Page 85 - Annual Report English 2018

Tycoons Worldwide Group (Thailand) Plc.

Post-employment benefits

Defined contribution plans
The Company and its employees have jointly established a provident fund. The fund is

monthly contributed by employees and by the Company. The fund’s assets are held in a
separate trust fund and the Company’s contributions are recognised as expenses when
incurred.

Defined benefit plans

The Company has obligations in respect of the severance payments it must make to
employees upon retirement under labor law. The Company treats these severance

payment obligations as a defined benefit plan.
The obligation under the defined benefit plan is determined by a professionally qualified

independent actuary based on actuarial techniques, using the projected unit credit
method.

Actuarial gains and losses arising from post-employment benefits are recognised
immediately in other comprehensive income.

4.12 Provisions

Provisions are recognised when the Company has a present obligation as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation, and a reliable estimate can be made of the amount

of the obligation.

4.13 Income tax

Income tax expense represents the sum of corporate income tax currently payable and
deferred tax.

Current tax

Current income tax is provided in the accounts at the amount expected to be paid to
the taxation authorities, based on taxable profits determined in accordance with tax
legislation.

Deferred tax

Deferred income tax is provided on temporary differences between the tax bases of
assets and liabilities and their carrying amounts at the end of each reporting period,

using the tax rates enacted at the end of the reporting period.

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