Ratchaburi Electricity Generating Holding PCL.
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Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
Notes to the financial statements
18
3 Changes in accounting policies
(a) Overview
From 1 January 2013, consequent to the adoption of new and revised TFRS as set out in note 2, the
Group/Company has changed its accounting policies in the following areas:
Accounting for government grants and disclosures of government assistance
Accounting for the effects of changes in foreign exchange rates
Presentation of information on operating segments
Details of the new accounting policies adopted by the Group/Company are included in notes 3(b) to
3(d) below. Other new and revised TFRS did not have any impact on the accounting policies, financial
position or performance of the Group/Company.
(b) Accounting for government grants and disclosures of government assistance
TAS 20 requires government grants related to assets in the statement of financial position either by
deducting the grant in arriving at the carrying amount of the asset or setting up the grant as deferred
income.
The Group/Company chooses setting up the grant as deferred income from the effective date of the
standard.
(c) Accounting for the effects of changes in foreign exchange rates
From 1 January 2013, the Group/Company has adopted TAS 21. Accounting for the effects of changes
in foreign exchange rates.
The principal change introduced by TAS 21 is the introduction of the concept of functional currency,
which is defined as the currency of the primary economic environment in which the entity operates.
TAS 21 requires the entity to determine its functional currency and translate foreign currency items
into its functional currency, reporting the effects of such translation in accordance with the provisions
of TAS 21. Foreign currencies are defined by TAS 21 as all currencies other than the entity’s
functional currency.
Management has determined that the functional currency of the Company is Thai Baht and that the
adoption of TAS 21 from 1 January 2013 has not had a significant impact on the Group’s/Company’s
reported assets, liabilities or retained earnings.
(d) Presentation of information on operating segments
TFRS 8 introduces the “management approach” to segment reporting. It requires a change in the
presentation and disclosure of segment information based on the internal reports regularly reviewed by
the Group’s/Company’s Chief Operating Decision Maker in order to assess each segment’s
performance and to allocate resources to those segments. Previously the Group/Company presented
segment information in respect of its business in accordance with TAS 14 Segment Reporting.
otes to the financial statements
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
