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In the entity’s financial statements, investment in associates are accounted for using the cost method.
Allowance, if any, is recorded for impairment in investment in subsidiaries, jointly-controlled entity and associates in the
statements of comprehensive revenues and expenses.
A list of the SET’s principal subsidiaries, jointly-controlled entity and associates is provided in Note 1.
2.4 Foreign currencies
Items included in an entity’s the financial statements of each of the Group’s entities are measured using Thai Baht.
The consolidated financial statements are presented in Thai Baht.
Foreign currency transactions are translated into Thai Baht using the exchange rates prevailing at the date of the
transaction. Monetary assets and liabilities denominated in foreign currency are translated to Thai Baht at the exchange rate prevailing
at the statement of financial position date. Gains and losses resulting from the settlement of foreign currency transactions, and from
the translation of monetary assets and liabilities denominated in foreign currencies, are recognised in the statement of comprehensive
revenues and expenses.
Translation differences on investments in debt securities and other monetary financial assets measured at fair value are
included in foreign exchange gains and losses. Translation differences on non-monetary items such as investments in equity securities
held for trading are reported as part of the fair value gain or loss. Translation differences on available-for-sale investments in equity
securities are included in the revaluation reserve in fund balance.
2.5 Underlying assets
Underlying assets are the financial assets carried by Thai NVDR Co., Ltd. and Siam DR Co., Ltd. (subsidiaries).
The financial liabilities are the Non-Voting Depository Receipts (NVDRs) and Depository Receipts (DRs). The subsidiaries will offset
the financial assets and financial liabilities, and show the net amount in the financial statements. According to the regulations and
conditions in the prospectus the subsidiaries are responsible for issuing and selling NVDRs or DRs and making investments in listed
companies in the Stock Exchange of Thailand at the same amount and in the same period (back to back). The subsidiaries who are the
holders will then receive financial benefits and will be responsible for paying all such financial benefits on to the investors in the NVDRs
or DRs. These benefits are not recognised as revenue or expense of the subsidiaries.
2.6 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, call deposits (excluding deposits held to maturities), other short-term
highly liquid investments held for working capital and short-term commitment payment purposes with maturities from acquisition date
of three months or less.
2.7 Investments
Investments other than investments in subsidiaries, associates and jointly-controlled entity are classified into the
following four categories: (1) trading investments; (2) held-to-maturity investments; (3) available-for-sale investments; and (4)
general investments. The classification is dependent on the purpose for which the investments were acquired. Management determines
the appropriate classification of its investments at the time of the purchase and re-evaluates such designation on a regular basis.
(1) Investments that are acquired principally for the purpose of generating a profit from short-term fluctuations in price
are classified as trading investments and included in current assets.
(2) Investments with fixed maturity that the management has the intent and ability to hold to maturity are classified
as held-to-maturity and are included in non-current assets, except for maturities within 12 months from the statement
of financial position date which are classified as current assets.