EDC PR 2016 (FS section)

Financial Statement
The Company also identifies parts and supplies inventories subject to disposal and provides
provision equivalent to the carrying amount of these items. As of December 31, 2016 and 2015,
allowance for disposable parts and supplies amounted to ₱358.2 million and ₱285.9 million,
respectively.
The amount of inventory charged to expense amounted to ₱679.9 million, ₱1,082.7 million and
₱1,296.5 million in 2016, 2015 and 2014, respectively (see Notes 21 and 22). Details of parts and
supplies inventories issued are as follows:
2016 2015 2014
Cost of sales of electricity
(Note 21) ₱576,124,848 ₱929,862,753 ₱1,067,442,483
General and administrative
expenses (Note 22) 103,791,968 152,821,728 229,103,395
₱679,916,816 ₱1,082,684,481 ₱1,296,545,878
In November 2013, certain assets of the Company including certain inventories located in Leyte
sustained damage due to Typhoon Yolanda. After subsequent technical assessment, some parts
and supplies impaired in 2013 due to Typhoon Yolanda amounting to ₱16.8 million and ₱53.4
million were assessed to be reusable in 2015 and 2014, respectively. These were recognized as part
of “Miscellaneous income (charges)” in the consolidated statements of income. No such similar
reversal was recognized in 2016 (see Note 26).
11. Other Current Assets
2016 2015
Debt service reserve account (Note 17) ₱1,027,456,246 ₱1,324,249,208
Prepaid expenses 432,484,359 450,489,959
Short-term investments 292,023,078 –
Withholding tax certificates 152,766,081 157,896,581
Tax credit certificates (Note 15) 142,459,327 279,694,215
Advances to contractors 26,095,754 49,716,522
Others – 1,372,214
₱2,073,284,845 ₱2,263,418,699
The debt service reserve account (DSRA) pertains to the restricted peso and dollar-denominated
interest bearing accounts opened and established by the Company in accordance with the loan
agreements entered into in 2015 that will serve as a cash reserve or deposit to service the principal
and/or interest payments due on the loans (see Note 17). Total interest earned on DSRA, net of
final tax, amounted to ₱9.4 million in 2016, ₱4.7 million in 2015 and nil in 2014 (see Note 17 and
24).
Prepaid expenses include prepaid insurance and rentals.
Short-term investments consist of money market securities with maturity of more than three (3)
months but less than twelve (12) months.
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