Page 97 - PEA_AnnualReport_2016

Notes To The Financial Statements
The Provincial Electricity Authority
and Its Subsidiary

For The Year Ended December 31, 2016

1. General Information
The Provincial Electricity Authority was established as a state enterprise for public utility under the Provincial
Electricity Authority Act, B.E. 2503 (1960) and is located at 200 Ngamwongwan Road, Ladyao, Chatuchak, Bangkok

10900. The main objective of Provincial Electricity Authority is to generate, obtain, distribute and sell electricity
energy to people, businesses and industrial sectors in 74 provinces throughout Thailand, with the exception of
Bangkok, Nonthaburi, and Samut Prakan provinces.
The Provincial Electricity Authority has extensive transactions and relationships with the Electricity Generating
Authority of Thailand (EGAT). Most of electricity energy sold to customers by Provincial Electricity Authority was
purchased from T. ccordingly, the fnancial statements may not necessarily be indicative of the conditions
that would have existed or the results of operations that would have occurred if Provincial Electricity Authority
has operated without such affliations.

2. Basis of Financial Statements Presentation
2.1 Basis of consolidated and separate fnancial statements preparation

The consolidated and the separate fnancial statements have been prepared in accordance with Thai
Financial Reporting Standards and generally accepted accounting principles under Accounting Act, B.E. 2543
(2000), which include accounting standards under the Accounting Profession Act, B.E. 2547 (2004), including
interpretations and guidelines promulgated by the ederation of ccounting rofessions ( ), and the notifcation
of the epartment of usiness evelopment efnition of the abbreviated components required in the inancial
Statements, B.E. 2554 (2011)”, dated September 28, B.E. 2554 (2011).
The consolidated and the separate fnancial statements have been prepared under the historical cost
convention with the exception as disclosed in ote 3 Summary of Signifcant ccounting olicies.
onso i at finan ia stat nts include fnancial statements of rovincial lectricity uthority and fnancial
statements of its subsidiary, PEA Encom International Company Limited after elimination of related company
transactions and balances. PEA Encom International Co., Ltd. was established in Thailand in which Provincial
Electricity Authority has controlled and held over 50% of paid-up share capital.
Shareholding proportion and amount of investments in associates and investments in subsidiary are
presented in Notes 5.8 and 5.9, respectively.
Investment in associates are recorded in the consolidated fnancial statements under the equity method.
parat finan ia stat nts include fnancial statements of rovincial lectricity uthority which include
transactions of PEA Employee Gratuity Fund and investments in subsidiary and associates are recorded under
the cost method.

This nglish translation of the fnancial statements has been prepared from the statutory fnancial
statements that were issued in Thai language. In the event of a confict or a difference in interpretation between
the two languages, the Thai language statutory fnancial statements shall prevail.

SMART PEA 97
Annual Report 2016 Provincial Electricity Authority