2011 Annual Report - BDO

Changes in the present value of the defined benefit obligation follow:2011 2010Balance at beginning of year P 151,969,660 P 113,338,994Current service cost 14,248,726 13,144,323Interest cost 12,476,709 10,438,521Benefits paid ( 1,645,141) ( 145,335)Transfer from the plan - ( 635,486 )Actuarial gains on obligation 47,873,282 15,828,643Balance at end of year P 224,923,236 P 151,969,660Changes in the fair value of plan assets follow:2011 2010Balance at beginning of year P 75,419,292 P 41,449,652Expected return on plan assets 4,058,444 2,791,353Benefits paid ( 1,645,141) ( 145,335 )Contributions 13,144,323 28,900,164Transfer from the plan - ( 635,486 )Actuarial gains 321,633 3,058,944Balance at end of year P 91,298,551 P 75,419,292The plan assets consist mainly of debt and equity securities and deposit in banks.Actual return on plan assets amounted to P4,380,077 and P5,850,297 in 2011 and 2010,respectively.The amounts of retirement benefit obligation recognized in the statements of financialposition and presented as part of Accrued Taxes and Other Liabilities accounts, respectively,follow (see Note 14):2011 2010Present value of obligation P 224,923,236 P 151,969,660Fair value of plan assets 91,298,551 75,419,292Deficiency of plan assets 133,624,685 76,550,368Unrecognized actuarial losses 103,779,742 58,093,144P 29,844,943 P 18,457,224www.bdo.com.ph 99