Annual report 2009-OK.qxp - Canadia Bank Plc.

Canadia Bank Plc.10. COMPUTER SOFTWARESoftware Work in progress TotalUS$ US$ US$Year ended 31 December 2009CostAt beginning of year 1,722,196 - 1,722,196Addition 222,300 - 222,300At end of year 1,944,496 - 1,944,496Accumulated amortisationAt beginning of year 591,845 - 591,845Amortisation 637,823 - 637,823At end of year 1,229,668 - 1,229,668Net book value 714,828 - 714,828Million Riel equivalent (Note 2.1) 2,980 - 2,980Annual Report 200948Year ended 31 December 2008CostAt beginning of year 591,878 1,055,625 1,647,503Additions 73,443 1,250 74,693Transfer from Work-in-progress 1,056,875 (1,056,875) -At end of year 1,722,196 - 1,722,196Accumulated amortisationAt beginning of year 475,228 - 475,228Amortisation 116,617 - 116,617At end of year 591,845 - 591,845Net book value 1,130,351 - 1,130,351Million Riel equivalent (Note 2.1) 4,613 - 4,61311. PROPERTY FORECLOSEDProperties foreclosed are assets obtained by taking possession of collateral held as security for loans whichare in default.These assets are not held for operational purposes and will be disposed of to recover the outstandingamount within the maximum allowable period of twelve months based on the guidelines issuedby the NBC.On 22 December 2008, the Bank foreclosed a piece of land with fair value of US$2.10 million.On 19 December 2009, the Bank entered into an agreement to sell the foreclosed property for US$2.09million payable in two installments, 20% upon sale and 80% after nine months from the date of sale. On 21December 2009, the Bank received the 20% payment amounting to US$0.42 million while theremaining 80% was recognised as "Sales contract receivable" under "Other assets" in the balance sheet.The loss on sale amounting to US$0.01 million was included in "Others" under "General and administrativeexpenses" in the income statement (see Note 24).