Page 127 - รายงานประจำปี 2566

Tokio Marine Safety Insurance (Thailand) Public Company Limited
Notes to the Financial Statements

Tokio Marine Safety Insurance (Thailand) Public Company Limited
For the year ended 31 December 2023
Notes to the Financial Statements
For the year ended 31 December 2023

3 New and amended financial reporting standards

3.1 Amended financial reporting standards that are effective for the accounting period
beginning on or after 1 January 2024 and have impacts to the Company.
Certain amended financial reporting standards have been issued that are not mandatory for current
reporting period and have not been early adopted by the Company.

a) Amendment to TAS 1 - Presentation of financial statements revised the disclosure from
‘significant accounting policies’ to ‘material accounting policies’. The amendment also provides
guidelines on identifying when the accounting policy information is material. Consequently,
immaterial accounting policy information does not need to be disclosed. If it is disclosed,
it should not obscure material accounting information.

b) Amendment to TAS 8 - Accounting policies, changes in accounting estimates and errors
revised to the definition of ‘accounting estimates’ to clarify how companies should distinguish
between changes in accounting policies and changes in accounting estimates. The distinction is
important because changes in accounting estimates are applied prospectively to transactions,
other events and conditions from the date of that change. Whereas changes in accounting policies
are generally applied retrospectively to past transactions and other past events as well as the
current period as if the new accounting policy had always been applied.
c) Amendments to TAS 12 - Income taxes require companies to recognise deferred tax
related to assets and liabilities arising from a single transaction that, on initial recognition, gives
rise to equal amounts of taxable and deductible temporary differences. Example transactions are
leases and decommissioning obligations.

The amendment should be applied to transactions on or after the beginning of the earliest
comparative period presented. In addition, entities should recognise deferred tax assets
(to the extent that they can probably be utilised) and deferred tax liabilities at the beginning
of the earliest comparative period for all deductible and taxable temporary differences associated with:
 right-of-use assets and lease liabilities, and
 decommissioning, restoration and similar liabilities, and the corresponding amounts recognised
as part of the cost of the related assets.
The cumulative effect of recognising these adjustments is recognised at the beginning of
retained earnings or another component of equity, as appropriate.
The Company’s management is currently assessing the impacts from these standards.
3.2 Amended financial reporting standards that is effective for the accounting period
beginning on or after 1 January 2025 and has significant impacts on the Company.
a) TFRS 17 Insurance Contracts TFRS 17 has replaced TFRS 4 Insurance Contracts.

It requires a current measurement model where estimates are remeasured in each reporting
period. Contracts are measured using the building blocks of:

 discounted probability-weighted cash flows
 an explicit risk adjustment, and
 a contractual service margin (CSM) representing the unearned profit of the contract which is
recognised as revenue over the coverage period.
The standard allows a choice between recognising changes in discount rates either in the
statement of profit or loss or directly in other comprehensive income. The choice is likely to
reflect how insurers account for their financial assets under TFRS 9.
An optional, simplified premium allocation approach is permitted for the liability for the remaining
coverage for eligible groups of insurance contracts, which are often written by non-life insurers.

10
รายงานประจำาปี 2566 | ANNUAL REPORT 2023 | 127