LTF. 147/2007
May 11, 2007
Subject Change in policy on account recording
To The President The Stock Exchange of Thailand
According to the accounting standard no.44, the Company has changed its policy on account recording of the Separate Financial Statements in regard to investment in its subsidiaries and associated companies. Starting from Q1/2007, the investment in the Company's subsidiaries and associated companies presented in the Separate Financial Statements will be recorded under cost method, instead of equity method.
The adjustment causes the net income presented in the Separate Financial Statements differ from that of its Consolidated Financial Statements. For Q1/2007, the Company reported net income for the consolidation of Baht 82.58 million and the Company's only of Baht 111.98 million. This is due to the fact that under the cost method, a "Dividend income" was included in the profit and loss statement while a "Deferred gain on sale of properties to TFUND'was not included.
"Investments in subsidiaries and associated companies" and "Retained earnings" presented in the balance sheet of the Separate Financial Statements were also affected with the amount of Baht 358.68 million, as shown under the item of "Cumulative effect of the change in accounting policy for investments in subsidiaries and associated company" in the Statement of changes in shareholders' equity.
The change of the policy will affect only on the items relating to the investment in subsidiaries/ associated companies presented in the Separate Financial Statements. There is nothing affect on the Consolidated Financial Statements as well as the Company's business fundamentals.
Please be informed accordingly
Yours faithfully
(Miss Lalitphant Phiriyaphant)
Head of finance