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

- 13 -When BDO Unibank Group ceases to have control, any interest retained in thesubsidiary is remeasured to its fair value, with the change in carrying amountrecognized in profit or loss. The initial carrying amount for the purposes ofsubsequently accounting for the interest retained as an associate, joint venture orfinancial asset is the fair value. In addition, any amounts previously recognized inother comprehensive income in respect of that entity are accounted for as if BDOUnibank Group had directly disposed of the related resources or liabilities. Thismay mean that amounts previously recognized in other comprehensive income arereclassified to profit or loss.In BDO Unibank Group’s financial statements, the non-controlling interestcomponent is shown in BDO Unibank Group’s statement of changes in equity andin BDO Unibank Group’s statement of income. Non-controlling interests in 2011and 2010 represent the interests not held by BDO Unibank Group in BDO Leasingand Finance, Inc., BDO Elite Savings Bank, Inc. and Equimark – NFCDevelopment Corp.2.05 Segment ReportingOperating segments are reported in a manner consistent with the internal reportingprovided to the BDO Unibank Group’s chief operating decision-maker. The chiefoperating decision-maker is responsible for allocating resources and assessingperformance of the operating segments.In identifying its operating segments, management generally follows the BDO UnibankGroup's products and services as disclosed in Note 5, which represent the mainproducts and services provided by the BDO Unibank Group.Each of these operating segments is managed separately as each of these servicesrequires different technologies and resources as well as marketing approaches. Allinter-segment transfers are carried out at arm's length pricesThe measurement policies of the BDO Unibank Group uses for segment reportingunder PFRS 8, Operating Segments, is the same as those used in its financial statements.In addition, corporate assets which are not directly attributable to the business activitiesof any operating segment are not allocated to a segment.There have been no changes from prior periods in the measurement methods used todetermine reported segment profit or loss.The BDO Unibank Group’s operations are organized according to the nature of theproducts and services provided. Financial information on operating segments ispresented in Note 5.