144
Annual Report
2013
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
Notes to the financial statements
23
The fair value of financial instruments classified as available-for-sale is determined as the quoted bid
price at the reporting date.
Disposal of investments
On disposal of an investment, the difference between net disposal proceeds and the carrying amount
together with the associated cumulative gain or loss that was reported in equity is recognised in profit
or loss.
If the Group/Company disposes of part of its holding of a particular investment, the deemed cost of
the part sold is determined using the weighted average method applied to the carrying value of the
total holding of the investment.
(h) Property, plant and equipment
Recognition and measurement
Owned assets
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labour, any other costs directly attributable
to bringing the assets to a working condition for their intended use, the costs of dismantling and
removing the items and restoring the site on which they are located and capitalised borrowing costs.
Cost also may include transfers from other comprehensive income of any gain or loss on qualifying
cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software
that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted
for as separate items (major components) of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and equipment are determined by
comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and
are recognised net within other income in profit or loss. When revalue assets are sold, the amounts
included in the revaluation reserve are transferred to retained earnings.
Leased assets
Leases in terms of which the Group/Company substantially assumes all the risk and rewards of
ownership are classified as finance leases. Equipment acquired by way of finance leases is capitalised
at the lower of its fair value and the present value of the minimum lease payments at the inception of
the lease, less accumulated depreciation and impairment losses. Lease payments are apportioned
between the finance charges and reduction of the lease liability so as to achieve a constant rate of
interest on the remaining balance of the liability. Finance charges are charged directly to the profit or
loss.
Subsequent costs
The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will
flow to the Group/Company, and its cost can be measured reliably. The carrying amount of the
replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment
are recognised in profit or loss as incurred.
otes to the financial statements
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
