2. Embedded Derivative must not be separated from the host contract when determined as ‘Closely related’ and accounted for as an integral part of the host contract under the applicable Accounting Standards to the host contract. 2.16 Employees Provident Fund and Retirement Pay The Bank established a Provident Fund under the Provident Fund Act B.E. 2530 (1987) and entered to the registered fund approved by the Ministry of Finance on June 25, 1992. The Provident Fund is managed by an external fund manager. Permanent employees of the Bank are entitled to apply for membership according to the registered KTB Provident Fund’s regulations. Employees can opt out to contribute to the Fund at the rate of either 3 percent, 6 percent, or 10 percent of basic salary while the Bank’s supplemental contribution is at 10 percent of the employees’ basic salary. Employees whose working tenure totals ten years or more are entitled to special remuneration as prescribed by the Bank which is charged to expenses in the relevant period. 2.17 Unclaimed Balances Unclaimed balances which remain dormant for more than 10 years are taken to non-interest income at the accounting period-end. 2.18 Income Tax The Bank’s income tax expenses are recorded based on tax paid and tax accrued for the year. 2.19 Basic Earnings per Share Basic Earnings per share are calculated by dividing the net income/(loss), in associated with ordinary shares, by the weighted average number of ordinary shares outstanding. Diluted Earnings per Share Diluted Earnings per share are calculated by dividing the net income after deducting noncumulative preferred dividend declared during the period by the weighted-average number of ordinary share outstanding. 2.20 Accounting Estimates In compliance with generally accepted accounting principles, the Bank is required to make estimates and assumptions in the financial statements that affect the reported amounts of income, expense, assets and liabilities and the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. 2.21 Provisions, Contingent Liabilities The Bank of Thailand issued the Notification No. SOR NOR SOR. 31/B.E. 2551 (2008) dated August 3, 2008 regarding Guidelines on Assets Classification and Provisioning of Financial Statements prescribing the provisioning regulations in associated with the off-balance sheet obligation underlying significant impacts that may arise from the misuse of the off-balance sheet items in conformity with Accounting Standard 37 regarding Provisions, Contingent Liabilities and Contingent Assets, the Bank is required to set aside the provisions for off-balance sheet items satisfying the following criteria:
Annual Report 2009 Krung Thai Bank Pcl.
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