Page 102 - PEA_AnnualReport_2016

3.9 Constructions in progress
Constructions in progress include construction costs, borrowing costs incurred on direct costs associated with
the borrowing of funds used for the construction, and other costs which are directly related to construction or
preparation of the property for its intended use. Constructions in progress do not include calculation of depreciation.

3.10 Intangible assets
Intangible assets comprise of computer software licenses and computer software systems for core
business that are stated at cost less accumulated amortization and allowance for impairment of assets (if any).
Amortization of computer software licenses and computer software systems for core business is calculated
using the straight-line method over the lease period and recognized as expenses in the statements of
comprehensive income.
Impairment loss of intangible assets will be recognized as other operating expenses in the statements of

comprehensive income when incurred.

3.11 Foreign currency transactions
Foreign currency transactions are translated into Thai Baht by using the exchange rates prevailing at the
transaction date. onetary assets and liabilities at the statements of fnancial position date which are denominated
in foreign currencies are translated into Baht at the reference exchange rates announced by the Bank of Thailand
at such date. Gains or losses on exchange arising on settlements and translations are recognized as revenues
or expenses for the period when incurred.

3.12 Financial instruments
inancial assets, presented at the statement of fnancial position date of rovincial lectricity uthority,
comprise of cash and cash equivalents, and trade accounts receivable. Financial liabilities are obligations under
contracts comprising trade accounts payable, other payables, other current liabilities, short-term loans, and
long-term loans.

3.13 Long term provisions
rovincial lectricity uthority records the provisions in the statements of fnancial position if rovincial
Electricity Authority has contingent liabilities arising from legal claims or result of a past events which is probable
that an outfow of resources embodying economic benefts will be required to settle the obligations, and it can be
estimated with suffcient reliability. The actual results may differ from those estimates.
Provincial Electricity Authority recognizes the provisions with the best estimate of the expenditure required

to settle the present obligation at the statement of fnancial position date by considering risks and uncertainties
that inevitably surround obligations. The provisions are measured based on expected cash fows associated
with the present obligation as present value of the expected cash fows associated with that present obligation.
rovisions due within one year are classifed as short-term provisions and provisions due more than one
year are classifed as long-term provisions.

102 SMART PEA
Annual Report 2016 Provincial Electricity Authority