Page 84 - Annual Report English 2018

Tycoons Worldwide Group (Thailand) Plc.

Leases of equipment which do not transfer substantially all the risks and rewards of

ownership are classified as operating leases. Operating lease payments are recognised
as an expense in profit or loss on a straight line basis over the lease term.

4.9 Foreign currencies

The consolidated and separate financial statements are presented in Baht, which is also
the Company’s functional currency. Items of each entity included in the consolidated
financial statements are measured using the functional currency of that entity.

Transactions in foreign currency are translated into Baht at the exchange rate ruling at the

date of the transaction. Monetary assets and liabilities denominated in foreign currencies
are translated into Baht at the exchange rate ruling at the end of reporting period.

Gains and losses on exchange are included in determining income.

4.10 Impairment of assets

At the end of reporting period, the Company performs impairment reviews in respect of
the property, plant and equipment and other intangible assets whenever events or
changes in circumstances indicate that an asset may be impaired. An impairment loss
is recognised when the recoverable amount of an asset, which is the higher of the

asset’s fair value less costs to sell and its value in use, is less than the carrying
amount. In determining value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. In

determining fair value less costs to sell, an appropriate valuation model is used. These
calculations are corroborated by a valuation model that, based on information
available, reflects the amount that the Company could obtain from the disposal of the
asset in an arm’s length transaction between knowledgeable, willing parties, after
deducting the costs of disposal.

An impairment loss is recognised in profit or loss.

4.11 Employee benefits

Short-term employee benefits

Salaries, wages, bonuses and contributions to the social security fund are recognised
as expenses when incurred.

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