Annual Report 2017

109 (1) Family Know-how Co., Ltd. Family Know-how Co., Ltd. is a media company that broadcasts information about economics and investment for the benefits of investor. The business of Family Know-how is supported to the objectives of the SET group in promoting an investment culture. The SET has performed joint arrangement with a company which have rights to the net assets of the arrangement. Therefore, the investment in Family Know-how is classified as investment in joint venture entity. Family Know-how Co., Ltd. is a private limited company and its stock is not traded in the market price. (2) Clearing Fund The Clearing Fund operates under the Regulations of the Clearing Fund (No. 1) B.E. 2541, which require that a one-time payment of Baht 100 million be made as an initial contribution by the SET. The ownership interest percentage will be reduced based on further contributions made by other members of the Clearing Fund in the future. The SET has no control over the Clearing Fund’s operations, but has influences in policy and operation. Therefore, the investment in the Clearing Fund is classified as investment in an associate. (3) TSFC Securities Public Company Limited (TSFC) TSFC Securities Public Company Limited has been established to provide liquidity for securities companies and to support to the further development of securities market. The SET has appointed 4 representatives to be member of the 12-member Board of Directors of TSFC. The Board of Directors will participate in the decision-making on monetary policies and operations of the company. Therefore, the investment in TSFC is classified as investment in an associate. TSFC Securities Public Company Limited is a public company and its stock is not traded in the market price. 2. Accounting policies 2.1 Basis of preparation The consolidated and entity financial statements have been prepared in accordance with Thai Financial Reporting Standards under the Accounting Act B.E. 2543, being those Thai Financial Reporting Standards issued under the Accounting Profession Act B.E. 2547. The consolidated and entity financial statements have been prepared under the historical cost convention except as disclosed in the accounting policy for investments below. The preparation of financial statements in conformity with Thai Financial Reporting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated and entity financial statements are disclosed in Note 5. An English version of the consolidated and entity financial statements has been prepared from the statutory financial statements that are in the Thai language. In the event of a conflict or a difference in interpretation between the two languages, the Thai language statutory financial statements shall prevail. 2.2 Revised financial reporting standards, and related interpretations 1) Revised financial reporting standards and interpretations are effective on 1 January 2017 which are relevant and have a significant impact to the Group: