Page 182 - 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
3.16 Income tax expense
Income tax expense represents the sum of the current income tax and deferred income tax.
Current income tax
Current income tax payable is calculated on the basis of taxable profit for the year. Taxable profit differs from profit as reported in the statement of profit or loss because it excludes items of revenue or expense that are taxable or deductible in other years and excludes non-revenue items or taxable expenses. The current tax liability is calculated using tax rates that have been enacted or substantively enacted at the statement of financial position date.
Deferred income tax
Deferred income tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the amount of assets and liabilities used in the computation of taxable profit (tax base). The Company and its subsidiaries recognize deferred tax liabilities for all temporary differences, and recognize deferred tax assets for temporary differences to the extent that it is probable that taxable profits will be available against which those temporary differences can be utilized. The carrying amounts of deferred tax assets are reviewed at each statement of financial position date. Deferred tax assets shall be reduced to the extent that utilized taxable profits decreased. A reversal is made when it is highly probable that the Company and its subsidiaries will have sufficient taxable profits to utilize some or all of the deferred tax assets.
The Company and its subsidiaries measure deferred tax assets and deferred tax liabilities at the tax rates that are expected to apply to the year when the asset is realized or the liability is settled, based on tax rates that have been enacted or expected to be effective by the end of the reporting period.
In the consolidated financial statements, deferred tax assets and deferred tax liabilities are recognized by each company in the Group, and deferred tax asset of subsidiaries is offset against deferred tax liability of another company in the Group, only if the companies concerned have a legally enforceable right to make or receive a single net payment and both companies intend to make or receive such a single net payment or to recover the asset and settle the liability simultaneously.
3.17 Foreign currency transactions
Foreign currency transactions are recorded by converting them into baht currency at the exchange rates on the transaction dates. Monetary assets and liabilities in foreign currencies outstanding at the statement of financial position date are converted into baht currency at the exchange rates ruling on that date. Exchange gains or losses either realized or unrealized are included as revenues or expenses in the statement of profit or loss for the year.
3.18 Related parties
Related parties comprise individuals and enterprises that control, or are controlled by, the Company, whether directly or indirectly, or which are under common control with the Company, and include firms holding shares, subsidiaries, and businesses that are subsidiaries in the same group. They also include associated companies and individual shareholders who directly or indirectly own a voting interest in the Company that gives them significant influence over the Company, key management personnel who are directors or officers of the Company, as well as immediate family members of such persons and entities related to those persons.
In considering relationship between each related party, the Company pays more attention to content of the relationship than legal pattern.
The Company is under control of the Ministry of Finance, which is the sole shareholder of the Company. The Company does not take other state enterprises as its related parties although their shares are held by the Ministry of Finance.
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Thailand Post Company Limited