Via ODiSy March 22, 2012 PHILIPPINE STOCK EXCHANGE ... - BDO

- 3 -(i) The reconciliations of the equity reported under FRSP to equity under PFRS asof December 31 follow:BDO Unibank GroupParent Bank2011 2010 2011 2010Equity under FRSP P 96,962 P 88,732 P 89,583 P 82,549Prior year reconciling items 311 381 240 301Current year reconciling items:Amortization of premium/discount dueto change in effective interest rates ( 16) ( 222 ) ( 16 ) ( 209 )Amortization of negative fair value ofembedded derivatives on CLNsreclassified to loans and other receivables 9 - - -Reversal of net adjustments to equity due to:Unwinding of CLNs ( 80) - - -Unrealized mark-to-market gain (loss) onembedded derivatives on CLNsreclassified to loans and other receivables( 202) 152 ( 202) 148( 289) ( 70 ) ( 218) ( 61 )Total adjustments to equity 22 311 22 240Equity under PFRS P 96,984 P 89,043 P 89,605 P 82,789(ii) Differences in the measurement of items in the statements of financial positionas of December 31 are summarized below.BDO Unibank Group2011FRSP Difference PFRSChanges in resources:Trading and investment securities P 188,418 (P 218) P 188,200Loans and other receivables 673,927 240 674,167P 862,345 P 862,367Total adjustments to equity P 222010FRSP Difference PFRSChanges in resources:Trading and investment securities P 197,287 P 41 P 197,328Loans and other receivables 566,021 270 566,291P 763,308 P 763,619Total adjustments to equity P 311