Group 2

GROUP 2
( VICTOR NATIONAL COOPERATIVE FEDERATION AND DEVELOPMENT CENTER)
Fair Presentation and Compliance with IFRS/PFRS/OTHER STANDARD
In accordance to the audit's opinion in page 1 that the accompanying financial statement are present
fairly, in all materials respects, the financial condition as at December 31, 2022 and 2021, and its
operations and its cash flows for the years then ended In accordance with Philippine Financial Reporting
Framework for Cooperatives (PFRFC) as prescribed by the Cooperative Development Authority (CDA).
This statement indicates that the financial statements provide a true and accurate representation of the
company's financial performance and position based on the relevant accounting standards or
framework.
Going Concern
In accordance to page 2 of the Financial statement the management assess that VICTO National
Cooperative Federation and Development Center will continue its operation as going concern.
Management has assessed that the federation is responsible to continue as a going concern disclosing,
as applicable, matters related to going concern and usining going concern basis of accounting. Despite
economic uncertainties and industry challenges, Victo National Cooperative Federation and
Development Center remains committed to implementing cost-saving measures, exploring new revenue
streams, and maintaining a strong financial position. The company believes that these actions, coupled
with its market position and established customer base, support the going concern assumption.
Accrual Basis of Accounting
As per the Notes to the Financial Statements on Page 13 under Note 3, which is Significant accounting
policies that Accrued expenses and other liabilities are recognized initially at the transaction price and
subsequently measured at amortized cost using the effectively interest method. This information
provided concludes that the company follows the accrual basis of accounting for accrued expenses and
other liabilities.
Materiality and Aggregation
According to Note 2 and the first page of the Financial Statements, the financial statements for each of
the years ending December 31, 2022 and 2021, have been prepared in all material respects, in
accordance with the Philippine Financial Reporting Framework for Cooperatives (PFRFC) as prescribed by
the Cooperative Development Authority (CDA).
Offsetting
According to note 3 on page 12 of significant accounting policies, Offsetting of Financial assets and
financial liabilities are offset and the net amount reported in the statements of financial condition if, and
only if, there is a currently enforceable legal right to offset the recognized amounts and there is intention
to settle on a net basis, or to realize the asset and settle the liability simultaneously. This is not generally
the case with master netting agreements, and the related assets and liabilities are presented gross in the
statements of financial condition. This statement implies that master netting agreements do not
generally meet the criteria for offsetting financial assets and liabilities. So, therefore, offsetting is not
typically applied, and the related assets and liabilities are presented separately in the financial
statements.
Frequency of Reporting
In compliance with the Financial Statement's Note 2 and Page 4, the Statement of Financial Condition as
of December 31, 2022, and 2021 is presented. Page 5 discusses the Statement of Operations for the
years ended December 31, 2022, and 2021. On Page 6, the Statement of Changes in Equity and Statutory
Reserves for the years ended December 31, 2022, and 2021, is provided. Page 7 shows the Statement of
Cash Flows for the years ended December 31, 2022, and 2021. The Victo National Cooperative
Federation and Development Center use an annual reporting format, where the report for 2022 covers
the year 2021.
Comparative Information
The financial statement demonstrates comparative information through the side-by-side presentation of
key financial elements for both the year 2022 and the year 2021. This allows for a comparative analysis
of the business's performance over the two periods, the inclusion of specific columns for each year
explicitly designates this as a presentation of comparative information.
Consistency of Preparation
The presentation of this financial statement shows consistency because Victo National Cooperative
Federation and Development Center consistently used the straight-line method in the years 2022 and
2021. It presents expenses in the same order and format in the income statement each period,
demonstrating consistency in financial statement presentation. The accompanying financial statements
have been generally prepared in compliance with the Philippine Financial Reporting Framework for
Cooperatives (PFRFC). The federation adopted an amended and revised framework and chart of accounts
for its financial statements in 2022 and 2021.

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GROUP 2

( VICTOR NATIONAL COOPERATIVE FEDERATION AND DEVELOPMENT CENTER)

Fair Presentation and Compliance with IFRS/PFRS/OTHER STANDARD

Accrual Basis of Accounting

Materiality and Aggregation

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