Page 128 - Microsoft Word - One-Report-Eng 2024 Final.docx

Tycoons Worldwide Group (Thailand) Plc.

Reduction of inventory cost to net realisable value

In determining the reduction of inventory cost to net realisable value, the management
exercises judgement to estimate the net realisable value of inventory based on the amount
the inventories are expected to realise. These estimates take into consideration fluctuations
in their selling prices, costs and expenses directly relating to events occurring after the

reporting period. Also, the management exercises judgement and estimates the expected loss
from stock obsolescence based upon aging profile of inventories and their current condition.

Fair value of financial instruments

In determining the fair value of financial instruments recognised in the statement of financial
position that are not actively traded and for which quoted market prices are not readily
available, the management exercise judgement and includes consideration of credit risk,

liquidity, correlation and long-term volatility of financial instruments.
Depreciation

In determining depreciation of plant and equipment, the management is required to make

estimates of the useful lives and residual values of the plant and equipment and to review
estimate useful lives and residual values when there are any changes.

Deferred tax assets

Deferred tax assets are recognised for deductible temporary differences and unused tax
losses to the extent that it is probable that taxable profit will be available against which the
temporary differences and losses can be utilised. Significant management judgement is
required to determine the amount of deferred tax assets that can be recognised, based upon

the likely timing and level of estimate future taxable profits.

Post-employment benefits under defined benefit plans
The obligation under the defined benefit plan is determined based on actuarial techniques.

Such determination is made based on various assumptions, including discount rate, salary
increase rate, mortality rate and staff turnover rate.

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