144 / 196
Annual Report 2014
144
2.11 Impairment
Assets that have an indefinite useful life are
not subject to amortisation and are tested annually for
impairment. Assets that are subject to amortisation are
reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised
for the amount by which the carrying amount of the
assets exceeds its recoverable amount. The recoverable
amount is the higher of an asset’s fair value less costs
to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest level for
which there are separately identifiable cash flows.
Non-financial assets that suffered an impairment
are reviewed for possible reversal of the impairment
at each reporting date.
2.12 Interest-bearing liabilities
Interest-bearing liabilities are recognised initially
at fair value less attributable transaction charges.
Subsequent to initial recognition, interest-bearing
liabilities are stated at amortised cost with any difference
between cost and redemption value being recognised
in the statement of comprehensive revenues and
expenses over the period of the borrowings on an
effective interest basis.
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 payablewhen 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