CEBO Development Corporation's audited financial statement for the fiscal year ending January 31, 2012 is presented. Notes to the financial statement provide details on financial liabilities such as derecognition of an original liability if terms are substantially modified, replacing an existing liability with a new one from the same lender also results in derecognition. Accounts payable and accrued expenses are normally settled throughout the year. Estimates and assumptions used in the financial statements are based on management's evaluation as of the reporting date, and actual results may differ from estimates. No allowance for doubtful accounts was made as receivables are believed to be reasonably collectible.

1. CEBO DEVELOPMENT CORPORATION
[82-90 Colonnade Mall, Colon St., Cebu City]
FINANCIAL STATEMENT
January 31, 2012
Audited By: Carlos V. Sabocido

3. ……

4. CEBO Development Corporation
NOTES TO FINANCIAL STATEMENTS
as of and for the fiscal year ended January 31, 2012
(All amounts are shown in Philippine Pesos)

6. Financial Liabilities. A financial liability is
derecognized when the obligation under the liability
is discharged or canceled or has expired
When an existing financial liability is replaced by
another from the same lender on substantially
different terms, or the terms of an existing liability
are substantially modified such an exchange or
modification is treated as a derecognition of the
original liability and the recognition of a new liability,
and the difference in the respective carrying amount
is recognized in the income statement as income

7. Note 7- Accounts Payable and Accrued Expenses
Accounts payable and other accrued expenses are
settled throughout the year.
ESTIMATES AND ASSUMPTIONS
The estimates and assumptions used in the company financial
statements are based upon managements evaluation of
relevant facts and circumstances as of the date of the
Company’s financial statements. Actual results could differ
from such.
No allowance of doubtful account was provided in the financial
statements as the management believes that the receivables
are reasonably collectible.