Page 81 - Annual Report English 2018

Tycoons Worldwide Group (Thailand) Plc.

(c) Financial reporting standards related to financial instruments that will

become effective for fiscal years beginning on or after 1 January 2020

During the current year, the Federation of Accounting Professions issued a set of
TFRSs related to financial instruments, which consists of five accounting standards
and interpretations, as follows:

Financial reporting standards:
TFRS 7 Financial Instruments: Disclosures

TFRS 9 Financial Instruments

Accounting standard:
TAS 32 Financial Instruments: Presentation

Financial Reporting Standard Interpretations:
TFRIC 16 Hedges of a Net Investment in a Foreign Operation
TFRIC 19 Extinguishing Financial Liabilities with Equity Instruments

These TFRSs related to financial instruments make stipulations relating to the
classification of financial instruments and their measurement at fair value or amortised

cost (taking into account the type of instrument, the characteristics of the contractual
cash flows and the Company’s business model), calculation of impairment using the
expected credit loss method, and hedge accounting. These include stipulations
regarding the presentation and disclosure of financial instruments. When the TFRSs

related to financial instruments are effective, some accounting standards,
interpretations and guidance which are currently effective will be cancelled.

The management of the Company is currently evaluating the impact of these standards
to the financial statements in the year when they are adopted.

4. Significant accounting policies

4.1 Revenue recognition

Sales of goods

Sales of goods are recognised when the significant risks and rewards of ownership of
the goods have passed to the buyer. Sales are the invoiced value, excluding value
added tax, of goods supplied after deducting discounts and allowances.

Interest income

Interest income is recognised on an accrual basis based on the effective interest rate.

71