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the registered holder, the subsidiaries have an obligation
to repay those financial benefits to the investors in
the NVDRs as mentioned in the prospectus. Those
benefits are not recognised as revenues or expenses
of the subsidiary.
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.
(3) Investments intended
to be held for an
indefinite period of time, which may be sold in response
to liquidity needs or changes in interest rates, are
classified as available-for-sale; and are included in
non-current assets unless management has expressed
the intention of holding the investment for less than 12
months from the statement of financial position date
or unless they will need to be sold to raise operating
capital, in which case they are included in current
assets.
(4) Investments
in non-marketable equity
securities are classified as general investments.
All categories of investment are initially
recognised at cost, which is equal to the fair value of
consideration paid plus transaction cost.
Trading investments and available-for-sale
investments are subsequently measured at fair value.
The fair value of investments is based on last bid price
at the close of business on the statement of financial
position date by reference to the Stock Exchange
of Thailand and the Thai Bond Dealing Centre.
The unrealised gains and losses of trading
investments are recognised in the statement
of comprehensive revenues and expenses.
The unrealised gains and losses of available-for-sale
investments are recognised in fund balances.
Held-to-maturity investments are carried at
amortised cost using the effective yield method less
impairment loss (if any).
General investments are carried at cost less
impairment loss (if any).
A test for impairment is carried out when there
is a factor indicating that an investment might be
impaired. If the carrying value of the investment is
higher than its recoverable amount, impairment loss is
charged to the statement of comprehensive revenues
and expenses.
On disposal of an investment, the difference
between the net disposal proceeds and the carrying
amount is charged or credited to the profit or loss.
When disposing of part of the Group’s holding of a
particular investment in debt or equity securities, the
carrying amount of the disposed part is determined
by the weighted average carrying amount of the total
holding of the investment.