We aim to be the most preferred non-life insurer in Thailand

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(b) Accounting standards which are not effective for the current year Effective Date TAS 20 Accounting for Government Grants January 1, 2012 and Disclosure of Government Assistance TAS 24 (revised 2007) Related Party Disclosures January 1, 2011 TAS 40 Investment Property January 1, 2011 However, TAS 24 (revised 2007) and TAS 40 allows early adoption by the entity before the effective date. The management of the Company has assessed the effect of these standards and believes that TAS 20 is not relevant to the business of the Company, while TAS 24 (revised 2007) and TAS 40 will not have any significant impact on the financial statements for the year in which they are initially applied. 4. Significant Accounting Policies 4.1 Revenue recognition (a) Premium For insurance policies with coverage periods of up to 1 year, premium income is recognised on the date the insurance policy comes into effect, after deducting a premium ceded and cancelled. For long-term insurance policies with coverage periods of longer than 1 year, related revenues are recorded as unearned items and amortised to income over the coverage period. (b) Reinsurance premium Reinsurance premium income is recognised when the reinsurer places the reinsurance application or statement of accounts with the Company. (c) Interest and dividends Interest is recognised on an accrual basis based on the effective interest rate. Dividends are recognised when the right to receive the dividends is established. 4.2 Investments in securities (a) Investments in available-for-sale securities are stated at fair value. Change in the carrying amount of securities is recorded as a separate item in shareholders’ equity until the securities are sold, when the change are then included in the income statement. (b) Investments in non-marketable equity securities, which the Company classifies as other investments, are stated at cost net of allowance for loss on impairment (if any). (c) Investments in associates are accounted for in the financial statements in which the equity method in applied (investments in associates are accounted for in the separate financial statements in which the cost method is applied). The fair value of marketable equity securities is based on the latest bid price of the last working day of the year as quoted on the Stock Exchange of Thailand. The fair value of debt securities is determined based on the required rate of return or the yield rates quoted by the Thai Bond Market Association. The fair value of unit trusts is determined from their net assets value. The weighted average method is used for computation of the cost of investments. Losses on impairment (if any) of investments in available-for-sale securities and other investments are included in the income statement. 4.3 Premium due and uncollected Premium due and uncollected is carried at its net realisable value. The Company set up an allowance for doubtful accounts based on the estimated loss that may incur in collection of the premium due, on the basis of collection experiences, analysis of debtor aging and a review of current status of the premium due as at the balance sheet date. 70
4.4 Related party transactions Related parties comprise enterprises and individuals that control, or are controlled by, the Company, whether directly or indirectly, or which are under common control with the Company. They also include associates and individuals which directly or indirectly own a voting interest in the Company that gives them significant influence over the Company, key management personnel, directors and officers with authority in the planning and direction of the Company’s operations. 4.5 Property, buildings and equipment and depreciation Land is stated at cost. Buildings and equipment are stated at cost less accumulated depreciation and allowance for loss on impairment of assets (if any). Depreciation of buildings and equipment is calculated by reference to their costs on a straight-line basis over the following estimated useful lives: - Buildings - 20 years, 30 years (over the period of lease) - Condominium - 20 years - Office furniture, fixture and equipment - 3, 5 years - Motor vehicles - 5 years Depreciation is included in determining income. No depreciation is provided for land and construction in progress. 4.6 Intangible assets and amortisation On the date of acquisition, the Company measured all acquired intangible assets at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses. Intangible assets with finite lives are amortised on a systematic basis over the economic useful life and tested for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method of such intangible assets are reviewed at least at each financial year end. The amortisation expense is charged to the income statement. The useful lives of intangible assets with finite useful lives which is computer software are expected to generate economic benefit within 5 years and 10 years. 4.7 Impairment of assets At each reporting date, the Company performs impairment reviews in respect of the investments, property, buildings and equipment and intangible assets whenever events or changes in circumstances indicate that an asset may be impaired. An impairment loss is recognised when the recoverable amount of an asset, which is the higher of the asset’s fair value less costs to sell and its value in use is less than the carrying amount. In determining 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. In determining fair value less costs to sell, an appropriate valuation model is used. These calculations are corroborated by a valuation model that, based on information available, reflects the amount that the Company could obtain from the disposal of the asset in an arm’s length transaction between knowledgeable, willing parties, after deducting the costs of disposal. An impairment loss is recognised in the income statement. For assets other than goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s recoverable amount. An impairment loss recognized in prior periods for an asset other than goodwill shall be reversed. 71
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Bangkok Insurance aims to be the mo
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CONTENTS VISION 2 FINANCIAL HIGHLIG
Page 5 and 6:
We aim to be the most preferred non
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The year 2009 was, therefore, anoth
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In addition, the Company was still
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Page 13 and 14:
As a consequence, it is anticipated
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Page 17 and 18:
6.2 Interest Rate Risk The Company
Page 19 and 20: Increase Convenience for Premium Pa
Page 21 and 22: REPORT OF THE COMPANYûS OPERATIONS
Page 23 and 24: The net investment income in 2009 w
Page 25 and 26: Goals of Business Transactions For
Page 27 and 28: We aim to be the most preferred non
Page 29 and 30: INVESTMENTS IN SECURITIES Investmen
Page 31 and 32: FIVE YEARS REVIEW (Baht’000) 2009
Page 33 and 34: Mr. Chatri Sophonpanich Chairman Mr
Page 35 and 36: Miss Potjanee Thanavaranit Independ
Page 37 and 38: Mr. Witcha Damrongsinsak Director M
Page 39 and 40: 1. Mrs. Srichittra Pramojaney 2. Mr
Page 41 and 42: Miss Pagamas Charusathien Senior Vi
Page 43 and 44: Mr. Sontaya Chaichomlert Senior Vic
Page 45 and 46: Bangkok Insurance, Your Caring Part
Page 47 and 48: 1. Mr. Anant Pongpoon 2. Ms. Anchan
Page 49 and 50: 1. Mr. Alonggorn Gradtip 2. Mr. Ana
Page 51 and 52: Bangkok Insurance Public Company Li
Page 53 and 54: Public Health Relief of Public Disa
Page 55 and 56: 3. Checking to Prevent a Conflict o
Page 57 and 58: To the Shareholders of Bangkok Insu
Page 59 and 60: (Baht’000) Financial Statements i
Page 61 and 62: (Baht’000) Motor Miscellaneous 20
Page 63 and 64: (Baht’000) Motor Miscellaneous 20
Page 65 and 66: (Baht’000) Surplus (Deficit) on R
Page 67 and 68: (Baht’000) Surplus (Deficit) on R
Page 69: For the years ended December 31, 20
Page 73 and 74: 5. Significant Accounting Judgments
Page 75 and 76: Investments in debt securities as a
Page 77 and 78: The Company received the 2008 finan
Page 79 and 80: (Baht’000) 2009 2008 Investments
Page 81 and 82: 12. Premium Due and Uncollected The
Page 83 and 84: 20. Basic Earnings Per Share Basic
Page 85 and 86: Foreign Currency Risk The Company
Page 87 and 88: Debtors, overdue under 3 months, fo
Page 89 and 90: FINANCIAL RATIO Financial Ratio 200
Page 91 and 92: SHAREHOLDING IN OTHER COMPANIES Inv
Page 93 and 94: THE MANAGEMENT Management Structure
Page 95 and 96: 4. To consider a selection and prop
Page 97 and 98: The Appointment of the Company’s
Page 99 and 100: Name Position No. of Attendance/ An
Page 101 and 102: Name of the Management Committee Po
Page 103 and 104: 1. The Board of Directors shall com
Page 105 and 106: SHAREHOLDINGS STRUCTURE Breakdown o
Page 107 and 108: Dividend Payment Policy Since it is
Page 109 and 110: The Section on Consideration of Sta
Page 111 and 112: As for the consequence of an implem
Page 113 and 114: 4.1 Policy on Corporate Governance
Page 115 and 116: 5. The Section on the Board of Dire
Page 117 and 118: 5.4 The Board of Directors’ Meeti
Page 119 and 120: GENERAL INFORMATION Name of Company
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Motor Claims Service Center Krabi B
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Bangkok Insurance Building 25 Satho
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We aim to be the most preferred non-life insurer in Thailand

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