Patkol Public Company Limited
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
5.1 Revenues and Expenses recognition 5.1.1 Revenues and expenditures are recognized on an accrual basis. 5.1.2 Revenue from sales is recognized on the value of delivered goods and the significant risks and rewards of ownership have been transferred to the buyer. 5.1.3 Revenue from services is recognized by the percentage of completion which is based on the proportion of actual costs to the total estimated costs by considering the effects to the most recent estimates of total costs, coupled with the consideration of the physical completion estimated by the engineer. 5.2 Cash and cash equivalents Cash and cash equivalents are cash on hand and all type of deposits at banks excluding deposit which held to maturity and short-term highly liquid investments that are subject to insignificant risk of change in value. 5.3 Allowance for doubtful accounts The Company and subsidiaries provided allowance for doubtful accounts equal to the estimated uncollectible receivable. The estimated loss are based on historical collection experience coupled with a review of the current status of existing receivables. 5.4 Inventories Inventories are valued at the lower of cost or net realizable value. The cost calculation are detailed as follows : 5.4.1 Finished goods and work in process recorded on a specific method. 5.4.2 Raw material, spare and supplies recorded on a moving average method. 5.5 Investment Investment in subsidiaries are stated at cost less provision for impairment (if any). 5.6 Property, plant and equipment The Company没s land is stated at the revaluation value which revalued by the independent appraiser. Revaluation surplus of land is presented under shareholders没 equity in balance sheets. The appraisal of such land should be reviewed periodically such that the carrying amount does not differ materially from fair value as at the balance sheets date. Subsidiaries没 land is stated at cost less provision for impairment of assets (if any). Building and equipment are stated at cost less accumulated depreciation and provision for impairment of assets. Building and equipment are depreciated by the straight - line method over the estimated useful lives of the assets as follows: Nomber of years Building factory and improvement 10 and 20 Machinery, tools and equipment 5 Leasehold machinery 8 Furniture and office equipment 3 and 5 Vehicles 5 Land and assets in progress are not depreciated. Interest from long-term borrowings for acquisition of fixed assets is capitalized as part of fixed assets and stopped to recognize as cost of fixed assets when the assets are ready for use.
Annual Report 2007
As of 31 December 2007