Page 110 - One Report Thai Final_ENG_2021

Tycoons Worldwide Group (Thailand) Plc.

4.11 Provisions

Provisions are recognised when the Group has a present obligation as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation, and a reliable estimate can be made of the amount of the

obligation.

4.12 Income tax
Income tax expense represents the sum of corporate income tax currently payable and

deferred tax.

Current tax

Current income tax is provided in the accounts at the amount expected to be paid to the
taxation authorities, based on taxable profits determined in accordance with tax legislation.

Deferred tax

Deferred income tax is provided on temporary differences between the tax bases of assets
and liabilities and their carrying amounts at the end of each reporting period, using the tax
rates enacted at the end of the reporting period.

The Group recognise deferred tax liabilities for all taxable temporary differences while
they recognise deferred tax assets for all deductible temporary differences and tax losses

carried forward to the extent that it is probable that future taxable profit will be available
against which such deductible temporary differences and tax losses carried forward can be
utilised.

At each reporting date, the Group review and reduce the carrying amount of deferred tax
assets to the extent that it is no longer probable that sufficient taxable profit will be
available to allow all or part of the deferred tax asset to be utilised.

The Group record deferred tax directly to shareholders' equity if the tax relates to items
that are recorded directly to shareholders' equity.

4.13 Financial instruments

The Group initially measures financial assets at its fair value plus, in the case of financial
assets that are not measured at fair value through profit or loss, transaction costs. However,
trade receivables, that do not contain a significant financing component are measured at the
transaction price as disclosed in the accounting policy relating to revenue recognition.

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