Page 83 - Annual Report English 2018

Tycoons Worldwide Group (Thailand) Plc.

4.6 Property, plant and equipment/Depreciation

Land is stated at cost. Buildings and equipment are stated at cost amount less

accumulated depreciation and allowance for loss on impairment of assets.
Depreciation of plant and equipment is calculated by reference to their costs on the

straight-line basis over the following estimated useful lives, except for machinery and
equipment for main production, which are depreciated based on estimated units of
production:

Land improvement - 30 years straight-line
Building and attached facilities - 5 - 30 years straight-line
Motor vehicles - 5 - 10 years straight-line
Furniture and office equipment - 3 - 10 years straight-line

Minor machinery and equipment for production - 5 - 20 years straight-line
Main machinery and equipment for production - Estimated units of production at
a total of 0.02-7.02 million tons

Depreciation is included in determining income.

No depreciation is provided on land and assets under installation and construction.

An item of property, plant and equipment is derecognised upon disposal or when no future
economic benefits are expected from its use or disposal. Any gain or loss arising on
disposal of an asset is included in profit or loss when the asset is derecognised.

4.7 Related party transactions

Related parties comprise enterprises and individuals that control, or are controlled by, the
Company, whether directly or indirectly, or which are under common control with the
Company.

They also include associated companies and individuals which directly or indirectly own a
voting interest in the Company that gives them significant influence over the Company,
key management personnel, directors and officers with authority in the planning and

direction of the Company’s operations.
4.8 Long-term leases

Leases of equipment which transfer substantially all the risks and rewards of ownership
are classified as finance leases. Finance leases are capitalised at the lower of the fair

value of the leased assets and the present value of the minimum lease payments. The
outstanding rental obligations, net of finance charges, are included in long-term payables,
while the interest element is charged to profit or loss over the lease period. The
equipment acquired under finance leases is depreciated over the shorter of the useful life
of the asset and the lease period.

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