Banco de Oro Universal Bank provides a - Asianbanks.net

2005 ANNUAL REPORT29Notes to Financial StatementsDecember 31, 2005 and 2004(Amounts in Thousands of Pesos Except Per Share Data)1. CORPORATE INFORMATIONBanco de Oro Universal Bank (the “Bank”) was incorporated in the Philippines on August 16, 1967 to engage in the business of banking.It was authorized to engage in trust operations on September 18, 1987 and in foreign currency deposit operations on November 23, 1990.On August 5, 1996, the Bangko Sentral ng Pilipinas (BSP) granted approval to the Bank to operate as an expanded commercial bank. TheBank commenced operations as such in September of the same year. At the end of 2005, the Bank has 185 branches, and 164 on-site and235 off-site automated teller machines, all located nationwide.The Bank has nine subsidiaries engaged in allied undertakings, namely:SubsidiaryBDO Capital & Investment Corporation(BDO Capital) – 100% ownedBDO Private Bank, Inc. – 100% owned(BDO Private Bank)BDO Financial Services, Inc.(BDO Financial) – 100% ownedBDO Realty Corporation(BDO Realty) – 100% ownedBDO Insurance Brokers, Inc.(BDO Insurance) – 100% ownedBDO Card Corporation(BDO Card) – approximately 60% ownedOnshore Strategic Assets, Inc.(Onshore) – 100% ownedBDO Securities Corporation(BDO Securities) – 100% ownedsubsidiary of BDO CapitalBDO Remittance Limited(BDO Remittance) – 100% ownedsubsidiary of BDO FinancialNature of BusinessInvestment houseCommercial bankForeign exchange dealerReal estateInsurance brokerCredit cardAsset managementStock brokerRemittanceThe Bank’s registered address is at 12 ADB Avenue, Benguet Center, Ortigas Center, Mandaluyong City.The Bank and its subsidiaries (the “Group”), except for BDO Remittance which operates in Hongkong, operate within the Philippines.The Bank’s common shares are listed in the Philippine Stock Exchange (PSE).The consolidated financial statements of the Bank and its subsidiaries and the financial statements of the Bank for the year endedDecember 31, 2005 (including the comparatives for the year ended December 31, 2004) were authorized for issue by the Bank’s Board ofDirectors through its Audit Committee on March 25, 2006.2. TRANSITION TO PHILIPPINE FINANCIAL REPORTING STANDARDSThe Accounting Standards Council (ASC), the accounting standards-setting body in the Philippines, started a program in 1997 to movefully to the International Accounting Standards (IASs) issued by the then International Accounting Standards Committee (IASC). In April2001, IASC was succeeded by the International Accounting Standards Board (IASB) which since then has issued revised IASs and newInternational Financial Reporting Standards (IFRSs).To correspond better with the issuances of the IASB, the ASC re-named the Standards it issues as Philippine Financial ReportingStandards or PFRSs (previously referred to as Statements of Financial Accounting Standards or SFASs). PFRSs consist of:a. PFRSs (corresponding to IFRSs);b. Philippine Accounting Standards or PASs (corresponding to IASs); and,c. Interpretations (corresponding to IFRICs and SICs).In compliance with the pronouncements of ASC and regulations of the Securities and Exchange Commission (SEC) and the BSP, the Grouphas adopted PFRS for the first time in its financial statements for the year ended December 31, 2005, with January 1, 2004 as its transitiondate. The transition from previous generally accepted accounting principles (GAAP) in the Philippines to PFRS has been made inaccordance with PFRS 1, First-time Adoption of Philippine Financial Reporting Standards.The Group’s financial statements for 2005 and the comparatives presented for 2004 comply with all presentation and disclosurerequirements of the relevant PFRSs applicable for accounting periods commencing on or after January 1, 2005.Due to the transition to PFRS, the 2004 comparatives contained in these financial statements differ from those previously presented inthe financial statements for the year ended December 31, 2004.