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Tycoons Worldwide Group (Thailand) Plc.

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.

The Group recognises 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 Group reviews and reduces 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 Group records deferred tax directly to shareholders' equity if the tax relates to items that
are recorded directly to shareholders' equity.

4.13 Financial instruments

The Group initially measures financial assets at its fair value plus, in the case of financial

assets that are not measured at fair value through profit or loss, transaction costs. However,
trade receivables, that do not contain a significant financing component are measured at the
transaction price as disclosed in the accounting policy relating to revenue recognition.

Classification and measurement of financial assets

Financial assets are classified, at initial recognition, as to be subsequently measured at
amortised cost, fair value through other comprehensive income (“FVOCI”), or fair value
through profit or loss (“FVTPL”). The classification of financial assets at initial recognition is

driven by the Group’s business model for managing the financial assets and the contractual
cash flows characteristics of the financial assets.

Financial assets at amortised cost

The Group measures financial assets at amortised cost if the financial asset is held in order
to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

Financial assets at amortised cost are subsequently measured using the effective interest

rate (“EIR”) method and are subject to impairment. Gains and losses are recognised in profit
or loss when the asset is derecognised, modified or impaired.

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