2014 Financial Statement
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EDC <strong>2014</strong> Performance Report<br />
Non-monetary items measured at fair value in a foreign currency are translated using the exchange<br />
rates at the date when the fair value was determined. Foreign exchange differences between the<br />
rate at transaction date and the rate at settlement date or financial reporting date are recognized in<br />
the consolidated statement of income.<br />
The functional currency of the Company’s subsidiaries is Philippine Peso, except for the following<br />
subsidiaries:<br />
Subsidiary<br />
Functional Currency<br />
EHIL<br />
Philippine Peso<br />
EDC HKL - do -<br />
EDC Chile Holdings SPA<br />
Chilean peso<br />
EDC Geotermica Chile - do -<br />
EDC Chile Limitada - do -<br />
EDC Peru Holdings S.A.C.<br />
Peruvian nuevo sol<br />
EDC Geotermica Peru S.A.C. - do -<br />
EDC Quellaapacheta - do -<br />
EDC Geotérmica Del Sur S.A.C. - do -<br />
EDC Energía Azul S.A.C. - do -<br />
Geotermica Crucero Peru S.A.C. - do -<br />
EDC Energía Perú S.A.C. - do -<br />
Geotermica Tutupaca Norte Peru S.A.C. - do -<br />
EDC Energía Geotérmica S.A.C. - do -<br />
EDC Progreso Geotérmico Perú S.A.C. - do -<br />
Geotermica Loriscota Peru S.A.C. - do -<br />
EDC Energía Renovable Perú S.A.C. - do -<br />
EDC Soluciones Sostenibles Ltd - do -<br />
EDC Desarollo Sostenible Ltd - do -<br />
EDC Energia Verde Chile SpA - do -<br />
EDC Energia de la Tierra SpA - do -<br />
EDC Energia Verde Peru SAC - do -<br />
PT EDC Indonesia<br />
Indonesian rupiah<br />
PT EDC Panas Bumi Indonesia - do -<br />
For subsidiaries whose functional currency is different from the presentation currency, the<br />
Company translates the results of their operations and financial position into the presentation<br />
currency. As at the financial reporting date, the assets and liabilities presented (including<br />
comparatives) are translated into the presentation currency at the closing rate of exchange<br />
prevailing at the financial reporting date while the capital stock and other equity balances are<br />
translated at historical rates of exchange. The income and expenses for the consolidated statement<br />
of income presented (including comparatives) are translated at the exchange rates at the dates of<br />
the transactions, where determinable, or at the weighted average rate of exchange during the year.<br />
The exchange differences arising on the translation to the presentation currency are recognized as<br />
a separate component of equity under the “Cumulative translation adjustment arising from foreign<br />
subsidiaries account in the consolidated statement of financial position.<br />
Foreign Currency-Denominated Transactions<br />
Transactions in foreign currencies are initially recorded at the functional currency rate at the date<br />
of the transaction. Monetary assets and monetary liabilities denominated in foreign currencies are<br />
translated using the functional currency rate of exchange as at financial reporting date. All<br />
differences are taken to the consolidated statement of income under “Foreign exchange gains<br />
(losses)” account. Nonmonetary items that are measured at historical cost in a foreign currency<br />
are translated using the exchange rate as at the date of the transactions. Nonmonetary items<br />
measured at fair value in a foreign currency are translated using the exchange rates at the date<br />
when the fair value is determined.<br />
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