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The Group’s share of its associates’ post-acquisition profits
or losses is recognised in the revenues and expenses, and its share
of post-acquisition movements in other comprehensive revenues
and expenses is recognised in other comprehensive revenues
and expenses. The cumulative post-acquisition movements
are adjusted against the carrying amount of the investment.
When the Group’s share of losses in an associate equals or
exceeds its interest in the associate, including any other
unsecured receivables, the Group does not recognise further
losses, unless it has incurred obligations or made payments on
behalf of the associate.
The Group determines at each reporting date whether there
is any objective evidence that the investment in the associate is
impaired. If this the case, the Group calculates the amount of
impairment as the difference between the recoverable amount of
the associate and its carrying value and recognises the amount
adjacent to share of profit/(loss) of associates in the statement
of comprehensive revenues and expenses.
Unrealised gains on transactions between the Group
and its associates are eliminated to the extent of the Group’s
interest in the associates. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of
the asset transferred.
Accounting policies of associates have been changed
where necessary to ensure consistency with the policies adopted
by the Group. Dilution gains and losses arising in investments
in associates are recognised in the revenues and expenses.
In the SET’s separated financial statements, investments
in associates are accounted for at cost less impairment. Cost
is adjusted to reflect changes in consideration arising from
contingent consideration amendments. Cost also includes direct
attributable costs of investment.
(5) Joint arrangements
The Group has applied TFRS11 to all joint arrangements
as of 1 January 2015. Under TFRS11 investments in joint
arrangements are classified as either joint operations or
joint ventures depending on the contractual rights and obligations
each investor. The Group has assessed the nature of its joint
arrangements and determined them to be joint ventures.
Joint ventures are accounted for using the equity method.
Under the equity method of accounting, interests in
joint ventures are initially recognised at cost and adjusted
thereafter to recognise the Group’s share of the post-acquisition
profits or losses and movements in other comprehensive revenues
and expenses. When the Group’s share of losses in a joint
venture equals or exceeds its interests in the joint ventures
(which includes any long-term interests that, in substance, form
part of the Group’s net investment in the joint ventures), the
Group does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the joint ventures.
Unrealised gains on transactions between the Group and its
joint ventures are eliminated to the extent of the Group’s interest
in the joint ventures. Unrealised losses are also eliminated
unless the transaction provides evidence of an impairment of
the asset transferred. Accounting policies of the joint ventures
have been changed where necessary to ensure consistency with
the policies adopted by the Group. The change in accounting
policy has been applied as from 1 January 2015.
2.4
Foreign currencies
a) Functional and presentation currency
Items included in the financial statements of each of
the Group’s entities are measured using the currency of the
primary economic environment in which the entity operates
(‘the functional currency’). The consolidated financial statements
are presented in Thai Baht, which is the Group’s functional and
the Group’s presentation currency.
b) Transactions and balances
Foreign currency transactions are translated into
the functional currency using the exchange rates prevailing
at the dates of the transactions or valuation where items