Page 86 - Annual Report English 2018

Tycoons Worldwide Group (Thailand) Plc.

The Company recognise deferred tax liabilities for all taxable temporary differences

while they recognise deferred tax assets for all deductible temporary differences and
tax losses carried forward to the extent that it is probable that future taxable profit will
be available against which such deductible temporary differences and tax losses
carried forward can be utilised.

At each reporting date, the Company review and reduce the carrying amount of
deferred tax assets to the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the deferred tax asset to be utilised.

The Company record deferred tax directly to shareholders' equity if the tax relates to

items that are recorded directly to shareholders' equity.
4.14 Forward exchange contracts

Receivables and payables arising from forward exchange contracts are translated into

Baht at the rates of exchange ruling at the end of reporting period. Unrecognised gains
and losses from the translation are included in determining income.
4.15 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a

liability in an orderly transaction between buyer and seller (market participants) at the
measurement date. The Company apply a quoted market price in an active market to
measure their assets and liabilities that are required to be measured at fair value by
relevant financial reporting standards. Except in case of no active market of an
identical asset or liability or when a quoted market price is not available, the Company
measure fair value using valuation technique that are appropriate in the circumstances

and maximises the use of relevant observable inputs related to assets and liabilities
that are required to be measured at fair value.

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised within the fair value hierarchy into three levels based on
categorise of input to be used in fair value measurement as follows:

Level 1 - Use of quoted market prices in an observable active market for such
assets or liabilities

Level 2 - Use of other observable inputs for such assets or liabilities, whether
directly or indirectly

Level 3 - Use of unobservable inputs such as estimates of future cash flows

At the end of each reporting period, the Company determine whether transfers have
occurred between levels within the fair value hierarchy for assets and liabilities held at
the end of the reporting period that are measured at fair value on a recurring basis.

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