Page 173 - Thailand Post Annual Report 2024

Part 1
Overview of the Organization
Part 2
Business Trends
Part 3
Business Model
Part 4
Strategies and Resource Allocation
Part 5
Risk
Part 6
Corporate Governance
Part 7
Operating Results
Part 8
Other Information
a change in the lease agreement or a change in the leasing term) must comply with the general requirements of Financial Reporting Standard No. 16. The case may be a specific one for leaseback that includes variable lease payments that do not rely on indices or rates.
Seller-lessee are required to comply with the revision for the annual reporting period beginning on or after 1 January 2025 onward. The business is permitted to use before the effective date if the seller-lessee are compliant with the revision for the period prior to the effective date, the seller-lessee must also disclose such facts.
Financial Reporting Standard No. 17 “Insurance Contracts”
Financial Reporting Standard No. 17 replaces Financial Reporting Standard No. 4 on Insurance Contracts by specifying the principles for recognition, measurement, presentation and disclosure of information on insurance contracts.
The Group's executives will apply the relevant financial reporting standards to the Group's financial statements when the financial reporting standards come into force. The Group's executives have assessed the impact of the Financial Reporting Standards and are of the opinion that the implementation of the Financial Reporting Standards will not have material impact on the Group's financial statements for the period to be implemented.
3. Significant Accounting Policies
3.1 Basis for Preparation of Consolidated Financial Statements
a) Consolidated financial statements comprise the financial statements of the Company and its subsidiaries. It is deemed that the Company has control over the invested business or its subsidiaries. If the Company has the power over the invested persons, it is entitled to, or has the interest in the invested business and is able to exercise the power to order the activities having significant effects on the amount of remuneration.
In case any conditions or circumstances indicate that any of the above controlling powers may change,
the Group of companies may re-consider the controlling power over the controlled business.
b) The Company includes the financial statements of the subsidiaries in the consolidated financial statements
from the date that the Company has control over the subsidiaries until the date that control is terminated.
c) The financial statements of the subsidiaries are prepared for the same accounting cycle and use the same
important accounting policy as the Company.
d) Significant outstanding balance between the Company and the subsidiaries as well as the intercompany
transactions have been eliminated from these consolidated financial statements.
e) Non-controlling stakeholders’ equity means the amount of net profits or losses and assets of the subsidiaries which do not belong to the Company and are shown separately in the section of consolidated profits or losses
and the shareholders’ equity in the consolidated statements of financial position.
3.2 Cash and cash equivalents
Cash and cash equivalents comprise cash balances, all types of bank deposits with maturities of three months or less, excluding restricted bank deposits.
3.3 Trade accounts receivables
Trade accounts receivable are stated at invoice value less allowance for expected credit loss. Allowance for expected credit loss is disclosed in Note 3.5.
3.4 Inventories
Inventories are stated at cost price or net value, whichever is lower.
Cost of goods means costs of purchase, including the purchase price and direct expenses incurred in purchasing such goods or supplies, such as taxes, transport fees, less discounts and rebates. Net value receivable is the estimated selling price in the ordinary course of business, less necessary selling expenses. Calculation of inventory cost for each type is as follows :
Annual Report 2024 171