140
Annual Report
2013
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
Notes to the financial statements
19
The change in basis of presentation and disclosure of segment information in accordance with TFRS 8
has resulted in the Group/Company presenting segment information (Note 22) in respect of the
following segments:
Segment 1
Generating Electricity
Segment 2
Operation and Maintenance
Segment 3
Others
4 Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these
financial statements except as explained in note 3, which addresses changes in accounting policies.
(a) Basis of consolidation
The consolidated financial statements relate to the Company and its subsidiaries (together referred to
as the “Group”) and the Group’s interests in jointly-controlled and associate entities.
The Group/Company applies the acquisition method for all business combinations other than those
with entities under common control.
Control is the power to govern the financial and operating policies of an entity so as to obtain benefits
from its activities. In assessing control, the Group/Company takes into consideration potential voting
rights that currently are exercisable. The acquisition date is the date on which control is transferred to
the acquirer. Judgment is applied in determining the acquisition date and determining whether control
is transferred from one party to another.
Goodwill is measured as the fair value of the consideration transferred including the recognized
amount of any non-controlling interest in the acquiree, less the net recognised amount (generally fair
value) of the identifiable assets acquired and liabilities assumed, all measured as of the acquisition
date.
Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the
Group/Company to the previous owners of the acquiree, and equity interests issued by the
Group/Company. Consideration transferred also includes the fair value of any contingent
consideration and share-based payment awards of the acquiree that are replaced mandatorily in the
business combination. If a business combination results in the termination of pre-existing relationships
between the Group/Company and the acquiree, then the lower of the termination amount, as contained
in the agreement, and the value of the off-market element is deducted from the consideration
transferred and recognised in other expenses.
A contingent liability of the acquiree is assumed in a business combination only if such a liability
represents a present obligation and arises from a past event, and its fair value can be measured
reliably.
The Group/Company measures any non-controlling interest at its proportionate interest in the
identifiable net assets of the acquiree.
Transaction costs that the Group/Company incurs in connection with a business combination, such as
legal fees, and other professional and consulting fees are expensed as incurred.
otes to the financial statements
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
