MFC ASSET MANAGEMENT PUBLIC COMPANY LIMITED AND SUBSIDIARY (Continued) FOR EACH THE YEARS ENDED DECEMBER 31, 2006 AND 2005
NOTES TO FINANCIAL STATEMENTS
An impairment loss is recognized whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognized in the income statement. Calculation of recoverable amount The recoverable amount is the greater of the asset没s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money, and the risks specific to the asset. For an asset that does not generate cash inflows largely independent of those from other assets, the recoverable amount is determined for the cash-generating unit to which the asset belongs. Reversals of impairment An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset没s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. All reversals of impairment losses are recognized in the income statement.
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3.12 Income tax Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. 3.13 Provident Fund The Company has set up a provident fund under the Provident Fund Act B.E. 2530, which includes employee contributions and the Company没s contributions. The provident fund is separated from the Company没s accounts, thus is not shown in the financial statements. 3.14 Basic Earnings per Share Basic earnings per share is calculated by dividing net profit for the year by the weighted average number of common shares during the year. 4. DETAIL OF SIGNIFICANT ACCOUNTS 4.1 Cash and Cash Equivalents Cash and cash equivalents as at December 31, 2006 and 2005 consist of: Baht Consolidated 2005 2006 Cash Current and saving deposit accounts Fixed deposits with maturities not over 3 months Promissory nots with maturities not over 3 months Total Cash and Cash Equivalents
5,000 10,011,836 191,972,811 201,989,647
5,000 18,196,108 70,028,455 35,000,000 123,229,563
The Company Only 2006 2005 5,000 9,573,707 88,063,216 97,641,923
5,000 11,658,222 70,019,028 35,000,000 116,682,250