EDC PR 2016 (FS section)

Financial Statement
provision is presented in the profit or loss, net of any reimbursement. If the effect of the time
value of money is material, provisions are discounted using a pre-tax rate that reflects, where
appropriate, the risks specific to the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognized as “Interest expense” in the consolidated
statement of income.
Contingencies
Contingent liabilities are not recognized in the consolidated financial statements. These are
disclosed unless the possibility of an outflow of resources embodying economic benefits is
remote. Contingent assets are not recognized in the consolidated financial statements but disclosed
when an inflow of economic benefits is probable.
Capital Stock
Capital stock is measured at par value for all shares issued. When the Parent Company issues
more than one class of stock, a separate account is maintained for each class of stock and the
number of shares issued. Capital stock includes common stock and preferred stock.
When the shares are sold at premium, the difference between the proceeds and the par value is
credited to the “Additional paid-in capital” (APIC) account. When shares are issued for a
consideration other than cash, the proceeds are measured by the fair value of the consideration
received. In case the shares are issued to extinguish or settle the liability of the Parent Company,
the shares shall be measured either at the fair value of the shares issued or fair value of the liability
settled, whichever is more reliably determinable.
Direct costs incurred related to equity issuance, such as underwriting, accounting and legal fees,
printing costs and taxes are chargeable to the APIC account. If APIC is not sufficient, the excess
is charged against the “Equity reserve” account.
Treasury Stock
The Company’s own equity instruments that are reacquired (treasury stock) are recognized at cost
and deducted from equity. No gain or loss is recognized in the profit or loss on the purchase, sale,
issue or cancellation of the Parent Company’s own equity instruments. Any difference between
the carrying amount and the consideration, if reissued, is recognized in APIC. Share options
exercised during the reporting period are satisfied with treasury stock.
Common Shares in Employee Trust Account
Common shares in the employee trust account, which consist of common shares irrevocably
assigned to the Banco de Oro Trust and Investment Group (BDO Trust) account, are recognized at
the amount at which such common shares were reacquired by the Parent Company for the purpose
of its executive/employee stock grant or such similar plans, and proportionately reduced upon
vesting of the benefit to the executive/employee grantee of the related number of common shares.
This account is shown as a separate line item in the equity section of the consolidated statement of
financial position.
Employee Stock Ownership Plan
Awards granted under the employee stock option plan of the Parent Company are accounted for as
equity-settled transactions. The cost of equity-settled transaction is measured by reference to the
fair value of the equity instruments at the date it is granted. Such cost, together with a
corresponding increase in equity, is recognized over the period in which the performance and/or
service conditions are fulfilled ending on the date on which the grantee becomes fully entitled to
the award (“vesting date”). The cumulative expense recognized for equity-settled transactions at
each financial reporting date until the vesting date reflects the extent to which the vesting period
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