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

- 7 -• PAS 27 (Amendment), Consolidated and Separate Financial Statements(effective from July 1, 2010). This amendment clarifies that theconsequential amendments made to PAS 21, The Effect of Changes in ForeignExchange Rates, PAS 28, Investment in Associate, and, PAS 31, Investment in JointVentures, arising from the PAS 27 (2008) amendments apply prospectively,to be consistent with the related PAS 27 transition requirements. Theamendment has no impact on BDO Unibank Group’s financial statements.• PAS 34 (Amendment), Interim Financial Reporting – Significant Event andTransactions (effective from January 1, 2011). The amendment providesfurther guidance to illustrate how to apply disclosure principles underPAS 34 for significant events and transactions to improve interim financialreporting. It requires additional disclosure covering significant changes tofair value measurement and classification of financial instruments, and toupdate relevant information from the most recent annual report. Thisamendment has no significant effect on the financial statements since theBDO Unibank Group already provides adequate information in its financialstatements in compliance with the disclosure requirements.• PFRS 3 (Amendments), Business Combinations (effective from July 1, 2010).The amendment clarifies that contingent consideration arrangement andbalances arising from business combinations with acquisition dates prior tothe entity’s date of adoption of PFRS 3 (Revised 2008) shall not be adjustedon the adoption date. It also provides guidance on the subsequentaccounting for such balances.It further clarifies that the choice of measuring non-controlling interest(NCI) at fair value or at the proportionate share in the recognized amountsof an acquiree’s identifiable net assets, applies only to instruments thatrepresent ownership interests and entitle their holders to a proportionateshare of the acquiree’s net assets in the event of liquidation. All othercomponents of NCI are measured at fair value unless PFRS requires anothermeasurement basis.This amendment also clarifies accounting for all share-based paymenttransactions that are part of a business combination, including unreplacedand voluntary replaced share-based payment awards. Specifically, thisprovides guidance for situations where the acquirer does not have anobligation to replace an award but replaces an existing acquiree award thatwould otherwise have continued unchanged after the acquisition, thusresulting to the accounting for these awards being the same as for theawards that the acquirer is obliged to replace. This amendment has nosignificant effect on the BDO Unibank Group’s financial statements sincethe manner of measuring NCI at the time of business combination is basedon net identifiable assets and there are no share-based payment transactionsthat are part of a business combination.