Notes to Consolidated Financial Statements
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Retirement benefit cost amounted to P =12.8 million, P =11.7 million and = P5.1 million in 2013, 2012 and 2011, respectively. Retirement benefits obligation amounted to P =19.2 million and = P18.8 million as of December 31, 2013 and 2012, respectively (see Note 22). Assessing Realizability of Deferred Tax Assets. The Group reviews its deferred tax assets at each balance sheet date and reduces their carrying amounts to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilized. The Group’s assessment of the recognition of deferred tax assets is based on the projected taxable income in the following periods. Unrecognized deferred tax assets are reassessed at each balance sheet date and are recognized to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered. Unrecognized deferred tax assets amounted to P =113.7 million and = P148.1 million as of December 31, 2013 and 2012, respectively (see Note 23). Management believes that it is not probable that sufficient taxable income will be available to allow all of the deferred tax assets to be utilized. 4. Deconsolidation and Joint Arrangements a. Deconsolidation of TCCAMPI, ABICI and AMCI (collectively referred to as the “Clubs”) On March 30, 2011, AMPI, ABIRC and AMC assigned their voting rights in the common shares of the Clubs which appointed their proxies to represent and vote all of its shares of stock standing in their name and that of their nominees in any and all meetings of the stockholders of the Clubs, and any adjournments or postponements thereof, as fully and for all intents and purposes as if they were present and acting thereat. Thereafter, in relation to the said assignment of voting rights, AMPI, ABIRC and AMC entered into a Deed of Assignment on August 12, 2011 with Alphaland Property Management Corporation (APMC), a commonly-controlled entity, for the assignment of all of their respective shareholdings in the common shares of the Clubs totaling = P2.2 million. The Deed of Assignment likewise included a waiver of their economic rights over the Club’s common shares effective March 31, 2011. By virtue of the assignment of voting rights and the Deed of Assignment, AMPI, ABIRC and AMC has lost control over the Clubs effective March 31, 2011, thus, were deconsolidated effective that date. AMPI, ABIRC and AMC, however, retained its preferred shares in the Clubs (see Note 11). The difference between the selling price of the common shares and the Group’s carrying value of its common shares amounting to = P6.3 million is recognized as a gain on loss of control in the 2011 consolidated statement of comprehensive income. Further, the gain on sale of preferred shares amounting to = P2.6 million in 2010, which was recognized in equity, was credited to profit or loss as part of gain on loss of control in the 2011 consolidated statement of comprehensive income. The Group’s residual interest in the preferred shares of the Club was then carried at fair value. The increase in the fair value amounting to = P1,354.1 million was credited to “Unrealized valuation gains on AFS investments” account in the equity section of the 2011 consolidated balance sheet. Such increase in the fair value represents unrealized valuation gains prior to the deconsolidation of TCCAMPI. There was no unrealized valuation gains for ABICI and AMCI as there were no available market price yet for these preferred shares as at the date of deconsolidation. These were carried at cost less allowance for impairment losses, if any, because fair value cannot be measured reliably then due to lack of reliable estimates of fair value.