Page 234 - BTSGroup ONE REPORT 2021/22_EN

232 l Introduction l Nature of Business l Organisation and Shareholding Structure l Business Review l Corporate Governance l Financial Statements l Other Information l
4.20 Related party transactions
Related parties comprise enterprises and individuals that control, or are
controlled by, the Group, whether directly or indirectly, or which are
under common control with the Group.
They also include shareholders, joint ventures, associated companies,
and enterprises or individuals who have significant influence over
the Group, key management personnel, directors and officers with authority
in the planning and direction of the Group’s operations, including their
family members.
4.21 Foreign currencies
The consolidated and separate financial statements are presented in
Baht, which is also the Company’s functional currency. Items of each
entity included in the consolidated financial statements are measured
using the functional currency of that entity.
Transactions in foreign currencies are translated into Baht at the
exchange rate ruling at the date of the transaction. Monetary assets and
liabilities denominated in foreign currencies are translated into Baht at
the exchange rate ruling at the end of reporting period.
Gain and loss on exchange are included in determining income.
Exchange differences of equity instruments measured at fair value
through other comprehensive income are included in the fair value gain
or loss in other comprehensive income.
4.22 Service Concession Arrangements
The Group provides services to operate elevated train projects for
public service including the design and construction of civil works,
the procurement of electronic and mechanical systems and related
equipment and the operation and maintenance services under service
concession agreements for specified periods of time. The Group is paid
for its services as stipulated in the agreements, and the arrangements
are governed by the agreements that sets out performance standards.
Such arrangements are a public-to-private service concession
arrangements.
The Group recognises the consideration received or receivable at its
fair value as rights to financial assets or to intangible assets, depending
on the conditions of service concession arrangements.
The Group recognises the consideration received or receivable for their
provision of elevated train operations as a financial asset to the extent
that it has an unconditional contractual right to receive cash or another
financial asset for the services from or at the direction of the grantor.
The Group shall recognise an intangible asset to the extent that it
receive a right to charge users of the public service. A right to charge
users of the public service is not an unconditional right to receive cash
because the amounts are contingent on the extent that the public uses
the service.
If the Group is paid for the construction services partly by a financial asset
and partly by an intangible asset, it is necessary to account separately
for each component of the Group’s consideration. The consideration
received or receivable for both components shall be recognised initially
at fair value.
Borrowing costs attributable to the arrangements shall be recognised as
an expense in the period in which they are incurred unless the Group
has a contractual right to receive an intangible asset (a right to charge
users of the public service). In this case, borrowing costs attributable
to the arrangements shall be capitalised during the construction phase
of the arrangements.