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13All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy into three levels based on categorise of input to be used in fair value measurement as follows:Level 1 - Use of quoted market prices in an active market for such assets or liabilities Level 2 - Use of other observable inputs for such assets or liabilities, whether directly or indirectlyLevel 3 - Use of unobservable inputs such as estimates of future cash flows At the end of each reporting period, the Group determines whether transfers have occurred between levels within the fair value hierarchy for assets and liabilities held at the end of the reporting period that are measured at fair value on a recurring basis. 5. Significant accounting judgements and estimatesThe preparation of financial statements in conformity with financial reporting standards at times requires management to make subjective judgements and estimates regarding matters that are inherently uncertain. These judgements and estimates affect reported amounts and disclosures; and actual results could differ from these estimates. Significant judgements and estimates are as follows:Allowance for diminution in inventory valueThe basis for determining allowance for diminution in inventory value, relies on significant management judgement and estimates made based on the experience of the management, especially with respect to determination of allowance for obsolete or slow-moving inventory, which requires analysis of the product life cycle, the competitive environment and the economic and industry situation.Building improvements and equipment / DepreciationIn determining depreciation of building improvements and equipment, the management is required to make estimates of the useful lives and residual values of the building improvements and equipment and to review estimate useful lives and residual values when there are any changes. In addition, the management is required to review building improvements and equipment for impairment on a periodical basis and record impairment losses when it is determined that their recoverable amount is lower than the carrying amount. This requires judgements regarding forecast of future revenues and expenses relating to the assets subject to the review.Super Turtle Public Company Limited 129Introduction Nature of Business Business Performance Corporate Information Corporate Governance Financial Report Attachment