EDC PR 2016 (FS section)

Financial Statement
Amendment to PFRS 7 - Applicability of the Amendments to PFRS 7 to Condensed Interim
Financial Statements
This amendment is applied retrospectively and clarifies that the disclosures on offsetting of
financial assets and financial liabilities are not required in the condensed interim financial
report unless they provide a significant update to the information reported in the most recent
annual report.
Amendment to PAS 19, Employee Benefits, Discount Rate: Regional Market Issue
This amendment is applied prospectively and clarifies that market depth of high quality
corporate bonds is assessed based on the currency in which the obligation is denominated,
rather than the country where the obligation is located. When there is no deep market for high
quality corporate bonds in that currency, government bond rates must be used.
Amendment to PAS 34, Interim Financial Reporting - Disclosure of Information ‘Elsewhere
in the Interim Financial Report’
The amendment is applied retrospectively and clarifies that the required interim disclosures
must either be in the interim financial statements or incorporated by cross-reference between
the interim financial statements and wherever they are included within the greater interim
financial report (i.e., in the management commentary or risk report).
3. Significant Accounting Judgments, Estimates and Assumptions
The preparation of the Company’s consolidated financial statements requires management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses,
assets and liabilities, and the accompanying disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amounts of assets or liabilities in future periods.
Judgments
In the process of applying the Company’s accounting policies, management has made the
following judgments, which have the most significant effect on the amounts recognized in the
consolidated financial statements:
Determination of Functional Currency
Each entity within the Company determines its own functional currency. The respective
functional currency of EDC and its subsidiaries is the currency of the primary economic
environment in which each entity operates. It is the currency that mainly influences the sale of
services and the costs of providing services.
The presentation currency of the Company is the Philippine Peso, which is the Parent Company’s
functional currency. The functional currency of each of the Company’s subsidiaries, as disclosed
in Note 4 to the consolidated financial statements, is determined based on the economic substance
of the underlying circumstances relevant to each subsidiary.
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