ANNUAL REPORT 2007 รายงานประจำปี - IR Plus

4.5. Inventories
Inventories are valued at the lower of cost or net realizable value, by using the following methods:
- Vehicles Cost is defined as specific method
- Spare Part Cost is defined as moving average method
- Work in Progress Cost is defined as occur cost
- Goods in Transit Cost is defined as occur cost
4.6. Investment in subsidiaries
Investment in subsidiaries are recorded by cost method.
4.7. Discount of Investment Value
Discount of investment value from total of entity under the same control; while
accounting is recorded by discrepancy amount between purchased price and book value of
net asset. It is reflected as adjusted transaction from consolidated under common control
under the shareholders equity and will be gradually adjusted when the subsidiaries constitute
dividend payment from the result of operation in such portion.
4.8. Plant and Equipment
Fix asset are recorded at cost on the transaction date and depreciation is calculated on
a straight line basis over the approximate useful life of the asset as follows:
Amount of Year
Building (calculated in accordance with the leased contract life) 5 and 20 Year
Improvement of Building
5 and 10 Year
Fixtures and Furniture
5 Year
Equipment and Office equipment
5 Year
Tool and equipment
5 Year
Vehicles
5 Year
4.9. Leasehold Rights
Leasehold rights are recorded at cost and amortize is calculated on a straight line in
accordance with the leased contract life.
4.10. Trade Mark
Trade mark is recorded at cost and amortize is calculated on a straight line in
accordance with the useful life as 10 year.
181