Annual report 2008-OK-B-up.qxp - Canadia Bank Plc.
Annual report 2008-OK-B-up.qxp - Canadia Bank Plc.
Annual report 2008-OK-B-up.qxp - Canadia Bank Plc.
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NOTES TO THE FINANCIAL STATEMENTS<br />
1. BACKGROUND INFORMATION<br />
<strong>Canadia</strong> <strong>Bank</strong> <strong>Plc</strong>. was incorporated in 1991 under a joint venture between the National <strong>Bank</strong> of Cambodia<br />
("the Central <strong>Bank</strong>") and certain overseas Cambodians. On 4 February 1998, the Central <strong>Bank</strong> disposed of<br />
all its shares to private investors.<br />
In 2001, the Overseas Cambodian Investment Corporation ("OCIC"), a public limited company incorporated<br />
in the Kingdom of Cambodia, acquired 100% of the shares of the <strong>Bank</strong> and consequently became the<br />
holding company of the <strong>Bank</strong>.<br />
In 2007, OCIC conducted a corporate restructuring whereby it transferred its investment in the <strong>Bank</strong> to<br />
<strong>Canadia</strong> Investment Holding <strong>Plc</strong> ("CIHP"). The restructuring was approved by the Central <strong>Bank</strong> and the<br />
Ministry of Commerce. Consequently, CIHP is now the new holding company of the <strong>Bank</strong>.<br />
The principal activities of the <strong>Bank</strong> comprise the operations of the core banking business and the<br />
provision of related financial services through its head office and various branches in Phnom Penh and the<br />
provinces. The <strong>Bank</strong> holds a commercial banking licence which was renewed for an indefinite period on 18<br />
October 2006. There were no significant changes in the nature of these principal activities during the year.<br />
The registered office of the <strong>Bank</strong> is currently located at No. 265-269 Ang Duong Street, Phnom Penh,<br />
Kingdom of Cambodia.<br />
As at 31 December <strong>2008</strong>, the <strong>Bank</strong> has 803 employees (31 December 2007: 602).<br />
The financial statements cover only the individual entity of <strong>Canadia</strong> <strong>Bank</strong> <strong>Plc</strong>.<br />
The financial statements were authorised for issue by the Board of Directors on 31 Mach 2009. The Board<br />
of Directors has the power to amend and reissue the financial statements.<br />
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES<br />
The significant accounting policies adopted in the preparation of these financial statements are set out<br />
below. These policies have been consistently applied to all the years presented, unless otherwise stated.<br />
2.1 Basis of preparation<br />
The financial statements have been prepared in accordance with the guidelines issued by the Central <strong>Bank</strong><br />
and Cambodian Accounting Standards ("CAS"). In applying CAS, the <strong>Bank</strong> also applies CFRS 4: Insurance<br />
Contracts and CFRS 7: Financial Instruments: Disclosures. The accounting principles applied may differ<br />
from generally accepted accounting principles adopted in other countries and jurisdictions. The<br />
accompanying financial statements are therefore not intended to present the financial position and results<br />
of operations and cash flows in accordance with jurisdictions other than Cambodia. Consequently, these<br />
financial statements are addressed to only those who are informed about Cambodia accounting<br />
principles, procedures and practices.<br />
The financial statements are prepared using the historical cost convention.<br />
<strong>Annual</strong> Report <strong>2008</strong> 31