,601
P
Balances at January 1, 2018 =476,000,000

P =53,219,024
P P8,225,186
= (P
=11,741,631) =235,590,918
P =743,331,125
P =1,504,624,622
P =–
P =1,504,624,622
P
Total comprehensive income (loss) – – 13,655,969 (4,064,955) – 512,554,189 522,145,203 – 522,145,203
Balances at December 31, 2018 =476,000,000
P =53,219,024
P =21,881,155
P (P
=15,806,586) =276,503,775
P =881,772,457
P =1,693,569,825
P =–
P =1,693,569,825
P
Balances at January 1, 2017 =476,000,000

P =53,219,024
P P9,375,669
= (P
=880,074) =198,811,471
P =686,989,357
P =1,423,515,447
P =–
P =1,423,515,447
P
Total comprehensive income (loss) – – (1,150,483) (10,861,557) – 378,721,215 366,709,175 – 366,709,175
Balances at December 31, 2017 =476,000,000
P =53,219,024
P =8,225,186
P (P
=11,741,631) =235,590,918
P =743,331,125
P =1,504,624,622
P =–
P =1,504,624,622
P
*SGVFS039143*
CONSOLIDATED STATEMENTS OF CASH FLOWS
2019 2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax =630,397,387
P =726,664,362
P =511,456,441
P
Adjustments for:
Interest income (Notes 4, 5, 7, 8, 16, and 20) (527,716,977) (422,227,848) (250,460,547)
Depreciation and amortization (Notes 9, 10, 11 and 21) 58,815,128 25,947,390 22,243,157
Interest expense (Notes 18 and 21) 6,201,084 2,482,293 1,475,447
Retirement costs under ‘Personnel costs’ (Notes 17 and 18) 5,696,718 5,568,707 4,385,708
Unrealized trading losses (gains) - net (Note 6) 805,210 (1,961,296) 103,792
Provision for (recovery from) credit losses (Note 7) 614,712 296,943 (10,938,998)
Dividend income (Note 6) (30,721) (258,706) (230,474)
Gain on disposal of property and equipment (Note 9) (8,409) – –
Other income (Note 12) – (21,510,020) –
Provision for (recovery from) impairment losses
(Notes 11 and 12) – (13,724,200) 20,636,226
Contribution to the retirement fund (Note 18) – (12,719,737) –
Operating income before working capital changes 174,774,132 288,557,888 298,670,752
Decrease (increase) in:
Cash in a segregated account (3,890,989) (44,795,248) 45,925,206
Short-term time deposits 426,000,000 (626,000,000) –
Financial assets at fair value through profit or loss (1,583,376) (86,889) 821,793
Trade receivables (69,031,557) 381,942,484 17,928,442
Other receivables (8,360,464) 108,137,009 44,351,585
Prepayments 1,059,017 (3,434,068) (1,557,124)
Other assets (1,217,611) (55,232,020) (21,239,391)
Increase (decrease) in:
Trade payables (1,064,624,734) (950,153,080) 2,846,725,500
Other current liabilities (21,718,584) (8,272,865) 24,901,180
Net cash generated from (used in) operations (568,594,166) (909,336,789) 3,256,527,943
Interest received 541,244,758 325,973,632 203,047,922
Income taxes paid (184,433,602) (171,572,932) (116,860,333)
Dividends received 30,721 258,706 230,474
Net cash provided by (used in) operating activities (211,752,289) (754,677,383) 3,342,946,006
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of property and equipment (Notes 9) (44,582,863) (29,561,263) (60,966,559)
Acquisitions of software and licenses (Note 11) (5,562,094) (908,299) (3,011,218)
Proceeds from disposal of property and equipment (Note 9) 8,482 – –
Acquisition of held-to-maturity investments (Note 8) – – (203,041,886)
Net cash used in investing activities (50,136,475) (30,469,562) (267,019,663)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends declared and paid (Note 15) (404,600,000) (333,200,000) (285,600,000)
Payment of principal portion of lease liabilities (Note 21) (27,562,609) – –
Proceeds of issuance of shares to the non-controlling interest 22,500,000 – –
Net cash used in financing activities (409,662,609) (333,200,000) (285,600,000)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (671,551,373) (1,118,346,945) 2,790,326,343
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 8,897,583,382 10,015,930,327 7,225,603,984
CASH AND CASH EQUIVALENTS AT
END OF YEAR (Note 4) =8,226,032,009
P =8,897,583,382 P
P =10,015,930,327
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Corporate Information
COL Financial Group, Inc. (the Parent Company or COL Financial) was registered with the
Philippine Securities and Exchange Commission (SEC) on August 16, 1999, primarily to engage in
the business of broker of securities and to provide stockbrokerage services through innovative
internet technology. The registered address of the Parent Company is Unit 2401-B East Tower, PSE
Centre, Exchange Road, Ortigas Center, Pasig City, Philippines.
COL Financial and its subsidiaries are collectively referred hereinto as the “Group”. The Group is
engaged in offering stock brokerage and fund distribution services. The Group is also engaged in
providing financial advice, in the gathering and distribution of financial and investment information
and statistics and in acting as financial, commercial or business representative.
The Parent Company is a public company listed in the Philippine Stock Exchange (PSE).
On August 15, 2006, the Board of Directors (BOD) of the Parent Company approved the acquisition
of the exchange trading right of Mark Securities Corporation for the purpose of making the Parent
Company a PSE Trading Participant. On December 13, 2006, the BOD of PSE approved the
application of the Parent Company as a Corporate Trading Participant in PSE through the transfer of
the exchange trading right registered in the name of Mark Securities Corporation and the designation
of Mr. Conrado F. Bate as its Nominee Trading Participant (Note 11).
The Parent Company became a clearing member of the Securities Clearing Corporation of the
Philippines (SCCP) and started operating its own seat in the PSE on February 16, 2009.
In 2015, the Parent Company was registered and authorized by the SEC to distribute various mutual
funds issued by the top six (6) fund providers in the Philippines.
In 2019, the Parent Company has set up its own asset management firm to diversify its portfolio as a
one-stop shop online platform for capital market products. The Parent Company also plans to create
unitized funds, a type of fund structure that uses pooled funds to invest with individually reported unit
values for investors, which are different from the equity-laced mutual funds that it now distributes
through its platform.
The accompanying consolidated financial statements of the Group as at December 31, 2019 and 2018
and for each of the three years in the period ended December 31, 2019 were authorized for issue in
accordance with a resolution by the BOD on March 6, 2020.
2. Basis of Preparation, Basis of Consolidation and Summary of Significant Accounting Policies
Basis of Preparation
The accompanying consolidated financial statements of the Group have been prepared in accordance
with Philippine Financial Reporting Standards (PFRS). The consolidated financial statements have
been prepared on a historical cost basis, except for financial assets at fair value through profit or loss
(FVTPL) which have been measured at fair value. The Group’s consolidated financial statements are
presented in Philippine peso (PHP), which is the presentation currency under PFRS. Based on the
economic substance of the underlying circumstances relevant to the Group, the functional currency of
the Group has been determined to be Philippine peso, except for COL Securities (HK) Limited
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(COLHK) whose functional currency has been determined to be HK dollar (HK$). All values are
rounded to the nearest peso, except when otherwise indicated.
Basis of Consolidation
The consolidated financial statements comprise the accounts of the Parent Company and its
subsidiaries as at December 31, 2019, after eliminating significant intercompany balances and
transactions. The following are the wholly and majority-owned foreign and domestic subsidiaries of
COL Financial:
Principal Place
of Business and Effective
Country of Percentage of Functional
Name of Subsidiaries Incorporation Ownership Currency
COLHK Hong Kong 100% HK$
COL Investment Management Inc. (CIMI) Philippines 70% PHP
COL Equity Index Unitized Mutual Fund Philippines 100%
Inc. (CEIUMF) PHP
COL Cash Management Unitized Mutual Philippines 100%
Fund Inc. (CCMUF) PHP
Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement
with the investee and has the ability to affect those returns through its power over the investee.
Specifically, the Group controls an investee if and only if the Group has:
· Power over the investee (i.e., existing rights that give it the current ability to direct the relevant
activities of the investee);
· Exposure, or rights, to variable returns from its involvement with the investee; and
· The ability to use its power over the investee to affect the amount of the Parent Company’s
returns.
Generally, there is a presumption that a majority of voting rights result in control. To support this
presumption and when the Group has less than a majority of the voting or similar rights of an
investee, the Group considers all relevant facts and circumstances in assessing whether it has power
over an investee, including:
· The contractual arrangement with the other vote holders of the investee;
· Rights arising from other contractual arrangements; and
· The Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control. Consolidation of a subsidiary
begins when the Group obtains control over the subsidiary and ceases when the Group loses control
of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of
during the year are included in the consolidated financial statements from the date the Group gains
control until the date the Group ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity
holders of the parent of the Group and to the non-controlling interests, even if this results in the non-
controlling interests having a deficit balance. When necessary, adjustments are made to the financial
statements of subsidiaries to bring their accounting policies in line with the Group’s accounting
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policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to
transactions between members of the Group are eliminated in full on consolidation.
A change in the ownership interest of a subsidiary, without loss of control, is accounted for as an
equity transaction.
If the Group loses control over a subsidiary, it derecognizes the related assets (including goodwill),
liabilities, non-controlling interest and other components of equity while any resulting gain or loss is
recognized in profit or loss. Any investment retained is recognized at fair value.
Non-Controlling Interest
Non-controlling interest represents the portion of profit or loss and net assets not owned, directly or
indirectly, by the Parent Company and are presented in the consolidated statements of income,
consolidated statements of comprehensive income, and within equity in the consolidated statements
of financial position, separately from equity attributable to the Parent Company.
Changes in Accounting Policies and Disclosures

The Group applied for the first time certain pronouncements, which are effective for annual periods
beginning on or after January 1, 2019. Adoption of these pronouncements did not have a significant
impact on the Group’s financial position or performance, unless otherwise indicated.
· PFRS 16, Leases

PFRS 16 supersedes Philippine Accounting Standards (PAS) 17, Leases, Philippine Interpretation
IFRIC 4, Determining whether an Arrangement contains a Lease, Philippine Interpretation SIC-
15, Operating Leases-Incentives and Philippine Interpretation SIC-27, Evaluating the Substance
of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the
recognition, measurement, presentation and disclosure of leases and requires lessees to recognize
most leases on the statement of financial position.
Lessor accounting under PFRS 16 is substantially unchanged from today’s accounting under
PAS 17. Lessors will continue to classify all leases using the same classification principle as in
PAS 17 and distinguish between two types of leases: operating and finance leases. Therefore,
PFRS 16 did not have an impact for leases where the Group is the lessor.
The Group adopted PFRS 16 using the modified retrospective approach upon adoption of
PFRS 16 in 2019 and elected to apply the standard to contracts that were previously identified as
leases applying PAS 17 and Philippine Interpretation IFRIC-4. The Group did not apply the
standard to contracts that were not previously identified as containing a lease applying PAS 17
and Philippine Interpretation IFRIC-4.
The effect of adoption of PFRS 16 as at January 1, 2019 is, as follows:
Increase
(decrease)
Assets
Property and equipment =27,129,831
P
Prepayments (652,911)
Liabilities
Lease liabilities 26,476,920
Before the adoption of PFRS 16, the Group classified each of its leases (as lessee) at the inception
date as either a finance lease or an operating lease.
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Upon adoption of PFRS 16, the Group applied a single recognition and measurement approach
for all leases except for leases of low-value assets.
The Group also applied the available practical expedients wherein it:
· Used a single discount rate to a portfolio of leases with reasonably similar characteristics
· Relied on its assessment of whether leases are onerous immediately before the date of initial
application
· Excluded the initial direct costs from the measurement of the right-of-use asset at the date of
initial application
· Used hindsight in determining the lease term where the contract contained options to extend
or terminate the lease
Based on the above, as at January 1, 2019:

· Property and equipment were recognized amounting to = P27,129,831, representing the amount
of right-of-use assets set up on transition date.
· Lease liabilities of P
=26,476,920 were recognized.
· Prepayments of P =652,911 related to previous operating leases arising from straight lining
under PAS 17 were derecognized.
The lease liabilities as at January 1, 2019 can be reconciled to the operating lease commitments as
of December 31, 2018, as follows:
Operating lease commitments as at December 31, 2018 P

=28,375,293
Weighted average incremental borrowing rate as at January 1, 2019 7.12%
Discounted operating lease commitments as at January 1, 2019 P
=26,476,920
Due to the adoption of PFRS 16, the Group’s operating profit in 2019 improved, while its interest
expense increased. This is due to the change in the accounting for rent expense related to leases
that were classified as operating leases under PAS 17.
The adoption of PFRS 16 did not have an impact on equity in 2019, since the Group elected to
measure the right-of-use assets at an amount equal to the lease liability, adjusted by the amount of
any prepaid or accrued lease payments relating to that lease recognized in the consolidated
statement of financial position immediately before the date of initial application.
· Philippine Interpretation IFRIC-23, Uncertainty over Income Tax Treatments

The Interpretation addresses the accounting for income taxes when tax treatments involve
uncertainty that affects the application of PAS 12, Income Taxes. It does not apply to taxes or
levies outside the scope of PAS 12, nor does it specifically include requirements relating to
interest and penalties associated with uncertain tax treatments. The Interpretation specifically
addresses the following:
· Whether an entity considers uncertain tax treatments separately
· The assumptions an entity makes about the examination of tax treatments by taxation
authorities
· How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax
credits and tax rates
· How an entity considers changes in facts and circumstances
The entity is required to determine whether to consider each uncertain tax treatment separately or
together with one or more other uncertain tax treatments and use the approach that better predicts
the resolution of the uncertainty. The entity shall assume that the taxation authority will examine
*SGVFS039143*
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amounts that it has a right to examine and have full knowledge of all related information when
making those examinations. If an entity concludes that it is not probable that the taxation
authority will accept an uncertain tax treatment, it shall reflect the effect of the uncertainty for
each uncertain tax treatment using the method the entity expects to better predict the resolution of
the uncertainty.
Upon adoption of the Interpretation, the Group has assessed whether it has any uncertain tax
position. The Group applies significant judgement in identifying uncertainties over its income
tax treatments. The Group determined that it is probable that its income tax treatments will be
accepted by the taxation authorities. Accordingly, the interpretation did not have an impact on
the consolidated financial statements of the Group.
· Amendments to PFRS 9, Prepayment Features with Negative Compensation

· Amendments to PAS 19, Employee Benefits, Plan Amendment, Curtailment or Settlement
· Amendments to PAS 28, Long-term Interests in Associates and Joint Ventures
· Annual Improvements to PFRSs 2015-2017 Cycle
o Amendments to PFRS 3, Business Combinations, and PFRS 11, Joint Arrangements,
Previously Held Interest in a Joint Operation
o Amendments to PAS 12, Income Tax Consequences of Payments on Financial Instruments
Classified as Equity
o Amendments to PAS 23, Borrowing Costs, Borrowing Costs Eligible for Capitalization
Standards and Interpretations Issued but not yet Effective

Pronouncements issued but not yet effective are listed below. The Group does not expect that the
future adoption of the said pronouncements will have a significant impact on its consolidated
financial statements, unless otherwise indicated. The Group intends to adopt the following
pronouncements when they become effective.
Effective beginning on or after January 1, 2020

· Amendments to PFRS 3, Definition of a Business
The amendments to PFRS 3 clarify the minimum requirements to be a business, remove the
assessment of a market participant’s ability to replace missing elements, and narrow the
definition of outputs. The amendments also add guidance to assess whether an acquired process
is substantive and add illustrative examples. An optional fair value concentration test is
introduced which permits a simplified assessment of whether an acquired set of activities and
assets is not a business.
An entity applies those amendments prospectively for annual reporting periods beginning on or
after January 1, 2020, with earlier application permitted.
These amendments will apply on future business combinations of the Group.
· Amendments to PAS 1, Presentation of Financial Statements, and PAS 8, Accounting Policies,

Changes in Accounting Estimates and Errors, Definition of Material
The amendments refine the definition of material in PAS 1 and align the definitions used across
PFRSs and other pronouncements. They are intended to improve the understanding of the
existing requirements rather than to significantly impact an entity’s materiality judgements.
*SGVFS039143*
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An entity applies those amendments prospectively for annual reporting periods beginning on or
after January 1, 2020, with earlier application permitted.
Effective beginning on or after January 1, 2021

· PFRS 17, Insurance Contracts
Deferred effectivity
· Amendments to PFRS 10, Consolidated Financial Statements, and PAS 28, Sale or Contribution
of Assets between an Investor and its Associate or Joint Venture
The amendments address the conflict between PFRS 10 and PAS 28 in dealing with the loss of
control of a subsidiary that is sold or contributed to an associate or joint venture. The
amendments clarify that a full gain or loss is recognized when a transfer to an associate or joint
venture involves a business as defined in PFRS 3. Any gain or loss resulting from the sale or
contribution of assets that does not constitute a business, however, is recognized only to the
extent of unrelated investors’ interests in the associate or joint venture.
On January 13, 2016, the Financial Reporting Standards Council deferred the original effective
date of January 1, 2016 of the said amendments until the International Accounting Standards
Board completes its broader review of the research project on equity accounting that may result in
the simplification of accounting for such transactions and of other aspects of accounting for
associates and joint ventures.
Summary of Significant Accounting Policies
Foreign Currency Translation

Transactions in foreign currencies are initially recorded in the prevailing functional currency spot rate
at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated
in foreign currencies are translated at the closing functional currency rate of exchange at the reporting
period. All differences are taken to the consolidated statement of income.
On consolidation, the assets and liabilities of the consolidated foreign subsidiary are translated into
Philippine Peso at the rate of exchange prevailing at the reporting date and their statement of income
is translated at the average exchange rates for the year. The exchange differences arising on
translation for consolidation are recognized in equity (under ‘Accumulated translation adjustment’).
Upon disposal of the foreign subsidiary, the component of OCI relating to the foreign subsidiary is
recognized in the consolidated statement of income.
Current versus Non-current Classification

The Group presents assets and liabilities in the consolidated statement of financial position based on
current/non-current classification. An asset is current when it is:
· Expected to be realized or intended to be sold or consumed in a normal operating cycle;
· Held primarily for the purpose of trading;
· Expected to be realized within twelve (12) months after reporting period; or
· Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at
least twelve (12) months after the reporting period.
All other assets are classified as non-current.
*SGVFS039143*
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A liability is current when:

· It is expected to be settled in a normal operating cycle;
· It is held primarily for the purpose of trading;
· It is due to be settled within twelve months after the reporting period; or
· There is no unconditional right to defer the settlement of the liability for at least twelve (12)
months after the reporting period.
The Group classifies all other liabilities as non-current.
Net deferred tax assets (liabilities) are classified as non-current.
Cash and Cash Equivalents, Short-term Time Deposits and Long-term Time Deposit
Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid investments
that are readily convertible to known amounts of cash with original maturities of three (3) months or
less from dates of acquisition and that are subject to insignificant risk of changes in value. Bank
placements and investments with original maturities of more than three (3) months but less than one
year are classified as short-term time deposit while investments with original maturities of more than
one year are classified as long-term time deposit.
Cash in a Segregated Account

Cash in a segregated account represents clients’ monies maintained by COLHK with a licensed bank
arising from its normal course of business.
The asset is recognized to the extent that COLHK bears the risks and rewards related to the clients’
monies deposited in the bank. Similarly, the accompanying liability is recognized to the extent that
COLHK has the obligation to deliver cash to its customers upon withdrawal and is liable for any loss
or misappropriation of clients’ monies.
Financial Instruments - Initial Recognition and Subsequent Measurement

Date of Recognition
Financial instruments are any contracts that give rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. Financial instruments are recognized in the
consolidated statement of financial position when the Group becomes a party to the contractual
provisions of the instrument. Purchases or sales of financial assets that require delivery of assets
within the time frame established by regulation or convention in the marketplace are recognized on
the trade date.
Financial Instruments at FVTPL

Financial assets and financial liabilities at FVTPL are recorded in the consolidated statement of
financial position at fair value. Changes in fair value are recorded in ‘Trading gains (losses) - net’ in
the consolidated statement of income. Interest earned or incurred is recorded in interest income or
expense, respectively, while dividend income is recorded in other revenues according to the terms of
the contract, or when the right of the payment has been established.
Initial Recognition and Classification of Financial Instruments

Financial assets are measured at FVTPL unless these are measured at fair value through other
comprehensive income (FVOCI) or at amortized cost. Financial liabilities are classified as either
financial liabilities at FVTPL or financial liabilities at amortized cost. The classification of financial
assets depends on the contractual terms and the business model for managing the financial assets.
Subsequent to initial recognition, the Group may reclassify its financial assets only when there is a
change in its business model for managing these financial assets. Reclassification of financial
liabilities is not allowed.
*SGVFS039143*
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The Group determines its business model at the level that best reflects how it manages groups of
financial assets to achieve its business objective. The Group’s business model is not assessed on an
instrument-by-instrument basis, but at a higher level of aggregated portfolios. As a second step of its
classification process, the Group assesses the contractual terms of financial assets to identify whether
they pass the contractual cash flows test (SPPI test).
Investment securities at FVOCI

Investment securities at FVOCI include debt and equity securities. After initial measurement,
investment securities at FVOCI are subsequently measured at fair value. The unrealized gains and
losses arising from the fair valuation of investment securities at FVOCI are excluded, net of tax as
applicable, from the reported earnings and are included in the consolidated statement of
comprehensive income as ‘Change in net unrealized loss on investment securities at FVOCI’.
Debt securities at FVOCI are those that meet both of the following conditions: (i) the asset is held
within a business model whose objective is to hold the financial assets in order to both collect
contractual cash flows and sell financial assets; and (ii) the contractual terms of the financial asset
give rise on specified dates to cash flows that are SPPI on the outstanding principal amount. The
effective yield component of debt securities at FVOCI, as well as the impact of restatement on
foreign currency-denominated debt securities at FVOCI, is reported in the statement of income.
Interest earned on holding debt securities at debt securities at FVOCI are reported as ‘Interest
income’ using the effective interest rate (EIR) method. When the debt securities at FVOCI are
disposed of, the cumulative gain or loss previously recognized in the statement of comprehensive
income is recognized as ‘Trading and securities gain (loss) - net’ in the consolidated statement of
income. The ECL arising from impairment of such investments are recognized in OCI with a
corresponding charge to ‘Provision for credit losses’ in the consolidated statement of income.
Equity securities designated at FVOCI are those that the Group made an irrevocable election to
present in OCI the subsequent changes in fair value. Dividends earned on holding equity securities at
FVOCI are recognized in the consolidated statement of income as ‘Dividends’ when the right of the
payment has been established, except when the Group benefits from such proceeds as a recovery of
part of the cost of the instrument, in which case, such gains are recorded in OCI. Gains and losses on
disposal of these equity securities are never recycled to profit or loss, but the cumulative gains or
losses previously recognized in the consolidated statement of comprehensive income is reclassified to
‘Surplus’ or any other appropriate equity account upon disposal. Equity securities at FVOCI are not
subject to impairment assessment.
The Group had no investment securities at FVOCI as at December 31, 2019 and 2018.
Financial assets at amortized cost

Financial assets at amortized cost are debt financial assets that meet both of the following conditions:
(i) these are held within a business model whose objective is to hold the financial assets in order to
collect contractual cash flows; and (ii) the contractual terms give rise on specified dates to cash flows
that are SPPI on the outstanding principal amount. This accounting policy mainly relates to the
consolidated statement of financial position captions ‘Cash and cash equivalents’, ‘Cash in a
segregated account’, ‘Short-term time deposits’, ‘Trade receivables’, ‘Other receivables’, ‘Long-term
time deposit’, ‘Investment securities at amortized cost’ and deposit and refundable contributions to
Clearing and Trade Guarantee Fund (CTGF) and refundable deposits under ‘Other noncurrent assets’,
which arise primarily from service revenues and other types of receivables.
After initial measurement, financial assets at amortized cost are subsequently measured at amortized
cost using the EIR method, less impairment in value. Amortized cost is calculated by taking into
account any discount or premium on acquisition and fees that are an integral part of the EIR. The
amortization is included in ‘Interest income’ in the consolidated statement of income. Gains and
*SGVFS039143*
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losses are recognized in statement of income when these investments are derecognized or impaired,
as well as through the amortization process. The ECL are recognized in the statement of income
under ‘Provision for credit losses’. The effects of revaluation on foreign currency-denominated
investments are recognized in the consolidated statement of income.
Fair Value Measurement

The Group measures financial instruments, such as financial assets at FVTPL, at fair value at each
end of the reporting period. Also, fair values of financial instruments measured at amortized cost are
disclosed in Note 24.
Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. The fair value
measurement is based on the presumption that the transaction to sell the asset or transfer the liability
takes place either:
· In the principal market for the asset or liability, or

· In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the Group. The fair value of an
asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.
The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial
statements are categorized within the fair value hierarchy, described as follows, based on the lowest
level input that is significant to the fair value measurement as a whole:
· Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
· Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
· Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognized in the consolidated financial statements on a recurring
basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-
assessing categorization (based on the lowest level input that is significant to the fair value
measurement as a whole) at each end of the reporting period.
The fair value of equity financial instruments that are actively traded in organized financial markets is
determined by reference to quoted market close prices at the close of business of the reporting period.
For financial instruments where there is no active market, fair value is determined using valuation
techniques. Such techniques include comparison to similar investments for which market observable
prices exist and discounted cash flow analysis or other valuation models.
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For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on
the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value
hierarchy as explained above.
Trade Receivables and Payables

Trade receivables from customers, which include margin accounts, and payable to clearing house and
other brokers arise from securities purchased (in a regular way transaction) that have been contracted
for but not yet delivered and settled at the end of the reporting period. Payable to customers and
receivable from clearing house and other brokers arise from securities sold (in a regular way
transaction) that have been contracted for but not yet delivered and settled at the end of the reporting
period. Refer to the accounting policy for ‘Loans and receivables’ and ‘Other financial liabilities’ for
recognition and measurement. The related security valuation shows all positions as of clearance date.
Derecognition of Financial Instruments

Financial Assets
A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial
assets) is derecognized when:
· the rights to receive cash flows from the asset have expired;
· the Group retains the right to receive cash flows from the asset, but has assumed an obligation to
pay them in full without material delay to a third party under a ‘pass-through’ arrangement; or
· the Group has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of the asset, or (b) has neither transferred nor
retained substantially all the risks and rewards of the asset, but has transferred control of the
asset.
When the Group has transferred its rights to receive cash flows from an asset and has neither
transferred nor retained substantially all the risks and rewards of the asset nor transferred control of
the asset, the asset is recognized to the extent of the Group’s continuing involvement in the asset.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset and the maximum amount of consideration that
the Group could be required to repay.
Financial Liabilities
A financial liability is derecognized when the obligation under the liability is discharged or cancelled
or has expired.
Where an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such exchange or
modification is treated as a derecognition of the original liability and the recognition of a new
liability, and the difference in the respective carrying amounts is recognized in the consolidated
statement of income.
Impairment of Financial Assets

Policies applicable beginning January 1, 2018
The Group recognizes an ECL for all debt instruments not held at fair value through profit or loss.
ECLs are based on the difference between the contractual cash flows due in accordance with the
contract and all the cash flows that the Group expects to receive, discounted at an approximation of
the original effective interest rate. The expected cash flows will include cash flows from the sale of
collateral held or other credit enhancements that are integral to the contractual terms.
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ECLs are recognized in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the next 12 months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since initial recognition, a loss
allowance is required for credit losses expected over the remaining life of the exposure, irrespective
of the timing of the default (a lifetime ECL).
The Group calculates ECL either on an individual or a collective basis. The Group performs
collective impairment by grouping exposures into smaller homogeneous portfolios based on a
combination of borrower and account characteristics. Accounts with similar risk attributes (i.e.
facility, security, credit rating, months-on-books, utilization and collateral type, etc.) are pooled
together for calculation provisions based on the ECL models.
The Group assesses on a forward-looking basis the ECL associated with its debt instrument asset
carried at amortized cost and the exposure arising from unutilized margin trading facility.
For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the
Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime
ECLs at each reporting date. The Group has established a provision matrix that is based on its
historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the
economic environment. A broad range of forward-looking factors are considered as economic inputs,
such as growth of the gross domestic product, inflation rates, unemployment rates, interest rates and
PSEi statistical indicators.
For cash and cash equivalents, cash in a segregated account, short-term time deposits and long-term
time deposit, the Group applies the low credit risk simplification.
Generally, the Group considers a financial asset in default when contractual payments are 90 days
past due. However, in certain cases, the Group may also consider a financial asset to be in default
when internal or external information indicates that the Group is unlikely to receive the outstanding
contractual amounts in full before taking into account any credit enhancements held by the Group. A
financial asset is written off when there is no reasonable expectation of recovering the contractual
cash flows. Treasury exposures are considered in default upon occurrence of a credit event such as
but not limited to bankruptcy of counterparty, restructuring, failure to pay on an agreed settlement
date, or request for moratorium.
Policies applicable prior to January 1, 2018

The Group assesses at each end of the reporting period whether a financial asset or group of financial
assets is impaired. An impairment exists if one or more events that has occurred since the initial
recognition of the asset (an incurred ‘loss event’), has an impact on the estimated future cash flows of
the financial asset or the group of financial assets that can be reliably estimated.
Evidence of impairment may include indications that the debtors or a group of debtors is experiencing
significant financial difficulty, default or delinquency in interest or principal payments, the
probability that they will enter bankruptcy or other financial reorganization and observable data
indicating that there is a measurable decrease in the estimated future cash flows, such as changes in
arrears or economic conditions that correlate with defaults.
Financial Assets Carried at Amortized Cost

The Group assesses, at each end of the reporting period, whether objective evidence of impairment
exists individually for financial assets that are individually significant, and individually or collectively
for financial assets that are not individually significant. If it is determined that no objective evidence
*SGVFS039143*
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of impairment exists for an individually assessed financial asset, whether significant or not, the asset
is included in a group of financial assets with similar credit risk characteristics and that group of
financial assets is collectively assessed for impairment. Assets that are individually assessed for
impairment and for which an impairment loss is or continues to be recognized are not included in a
collective assessment of impairment.
If there is objective evidence that an impairment loss on financial assets carried at amortized cost has
been incurred, the amount of the loss is measured as the difference between the asset’s carrying
amount and the present value of estimated future cash flows (excluding future credit losses that have
not been incurred) discounted at the financial asset’s original EIR (i.e., the EIR computed at initial
recognition). The carrying amount of the asset shall be reduced either directly or through the use of
an allowance account. The amount of the loss shall be recognized in the consolidated statement of
income.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognized, the previously
recognized impairment loss is reversed. Any subsequent reversal of an impairment loss is recognized
in the consolidated statement of income, to the extent that the carrying value of the asset does not
exceed its amortized cost at the reversal date.
In relation to receivables, a provision for credit losses is made when there is objective evidence (such
as the probability of insolvency or significant financial difficulties of the debtor) that the Group will
not be able to collect all of the amounts due under the original terms of the invoice. The carrying
amount of the receivable is reduced through the use of an allowance account. Impaired debts are
derecognized when they are assessed as uncollectible.
Offsetting of Financial Assets and Liabilities

Financial assets and liabilities are offset and the net amount is reported in the consolidated statement
of financial position if, and only if, there is a currently enforceable legal right to offset the recognized
amounts and the Group intends to either settle on a net basis, or to realize the asset and the liability
simultaneously. The Group assesses that it has a currently enforceable right of offset if the right is
not contingent on a future event, and is legally enforceable in the normal course of business, event of
default, and event of insolvency or bankruptcy of the Group and all of the counterparties.
Prepayments and Other Assets

The Group’s prepayments are composed of prepaid insurance, prepaid taxes, prepaid rent and other
prepayments. Other current assets are composed of creditable withholding tax (CWT) and input
value-added tax (VAT). Other noncurrent assets are composed of deposit and refundable
contributions to CTGF, refundable deposits, receivable from Bureau of Internal Revenue (BIR),
deferred input VAT and intangible assets under development. These assets are classified as current
when it is probable to be realized within one (1) year from the end of the reporting period.
Otherwise, these are classified as noncurrent assets.
Property and Equipment

Property and equipment is stated at cost, excluding the costs of day-to-day servicing, less
accumulated depreciation and amortization and any accumulated impairment losses, if any.
Such cost includes the cost of replacing part of such property and equipment, if the recognition
criteria are met.
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The initial cost of property and equipment comprises its purchase price, including import duties, non-
refundable taxes and any directly attributable costs of bringing the asset to its working condition and
location for its intended use. Expenditures incurred after the property and equipment have been put
into operations, such as repairs and maintenance, are normally charged against income in the period
when the costs are incurred. In situations where it can be clearly demonstrated that the expenditures
have resulted in an increase in the future economic benefits expected to be obtained from the use of
an item of property and equipment beyond its originally assessed standard of performance, the
expenditures are capitalized as additional costs of property and equipment.
Each part of an item of property and equipment with a cost that is significant in relation to the total
cost of the item is depreciated separately.
Depreciation and amortization is computed on the straight-line basis over the following estimated
useful lives of the assets:
Category Number of Years

Online trading equipment and facilities 3-10
Furniture, fixtures and equipment 3-10
Leasehold improvements 5 or term of lease,
whichever is shorter
The carrying values of property and equipment are reviewed for impairment when events or changes
in circumstances indicate that the carrying value may not be recoverable.
An item of property and equipment is derecognized upon disposal or when no future economic
benefits are expected from its use or disposal. 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 asset)
is included in the consolidated statement of income in the year the asset is derecognized. The asset’s
residual values, if any, useful lives and methods are reviewed and adjusted if appropriate, at each end
of the reporting period.
Effective January 1, 2019, it is the Group’s policy to classify right-of-use assets as part of property
and equipment. Prior to that date, all of the Group’s leases are accounted for as operating leases in
accordance with PAS 17, hence, not recorded in the consolidated statement of financial position. The
Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the
underlying asset is available for use). Right-of-use assets are initially measured at cost, less any
accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease
liabilities. The initial cost of right-of-use assets includes the amount of lease liabilities recognized,
initial direct costs incurred, lease payments made at or before the commencement date less any lease
incentives received and estimate of costs to be incurred by the lessee in dismantling and removing the
underlying asset, restoring the site on which it is located or restoring the underlying asset to the
condition required by the terms and conditions of the lease, unless those costs are incurred to produce
inventories.
Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease
term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of
their estimated useful life of five (5) years and lease term. Right-of-use assets are subject to
impairment.
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Investment Property
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial
recognition, investment properties are carried at cost less accumulated depreciation (for depreciable
investment properties) and impairment in value.
Investment properties are derecognized either when they have been disposed of or when they are
permanently withdrawn from use and no future economic benefit is expected from their disposal. The
difference between the net disposal proceeds and the carrying amount of the asset is recognized in
profit or loss in the period of derecognition.
Expenditures incurred after the investment properties have been put into operations, such as repairs
and maintenance costs, are normally charged to operations in the year in which the costs are incurred.
Depreciation is calculated on a straight-line basis using the remaining useful lives from the time of
acquisition of the investment properties based on appraisal reports but not to exceed 50 years for
buildings and condominium units.
Transfers are made to (or from) investment property only when there is a change in use. For a
transfer from investment property to owner-occupied property, the deemed cost for subsequent
accounting is the fair value at the date of change in use. If owner-occupied property becomes an
investment property, the Group accounts for such property in accordance with the policy stated under
property and equipment up to the date of change in use.
Intangibles
Exchange Trading Rights
Exchange trading rights are carried at cost less any allowance for impairment losses and are reviewed
for impairment annually or more frequently if events or changes in circumstances indicate that the
carrying values may be impaired. The exchange trading rights are deemed to have indefinite useful
lives as there is no foreseeable limit to the period over which the asset is expected to generate net
cash inflows for the Group. The assessment of indefinite life is reviewed annually to determine
whether the indefinite useful life continues to be supportable. If not, the change in useful life from
indefinite to finite is made on a prospective basis. The Parent Company does not intend to sell its
exchange trading right in the near future while COLHK’s exchange trading right is a nontransferable
right.
Software Costs
Costs related to software purchased by the Group for use in operations are amortized on a straight-
line basis over the estimated life of three (3) to ten (10) years.
Impairment of Non-Financial Assets

The Group assesses at each end of the reporting period whether there is an indication that its
prepayments, property and equipment, intangibles and other assets may be impaired. If any such
indication exists or when the annual impairment testing for an asset is required, the Group makes an
estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of the asset’s
value-in-use (VIU) or its fair value less costs to sell. The fair value less costs to sell is the amount
obtainable from the sale of an asset at an arm’s length transaction, while VIU is the present value of
estimated future cash flows expected to arise from the continuing use of an asset and from its disposal
at the end of its useful life. Where the carrying amount of an asset exceeds its recoverable amount,
the asset is considered impaired and is written down to its recoverable amount. An impairment loss is
recognized by a charge against current operations for the excess of the carrying amount of an asset
over its recoverable amount in the year in which it arises.
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Intangibles with indefinite useful lives are tested for impairment annually at end of the reporting
period either individually or at the cash generating unit level, as appropriate. Intangibles with finite
lives are assessed for impairment whenever there is an indication that the intangible asset may be
impaired. A previously recognized impairment loss is reversed by a credit to current operations to the
extent that it does not restate the asset to a carrying amount in excess of what would have been
determined (net of any accumulated depreciation and amortization) had no impairment loss been
recognized for the asset in prior years.
Leases
Policies applicable prior to January 1, 2019
The determination of whether an arrangement is, or contains a lease is based on the substance
of the arrangement and requires 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.
A reassessment is made after inception of the lease only if one of the following applies:
(a) There is a change in contractual terms, other than a renewal or extension of the arrangement;
(b) A renewal option is exercised or extension granted, unless that term of the renewal or extension
was initially included in the lease term;
(c) There is a change in the determination of whether fulfillment is dependent on a specified asset;
or
(d) There is a substantial change to the asset.
Where a reassessment is made, lease accounting shall commence or cease from the date when the
change in circumstances gave rise to the reassessment for scenarios (a), (c) or (d) above, and at the
date of renewal or extension period for scenario (b).
Group as a lessee
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Operating lease payments are recognized as an expense in the
consolidated statement of income on a straight-line basis over the lease term.
A lease is classified as an operating lease if it does not substantially transfer all risks and rewards
incidental to ownership. Operating lease payments are recognized as expense in profit or loss on a
straight-line basis over the lease term. Associated costs, such as maintenance and insurance are
expensed as incurred.
Policies applicable beginning January 1, 2019

Group as a lessee
The Group recognized right-of-use assets and lease liabilities for those leases previously classified as
operating leases, except for leases of low-value assets. The right-of-use assets for all leases were
recognized based on the amount equal to the lease liabilities, adjusted for any related prepaid and
accrued lease payments previously recognized. Lease liabilities were recognized based on the present
value of the remaining lease payments, discounted using the incremental borrowing rate at the date of
initial application.
Lease liabilities
At the commencement date of the lease, the Group recognizes lease liabilities measured at the present
value of lease payments to be made over the lease term. The lease payments include fixed payments
(including in substance fixed payments) less any lease incentives receivable, variable lease payments
that depend on an index or a rate, and amounts expected to be paid under residual value guarantees.
The lease payments also include the exercise price of a purchase option reasonably certain to be
exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the
*SGVFS039143*
- 16 -
Group exercising the option to terminate. The variable lease payments that do not depend on an
index or a rate are recognized as expense in the period on which the event or condition that triggers
the payment occurs.
In calculating the present value of lease payments, the Group uses the incremental borrowing rate at
the lease commencement date if the interest rate implicit in the lease is not readily determinable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of
interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities
is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed
lease payments or a change in the assessment to purchase the underlying asset.
Leases of low-value assets

The Group applies the leases of low-value assets recognition exemption to leases of office equipment
that are considered of low value. Lease payments on leases of low-value assets are recognized as
expense on a straight-line basis over the lease term.
Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are made by discounting the expected
future cash flows at a pre-tax rate that reflects current market assessments of the time value of money
and, where appropriate, the risks specific to the liability. Where discounting is used, the increase in
the provision due to the passage of time is recognized as an interest expense.
Where the Group expects some or all of a provision to be reimbursed, the reimbursement is
recognized as a separate asset but only when the reimbursement is virtually certain. The expense
relating to any provision is presented in the consolidated statement of income, net of any
reimbursement.
Capital Stock and Capital Paid-in Excess of Par Value

The Parent Company has issued capital stock that is classified as equity. Incremental costs directly
attributable to the issue of new capital stock are shown in equity as a deduction, net of any related tax
benefit, from the proceeds.
Where the Group purchases the Parent Company’s capital stock (treasury shares), the consideration
paid, including any directly attributable incremental costs (net of applicable taxes) is deducted from
equity attributable to the Parent Company’s stockholders until the shares are cancelled or reissued.
Where such shares are subsequently reissued, any consideration received, net of any directly
attributable incremental transaction costs and the related tax effects, is included in equity.
Amount of contribution in excess of par value is accounted for as a capital in excess of par value.
Capital in excess of par value also arises from additional capital contribution from the stockholders.
Retained Earnings
Retained earnings are accumulated profits realized out of normal and continuous operations of the
business after deducting therefrom distributions to stockholders and transfers to capital or other
accounts. Cash and stock dividends are recognized as a liability and a deduction from equity when
they are approved by the Group’s BOD and stockholders, respectively. Dividends for the year that
are approved after the end of the reporting period are dealt with as an event after the end of the
reporting period.
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- 17 -
Retained earnings may also include retrospective effect of changes in accounting policy as may be
required by the transitional provisions of the new or revised accounting policy.
Unappropriated retained earnings represent the accumulated profits and gains realized out of the
normal and continuous operations of the Group after deducting therefrom distributions to
stockholders and transfers to capital stocks or other accounts, and which is:
· Not appropriated by its BOD for corporate expansion projects or programs;
· Not covered by a restriction for dividend declaration under a loan agreement;
· Not required under special circumstances obtaining in the Group such as when there is a need for
a special reserve for probable contingencies.
Appropriated retained earnings represent that portion which has been restricted and, therefore, not
available for dividend declaration.
Revenue Recognition
Prior to January 1, 2018, under PAS 18, Revenue, revenue is recognized to the extent that it is
probable that the economic benefits will flow to the Group and the revenue can be reliably measured,
regardless of when the payment is being made. Revenue is measured at the fair value of the
consideration received or receivable, taking into account contractually defined terms of payment and
excluding taxes or duty.
Upon adoption of PFRS 15 beginning January 1, 2018, revenue from contracts with customers is
recognized upon transfer of services to the customer at an amount that reflects the consideration to
which the Group expects to be entitled in exchange for those services.
The Group assesses its revenue arrangements against specific criteria in order to determine if it is
acting as a principal or agent. The Group has concluded that it is the principal in all of its revenue
arrangements except for its brokerage transactions. The following specific recognition criteria must
also be met before revenue is recognized:
Commissions
Commissions are recognized as income upon confirmation of trade deals. These are computed for
every trade transaction based on a flat rate or a percentage of the amount of trading transaction,
whichever is higher.
Trail Fees
Trail fees are recognized as income as they are earned. These pertain to the revenue earned by the
Parent Company from the distribution of mutual funds of various fund houses to its customers and are
computed daily as a percentage of the total assets under administration for each fund.
The Group assessed that there is no difference in accounting for the commission income and trail fees
under PFRS 15 and PAS 18.
Revenues outside the scope of PFRS 15

Interest
For all financial instruments measured at amortized cost and interest-bearing financial instruments
classified as investment securities at FVOCI, interest income is recorded at the EIR, which is the rate
that exactly discounts estimated future cash receipts through the expected life of the financial
instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset.
The calculation takes into account all contractual terms of the financial instrument, including any fees
or incremental costs that are directly attributable to the instrument and are an integral part of the EIR.
*SGVFS039143*
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The adjusted carrying amount is calculated based on the original EIR. The change in carrying
amount is recorded as ‘Interest income’.
Under PFRS 9, when a financial asset becomes credit-impaired, the Group calculates interest income
by applying the EIR to the net amortized cost of the financial asset. If the financial asset cures and is
no longer credit-impaired, the Group reverts to calculating interest income on a gross basis. Under
PAS 39, once the recorded value of a financial asset or group of similar financial assets carried at
amortized cost has been reduced due to an impairment loss, interest income continues to be
recognized using the original EIR applied to the new carrying amount.
Trading gains (losses) - net

Results arising from trading activities include all gains and losses from changes in fair value for
financial assets and financial liabilities at FVTPL and gains and losses from disposal of investment
securities at FVTPL and debt securities at FVOCI.
Unrealized trading gains and losses comprise changes in the fair value of financial instruments for the
period and from reversal of prior period’s unrealized gains and losses for financial instruments which
were realized in the reporting period. Realized gains and losses on disposals of financial instruments
classified as at FVTPL are calculated using the first-in, first-out (FIFO) method. They represent the
difference between an instrument’s initial carrying amount and disposal amount.
Dividend
Dividend income is recognized when the right to receive payment is established, which is the date of
declaration.
Other Income
Revenue is recognized in the consolidated statement of income as they are earned.
Costs and Expenses

Costs and expenses are decreases in economic benefits during the accounting period in the form of
outflows or decrease of assets or incurrence of liabilities that result in decreases in equity, other than
those relating to distributions to equity participants. Cost of services such as commissions, direct
personnel costs, stock exchange dues and fees, central depository fees, research costs, and
communication costs are recognized when the related revenue is earned or when the service is
rendered. The majority of operating expenses incurred by the Group such as indirect personnel costs,
professional fees, computer services, and other operating expenses are overhead in nature and are
recognized with regularity as the Group continues its operations.
Retirement Costs
Defined Benefit Plan
The Parent Company has a noncontributory defined benefit retirement plan.
The net defined benefit liability or asset is the aggregate of the present value of the defined benefit
obligation at the end of the reporting period reduced by the fair value of plan assets (if any), adjusted
for any effect of limiting a net defined benefit asset to the asset ceiling. The asset ceiling is the
present value of any economic benefits available in the form of refunds from the plan or reductions in
future contributions to the plan.
The cost of providing benefits under the defined benefit plans is actuarially determined using the
projected unit credit method. This method reflects service rendered by employees to the date of
valuation and incorporates assumptions concerning the employees’ projected salaries.
*SGVFS039143*
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Defined benefit costs comprise the following:

· Service cost
· Net interest on the net defined benefit liability or asset
· Remeasurements of net defined benefit liability or asset
Service costs which include current service cost, past service costs and gains or losses on non-routine
settlements are recognized as ‘Retirement costs’ under ‘Personnel costs’. Past service costs are
recognized when plan amendment or curtailment occurs.
Net interest on the net defined benefit liability or asset is the change during the period in the net
defined benefit liability or asset that arises from the passage of time which is determined by applying
the discount rate based on government bonds to the net defined benefit liability or asset. Net interest
on the net defined benefit liability or asset is recognized as ‘Interest expense’ in the consolidated
statement of income.
Remeasurements comprising actuarial gains and losses, return on plan assets and any change in the
effect of the asset ceiling (excluding net interest on defined benefit liability) are recognized
immediately in OCI in the period in which they arise. Remeasurements are not reclassified to the
consolidated statement of income in subsequent periods. Remeasurements recognized in OCI are
retained in OCI which are presented as ‘Gain (loss) on remeasurement of retirement obligation’ under
equity.
Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance
policies. Plan assets are not available to the creditors of the Group, nor can they be paid directly to
the Group. Fair value of plan assets is based on market price information. When no market price is
available, the fair value of plan assets is estimated by discounting expected future cash flows using a
discount rate that reflects both the risk associated with the plan assets and the maturity or expected
disposal date of those assets (or, if they have no maturity, the expected period until the settlement of
the related obligations). If the fair value of the plan assets is higher than the present value of the
defined benefit obligation, the measurement of the resulting defined benefit asset is limited to the
present value of economic benefits available in the form of refunds from the plan or reductions in
future contributions to the plan.
The Group’s right to be reimbursed of some or all of the expenditure required to settle a defined
benefit obligation is recognized as a separate asset at fair value when and only when reimbursement is
virtually certain.
Defined Contribution Plan

The retirement plan of COLHK is a defined contribution retirement plan. Under a defined
contribution retirement plan, the entity’s legal and constructive obligation is limited to the amount
that it agrees to contribute to the fund. Thus, the amount of the post-employment benefits received by
the employee is determined by the amount of contributions paid by an entity to a post-employment
benefit plan, together with investment returns arising from the contributions. Consequently, actuarial
risk (that benefits will be less than expected) and investment risk (that assets invested will be
sufficient to meet expected benefits) fall on the employee.
The standard requires an entity to recognize short-term employee benefits when an employee has
rendered service in exchange of those benefits.
*SGVFS039143*
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Earnings per Share (EPS)

Basic EPS is computed by dividing earnings applicable to common stock by the weighted average
number of common shares outstanding, after giving retroactive effect for any stock dividends, stock
splits or reverse stock splits during the year.
Diluted EPS is computed by dividing net income by the weighted average number of common shares
outstanding during the year, after giving retroactive effect for any stock dividends, stock splits or
reverse stock splits during the year, and adjusted for the effect of dilutive options.
Outstanding share options plan (SOP) shares will have a dilutive effect under the treasury stock
method only when the average market price of the underlying common share during the period
exceeds the exercise price of the option. Where the effect of the exercise of all outstanding options
has anti-dilutive effect, basic and diluted EPS are stated at the same amount.
Potential ordinary shares are weighted for the period they are outstanding. Potential ordinary shares
that are converted into ordinary shares during the period are included in the calculation of diluted EPS
from the beginning of the period to the date of conversion; from the date of conversion, the resulting
ordinary shares are included in both basic and diluted EPS.
Taxes
Current Income Tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The income tax rates and income tax laws used to compute the
amount are those that are enacted or substantively enacted at the end of the reporting period in the
countries where the Group operates and generates taxable income. Effective January 1, 2019,
Management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretations and establishes provisions where
appropriate.
Deferred Income Tax

Deferred income tax is provided, using the balance sheet liability method, on all temporary
differences at the end of the reporting period between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognized for all taxable temporary differences.
With respect to investments in foreign subsidiaries, deferred income tax liabilities are recognized
except where the timing of the reversal of the temporary difference can be controlled and it is
probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognized for all deductible temporary differences including net loss
carry-over to the extent that it is probable that sufficient future taxable income will be available
against which the deductible temporary differences can be utilized. Deferred income tax, however, is
not recognized on temporary differences that arise from the initial recognition of an asset or liability
in a transaction that is not a business combination and, at the time of the transaction, affects neither
the accounting income nor the taxable income or loss.
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The carrying amount of deferred income tax assets is reviewed at each end of the reporting period and
reduced to the extent that it is no longer probable that sufficient future taxable income will be
available to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred
income tax assets are reassessed at each end of the reporting period and are recognized to the extent
that it has become probable that future taxable income will allow the deferred income tax asset to be
recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are applicable to the
period when the asset is realized or the liability is settled, based on income tax rates and income tax
laws that have been enacted or substantively enacted at the end of the reporting period.
Deferred income tax relating to items recognized directly in equity is also recognized in equity.
Deferred income tax items are recognized in correlation to the underlying transaction either in OCI or
directly in equity.
Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right
exists to offset current income tax assets against current income tax liabilities and deferred income
taxes related to the same taxable entity and the same taxation authority.
Contingencies
Contingent liabilities are not recognized in the consolidated financial statements. These are disclosed
unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent
assets are not recognized in the consolidated financial statements but are disclosed when an inflow of
economic benefits is probable.
Segment Reporting
The Group’s operating businesses 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 serves different markets. Financial information on business segments is
presented in Note 26. In 2018 and 2017, the Group operates in one business segment, being
stockbrokerage services; therefore, only geographical segment is presented.
Events After the End of the Reporting Period

Post year-end events that provide additional information about the Group’s position at the end of the
reporting period (adjusting events) are reflected in the consolidated financial statements. Post year-
end events that are not adjusting events are disclosed when material.
3. Significant Accounting Judgments, Estimates and Assumptions
The preparation of the consolidated financial statements in accordance with PFRS requires the Group
to make judgments and estimates that affect the reported amounts of assets, liabilities, income and
expenses and disclosure of contingent assets and contingent liabilities. Future events may occur
which will cause the judgments and assumptions used in arriving at the estimates to change. The
effects of any change in judgments and estimates are reflected in the consolidated financial statements
as they become reasonably determinable.
Judgments and estimates and assumptions 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. However, actual outcome can differ from these estimates.
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Estimates and Assumptions

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 reporting period are discussed below.
Impairment of the Intangibles

Intangibles include exchange trading rights which are carried at cost less any allowance for
impairment loss. Exchange trading rights are reviewed for impairment annually or more frequently if
events or changes in circumstances indicate that the carrying values may be impaired. The exchange
trading rights are deemed to have indefinite useful lives as there is no foreseeable limit to the period
over which the asset is expected to generate net cash inflows for the Group.
The Management’s impairment test for the exchange trading rights is based on the higher of fair value
less costs to sell and VIU. The assumptions used in the calculation of the VIU are sensitive to
estimates of future cash flows from the cash-generating unit, discount rate and revenue growth rate
used to project the cash flows.
The key assumptions used to determine the recoverable amount of the Group’s exchange trading
rights are further explained in Note 11. The Parent Company does not intend to sell its exchange
trading right in the near future. COLHK’s right is nontransferable with an indefinite useful life. As
at December 31, 2019 and 2018, the carrying values of intangibles are disclosed in Note 11.
Estimating Recoverability of Deferred Income Tax Assets

The Group reviews the carrying amounts of deferred income tax assets at each end of the reporting
period and reduces deferred income tax assets to the extent that it is no longer probable that sufficient
future taxable income will be available to allow all or part of the deferred income tax assets to be
utilized. The deferred income tax assets as at December 31, 2019 and 2018 are disclosed in Note 19.
Determining Retirement Obligation

The costs of defined retirement obligation as well as the present value of the defined benefit
obligation are determined using actuarial valuations. The actuarial valuation involves making various
assumptions. These include the determination of the discount rates, future salary increases, mortality
rates and future retirement increases. Due to the complexity of the valuation, the underlying
assumptions and its long-term nature, defined benefit obligation are highly sensitive to changes in
these assumptions.
All assumptions are reviewed at each end of the reporting period.
In determining the appropriate discount rate, Management considers the interest rates of government
bonds that are denominated in the currency in which the benefits will be paid, with extrapolated
maturities corresponding to the expected duration of the defined benefit obligation.
Further details about the assumptions used are provided in Note 18.
Leases - Estimating the incremental borrowing rate

The Group cannot readily determine the interest rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the
Group would have to pay to borrow over a similar term, and with a similar security, the funds
necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic
environment. The IBR therefore reflects what the Group ‘would have to pay’, which requires
estimation when no observable rates are available (such as for subsidiaries that do not enter into
financing transactions) or when they need to be adjusted to reflect the terms and conditions of the
*SGVFS039143*
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lease (for example, when leases are not in the subsidiary’s functional currency). The Group estimates
the IBR using observable inputs (such as market interest rates) when available and is required to
make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).
The Group’s lease liabilities as at December 31, 2019 are disclosed in Note 21.
4. Cash and Cash Equivalents, Short-term Time Deposits and Long-term Time Deposit
Cash and Cash Equivalents
This account consists of:
2019 2018
Cash on hand and in banks P
=388,330,981 P422,340,408
=
Short-term cash investments 7,837,701,028 8,475,242,974
P
=8,226,032,009 =8,897,583,382
P
Cash in banks earn interest at the respective bank deposit rates. Short-term cash investments are
made for varying periods of up to three (3) months depending on the Group’s immediate cash
requirements, and earn interest ranging from 2.44% to 6.90% per annum in 2019, from 1.70% to
6.90% per annum in 2018 and from 2.00% to 3.65% per annum in 2017. The Parent Company has
United States dollar (US$)-denominated cash in banks amounting to $1,052 and US$1,061 as at
December 31, 2019 and 2018, respectively, while COLHK has US$-denominated cash in banks
amounting to US$8,465 and US$209,575 as at December 31, 2019 and 2018, respectively.
In compliance with Securities Regulation Code (SRC) Rule 49.2 covering customer protection and
custody of securities, the Parent Company maintains special reserve bank accounts for its customers
amounting to P=7,572,724,361 and = P8,541,305,763 as at December 31, 2019 and 2018, respectively.
The Parent Company’s reserve requirement is determined based on the SEC’s prescribed
computations. As at December 31, 2019 and 2018, the Parent Company’s reserve accounts are
adequate to cover its reserve requirements.
Short-term Time Deposits

This account pertains to the Parent Company’s time deposits in local banks that have original
maturities of more than three (3) months but less than a year. Short-term time deposits bear annual
interest rates ranging from 5.00% to 7.00% in 2019 and 4.45% to 7.00% in 2018.
Long-term Time Deposit

This account pertains to the Parent Company’s time deposit in a local bank placed in 2016 with
interest at 4.00% per annum and maturing on June 24, 2021.
Interest income of the Group from cash and cash equivalents, cash in segregated account, short-term
time deposits and long-term time deposit amounted to P
=472,314,661, P =370,543,382 and
=
P181,575,770 in 2019, 2018 and 2017, respectively (Note 16).
*SGVFS039143*
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5. Cash in a Segregated Account
COLHK receives and holds money deposited by clients in the conduct of the regulated activities of its
ordinary business. These clients’ monies are maintained with a licensed bank. The Group has
classified the clients’ monies under current assets in the consolidated statements of financial position
and recognized a corresponding payable to customers on grounds that it is liable for any loss or
misappropriation of clients’ monies (Note 13). The Group is not allowed to use the clients’ monies to
settle its own obligations.
Interest income from cash in segregated account is included under ‘Interest income - banks’
(Note 16).
6. Financial Assets at FVTPL
Financial assets at FVTPL pertain to investments in mutual funds and shares of stock of companies
listed in the PSE. As at December 31, 2019 and 2018, financial assets at FVTPL amounted to
=4,003,329 and =
P P3,225,163, respectively.
The Group’s net trading gains (losses) follow:
2019 2018 2017

Trading gains from sale P
=846,711 =12,146,236
P =17,306,584
P
Unrealized trading gains (losses) (805,210) 1,961,296 (103,792)
P
=41,501 =14,107,532
P =17,202,792
P
Dividend income included under ‘Other revenues’ amounted to =

P30,721, =
P258,706 and =
P230,474
in 2019, 2018 and 2017, respectively.
7. Trade Receivables and Other Receivables
Trade Receivables
2019 2018
Customers (Note 20) P
=704,473,326 =725,741,713
P
Clearing house 124,656,703 –
Other brokers 35,713,803 85,396,559
Trail fee receivables 1,521,916 1,388,114
866,365,748 812,526,386
Less allowance for credit losses on trade receivables
from customers 2,092,947 1,478,235
P
=864,272,801 =811,048,151
P
*SGVFS039143*
- 25 -
The Group’s trade receivables from customers and their security valuation follow:
2019 2018
Money Security Money Security
Balance Valuation-Long Balance Valuation-Long
Fully secured accounts:
More than 250% P
=326,641,371 P
=3,341,970,342 P363,647,312
= =2,927,387,828
P
Between 200% and 250% 133,706,615 295,113,418 144,838,172 310,736,355
Between 150% and 200% 116,495,231 210,350,463 17,374,905 32,383,907
Between 100% to 150% 112,935,034 122,412,775 99,524,027 104,578,764
Less than 100% 14,695,036 14,166,050 100,357,086 97,552,990
Unsecured accounts (Note 20) 39 – 211 –
704,473,326 P
=3,984,013,048 725,741,713 =3,472,639,844
P
Less allowance for credit losses on trade
receivables from customers 2,092,947 1,478,235
P
=702,380,379 =724,263,478
P
As at December 31, 2019 and 2018, the Parent Company offered a credit line facility amounting to
=5,467,788,000 and =
P P5,381,368,000, respectively, to its customers who qualified for margin account.
Interest income from customers amounted to =

P48,118,796, =
P44,357,869 and P
=66,939,815 in 2019,
2018 and 2017, respectively (Note 16).
Trade receivables from margin customers have no specific credit terms but customers are required to
maintain the value of their collateral within a specific level. Once the value of the collateral falls
below this level, customers may either deposit additional collateral or sell stock to cover the
deficiency in their account balance. Meanwhile, receivables from post-paid customers are required to
be settled on two (2) trading days’ term for COLHK and three (3) trading days’ term for the Parent
Company. The receivable balances become demandable upon failure of the customer to duly comply
with these requirements. As at December 31, 2019 and 2018, = P689,778,251 and = P625,384,416,
respectively, of the total trade receivables from customers are fully covered by collateral.
Trade receivables from clearing house as at December 31, 2019, were fully collected in January 2020.
These are noninterest-bearing and are collected on two (2) trading days’ term and three (3) trading
days’ term following the settlement convention of HK and Philippines clearing houses, respectively.
Receivables from other brokers pertain to clients’ monies deposited to Interactive Brokers (IB) LLC
through COLHK. In March 2014, COLHK opened an account with the said broker to enable its retail
customers to trade in other foreign markets.
Trail fee receivables pertain to the amount due from the mutual fund managers representing the trail
fee earned by the Parent Company for selling mutual funds to its customers. The fee is computed
daily and collected on a monthly basis.
*SGVFS039143*
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Other Receivables
2019 2018
Accrued interest P
=32,236,683 =44,547,984
P
Advances to officers and employees (Note 20) 1,220,034 918,030
Others 14,611,157 6,575,053
P
=48,067,874 =52,041,067
P
‘Others’ account consists mainly of lodgment fee receivables, receivable from mutual fund
redemption proceeds and advances to legal counsels.
Allowance for Credit Losses
Movements in the allowance for credit losses follow:
2019 2018
Balances at beginning of year P
=1,478,235 =1,181,292
P
Provision for credit losses 614,712 296,943
Balances at end of year P
=2,092,947 =1,478,235
P
8. Investment Securities at Amortized Cost
This account consists of an investment in a government security with a face value amounting to
=200,000,000, purchased on September 25, 2017 at a premium of P
P =3,041,886. The investment earns
a coupon rate of 4.25% per annum, payable on a quarterly basis and will mature on April 11, 2020,
with an EIR of 3.62%.
As at December 31, 2019 and 2018, the carrying amount of the investment amounted to
=200,348,264 and =
P P201,564,744, respectively.
The Group’s investment in government security is considered of low credit risk since this is rated as
Baa2 by Moody’s Investors Service, Inc.
Interest income earned from the investment amounted to P

=7,283,520, P
=7,326,597 and =
P1,944,962 in
2019, 2018 and 2017, respectively (Note 16).
*SGVFS039143*
- 27 -
9. Property and Equipment
The composition of and movements in this account follow:
2019
Online Trading Furniture, Right-of-use
Equipment and Fixtures and Leasehold Construction Assets – Office
Facilities Equipment Improvements in Progress Premises Total
Cost
At beginning of year, as previously reported =156,266,185
P =28,994,359
P =39,874,672
P =3,438,428
P =–
P =228,573,644
P
Effect of adoption of PFRS 16 (Note 2) – – – – 27,129,831 27,129,831
Translation adjustments (260,065) (103,366) (31,230) – (48,605) (443,266)
At beginning of year, as restated 156,006,120 28,890,993 39,843,442 3,438,428 27,081,226 255,260,209
Additions 9,498,287 8,526,635 9,524,757 17,033,184 55,420,102 100,002,965
Reclassification – – 15,891,650 (15,891,650) – –
Disposals (2,463,611) (635,369) – – (5,465,735) (8,564,715)
At end of year 163,040,796 36,782,259 65,259,849 4,579,962 77,035,593 346,698,459
Accumulated depreciation and amortization
At beginning of year 99,538,013 24,002,484 29,002,466 – – 152,542,963
Depreciation and amortization (Note 21) 21,033,693 2,489,570 4,770,816 – 26,205,737 54,499,816
Disposals (2,463,568) (635,339) – – (5,465,735) (8,564,642)
Translation adjustments (281,049) (78,216) (31,226) – (34,109) (424,600)
At end of year 117,827,089 25,778,499 33,742,056 – 20,705,893 198,053,537
Net book value =45,213,707
P =11,003,760
P =31,517,793
P =4,579,962
P =56,329,700
P =148,644,922
P
*SGVFS039143*
- 28 -
2018
Online Trading Furniture,
Equipment and Fixtures and Leasehold Condominium Construction
Facilities Equipment Improvements Unit in Progress Total
Cost
At beginning of year =140,869,282
P =25,530,266
P =31,986,657
P =17,509,736
P =–
P =215,895,941
P
Additions 14,984,280 3,300,090 7,838,465 – 3,438,428 29,561,263
Reclassification (Note 10) – – – (17,509,736) – (17,509,736)
Translation adjustments 412,623 164,003 49,550 – – 626,176
At end of year 156,266,185 28,994,359 39,874,672 – 3,438,428 228,573,644
Accumulated depreciation and amortization
At beginning of year 79,950,687 22,423,830 27,525,256 – – 129,899,773
Depreciation and amortization 19,174,703 1,430,999 1,427,660 – – 22,033,362
Translation adjustments 412,623 147,655 49,550 – – 609,828
At end of year 99,538,013 24,002,484 29,002,466 – – 152,542,963
Net book value =56,728,172
P =4,991,875
P =10,872,206
P =–
P =3,438,428
P =76,030,681
P
As of December 31, 2019 and 2018, the cost of the Group’s fully depreciated property and equipment still in use amounted to P
=108,761,972 and
=98,532,588, respectively. Disposal of property and equipment resulted in gains amounting P
P =8,409 in 2019. No disposals were made in 2018 and 2017.
The depreciation and amortization was distributed as follows:
2019 2018 2017

Cost of services P
=134,902 P134,635
= P159,299
=
Operating expenses 54,364,914 21,898,727 18,106,127
P
=54,499,816 =22,033,362
P =18,265,426
P
*SGVFS039143*
- 29 -
10. Investment Property
This account pertains to an office space purchased by the Parent Company. Movements in the
account follow:
2019 2018
Cost
At beginning of year P
=17,509,736 =–
P
Reclassification (Note 9) – 17,509,736
At end of year 17,509,736 17,509,736
Accumulated depreciation
At beginning of year 875,487 –
Depreciation 875,487 875,487
At end of year 1,750,974 875,487
Net book value P
=15,758,762 =16,634,249
P
The office space is held for capital appreciation. As at December 31, 2019 and 2018, the fair value of
investment property amounted to P =39,567,000 and P=35,610,000, respectively.
Collaterals
As at December 31, 2019 and 2018, the Group’s investment property is not pledged as collateral.
11. Intangibles
Stock Exchange Trading Rights

Philippine Operations
As at December 31, 2019 and 2018, the fair value less costs to sell of the exchange trading right
amounted to = P8,500,000, representing the transacted price of the exchange trading right of the most
recent sale approved by the PSE on December 14, 2011. At as December 31, 2019 and 2018, the
carrying value of the exchange trading right amounted to =P5,000,000.
Hong Kong Operations

COLHK’s exchange trading right, amounting to HK$3,190,000, is carried at its cost net of
accumulated impairment losses. The carrying value of the exchange trading right is reviewed
annually to ensure that this does not exceed the recoverable amount, whether or not an indicator of
impairment is present. The stock exchange trading right is a non-transferable right with an indefinite
useful life. It is closely associated with COLHK’s business activities to have a right to trade the
shares in the Hong Kong Stock Exchange (HKEX) in its continuing operation.
The Group performed its annual impairment test in December 2019 and 2018. The Group considers
each location as a separate cash-generating unit (CGU) and the historical experience of each CGU,
among other factors, when reviewing for indicators of impairment.
The Parent Company no longer computed for the VIU of its exchange trading right as its fair value
less costs to sell is already higher than its carrying amount.
The recoverable amount of exchange trading right of COLHK has been determined based on a VIU
calculation using cash flow projections covering a five (5)-year period. The projected cash flows
have been updated to reflect the operations of COLHK.
*SGVFS039143*
- 30 -
The VIU calculation for the COLHK CGU is most sensitive to the following assumptions:
· Discount rate (1.54%) – This is based on the specific circumstances of the CGU and is derived
from its weighted average cost of capital (WACC), taking into consideration the time value of
money and individual risks of the underlying assets. The WACC takes into account both debt
and equity. The cost of equity is derived from the expected return on investment by the Group’s
investors. The cost of debt is based on the bond market index in HK. Segment-specific risk is
incorporated by applying individual beta factors. The beta factors are evaluated based on
publicly available market data on similar stockbrokers in HK.
· Revenue growth rate (2%) – This is based on average revenue in the three years preceding the
financial year and the plans of COLHK.
As a result of this analysis, Management has determined that there was an impairment loss amounting
to =
P20,636,226 in 2017 representing the full amount of the carrying value of the trading right.
As of December 31, 2019 and 2018, the Group assessed that the exchange trading right of COLHK
amounting to HK$2,860,000 is fully impaired.
Software Costs and Licenses

Movements in the software costs and licenses account follow:
2019 2018
Cost
At beginning of year P
=42,680,018 =44,347,625
P
Additions 5,562,094 908,299
Write-off – (2,575,906)
At end of year 48,242,112 42,680,018
Accumulated amortization
At beginning of year 30,279,574 29,816,936
Amortization 3,439,825 3,038,541
Write-off – (2,575,903)
At end of year 33,719,399 30,279,574
Net book value P
=14,522,713 =12,400,444
P
The amortization of software costs and licenses recorded in ‘Depreciation and amortization’ in the
consolidated statements of income amounted to = P3,439,825, =P3,038,541, and =
P3,977,731 in 2019,
2018, and 2017, respectively.
As of December 31, 2019 and 2018, the costs of the Group’s fully amortized software still in use
amounted to =
P20,986,110 and =
P19,833,325, respectively.
12. Other Assets
Other Current Assets
This account pertains to input VAT of the subsidiaries.
*SGVFS039143*
- 31 -
Other Noncurrent Assets

2019 2018
Deposit and refundable contributions to CTGF P
=41,632,750 =38,791,026
P
Intangible assets under development 16,197,559 8,858,099
Refundable deposits:
Rental and utility deposits 7,720,988 7,226,513
Other refundable deposits 3,853,922 3,649,101
11,574,910 10,875,614
Deferred input VAT 7,815,878 8,623,546
Accounts receivable - BIR – 8,960,245
P
=77,221,097 =76,108,530
P
On October 20, 2008, the Parent Company made an initial contribution of P =8,200,000 to the CTGF of
the SCCP as a prerequisite to the Parent Company’s accreditation as a clearing member of SCCP. On
August 20, 2009, the Parent Company made an additional contribution amounting to = P5,524,200 to
top-up the deficiency in the initial contribution.
The Parent Company recognized such contributions to the CTGF as noncurrent asset on the basis that
the BOD of SCCP approved on August 1, 2007 the amendment to the SCCP Clearinghouse Rule 5.2
granting the full refund of contributions to the CTGF upon cessation of the business of the clearing
member and upon termination of its membership with the SCCP. Such amendment is subject to SEC
approval.
In addition, the Parent Company, as a clearing member, is required to pay monthly contributions to
the CTGF maintained by the SCCP equivalent to 1/500 of 1% of the Clearing Member’s total
monthly turnover value less block sales and cross transactions of the same flag. In 2017, the Parent
Company recognized the contributions as expenses included in ‘Stock exchange dues and fees’.
On March 13, 2018, the SEC resolved to approve SCCP’s proposed amendments to SCCP Rule 5.2,
making the Clearing Members’ contributions to the CTGF refundable upon cessation of their business
and/or termination of their membership with SCCP, provided that all liabilities owing to SCCP at the
time of termination, whether actual or contingent, shall have been satisfied or paid in full.
Accordingly, the Parent Company recognized the total refundable contributions as of
December 31, 2018 as ‘Other noncurrent assets’ amounting to P =38,791,026. Prior to the approval of
SCCP’s proposed amendments, the Parent Company recognized an allowance for credit losses
amounting to P=13,724,200 representing the full amount of the initial contribution in 2008 and
additional contribution in 2009. In 2018, the Parent Company’s ‘Recovery from impairment losses’
and ‘Other income’ accounts pertain to the reversal of the related allowance for credit losses
amounting to P=13,724,200 and the contributions in prior years amounting to = P21,510,200,
respectively.
Other refundable deposits include statutory deposits made to HKEX, admission fees for HK’s SFC
and for HK Securities Clearing Company Ltd., and contributions to Central Clearing and Settlement
System Guarantee Fund.
Accounts receivable – BIR pertains to the tax credit certificate (TCC) issued by the BIR to the Parent
Company. The TCC was applied by the Parent Company against its income tax liability in 2019.
*SGVFS039143*
- 32 -
13. Trade Payables
2019 2018
Customers (Note 20) P
=8,102,010,305 =8,989,453,360
P
Clearing house 83,887,572 265,379,830
Dividends payable – 22,160
P
=8,185,897,877 =9,254,855,350
P
The Group’s trade payables to customers and their security valuation follow:
2019 2018
Money Security Money Security
Balance Valuation-Long Balance Valuation-Long
Payable to customers:
With money balances =8,102,010,305
P =60,513,955,722
P =8,989,453,360
P =60,448,272,436
P
No money balances − 1,214,473,806 − 911,876,634
=8,102,010,305
P =61,728,429,528
P =8,989,453,360
P =61,360,149,070
P
Generally, trade payables to customers are noninterest-bearing and have no specific credit terms.
Payable to customers with money balances amounting to P =150,854,848 and = P133,701,018 as at

December 31, 2019 and 2018, respectively, were payable to COLHK’s clients in respect of the trust
and segregated bank balances received and held for clients in the course of conduct of regulated
activities. These balances are payable on demand.
Trade payables to clearing house as at December 31, 2019 and 2018 were subsequently paid in
January 2020 and 2019, respectively. These are noninterest-bearing and are settled on two (2) trading
days’ term and three (3) trading days’ term following the settlement convention of HK and
Philippines clearing houses, respectively.
14. Other Current Liabilities
2019 2018
Accrued expenses P
=25,587,964 =36,643,298
P
Due to BIR 21,977,464 28,273,890
Accrued management bonus 16,776,870 25,626,821
Unposted customers' deposits 10,954,090 7,163,356
Trading fees 1,931,751 2,655,018
Others 7,740,242 6,790,284
P
=84,968,381 =107,152,667
P
Accrued expenses and accrued management bonus pertain to accruals of operating expenses that were
incurred but not yet paid and accruals made for the officers and employees’ performance bonus.
Due to BIR consists of sales transactions, withholding and output taxes payable to the Philippine BIR.
*SGVFS039143*
- 33 -
Unposted customers’ deposits represent additional funding, remittances and initial deposits made by
customers that were received beyond the cut-off time for the back-office processing of collections.
These were credited to the customers’ trading accounts on the next business day following the end of
the reporting period.
Trading fees pertain to transaction costs and clearing fees on the purchase and sale of stocks that are
payable to the regulatory bodies.
‘Others’ consist of liabilities to customers arising from mutual fund redemption, which are
subsequently settled upon collection of funds from the mutual fund providers. This account also
includes other payroll-related liabilities.
15. Equity
Capital Stock
The details and movements of the Parent Company’s capital stock (number and amounts of shares in
thousands) follow:
Shares Amount
Common stock - P =1 per share
Authorized 1,000,000 =1,000,000
P
Issued and outstanding
Balances at beginning and end of year 476,000 =476,000
P
All issued and outstanding shares of the Parent Company are listed with the PSE (Note 1). As of
December 31, 2019 and 2018, there were 33 holders of the listed shares of the Parent Company, with
its share price closing at =
P18.42 and =
P16.24 per share, respectively.
The history of share issuance during the last five years follows:
Number of
Year Issuance Listing Date Shares issued
2016 Stock options exercise July 4, 2016 1,000,000
2015 Stock options exercise July 16, 2015 250,000
2015 Stock options exercise April 14, 2015 200,000
Retained Earnings
In compliance with SRC Rule 49.1 B, Reserve Fund, the Parent Company appropriates annually ten
percent (10%) of its audited net income and transfers the same to appropriated retained earnings
account. Minimum appropriation shall be 30.0%, 20.0% and 10.0% of profit after tax for broker
dealers with unimpaired paid up capital between P =10.0 million to =
P30.0 million, between
=30.0 million to P
P =50.0 million and more than P=50.0 million, respectively. It is intended that in the
event that the Parent Company’s paid-up capital is impaired, the Parent Company will be required to
transfer from the appropriated retained earnings to the capital account an amount equivalent to the
impairment. Such amount so transferred out shall not be made available for payment of dividend.
In 2019 and 2018, the BOD approved the appropriation of retained earnings amounting to
=56.0 million and =
P P40.9 million, respectively, in compliance with such requirement.
*SGVFS039143*
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On March 29, 2019, the BOD declared a regular and a special dividend amounting to P =0.21 per share
held or P
=99,960,000 (476,000,000 shares multiplied by P =0.21 cash dividend per share) and P
=0.64 per
share held or =
P304,640,000 (476,000,000 shares multiplied by P =0.64 cash dividend per share),
respectively, to stockholders as of record date of April 16, 2019. These dividends were paid on
May 3, 2019.
On April 13, 2018, the BOD declared a regular and a special dividend amounting to P =0.15 per share
held or P
=0.55 per
share held or =
May 10, 2018.
On March 30, 2017, the BOD declared a regular and a special dividend amounting to P =0.14 per share
held or P
=0.46 per
share held or =
May 12, 2017.
As of December 31, 2019 and 2018, the consolidated retained earnings includes the retained earnings
of COLHK amounting to P =147,230,206 and P=167,658,454, respectively, which are not available for
dividend declaration until such amounts are declared to the Parent Company.
Non-Controlling Interest
In 2019, the Parent Company formed a new subsidiary, CIMI. As of December 31, 2019, the Parent
Company held 70% of the voting shares while 30% of equity interest are held by non-controlling
interest.
The summarized financial information of CIMI is provided below. This information is based on
amounts before inter-company eliminations.
Summarized statement of financial position as of December 31, 2019
Cash and cash equivalents (current) =70,238,812

P
Other receivables (current) 451,889
Other current assets (current) 14,594
Property and equipment (non-current) 3,811,266
Due to Parent Company (current) (854,504)
Total equity =73,662,057
P
Attributable to:
Equity holders of the Parent Company =51,563,440
P
Non-controlling interest 22,098,617
Summarized statement of income for the year ended December 31, 2019
Interest income =884,156

P
Operating expenses (2,045,268)
Loss before income tax (1,161,112)
Provision for income tax 176,831
Net loss (P
=1,337,943)
Attributable to:
Equity holders of the Parent Company (P
=936,560)
Non-controlling interest (401,383)
*SGVFS039143*
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Summarized cash flow information for the year ended December 31, 2019
Operating activities (P
=4,761,188)
Investing activities 75,000,000
Net increase in cash and cash equivalents =70,238,812
P
16. Revenues
2019 2018 2017

Revenue from contracts with
customers
Commissions P
=539,049,838 =702,931,280
P =678,725,716
P
Trail fees 17,365,097 14,730,081 10,578,055
Others 1,730,799 2,407,406 1,257,702
558,145,734 720,068,767 690,561,473
Other revenues
Interest income 527,716,977 422,227,848 250,460,547
Trading gains - net 41,501 14,107,532 17,202,792
Others 30,721 258,706 230,474
527,789,199 436,594,086 267,893,813
P
=1,085,934,933 =1,156,662,853
P =958,455,286
P
Set out below is the disaggregation of the Group’s revenue from contracts with customers:
2019
Commissions Trail fees Other income Total
Primary geographical markets
Philippines =529,163,152
P =17,365,097
P P782,882
= =547,311,131
P
Hong Kong 9,886,686 – 947,917 10,834,603
=539,049,838
P =17,365,097
P =1,730,799
P =558,145,734
P
2018
P =14,730,081
P 1,271,517 =703,359,854
P
Hong Kong 15,573,024 – 1,135,889 16,708,913
=702,931,280
P =14,730,081
P =2,407,406
P =720,068,767
P
2017
P =10,578,055
P P731,495
= =673,277,339
P
Hong Kong 16,757,927 – 526,207 17,284,134
=678,725,716
P =10,578,055
P =1,257,702
P =690,561,473
P
*SGVFS039143*
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Interest income earned consists of income from:
2019 2018 2017

Banks (Notes 4 and 5) P
=472,314,661 =370,543,382
P =181,575,770
P
Customers (Note 7) 48,118,796 44,357,869 66,939,815
Government securities (Note 8) 7,283,520 7,326,597 1,944,962
P
=527,716,977 =422,227,848
P =250,460,547
P
17. Personnel Costs
2019 2018 2017

Salaries and wages P
=134,280,836 =138,606,342
P =115,729,188
P
Retirement costs (Note 18) 5,696,718 5,568,707 4,385,708
Other benefits (Note 18) 15,695,331 14,025,714 8,494,045
P
=155,672,885 =158,200,763
P =128,608,941
P
Other benefits include monetized leave credits of employees and other regulatory benefits.
The above accounts were distributed as follows:
2019 2018 2017

Cost of services P
=93,662,645 =98,870,861
P =85,287,973
P
Operating expenses 62,010,240 59,329,902 43,320,968
P
=155,672,885 =158,200,763
P =128,608,941
P
18. Employee Benefits
Retirement Benefits
The Parent Company has a funded, non-contributory defined benefit retirement plan covering
substantially all of its regular employees. The benefits are based on a certain percentage of the final
monthly basic salary for every year of credited service of employees. The defined benefit obligation
is determined using the projected unit credit method. There was no plan termination, curtailment or
settlement for the years ended December 31, 2019, 2018 and 2017. The Parent Company’s retirement
fund is being held in trust by a trustee bank.
Under the existing regulatory framework, RA 7641, The Retirement Pay Law, requires a provision for
retirement pay to qualified private sector employees in the absence of any retirement plan in the
entity, provided however that the employee’s retirement benefits under any collective bargaining and
other agreements shall not be less than those provided under the law. The law does not require
minimum funding of the plan.
The following tables summarize the components of the Parent Company’s net retirement costs
recognized in the consolidated statements of income and the amounts recognized in the consolidated
statements of financial position:
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Retirement costs consist of:
2019 2018 2017

Current service cost (Note 17) P
=5,696,718 =5,568,707
P =4,385,708
P
Net interest expense 3,263,837 2,482,293 1,475,447
P
=8,960,555 =8,051,000
P =5,861,155
P
Current service cost is shown under ‘Personnel costs’ while net interest expense is shown under
‘Interest expense’ in the consolidated statements of income.
Movements in the retirement obligation recognized in the consolidated statements of financial

position follow:
2019 2018
Retirement obligation at beginning of year = 42,945,228
P =43,549,010
P
Retirement costs 8,960,555 8,051,000
Net actuarial losses 16,430,269 4,064,955
Contributions – (12,719,737)
Retirement obligation at end of year P
=68,336,052 =42,945,228
P
Retirement obligation is the net of the present value of defined benefit obligation and fair value of
plan assets computed as follows:
2019 2018
Present value of defined benefit obligation P
=78,027,472 P54,555,066
=
Fair value of plan assets (9,691,420) (11,609,838)
P
=68,336,052 =42,945,228
P
Changes in the present value of defined benefit obligation are as follows:
2019 2018
Opening present value of defined benefit obligation P
=54,555,066 =51,371,744
P
Current service cost 5,696,718 5,568,707
Interest cost 4,146,185 2,928,189
Remeasurement losses (gains) on:
Financial assumptions 15,926,166 (11,531,490)
Experience adjustments 192,077 15,139,714
Benefits paid (2,488,740) (8,921,798)
Closing present value of defined benefit obligation P
=78,027,472 =54,555,066
P
Changes in the fair value of plan assets follow:
2019 2018
Balances at beginning of year P
=11,609,838 =7,822,734
P
Expected interest income 882,348 445,896
Contributions – 12,719,737
Benefits paid (2,488,740) (8,921,798)
Remeasurement loss on plan assets (312,026) (456,731)
Balances at end of year P
=9,691,420 =11,609,838
P
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The major categories of plan assets as a percentage of the fair value of total plan assets are as follows:
2019 2018
Investment in government securities 73.18% –
Investment in unit investment trust funds (UITF) 24.66% 16.85%
Cash in bank 0.09% 83.05%
Other receivables 2.17% 0.20%
100.10% 100.10%
Accrued trust fees payable (0.10%) (0.10%)
100.00% 100.00%
The principal assumptions used in determining retirement obligation for the Parent Company’s plan
are shown below:
2019 2018
Discount rate 5.30% 7.60%
Future salary increases 5.00% 5.00%
Mortality rates
Male 0.06%-0.74% 0.08%-0.74%
Female 0.05%-0.61% 0.06%-0.61%
The sensitivity analysis has been determined based on reasonably possible changes of each significant
assumption on the defined benefit obligation as at December 31, 2019 and 2018 assuming all other
assumptions were held constant.
Increase (decrease) Increase (decrease) in defined

in significant benefit obligation
assumptions 2019 2018
Discount rates +0.50% (P
=3,994,975) (P
=2,500,632)
-0.50% 4,354,752 2,701,963
Future salary increases +0.50% 4,095,054 2,579,810

-0.50% (3,795,178) (2,407,665)
Mortality rate +1 year (284,820) (740,347)

-1 year (301,511) 821,056
The Parent Company does not perform any asset-liability matching strategy. The overall investment
policy and strategy of the retirement plan is based on the client suitability assessment, as provided by
its trust bank, in accordance with the requirements of the Bangko Sentral ng Pilipinas. It does not,
however, ensure that there will be sufficient assets to pay the retirement benefits as they fall due
while attempting to mitigate the various risks of the plan.
The Parent Company has no funding policies. As at March 6, 2020, the Parent Company has not yet
reasonably determined the amount of the 2020 contributions to the retirement plan.
*SGVFS039143*
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Shown below is the maturity analysis of the undiscounted benefit payments:
2019 2018
Zero (0) to five (5) years P
=33,470,365 =32,689,681
P
Six (6) to ten (10) years 49,568,126 35,295,372
Eleven (11) to fifteen (15) years 45,870,373 56,262,278
Beyond fifteen (15) years 408,006,877 371,332,958
P
=536,915,741 =495,580,289
P
The weighted average duration of the defined benefit obligation is 14 years in 2019, 2018 and 2017.
COLHK makes monthly contribution to a fund under the mandatory provident fund schemes
ordinance enacted by the HK Government. The plan is a defined contribution retirement plan. Under
the plan, COLHK should contribute five percent (5%) of the monthly relevant income of all its
qualified employees. The contribution recognized as ‘Other benefits’ under ‘Personnel costs’
amounted to P
=325,241, =P326,654 and =P318,277 in 2019, 2018 and 2017, respectively.
19. Income Taxes
Deferred Income Taxes
Components of net deferred tax assets (liabilities) of the Group follow:
2019 2018
Retirement obligation P
=8,047,889 P8,047,889
=
Accumulated translation adjustment (6,221,325) (9,377,638)
Unrealized trading gains (296,894) (538,456)
Allowance for credit losses 354,388 354,388
Unamortized past service cost 180,729 180,729
Unused tax losses 31,760 20,345
P
=2,096,547 (P
=1,312,743)
Realization of the future tax benefits related to the net deferred tax assets is dependent on many
factors, including the Group’s ability to generate taxable income, within the carry-over period. The
unused tax losses pertains to COLHK which can be carried forward indefinitely to offset future
profits.
The Group did not recognize deferred tax assets on the following temporary differences since
Management believes that it is not probable that the related benefits will be realized in the future:
2019 2018
Unused tax losses P
=236,671,768 =216,295,272
P
Retirement obligation 41,509,754 16,118,930
Unamortized past service cost 4,747,801 5,738,532
NOLCO 3,612,778 –
Leases under PFRS 16 1,548,958 –
Allowance for credit losses 911,655 296,943
Unrealized foreign exchange losses 17,823 2,134
P
=289,020,537 =238,451,811
P
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In 2019, 2018 and 2017, the Parent Company availed of the optional standard deduction (OSD)
method in claiming its deductions.
A reconciliation of provision for income tax computed at the statutory income tax rates to net
provision for income tax shown in the consolidated statements of income follows:
2019 2018 2017

Income tax at statutory income tax rate P
=189,119,216 P
=217,999,309 P
=153,436,932
Additions to (reductions in) income tax
resulting from:
Unrecognized DTA 7,490,710 35,481,223 4,386,085
Interest income subjected to final tax (47,715,484) (37,551,395) (18,291,479)
40% OSD 20,398,752 (3,646,650) (8,307,006)
Tax-exempt income (31,431) (78,733) (69,142)
Effect of lower income tax rate in HK 2,760,848 1,906,419 1,579,836
Provision for income tax P
=172,022,611 = P214,110,173 =P132,735,226
*SGVFS039143*
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20. Related Party Disclosures
a. The summary of significant transactions and account balances with related parties are as follows:
Commission Commission
Category income Interest income expense Professional fees Directors’ fees Trade receivables Trade payables
Key management personnel
2019 P
=1,639,464 P
=328,290 P
=– P
=– P
=– P
=36,150,772 P
=44,684,302
2018 2,052,658 454,128 – – – 15,483,080 96,330,087
2017 2,525,811 235,279 – – – 2,818,657 90,885,505
Companies with common officers, directors and stockholders

2019 P
=7,214,699 P=2,606,146 P
=– P
=4,798,621 P
=– P
=28,793,203 P
=18,088,418
2018 10,158,475 2,232,315 – 4,878,978 – 40,827,421 18,458,230
2017 8,973,675 1,620,428 – 4,695,874 – 13,698,083 29,633,390
Directors, officers and employees

2019 P
=7,520,940 P
=1,073,061 P
=– P
=– P
=1,750,000 P
=2,704,863 P
=101,569,142
2018 7,563,968 610,563 – – 1,682,500 – 129,806,076
2017 8,255,999 485,492 – – 870,000 13,916,822 29,932,978
Trade receivables from and payables to related parties are due to be settled in three (3) trading days in the Philippines and two (2) trading days in HK, except for trade
receivables under margin accounts. Trade receivables from related parties under margin accounts are interest-bearing, not guaranteed, and secured by shares of
stocks (except for trade receivables amounting to =P39 and P
=211, which were unsecured as of December 31, 2019 and 2018, respectively (Note 7). The trade
receivables from related parties are not impaired.
b. As of December 31, 2019 and 2018, the Group also has unsecured noninterest-bearing advances to its officers and employees amounting to =
P1,220,034 and P
=918,030
with terms ranging from six months to one year, which are included under ‘Other receivables’ (Note 7).
*SGVFS039143*
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c. Compensation of key management personnel of the Group follows:
2019 2018 2017

Short-term employee benefits P
=70,924,936 =85,353,650
P =67,820,730
P
Retirement costs (Note 18) 2,634,585 2,222,877 2,665,901
P
=73,559,521 =87,576,527
P =70,486,631
P
Short-term employee benefits include management bonus.
21. Leases
The Group leases its office premises under separate operating lease agreements expiring on various
dates and whose lease terms are negotiated every one (1) to three (3) years. Rental costs charged to
operations amounted to P=22,494,380 in 2018 and =P17,034,409 in 2017.
Upon adoption of PFRS 16, the Group applied a single recognition and measurement approach for all
leases. Set-out below are the carrying amount of lease liabilities and the movements during the period:
At beginning of year, as previously reported =–

P
Effect of adoption of PFRS 16 26,476,920
At beginning of year, as restated 26,476,920
Additions 55,420,102
Accretion of interest 2,937,247
Payments (27,562,609)
Translation adjustment (49,542)
At end of year =57,222,118
P
Current =20,767,513
P
Non-current 36,454,605
=57,222,118
P
The following are the amounts recognized in the consolidated statement of income:
2019
Depreciation expense of right-of-use assets included in property and
equipment (Note 9) =26,205,737
P
Interest expense on lease liabilities 2,937,247
=29,142,984
P
The Group also has lease contracts on low-value assets. The Group applies the recognition
exemption for these leases. Rental costs charged to operations pertaining to leases of low-value
assets amounted to P
=207,015 in 2019.
*SGVFS039143*
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Shown below is the maturity analysis of the undiscounted lease payments:
2019 2018
Within one (1) year P
=23,739,029 =19,481,096
P
After one (1) year but not more than five (5) years 31,132,027 8,894,197
After five (5) years 12,700,800 –
P
=67,571,856 =28,375,293
P
22. Capital Management
The primary objective of the Group’s capital management is to ensure that the Group maintains
healthy capital ratios in order to support its business, pay existing obligations and maximize
shareholder value. The Group manages its capital structure and makes adjustments to it, in light of
changes in economic conditions. No changes were made in the objectives, policies or processes
during the years ended December 31, 2019, 2018 and 2017.
The Amended Implementing Rules and Regulations of the SRC effective March 6, 2004 include,
among others, revisions in the terms and conditions for registration and subsequent renewal of license
applicable to both exchange trading participants and non-exchange broker dealers as follows: (a) to
allow a net capital of P=2.5 million or 2.50% of aggregate indebtedness, whichever is higher, for
broker dealers dealing only in proprietary shares and not holding securities, (b) to allow the SEC to
set a different net capital requirement for those authorized to use the Risk-Based Capital Adequacy
(RBCA) model, and (c) to require unimpaired paid-up capital of = P100.0 million for broker dealers,
which are either first time registrants or those acquiring existing broker dealer firms and will
participate in a registered clearing agency; P=10.0 million plus a surety bond for existing broker
dealers not engaged in market making transactions; and P =2.5 million for broker dealers dealing only
in proprietary shares and not holding securities.
The SEC approved Memorandum Circular No. 16 dated November 11, 2004 which provides the
guidelines on the adoption in the Philippines of the RBCA Framework for all registered brokers
dealers in accordance with SRC. These guidelines cover the following risks: (a) position or market
risk, (b) credit risks such as counterparty, settlement, large exposure, and margin financing risks, and
(c) operational risk.
The Parent Company being a registered broker in securities is subject to the stringent rules of the
SEC and other regulatory agencies with respect to the maintenance of specific levels of RBCA ratios.
RBCA is a ratio that compares the broker or dealer’s total measured risk to its liquid capital. As a
rule, the Parent Company must maintain an RBCA ratio of at least one hundred ten percent
(110.00%) and a net liquid capital (NLC) of at least =
P5.0 million or five percent (5.00%) of its
aggregate indebtedness, whichever is higher. Also, the Aggregated Indebtedness (AI) of every
stockbroker should not exceed two thousand percent (2,000.00%) of its NLC. In the event that the
minimum RBCA ratio of one hundred ten percent (110.00%) or the minimum NLC is breached, the
Parent Company shall immediately cease doing business as a broker and shall notify the PSE and
SEC. As at December 31, 2019 and 2018, the Parent Company is compliant with the foregoing
requirements.
The Parent Company’s capital pertains to equity per books adjusted for deferred tax assets and assets
not readily convertible into cash.
*SGVFS039143*
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The RBCA ratio of the Parent Company as at December 31, 2019 and 2018 are as follows:
2019 2018
Equity eligible for NLC P
=1,587,676,607 =1,511,792,250
P
Less ineligible assets 559,526,675 335,040,045
NLC P
=1,028,149,932 =1,176,752,205
P
Position risk P
=4,247,476 =9,102,431
P
Operational risk 189,014,295 164,470,546
Counterparty risk – –
Total Risk Capital Requirement (TRCR) P
=193,261,771 =173,572,977
P
AI P
=8,023,673,289 =9,064,514,225
P
5.00% of AI P
=401,183,664 =453,225,711
P
Required NLC P
=401,183,664 =453,225,711
P
Net Risk-Based Capital Excess P
=626,966,268 =723,526,494
P
Ratio of AI to NLC 780% 770%
RBCA ratio (NLC/TRCR) 532% 678%
The following are the definition of terms used in the above computation:
1. Ineligible assets
These pertain to fixed assets and assets which cannot be readily converted into cash.
2. Operational risk requirement

The amount required to cover a level of operational risk which is the exposure associated with
commencing and remaining in business arising separately from exposures covered by other risk
requirements. It is the risk of loss resulting from inadequate or failed internal processes, people
and systems which include, among others, risks of fraud, operational or settlement failure and
shortage of liquid resources, or from external events.
3. Position risk requirement

The amount necessary to accommodate a given level of position risk which is the risk a broker
dealer is exposed to and arising from securities held by it as a principal or in its proprietary or
dealer account.
4. AI
Total money liabilities of a broker dealer arising in connection with any transaction whatsoever,
and includes, among other things, money borrowed, money payable against securities loaned and
securities failed to receive, the market value of securities borrowed to the extent to which no
equivalent value is paid or credited (other than the market value of margin securities borrowed
from customers and margin securities borrowed from non-customers), customers’ and non-
customers’ free credit balances, and credit balances in customers’ and non-customers’ account
having short positions in securities subject to the exclusions provided in the said SEC
Memorandum.
On May 28, 2009, the SEC approved the PSE’s Rules Governing Trading Rights and Trading
Participants, which supersede the Membership Rules of the PSE. Section 8(c) of Article III of
the said rules requires trading participants to have a minimum unimpaired paid-up capital, as defined
by the SEC, of = P20.0 million effective December 31, 2009, and =
P30.0 million effective
December 31, 2011 and onwards. In 2019 and 2018, the Parent Company is compliant with this
capital requirement.
*SGVFS039143*
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The Parent Company’s regulated operations have complied with all externally-imposed capital
requirements as at December 31, 2019 and 2018.
COLHK monitors capital using liquid capital as provided for under HK’s Securities and Futures
Ordinance (Cap. 571) and Securities and Futures (Financial Resources) Rules (Cap. 571N).
COLHK’s policy is to keep liquid capital at the higher of the floor requirement of HK$3.00 million
and computed variable required capital. As at December 31, 2019 and 2018, COLHK is compliant
with the said requirement.
23. Financial Risk Management Objectives and Policies
The main purpose of the Group’s financial instruments is to fund its operations. The Group’s
principal financial instruments consist of cash and cash equivalents, cash in a segregated account,
short-term time deposits, financial assets at FVTPL, trade receivables, other receivables, long-term
time deposit, refundable deposits under other noncurrent assets, trade payables and other current
liabilities, which arise from operations.
The main risks arising from the Group’s financial instruments are credit risk, liquidity risk, equity
price risk and foreign currency risk.
The BOD reviews and agrees on the policies for managing each of these risks which are summarized
below:
Credit risk
Credit risk refers to the potential loss arising from any failure by counterparties to fulfill their
obligations, as and when they fall due. It is inherent to the stock brokerage business as potential
losses may arise due to the failure of its customers and counterparties to fulfill their trading
obligations on settlement dates or the possibility that the value of collateral held to secure obligations
becoming inadequate due to adverse market conditions.
The business model of the Group minimizes its exposure to credit risk. The Group’s customers,
except those granted with a credit line facility by the Parent Company, are required to deposit funds
to their accounts and their purchases are limited to their cash deposit. In order to manage the
potential credit risk associated with the Parent Company’s margin lending activities, the Group has
established policies and procedures in evaluating and approving applications for margin financing as
well as the review of credit performance and limits. In addition, the Parent Company requires its
margin customers a Two Peso (P =2) security cover for every One Peso (P =1) exposure. The security
cover can either be in cash or a combination of cash and marginable stock identified by the Parent
Company using a set of criteria.
The Group utilizes an internal credit rating system based on its assessment of the quality of its
financial assets. The Group classifies its financial assets into the following credit grades:
· High grade - This pertains to accounts with a very low probability of default as demonstrated by
the counterparty’s long history of stability, profitability and diversity. This applies to highly
rated financial obligors, strong corporate counterparties and personal borrowers with whom the
Group has excellent repayment experience.
· Standard grade – This pertains to counterparties with no history of default. This applies to
financial assets that are performing as expected.
*SGVFS039143*
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Financial assets at amortized cost

The Group’s financial assets at amortized cost, which are neither past due nor impaired, are classified
as high grade, due to its high probability of collection (i.e. the counterparty has the evident ability to
satisfy its obligation and the security on the receivables are readily enforceable).
Cash and cash equivalents, cash in a segregated account, short-term time deposits and long-term time
deposit are considered high grade and are in stage 1 of the ECL model. These are deposited with
reputable banks duly approved by the BOD and have low probability of insolvency. These are
considered to be low credit risk investments.
Trade receivables from margin customers have no specific credit terms but customers are required to
maintain the value of their collateral within a specific level. Once the value of the collateral falls
down this level, customers may either deposit additional collateral or sell stock to cover any shortfall.
Meanwhile, receivables from post-paid customers are required to be settled on two (2) trading days’
term for COLHK and three (3) trading days’ term for the Parent Company. The receivable balances
become demandable upon failure of the customer to duly comply with these requirements. As at
December 31, 2019 and 2018, = P704,473,287 and P =725,741,502 of the total receivables from
customers is secured by collateral comprising of equity securities of listed companies with a total
market value of =P3,984,013,048 and P =3,472,639,844, respectively (Note 7).
An impairment analysis is performed at each reporting date using a provision matrix to measure
expected credit losses. The provision matrix is based on the Group’s historical observed default rates.
The calculation reflects the probability-weighted outcome, the time value of money and reasonable
and supportable information that is available at the reporting date about past events, current
conditions and forecasts of future economic conditions.
The aging analyses of the Group’s trade receivables as at December 31, 2019 and 2018 are
summarized in the following table (gross of allowance for credit losses):
2019
Neither Days past due
past due nor More than Specifically
impaired 4-14 days 15-31 days 31 days impaired Total
2019
Trade receivables P
=299,681,644 P
=104,645,402 P
=44,838,336 P
=417,200,366 P
=– P
=866,365,748
2018
Trade receivables 243,665,774 73,901,199 100,219,240 394,740,173 – 812,526,386
Past due accounts pertain to margin accounts of the Parent Company that are charged an interest rate
ranging from 8.00% to 10.00%. A margin account has no due date and becomes demandable only
when the equity percentage of the customers falls below 33.33%. The loss rate for trade receivables
is considered minimal.
Transactions through the stock exchange are covered by the guarantee fund contributed by member
brokers and maintained by the clearing house.
Refundable deposits under other noncurrent assets is classified as high grade and is in stage 1 of the
ECL model since the amount shall be kept intact by: (1) the lessor throughout the term of the contract
and shall be returned after the term; and (2) the government institutions as a requirement to conduct
stock brokerage business and shall be returned after the Group ceases to operate its business.
*SGVFS039143*
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Financial assets at FVTPL

Companies that are consistently profitable, have strong fundamentals and pays out dividends.
As at December 31, 2019 and 2018, the Group’s financial assets at FVTPL are classified as high
grade since these are with entities of good reputation.
Investment securities at amortized cost

The investment is classified as high grade since this is a retail treasury bond issued by the Philippine
government and there is a high probability of collecting the principal and coupon payments.
Deposit and refundable contributions to CTGF

Deposit and refundable contributions to CTGF pertains to contribution made by the Parent Company
to a guarantee fund as required by the SCCP and is classified as high grade. The Parent Company
does not expect significant exposure on the balance as the amount shall be kept intact by the SCCP as
a requirement to conduct stock brokerage business and shall be returned after the Parent Company
ceases to operate its business.
Other receivables
These receivables from counterparties with no history of default and are not past due as at the end of
the reporting period are classified as standard grade.
Collateral and other credit enhancement

Margin customers are required to maintain the value of their collateral within a specific level. Once
the value of the collateral falls down this level, customers may either deposit additional collateral or
sell stock to cover their shortfall.
Collateral comes in the form of financial assets. This pertains to securities listed and traded in the
PSE and lodged with the Philippine Depository and Trust Corporation under the account of the Parent
Company. The market value of the securities is closely monitored to ensure compliance with the
required levels of collaterals.
The Group’s exposure to credit risk arising from default of the counterparty has a maximum exposure
equal to the carrying amount of the particular instrument plus any irrevocable loan commitment or
credit facility.
There are no significant concentrations of credit risk within the Group.
Maximum exposure to credit risk after collateral held or other credit enhancements
The maximum exposure to credit risk is the carrying value at the reporting date of each class of
financial assets of the Group except for receivables from customers wherein the Group holds
collateral as security.
The table below shows the maximum exposure to credit risk for the component of the consolidated
statements of financial position:
2019 2018
Cash and cash equivalents (Note 4)* P
=8,225,977,521 =8,897,533,179
P
Cash in a segregated account (Note 5) 137,679,325 133,788,336
Short-term time deposits (Note 4) 200,000,000 626,000,000
Trade receivables (Note 7) 529,025 2,804,307
Other receivables (Note 7) 48,067,874 52,041,067
(Forward)
*SGVFS039143*
- 48 -
2019 2018
Long-term time deposit (Note 4) P
=200,000,000 P
=200,000,000
Refundable deposits (Note 12) 11,574,910 10,875,614
Deposit and refundable contributions to CTGF (Note 12) 41,632,750 38,791,026
Investment securities at amortized cost (Note 8) 200,348,264 201,564,744
9,065,809,669 10,163,398,273
Unutilized margin trading facility 4,891,448,596 4,869,567,470
P
=13,957,258,265 =
P15,032,965,743
*Excluding cash on hand
Liquidity Risk
Liquidity risk arises from the possibility that the Group may encounter difficulties in raising funds to
meet commitments from financial instruments or that a market for derivatives may not exist in some
circumstances.
The Group manages its liquidity profile to meet the following objectives: a) to ensure that adequate
funding is available at all times; b) to meet commitments as they arise without incurring unnecessary
costs; and c) to be able to access funding when needed at the least possible cost.
As at December 31, 2019 and 2018, all of the Group’s financial liabilities, which consist of trade
payables and other current liabilities (except statutory payables), are contractually payable on demand
and up to sixty (60) days’ term.
Correspondingly, the financial assets that can be used by the Group to manage its liquidity risk as at
December 31, 2019 and 2018 consist of cash and cash equivalents, short-term time deposits, financial
assets at FVTPL and trade receivables.
Market Risk
Market risk is the risk of loss to future earnings, to fair values or to future cash flows that may result
from changes in the price of a financial instrument. The value of a financial instrument may change
as a result of changes in interest rates, foreign currency exchanges rates, commodity prices, equity
prices and other market changes. The Group’s market risk originates from its holdings of equity
instruments and foreign currency-denominated financial instruments.
Equity Price Risk

Equity price risk is the risk to earnings or capital arising from changes in stock exchange indices
relating to its quoted equity securities. The Group’s exposure to equity price risk relates primarily to
its financial assets at FVTPL which pertain to investments in shares of stock of companies listed in
the PSE and in mutual fund shares. The Group’s policy is to maintain the risk within an acceptable
level. Movement in share price is monitored regularly to determine the impact on its financial
position.
Since the carrying amount of financial assets subject to equity price risk is immaterial relative to the
consolidated financial statements, Management believes that disclosure of equity price risk sensitivity
analysis for 2019 and 2018 is not significant.
Foreign Currency Risk

The Group’s policy is to maintain foreign currency exposure within acceptable limits and within
existing regulatory guidelines. The Group believes that its profile of foreign currency exposure on its
assets and liabilities is within conservative limits for a financial institution engaged in the type of
business in which the Group is engaged.
*SGVFS039143*
- 49 -
The Group’s exposure to foreign currency exchange risk arises from its US$-denominated cash in
banks amounting to US$9,517 and US$210,636 as at December 31, 2019 and 2018, respectively
(Note 4).
Since the amount of US$-denominated cash in bank subject to foreign currency risk is immaterial
relative to the consolidated financial statements, Management believes that disclosure of foreign
currency risk analysis for 2019 and 2018 is not significant.
Offsetting of Financial Assets and Liabilities

The table below presents information about rights to offset related arrangements (such as collateral
posting requirements) for financial instruments under an enforceable master netting agreements or
similar agreements.
2019
Effect of Remaining Rights of
Set-Off (Including Rights to Set
Net Amount Off Financial Collateral) that
Gross Amounts Presented in do not Meet PAS 32
Financial Instruments Gross Carrying Offset in Consolidated Offsetting Criteria
Recognized at Amounts Accordance with Statements of Fair Value of
End of Reporting (Before the Offsetting Financial Financial Financial
Period by Type Offsetting) Criteria Position Instruments Collateral Net Exposure
[a] [b] [c] = [a-b] [d] [e] [f] = [c-d]
Financial Assets
Receivable from customers P704,473,326
= P–
= P704,473,326
= P7,984,917
= =–
P = 696,488,409
P
Due from clearing house 124,656,703 – 124,656,703 83,887,572 40,769,131
= 829,130,029
P =–
P = 829,130,029
P = 91,872,489
P =–
P = 737,257,540
P
Payable to customers = 8,102,010,305
P P– P
= = 8,102,010,305 P7,984,917
= P– P
= = 8,094,025,388
Due to clearing house 83,887,572 – 83,887,572 83,887,572 – –
= 8,185,897,877
P =– P
P = 8,185,897,877 = 91,872,489
P =– P
P = 8,094,025,388
2018
Effect of Remaining Rights of
Set-Off (Including Rights to Set
Net Amount Off Financial Collateral) that do
Gross Amounts Presented in not Meet PAS 32
Financial Instruments Gross Carrying Offset in Consolidated Offsetting Criteria
Recognized at Amounts Accordance with Statements of Fair Value of
End of Reporting (Before the Offsetting Financial Financial Financial
Period by Type Offsetting) Criteria Position Instruments Collateral Net Exposure
[a] [b] [c] = [a-b] [d] [e] [f] = [c-d]
Financial Assets
Receivable from customers P725,741,713
= =–
P P725,741,713
= =4,475,220
P =–
P P721,266,493
=
=725,741,713
P P–
= =725,741,713
P P4,475,220
= P–
= =721,266,493
P
Payable to customers P8,989,453,360
= P– =
= P8,989,453,360 P4,475,220
= P– =
= P8,984,978,140
=8,989,453,360
P =– P
P =8,989,453,360 =4,475,220
P =– P
P =8,984,978,140
*SGVFS039143*
- 50 -
24. Fair Value Measurement
The following table shows the carrying value and fair value of the Group’s refundable deposits,
investment securities at amortized cost and investment property, whose carrying value does not
approximate its fair value as at December 31, 2019 and 2018:
Carrying Values Fair Values

2019 2018 2019 2018
Refundable deposits P
=11,574,910 P=10,875,614 P
=10,082,124 =9,473,015
P
Investment securities at
amortized cost 200,348,264 201,564,744 199,903,251 194,860,902
Investment property 15,758,762 16,634,249 39,567,000 35,610,300
The carrying amounts of cash and cash equivalents, cash in a segregated account, short-term time
deposits, trade receivables, other receivables, trade payables and other current liabilities, which are all
subject to normal trade credit terms and are short-term in nature, approximate their fair values.
The carrying value of long-term time deposit approximates its fair value since the placement earns
interest at prevailing market rates.
Financial Assets at FVTPL

The Group’s financial assets at FVTPL are carried at their fair values as at December 31, 2019
and 2018. Fair value of equity securities is based on the closing quoted prices of stock investments
published by the PSE. Fair value of mutual funds is based on net asset values computed and
published by the mutual fund providers.
Refundable Deposits
The fair value of the refundable deposits is based on the present value of the future cash flows
discounted using credit adjusted risk-free rates for a similar type of instrument using 2.80% as at
December 31, 2019 and 2018. There are no changes in the valuation techniques in 2019 and 2018.
Investment securities at amortized cost

The fair value of the investment is based on the quoted market price in an active market as at
December 31, 2019 and 2018.
Investment Property
The fair value of the investment property has been based on highest and best use of property being
appraised. Valuations were derived on the basis of recent sales of similar properties in the same areas
as the investment property and taking into account the economic conditions prevailing at the time the
valuations were made and comparability of similar properties sold with the property being valued.
Fair Value Hierarchy

All assets and liabilities for which fair value is measured or disclosed in the consolidated financial
statements are categorized within the fair value hierarchy as follows:
2019
Level 1 Level 2 Level 3
Asset measured at fair value:
Financial assets at FVTPL P
=3,329,077 P
=674,252 P
=–
*SGVFS039143*
- 51 -
2019
Asset for which fair values are disclosed:
Refundable deposits P
=– P
=– P
=10,082,124
Investment securities at amortized cost 199,903,251 – –
Investment property – – 39,567,000
2018
Asset measured at fair value:
Financial assets at FVTPL =3,018,331
P =206,832
P =–
P
Asset for which fair values are disclosed:
Refundable deposits – – 9,473,015
Investment securities at amortized cost 194,860,902 – –
Investment property – – 35,610,300
During the years ended December 31, 2019 and 2018, there were no transfers among levels 1, 2
and 3 of fair value measurements.
25. EPS Computation
2019 2018 2017

Net income attributable to the equity holders of
the Parent Company P
=458,776,159 P
=512,554,189 P
=378,721,215
Weighted average number of shares for basic
earnings per share 476,000,000 476,000,000 476,000,000
Dilutive shares arising from stock options – – –
Adjusted weighted average number of
common shares for diluted earnings per
share 476,000,000 476,000,000 476,000,000
Basic EPS P
=0.96 =1.08
P =0.80
P
Diluted EPS P
=0.96 =1.08
P =0.80
P
26. Segment Information
Business Segments
The Group’s business segments follow:
· Stockbrokerage services pertaining to the Group’s stockbrokerage companies, mainly the Parent
Company and COLHK; and
· Others pertaining to the Group’s subsidiaries other than COLHK.
*SGVFS039143*
- 52 -
The following table presents certain information regarding the Group’s business segments:
2019
Stockbrokerage
services Others Elimination Total
Revenue from external customers:
Commissions P
=539,049,838 P
=– P
=– P
=539,049,838
Interest 525,604,623 2,112,354 – 527,716,977
Trail fees 17,365,097 – – 17,365,097
Others 1,803,021 – – 1,803,021
Segment revenue 1,083,822,579 2,112,354 – 1,085,934,933
Cost of services (193,274,599) – – (193,274,599)
Operating expenses, net of other income (200,252,889) (3,329,832) – (203,582,721)
Depreciation and amortization (58,397,280) (282,946) – (58,680,226)
Income (loss) before income tax 631,897,811 (1,500,424) – 630,397,387
Provision for income tax (171,600,140) (422,471) – (172,022,611)
Net income (loss) P
=460,297,671 (P
= 1,922,895) P
=– P
=458,374,776
Segment assets P
=10,263,068,214 P
=174,178,409 (P
= 288,154,504) P
=10,149,092,119
Segment liabilities 8,402,795,718 1,101,304 (854,504) 8,403,042,518
Capital expenditures:
Fixed assets 40,488,651 4,094,212 – 44,582,863
Cash flows arising from:
Operating activities (210,080,797) (1,671,492) – (211,752,289)
Investing activities (198,542,263) (4,094,212) 152,500,000 (50,136,475)
Financing activities (432,162,609) 175,000,000 (152,500,000) (409,662,609)
Geographical Information
For management purposes, the Group is organized into business units based on its geographical
location and has two (2) reportable segments as follows:
· Philippine segment, which pertains to the Group’s Philippine operations.

· Hong Kong segment, which pertains to the Group’s HK operations.
The following tables present certain information regarding the Group’s geographical segments:
2019
Philippines Hong Kong Elimination Total
Commissions P
=529,163,152 P
=9,886,686 P
=– P
=539,049,838
Interest 527,706,744 10,233 – 527,716,977
Trail fees 17,365,097 – – 17,365,097
Others 855,104 947,917 – 1,803,021
Segment revenue 1,075,090,097 10,844,836 – 1,085,934,933
Cost of services (173,358,672) (19,915,927) – (193,274,599)
Depreciation and amortization (56,291,221) (2,389,005) – (58,680,226)
Provision for income tax (172,034,860) 12,249 – (172,022,611)
Net income (loss) P
=478,803,024 (P
= 20,428,248) P
=– P
=458,374,776
Segment assets P
=9,984,241,387 453,005,236 (P
= 288,154,504) P
=10,149,092,119
Segment liabilities 8,247,438,416 156,458,606 (854,504) 8,403,042,518
Fixed assets 44,555,775 27,088 – 44,582,863
Operating activities (223,452,377) 11,700,088 – (211,752,289)
Investing activities (202,609,387) (27,088) 152,500,000 (50,136,475)
Financing activities (254,757,955) (2,404,654) (152,500,000) (409,662,609)
*SGVFS039143*
- 53 -
2018
Commissions P687,358,256
= =15,573,024
P P–
= P702,931,280
=
Interest 422,222,322 5,526 – 422,227,848
Trail fees 14,730,081 – – 14,730,081
Others 15,637,755 1,135,889 – 16,773,644
Segment revenue 1,139,948,414 16,714,439 – 1,156,662,853
Cost of services (200,980,119) (19,845,333) – (220,825,452)
Depreciation and amortization (25,812,755) – – (25,812,755)
Provision for income tax (180,752,435) (33,357,738) – (214,110,173)
Net income (loss) =560,033,555
P (P
=47,479,366) =–
P =512,554,189
P
Segment assets =10,792,266,848

P P459,831,491
= (P
=133,487,257) =
P11,118,611,082
Segment liabilities 9,288,236,632 135,491,882 1,312,743 9,425,041,257
Fixed assets 29,561,263 – – 29,561,263
Operating activities (728,095,929) (25,755,722) – (753,851,651)
Investing activities (31,284,294) – – (31,284,294)
Financing activities (333,200,000) – – (333,200,000)
2017
Commissions P661,967,789
= =16,757,927
P P–
= P678,725,716
=
Interest 250,460,101 446 – 250,460,547
Trail fees 10,578,055 – – 10,578,055
Others 17,437,051 1,253,917 – 18,690,968
Segment revenue 940,442,996 18,012,290 – 958,455,286
Cost of services (217,380,889) (19,268,531) – (236,649,420)
Operating expenses (157,197,512) (31,068,055) – (188,265,567)
Depreciation and amortization (22,069,885) (13,973) – (22,083,858)
Benefit from (provision for) income tax (134,666,136) 1,930,910 – (132,735,226)
Net income (loss) =409,128,574
P (P
=30,407,359) =–
P =378,721,215
P
Segment assets P11,548,781,813

= P466,855,535
= (P
=134,800,000) P
=11,880,837,348
Segment liabilities 10,267,520,197 108,692,529 – 10,376,212,726
Fixed assets 60,966,559 – – 60,966,559
Operating activities 3,326,512,476 16,433,530 – 3,342,946,006
Investing activities (267,019,663) – – (267,019,663)
Financing activities (285,600,000) – – (285,600,000)
*SGVFS039143*

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COVER SHEET

(Company's Full Name)

Atty. Sharon T. Lim 636-54-11

SEC Form 20-IS

Secondary License Type, If Applicable

Dept. Requiring this Doc. Amended Articles Number/Section

Total Amount of Borrowings

To be accomplished by SEC Personnel concerned

File Number LCU

Document I.D. Cashier

Remarks = pls. Use black ink for scanning purposes

AUDITED FINANCIAL STATEMENTS

SEC Registration Number

PRINCIPAL OFFICE ( No. / Street / Barangay / City / Town / Province )

[email protected] (02) 8636-5411 NA

CONTACT PERSON INFORMATION

Mr. Conrado F. Bate [email protected] (02) 8636-5411 NA

CONTACT PERSON’s ADDRESS

INDEPENDENT AUDITOR’S REPORT

The Board of Directors and Stockholders

Basis for Opinion

Key Audit Matters

Information Technology Environment Supporting the Stockbrokerage Business

We performed procedures to obtain an understanding of the Parent Company’s IT environment, which

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

SYCIP GORRES VELAYO & CO.

LIABILITIES AND EQUITY

TOTAL LIABILITIES AND EQUITY P

See accompanying Notes to Consolidated Financial Statements.

See accompanying Notes to Consolidated Financial Statements.

Years Ended December 31

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

TOTAL COMPREHENSIVE INCOME P

See accompanying Notes to Consolidated Financial Statements.

Equity Attributable to the Equity Holders of the Parent Company

Balances at January 1, 2018 =476,000,000

Balances at January 1, 2017 =476,000,000

See accompanying Notes to Consolidated Financial Statements.

See accompanying Notes to Consolidated Financial Statements.

2. Basis of Preparation, Basis of Consolidation and Summary of Significant Accounting Policies

Changes in Accounting Policies and Disclosures

· PFRS 16, Leases

The effect of adoption of PFRS 16 as at January 1, 2019 is, as follows:

Based on the above, as at January 1, 2019:

Operating lease commitments as at December 31, 2018 P

· Philippine Interpretation IFRIC-23, Uncertainty over Income Tax Treatments

· Amendments to PFRS 9, Prepayment Features with Negative Compensation

Standards and Interpretations Issued but not yet Effective

Effective beginning on or after January 1, 2020

These amendments will apply on future business combinations of the Group.

· Amendments to PAS 1, Presentation of Financial Statements, and PAS 8, Accounting Policies,

Effective beginning on or after January 1, 2021

Summary of Significant Accounting Policies

Foreign Currency Translation

Current versus Non-current Classification

All other assets are classified as non-current.

A liability is current when:

The Group classifies all other liabilities as non-current.

Net deferred tax assets (liabilities) are classified as non-current.

Cash in a Segregated Account

Financial Instruments - Initial Recognition and Subsequent Measurement

Financial Instruments at FVTPL