Page 111 - One Report Thai Final_ENG_2021

Tycoons Worldwide Group (Thailand) Plc.

Classification and measurement of financial assets

Financial assets are classified, at initial recognition, as to be subsequently measured at
amortised cost, fair value through other comprehensive income (“FVOCI”), or fair value
through profit or loss (“FVTPL”). The classification of financial assets at initial recognition

is driven by the Group’s business model for managing the financial assets and the
contractual cash flows characteristics of the financial assets.

Financial assets at amortised cost

The Group measures financial assets at amortised cost if the financial asset is held in order
to collect contractual cash flows and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of principal and interest on the

principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest

rate (“EIR”) method and are subject to impairment. Gains and losses are recognised in
profit or loss when the asset is derecognised, modified or impaired.

Financial assets designated at FVOCI (equity instruments)

Upon initial recognition, the Group can elect to irrevocably classify its equity investments
which are not held for trading as equity instruments designated at FVOCI. The
classification is determined on an instrument-by-instrument basis.

Gains and losses recognised in other comprehensive income on these financial assets are
never recycled to profit or loss.

Dividends are recognised as other income in profit or loss, except when the dividends

clearly represent a recovery of part of the cost of the financial asset, in which case, the
gains are recognised in other comprehensive income.

Equity instruments designated at FVOCI are not subject to impairment assessment.

Financial assets at FVTPL

Financial assets measured at FVTPL are carried in the statement of financial position at
fair value with net changes in fair value recognised in profit or loss.

These financial assets include derivatives.

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