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

- 94 -Full allowance for impairment on the receivables from SPVs amounted to P3,440 as ofDecember 31, 2011 and 2010.13.03 Deposits Under EscrowDeposits under escrow pertain to the portion of the cash received by BDO UnibankGroup in consideration for its assumption of First e-Bank Corporation’s deposits andother liabilities in October 2002. This amount is held in escrow pending compliance byBDO Unibank Group with certain terms and conditions, particularly the transfer oftitles, as stipulated in the Memorandum of Agreement (MOA). Deposits under escrowearn an annual effective interest of 5.8% and 5.7% in 2011 and 2010, respectively.13.04 Non-current Assets Held for saleNon-current assets held for sale consist of real and other properties acquired throughrepossession or foreclosure that BDO Unibank Group intends to sell within one yearfrom the date of classification as held for sale. Impairment loss recognized by the BDOUnibank Group and the Parent Bank on non-current assets held for sale in 2011, 2010and 2009 amounted to P131, P128 and P5, respectively (see Note 14).13.05 GoodwillGoodwill represents the excess of the cost of acquisition of the Parent Bank over thefair value of the net assets acquired and branch licenses at the date of acquisition.This is significantly from the acquisition of BDO Card Corporation, United OverseasBank Philippines (UOBP), American Express Bank, Ltd. and GE Money Bank(see Note 26.02), which were acquired in 2005, 2006, 2007 and 2009, respectively. TheBDO Unibank Group and the Parent Bank recognized impairment loss of P150, P271and P171 in 2011, 2010 and 2009, respectively (see Note 14).13.06 OthersAmortization expense on computer software licenses amounted to P373, P170, andP125 in 2011, 2010 and 2009, respectively, in the BDO Unibank Group financialstatements and P371, P173, and P134 in 2011, 2010 and 2009, respectively, in theParent Bank financial statements. These are included as part of Miscellaneous underOther Operating Expenses account in the statements of income (see Note 22).Depreciation expense on certain assets amounting to P35, P11 and P11 in 2011,2010 and 2009, respectively, in the BDO Unibank Group financial statements, and arepresented as part of Occupancy under Other Operating Expenses account in thestatements of income (see Note 22).