Together we make things happen - Philippine Ports Authority

This account includes the following:Prepaid Taxes consist of the amounts of expanded or creditable withholdingtaxes deducted by port users from wharfage and rental of real property andother port facilities. Section 76 of the National Internal Revenue Code allowscash refund of the amount withheld or the use of the covering tax creditcertificates against future tax liabilities.Advance Payment to Contractors not exceeding 15% of the total contractprice are granted pursuant to Republic Act 9184. The advances which arerepaid thru deductions from progress payments to Contractors are securedwith irrevocable letters of credit of equivalent values from commercial banks,bank guarantees or surety bonds.Other Prepayments consist of the amounts of National Scholarship forDevelopment (NSFD) grants, charges on feasibility study, and other deferredcharges.9. OTHER CURRENT ASSETSThe breakdown of this account is as follows:2008 2007Miscellaneous-Input VAT 579,439,856 569,869,140Guaranty Deposits 8,762,695 3,343,112Others 240,760 140,760588,443,311 573,353,012Miscellaneous-Input Value Added Tax (VAT) pertains to the carried overbalance of VAT paid by the Authority for acquired goods and services thatmay be applied as tax credit or deducted from Output VAT. Input VAT offsetagainst output VAT in 2008 amounted to 661,630,415.Guaranty Deposits consist of the amounts deposited with contractors/suppliers to guarantee performance of obligation, such as deposits withMeralco, PLDT, lessors of buildings occupied by the Authority, and others.10. PROPERTY AND EQUIPMENTThis account is composed of the following:LandBuildingsand OtherStructuresConstructionin Progress(Amounts in Thousands)MotorVehiclesMachinery andEquipmentOfficeEquipmentOther FixedAssetsAt December 31, 2007Cost 56,427,462 27,309,763 11,045,169 144,457 357,947 577,135 1,254,114 97,116,047Accumulated Depreciation - (10,896,281) - (92,223) (181,270) (331,072) (836,164) (12,337,010)Net Book Value 56,427,462 16,413,482 11,045,169 52,234 176,677 246,063 417,950 84,779,037Year Ended December 31, 2008Opening Book Value 56,427,462 16,413,482 11,045,169 52,234 176,677 246,063 417,950 84,779,037Additions 2,920,333 7,687,811 2,170,146 26,320 67,837 857,341 107,252 13,837,040Disposed/RetiredCompleted/Transferred(140,133) (937,894) (9,850,057) (2,292) (3,992) (95,244) (14,157) (11,043,769)Depreciation for the Year - (1,080,613) - (14,685) (20,561) (87,942) (59,645) (1,263,446)Adjustment on PriorYears’ Depreciation- 66,689 - 7,815 (9,006) 47,532 (9,180) 103,850Closing Net Book Value 59,207,662 22,149,475 3,365,258 69,392 210,955 967,750 442,220 86,412,712At December 31, 2008Cost 59,207,662 34,059,680 3,365,258 168,485 421,792 1,339,231 1,347,209 99,909,317Accumulated Depreciation - (11,910,205) - (99,093) (210,837) (371,481) (904,989) (13,496,605)Net Book Value 59,207,662 22,149,475 3,365,258 69,392 210,955 967,750 442,220 86,412,712Construction in Progress account includes the cost incurred relative to the Management Information System (MIS) Computerization Project amounting to 628.63million. The significant decrease in the carrying value of the account by 9.85 billion is primarily due to the 6.18 billion cost of the Batangas Port DevelopmentProject II, and of other projects whose costs of development was reclassified to appropriate fixed asset accounts upon completion in 2008.TOTALPhilippine Ports Authority • Annual Report 2008 4 2