EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
Direct costs incurred related to equity issuance, such as underwriting, accounting and legal fees,
printing costs and taxes are debited to the “Additional paid-in capital” account. If additional
paid-in capital is not sufficient, the excess is charged against an equity reserve account.
Common Shares in Employee Trust Account
Common shares in the employee trust account, which consist of common shares irrevocably
assigned to the Banco de Oro Trust and Investment Group (BDO Trust) account, are recognized at
the amount at which such common shares were reacquired by the Company for the purpose of its
executive/employee stock grant or such similar plans, and proportionately reduced upon vesting of
the benefit to the executive/employee grantee of the related number of common shares.
This account is shown as a separate line item in the equity section of the consolidated statement of
financial position.
Employee Stock Ownership Plan
Awards granted under the employee stock ownership plan of the Company are accounted for as
equity-settled transactions. The cost of equity-settled transaction is measured by reference to the
fair value of the equity instruments at the date it is granted. Such cost, together with a
corresponding increase in equity, is recognized over the period in which the performance and/or
service conditions are fulfilled ending on the date on which the grantee becomes fully entitled to
the award (“vesting date”). The cumulative expense recognized for equity-settled transactions at
each financial reporting date until the vesting date reflects the extent to which the vesting period
has expired, as well as the Company’s best estimate of the number of equity instruments that will
ultimately vest. No expense is recognized for awards that do not ultimately vest, except for
awards where vesting is conditional upon a market or non-vesting condition, in which, awards are
treated as vesting irrespective of whether or not the market or non-vesting condition is satisfied,
provided that all other performance conditions are satisfied.
Where the terms of an equity-settled award are modified, the minimum expense recognized is the
expense had the terms not been modified, if the original terms of the award are met. An additional
expense is recognized for any modification which increases the total fair value of the share-based
payment transaction or which is otherwise beneficial to the employee as measured at the date of
modification.
Where an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation,
and any expense not yet recognized for the award is recognized immediately. This includes any
award where non-vesting conditions within the control of either the Company or the employee are
not met. However, if a new award is substituted for the cancelled award and designated as a
replacement award on the date that it is granted, the cancelled and new awards are treated as if
they were a modification of the original award, as described in the previous paragraph.
Equity Reserve
Equity reserve is the difference between the acquisition cost of an entity under common control
and the Parent Company’s proportionate share in the net assets of the entity acquired as a result of
a business combination accounted for using the pooling-of-interests method. Equity reserve is
derecognized when the subsidiary is deconsolidated, which is the date on which control ceases.
Retained Earnings
Retained earnings represent the cumulative balance of periodic net income or loss, dividend
contributions, prior period adjustments, effect of changes in accounting policy and other capital
adjustments.
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