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Annual Report
2015
are re-measured. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognised in
the revenues or expenses.
When a gain or loss on a non-monetary item is
recognised in other comprehensive revenues and expenses,
any exchange component of that gain or loss is recognised
in other comprehensive revenues and expenses. Conversely,
when a gain or loss on a non-monetary item is recognised in
revenues or expenses, any exchange component of that gain or
loss is recognised in revenues or expenses.
2.5
Underlying assets
Underlying assets are the financial assets carried by Thai
NVDR Co., Ltd. (the subsidiary). The financial liabilities are the
Non-Voting Depository Receipts (NVDRs). The subsidiary will
offset the financial assets and financial liabilities, and show
the net amount in the finacial statements. According to the
regulations and conditions in the prospectus, the subsidiary are
responsible for issuing and selling NVDRs and making
investments in listed companies in the Stock Exchange of Thailand
at the same amount and in the same period (back to back).
In addition to the entitlement of financial benefits of those
underlying securities as 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 joint ventures 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 investments are initially recognised at
cost, which is equal to the fair value of consideration paid plus
transaction cost.