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When an operating lease is terminated before the lease period has expired, any payment required to be made to the
lessor by way of penalty is recognised as an expense in the period in which termination takes place.
2.17 Revenue
Revenue excludes value added taxes.
Service income is recognised upon performance of services.
Where there are long-outstanding receivables from listing fee and registrar fee collection over three months, the Group
considers the collectability of the receivables as doubtful and ceases revenue recognition on fees of related companies immediately.
Membership fees comprise initial and annual fees. The initial fees are recognised as revenue on a straight-line basis over
a period of five years starting from the first day on which the service is rendered. Annual fees are recognised upon performance of
services.
Interest income is recognised on a time proportion basis, taking into account the principal outstanding and the effective
rate over the period to maturity, when it is determined that such income will accrue to the Group.
Dividend income is recognised in the statement of comprehensive revenues and expenses when the Group’s right to receive
payment is established.
Other income is recognised when the right to receive cash is established.
2.18 Directors’ remuneration
Directors’ remuneration comprises the benefits paid to the Board of Governors of the SET and the Board of Directors of
subsidiaries including benefits received by the members of sub-committees (excluding salaries, bonus and related benefits payable to
management).
2.19 Income tax
The Subsidiaries in the Group calculates income tax in accordance with the Revenue Code and records income tax on
an accrual basis. The Subsidiaries in the Group do not recognise income taxes payable or receivable in future periods in respect of
temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
3. Financial risk management
Financial risk factors
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk
and cash flow interest rate risk), credit risk, liquidity risk and risk from investments and deposits. The Group’s financial risk
management programme focuses on investment management under investment policies and strategic asset allocation which is approved
by the SET’s Board of Governors and subsidiaries’ Board of Director. The investment committees is strictly established to oversee the
investment in compliance with the policies and strategic asset allocation defined. The investment policy aims on maintaining stability
of the principal, while receiving the appropriate level of return.
3.1 Foreign exchange risk
The Group has no significant exposure to foreign currency risk relates due to its accounts receivable and accounts payable
are mainly made in Thai Baht. The Group does not use any derivative financial instruments to hedge foreign currency exposure.
3.2 Interest rate risk
Interest rate risk arises from fluctuations in market interest rates which may affect the Group’s operating results and cash
flow. The Group has no significant interest rate risk. The market interest rate at the time of transaction and trend of the interest rate in
the following year will be considered when the borrowing transaction is initiated. The Group does not have interest rate derivative in
order to manage fluctuation of the interest rate.