LTF. 274/2007
November 8, 2007
Subject: Change in policy on accounts recording
To The President The Stock Exchange of Thailand
According to Accounting Standard No.44, the Company has changed its policy on accounts 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 the cost method, instead of the equity method.
The adjustment causes the net income presented in the Separate Financial Statements to differ from that of its Consolidated Financial Statements. For Q3/2007, the Company reported net income for the Consolidation of Baht 300.04 million and the Company's Only of Baht 342.95 million. This is due to the fact that under the cost method, "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 the items relating to the investment in subsidiaries/ associated companies presented in the Separate Financial Statements. There is no effect 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
Finance Department
Telephone number : 02-679-6565
Facsimile number : 02-287-3153