Ratchaburi Electricity Generating Holding PCL.
141
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
Notes to the financial statements
20
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power,
directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits
from its activities. The financial statements of subsidiaries are included in the consolidated financial
statements from the date that control commences until the date that control ceases.
The accounting policies of subsidiaries have been changed where necessary to align them with the
policies adopted by the Group. Losses applicable to non-controlling interests in a subsidiary are
allocated to non- controlling interests even if doing so causes the non-controlling interests to have a
deficit balance.
Jointly-controlled and associate entities
Jointly-controlled and associate entities are those entities in which the Group has significant influence,
but not control, over the financial and operating policies. Significant influence is presumed to exist
when the Group holds between 20% and 50% of the voting power of another entity. Jointly-controlled
entities are those entities over whose activities the Group has joint control, established by contractual
agreement and requiring unanimous consent for strategic financial and operating decisions
Investments in associates jointly-controlled and associate entities are accounted for in the
consolidated financial statements using the equity method (equity-accounted investees) and are
recognised initially at cost. The cost of the investment includes transaction costs.
The consolidated financial statements include the Group’s share of profit or loss and other
comprehensive income, after adjustments to align the accounting policies with those of the Group,
from the date that significant influence commences until the date that significant influence ceases.
When the Group’s share of losses exceeds its interest in an associate, the Group’s carrying amount is
reduced to nil and recognition of further losses is discontinued except to the extent that the Group has
incurred legal or constructive obligations or made payments on behalf of the associate.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements. Unrealised gains
arising from transactions with jointly-controlled and associate entities are eliminated against the
investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the
same way as unrealised gains, but only to the extent that there is no evidence of impairment.
(b) Foreign currencies
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the group
entities at the foreign exchange rates ruling at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to
functional currency at the foreign exchange rates ruling at that date. Foreign exchange differences
arising on translation are recognised in profit or loss
Notes to the financial statements
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
