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3. Impact of severe flooding in Thailand

The Group’s operations have certain real estate projects in Pathumtani, Bangkok and Nonthaburi which were affected by the unusually severe flooding affecting parts of Thailand in 2011 and 2012. Most of the projects have already been transferred to customers and juristic persons. Management had full access to the affected areas and estimates that the total damages to the Group, which was fully recognised in the financial statements for the year ended 31 December 2012, were approximately Baht 3.95 million. The Company received insurance compensation of Baht 1.96 million.

4. Changes in accounting policies (a) Overview

From 1 January 2013, consequent to the adoption of new and revised TFRS as set out in note 2, the Group has changed its accounting policies in the following areas:  Accounting for income tax  Presentation of information on operating segments Details of the new accounting policies adopted by the Group are included in notes 4(b) to 4(c) below. Other new and revised TFRS did not have any impact on the accounting policies, financial position or performance of the Group.

(b) Accounting for income tax

The principal change introduced by TAS 12 is the requirement to account for deferred tax liabilities and assets in the financial statements. Deferred tax liabilities and assets are the amounts of income taxes payable and recoverable, respectively, in future periods in respect of temporary differences between the carrying amount of the liability or asset in the statement of financial position and the amount attributed to that liability or asset for tax purposes; and the carry-forward of unused tax losses. The accounting policy for deferred tax is described in note 5(n). The Group adopted TAS 12 with effect from 1 January 2013. The effects of the change are recognised retrospectively in the financial statements. The impact of the change on the financial statements is as follows: Statement of financial position as at

Increase in deferred tax assets Increase in retained earnings Increase in shareholders’ equity

Consolidated financial statements Separate financial statements 31 December 1 January 31 December 1 January 2013 2012 2012 2013 2012 2012 (in thousand Baht) 20,844 20,844 20,844

15,361 15,361 15,361

13,889 13,889 13,889

20,533 20,533 20,533

Consolidated financial statements Statement of comprehensive income for the year ended 31 December Decrease in income tax expense Increase in profit for the year Increase in earnings per share - Basic earnings per share (in Baht)

2013 5,483 5,483 0.006

2012

15,135 15,135 15,135

Separate financial statements 2013

2012

(in thousand Baht) 1,472 5,398 1,472 5,398 0.002

13,686 13,686 13,686

0.006

1,449 1,449 0.002

(c)

Presentation of information on operation segments

From 1 January 2013, the Group has adopted TFRS 8 Operating Segments. The new policy for presentation of information on operating segments, together with information on the previous policy, is given below. The change in policy only impacts presentational aspects and has no impact on the Group’s reported assets, liabilities, results or earnings per share. TFRS 8 introduces the “management approach” to segment reporting. It requires a change in the presentation and disclosure of segment information based on the internal reports regularly reviewed by the Group’s Chief Operating Decision Maker in order to assess each segment’s performance and to allocate resources to those segments. Previously the Group presented segment information in respect of its business and geographical segments in accordance with TAS 14 Segment Reporting.

5. Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements except as explained in note 4, which addresses changes in accounting policies. Annual Report 2013

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MK : Annual Report 2013  

Annual Report 2013

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