2011 Annual Report - BDO

NOTES TOFINANCIAL STATEMENTSAt December 31, 2011Fair Value LossFair Value GainRecognized in P&L Recognized in EquityCarrying Had The Investments Had The InvestmentsAmount Fair alue V Been Not Reclassified Been Not ReclassifiedCredit linked notes P - P - ( P 5,554,121 ) P -At December 31, 2010Fair Value GainFair Value GainRecognized in P&L Recognized in EquityCarrying Had The Investments Had The InvestmentsAmount Fair Value Been Not Reclassified Been Not ReclassifiedCredit linked notes 1 P 877,984,580 P 872,810,101 P 3,651,697 P 24,952,6281 Carrying amount and fair value include a top-up payment made after reclassification date amounting to US$5.0 million.Portion of net fair value gain (loss) in equity amortized amounted to (P203,465) in 2011 andP15,790,900 in 2010.6.03 Reclassification of AFS to HTMOn August 29, 2008, the Bank reclassified government securities with carrying value andunrealized fair value losses amounting to P3,065,470,096 and P56,425,024, respectively, toheld-to-maturity investments (see Note 7).The estimated amount of cash flows the Bank expects to recover from these securities as ofthe date of reclassification amounted to P3,989,430,404 with annual effective interest ratesranging from 6.2% to 7.2%.Presented below is the analysis of the fair value of the financial assets reclassified from AFS toHTM and the impact to equity had the Bank not made the reclassification in 2008.2011 2010Fair value P 2,025,392,481 P 2,156,698,830Book value 1,852,896,986 1,936,311,418Fair value gain recognizedin equity had the investmentsbeen not reclassified P 172,495,495 P 220,387,412Portion of fair value loss in comprehensive income amortized amounted to P8,985,558 and