Page 175 - 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
(1) Write-off policy
The Group writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. Financial assets written off may still be subject to enforcement activities under the Group’s demand procedures, taking into account legal advice where appropriate. The recovered amount is recognized in profit or loss.
(2) Measurement and recognition of expected credit losses
The measurement of expected credit losses bases on calculating the probability of default, the percentage of damages that may result from default (i.e. the impact of damages if default occurs) and the amount owed when the debtor defaults. The assessment of the probability of default and the percentage of damages from default is based on historical data adjusted by forward-looking information. The amount owed at default, for financial assets is represented by the asset’s gross carrying amount as at the reporting date. For financial guarantee contracts, the exposure includes the amount drawn down as at the reporting date, together with any additional amounts expected to be drawn down in the future. The default date is determined based on the historical trend. The Group understands the specific future financing needs of the debtors, and other relevant forward-looking information.
Financial Liabilities
All financial liabilities are subsequently valued at amortized costs using the effective interest method or at fair value through profit or loss.
However, financial liabilities arising from the transfer of financial assets do not meet the conditions for write-off or continuous adherence to relevance criteria. The Group measures the value in accordance with the specific accounting policies below.
Financial Liabilities Expressed at Fair Value Through Profit or Loss
Financial liabilities are classified at fair value through profit or loss when the financial liability is (1) an anticipated return to be paid recognized by the buyer in the business merger; (2) held for trading or (3) selectively required to be expressed at fair value through profit or loss.
Financial liabilities are classified as held for trading purposes if the following conditions are met :
• Acquisition with the primary purpose of buying back in the near future, or;
• Designation as part of the group of financial instruments the group manages as a group transaction on
the date the transaction was initially recognized and when there is evidence of the current pattern of actual
short-term profitability, or
• As a derivative, except for derivatives that are financial guarantee contracts or when a choice is made to
designate them as instruments used to hedge risks in the effective part.
Financial liabilities other than those held for trading or in return expected to be paid by the buyer in the business merger may be opted to be presented at fair value through profit or loss as of the date of initial recognition of the transaction if the following conditions are met :
• The designation eliminates or reduces any significant inconsistencies in measurement or recognition of
transactions, or
• Financial liabilities are part of a group of financial assets, or financial liabilities, or both, that are managed
and evaluated on a fair value basis consistent with the Group's risk management or investment strategy
in writing, and information about the Group is presented internally, or
• Financial liabilities are the part of a contract with one or more latent derivatives, and TFRS 9 allows an entire
composite contract with the option of defining expression at fair value through profit or loss.
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