the parent company of flag-carrier Philippine Airlines, has voluntarily sought a five-day suspension of the trading of its shares at the Philippine Stock Exchange (PSE)due to the approval of its planned quasi-reorganization
Sarmiento said Vitarich expects to get funding from banks as it will begin another round of debt-to-equity conversion and undergo quasi-reorganization
SARMIENTO said the company has already submitted to the Securities and Exchange Commission (SEC) its quasi-reorganization
plans, aimed at eliminating some P2.
The reduction in par value is due to the company's quasi-reorganization
and the shares reflected after the reduction in par value did not yet include the amount of shares to be issued by the company to new investors Bonham Strand Investments Ltd.
3) DO NOT use quasi-reorganization
accounting at the time of the reorganization, because this statement of position applies to reporting for entities that enter and intend to emerge from Chapter 11.
Firms produce these going-concern value estimates in order to facilitate comparison with their liquidation value, and/or because they adopted fresh-start or quasi-reorganization
accounting procedures that require the restatement of balance sheet accounts to their fair-market value,v For nine firms, all of the claims on the reorganized firm were publicly traded, and we used the market value of these claims just after emergence from bankruptcy as an estimate of firm value.
Issues Paper 88-1, Quasi-Reorganization
American Institute of CPAs accounting standards division, 1988.
First, because SOP 90-7 applies to entities that enter and intend to emerge from Chapter 11 reorganization, quasi-reorganization
accounting should not be used at the time of reorganization.
As such, operations for periods prior to December 31, 2010 are labeled as being under the "Old Basis," which is defined as accounting policies and estimates prior to the adoption of the Quasi-Reorganization
50 from P1 in line with the quasi-reorganization
recently approved by the SEC.
Bacani said though that they will first have to undertake a quasi-reorganization
that will call for the reduction in the firm's par value.
While application of quasi-reorganization
accounting generally requires shareholder approval, it is essentially an accounting readjustment, not a legal reorganization and has no income tax consequences.