Annual report 2008-OK-B-up.qxp - Canadia Bank Plc.

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