Land Bank of the Philippines Notes to Financial Statements - December 31, 2021 and 2020

Sep 1, 2026

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Land Bank of the Philippines financial statements notes present corporate background, including ownership, establishment history, banking mandate, and the group’s scope across deposit-taking, lending, treasury, trade services, payments, cash management, trust services, and related activities. The notes summarize compliance with Philippine Financial Reporting Standards, preparation on a historical cost basis, functional currency treatment for the Regular Banking Unit and Foreign Currency Deposit Unit, consolidation principles, and accounting for the UCPB merger and acquisition including the recognition of gain on bargain purchase.

LanguageEnglish

CategoryGeneral

FormatDOCX

Pages82

Reading Time29 min

AccessFree to download

Corporate Information

Summary of Significant Accounting Policies

Statement of Compliance

Basis of Financial Statements Preparation

Basis of Consolidation

Acquisition of United Coconut Planters Bank (UCPB) as Subsidiary

Gain on Bargain Purchase

LAND BANK OF THE PHILIPPINES NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2021 AND 2020 (All amounts in Philippine Peso unless otherwise stated) Corporate Information The Land Bank of the Philippines (“LBP” or “Parent”) is a financial institution wholly-owned by the National Government. The Parent was established in 1963 as the financial intermediary of the Land Reform Program of the government. Later, it became the first universal bank by charter with expanded commercial banking powers to sustain its social mission of spurring countryside development. The Parent is a depository bank of the government and its various instrumentalities. The Parent services the requirements of the national government, local government units and government-owned and controlled corporations. As of December 31, 2021, 65 per cent of the deposit portfolio came from the government while the rest came from private depositors. The Parent and its Subsidiaries (Group) are engaged in the business of banking, financing, leasing, real estate, insurance brokering and other related services to personal, commercial, corporate and institutional clients. The Group’s products and services include deposit-taking, lending and related services, treasury and capital market operations, trade services, payments and cash management, and trust services. The Parent’s principal office of business is located at the LANDBANK Plaza, 1598 M.H. Del Pilar corner Dr. J. Quintos Streets, Malate, Manila. The accompanying comparative financial statements of the Parent were authorized for issue by the Parent’s Board of Directors on July 22, 2022 while those of the subsidiaries were approved for issue by their respective Board of Directors on various dates. Summary of Significant Accounting Policies 2.1 Statement of Compliance The consolidated financial statements of the Group and of the Parent have been prepared in compliance with the Philippine Financial Reporting Standards (PFRSs). 2.2 Basis of Financial Statements Preparation The accompanying financial statements have been prepared on a historical cost basis unless stated otherwise. The financial statements of the Parent include the accounts maintained in the Regular Banking Unit (RBU) and Foreign Currency Deposit Unit (FCDU). The financial statements individually prepared for these units are combined after eliminating inter-unit accounts. The functional currency of RBU and FCDU is Philippine Peso and United States Dollar (USD), respectively. For financial reporting purposes, FCDU accounts and foreign currency-denominated assets and liabilities in the RBU are translated in Philippine Peso based on the Bankers Association of the Philippines (BAP) closing rate prevailing at end of the year and at the BAP Weighted Average Rate for the year for income and expenses. The consolidated financial statements are presented in Philippine peso and all values are rounded to the nearest peso except when otherwise indicated. 2.3 Basis of Consolidation The consolidated financial statements include the financial statements of the Parent and the following subsidiaries: The consolidated financial statements were prepared using consistent accounting policies for like transactions and other events in similar circumstances. All significant inter-company balances and transactions have been eliminated in consolidation. Acquisition of United Coconut Planters Bank (UCPB) as Subsidiary United Coconut Planters Bank (UCPB), a universal bank incorporated in the Philippines on May 10, 1963. On May 2, 2012, a resolution was unanimously approved at a special meeting of stockholders, extending the life of the UCPB for another 50 years from and after May 10, 2013, and for this purpose, amending the UCPB’s Articles of Incorporation. On August 14, 2012, the Philippine Securities and Exchange Commission (SEC) approved the extension of the UCPB’s corporate life for another 50 years up to 2063. On 25 June 2021, President Rodrigo R. Duterte signed Executive Order No.

FAQs

What standards govern the preparation of the Land Bank of the Philippines financial statements?

The consolidated financial statements of the Group and the Parent are prepared in compliance with Philippine Financial Reporting Standards (PFRSs).

How are the Regular Banking Unit (RBU) and Foreign Currency Deposit Unit (FCDU) treated for financial reporting?

The functional currency is Philippine Peso for the RBU and USD for the FCDU; FCDU accounts and foreign-currency items in the RBU are translated into Philippine peso using BAP closing and weighted average rates.

What transaction led to the recognition of a gain on bargain purchase?

The acquisition of UCPB as a subsidiary under the approved merger involved measuring identifiable assets and liabilities and recognizing a Gain on Bargain Purchase of P11,999,456,312 when net identifiable assets exceeded the consideration transferred.

Sep 1, 2026

Upload by Jacob