EDC PR 2016 (FS section)

Financial Statement
28. Income Tax
a.
The components of the Company’s recognized deferred tax assets and liabilities follow:
2016
Beginning of
Year
Charged to
Income
Charged to
OCI End of Year
Deferred tax assets on:
Impairment loss on property, plant and equipment ₱630,668,477 (₱2,551,650) ₱– ₱628,116,827
Unrealized foreign exchange losses - BOT
power plants 597,504,286 (105,320,740) – 492,183,546
Revenue generated during testing period
of BGI power plants 153,831,583 – – 153,831,583
Accrued retirement benefits 91,157,367 74,154,343 (37,719,810) 127,591,900
Differences in fair value versus cost of Tongonan
and Palinpinon property, plant and equipment 136,260,947 (18,130,887) – 118,130,060
Provision for rehabilitation and restoration costs 90,767,250 7,549,374 98,316,624
Allowance for doubtful accounts 158,045,674 1,116,658 – 159,162,332
Provision for impairment of parts and supplies
inventories 32,836,367 91,963 – 32,928,330
Fair value changes on hedging transactions 12,411,484 – 15,112,893 27,524,377
Unrealized foreign exchange losses 93,373,667 122,101,243 (513,802) 214,961,108
Others 131,272,696 (3,390,237) (1,770,263) 126,112,196
2,128,129,798 75,620,067 (24,890,982) 2,178,858,883
Deferred income tax liabilities on:
Differences in fair value versus cost of property,
plant and equipment (864,864,560) 12,574,665 – (852,289,895)
Differences between the carrying amount of
nonmonetary assets and liabilities and the
related tax base – (73,990,301) – (73,990,301)
Capitalized rehabilitation and restoration costs (52,065,372) (3,019,872) (47,462) (55,132,706)
Unrealized foreign exchange gains (6,727,807) (18,309,308) (324,978) (25,362,093)
Difference in fair value versus cost of inventories (14,690,179) 1,024,644 – (13,665,535)
Calamity loss (1,997,347) – – (1,997,347)
Others (67,692,621) – (67,692,621)
(1,008,037,886) (81,720,172) (372,440) (1,090,130,498)
₱1,120,091,912 (₱6,100,105) (₱25,263,422) ₱1,088,728,385
2015
Beginning of
Year
Charged to
Income
Charged to
OCI End of Year
Deferred income tax assets on:
Impairment loss on property, plant and equipment ₱658,520,017 (₱27,851,540) ₱– ₱630,668,477
Unrealized foreign exchange losses -
BOT power plants 702,825,026 (105,320,740) – 597,504,286
Differences in fair value versus cost of Tongonan
and Palinpinon property, plant and equipment 154,438,728 (18,177,781) – 136,260,947
Revenue generated during testing period
of BGI power plants 153,831,583 – – 153,831,583
Accrued retirement benefits 83,948,806 5,676,599 1,531,962 91,157,367
Provision for rehabilitation and restoration costs 72,158,362 18,608,888 – 90,767,250
Allowance for doubtful accounts 154,068,080 3,977,594 – 158,045,674
Calamity loss 1,529,978 (3,527,325) – (1,997,347)
Provision for impairment of parts and supplies
inventories 26,180,856 6,655,511 – 32,836,367
Fair value changes on hedging transactions 938,586 – 11,472,898 12,411,484
Unrealized foreign exchange losses – net (13,972,556) 109,540,529 (2,194,306) 93,373,667
Others 60,273,772 66,945,985 4,052,939 131,272,696
2,054,741,238 56,527,720 14,863,493 2,126,132,451
(Forward)
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