Page 114 - One Report Thai Final_ENG_2021
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Tycoons Worldwide Group (Thailand) Plc.
5. Significant accounting judgements and estimates
The preparation of financial statements in conformity with financial reporting standards at
times requires management to make subjective judgements and estimates regarding matters
that are inherently uncertain. These judgements and estimates affect reported amounts and
disclosures; and actual results could differ from these estimates. Significant judgements and
estimates are as follows:
Decrease of inventories to net realisable value
In determining an decrease of inventories to net realisable value, the management makes
judgement and estimates net realisable value of inventory based on the amount the
inventories are expected to realise. These estimates take into consideration fluctuations of
their selling price, cost and expenses directly relating to events occurring after the end of
the period. Also, the management makes judgement and estimates expected loss from stock
obsolescence based upon aging profile of inventories and their current condition.
6. Related party transactions
The followings are relationships with related parties.
Country of
Name of entities incorporation Nature of relationships
TY Steel Co., Ltd. Thailand 5.89% holding by parent company
19.27% holding by the Company
Tycoons Group Enterprise Co., Ltd. Taiwan Ultimate parent company
Tycoons Group International Co., Ltd. Cayman Parent company
Tycoons Vietnam Co., Ltd. Vietnam Subsidiary of parent company
Huanghua Jujin Hardware Products Co., Ltd. China Subsidiary of parent company
Huanghua Jujin Import & Export Trading Co., Ltd. China Subsidiary of parent company
Jin Hai Hardware Co., Ltd. Thailand 18.19% holding by parent company
During the year, the Group had significant business transactions with related parties. Such
transactions, which are summarised below, arose in the ordinary course of business and were
concluded on commercial terms and bases agreed upon between the Group and those related
parties.
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