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Tycoons Worldwide Group (Thailand) Plc.

Impairment of financial assets

The Group recognises an allowance for expected credit losses (“ ECLs”) for all debt
instruments not held at FVTPL. ECLs are based on the difference between the contractual
cash flows due in accordance with the contract and all the cash flows that the Group expects
to receive, discounted at an approximation of the original effective interest rate.

For credit exposures for which there has not been a significant increase in credit risk since

initial recognition, ECLs are provided for credit losses that result from default events that are
possible within the next 12-months (a 12-month ECL). For those credit exposures for which
there has been a significant increase in credit risk since initial recognition, a loss allowance
is required for credit losses expected over the remaining life of the exposure (a lifetime ECL).

The Group considers a significant increase in credit risk to have occurred when contractual

payments are more than 30 days past due and considers a financial asset as credit impaired
or default when contractual payments are 90 days past due. However, in certain cases, the
Group may also consider a financial asset to have a significant increase in credit risk and to
be in default using other internal or external information, such as credit rating of issuers.

For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore,
the Group does not track changes in credit risk, but instead recognises a loss allowance

based on lifetime ECLs at each reporting date.
ECLs are calculated based on its historical credit loss experience and adjusted for forward-

looking factors specific to the debtors and the economic environment.

A financial asset is written off when there is no reasonable expectation of recovering the
contractual cash flows.

4.14 Derivatives

The Group uses derivatives which are forward currency contracts to hedge its foreign currency
risks.

Derivatives are initially recognised at fair value on the date on which a derivative contract is
entered into and are subsequently remeasured at fair value. The subsequent changes are

recognised in profit or loss. Derivatives are carried as financial assets when the fair value is
positive and as financial liabilities when the fair value is negative.

Derivatives are presented as non-current assets or non-current liabilities if the remaining
maturity of the instrument is more than 12 months and it is not due to be realised or settled
within 12 months. Other derivatives are presented as current assets or current liabilities.

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