Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure Of Significant Accounting Policies [Abstract]

Our consolidated financial statements include the financial statements of PLDT and the following subsidiaries (collectively, the “PLDT Group”) as at December 31, 2018 and 2017:

			2018				2017
	Place of		Percentage of Ownership
Name of Subsidiary	Incorporation	Principal Business Activity	Direct		Indirect		Direct		Indirect
Wireless
Smart:	Philippines	Cellular mobile services		100.0		—		100.0		—
Smart Broadband, Inc., or SBI, and Subsidiary	Philippines	Internet broadband distribution services		—		100.0		—		100.0
Primeworld Digital Systems, Inc., or PDSI	Philippines	Internet broadband distribution services		—		100.0		—		100.0
I-Contacts Corporation	Philippines	Operations support servicing business		—		100.0		—		100.0
Smart Money Holdings Corporation, or SMHC^(a)	Cayman Islands	Investment company		—		100.0		—		100.0
Far East Capital Limited, or FECL, and Subsidiary, or FECL Group^(a)	Cayman Islands	Cost effective offshore financing and risk management activities for Smart		—		100.0		—		100.0
PH Communications Holdings Corporation, or PHC	Philippines	Investment company		—		100.0		—		100.0
Connectivity Unlimited Resource Enterprise, or CURE	Philippines	Cellular mobile services		—		100.0		—		100.0
Francom Holdings, Inc., or FHI:	Philippines	Investment company		—		100.0		—		100.0
Chikka Holdings Limited, or Chikka, and Subsidiaries, or Chikka Group^(a)	British Virgin Islands	Content provider, mobile applications development and services		—		100.0		—		100.0
Wifun, Inc., or Wifun	Philippines	Software developer and selling of WiFi access equipment		—		100.0		—		100.0
Telesat, Inc.^(a)	Philippines	Satellite communications services		100.0		—		100.0		—
ACeS Philippines Cellular Satellite Corporation, or ACeS Philippines	Philippines	Satellite information and messaging services		88.5		11.5		88.5		11.5
Digitel Mobile Philippines, Inc., or DMPI, (a wholly-owned subsidiary of Digitel)	Philippines	Cellular mobile services		—		99.6		—		99.6
Fixed Line
PLDT Clark Telecom, Inc., or ClarkTel	Philippines	Telecommunications services		100.0		—		100.0		—
PLDT Subic Telecom, Inc., or SubicTel	Philippines	Telecommunications services		100.0		—		100.0		—
PLDT Global Corporation, or PLDT Global, and Subsidiaries	British Virgin Islands	Telecommunications services		100.0		—		100.0		—
Smart-NTT Multimedia, Inc.^(a)	Philippines	Data and network services		100.0		—		100.0		—
PLDT-Philcom, Inc., or Philcom, and Subsidiaries, or Philcom Group	Philippines	Telecommunications services		100.0		—		100.0		—
Talas Data Intelligence, Inc., or Talas	Philippines	Business infrastructure and solutions; intelligent data processing and implementation services and data analytics insight generation		100.0		—		100.0		—
ePLDT, Inc., or ePLDT:	Philippines	Information and communications infrastructure for internet-based services, e-commerce, customer relationship management and IT related services		100.0		—		100.0		—
IP Converge Data Services, Inc., or IPCDSI, and Subsidiary, or IPCDSI Group	Philippines	Information and communications infrastructure for internet-based services, e-commerce, customer relationship management and IT related services		—		100.0		—		100.0
Curo Teknika, Inc., or Curo	Philippines	Managed IT outsourcing		—		100.0		—		100.0
ABM Global Solutions, Inc., or AGS, and Subsidiaries, or AGS Group	Philippines	Internet-based purchasing, IT consulting and professional services		—		100.0		—		100.0
ePDS, Inc., or ePDS	Philippines	Bills printing and other related value-added services, or VAS		—		95.0		—		67.0
netGames, Inc.^(b)	Philippines	Gaming support services		—		57.5		—		57.5
MVP Rewards Loyalty Solutions, Inc., or MRSI^(c)	Philippines	Full-services customer rewards and loyalty programs		—		100.0		—		—
Digitel:	Philippines	Telecommunications services		99.6		—		99.6		—
Digitel Information Technology Services, Inc.^(a)	Philippines	Internet services		—		99.6		—		99.6
PLDT-Maratel, Inc., or Maratel	Philippines	Telecommunications services		98.0		—		98.0		—
Bonifacio Communications Corporation, or BCC	Philippines	Telecommunications, infrastructure and related VAS		75.0		—		75.0		—
Pacific Global One Aviation Company, Inc., or PG1	Philippines	Air transportation business		65.0		—		65.0		—
Pilipinas Global Network Limited, or PGNL, and Subsidiaries	British Virgin Islands	Internal distributor of Filipino channels and content		64.6		—		64.6		—
Others
PLDT Global Investments Holdings, Inc., or PGIH	Philippines	Investment company		100.0		—		100.0		—
PLDT Digital Investments Pte. Ltd., or PLDT Digital, and Subsidiaries	Singapore	Investment company		100.0		—		100.0		—
Mabuhay Investments Corporation, or MIC^(a)	Philippines	Investment company		67.0		—		67.0		—
PLDT Global Investments Corporation, or PGIC	British Virgin Islands	Investment company		—		100.0		—		100.0
PLDT Communications and Energy Ventures, Inc., or PCEV	Philippines	Investment company		—		99.9		—		99.9
Voyager Innovations Holdings, Pte. Ltd., or VIH, (formerly eInnovations Holdings Pte. Ltd.)^(d):	Singapore	Investment company		—		—		—		100.0
Voyager Innovations Investments Pte. Ltd., or VII, (formerly Takatack Holdings Pte. Ltd.)^(e)	Singapore	Investment company		—		—		—		100.0
Voyager Innovations Singapore Pte. Ltd., or VIS, (formerly Takatack Technologies Pte. Ltd.)^(f)	Singapore	Development and maintenance of IT-based solutions for communications and e-Commerce platforms		—		—		—		100.0
Takatack Malaysia Sdn. Bhd., or Takatack Malaysia	Malaysia	Development, maintenance and support services to enable the digital commerce ecosystem		—		—		—		100.0
Voyager Innovations, Inc., or Voyager	Philippines	Mobile applications and digital platform developer		—		—		—		100.0
Voyager Innovations Pte. Ltd., or VIP, (formerly ePay Investments Pte. Ltd.)^(g)	Singapore	Investment company		—		—		—		100.0
PayMaya Philippines, Inc., or PayMaya	Philippines	Provide and market certain mobile payment services		—		—		—		100.0
PayMaya Operations Philippines, Inc., or PayMaya Ops	Philippines	Market, sell and distribute payment solutions and other related services		—		—		—		100.0
ePay Investments Myanmar, Ltd., or ePay Myanmar^(h)	Myanmar	Investment company		—		—		—		100.0
3rd Brand Pte. Ltd., or 3rd Brand⁽ⁱ⁾	Singapore	Solutions and systems integration services		—		—		—		85.0
Voyager Fintech Ventures Pte. Ltd., or Fintech Ventures	Singapore	Investment company		—		—		—		100.0
Fintqnologies Corporation, or FINTQ	Philippines	Development of financial technology innovations		—		—		—		100.0
Fintq Inventures Insurance Agency Corporation	Philippines	Insurance company		—		—		—		100.0

^(a)

Ceased commercial operations.

^(b)

Ceased commercial operations and under liquidation due to shortened corporate life to August 31, 2015.

^(c)

On September 14, 2018, MRSI was incorporated and ePLDT made an initial investment of Php50 million.

⁽^d⁾

On July 11, 2017, the Accounting and Corporate Regulatory Authority, or ACRA, of Singapore approved the change in business name of eInnovations Holdings Pte. Ltd. to Voyager Innovations Holdings Pte. Ltd. On April 16, 2018, the ACRA of Singapore approved the transfer of VIH to PCEV. On November 28, 2018, upon closing of the subscription agreements of PLDT, Tencent Holdings Limited, or Tencent, and KKR & Co., Inc., or KKR, PCEV’s ownership in VIH was reduced to 53.87% and with only two board seats in the investee, the transaction resulted to a loss of control. On December 10, 2018, PCEV’s ownership in VIH was further reduced to 48.74% upon receipt of the investments from International Finance Corp., or IFC, and IFC Emerging Asia Fund, or IFC EAF. PCEV accounts for its remaining interest in VIH as investment in associate starting December 2018.

⁽^e⁾

On December 29, 2017, the ACRA of Singapore approved the change in business name of Takatack Holdings Pte. Ltd. to Voyager Innovations Investments Pte. Ltd.

⁽^f⁾

On March 6, 2018, the ACRA of Singapore approved the change in business name of Takatack Technologies Pte. Ltd. to Voyager Innovations Singapore Pte. Ltd.

⁽^g⁾

On January 25, 2018, the ACRA of Singapore approved the change in business name of ePay Investments Pte. Ltd. to Voyager Innovations Pte. Ltd.

⁽^h⁾

On July 25, 2017, ePay Investments Myanmar, Ltd. was incorporated in Myanmar to engage in the business of providing support services on the development and provision of digital technology.

⁽ⁱ⁾

On January 15, 2018, VIH purchased from Phenix Investment Management Ltd. (formerly Kolipri Communications Ltd.) its 15% minority interest of 3^rd Brand for a consideration of SG$1.00.

Reconciliation of Carrying Amounts of Financial Instruments from Their Previous Classification Measurement Category

As at January 1, 2018, we have reviewed and assessed all of its existing financial instruments. The following table reconciles the carrying amounts of financial instruments from their previous classification and measurement category in accordance with IAS 39 to their new classification and measurement categories upon transition to IFRS 9 on January 1, 2018.

		IAS 39							Remeasurement						IFRS 9
	Reference	Category	Amount			Reclassification			ECL			Others			Amount			Category
			(in million pesos)
Financial Assets
Cash and cash equivalents		Loans and receivables		32,905			—			—			—			32,905		Amortized Cost
Short-term investments		Loans and receivables		1,074			—			—			—			1,074		Amortized Cost
Trade and other receivables	3, 5	Loans and receivables		33,761			(4,091	)		(258	)		—			29,412		Amortized Cost
Current portion of investment in debt securities and other long-term investments		Loans and receivables		100			—			—			—			100		Amortized Cost
Current portion of advances and other noncurrent assets	3, 5	Loans and receivables		6,824			(6,785	)		—			—			39		Amortized Cost
Less: To Financial instruments at FVPL							(6,785	)
To Financial instruments at FVOCI							(4,091	)
Advances and other noncurrent assets – net of current portion	3, 5	Loans and receivables		13,855			(11,461	)		(18	)		—			2,376		Amortized Cost
Less: To Financial instruments at FVOCI							(11,461	)
Investment in debt securities and other long-term investments – net of current portion	2		N/A				150			—			—			150		Amortized Cost
Add: From HTM investments							150
		Loans and receivables		88,519			(22,187	)		(276	)		—			66,056		Amortized Cost
Investment in debt securities and other long-term investments – net of current portion	2	Held-to- maturity		150			(150	)
Less: To Financial instruments at amortized cost							(150	)
		Held-to- maturity		150			(150	)

Current portion of derivative financial assets	1	Derivatives used for hedging		171			(171	)		—			—			—
Derivative financial assets – net of current portion	1	Derivatives used for hedging		215			(215	)		—			—			—
Current portion of derivative financial liabilities	1	Derivatives used for hedging		(51	)		51			—			—			—
Derivative financial liabilities – net of current portion	1	Derivatives used for hedging		(8	)		8			—			—			—
Less: To financial assets at FVPL							(327	)
		Derivatives used for hedging		327			(327	)
Available-for-sale financial investments	4	Available- for-sale financial investments		15,165			(15,165	)		—			—			—
Less: To financial assets at FVPL							(15,165	)
		Available- for-sale financial investments		15,165			(15,165	)		—			—			—

Trade and other receivables	3, 5		N/A				4,091			—			(8	)		4,083		FVOCI
Advances and other noncurrent assets – net of current portion	3, 5		N/A				11,461			—			(128	)		11,333		FVOCI
Add: From Loans and receivables							15,552
							15,552			—			(136	)		15,416		FVOCI

Current portion of derivative financial assets	1		N/A				171			—			—			171		FVPL
Derivative financial assets – net of current portion	1		N/A				215			—			—			215		FVPL
Current portion of derivative financial liabilities	1		N/A				(51	)		—			—			(51	)	FVPL
Derivative financial liabilities – net of current portion	1		N/A				(8	)		—			—			(8	)	FVPL
Current portion of advances and other noncurrent assets	3		N/A				6,785			—			—			6,785		FVPL
Available-for-sale financial investments	4		N/A				15,165			—			—			15,165		FVPL
Add: From Loans and receivables							6,785			—			—			—
From Available-for-sale financial investments							15,165			—			—			—
From Derivatives used for hedging							327			—			—			—
							22,277			—			—			22,277		FVPL

⁽¹⁾

As at January 1, 2018, our analysis highlighted that certain complex structured products with separated embedded derivatives, based on the assessment of the combined instrument, did not meet the SPPI criterion. Therefore, we reclassified these loans along with the embedded derivatives – previously separated under IAS 39 – as financial assets at FVPL.

⁽²⁾

As at January 1, 2018, we do not have any debt instruments that did not meet the SPPI criterion within the held-to-maturity, or HTM, portfolio. Therefore, we elected to classify these instruments as debt instruments measured at amortized cost.

⁽³⁾

As at January 1, 2018, we have reclassified receivables from MPIC from loans and receivables to financial assets at FVOCI as this met the SPPI criterion and the business model is assessed as hold to collect contractual cash flows and sell financial assets.

⁽⁴⁾

As at January 1, 2018, we have classified our AFS asset-backed securities as financial assets measured at FVPL as the payments did not meet the SPPI criterion.

⁽⁵⁾

As at January 1, 2018, we have restated the beginning balance of allowance for doubtful accounts under IAS 39 incurred loss model and considered the new impairment model under IFRS 9 which requires to record lifetime losses on all financial assets which have experienced a significant increase in credit risk from initial recognition.

The following table sets forth our consolidated carrying values and estimated fair values of our financial assets and liabilities recognized as at December 31, 2018 and 2017 other than those whose carrying amounts are reasonable approximations of fair values:

	Carrying Value				Fair Value
	2018		2017		2018		2017
	(in million pesos)
Noncurrent Financial Assets
Debt instruments at amortized cost		150		—		148		—
Investment in debt securities and other long-term investments – net of current portion		—		150		—		151
Other financial assets – net of current portion		2,275		—		2,020		—
Advances and other noncurrent assets		—		13,855		—		13,695
Total		2,425		14,005		2,168		13,846
Noncurrent Financial Liabilities
Interest-bearing financial liabilities:
Long-term debt – net of current portion		155,835		157,654		139,504		150,918
Customers' deposits		2,194		2,443		1,305		1,700
Deferred credits and other noncurrent liabilities		3,088		5,680		2,583		5,093
Total		161,117		165,777		143,392		157,711

Summary of Effect of Adopting IFRS 9

The effect of adopting IFRS 9 as at January 1, 2018 were, as follows:

	Reference	Increase (Decrease)
		(in million pesos)
Assets:
Financial assets at FVOCI	3		(136	)
Total assets			(136	)

Total adjustment on equity:
Retained earnings	4		4,491
Other comprehensive income	4		(4,627	)
			(136	)

Reconciliation of Prior Period Closing Impairment Allowance, Provisions and Opening Impairment Allowance

The table below presents a reconciliation of the prior period’s closing impairment allowance measured in accordance with IAS 39 to the opening impairment allowance determined in accordance with IFRS 9 as at January 1, 2018.

Measurement category	Reference		Impairment allowance under IAS 39		Retained earnings, beginning Remeasurement		Impairment allowance under IFRS 9
			(in million pesos)
Loans and receivables (IAS 39)/ Financial assets at amortized cost (IFRS 9)
Trade and other receivables		5		14,501		258		14,759
Contract assets		5		—		114		114
Other financial assets		5		—		18		18
				14,501		390		14,891

Summary of Effect of Adopting IFRS 15

The effect of adopting IFRS 15 as at January 1, 2018 was as follows:

	Reference	Increase (Decrease)
		(in millions)
Assets
Trade and other receivables	C		(37	)
Contract assets	B and C		3,880
Deferred income tax assets	B and C		(918	)
Total assets			2,925

Liabilities
Contract liabilities and unearned revenues	B and C		178
Deferred income tax liabilities	B and C		194
Total liabilities			372
Net impact on equity
Retained earnings	B and C		2,553

Disclosure of Effect of Adoption of IFRS 15 in Summarized Financial Information

Consolidated statement of profit or loss for the year ended December 31, 2018

	Reference	IFRS 15			IAS 18			Increase (Decrease)
					(in millions)
Revenue from contracts with customers
Service revenues	A and C		154,207			157,845			(3,638	)
Non-service revenues	A, B and C		10,545			7,602			2,943
Revenue			164,752			165,447			(695	)
Interest income	C		1,943			1,486			457
Impairment loss	B and C		(206	)		—			(206	)
Provision for income tax	B and C		(3,842	)		(3,976	)		134
Net impact on profit for the year			162,647			162,957			(310	)

Attributable to:
Equity holders of parent	B and C		162,590			162,900			(310	)
Noncontrolling interests			57			57			—

Consolidated statement of financial position for the year ended December 31, 2018

	Reference	IFRS 15		IAS 18		Increase (Decrease)
				(in millions)
Assets
Noncurrent Assets
Property and equipment			195,964		195,964		—
Investments in associates and joint ventures			55,427		55,427		—
Financial assets at fair value through profit or loss			4,763		4,763		—
Debt instruments at amortized cost			150		150		—
Investment properties			777		777		—
Goodwill and intangible assets			68,583		68,583		—
Deferred income tax assets – net			27,697		28,530		(833	)
Derivative financial assets - net of current portion			140		140		—
Prepayments – net of current portion			6,255		6,255		—
Advances and other noncurrent assets – net of current portion			17,083		17,083		—
Financial assets at fair value through other comprehensive income – net of current portion			2,749		2,749		—
Other financial assets – net of current portion			2,275		2,275		—
Contract assets – net of current portion	B and C		1,083		—		1,083
Other non-financial assets – net of current portion			230		230		—
Total Noncurrent Assets			383,176		382,926		250

Current Assets
Cash and cash equivalents			51,654		51,654		—
Short-term investments			1,165		1,165		—
Trade and other receivables	C		24,056		23,958		98
Inventories and supplies			2,878		2,878		—
Current portion of contract assets	B and C		2,185		—		2,185
Current portion of derivative financial assets			183		183		—
Current portion of prepayments			7,760		7,760		—
Current portion of advances and other noncurrent assets			620		620		—
Current portion of financial assets at fair value through profit or loss			1,604		1,604		—
Current portion of other financial assets			7,008		7,008		—
Current portion of other non-financial assets			461		461		—
Total Current Assets			99,574		97,291		2,283
TOTAL ASSETS			482,750		480,217		2,533

Liabilities and Equity
Equity
Equity attributable to equity holders of PLDT	B and C		112,358		110,115		2,243
Non-controlling interests			4,308		4,308		—
Total Equity			116,666		114,423		2,243
Noncurrent Liabilities
Interest-bearing financial liabilities – net of current portion			155,835		155,835		—
Deferred income tax liabilities			2,981		2,836		145
Customers' deposits			2,194		2,194		—
Pension and other employee benefits			7,182		7,182		—
Deferred credits and other noncurrent liabilities	B and C		5,284		5,226		58
Total Noncurrent Liabilities			173,476		173,273		203
Current Liabilities
Accounts payable	B and C		74,610		74,610		—
Accrued expenses and other current liabilities			95,724		95,637		87
Current portion of interest-bearing financial liabilities			20,441		20,441		—
Dividends payable			1,533		1,533		—
Derivative financial liabilities			80		80		—
Income tax payable			220		220		—
Total Current Liabilities			192,608		192,521		87
Total Liabilities			366,084		365,794		290
TOTAL EQUITY AND LIABILITIES			482,750		480,217		2,533