Page 113 - One Report Thai Final_ENG_2021

Tycoons Worldwide Group (Thailand) Plc.

4.14 Derivatives

The Group uses forward currency contracts to hedge its foreign currency risks.

Derivatives are initially recognised at fair value on the date on which a derivative contract
is entered into and are subsequently remeasured at fair value. The subsequent changes are
recognised in profit or loss. Derivatives are carried as financial assets when the fair value

is positive and as financial liabilities when the fair value is negative.
Derivatives are presented as non-current assets or non-current liabilities if the remaining

maturity of the instrument is more than 12 months and it is not due to be realised or settled
within 12 months. Other derivatives are presented as current assets or current liabilities.

4.15 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between buyer and seller (market participants) at the measurement
date. The Group apply a quoted market price in an active market to measure their assets

and liabilities that are required to be measured at fair value by relevant financial reporting
standards. Except in case of no active market of an identical asset or liability or when a
quoted market price is not available, the Group measure fair value using valuation
technique that are appropriate in the circumstances and maximises the use of relevant
observable inputs related to assets and liabilities that are required to be measured at fair

value.

All assets and liabilities for which fair value is measured or disclosed in the financial
statements are categorised within the fair value hierarchy into three levels based on
categorise of input to be used in fair value measurement as follows:

Level 1 - Use of quoted market prices in an observable active market for such assets or
liabilities

Level 2 - Use of other observable inputs for such assets or liabilities, whether directly or
indirectly

Level 3 - Use of unobservable inputs such as estimates of future cash flows
At the end of each reporting period, the Group determine whether transfers have occurred

between levels within the fair value hierarchy for assets and liabilities held at the end of
the reporting period that are measured at fair value on a recurring basis.

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