EDC PR 2016 (FS section)

Financial Statement
Subsidiary
Functional Currency
EDC Peru S.A.C. - do -
EDC Geotérmica Del Sur S.A.C. - do -
EDC Energía Azul S.A.C. - do -
Geotermica Crucero Peru S.A.C. - do -
EDC Energía Perú S.A.C. - do -
Geotermica Tutupaca Norte Peru S.A.C. - do -
EDC Energía Geotérmica S.A.C. - do -
EDC Progreso Geotérmico Perú S.A.C. - do -
Geotermica Loriscota Peru S.A.C. - do -
EDC Energía Renovable Perú S.A.C. - do -
EDC Soluciones Sostenibles Ltd - do -
EDC Desarollo Sostenible Ltd - do -
EDC Energia Verde Chile SpA - do -
EDC Energia de la Tierra SpA - do -
EDC Energia Verde Peru SAC - do -
PT EDC Indonesia
Indonesian rupiah
PT EDC Panas Bumi Indonesia - do -
*Changed its functional currency from Philippine Peso in prior years to US Dollar in 2016
For subsidiaries whose functional currency is different from the presentation currency, the
Company translates the results of their operations and financial position into the presentation
currency. As at the financial reporting date, the assets and liabilities presented (including
comparatives) are translated into the presentation currency at the closing rate of exchange
prevailing at the financial reporting date while the capital stock and other equity balances are
translated at historical rates of exchange. The income and expenses for the profit or loss presented
(including comparatives) are translated at the exchange rates at the dates of the transactions, where
determinable, or at the weighted average rate of exchange during the reporting period. The
exchange differences arising on the translation to the presentation currency are recognized as a
separate component of equity under the “Cumulative translation adjustments” account in the
consolidated statement of financial position.
Change in Functional Currency
When there is a change in an entity’s functional currency, the entity should apply the translation
procedures applicable to the new functional currency prospectively from the date of change. An
entity translates all items into the new functional currency using the exchange rate at the date of
the change. The resulting translated amounts for nonmonetary items are treated as their historical
cost.
Exchange differences arising from the translation at the date of change are recognized as
cumulative translation adjustment reported under the consolidated statement of comprehensive
income and presented in the equity section of the consolidated statement of financial position.
Exchange differences arising from translation of a foreign operation recognized in other
comprehensive income are not reclassified from equity to the consolidated statement of income
until the disposal of the foreign operation. The comparative financial statements shall be
presented into the new presentation currency in accordance with the translation procedures
described in PAS 21, The Effects of Changes in Foreign Exchange Rates, as follows:
a.
b.
c.
d.
all assets and liabilities at the exchange rates prevailing at the reporting date;
equity items at historical exchange rates;
revenue and expense items at the approximate exchange rates prevailing at the time of
transactions; and
all resulting exchange differences are recognized in cumulative translation adjustment
account, presented as part of the consolidated statement of comprehensive income.
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