Page 258 - BAM ONE REPORT 2565 (ENGLISH VERSION)

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2. For debt restructuring involving only a payment timeline extension i.e. an extension of
payment period, a provision of grace period on principal and/or interest payments, a

conversion of short-term debts into long-term debts (Assistance type 2). For this method
debt restructuring, the Company is required to perform staging assessment and set
aside provisions in accordance with the relevant financial reporting standards. However,
the guidelines specified in the appendix of the circular of the BoT No. BoT.RPD2.C.

802/2564 relating to assessment of whether there has been a significant increase in
credit risk are applicable to assess whether a debtor is to move to under-performing
Bangkok Commercial Asset Management Public Co., Ltd.
stage or Stage 2.

During the year ended 31 December 2022, the Company did not provide assistance to debtors
in accordance with the above BoT’s guideline.

4. Significant accounting policies

4.1 Income recognition

a) Interest income on loans purchased of receivables

The Company has recognised interest on loans purchased of receivables based on the

cost of the receivables, net of allowance for expected credit loss, using the credit-
adjusted effective interest rate and on accrual basis.

The credit-adjusted effective interest rate is determined from the rate used in discounting
the estimated future cash flows to be paid or received over the expected life of the
financial asset to derive the amortised cost of financial assets that are purchased or

originated credit-impaired. In estimating the net expected cash inflows, the reference is
made to historical data on the actual cash inflows net of related expenses to develop a
model, based on the assumption that the net expected cash inflows and the expected
life of financial instruments with similar characteristics can be estimated reliably.

In cases where the cost and accrued interest receivables of an acquired non-performing

loans (NPLs) have been fully amortised, but the Company still has the right to claim the
payment from debtor under the contract. When such payments are received from a
debtor, the Company recognises gain on loans purchased of receivables as an integral
part of the interest income. If a debtor’s assets were received as a result of an auction

of collateral or a transfer of assets for debt settlement, the transferred assets were
recorded at the bid price or the price agreed upon with the debtor and to be deducted
from the principal of loans purchased of receivables and accrued interest receivables.
If the value of the transferred assets exceeded the outstanding loans purchased of

receivables, the excess amount was presented as revaluation of properties for sale so
that the value of the asset recorded in the financial statements did not exceed the cost
of the loans purchased of receivables. The Company records such transaction on the
date when the Company receives of the transferred assets.

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