2011 Annual Report - BDO

NOTES TOFINANCIAL STATEMENTS18. OTHER EXPENSESThis account is composed of the following:2011 2010Advertising P 12,586,306 P 11,175,425Security, messengerial andjanitorial services 11,050,782 13,629,759Custodianship fees 10,082,382 8,436,643Repairs and maintenance 10,072,543 11,997,690Transfer fees and charges 7,327,342 7,544,576Stationery and supplies 5,703,100 5,513,555Communication 5,414,705 5,722,541Contractual services 3,882,494 1,355,011Courier services 1,666,175 1,826,347Fines, penalties and other charges 625,000 424,800Miscellaneous 2,979,762 2,379,310P 71,390,591 P 70,005,65719. EMPLOYEE BENEFITS19.01 Salaries and Employee BenefitsThe total expense recognized by the Bank for employee benefits is broken down below.2011 2010Salaries and wages 201,253,563 P 179,994,876Pension – defined benefit plans 24,532,042 22,269,297Social security and medical benefits 4,714,662 4,553,226Others 1,140,743 469,09819.02 Post-employment Defined BenefitP 231,641,010 P 207,286,497The Bank maintains a tax-qualified, non-contributory retirement plan covering all regular fulltimeemployees. The plan is being administered by a trustee.The Bank obtained an updated actuarial valuation as of December 31, 2011 and 2010 toascertain the amount of retirement benefit cost and the balance of the defined benefit asset(obligation) as of that date in accordance with PAS 19, Employee Benefits. Actuarial valuationsare obtained regularly to update the retirement benefit costs and the amount of contributions.