The Management Association of the Philippines' Best Annual Report (BAR) Awards aims to encourage the observance of the principles of good governance (transparency, accountability and fairness) and raise the financial reporting and disclosure practices of publicly listed Philippine companies to international standards. The BAR Awards also gives cognizance to those who pay special attention to the user-friendliness and visual appeal of the annual reports that encourage the public to read, understand and learn from them. The prestigious event is organized annually by MAP, in cooperation with the Philippine Stock Exchange and BusinessWorld Publishing Corporation.

Entries are generated from all publicly listed companies. The Philippine Stock Exchange (PSE) issued a Memorandum Circular, encouraging all PSE-listed companies to participate in the BAR Awards.

Evaluation Process

The evaluation process consists of five stages:

1. Initial screening by the BAR Awards Committee

2. The Technical Panel on Compliance and Disclosure evaluates the entries based on compliance by the financial statements in the annual reports with the financial reporting rules and regulations prescribed by the Securities and Exchange Commission (SEC), PSE, and the Bangko Sentral ng Pilipinas (BSP).

3. All entries will be subjected to this criterion on Compliance and Disclosure in collaboration with SEC-appointed consultants.

4. The Technical Panel on Corporate Governance evaluates the entries based on additional information above statutory requirements and provision of information relating to corporate governance) and chooses the “Best Corporate Governance Disclosure” Awardee. Only the Top 60 (if there will be over 100 participants) from the Technical Judging on Compliance and Disclosure will be subjected to the criterion on Corporate Governance. The Technical Panel on USER-FRIENDLINESS evaluates the entries based on User-Friendliness and chooses the “Best VISUAL Design” Awardee. Only the Top 60 (if there will be over 100 participants) in the Technical Judging for Compliance and Disclosure will be evaluated for this criterion on User-Friendliness.

5. A final evaluation of the Top 5 Finalists will be conducted by the Board of Judges who will decide on the final ranking of the top three winners, especially when the difference in their technical judging scores is less than a point. The Top 5 Finalists refer to the topnotchers after consolidating results of the Technical Judging on Compliance and Disclosure, Corporate Governance and User-Friendliness. This year (2009), there are 20 BAR finalists, and each will receive a trophy. From the finalists will emerge the first, second and third place winners. There will be two special awards: the “Best Visual Design” and the “Best in Corporate Governance Disclosure.” MAP will continue to give a special award to a conglomerate whose three or more companies will make it to the list of finalists.

Below are the criteria for judging the Best Annual Reports:

1.1 COMPLIANCE AND DISCLOSURE (60%)
Compliance in the financial statements in the annual report with the financial reporting rules and regulations prescribed by the SEC, the PSE, and the Bangko Sentral ng Pilipinas

1.1.1 Accounting Treatment Compliance with International Accounting Standards (28 points)

1.1.2 Disclosures Completeness of disclosures as prescribed by IAS as well as Circulars of SEC, PSE and BSP (22 points)

1.1.3 Attachments Compliance with SEC Rules by Management Statement of Responsibility for Financial Statements and Auditor’s Opinion (7 points)

1.1.4 Errors Free of mistakes of technical nature (e.g., account titles, computations, proof errors) (3 points)

Note: All entries that will pass the initial screening by the MAP Best Annual Report Awards Committee will be subjected to this criterion on Compliance and Disclosure in collaboration with SEC-appointed consultants.


1.2 CORPORATE GOVERNANCE (30%)
Additional information above statutory requirements and provision of information relating to corporate governance

1.2.1 Management discussion and analysis of results of operations and financial condition (4 points)

1.2.2 Statement of Commitment to corporate governance (4 points)

1.2.3 Board’s clear involvement in and commitment to company-wide risk management (3 points)

1.2.4 Clear disclosure on key Board committees (2 points)

1.2.5 Disclosure of Board members’ related background and experience (2 points)

1.2.6 Disclosure of Board members’ seats in other listed companies (2 points)

1.2.7 Clear disclosure as to who the independent directors are in the Board (2 points)

1.2.8 Separation of Board Chairman and President/CEO positions (2 points)

1.2.9 Shareholders and investors assistance bureau (investor relations) (2 points)

1.2.10 Audit Committee statement on non-audit works by external auditors (1 point)

1.2.11 Separate statements of CEO, COO or CFO, apart from the Chair (1 point)

1.2.12 Social welfare and social responsibilities disclosure (1 point)

1.2.13 Vision – mission statement (1 point) 1.2.14 Core values (1 point)

1.2.15 Audit Committee’s Yearend Report (1 point)

1.2.16 Sustainability Report (1 point)

Bonus points were given to those that have additional disclosures beyond established guidelines/criteria: disclosure of Board remuneration, disclosure of audit fees and attendance in Board meetings.

Note: Only the Top 60, if there will be over 100 participants, from the Technical Judging on Compliance and Disclosure will be subjected to the criterion on Corporate Governance.


1.3 USER-FRIENDLINESS (10%)

1.3.1 Visual impact (2.5 points)

1.3.2 Quality and relevance of images used (2.5 points)

1.3.3 Readability/Understandability (5 points)

Note: Only the Top 60, if there will be over 100 participants, in the Technical Judging for Compliance and Disclosure will be evaluated for this criterion on User-Friendliness.

MAIN AWARDS

Best annual report
First runner-up
Second runner-up

SPECIAL AWARDS

1. Best Visual Design

2. Best in Corporate Governance Disclosure in Non-Financial Institutions

3. Best in Corporate Governance Disclosure in Financial Institutions

4. Special Award to a conglomerate whose three or more companies make it to the 20 Finalists

5. Best in Compliance with Philippine Financial Reporting Standards for Financial Institutions

6. Best in Compliance with Philippine Financial Reporting Standards for Financial Non-Financial Institutions

7. Most Improved Annual Report for the Past 3 Years