ANNUAL REPORT 2007 รายงานประจำปี - IR Plus

4.11. Deferred Revenue
Deferred revenue is recorded as revenue by average according to the quantity of the
actual purchase of lubricant oil under the life of the contract Instrument equipment support.
4.12. Estimation of Service Fee after Sale
Estimation of service fee after sale is computed from expense rate according to route
of service rendered to customers in accordance with the number of vehicles sold and route of
insurance received.
4.13. Estimation of Merchandise Quality Warranty
Estimation of merchandise quality warranty is computed from sales volume
multiplied by average expense rate from the history data.
4.14. A Provision of Liabilities
The Company recognized in the balance sheet when the Company has a present legal
or constructive obligation as a result of a past event, and it is probable that an outflow of
economic benefits will be required to settle the obligation and a reliable estimate can be made
of the amount of the obligation. If the effect is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specific to the
liability.
4.15. Financial Leased Contract
The contract of leased asset carried the risk and owner remuneration is mainly
transferred to lesser will be classified as financial leased contract. The contract of financial
lease is recorded as capital expenditure by fair value of leased asset or present value of
minimum amount which has to repay in accordance with the leased contract whichever
amount is lower. The amount which has to repay in each time is divided as liability portion
and financial expenditure so that fixed interest rate over outstanding overdue liability of
obligation burden in accordance with the financial leased contract will be recorded as long
term liability. Interest payable will be recorded in the statement of income throughout the
leased contract life. Asset which acquired by financial leased contract will be depreciated in
accordance with the estimated useful life of those assets.
182