Ratchaburi Electricity Generating Holding PCL.
143
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
Notes to the financial statements
22
(d) Cash and cash equivalents
Cash and cash equivalents comprise cash balances, call deposits, saving and highly liquid short-term
investments.
(e) Trade and other accounts receivable
Trade and other accounts receivable are stated at their invoice value less allowance for doubtful
accounts.
The allowance for doubtful accounts is assessed primarily on analysis of payment histories and future
expectations of customer payments. Bad debts are written off when incurred.
(f) Spare parts and supplies
Spare parts and supplies are stated at cost less allowance for obsolescence.
The spare parts are categorised as fuel and spare parts which are used for specific plant equipment in
the power plant.
Cost is calculated using the moving average cost principle, and comprises all costs of purchase and
other costs incurred in bringing the inventories to their present location and condition.
The allowance for specific spare parts is calculated using the straight-line method to write off the
balances of specific spare parts on hand at the year-end over the remaining useful life of the power
plant.
(g) Investments
Investments in subsidiaries, jointly-controlled and associate entities
Investments in subsidiaries, jointly-controlled and associates entities in the separate financial
statements of the Company are accounted for using the cost method. Investments in jointly-controlled
entities in the associates and consolidated financial statements are accounted for using the equity
method.
Investments in other debt and equity securities
Debt securities and marketable equity securities held for trading are classified as current assets and are
stated at fair value, with any resultant gain or loss recognised in profit or loss.
Debt securities that the Group/Company has the positive intent and ability to hold to maturity are
classified as held-to-maturity investments. Held-to-maturity investments are stated at amortised cost,
less any impairment losses. The difference between the acquisition cost and redemption value of such
debt securities is amortised using the effective interest rate method over the period to maturity.
Marketable equity securities, other than those securities held for trading or intended to be held to
maturity, are classified as available-for-sale investments. Available-for-sale investments are,
subsequent to initial recognition, stated at fair value, and changes therein, other than impairment losses
and foreign currency differences on available-for-sale monetary items, are recognised directly in
equity. Impairment losses and foreign exchange differences are recognised in profit or loss. When
these investments are derecognised, the cumulative gain or loss previously recognised directly in
equity is recognised in profit or loss. Where these investments are interest-bearing, interest calculated
using the effective interest method is recognised in profit or loss.
Equity securities which are not marketable are stated at cost less any impairment losses
.
otes to the financial statements
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
