Page 111 - ACC One Report 2567-En

ADVANCED CONNECTION CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2024
4. SIGNIFICANT ACCOUNTING POLICIES 4.1 Revenuerecognition
Revenue
Revenue is measured at the fair value of the standalone selling price of each performance obligation in contracts.
Revenue from contracts with multiple elements are allocated by fair value of standalone selling price in each performance obligation. In case of contracts have both obligations to perform at point of time and overtime, difference from revenue recognition and performance obligations at the beginning of contracts is recognized as contract assets or contract liabilities and recognized over the contract’s periods.
Revenue from sale of goods
Revenue from sale of goods is recognized when control of the goods is transferred to customers.
Revenue from rendering of services
The Group recognized services revenue over the contract period. Such recognition is on a straight-line basis according to the proportion of the rendered services over the contract period.
Interest income from loans from purchase of non – performing receivables
Interest income from loans from purchase of non – performing receivables are recognised on an accrual basis by calculating amortised cost of loans from purchase of non – performing receivables net of allowance for expected credit loss using credit – adjusted effective interest rate.
The credit – adjusted effective interest rate is calculated by discounting the estimated future cash in/outflows through the expected life of the financial asset to the amortised cost of loans from purchase of non – performing receivables that are a purchased or originated credit impaired financial asset. The estimated future cash in/outflows is calculated by using a model developed based on historical data of net cash inflows, by considering types of account receivables, agreement terms, repayment terms for account receivables with collateral, the period of collection and expected credit losses. There is a presumption that the estimated future cash in/outflows and the expected life of a financial instrument can be estimated reliably.
In cases where loans from purchase of non – performing receivables is fully amortised but the Group still has the right to demand the debtor make payment under the contract, the Group will record such payment in the entire amount as gains on loans from purchase of non – performing receivables. This will be classified as part of the interest income.
Annual Report 2024 (Form 56-1 One Report) Advanced Connection Corporation Public Company Limited
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