-4Corporation (ABCC), the joint venture company formed by ASTI and a group led by D.M.Wenceslao & Associates, Inc. (DMWAI) (the Wenceslao Group or “WG”); and 60% interest in the unincorporated joint venture between the Group and Akean Resorts Corporation and the additional parcels of land acquired by the Group with total area of approximately 10.81 hectares. On October 17, 2014, these assets owned by the Group were sold to Bedfordbury Development Corporation (BDC), a newly incorporated company owned by AH and MC for P =3,774.0 million. AH, MC and BDC will be collectively referred to as the “AH Group” (see Note 6). The Group’s joint venture with WG is subject to litigation because of WG’s actions in causing a delay in ASTI and AMC’s construction and development of the Marina Club Project. With BDC’s takeover of AMC and AMCI, BDC assumed the responsibility of handling the litigation with WG. Delisting procedures initiated by the Philippine Stock Exchange (PSE) ALPHA committed delays in complying with its disclosure requirements with the PSE as a result of the dispute between the two major groups of stockholders. The delay in the disclosure was brought about by a good faith effort to arrive at an amicable settlement with the AH Group. On June 17, 2014, in a hearing conducted by the PSE, ALPHA formally informed the PSE of the settlement between both parties and supported voluntarily the delisting procedures initiated by the PSE. On September 8, 2014, the PSE issued a resolution delisting ALPHA for violation of the disclosure rules and mandated ALPHA to hold a tender offer to buy all the shares of its retail/non-strategic shareholders. The PSE also prohibited ALPHA from applying for relisting within a period of five years from the effective date of delisting. 2. Basis of Preparation and Statement of Compliance The consolidated financial statements of the Group have been prepared on a historical cost basis, except for AFS financial assets and investment properties which are stated at fair value. The consolidated financial statements are presented in Philippine Peso, the Group’s functional currency. All amounts are rounded to the nearest Peso unless otherwise stated. Moreover, the consolidated financial statements of the Group have been prepared in compliance with Philippine Financial Reporting Standards (PFRS) issued by the Philippine Financial Reporting Standards Council (FRSC). This financial reporting framework includes PFRS, Philippine Accounting Standards (PAS), and Philippine Interpretations from International Financial Reporting Interpretations Committee (IFRIC), adopted by the SEC, including SEC pronouncements.
3. Summary of Changes in PFRS Adoption of New and Revised PFRS The accounting policies adopted are consistent with those of the previous financial year, except for the adoption of the following new and amended PFRS which the Group adopted effective for annual periods beginning on or after January 1, 2015:
Amendment to PAS 16, Property, Plant and Equipment - Revaluation Method - Proportionate Restatement of Accumulated Depreciation, and PAS 38, Intangible Assets - Revaluation Method -
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