Page 262 - BAM ONE REPORT 2565 (ENGLISH VERSION)

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Fair value

The fair value of marketable securities is calculated based on the latest bid price of the last

working day of the year as quoted on the Stock Exchange of Thailand. The fair value of non-
marketable securities is calculated based on the dividend yield of the similar securities in the
market or measured at book value of the latest financial statements. The fair value of

government and state enterprise securities is calculated using the formula determined by the
BOT, which is based on the yield rates quoted by the Thai Bond Market Association or other
Bangkok Commercial Asset Management Public Co., Ltd.
market or government bond yield rates adjusted with the appropriate risks depending on
situation.

Changes in classification of investments in debt instruments

When there are changes in the Company’s business model for management of financial

assets, the Company has to reclassify investments in debt instruments and adjust the value
of these investments to their fair value on the date of reclassification. Differences between
the carrying value and fair value as of the reclassification date are recorded in profit or loss

or other comprehensive income in the statement of comprehensive income, depending on the
classification of the investments in debt instruments.
4.4 Loans purchased of receivables and accrued interest receivables

The Company’ s operations involve the acquisition and transfer of non- performing loans

( NPLs) from other financial institutions, the amounts paid to acquire loans purchased of
receivables are recognised as financial assets that are purchased or originated credit-

impaired financial assets.

Loans purchased of receivables are presented at amortised cost (comprised of the fair value
on the transaction date which is nearly or equal to the acquisition price, advances for legal
expenses, debt collection fee, and insurance fee or others which will be transferred to be an

obligation of debtors) and including accrued interest receivables and net of allowance for
expected credit loss (if any).

4.5 Installment sale receivables and accrued interest receivables

Installment sale receivables arise from installment sales of properties for sale. The Company

records differences between the selling price and the cost of the properties for sale as
deferred gross margin from installment sales and recognises it as gain on installment sales

when the aggregate amount of cash received from the debtor exceeds the cost of the
properties for sale.

Installment sale receivables are presented at the outstanding of a contractual value, including
accrued interest receivables, and net of allowance for expected credit loss (if any).

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