2004 - Asianbanks.net

5. Property and EquipmentThe composition of and movements in this account in 2004 follow:GroupAt AppraisedValueAt CostFurniture,Land BuildingsLeaseholdImprovements - netFixtures andEquipmentTotal(In Thousands)Cost/Appraised ValueBalance, January 1, 2004 P=5,373,121 P=6,511,442 P=526,360 P=7,837,063 P=14,874,865Additions 60,682 155,337 74,314 2,249,124 2,478,775Disposals (100,479) (270,227) (151,898) (415,710) (837,835)Balance, December 31, 2004 5,333,324 6,396,552 448,776 9,670,477 16,515,805Accumulated Depreciation and AmortizationBalance, January 1, 2004 – 1,265,255 – 5,390,491 6,655,746Depreciation and amortization – 197,519 119,318 895,555 1,212,392Disposal – 40,943 (7,640) 583,715 617,018Balance, December 31, 2004 – 1,503,717 111,678 6,869,761 8,485,156Net Book Value, December 31, 2004 P=5,333,324 P=4,892,835 P=337,098 P=2,800,716 P=8,030,649Net Book Value, December 31, 2003 P=5,373,121 P=5,246,187 P=526,360 P=2,446,572 P=8,219,119Parent CompanyAt AppraisedValueAt CostFurniture,Land BuildingsLeaseholdImprovementsFixtures andEquipmentTotal(In Thousands)Cost/Appraised ValueBalance, January 1, 2004 P=5,238,711 P=6,401,944 P=464,954 P=6,157,467 P=13,024,365Additions 33,995 155,337 71,179 1,762,643 1,989,159Disposal (73,358) (57,728) (42,582) (293,250) (393,560)Balance, December 31, 2004 5,199,348 6,499,553 493,551 7,626,860 14,619,964Accumulated Depreciation and AmortizationBalance, January 1, 2004 – 1,112,869 – 4,287,225 5,400,094Depreciation and amortization – 170,047 108,088 674,010 952,145Disposal – 48,776 (7,640) 804,674 845,810Balance, December 31, 2004 – 1,331,692 100,448 5,765,909 7,198,049Net Book Value, December 31, 2004 P=5,199,348 P=5,167,861 P=393,103 P=1,860,951 P=7,421,915Net Book Value, December 31, 2003 P=5,238,711 P=5,289,075 P=464,954 P=1,870,242 P=7,624,271Effective January 1, 2002, the Group carries its land used for its banking premises at appraised value. The Grouphad such land reappraised in 2002 and 2004, in accordance with Philippine GAAP. The additional appraisalincrement resulting from this accounting change resulted in an increase in Property and Equipment by P=300.7 million(including Revaluation Increment in Land of ECN and ESB amounting to P=14.6 million and P=6.6 million, respectively)and an increase in Revaluation Increment in Property amounting to P=292.5 million (shown as part of capital funds).The cost of land of the Parent Company, ECN and ESB amounts to P=3.3 billion, P=76.1 million and P=9.0 million,respectively. In addition, the Group opted to revert to cost (from appraisal value) method of accounting for buildings.Such accounting change decreased Property and Equipment and Revaluation Increment by P=263.2 million. Thisaccounting change also resulted to a reduction in depreciation (relating to appraisal increment) by P=46.9 million in2002 and the reversal of P=111.2 million in depreciation in prior years relating to the appraisal increment. Thereversal of depreciation on appraisal increment in prior years was applied retroactively.- 58-