EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
2014 2013
Carrying
Amounts Fair Values
Carrying
Amounts Fair Values
Financial Liabilities
Financial liabilities at amortized cost:
Long-term debts ₱69,462,241,673 ₱86,080,409,672 ₱58,548,760,334 ₱62,920,736,836
Derivative liabilities:
Derivative liabilities designated as cash
flow hedges 169,734,900 169,734,900 4,198,322 4,198,322
₱69,631,976,573 ₱86,250,144,572 ₱58,552,958,656 ₱62,924,935,158
Due to relatively short maturity, ranging from one to three months, carrying amounts approximate
fair values for cash and cash equivalents, trade and other receivables, amounts due to related
parties and trade and other payables.
The methods and assumptions used by the Company in estimating the fair value of financial
instruments are:
Long-term Receivables
The fair value of long-term receivables was computed by discounting the expected cash flow using
the applicable rate of 3.06% and 2.52% in December 31, 2014 and 2013, respectively.
AFS Investment
Fair values of quoted debt and equity securities are based on quoted market prices. For equity
investments that are not quoted, the investments are carried at cost less allowance for impairment
losses due to the unpredictable nature of future cash flows and the lack of suitable methods of
arriving at a reliable fair value.
Long-term Debts
The fair values for the Company’s long-term debts are estimated using the discounted cash flow
methodology with the applicable rates ranging from 1.76% to 6.71% and 1.76% to 7.40% in
December 31, 2014 and 2013, respectively.
The following tables show the fair value information of financial instruments classified under
loans and receivables, financial asset at FVPL, AFS investments, and derivatives designated as
cash flow hedges and analyzed by sources of inputs on fair valuation as follows:
Quoted prices in active markets for identical assets or liabilities (Level 1);
Those involving inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and
Those with inputs for the asset or liability that are not based on observable market data
(unobservable inputs) (Level 3)
2014
Total Level 1 Level 2 Level 3
Loans and receivables:
Long-term receivables ₱85,753,718 ₱– ₱– ₱85,753,718
Financial asset at FVPL 523,593,442 − 523,593,442 −
AFS investments:
Debt investments 259,846,955 259,846,955 − −
Equity investments 308,129,936 308,129,936 − −
Derivative assets designated as
cash flow hedges 154,169,144 − 154,169,144 −
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