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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
4.11 Impairment of assets
Assets that have an indefinite useful life are not subject to amortisation and are tested annually
for impairment. Assets that are subject to amortisation are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the carrying amount of the assets
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at
the lowest level for which there are separately identifiable cash flows. Non-financial assets that
suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.
4.12 Leases - where the Company is the lessee
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which
the leased asset is available for use by the Company. Each lease payment is allocated between
the liability and finance cost. The finance cost is charged to profit or loss over the lease period
so as to produce a constant periodic rate of interest on the remaining balance of the liability for
each period. The right-of-use asset is depreciated over the lease term on a straight-line basis.
Contracts may contain both lease and non-lease components. The Company allocates the
consideration in the contract to the lease and non-lease components based on their relative
stand-alone prices. However, for leases of real estate for which the Company is a lessee, it has
elected not to separate lease and non-lease components and instead accounts for these as a
single lease component
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease
liabilities include the net present value of the following lease payments:
fixed payments (including in-substance fixed payments), less any lease incentives receivable,
and
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising
that option.
Lease payments to be made under reasonably certain extension options are also included in the
measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate
cannot be determined, the lessee’s incremental borrowing rate is used, being the rate that the
lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a
similar economic environment with similar terms and conditions.
Right-of-use assets are measured at cost comprising the following:
the amount of the initial measurement of lease liability
any lease payments made at or before the commencement date less any lease incentives
received
any initial direct costs, and
Payments associated with short-term leases and leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of
12 months or less. Low-value assets comprise IT-equipment and small items of office furniture.
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รายงานประจำาปี 2566 | ANNUAL REPORT 2023 | 131