Page 84 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

Leases of equipment which do not transfer substantially all the risks and rewards of ownership
are classified as operating leases. Operating lease payments are recognised as an expense in

profit or loss on a straight line basis over the lease term.

4.9 Foreign currencies

The consolidated and separate financial statements are presented in Baht, which is also the
Company’s functional currency. Items of each entity included in the consolidated financial
statements are measured using the functional currency of that entity.

Transactions in foreign currency are translated into Baht at the exchange rate ruling at the date of
the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into
Baht at the exchange rate ruling at the end of reporting period.

Gains and losses on exchange are included in determining income.
4.10 Impairment of assets

At the end of reporting period, the Company performs impairment reviews in respect of the

property, plant and equipment and other intangible assets whenever events or changes in
circumstances indicate that an asset may be impaired. An impairment loss is recognised when
the recoverable amount of an asset, which is the higher of the asset’s fair value less costs to
sell and its value in use, is less than the carrying amount. In determining value in use, the

estimated future cash flows are discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the
asset. In determining fair value less costs to sell, an appropriate valuation model is used. These
calculations are corroborated by a valuation model that, based on information available, reflects

the amount that the Company could obtain from the disposal of the asset in an arm’s length
transaction between knowledgeable, willing parties, after deducting the costs of disposal.

An impairment loss is recognised in profit or loss.

4.11 Employee benefits
Short-term employee benefits

Salaries, wages, bonuses and contributions to the social security fund are recognised as

expenses when incurred.

Post-employment benefits

Defined contribution plans

The Company and its employees have jointly established a provident fund. The fund is monthly
contributed by employees and by the Company. The fund’s assets are held in a separate trust fund

and the Company’s contributions are recognised as expenses when incurred.

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