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

- 37 -BDO Unibank Group Parent BankCost Fair Value Cost Fair ValueFinancial Liabilities:Deposit liabilities 858,569 861,289 838,748 841,447Bills payable 59,474 59,495 51,378 51,460Subordinated notes payable 38,255 41,549 38,255 41,549Other liabilities 41,494 41,494 34,930 34,930December 31, 2010Financial Assets:Due from other banks and BSP P 160,259 P 160,260 P 150,151 P 150,152AFS securities – unquoted 927 * 662 *HTM investments 104,241 115,245 95,569 106,175Loans and other receivables 566,021 567,808 548,618 554,063Other resources 2,552 2,552 2,886 2,886Financial Liabilities:Deposit liabilities 782,635 784,917 762,634 765,289Bills payable 65,861 65,378 56,081 55,679Subordinated notes payable 23,152 25,120 23,152 25,120Other liabilities 37,898 37,898 32,403 32,403* Data not available(i) Due from Other Banks and BSPDue from BSP pertains to deposits made by BDO Unibank Group to BSP forclearing and reserve requirements. Due from other banks includes interbankplacements and items in the course of collection. The fair value of floating rateplacements and overnight deposits is their carrying amount. The estimated fairvalue of fixed interest-bearing deposits is based on discounted cash flows usingprevailing money market interest rates for debts with similar credit risk andremaining maturity, which for short-term deposits approximate the nominal value.(ii) AFS SecuritiesThe fair value of AFS securities is determined by direct reference to publishedprice quoted in an active market for traded securities. On the other hand,unquoted AFS securities are carried at cost because the fair value cannot bereliably determined either by reference to similar financial instruments orthrough valuation technique.Currently, there is no available market to sell the unquoted equity AFSsecurities. The Bank will hold into the investments until management decides tosell them when there will be offers to buy out such investments on theappearance of an available market where the investments can be sold.(iii) HTM InvestmentsThe fair value for held-to-maturity assets is based on market prices. Where thisinformation is not available, fair value has been estimated using quoted marketprices for securities with similar credit, maturity and yield characteristics orthrough valuation techniques using discounted cash flow analysis.