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

1.02 Approval of Financial Statements- 2 -The financial statements of the BDO Unibank Group and the Parent Bank for the yearended December 31, 2011 (with comparatives for the years ended December 31, 2010and 2009) were approved and authorized for issue by the Board of Directors (BOD) onFebruary 25, 2012.2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe significant accounting policies that have been used in the preparation of thesefinancial statements are summarized in the succeeding pages. The policies have beenconsistently applied to all the years presented, unless otherwise stated.2.01 Basis of Preparation of Consolidated Financial Statements(a) Statement of Compliance with Financial Reporting Standards in the Philippines for BanksThe consolidated financial statements of BDO Unibank Group and the financialstatements of the Parent Bank have been prepared in accordance with the FinancialReporting Standards in the Philippines (FRSP) for banks. FRSP and PhilippineFinancial Reporting Standards (PFRS) are similar except for the reclassification ofthe embedded derivatives in credit-linked notes (CLNs) that are linked to Republicof the Philippines (ROP) bonds from fair value through profit or loss (FVTPL) tounquoted debt securities classified as loans or UDSCL (included as part of Loansand Other Receivables), that are outstanding as of the effective date ofreclassification, which is permitted by the BSP for prudential reporting, and by theSEC for financial reporting.PFRSs are adopted by the Financial Reporting Standards Council (FRSC) from thepronouncements issued by the International Accounting Standards Board.The financial statements have been prepared using the measurement bases specifiedby PFRS for each type of assets, liabilities, income and expense. The measurementbases are more fully described in the accounting policies that follow.The reconciliations and explanatory notes in the succeeding pages thereto describethe difference on the statements of financial position under FRSP and PFRS.