EDC PR 2016 (FS section)

Financial Statement
December 31, 2015
Entity
Beginning of
the year Additions
Utilization/
monetization End of the year
EDC ₱2,471,115,074 ₱842,606,588 (₱631,479,675) ₱2,682,241,987
FG Hydro 126,571,964 184,823,333 (87,268,197) 224,127,100
EBWPC – 15,889,006 – 15,889,006
GCGI 16,473,041 40,535,897 (44,305,801) 12,703,137
₱2,614,160,079 ₱1,083,854,824 (₱763,053,673) ₱2,934,961,230
As of December 31, 2016 and 2015, the Company classified a portion of their TCCs as current
assets totaling to ₱142.5 million and to ₱279.7 million, respectively and presented as part of
“Prepaid expenses” under “Other Current Assets” (see Note 11). These are expected to be utilized
for payment of various taxes within twelve (12) months.
TCCs that remain unutilized after five (5) years from the date of original issuance are still valid
provided that these are duly revalidated by the BIR within the period allowed by law.
Prepaid Expenses
Prepaid expenses includes real property tax (RPT) payments under protest to certain local
government units totaling to ₱514.4 million and ₱376.0 million as of December 31, 2016 and
2015, respectively. The amounts paid in protest were in excess of the amounts determined using
the 1.5% RPT rate stated in the Renewable Energy Law, and are pending with the Local Board of
Assessment Appeals and Central Board of Assessment Appeals.
Also, in connection with the installation of Burgos Wind Project’s wind turbines and related
dedicated point-to-point limited facilities, the Company entered into uniform land lease
agreements and contracts of easement of right of way with various private landowners. The term
of the land lease agreement starts from the execution date of the contract and ends after 25 years
from the commercial operations of the Burgos Wind Project. The total prepaid lease amounted to
₱150.5 million and ₱156.3 million as of December 31, 2016 and 2015, respectively. Out of this
amount, ₱6.6 million and ₱6.8 million were reclassified as the current portion as of
December 31, 2016 and 2015, respectively.
Allowance for impairment
The rollforward analysis of the allowance for impairment pertaining to input VAT and
long-term receivables is presented below.
2016
Long term receivables
Input VAT NPC Others Total
Beginning of year ₱338,904,980 ₱1,490,483 ₱92,898,684 ₱433,294,147
Provision for impairment
(Note 22) 50,578,199 – 17,841,501 68,419,700
Write-off (43,594,690) – – (43,594,690)
End of year ₱345,888,489 ₱1,490,483 ₱110,740,185 ₱458,119,157
Specific impairment ₱– ₱1,490,483 ₱106,506,013 ₱107,996,496
Collective impairment 345,888,489 – 4,234,172 350,122,661
Total ₱345,888,489 ₱1,490,483 ₱110,740,185 ₱458,119,157
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