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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

A defined retirement benefit plan is a post-employment benefit plan other than a defined contribution
plan. The Company’s net obligation in respect of defined retirement benefit plans is calculated
separately for each plan by estimating the amount of future benefit that employees have earned in
return for their service in the current and prior years; that benefit is discounted to determine its
present value. The discount rate is the yield at the reporting date on government bonds that have
maturity dates approximating the terms of the Company’s obligations. The calculation is performed by
a qualified actuary using the projected unit credit method. The Company recognises all actuarial
gains and losses arising from defined retirement benefit plan in other comprehensive income and all
expenses related to defined retirement benefit plans in personnel expenses in profit or loss.

Past-service cost are recognised immediately in profit or loss.
Other long-term employee benefits

The Company’s net obligation in respect of long-term employee benefits is the amount of future
benefit that employees have earned in return for their service in the current and prior periods.
That benefit is discounted to determine its present value.
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 Company 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.

4.15 Current and deferred income taxes
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit
or loss, except to the extent that it relates to items recognised in other comprehensive income
or directly in equity.

Current tax
The current income tax is calculated on the basis of the tax laws enacted or substantively
enacted at the end of the reporting period. Management periodically evaluates positions taken
in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It
establishes provisions where appropriate on the basis of amounts expected to be paid to the tax
authorities.

Deferred income tax
Deferred income tax is recognised on temporary differences arising from differences between
the tax base of assets and liabilities and their carrying amounts in the financial statements.
However, deferred income tax is not recognised for temporary differences arise from:

- initial recognition of an asset or liability in a transaction other than a business combination
that affects neither accounting nor taxable profit or loss is not recognised
- investments in subsidiaries, associates and joint arrangements where the timing of the
reversal of the temporary difference is controlled by the Group and it is probable that the
temporary difference will not reverse in the foreseeable future.

Deferred income tax is measured using tax rates of the period in which temporary difference is
expected to be reversed, based on tax rates and laws that have been enacted or substantially
enacted by the end of the reporting period.

Deferred tax assets are recognised only to the extent that it is probable that future taxable profit
will be available against which the temporary differences can be utilised.

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รายงานประจำาปี 2566 | ANNUAL REPORT 2023 | 133