Page 266 - BAM ONE REPORT 2565 (ENGLISH VERSION)

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4.8 Derecognition of financial assets and financial liabilities

A financial asset is primarily derecognised when the rights to receive cash flows from the
asset have expired or have been transferred and either the Company has transferred
substantially all the risks and rewards of the asset, or the Company has transferred control of

the asset.

A financial liability is derecognised when the obligation under the liability is discharged or
cancelled or expires.
Bangkok Commercial Asset Management Public Co., Ltd.
4.9 Properties for sale

Properties for sale comprise properties received as a result of acquisitions/transfers from

asset management companies and financial institutions, asset transferred by debtors for debt
settlement, and auctions of debtors’ assets for debt settlement.

Properties for sale received as a result of acquisitions/ transfers from asset management

companies and financial institutions are presented at the transfer price (acquisition cost) plus
transfer expenses incurred to acquire the asset.

The costs of properties for sale received as a result of acquisitions/transfers from financial
institutions for which payment is made in the form of non-interest bearing promissory notes

are the cash equivalent price, excluding interest. Differences between the cash equivalent
price and the amount payable are presented as deferred interest payable and amortised to

expenses throughout the tenor of the promissory notes.

Properties for sale acquired as a result of asset transferred by debtors and properties for sale
acquired as a result of auctions of debtors’ assets for debt settlement are presented at the

cost (based on the transfer price or auction price of the assets, but not exceeding the book
value of the outstanding loans purchased of receivables on the asset acquisition date), which
includes transfer expenses incurred to acquire the assets.

Properties foreclosed are stated at the lower of cost or net realisable value. Net realisable

value is determined with reference to the latest appraisal value less estimated selling
expenses.

Gain or loss from disposals are recognised in profit or loss upon disposal, except for

installment sales, which are recognised in accordance with accounting policy in note No. 4.5.

Impairment loss are recognised as expenses in profit or loss when they occur.

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