4.21 Employee benefits Salaries, wages, bonuses and contributions to the social security fund and provident fund and related benefits are recognised as expenses when incurred. 4.22 Income tax Income tax is provided in the accounts at the amount expected to be paid to the taxation authorities, based on taxable profits determined in accordance with tax legislation. 4.23 Derivatives Futures Obligations under futures which the Company entered into for trading purpose are regarded as off-balance sheet items. Amounts deposited as security for these futures are recorded as receivable from Thailand Clearing House and gains (losses) from changes in the fair value of futures are included in determining income. The fair value of derivatives is based on the daily settlement prices quoted by Thailand Futures Exchange Public Company Limited. Option The Company recorded the premium paid (long position) and the premium received (short position) under SET 50 index options contracts as at trade date as other derivative assets and other derivative liabilities, respectively. Gains or losses from changes in the value of the premium under option contracts are included in the income statements. Fair value is determined based on the daily settlement price quoted by Thailand Futures Exchange Public Company Limited. Derivative warrants Derivative warrants are recorded as liabilities items and the changes in fair value are recorded in the income statements. The fair value of derivative warrants is based on the latest offer price of the last working day of the year as quoted on the Stock Exchange of Thailand.
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