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Tycoons Worldwide Group (Thailand) Plc.

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 Group applies 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 Group measures 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 Group determines 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.
5. Significant accounting judgements and estimates

The preparation of financial statements in conformity with financial reporting standards at

times requires management to make subjective judgements and estimates regarding matters
that are inherently uncertain. These judgements and estimates affect reported amounts and
disclosures; and actual results could differ from these estimates. Significant judgements and
estimates are as follows.

Consolidation of subsidiary that the Company holds less than half of shares

The Company's management determined that the Company has control over K D B Company
Limited, even though the Company holds less than half of the shares and voting rights. This

is because the Company and its directors are the major shareholders and have ability to
direct the significant activities of K D B Company Limited. Therefore, K D B Company Limited
is deemed to be a subsidiary of the Company and has to be included in the consolidated
financial statements from the date on which the Company assumed control.

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