Page 349 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited 6.4 Notes to Consolidated Financial Statements 347
Annual Report 2021/22

51.3 Fair Value of Financial Instruments g) The fair value of receivables due in the future under agreements with
The methods and assumptions used by the Group in estimating the fair government authorities has been determined by using a discounted
value of financial instruments are as follows: future cash flow with discounted rate adjusted by related risk.

a) For financial assets and liabilities which carry interest approximate to h) For long-term loans carrying interest approximate to the market
market rate or have short-term maturity, including cash and cash at rate, their carrying amounts in the statement of financial position
banks, accounts receivable, short-term loans, investments, advances, approximates their fair value.
accounts payable and short-term borrowings, their carrying amounts
in the statement of financial position approximate their fair value. i) For fixed rate debentures, their fair value is determined by using the
prices as announced by the Thai Bond Market Association.

b) The fair value of equity securities is generally derived from quoted
market prices, or based on generally accepted pricing models when j) For derivatives, their fair value has been determined by using a
no market price is available. discounted future cash flow model and a valuation model technique.
Most of the inputs used for the valuation are observable in the relevant

c) The fair value of warrants is generally derived from quoted market market, such as spot rates of foreign currencies, yield curves of the
prices. respective currencies and interest rate yield curves. The Group had
considered to counterparty credit risk when determining the fair value
d) The fair value of investments in unit trust in equity and fixed income of derivatives.
funds has been determined using net asset value at the reporting
date and translated exchange rate for financial assets in foreign During the current year, there were no transfers within the fair value
currency. hierarchy.

e) The fair value of investments in debt instruments has been determined
by using the yield curve as announced by the Thai Bond Market
Association or using prices from reliable financial service provider
or using a discounted future cash flow model and a valuation model
technique by using discounted rate adjusted related risks.

f) The fair value of derivative warrants has been determined by using a
valuation model technique. Most of the inputs used for the valuation
are observable in the relevant market, such as underlying price,
exercise price and interest rate.