Page 129 - 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

4.5 Reinsurance assets
Reinsurance assets are stated at insurance reserve refundable from reinsurers.

Insurance reserve refundable from reinsurers is estimated based on the related reinsurance contract
of premium reserve and loss reserve and outstanding claims.

4.6 Amount due from and due to reinsurers

(a) Amount due from reinsurance are stated at the outstanding balance of amount due from
reinsurers and amounts deposit on reinsurance.

Amounts due from reinsurers consist of accrued brokerage income, claims and various
other items receivable from reinsurers less allowance for doubtful accounts. The Company
records allowance for doubtful accounts for the estimated losses that may be incurred due
to inability to make collection, taking into account collection experience and the status of
receivables from reinsurers as at the end of the reporting the year.

(b) Amounts due to reinsurers are stated at the outstanding balance payable from reinsurance
and amounts withheld on reinsurance.

Amounts due to reinsurers consist of reinsurance premiums claims and other items payable
to reinsurers.

4.7 Financial asset

a) Classification
The Company classifies its debt instrument financial assets in the following measurement categories
depending on i) business model for managing the asset and ii) the cash flow characteristics of the
asset whether they represent solely payments of principal and interest (SPPI).

 those to be measured subsequently at fair value (either through other comprehensive income
or through profit or loss); and
 those to be measured at amortised cost.
The Company reclassifies debt investments when and only when its business model for
managing those assets changes.
For investments in equity instruments, the Company has an irrevocable election at the
time of initial recognition to account for the equity investment at fair value through profit or
loss (FVPL) or at fair value through other comprehensive income (FVOCI) except those
that are held for trading, they are measured at FVPL.

b) Recognition and derecognition

Regular way purchases, acquires and sales of financial assets are recognised on trade-date, the
date on which the Company receive the asset. Financial assets are derecognised when the rights
to receive cash flows from the financial assets have expired or have been transferred and the
Company has transferred substantially all the risks and rewards of ownership.
c) Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the
case of a financial asset not at FVPL, transaction costs that are directly attributable to the
acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are
expensed in profit or loss.

12
รายงานประจำาปี 2566 | ANNUAL REPORT 2023 | 129