Page 82 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

4.2 Cash and cash equivalents

Cash and cash equivalents consist of cash in hand and at banks, and all highly liquid
investments with an original maturity of three months or less and not subject to withdrawal

restrictions.

4.3 Trade and other receivables
Trade and other receivables are stated at the net realisable value. Allowance for doubtful

accounts is provided for the estimated losses that may be incurred in collection of receivables.

The allowance is generally based on collection experience and analysis of debt aging.

4.4 Inventories
Finished goods and work in process are valued at the lower of cost (under the weighted average

method) and net realisable value. The cost of inventories includes all production costs and

attributable factory overheads.

Raw materials, spare parts and factory supplies are valued at the lower of average cost and net
realisable value and are charged to production costs whenever consumed.

4.5 Investments

a) Investments in non-marketable equity securities, which the Company classified as other

investment, are stated at cost net of allowance for impairment loss on investment.

b) Investment in associate is accounted for in the financial statements in which equity method
is applied using the equity method.

c) Investments in associate is accounted for in the separate financial statements using the cost
method.

The weighted average method is used for computation of the cost of investments.

In the event the Company reclassifies investments from one type to another, such investments
will be readjusted to their fair value as at the reclassification date. The

difference between the carrying amount of the investments and the fair value on the date of
reclassification are recorded in profit or loss or recorded as other components of shareholders’

equity, depending on the type of investment that is reclassified.

On disposal of an investment, the difference between net disposal proceeds and the carrying
amount of the investment is recognised in profit or loss.

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