ANNUAL REPORT 2007 รายงานประจำปี - IR Plus

S.E.C. AUTO SALES AND SERVICES PUBLIC COMPANY LIMITED AND ITS SUBSIDAIRIES
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007 and 2006
1. Basis of Financial Statements Preparation
1.1 The financial statements have been prepared in accordance with the accounting standards
enunciated under the Accounting Profession Act B.E. 2547. The presentation of the financial
statements has been made in compliance with the stipulations of the Notification of the
Department of Business Development dated September 14, 2001 and in accordance with the
determination of the office of the Securities and Exchange committee on the subject of
preparation and presentation of the financial reports.
1.2 In order to prepare the Consolidated financial statements and Separate financial statements to
comply with generally accepted accounting standards, the company’s management had to make
some estimates and suppositions which may have an effect on the amount shown for revenues,
expenses, assets and liabilities and also on the disclosures concerning assets and contingent
liabilities, therefore the actual result may differ the estimated amount.
1.3 The Changing in Accounting Policy
In the separate financial statements, in 2007, the Company has changed the
accounting policy on the subject of the record of investment in subsidiaries from equity
method to cost method which is complied with the announcement of Accounting
Professional Congress in no. of 26/2006 on the subject of Accounting Standard no. 44 on the
subject of consolidated financial statements and accounting for investment in subsidiaries
(additional rectification no. 1). The change of accounting policy causes the affected result as
follows:
For The Year
As of December 31,
2006 2005
Million Baht Million Baht
Investments in Subsidiaries - net Decrease 12.66 8.79
Retained Earning at the Ending of the Period Decrease 5.88 2.01
Adjustment from Consolidated under
Common Control Decrease 6.78 6.78
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