Page 243 - BTSGroup ONE REPORT 2021/22_EN
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BTS Group Holdings Public Company Limited 6.4 Notes to Consolidated Financial Statements 241
Annual Report 2021/22
Financial statement of associate that the Group hold less than 20% Estimating the incremental borrowing rate - The Group as a lessee
The management of the Group determined that the Group has significant The Group cannot readily determine the interest rate implicit in the lease,
influence over Jay Mart Public Company Limited even though the Group therefore, the management is required to exercise judgement in
hold 14.58% of shares and voting rights. This is because the Group has estimating its incremental borrowing rate to discount lease liabilities.
significant influence and has representation on the boards of directors of The incremental borrowing rate is the rate of interest that the Group would
such company. The investments in the above companies are therefore have to pay to borrow over a similar term, and with a similar security,
presented as investment in associates under the equity method in the the funds necessary to obtain an asset of a similar value to the right-of-use
consolidated financial statements. asset in a similar economic environment.
Service concession arrangements Allowance for expected credit losses
In recording transactions under service concession arrangements, In determining an allowance for expected credit losses, the management
the management had to exercise significant judgement with respect needs to make judgement and estimates based upon, among other
to analysis of the contents of the agreements and the recording things, past collection history, aging profile of outstanding debts,
of the accounting transactions in accordance with the scope of the expected future cash-inflows and the forecast economic condition
Thai Financial Reporting Standard Interpretations 12 Service Concession for groupings of various customer segments with similar credit risks.
Arrangements including the process of recognition and measurement The Group’s historical credit loss experience and forecast economic
and the determination of appropriate timing of recognition of revenues conditions may also not be representative of whether a customer will
relating to service concession arrangements. actually default in the future.
Leases Fair value of financial instruments
Determining the lease term with extension and termination options - In determining the fair value of financial instruments recognised in the
The Group as a lessee statement of financial position that are not actively traded and for which
In determining the lease term, the management is required to exercise quoted market prices are not readily available, the management exercise
judgement in assessing whether the Group is reasonably certain to judgement, using a variety of valuation techniques and models.
exercise the option to extend or terminate the lease considering all The input to these models is taken from observable markets, and includes
relevant facts and circumstances that create an economic incentive for consideration of credit risk, liquidity, correlation and longer-term volatility
the Group to exercise either the extension or termination option. of financial instruments. Change in assumptions about these factors
could affect the fair value recognised in the statement of financial position
and disclosures of fair value hierarchy.