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- 37 Notes to Consolidated Financial Statements Transfers from investment properties amounted to P =322.8 million and = P480.8 million in 2013 and 2012, respectively (see Note 12). Estimates and Assumptions Revenue Recognition. Revenue from sale of condominium units and preferred shares under a single contract to sell is allocated to each component using the residual method. The fair value of the preferred share is measured at its current cash selling price to third parties on a stand-alone basis and the fair value of the condominium unit is the residual amount of the transaction price. Fair Value of Financial Instruments. PFRS requires certain financial assets and liabilities to be carried at fair value, which requires extensive use of accounting estimates. While significant components of fair value measurement were determined using verifiable objective evidence, the amount of changes in fair value would differ if the Group utilized different valuation methodologies. Any changes in fair value of these financial assets would affect profit and loss and equity. The fair value of the Group’s financial assets and liabilities are disclosed in Note 25. Estimating Impairment Losses of Receivables and Advances to Associates and Related Parties. The Group estimates the allowance for impairment losses related to receivables and advances to associates and related parties based on specific evaluation of significant accounts and collectively for receivables that are not individually significant, and where the Group has information that certain customers are unable to meet their financial obligations. In these cases, the use of estimate is based on the best available facts and circumstances, including but not limited to, the length of relationship with the debtors and known market factors, to record specific reserves against amounts due from debtors to reduce the receivable amount to its collectible amount. Provision for impairment loss on receivables and advances amounted to nil, P =1.1 million and nil in 2013, 2012 and 2011, respectively. As of December 31, 2013 and 2012, the aggregate carrying amount of trade and other receivables (including noncurrent portion), net of allowance for impairment losses and advances to associates and related parties, amounted to P =1,846.7 million and = P466.6 million, respectively (see Notes 7, 10, 14 and 19). Net Realizable Value of Land and Development Costs and Parking Lots for Sale. The Group writes down the carrying value of land and development costs and parking lots for sale whenever the net realizable value becomes lower than cost due to changes in market prices or other causes. The carrying value is reviewed regularly for any decline in value. The carrying value of land and developments costs amounted to = P2,286.8 million and P =1,171.4 million as at December 31, 2013 and 2012, respectively. Parking lots for sale amounted to = P236.3 million as at December 31, 2013 (see Note 8). Fair Value of Investments in Clubs’ Preferred Shares. The Group establishes fair value by using recent arm’s length market transactions between knowledgeable, willing parties. The fair value of investments in preferred shares of the Clubs is determined based on the current cash selling price to third parties. The fair value of investments in preferred shares amounted to = P30,084.5 million and = P24,564.4 million as of December 31, 2013 and 2012, respectively (see Note 11). 82

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