PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED AND SUBSIDIARIES FOR THE YEAR ENDED DECEMBER 31, 2021 NOTES TO THE FINANCIAL STATEMENTS - 16 - Short-term employee benefits Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. 3.14 Provisions A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount on provisions is recognised as finance cost. 3.15 Repurchase of share capital (treasury stock) When share capital recognised as equity is repurchased, the amount of consideration paid, including directly attributable costs, is classified as treasury stock and recognised as a deduction from equity. An equal amount is appropriated from retained earnings and taken to a reserve for treasury stock within equity. When treasury stock are sold, the amount received is recognised as an increase in equity by crediting the cost of the treasury stock sold, calculated using the weighted average method, to the treasury stock account and transferring the equivalent amount back from treasury stock reserve to retained earnings. Surpluses on the sale of treasury stock are taken directly to a separate category within equity, ‘Premium on treasury stock’. Net deficits on sale or cancellation of treasury stock are debited to retained earnings after setting off against any remaining balance of premium on treasury stock. 3.16 Revenue Revenue excludes value added taxes and is arrived at after deduction of trade discounts. Revenues from sale of goods and rendering of services Revenues from sale of goods is recognised when control of the goods has transferred to the customer, being at the point the goods are delivered to the customer. Revenues from rendering of services is recognised as a performance obligation satisfied at a point in time when services underlying the particular performance obligation is transferred to the customer or is recognised over time based on the stage of completion of the contract. Investment income Investment income consists of dividend income, interest income from investments and bank deposits, and net gain or loss arises from financial assets or financial liability measured at FVTPL. Dividend income is recognised in profit or loss on the date the Group’s right to receive payments is established. Interest income is recognised on a time basis, based on the principle outstanding and the applicable interest rate. Other income Other income is recognised on an accrual basis. 3.17 Finance costs Finance costs is recognised using the effective interest method and comprise interest expense on borrowings, unwinding of the discount on provisions and contingent consideration. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method 248 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2021
RkJQdWJsaXNoZXIy ODg4NTI=