PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED AND SUBSIDIARIES FOR THE YEAR ENDED DECEMBER 31, 2021 NOTES TO THE FINANCIAL STATEMENTS - 8 - 3.3 Cash and cash equivalents Cash and cash equivalents are cash on hand and all types of deposits at bank and financial institutions with original maturity of three months or less from the date of acquisition, excluding deposits at banks used as collateral. (if any) 3.4 Trade and other receivables Trade and other receivables are stated at their invoice value less allowance for expected credit losses. The allowance for expected credit losses is disclosed in Note 3.6. 3.5 Inventories Inventories are stated at the lower of cost or net realisable value. Cost is calculated using the weighted average cost principle, and comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. In the case of manufactured inventories and work-in-progress, cost includes an appropriate share of production overheads based on normal operating capacity. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs to complete and to make the sale. Provision is made for obsolete and slow-moving of finished goods, raw materials, factory supplies and spare parts based on the items that are obsoleted and expected to be unsalable. 3.6 Financial Instruments The Group shall recognise a financial asset or a financial liability in its statement of financial position only when the Group becomes party to the contractual provisions of the instrument. Recognition, Measurement and Classification of financial assets Regular way of purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised only when the rights to receive cash flows from the financial assets have expired or when the Group has transferred the financial assets which transferred substantially all the risks and rewards of ownership of the financial assets. At initial recognition, the Group measures a financial asset as follows: - A financial asset measured at amortised cost and a financial asset measured at fair value through other comprehensive income are measured at theirs fair value, plus transaction costs that are directly attributable to the acquisition or issuance of the financial assets. - A financial asset measured at fair value through profit or loss is measured at its fair value. Transaction costs are expensed in profit or loss. 240 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2021
RkJQdWJsaXNoZXIy ODg4NTI=