2011 Annual Report - BDO

NOTES TOFINANCIAL STATEMENTSOn November 25, 2010, the BIR issued RR No. 15-2010, which requires certain informationon taxes, duties and license fees paid or accrued during the taxable year to be disclosed as partof the notes to financial statements.The supplementary information is, however, not a required part of the basic financialstatements prepared in accordance with financial reporting standards in the Philippinesfor banks; it is neither a required disclosure under the Philippine Securities and ExchangeCommission rules and regulations covering form and content of financial statements underSecurities Regulation Code Rule 68.The Bank presented this tax information required by the BIR as a supplementary schedule filedseparately from the basic financial statements.22. TRUST OPERATIONSAs of December 31, 2011 and 2010, the following securities and other properties held by theBank in fiduciary or agency capacity (for a fee amounting to P67.4 million and P46.7 million,respectively, presented as part of Service charges, fees and commissions in the statements ofincome) for its customers are not included in the accompanying statements of financial positionsince these are not resources of the Bank:2011 2010Cash P 1,899,553,264 P 34,108,319,861Investments 104,385,985,114 66,029,808,945Real estate 1,454,678,972 901,964,290Others 1,322,474,598 1,271,926,338P 109,062,691,948 P 102,312,019,434The trust operations of the Bank relate mainly to resources under custodianship or safekeeping.Certain government bonds owned by the Bank are deposited with the BSP, as mentioned inNote 7.23. ASSETS UNDER MANAGEMENTThe Bank manages certain investments in special deposit accounts, debt securities, equitysecurities and other assets on behalf of its clients. Some of these assets under management(AUM) are included in the financial statements as an asset or liability of the Bank, whereas theremainder are accounts held in trust or held for safekeeping for the Bank’s clients and have beenexcluded from the accompanying statements of financial position.