Page 123 - TYCONS - ANNUAL REPORT 2022

Tycoons Worldwide Group (Thailand) Plc.

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.

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.

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