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

- 81 -Balances atDecember 31, 2011 December 31, 2010Carrying Fair Carrying FairValue Value Value ValueReclassification from FVTPL to HTM P 1,547 P 1,960 P 1,635 P 1,885Reclassification of debt securitiesfrom AFS to HTM 16,107 18,743 18,248 20,539Reclassification of CLNs from AFSto Loans and Other Receivables 7,287 7,959 12,159 13,351Estimated cash flows on instruments reclassified from FVTPL to HTM at the date ofreclassification amounted to P9,174 both for BDO Unibank Group and Parent Bank.On the other hand, estimated cash flows on CLNs reclassified from AFS to Loans andOther Receivables at the date of reclassification amounted to P22,591 and P18,728 forBDO Unibank Group and Parent Bank, respectively.Reclassification from FVTPL to HTMTotal trading losses on FVTPL reclassified to HTM both in the BDO Unibank Groupand Parent Bank financial statements which were recognized in profit or loss amountedtoP199 in 2008. On the other hand, the net trading gain (loss) that would have beenrecognized in the period following the reclassification during 2011, 2010 and 2009 if thereclassifications had not been made would have amounted to P151, P84 and P396,respectively, for both BDO Unibank Group and Parent Bank. Effective interest ratesof FVTPL reclassified to HTM range from 7.0% to 8.6% in 2011, 2010 and 2009 in theBDO Unibank Group and Parent Bank financial statements. Amortization of premiumdue to change in effective interest rates recognized as part of interest income in profitor loss on reclassified securities amounted to (P9) in both the BDO Unibank Groupand Parent Bank financial statements in 2011 and 2010. No impairment recovery orloss was booked on reclassified instruments in both the BDO Unibank Group andParent Bank financial statements in 2011 and 2010.Reclassification of Debt Securities from AFS to HTMUnrealized fair value losses in equity of debt securities reclassified from AFS to HTM atreclassification dates amounted to P102 and P46 in the BDO Unibank Group andParent Bank financial statements, respectively, in 2008. The net trading gain (loss) thatwould have been recognized in other comprehensive income during the periodfollowing the reclassification if the reclassifications had not been made would haveamounted to P635, P1,395, and 3,395 in 2011, 2010 and 2009, respectively, in the BDOUnibank Group financial statement and P463, P1,175 and P3,190 in 2011, 2010 and2009, respectively, in the Parent Bank financial statement. Trading gain (loss) bookedon the redemption of the reclassified securities both in BDO Unibank Group andParent Bank financial statements are (P5) in 2011 and P98 in 2010. On the other hand,amortization of fair value loss previously recognized in other comprehensive income toprofit or loss due to reclassification amounted to P71 and P30 in the BDO UnibankGroup financial statement and P62 and P20 in the Parent Bank financial statements in2011 and 2010, respectively.