2009 ANNUAL REPORT FINANCIAL SUPPLEMENTS - BDO

More documents

Recommendations

Info

NOTES TO FINANCIAL STATEMENTSDecember 31, 2009, 2008 and 2007(Amounts in Millions of Philippine Pesos, Except Per Share Data or as Indicated)2.13 Intangible AssetsGoodwill represents the excess of the cost of acquisition over the fair value of the net assets acquired and branchlicenses at the date of acquisition. Goodwill is classified as intangible asset with indefinite useful life, and thus,not subject to amortization but to an annual test for impairment (see Note 2.22). Goodwill is subsequentlycarried at cost less any accumulated impairment losses.Goodwill is allocated to cash-generating units for the purpose of impairment testing. Each of those cashgenerating units is represented by each primary reporting segment.Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and installthe specific software. These costs are amortized on straight-line basis over the expected useful life of five years.Costs associated with maintaining computer software are expensed as incurred.2.14 Financial LiabilitiesBDO ANNUAL REPORT 200932Financial liabilities of the BDO Unibank Group include deposit liabilities, bills payable, derivative liabilities,subordinated notes payable and other liabilities.Financial liabilities are recognized when the Group becomes a party to the contractual agreements of theinstrument.Deposit liabilities and other liabilities are recognized initially at fair value and subsequently measured atamortized cost less settlement payments.Bills payable and subordinated notes payable, except for government financial assistance are recognized initiallyat fair value, which is the issue proceeds (fair value of consideration received), net of direct issue costs. Billspayable and subordinated notes payable are subsequently measured at amortized cost; any difference betweenproceeds, net of transaction costs, and the redemption value is recognized in profit or loss over the period of theborrowings using the effective interest method.Preferred shares, which carry a mandatory coupon or are redeemable on a specific date or at the option of theshareholder are classified as financial liabilities and are presented as part of Bills Payable in the statement offinancial position. The dividends on these preferred shares are recognized in profit or loss as interest expense onan amortized cost basis using the effective interest method.The fair value of the liability portion of a convertible bond is determined using a market interest rate foran equivalent non-convertible bond. This amount is recorded as a liability on an amortized cost basis untilextinguished on conversion or maturity of the bond. The remainder of the proceeds is allocated to the conversionoption. This is recognized and included in equity, net of income tax effects.Derivative liabilities are recognized initially and subsequently measured at fair value with changes in fair valuerecognized in profit or loss.Dividend distributions to shareholders are recognized as financial liabilities when the dividends are approved bythe BSP.Financial assistance from Philippine Deposit Insurance Corporation (PDIC), arising from the acquisition ofFirst e-Bank in 2002, is accounted for under PAS 20, Accounting for Government Grants, whereby the loanreceived is initially recorded at the amount borrowed with no re-measurement to fair value or imputation ofmarket interest.
NOTES TO FINANCIAL STATEMENTSDecember 31, 2009, 2008 and 2007(Amounts in Millions of Philippine Pesos, Except Per Share Data or as Indicated)Financial liabilities are derecognized in the statement of financial position only when the obligations areextinguished either through discharge, cancellation or expiration.2.15 Offsetting Financial InstrumentsFinancial assets and liabilities are offset and the net amount is reported in the statement of financial positionwhen there is a legally enforceable right to offset the recognized amounts and there is an intention to settle ona net basis or realize the asset and settle the liability simultaneously.2.16 Terminal Value of Leased Assets and Deposits on Finance LeaseThe residual value of leased assets, which approximates the amount of guaranty deposit paid by the lessee at theinception of the lease, is the estimated proceeds from the disposal of the leased asset at the end of the lease term.At the end of the lease term, the residual value of the leased asset is generally applied against the guaranty depositof the lessee.2.17 EquityCapital stock is determined using the nominal value of shares that have been issued.Common stock option pertains to the value of the segregated equity component of the convertible loan asrequired under PAS 32, Financial Instruments: Presentation and the cumulative amount of stock option arisingfrom the stock option plan granted by BDO Unibank Group to its qualified officers.Treasury shares include the cost of BDO Unibank Group’s shares of stock which were acquired by a subsidiary.The treasury shares were disposed of in 2007.BDO ANNUAL REPORT 200933Additional paid-in capital includes any premiums received on the issuance of capital stock. Any transactioncosts associated with the issuance of shares are deducted from additional paid-in capital.Surplus reserves pertain to a portion of BDO Unibank Group’s income from trust operations set-up on ayearly basis in compliance with BSP regulations. Surplus reserves also consist of reserve for contingencies andself-insurance.Surplus free includes all current and prior period results as disclosed in profit or loss and which are available andnot restricted for use by BDO Unibank Group.Net unrealized fair value gain (loss) on available-for-sale securities pertain to cumulative mark-to-marketvaluation of AFS financial assets.Revaluation increment consists of gains arising from the revaluation of land.Accumulated translation adjustment pertains to exchange differences arising on translation of the assets andliabilities of foreign subsidiaries and overseas branch that are taken to other comprehensive income.Non-controlling interests represent the portion of the net assets and profit or loss not attributable to BDOUnibank Group and are presented separately in the BDO Unibank Group statement of income and withinequity in BDO Unibank Group statement of financial position and changes in equity.
Page 3 and 4: FINANCIAL HIGHLIGHTSIn Billion Peso
Page 5 and 6: REPORT OF INDEPENDENT AUDITORSTo th
Page 7 and 8: STATEMENTS OF INCOMEFor the Years E
Page 9 and 10: STATEMENTS OF CHANGES IN EQUITYFor
Page 11 and 12: STATEMENTS OF CASH FLOWSFor the Yea
Page 13 and 14: NOTES TO FINANCIAL STATEMENTSDecemb
Page 23: NOTES TO FINANCIAL STATEMENTSDecemb
Page 85 and 86:
NOTES TO FINANCIAL STATEMENTSDecemb
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 135 and 136:
COMPANY HEADQUARTERSBanco De Oro Un
show all

2009 ANNUAL REPORT FINANCIAL SUPPLEMENTS - BDO

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?