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4. Critical accounting estimates, assumptions and judgements
Estimates, assumptions and judgments are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances.
5. Capital risk management
The Group’s objectives when managing capital are to safeguard the Subsidiaries in the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to
increase investor and stakeholder confidence.
In order to maintain or adjust the capital structure, the Subsidiaries in the Group may adjust the amount of dividends paid to
shareholders depending on their operating performance.
6. Related party transactions
Related parties are those parties linked to the Group. Transactions with related parties are conducted at prices based on market
prices or at contractually agreed prices where no market price exists.
The pricing policies for particular types of transactions are explained below:
Transaction Pricing policy
Service income Contractually agreed price
Purchase of services Cost plus margin
Interest expense With reference to the deposit rate of financial institutions
Related party transactions for the years ended 31 December 2012 and 2011 were as follows:
(Unit : Baht’000)
Consolidated SET
2012 2011 2012 2011
Service income
Subsidiaries - - 1,376,203 1,380,562
Jointly-controlled entity 13,560 13,305 13,542 13,285
Associates 1,128 949 - -
14,688 14,254 1,389,745 1,393,847
Purchase of services
Subsidiaries - - 1,881 1,886
Jointly-controlled entity 168,952 168,232 168,952 168,232
168,952 168,232 170,833 170,118
Interest income
Subsidiaries - - 4,491 3,076
Jointly-controlled entity - 711 - 711
- 711 4,491 3,787
Interest expense
Subsidiaries - - 17,591 11,177