Prepayments

12 Months Ended

Dec. 31, 2022

Prepayments [Abstract]

Prepayments

19.Prepayments

As at December 31, 2022 and 2021, this account consists of:

	2022			2021
			(in million pesos)
Advances to suppliers and contractors		69,326			82,749
Prepaid taxes		14,911			15,652
Prepaid fees and licenses		1,983			1,631
Prepaid benefit costs (Note 26)		1,598			1,018
Prepaid repairs and maintenance		542			531
Prepaid rent		528			574
Prepaid insurance (Note 25)		120			163
Other prepayments		6,741			5,166
		95,749			107,484
Less current portion of prepayments		14,696			12,707
Noncurrent portion of prepayments		81,053			94,777

Advances to suppliers and contractors are noninterest-bearing and are to be applied to contractors’ subsequent progress billings for projects.

Prepaid taxes include creditable withholding taxes and input VAT.

Prepaid benefit costs represent excess of fair value of plan assets over present value of defined benefit obligations recognized in our consolidated statements of financial position. See Note 26 – Pension and Other Employee Benefits.

Other prepayments include capitalized commission amounting to Php6,286 million and Php4,859 million as at December 31, 2022 and 2021, respectively. See Note 5 - Income and Expenses.