Page 80 - Annual Report English 2018

Tycoons Worldwide Group (Thailand) Plc.

(b) Financial reporting standards that will become effective for fiscal years

beginning on or after 1 January 2019

The Federation of Accounting Professions issued a number of revised and new
financial reporting standards and interpretations (revised 2018) which are effective for
fiscal years beginning on or after 1 January 2019. These financial reporting standards
were aimed at alignment with the corresponding International Financial Reporting

Standards with most of the changes directed towards clarifying accounting treatment
and providing accounting guidance for users of the standards.

The management of the Company believe that most of the revised financial reporting
standards will not have any significant impact on the financial statements when they
are initially applied. However, the new standard involves changes to key principles, as

summarised below.

TFRS 15 Revenue from Contracts with Customers
TFRS 15 supersedes the following accounting standards together with related

Interpretations.

TAS 11 (revised 2017) Construction contracts
TAS 18 (revised 2017) Revenue
TSIC 31 (revised 2017) Revenue - Barter Transactions Involving Advertising Services
TFRIC 13 (revised 2017) Customer Loyalty Programmes

TFRIC 15 (revised 2017) Agreements for the Construction of Real Estate
TFRIC 18 (revised 2017) Transfers of Assets from Customers

Entities are to apply this standard to all contracts with customers unless those
contracts fall within the scope of other standards. The standard establishes a five-step
model to account for revenue arising from contracts with customers, with revenue
being recognized at an amount that reflects the consideration to which an entity

expects to be entitled in exchange for transferring goods or services to a customer.
The standard requires entities to exercise judgement, taking into consideration all of
the relevant facts and circumstances when applying each step of the model.

The management of the Company is currently evaluating the impact of this standard to
the financial statements in the year when it is adopted.

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