EDC PR 2016 (FS section)

Classified under loans and receivables are cash and cash equivalents, trade and other receivables,
debt service reserve account, short-term investments and long-term receivables
(see Notes 6, 7, 11, 15, 20 and 31).
AFS Investments
AFS investments are those non-derivative financial assets that are designated as such or are not
classified as financial assets designated at FVPL, HTM investments or loans and receivables.
These are purchased and held indefinitely, and may be sold in response to liquidity requirements
or changes in market conditions.
After initial measurement, AFS investments are subsequently measured at fair value with
unrealized gains and losses being recognized as other comprehensive income (OCI) in the “Net
accumulated unrealized gain on available-for-sale investments” account until the investment is
disposed of or is determined to be impaired, at which time the cumulative gain or loss previously
recognized in equity are recognized in the profit or loss. The Company uses the specific
identification method in determining the cost of securities sold. Interest earned on the investments
is reported as interest income using the effective interest rate method. Dividends earned on
investment are recognized in the profit or loss when the right to receive payment has been
established.
AFS investments are classified as current if they are expected to be realized within 12 months
from the financial reporting date. Otherwise, these are classified as noncurrent assets.
AFS investments include quoted investments in government securities, government bonds and
notes, corporate bonds and unquoted equity securities (see Notes 9 and 31).
Other Financial Liabilities
This category pertains to financial liabilities that are not held for trading or not designated as at
FVPL upon the inception of the liability. Other financial liabilities, which include trade and other
payables, due to related parties and long-term debts (see Notes 16, 17, 20, and 31) are initially
recognized at fair value of the consideration received less directly attributable transaction costs.
After initial recognition, other financial liabilities are subsequently measured at amortized cost
using the effective interest rate method.
Amortized cost is calculated by taking into account any related issue costs, discount or premium.
Gains and losses are recognized in the profit or loss when the liabilities are derecognized, as well
as through the amortization process.
Other financial liabilities are presented as current liabilities when they are expected to be settled
within twelve months from the financial reporting date or then the Company does not have an
unconditional right to defer settlement for at least twelve months from financial reporting date.
Otherwise, these are classified as noncurrent liabilities.
Fair Value of Financial Instruments
The Company measures financial instruments, such as derivatives, financial asset through profit or
loss and AFS investments, at fair value at each reporting date.
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I Energy Development Corporation Performance Report 2016