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

- 121 -The reconciliation of the tax on pretax profit computed at the statutory tax rates to taxexpense is shown below.BDO Unibank Group2011 2010 2009Tax on pretax profit at 30% P 3,665 P 3,154 P 2,328Adjustment for income subjected to lowerincome tax rates ( 191) ( 444) ( 633 )Tax effects of:Income exempt from tax ( 3,253) ( 3,037) ( 1,010 )Non-deductible expenses 2,208 2,439 585Deductible temporary differences not recognized ( 1,043 ) 489 51Net operating loss carryover (NOLCO)not recognized ( 114 ) ( 1,374 ) 14Tax-exempt income of FCDU - - ( 1,314)Others 358 404 1,638Tax expense reported in profit or loss P 1,630 P 1,631 P 1,659Parent Bank2011 2010 2009Tax on pretax profit at 30% P 3,046 P 2,919 P 2,286Adjustment for income subjected to lowerincome tax rates ( 133) ( 404) ( 531)Tax effects of:Deductible temporary differences not recognized ( 995) 477 1,439Income exempt from tax ( 2,966 ) ( 2,960) ( 1,015 )Non-deductible expenses 1,993 2,266 542NOLCO not recognized (applied) ( 115) ( 1,360) ( 458 )Tax-exempt income of FCDU - - ( 1,314 )Others 369 359 314Tax expense reported in profit or loss P 1,199 P 1,297 P 1,263The components of the net deferred tax assets (see Note 13) as of December 31 follow:Statements of Financial PositionBDO Unibank GroupParent Bank2011 2010 2011 2010Deferred tax assets:Allowance for impairment P 6,024 P 6,012 P 5,916 P 5,916Unamortized past service cost 577 564 576 560Lease income differential 82 74 82 74NOLCO 43 9 - -Others 13 36 - -6,739 6,695 6,574 6,550Deferred tax liabilities:Revaluation increment 480 499 477 497Lease income differential 189 180 - -Changes in fair values of AFS 63 62 - -Capitalized interest 56 58 56 58Others 466 312 455 3081,254 1,111 988 863Net Deferred Tax Assets P 5,485 P 5,584 P 5,586 P 5,687