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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32<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)<br />
2.1 Basis of preparation (continued)<br />
The significant inter-account transactions between the <strong>Bank</strong> and its branches in Cambodia have been<br />
eliminated.<br />
The preparation of financial statements in accordance with CAS requires the use of estimates and<br />
assumptions that affect the <strong>report</strong>ed amounts of assets and liabilities and disclosure of contingent assets<br />
and liabilities at the date of financial statements and the <strong>report</strong>ed amounts of revenues and expenses<br />
during the <strong>report</strong>ing period. Although these estimates are based on management's best knowledge of<br />
current event and actions, actual results ultimately may differ from those estimates. The areas involving a<br />
higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the<br />
financial statements are disclosed in note 3.<br />
For the sole regulatory purpose of complying with the Prakas No. B7-07-164 dated 13 December 2007 of<br />
the Central <strong>Bank</strong>, a translation to Khmer Riel ("Riel") is provided for the balance sheet, the income<br />
statement, the statement of changes in equity, the cash flow statement and the notes to the financial<br />
statements as of and for the year ended 31 December <strong>2008</strong> using the official rate of exchange regulated<br />
by the Central <strong>Bank</strong> as at the <strong>report</strong>ing date, which was US$1 to Riel 4,081 (31 December 2007: US$1 to Riel<br />
4,003). Such translation amounts are unaudited and should not be construed as representations that the<br />
US$ amounts represent, or have been or could be, converted into Khmer Riel at that or any other rate.<br />
2.2 New accounting standards and interpretations<br />
CFRS 7, Financial Instruments: Disclosures, and a complementary amendment to CAS 1, Presentation of<br />
Financial Statements - Capital Disclosures (effective from 1 January <strong>2008</strong>). CFRS 7 introduces new<br />
disclosures to improve the information about financial instruments. It requires the disclosure of<br />
qualitative and quantitative information about exposure to risks arising from financial instruments,<br />
including specified minimum disclosures about credit risk, liquidity risk and market risk, including<br />
sensitivity analysis to market risk. It replaces CAS 30, Disclosures in the Financial Statements of <strong>Bank</strong>s and<br />
Similar Financial Institutions. It is applicable to all entities that <strong>report</strong> under CAS and CFRS. The<br />
amendment to CAS 1 introduces disclosures about the level of an entity's capital and how it manages<br />
capital. Management assessed the impact of CFRS 7 and the amendment to CAS 1 and concluded that the<br />
main additional disclosures will be the sensitivity analysis to market risk and the capital disclosures<br />
required by the amendment of CAS 1. Management applies CFRS 7 and the amendment to CAS 1 from<br />
annual periods beginning 1 January <strong>2008</strong>.<br />
The following standards and revision to existing standards (which are effective 1 January <strong>2008</strong>) did not<br />
result in substantial changes to the <strong>Bank</strong>'s accounting policies. In summary:<br />
CAS 7, Cash flow statement<br />
CAS 8, Accounting policies, changes in accounting estimates and errors<br />
CAS 10, Events after the balance sheet date<br />
CAS 12, Income taxes<br />
CAS 16, Property, plant and equipment<br />
CAS 17, Leases<br />
CAS 18, Revenue<br />
CAS 21, The effect of changes in foreign exchange rates<br />
CAS 23, Borrowed costs<br />
CAS 24, Related party disclosures<br />
CAS 37, Provision, contingent assets and contingent liabilities<br />
CAS 38, Intangible assets<br />
CAS 40, Investment property<br />
<strong>Annual</strong> Report <strong>2008</strong>