Page 82 - Annual Report English 2018

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

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

c) Investments in subsidiary and associate are 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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