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

- 87 -Leasehold Furniture,Rights and Fixtures andLand Buildings Improvements Equipment TotalParent BankBalance at January 1, 2010,net of accumulateddepreciation andamortization P 4,780 P 3,858 P 1,322 P 3,098 P 13,058Additions 89 564 447 1,100 2,200Disposals ( 15 ) ( 15 ) ( 6 ) ( 59 ) ( 95 )Reclassifications 225 252 5 - 482Depreciation and amortizationcharges for the year - ( 229 ) ( 412 ) ( 889 ) ( 1,530 )Balance at December 31,2010, net of accumulateddepreciation andamortization P 5,079 P 4,430 P 1,356 P 3,250 P 14,115Under BSP rules, investments in premises, furniture, fixtures and equipment should notexceed 50% of a bank’s unimpaired capital. As of December 31, 2011 and 2010, theBDO Unibank Group has complied with this requirement.12. INVESTMENT PROPERTIESInvestment properties include land and buildings held for capital appreciation and forrental. Income earned from investment properties under rental arrangements amountedto P68 and P62 in 2011 and P81 and P78 in 2010 and are presented as part of Incomefrom assets acquired under Other Operating Income in the BDO Unibank Group andParent Bank financial statements, respectively (see Note 22). Direct expenses incurredfrom these properties amounted to P45 and P17 in 2011 and P32 and P22 in 2010 inthe BDO Unibank Group and Parent Bank financial statements, respectively.The gross carrying amounts and accumulated depreciation and impairment at thebeginning and end of 2011 and 2010 are shown below.BDO Unibank GroupLand Buildings TotalDecember 31, 2011Cost P 10,231 P 3,839 P 14,070Accumulated depreciation - ( 1,658 ) ( 1,658)Allowance for impairment(see Note 14) ( 2,206) ( 69 ) ( 2,275)Net carrying amount P 8,025 P 2,112 P 10,137December 31, 2010Cost P 11,342 P 4,077 P 15,419Accumulated depreciation - ( 1,500 ) ( 1,500)Allowance for impairment(see Note 14) ( 1,765) ( 175 ) ( 1,940)Net carrying amount P 9,577 P 2,402 P 11,979