As at December 31, 2009, the fully depreciated but still in use machinery, equipment, furniture, fixture, office equipment and vehicle amounted to Baht 51.67 million, Baht 33.02 million and Baht 20.18 million, respectively (The Companyûs only : Baht 50.82 million, Baht 31.85 million and Baht 18.77 million, respectively). As at December 31, 2009 and 2008, the Companyûs vehicles under the financial lease agreements amounted to net book value of Baht 1.23 million and Baht 1.91 million, respectively. As at December 31, 2009 and 2008, Property, plant and equipment are mainly used to guarantee against bank overdrafts and loans from financial institution amounted to net book value of Baht 36.76 million and Baht 37.57 million , respectively (The Companyûs only : Baht 36.76 million and Baht 37.57 million, respectively) as discussed in Note 7. CHANGING ACCOUNTING POLICY RELATING TO THE RECORDING OF PROPERTY, PLANT AND EQUIPMENT AND LEASEHOLD RIGHT ON LAND AND BUILDING In the year 2008, the Company has changed its accounting policy relating to the recording of property, plant and equipment and leasehold right on land and building (see note12) in the consolidated financial statements and separate financial statements from the revaluation method to the historical cost method. In fact, the Company has opted to use the revaluation method since 1999; however, at the moment the management believes that the revaluation method used to valuate property, plant and equipment and leasehold right on land and building is no longer necessary due to the much more positive financial status of the company. Thus, it is no longer necessary to show the shareholdersû equity growing bigger with the surplus on revaluation of assets in maintaining an appropriate debt to equity ratio. Furthermore, available current data makes the management believe that the appraisal values by the market approach and depreciated replacement cost of an independent appraiser, especially golf course and construction, are incapable of reflecting appropriate fair value. For the two reasons above and the fact that the Accounting Standard No. 16 çProperty, Plant and Equipmenté (revised 2007) (former TAS 32) has set 2 options for the method of valuation, i.e. the historical cost method and the revaluation method, it is then appropriate to change the Companyûs accounting policy for the valuation of property, plant and equipment and leasehold right on land and building from the revaluation method to the historical cost method from quarter 2 of 2008 onwards. The change in accounting policy above was approved by the Companyûs directors on June 27, 2008. The restatement has an effect on reducing the total assets and shareholdersû equity of the Companyûs consolidated and separate financial statements by the same amount as at January 1, 2008 and 2007 of Baht 672,966,017 and Baht 670,543,517, respectively. 12. LEASEHOLD RIGHT - NET This account consist of: Consolidated Financial Statements / The Companyûs Financial Statements Only
Balance, as at December 31,2008 Rental and car park service business Cost - Leasehold right - Utilizable right on building and improvement Total cost Less accumulated amortization - Leasehold right - Utilizable right on building and improvement Total accumulated amortization Net
Addition
(Baht)
Balance, as at December 31,2009
Deduction
70,562,990 79,412,563 149,975,553
-
-
70,562,990 79,412,563 149,975,553
(48,136,259) (59,366,952) (107,503,211) 42,472,342
(2,187,974) (1,955,669) (4,143,643)
-
(50,324,233) (61,322,621) (111,646,854) 38,328,699
Since 1986, the Company entered into an agreement with Chulalongkorn University to lease a plot of land on which its office buildings are situated. Under the agreement, the Company had to pay a leasehold right of Baht 65.8 million, whereby Baht 2 million was already paid on the agreement date. The remaining amount (presented as a part of long-term liabilities in the balance sheet and the consolidated balance sheet) is payable in annual installments over the lease term of 30 years, commencing in March 1989. In addition, the Company has to transfer ownership in all constructions thereon to the lessor when the lease expires in 2019. 13 INTANGIBLE ASSETS - NET This account consist of: Consolidated Financial Statements / The Companyûs Financial Statements Only
Balance, as at December 31,2008 At - Cost Computer software Less Accumulated amortization Net 14. DEPOSIT PLEDGED AS COLLATERAL This account consist of:
3,350,814 (2,167,727) 1,183,087
Addition
Deduction
352,002 (649,017) (297,015)
(Baht)
Balance, as at December 31,2009 -
3,702,816 (2,816,744) 886,072
Baht Consolidated Financial Statements
Cash at bank - Savings account Cash at bank - Fixed deposit - 12 month Total
76
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As at December 31, 2009 2008 40,748,955 33,441,443 3,620,266 2,522,213 44,369,221 35,963,656
The Companyûs Financial Statements Only
As at December 31, 2009 2008 40,745,187 33,441,443 3,620,266 2,522,213 44,365,453 35,963,656