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Acccob 2 Portfolio: Reflection Paper Presented To The Accountancy Department

This reflection paper analyzes Shang Properties Inc.'s trade and other payables, long-term liabilities, and share capital based on its 2019-2020 consolidated financial statements. The author notes a slight decrease in trade payables from 2019-2020, which is a positive sign of the company's ability to make payments. Long-term liabilities increased by nearly $300,000 over the two years, primarily due to bank loans likely used to purchase properties or gain capital. Share capital and premium remained unchanged from 2019-2020, indicating no changes to authorized shares and preventing losses for investors during the pandemic year of 2020.

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Rafael Caparas
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207 views

Acccob 2 Portfolio: Reflection Paper Presented To The Accountancy Department

This reflection paper analyzes Shang Properties Inc.'s trade and other payables, long-term liabilities, and share capital based on its 2019-2020 consolidated financial statements. The author notes a slight decrease in trade payables from 2019-2020, which is a positive sign of the company's ability to make payments. Long-term liabilities increased by nearly $300,000 over the two years, primarily due to bank loans likely used to purchase properties or gain capital. Share capital and premium remained unchanged from 2019-2020, indicating no changes to authorized shares and preventing losses for investors during the pandemic year of 2020.

Uploaded by

Rafael Caparas
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ACCCOB 2 PORTFOLIO

Reflection Paper presented


to the Accountancy Department

In partial fulfilment
of the course requirement
ACCCOB2 - K39

Reflection paper No. 4

Submitted by:

Villanueva, Allen Jeremy, A.


K39

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https://www.coursehero.com/file/107306936/ACCCOB-2-Reflection-4pdf/
Shang Properties Inc.
Trade and Other Payables
The information on Shang Properties Inc.’s Trade and other payables are taken from the
Consolidated Financial Statements. There has been a slight decrease on the value in
2020 as compared to 2019. This information can be used to calculate the company’s
financial ratios, which could represent the company either positively or negatively. Based
on my interpretation of the data, this is a positive sign that the company is able to make
the necessary payments. On the other hand, an increased value on payables, though not
always the case, means that the company will have more cash balance in their account,
of course with the risk of having larger expenses if the company won’t be able to produce
enough cash flow.

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Long Term Liabilities
The report specified their Long-Term Liabilities as Non-current Liabilities in their
Statement of Financial Position.

The company’s non-current liabilities reach up to USD6,152,164 in 2020, which had an


increase of almost 300,000 compared to the year 2019. The largest liability in the category
is on Bank Loans, taking up around USD 4,000,000, this is likely used on loans to
purchase more properties or gain more capital for the company. Even though the number
is quite high, this inevitably saves the company more money in the long term, especially
when the company is well known and likely has good credit. The negative side is that
monthly cashflow may be restricted in the short-term as they pay back some of the debt,
but with the extra capital used to expand the business, I’m sure Shang Properties Inc. will
be able to use this efficiently.

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Share Capital

Based on the Consolidated Statement of Financial position, the company’s Share


Capital and premium has not changed in the year 2019 and 2020. The company
evidently raised over USD3,000,000 from issuing shares and goes over in detail in the
note below:

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In those two years, the company has issued 3,585,525 shares which is valued at USD
3,201,995. Since there are no changes at all, this could mean that there were no
changes in the par value of the authorized shares. Though obviously there was no
increase, investors could be happy with the company maintaining the value especially
considering the fact that 2020 was the pandemic year, preventing losses for
shareholders.

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Reference:
Shangri-La Group (n.d.). Annual Report 2020. Retrieved from
https://sitecore-cd.shangrila.com/-/media/Project/Shangri-La-
Group/Investor/Files/PublicDisclosures/Anncouncements-and-Circulars/2021/2021-04-
26-AR_E.pdf

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