EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
in respect of deductible temporary differences associated with investments in subsidiaries,
associates and interests in joint ventures, deferred tax assets are recognized only to the extent
that it is probable that the temporary differences will reverse in the foreseeable future and
sufficient taxable profits will be available against which the temporary differences can be
utilized.
The carrying amount of deferred tax assets is reviewed at each financial reporting date and
reduced to the extent that it is no longer probable that sufficient future taxable profits will be
available to allow all or part of the deferred income tax asset to be utilized. Unrecognized
deferred tax assets are reassessed at each financial reporting date and are recognized to the extent
that it has become probable that sufficient future taxable profits will allow the deferred tax asset to
be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the
year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have
been enacted or substantively enacted as at the financial reporting date.
Deferred tax relating to items recognized directly in OCI is recognized in consolidated statement
of comprehensive income. Deferred tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to offset current tax assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same taxation authority.
VAT
Revenues, expenses and assets are recognized, net of the amount of VAT except:
where the VAT incurred on a purchase of assets or services is not recoverable from the tax
authority, in which case the VAT is recognized as part of the cost of acquisition of the asset or
as part of the expense item as applicable; and
where receivables and payables are stated with the amount of VAT included.
The net amount of VAT recoverable from the taxation authority is recorded as “Input VAT” under
the “Other noncurrent assets” account in the consolidated statement of financial position. Subject
to approval of the taxation authority, input VAT can be claimed for refund or as tax credit for
payment of certain types of taxes due to the Company. Input VAT claims granted by the taxation
authority are separately presented as “Tax Credit Certificates” under the “Other noncurrent assets”
account.
Earnings Per Share (EPS)
Basic earnings per share is computed by dividing net income for the year attributable to common
shareholders of the Parent Company with the weighted average number of common shares
outstanding during the year, after giving retroactive effect to any stock dividends or stock splits, if
any, declared during the year.
Diluted earnings per share is computed in the same manner, with the net income for the year
attributable to common shareholders of the Parent Company and the weighted average number of
common shares outstanding during the year, adjusted for the effect of all dilutive potential
common shares.
As of December 31, 2014 and 2013, the Company does not have any dilutive potential common
shares. Hence, diluted EPS is the same as basic EPS.
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