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116 Annual Report 2012
2.13 Trade and other accounts payable
Trade and other accounts payable are stated at cost.
2.14 Employee benefits
Defined contribution plans
The Group participates in a provident fund, which is a defined contribution plan, the assets for which are held in
a separate trustee-administered fund and are managed by a licensed Fund Manager. The provident fund is funded by payments from
employees and by the Group. The Group’s contributions to the provident fund are charged to the statement of comprehensive revenues
and expenses in the year to which they are related.
Defined benefit plans
The Group provides for post employment retirement benefits, payable to employees under the labour laws applicable in
Thailand. The liability in respect of employee benefits is measured, using the corridor method which is calculated by an independent
actuary in accordance with the actuarial technique. The present value of the defined benefit obligation is determined by discounting
estimated future cash flows using the yield on government bonds which have terms to maturity approximating the terms of the related
liability. The estimated future cash flows shall reflect employee salaries, turnover rate, mortality rate, length of service and other factors.
Actuarial gains or losses will be recognised as income or expense in the statement of comprehensive revenues and expenses if the
net cumulative unrecognised actuarial gain and losses at the end of the previous reporting period exceeding the greater of 10% of the
present value of the defined benefit obligation at that date (before deducting plan assets) and 10% of the future value of the plan
assets at that date.
In determining the appropriate discount rate, the Group considers the interest rates in which the benefits will be paid
to the staff.
Termination benefits
Termination benefits are payable when employment is terminated by the Group before the normal retirement date,
or whenever an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when
it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without
the possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy.
2.15 Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event, and
it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Where
the Group expects a provision to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement
is virtually certain.
Provisions are recognised in the period in which the Group becomes legally or constructively committed to payment. Costs
relating to the ongoing activities are not classified as provisions.
2.16 Lease-where a Group is the lessee
Leases of assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified
as operating leases.
Payments made under operating leases are recognised in the statement of comprehensive revenues and expenses on
a straight-line basis over the term of the lease. Lease incentives granted are recognised in the statement of comprehensive revenues
and expenses as an integral part of the total rental income. Contingent rentals are charged to the statement of comprehensive revenues
and expenses for the accounting period in which they are incurred.