148
Annual Report
2013
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
Notes to the financial statements
27
(p) Revenue
Revenue excludes value added taxes and is arrived at after deduction of trade discounts.
Sale of electricity
Revenue from sale of electricity comprises Availability Payments and Energy Payments. Availability
Payments are recognised according to the term set out in the Power Purchase Agreement as conditions
are met, essentially Contract Availability Hours, net amount of sales taxes and discounts. Energy
Payments are calculated based on actual electricity delivered and monthly payment rates which refer to
changes in the natural gas price specified in the agreement.
Another revenue from the sale of electricity apart from the Power Purchase Agreement is recognised
in the statement of income based on the units of sales delivered at the applicable tariff rates.
Service income
Service income is recognised as services are provided.
Rental income
Rental income is recognised in the statement of income on a straight-line basis over the term of the
lease. Lease incentives granted are recognised as an integral part of the total rental income. Contingent
rentals are recognised as income in the accounting period in which they are earned.
Interest, other income and dividend
Interest and other income are recognised in the statement of income as it accrues. Dividend income is
recognised in the statement of income on the date the Group’s/Company’s right to receive payments is
established.
(q) Expenses
Lease payments
Payments made under operating leases are recognised in the statement of income on a straight-line
basis over the term of the lease. Contingent lease payments are accounted for by revising the
minimum lease payments over the remaining term of the lease when the lease adjustment is
confirmed.
Determining whether an arrangement contains a lease
At inception of an arrangement, the Group/Company determines whether such an arrangement is or
contains a lease. A specific asset is the subject of a lease if fulfilment of the arrangement is dependent
on the use of that specified asset. An arrangement conveys the right to use the asset if the arrangement
conveys to the Group/Company the right to control the use of the underlying asset.
At inception or upon reassessment of the arrangement, the Group/Company separates payments and
other consideration required by such an arrangement into those for the lease and those for other
elements on the basis of their relative fair values. If the Group/Company concludes for a finance lease
that it is impracticable to separate the payments reliably, an asset and a liability are recognised at an
amount equal to the fair value of the underlying asset. Subsequently the liability is reduced as
payments are made and an imputed finance charge on the liability is recognised using the
Group’s/Company’s incremental borrowing rate.
otes to the financial statements
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
