**Form 6-KDisclosure**

 

PLDT hereby reports that subsequent to the filing of itsAnnual Report on Form 20-F (as amended to date, the “Annual Report on Form20-F”) of its audited consolidated financial statements (“PLDT’s U.S. GAAPFinancial Statements”) as of December 31, 2002 and 2001 and for the years endedDecember 31, 2002, 2001 and 2000 prepared in accordance with accountingprinciples generally accepted in the United States (“U.S. GAAP”), PLDT hasdiscovered that certain items need to be adjusted in PLDT’s U.S. GAAP FinancialStatements.  Accordingly, PLDT is in the process of finalizing the adjustmentsto be made to PLDT’s U.S. GAAP Financial Statements.  PLDT will, as soon aspracticable after such adjustments are finalized, file an amendment to its AnnualReport on Form 20-F which will include audited restated U.S. GAAP FinancialStatements.  

 

PLDT currently estimates the effect of the variousadjustments to be as follows:

 

|                                                 | Years Ended December 31 |
|------------------------------------------------------|-------------------------|
| U.S. GAAP Financial Information                      | **2002**                | 2001 | 2000 |
|                                                 | (Unaudited)             |
| (in millions of pesos, except per share amounts)     |
| **Net loss as previously reported**                  | **(4,559)**             | (27,484) | (23,087) |
| Depreciation:                                        | ** **              |   |   |
| Smart analog assets                                  | **(1,557)**             | – | – |
| Mabuhay                                              | **(273)**               | 236 | (136) |
| Impairment of Piltel EO 109 assets                   | **(1,150)**             | – | – |
| Customer list amortization                           | **(225)**               | (225) | – |
| Goodwill amortization                                | **402**                 | 363 | 272 |
| Unrealized foreign exchange loss – net          | **(55)**                | (742) | (1,053) |
| Revenue recognition adjustments                      | **34**                  | (165) | (42) |
| Lease accounting adjustments                         | **(64)**                | (58) | (56) |
| Consolidation:                                       | ** **              |   |   |
| Piltel                                               | **(275)**               | 133 | (1,893) |
| Minority interest in earnings                        | **(135)**               | – | 415 |
| Deferred income tax benefit (expense)                | **1,687**               | 2,153 | (2,627) |
| Others                                               | –                  | – | 13 |
| **Net loss as adjusted**                             | **(6,170)**             | (25,789) | (28,194) |
|                                                 | ** **              |   |   |
| **Earnings per common share as previously reported** | **(42.60)**             | (175.08) | (154.34) |
| **Earnings per common share as adjusted**            | **(52.15)**             | (165.03) | (186.73) |
| ** **                                           | ** **              | ** ** | ** ** |
| **Stockholders’ equity as previously reported** | **15,122**              | 21,573 | 50,558 |
| Adjustments to current year’s net loss          | **(1,611)**             | 1,695 | (5,107) |
| Adjustments affecting prior years’ net loss     | **(3,412)**             | (5,107) | – |
| Adjustments related to equity                        | **2,321**               | 2,333 | 2,341 |
| **Stockholders’ equity as adjusted**            | **12,420**              | 20,494 | 47,792 |

 

Although PLDT currently believes that its estimates for theexpected adjustments described above are materially correct, those adjustmentsare subject to change while PLDT finalizes such adjustments.