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EN_Tipco_Annual Report 2014

ANNUAL REPORT 2014 3. Summary of Significant Accounting Policies 3.1. Measurement Basis Used In Preparing The Financial Statements Historical cost is used as measurement basis in preparing these financial statements except some items indicated in relevant notes. 3.2. Cash and Cash Equivalents Cash represents cash on hand and demand deposits with banks. Cash equivalents comprise fixed deposit and short-term highly liquid investments which are not restricted in their uses, and that are readily convertible to known amount of cash and which are subject to an insignificant risk of change in value, such as deposit expiring less than 3 months from acquisition date or investments. 3.3. Trade Receivables Trade receivables are stated at net realizable value which are the amount of invoices netted from the allowance for doubtful account. Allowance for doubtful account is based on the estimated uncollectible amounts by considering from the present financial status of each account receivable. Besides, the management of company and its subsidiaries will also provide the allowance for doubtful accounts by considering from the status of each account receivable. 3.4. Inventories Inventories are valued at cost or net realizable value, whichever is lower. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale. The costs of purchased inventories comprise the purchase price and other costs directly attributed to the acquisition of goods. Manufacturing cost of finished good and work in process comprise raw materials, labour and manufacturing overhead. The cost of inventories are calculated as follow : Raw material, spare parts and factory supplies - Valued at cost price under average method. Work in procsess - Valued at production cost price under average method. Finished goods - Valued at production cost price under average method. The Company and its subsidiary provided the allowance for expired goods from the goods which were considered to expire and expected to damage. 3.5. Investments Available-for-sale investments represent investments in marketable equity securities-available for sale, which was accounted for at fair value (the lasted bid price) as at the close of business on the Statements of Financial Position date by reference to the Stock Exchange of Thailand. Unrealized gain (loss) on adjustment of the investments value are recognized in shareholder’ equity


EN_Tipco_Annual Report 2014
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