Page 115 - ACC One Report 2567-En

ADVANCED CONNECTION CORPORATION PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2024
4.4 Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, cash at banks, and all highly liquid investments with an original maturity of three months or less and not subject to withdrawal restrictions.
4.5 Loansfrompurchaseofnon–performingreceivablesandaccruedinterestreceivables
The loans from purchase of non – performing receivables represent secured non – performing receivables which the group purchased from financial institutions by bidding for debts management and collection. Under the purchase contracts of non – performing receivables, the group takes all the risks in the collection without recourse. The loans from purchase of non – performing receivables are recognised as purchased or originated credit – impaired financial assets.
The group initially recognise purchased or originated credit – impaired financial assets at cost, which comprise purchased amount (fair value as at transaction date equals or approximates to purchased price) add direct expense of loans from purchase of non – performing receivable.
The loans from purchase of non – performing receivables are presented at amortised cost plus accrued interest income, net of allowance for expected credit losses.
4.6 Allowance for expected credit losses of loans from purchase of non-performing receivables
The loans from purchase of non – performing receivables are purchased or originated credit – impaired financial assets. The group recognises allowance for expected credit loss from loans from purchase of non – performing receivable as the cumulative changes in lifetime expected credit losses since initial recognition.
At each reporting date, the Group estimates the amount of an expected credit losses of loans from purchase of non – performing receivables by calculating the difference between the carrying amount of loans from purchase of non – performing receivable and the present value of estimated future cash flows. The Group estimates the amount of an expected credit losses by discounting the unbiased forecast cash flows based on reasonable and supportable information that is relevant and available without undue cost or effort.
The group uses judgement in estimating the amount and period of expected net cash inflows in calculating allowance for expected credit losses and credit – adjusted effective interest rate since initial recognition of loans from purchase of non – performing receivables for recognition of interest income. In estimating cash flows, the group considers loss experience and adjust on the basis of current observable data. In addition, the group uses reasonable and supportable forecasts of future economic conditions including experiences judgement to estimate the amount of an expected impairment loss. The group uses judgement in assessing financial situation of debtor, net collateral value and future information and uses forward – looking information to calculate allowance for expected credit losses.
Annual Report 2024 (Form 56-1 One Report1)7 Advanced Connection Corporation Public Company Limited
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