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

- 8 -• PFRS 7 (Amendment), Financial Instruments: Clarification of Disclosures(effective from January 1, 2011). The amendment clarifies the disclosurerequirements which emphasize the interaction between quantitative andqualitative disclosures about the nature and extent of risks arising fromfinancial instruments. It also amends the required disclosure of financialassets including the financial effect of collateral held as security. Thisamendment has no significant effect on the financial statements since BDOUnibank Group already provides adequate information in its financialstatements in compliance with the disclosure requirements.• Philippine Interpretation IFRIC 13, Customer Loyalty Programmes – Fair ValueAwards Credits (effective from January 1, 2011). The improvement clarifiesthat when the fair value of award credits is measured on the basis of thevalue of the awards for which they could be redeemed, the fair value of theaward credits should take into account the expected forfeitures as well asdiscounts or incentives that would otherwise be offered to customers whohave not earned award credits from an initial sale. This improvement hasno significant effect on the consolidated financial statements of BDOUnibank Group.(b) Effective in 2011 but not Relevant to BDO Unibank GroupThe following amended standards are mandatory for accounting periods beginningon or after July 1, 2010 or January 1, 2011 but are not relevant to BDO UnibankGroup’s financial statements:PAS 32 (Amendment) : Financial Instruments: Presentation -Classification of Rights IssuesPFRS 1 (Amendments) : First-time Adoption of PFRS(c) Effective Subsequent to 2011 but not Adopted EarlyThere are new PFRS, amendments, annual improvements and interpretations toexisting standards that are effective for periods subsequent to 2011. Managementhas initially determined the following pronouncements, which the BDO UnibankGroup will apply in accordance with their transitional provisions, to be relevant toits financial statements:(i) PAS 1 (Amendment), Financial Statements Presentation – Presentation of Items of OtherComprehensive Income (effective from July 1, 2012). The amendment requires anentity to group items presented in Other Comprehensive Income into those that,in accordance with other PFRSs: (a) will not be reclassified subsequently toprofit or loss and (b) will be reclassified subsequently to profit or loss whenspecific conditions are met. The management expects that this will not affect thepresentation of items in other comprehensive income since BDO UnibankGroup’s other comprehensive income only includes unrealized fair value gainsand losses on AFS securities and cumulative translation, which can bereclassified to profit or loss when specified conditions are met.