บริษัท ไพลอน จํากัด (มหาชน) 25. COMMITMENT
As at 31 December 2008, the Company has a lease and service agreement for its office for a period of 3 years. Under the term of the agreement, the Company has to pay the monthly rental of Baht 80,729.
26. DISCLOSURE OF FINANCIAL INSTRUMENTS
Financial assets and financial liabilities carried on the balance sheet include cash and cash at banks, restricted deposits with banks, trade accounts and notes receivable, unbilled accrued income, trade accounts and notes payable, liabilities under hire purchase agreements, and long - term loans. The accounting policies on recognition and measurement of these items are disclosed in the respective accounting policies in Note 4 to the financial statements. Credit Risk Credit risk refers to the risk that a counterparty will default in its contractual obligations resulting in a financial loss to the Company. Since the major part of trade accounts receivable are well-known and there is no collecting problem, management believes that the Company has no significant credit risk. Any credit risk customer has been fully set up allowance for doubtful account. Interest Rate Risk Interest rate risk arises from the fluctuation of market interest rates, which may have a negative effect to current and future operations of the Company. Management believes that the interest rate risk is minimum, hence, the Company has no hedging agreement to protect against such risk.
Fair value of financial instruments The fair value of financial instruments is the amount at which the instrument may be exchanged in a current transaction between willing parties. The following methods and assumptions are used to estimate a fair value of each class of the Company’s financial instruments for which it is practical to estimate that value:
หนา 80 จาก 82