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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

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets and liabilities and when the deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are offset where the entity has a legally
enforceable right to offset and intends either to settle on a net basis, or to realise the asset and
settle the liability simultaneously.

4.16 Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a
result of past events, it is probable that an outflow of resources will be required to settle the
obligation, and the amount has been reliably estimated.
Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect to any one item included in the same class of
obligations may be small.

4.17 Foreign currency translation

(a) Functional and presentation currency
The financial statements are presented in Thai Baht, which is the Company’s functional and
presentation currency
(b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions.

Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the profit or loss.
Any exchange component of gains and losses on a non-monetary item that recognised in
profit or loss, or other comprehensive income is recognised following the recognition of a
gain or loss on the non-monetary item.

4.18 Recognition of revenues and expenses
Revenue and expense include all revenues and expenses from ordinary business activities. All
ancillary income in connection with non-life insurance services in the course of the Company’s
ordinary activities are also presented as revenue.

(a) Premium
Premium income consists of direct premium and reinsurance premium. Premium income
is recognised as revenue on the effective date of the related insurance policies net of
premium of canceled policies, premiums refunded to policy holders, reinsurance ceded
and change in unearned premium reserve. For long-term insurance policies with coverage
the years of longer than 1 year, related revenues are recorded as unearned items, and
recognised as income over the coverage year.

(b) Ceded premium

Reinsurance premium income is recognised as income when the reinsurer places the
reinsurance application or the statement of accounts with the Company.

Ceded premium is recognised as expenses when the insurance risk is transferred to reinsurer.

134 | รายงานประจำาปี 2566 | ANNUAL REPORT 2023 17