New and Amended Standards and Interpretations
The accounting policies adopted are consistent with those of the previous financial year, except that the PLDT Group has adopted the following amendments starting January 1, 2017. Except for amendments to International Accounting Standards, or IAS, 7 and early adoption of amendments to IFRS 2, the adoption of these amendments did not have any significant impact on PLDT Group’s financial position or performance.
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Amendments to IFRS 12, Disclosure of Interests in Other Entities: Clarification of the Scope of the Standard (Part of Annual Improvements to IFRSs 2014 - 2016 Cycle) |
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Amendments to IAS 12, Income Taxes, Recognition of Deferred Tax Assets for Unrealized Losses |
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Amendments to IAS 7, Statement of Cash Flows, Disclosure Initiative |
We have provided the required information in Note 29 – Notes to the Statement of Cash Flows to our consolidated financial statements. As allowed under the transition provisions of the standard, we did not present comparative information for the year ended December 31, 2016.
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Amendments to IFRS 2, Share-based Payment, Classification and Measurement of Share-based Payment Transactions |
On January 1, 2017, the PLDT Group elected to adopt early the June 2016 amendments to IFRS 2, Share-based Payment. The amendments to IFRS 2 which are effective beginning on or after January 1, 2018 apply where tax laws or regulations oblige an entity to withhold an amount for an employee’s tax obligation associated with a share-based payment and transfer that amount, normally in cash, to the tax authority on the employee’s behalf. The exception in IFRS 2 applies and the transaction is accounted for as equity-settled in its entirety (rather than being divided into an equity-settled portion and a cash-settled portion) if the transaction would have been classified as equity-settled in the absence of the net settlement feature. Since the PLDT Group is under the tax regime where it is required to withhold an amount to meet the tax liability, the amendment to IFRS 2 regarding the classification of a share-based payment transaction with net settlement features for withholding tax obligations applies to the arrangement. We treat the Transformation Incentive Plan, or the TIP, as equity-settled in its entirety.