119 / 196
117
2.20
Segment reporting
Operating segments are reported in a manner consistent with
the internal reporting provided to the Group’s senior management.
3. New accounting policy
3.1
Employee benefits
The accounting policies for employee benefits used
in the preparation of the group’s financial statements are
consistent with those used in the annual financial statements for
the year ended 31 December 2014, except for the recognition
of actuarial gains and losses in other comprehensive revenues
and expenses in the period in which they arise.
However, the total amount of remeasurements of post-
employment benefit obligations which was not recognised since
2008, the first year of this accounting standard adoption, until
2014 was Baht 12.49 Million. The management assessed this
impact was not material and did not restate the prior year
financial statements.
4. Financial risk management
Financial risk factors
The Group’s activities expose it to a variety of financial
risks: market risk (including currency risk, fair value interest
rate risk and cash flow interest rate risk), credit risk,
liquidity risk and risk from investments and deposits. The Group’s
financial risk management programme focuses on investment
management under investment policies and strategic asset
allocation which is approved by the SET’s Board of Governors
and subsidiaries’ Board of Director. The investment committees
is strictly established to oversee the investment in compliance
with the policies and strategic asset allocation defined.
The investment policy aims on maintaining stability of the
principal, while receiving the appropriate level of return.
4.1
Foreign exchange risk
The Group has no significant exposure to foreign currency
risk relates due to its accounts receivable and accounts
payable are mainly made in Thai Baht. The Group does not use
any derivative financial instruments to hedge foreign currency
exposure.
4.2
Interest rate risk
Interest rate risk arises from fluctuations in market interest
rates which may affect the Group’s operating results and cash
flow. The Group does not have interest rate derivative in order
to manage fluctuation of the interest rate.
4.3
Credit risk
The Group has no significant concentrations of credit risk.
The Group has appropriate policies in place to ensure that the
Group sell products and provide services to customers who have
appropriate credit history.
4.4
Liquidity risk
The Group has no significant exposure to liquidity risk
as the Group has sufficient cash to support its operations.
The Group aims on maintaining flexibility of funding by using
internal capital of the Group.
4.5
Risk from investments and deposits
The Group is exposed to market risks as the investor of
financial instruments, and credit risk from the issuer of financial
instruments. The Group, therefore, has a policy of diversifying
its investments and deposits to high credit financial institutions
according to the investment policy prescribed by the resolution
of the investment committee.