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

Canadia Bank Plc.32. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIESa) Financial instruments measured at fair valueThe Bank does not have financial instruments measured at fair value.b) Financial instruments not measured at fair valueThe table below summarises the carrying amounts and fair values of those financial assets and liabilities not presented on the Bank's balance sheet at their fair values.Carrying valueFair value2009 2008 2009 2008US$ US$ US$ US$Financial assetsBalances with the NBC 198,667,290 72,046,256 198,667,290 72,046,256Balances with other banks 81,939,255 28,785,020 81,939,255 28,785,020Loans and advances to customers 360,587,399 390,602,198 360,587,399 390,602,198Financial liabilitiesDeposits from banks 33,307,122 25,777,981 33,307,122 25,777,981Due to customers 555,042,999 436,362,009 555,042,999 436,362,009Borrowings 3,234,615 7,057,279 3,234,615 7,057,279Subordinated debt 7,080,000 7,080,000 7,080,000 7,080,000i. Balances with the NBC and other banksThe carrying amounts of balances with the NBC and other banks approximate their fair values, since theseaccounts consist mostly of current, savings and short-term deposits.73Annual Report 2009ii.Loans and advances to customersLoans and advances are stated net of allowance for loan losses as determined based on the requirementsof the relevant NBC Prakas.iii.Due to customers and deposits from banksThe fair values of due to customers and deposits from banks approximate their carrying amounts.The estimated fair value of deposits with no stated maturities, which includes non-interest earningdeposits, is the amount repayable on demand.Deposits with fixed interest are not quoted in active market and are short-term. Theirfair valueapproximates the carrying amount.iv.BorrowingsBorrowings are not quoted in active market and their fair value approximates their carrying amount.v. Subordinated debtThe estimated fair value of subordinated debt with no stated maturities is the amount repayable ondemand.