Page 112 - One Report Thai Final_ENG_2021

Tycoons Worldwide Group (Thailand) Plc.

Classification and measurement of financial liabilities

Except for derivative liabilities, at initial recognition the Group’s financial liabilities are
recognised at fair value net of transaction costs and classified as liabilities to be
subsequently measured at amortised cost using the EIR method. Gains and losses are

recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process. In determining amortised cost, the Group takes into account any fees
or costs that are an integral part of the EIR. The EIR amortisation is included in finance
costs in profit or loss.

Derecognition of financial instruments

A financial asset is primarily derecognised when the rights to receive cash flows from the

asset have expired or have been transferred and either the Group has transferred
substantially all the risks and rewards of the asset, or the Group has transferred control of
the asset.

A financial liability is derecognised when the obligation under the liability is discharged
or cancelled or expires. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are

substantially modified, such an exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The difference in the respective
carrying amounts is recognised in profit or loss.

Impairment of financial assets

For trade receivables, the Group applies a simplified approach in calculating ECLs.
Therefore, the Group does not track changes in credit risk, but instead recognises a loss
allowance based on lifetime ECLs at each reporting date.

ECLs are calculated based on its historical credit loss experience and adjusted for forward-

looking factors specific to the debtors and the economic environment.
A financial asset is written off when there is no reasonable expectation of recovering the

contractual cash flows.

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