Page 86 - Annual report eng 2019

Tycoons Worldwide Group (Thailand) Plc.

At each reporting date, the Company review and reduce the carrying amount of deferred tax
assets to the extent that it is no longer probable that sufficient taxable profit will be available to

allow all or part of the deferred tax asset to be utilised.

The Company record deferred tax directly to shareholders' equity if the tax relates to items that
are recorded directly to shareholders' equity.

4.14 Forward exchange contracts

Receivables and payables arising from forward exchange contracts are translated into Baht at the

rates of exchange ruling at the end of reporting period. Unrecognised gains and losses from the
translation are included in determining income.

4.15 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an

orderly transaction between buyer and seller (market participants) at the measurement date.
The Company apply a quoted market price in an active market to measure their assets and
liabilities that are required to be measured at fair value by relevant financial reporting standards.

Except in case of no active market of an identical asset or liability or when a quoted market price
is not available, the Company measure fair value using valuation technique that are appropriate
in the circumstances and maximises the use of relevant observable inputs related to assets and

liabilities that are required to be measured at fair value.

All assets and liabilities for which fair value is measured or disclosed in the financial statements
are categorised within the fair value hierarchy into three levels based on categorise of input to

be used in fair value measurement as follows:

Level 1 - Use of quoted market prices in an observable active market for such assets or
liabilities

Level 2 - Use of other observable inputs for such assets or liabilities, whether directly or

indirectly

Level 3 - Use of unobservable inputs such as estimates of future cash flows

At the end of each reporting period, the Company determine whether transfers have occurred
between levels within the fair value hierarchy for assets and liabilities held at the end of the

reporting period that are measured at fair value on a recurring basis.

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