2014 Financial Statement
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EDC <strong>2014</strong> Performance Report<br />
In December 2011, certain assets of the Company located in Southern Negros were damaged due<br />
to Typhoon Sendong. The Company received insurance proceeds amounting to ₱153.0 million in<br />
<strong>2014</strong> which were presented as part of the “Other income (charges)” account in the consolidated<br />
statement of income.<br />
Estimated Rehabilitation and Restoration Costs<br />
FCRS and production wells include the estimated rehabilitation and restoration costs of the<br />
Company’s steam fields and power plants’ contract areas at the end of the contract period. These<br />
were based on technical estimates of probable costs, which may be incurred by the Company in<br />
the rehabilitation and restoration of the said steam fields’ and power plants’ contract areas from<br />
2031 up to 2044, using a risk-free discount rate and adjusted the cash flows to settle the provision.<br />
Similarly, EBWPC has recorded an estimated provision for asset retirement obligation relating to<br />
the removal and disposal of all wind farm materials, equipment and facilities from the contract<br />
areas at the end of contract period. The amount of provision was recorded as part of the costs of<br />
power plants.<br />
Details of the cost and related accumulated amortization of estimated rehabilitation and restoration<br />
costs follow:<br />
<strong>2014</strong> 2013<br />
Cost<br />
Balances at January 1 ₱527,620,983 ₱399,029,959<br />
Additions 54,531,215 128,591,024<br />
Balances at December 31 582,152,198 527,620,983<br />
Accumulated Amortization<br />
Balances at January 1 ₱81,133,657 ₱52,745,788<br />
Amortization 31,484,765 28,387,869<br />
Balances at December 31 112,618,422 81,133,657<br />
Net Book Value ₱469,533,776 ₱446,487,326<br />
The corresponding provision for rehabilitation and restoration costs amounting to ₱748.5 million<br />
as of December 31, <strong>2014</strong> and ₱654.4 million as of December 31, 2013 were recorded under<br />
“Provisions and other long-term liabilities” account in the consolidated statement of financial<br />
position(see Note 18). Accretion expense amounted to ₱33.1 million, ₱24.0 million and<br />
₱27.6 million for the years ended December 31, <strong>2014</strong>, 2013 and 2012, respectively (see Notes 18<br />
and 24).<br />
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