CABULING ALLIANCE KINDERGARTEN SCHOOL, INC.

Brgy. Cabuling, Banga, South Cotabato

NOTES TO FINANCIAL STATEMENTS
March 31, 2013


General

The, CABULING ALLIANCE KINDERGARTEN SCHOOL, INC. is registered with the
Securities and Exchange Commission on January 25, 2011 with Registration No. CN-2011-28607.
It is a non-stock, non-profit corporation which aims to work and serve as indirect effective
partner of the government in nation building through education of children at an early stage. It
offers pre-school education.


Summary of Significant Accounting Policies

Basis of Preparation of Financial Statements
The accompanying financial statements have been prepared in accordance with
generally accepted accounting principles in the Philippines based on historical cost.

The accounting policies have been consistently applied by the management and are
consistent with those used in the previous year.

Cash and Cash Equivalents
Cash and Cash Equivalents includes cash on hand, cash in banks and short-term highly
liquid investments that are readily convertible to known amounts of cash with original
maturities of three months ort less and are subject to insignificant risks of changes in value.

March 31, 2013 March 31, 2012

Cash and Cash Equivalents 31,398.62 13,737.04


Receivable from Students
Receivable from Students are outstanding school fees and are recognized and carried at
original invoice amounts. An estimate for doubtful accounts is made when collection of the full
amount is no longer probable.
March 31, 2013 March 31, 2012

Receivable from Students 6,650.00 4,525.00

Unused School Supplies
Unused School Supplies consists of inventory of school supplies remaining at the end of
the fiscal year.

March 31, 2013 March 31, 2012

Unused School Supplies 3,050.75 2,158.70

Property and Equipment

Property and Equipment are stated at cost less accumulated depreciation and
amortization and any impairment in value. The cost of an asset comprises its purchase price
and other costs directly attributable in bringing the asset to its working condition and location
for its intended use. Expenditures for additions and improvements and renewals are
capitalized; expenditures for repairs and maintenance are charged to expense as incurred.
When assets are sold, retired or otherwise disposed of, their cost and related accumulated
depreciation/amortization, and impairment losses are removed from the fixed asset account
and the resulting gain or loss is reflected as income or loss for the period.

Depreciation and amortization is computed on a straight-line basis over the estimated
useful lives of the assets as follows:

School Building 20 years
Playground 20 years
Library 20 years
School Furniture and Fixtures 10 years
Rest House 5 years
Drinking Facilities 5 years
Wireless Microphone 10 years
Waiting Shed 10 years

Fully depreciated assets are retained in the accounts until they are no longer in use and
no further charge for depreciation is made in respect to those assets.