Page 85 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

Defined benefit plans

The Company has obligations in respect of the severance payments it must make to employees
upon retirement under labor law. The Company treats these severance payment obligations as a
defined benefit plan.

The obligation under the defined benefit plan is determined by a professionally qualified
independent actuary based on actuarial techniques, using the projected unit credit method.

Actuarial gains and losses arising from post-employment benefits are recognised immediately in
other comprehensive income.

Past service costs are recognized in profit or loss on the earlier of the date of the plan
amendment or curtailment and the date that the Company recognizes restructuring-related

costs.

4.12 Provisions

Provisions are recognised when the Company has a present obligation as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required

to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

4.13 Income tax

Income tax expense represents the sum of corporate income tax currently payable and deferred
tax.

Current tax

Current income tax is provided in the accounts at the amount expected to be paid to the taxation
authorities, based on taxable profits determined in accordance with tax legislation.

Deferred tax

Deferred income tax is provided on temporary differences between the tax bases of assets and
liabilities and their carrying amounts at the end of each reporting period, using the tax rates

enacted at the end of the reporting period.

The Company recognise deferred tax liabilities for all taxable temporary differences while they
recognise deferred tax assets for all deductible temporary differences and tax losses carried

forward to the extent that it is probable that future taxable profit will be available against which
such deductible temporary differences and tax losses carried forward can be utilised.

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