Page 81 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

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 Company’s management is currently evaluating the impact of these standards on the
financial statements in the year when they are adopted.

TFRS 16 Leases

TFRS 16 supersedes TAS 17 Leases together with related Interpretations. The standard sets
out the principles for the recognition, measurement, presentation and disclosure of leases, and

requires a lessee to recognise assets and liabilities for all leases with a term of more than 12
months, unless the underlying asset is low value.

Accounting by lessors under TFRS 16 is substantially unchanged from TAS 17. Lessors will
continue to classify leases as either operating or finance leases using similar principles to those

used under TAS 17.

The Company’s management believes that adoption of this standard will not have any significant
impact on the financial statements.

4. Significant accounting policies

4.1 Revenue recognition

Sales of goods

Revenue from sale of goods is recognised at the point in time when control of the asset is
transferred to the customer, generally upon delivery of the goods. Revenue is measured at the

amount of the consideration received or receivable, excluding value added tax, of goods
supplied after deducting returns and discounts.

Interest income

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

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