SCI Annual Report 2015

SCI ELECTRIC PUBLIC COMPANY LIMITED AND ITS SUBSIDIARIES
(FORMERLY KNOW AS “SCI ELECTRIC MANUFACTURER COMPANY LIMITED”)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE TEAR ENDED 31 DECEMBER 2015
3.5 Translation of foreign currency financial statements
The financial statements of subsidiaries in other country have been prepared in the currency of the US Dollar. The
results and financial position of all the group entities (none of which has the currency of a hyper-inflationary
economy) that have a functional currency different from the presentation currency are translated into the
presentation currency as follows:
• Assets and liabilities for each statement of financial position presented are translated at the closing rate
at the date of that statement of financial position;
• Income and expenses for each statement of comprehensive income are translated at average exchange
rates; and
• All resulting exchange differences are recognised as a separate component of equity.
Annual Report 2015
3.6 Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less. In the consolidated and Company statement of financial
position, bank overdrafts are shown in current liabilities.
3.7 Trade accounts receivable
Trade accounts receivable are carried at the original invoice amount and subsequently measured at the remaining
amount less any allowance for doubtful receivables based on a review of all outstanding amounts at the year-end.
The amount of the allowance is the difference between the carrying amount of the receivable and the amount
expected to be collectible. Bad debts are written-off during the year in which they are identified and recognised in
profit or loss within administrative expenses.
3.8 Investments
Investments other than investments in subsidiaries are classified into trading investments and available-for-sale
investments. The classification is dependent on the purpose for which the investments were acquired. Management
determines the appropriate classification of its investments at the time of the purchase and re-evaluates such
designation on a regular basis.
Investments that are acquired principally for the purpose of generating a profit from short-term fluctuations
in price are classified as trading investments and included in current assets.
Investments intended to be held for an indefinite period of time, which may be sold in response to liquidity
needs or changes in interest rates, are classified as available-for-sale; and are included in non-current assets unless
management has expressed the intention of holding the investment for less than 12 months from the statement of
financial position date or unless they will need to be sold to raise operating capital, in which case they are included
in current assets.
Trading investments and available for sale investments are subsequently measured at fair value. The fair value
of investments is based on quoted bid price at the close of business on the statement of financial position date by
reference to the Stock Exchange of Thailand and the Thai Bond Dealing Centre. The unrealised gains and losses of
trading investments are recognised in income statement. The unrealised gains and losses of available for sale
investments are recognised in other comprehensive income.
On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is
charged or credited to the profit or loss.
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