Page 178 - 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
3.9 Intangible assets other than goodwill
Intangible assets other than goodwill, comprising computer program, are stated at the cost of acquisition less accumulated amortization and allowance for impairment (if any). Amortization is calculated using the straight-line method over a useful life of 10 years.
3.10 Impairment
The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amounts are estimated. For goodwill, the recoverable amount is estimated each year during the same period.
An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. The impairment loss is recorded as an expense in the statement of comprehensive income unless it reverses the additional valuation of the same assets previously recognized in equity and later there was impairment. This case will be recognized in the statement of comprehensive income.
Calculation of recoverable amount
The recoverable amount of a non-financial asset is the asset’s value in use or fair value less costs to sell, whichever is higher. In assessing the asset's value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects their likely value in current market, which varies with the time and the risk of the asset. For an asset that does not generate cash inflows independent from other assets, the recoverable amount is determined together with the cash-generating units associated with the asset.
Reversals of impairment
An impairment loss in respect of a financial asset is reversed if its recoverable amount subsequently increases and that increase is directly related to impairment loss that was previously recognized as an expense in the statement of comprehensive income.
Impairment losses recognized in prior periods in respect of other non-financial assets are assessed at each reporting date with indication that impairment has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined after depreciation or amortization, as if no impairment loss had been recognized.
3.11 Subsidies Pending Recognition
A pending subsidy is a subsidy from the government or various agencies that usually specify the purpose of use and the conditions that the company is required to meet.
Subsidies for the acquisition of assets are initially recognized as subsidies pending recognition (expressed as liabilities in the statements of financial position) and gradually recognized as income in the statement of comprehensive income, when carried out in compliance with the specified conditions according to systematic and reasonable criteria throughout the provision of asset benefits.
3.12 Provision
Provisions are recognized when the Group has a obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
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Thailand Post Company Limited