EDC PR 2016 (FS section)

Financial Statement
Details of the cost and related accumulated amortization of estimated rehabilitation and restoration
costs follow:
2016 2015
Cost
Balances at January 1 ₱826,785,120 ₱582,152,198
Adjustment (81,308,595) 244,632,922
Balances at December 31 745,476,525 826,785,120
Accumulated Amortization
Balances at January 1 144,425,188 112,618,422
Amortization 39,592,975 31,806,766
Balances at December 31 184,018,163 144,425,188
Net Book Value ₱561,458,362 ₱682,359,932
The corresponding provision for rehabilitation and restoration costs amounting to ₱1,012.4 million
and ₱1,058.0 million as of December 31, 2016 and 2015, respectively, are recorded under
“Provisions and other long-term liabilities” account in the consolidated statement of financial
position (see Note 18).
Accretion expense amounted to ₱50.1 million, ₱35.4 million and ₱33.1 million in 2016, 2015 and
2014, respectively (see Notes 18 and 24).
Depreciation and Amortization
Details of depreciation and amortization charges recognized in the profit or loss are shown below:
2016 2015 2014
Property, plant and equipment ₱5,559,453,898 ₱5,106,429,287 ₱4,018,702,569
Intangible assets (Note 13) 171,155,201 144,312,921 114,113,239
Capitalized depreciation (31,769,073) (95,905,511) (53,516,511)
₱5,698,840,026 ₱5,154,836,697 ₱4,079,299,297
Costs of sales of electricity
(Note 21) ₱5,387,475,300 ₱4,799,889,856 ₱3,664,022,741
General and administrative
expenses (Note 22) 311,364,726 354,946,841 415,276,556
₱5,698,840,026 ₱5,154,836,697 ₱4,079,299,297
Reclassifications
The reclassifications in the accumulated depreciation of property, plant and equipment include the
capitalized depreciation charges amounting to ₱31.8 million and ₱95.9 million in 2016 and 2015,
respectively, under construction in progress which primarily relates to ongoing drilling of
production wells.
Other reclassifications in the cost of property, plant and equipment in 2016 and 2015 were due to
adjustments to provision for rehabilitation and restoration costs, and results of reassessment made
by the Company on the nature of the assets.
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