Page 177 - 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
3.7
The fair value hierarchy used to measure and disclose the fair value of the assets and liabilities in the financial statements can be divided into three levels according to the types of information used for measurements as follows : Level 1 : Use price offer of the same assets or liabilities in the market having liquidity
Level 2 : Use other observable information of the assets or liabilities whether it is direct or indirect information Level 3 : Use unobservable information e.g., information about the future cash flow estimated by the entity
On each end date of reporting cycle, the Group will assess the necessity of inter-level transfer of the transactions of the fair value for the assets and liabilities held on the end date of reporting cycle when the fair value measurement usually happens.
Investments in subsidiaries and associated companies
Investments in subsidiaries and associated companies in the separate financial statements of the Company are accounted for using the cost method. Investment in associated companies is stated in the consolidated financial statements using equity method.
An associated company is a business that is under significant influence of the Group, with significant influence being the power to participate in decision-making on the financial and operational policies of the investee, but not to the extent that it is controlled or jointly controlled by such policies.
In the equity method, the list of investments in associate is recognized at the beginning in the consolidated financial statements with cost and is adjusted after the date of acquisition with the share of profit or loss and the proportion of the Group in other comprehensive income of the associate. When the Group’s share of losses in the associate is equal to or higher than the Group’s equity in the associate, the Group will stop recognizing its share of losses in excess of its interest in the associate. The additional loss will be recognized as a liability only if the Group has a legal obligation or an inferred obligation to deduce or pay on behalf of the associate.
Property, plant and equipment
Property, plant and equipment include buildings, structures, and improvements which are built on the state property leased land and their ownership will be transferred to the Treasury Department upon expiry of the lease contracts. These assets are recognized at cost on the date of acquisition or completion of construction and stated in the statement of financial position at cost less accumulated depreciation and allowance for impairment (if any). The depreciation of all kinds of assets is calculated on the straight line basis over the estimated useful lives of all assets, except land.
3.8
The estimated useful lives of each type of assets are as follows :
Land improvements
Buildings, structures and improvements Machinery and equipment
General tools and appliances
Office equipment
Vehicles
Useful lives (years) 10
10 - 20 10 5 - 10 3 - 5 5 - 10
Expenses incurred in additions or improvements of the assets on expected future economic benefits are recorded as cost of the assets. Depreciation is calculated according to the remaining useful lives of the assets. Repair and maintenance expenses are recognized as expenses in the accounting period when they actually occur.
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