Page 267 - BAM ONE REPORT 2565 (ENGLISH VERSION)

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Form 56-1 One Report 2022
4.10 Premises and equipment and depreciation

Premises and equipment are stated at cost less accumulated depreciation and allowance for
impairment (if any). Depreciation is calculated under the straight- line method over the
estimated useful life of each type of asset, as follows:

Building 20 years

Building improvement 7 - 10 years
Equipment 5 years
Vehicle 5 years

Computer 3 years

The calculation methods for depreciation, useful life and residual value of the assets are
reviewed at least at the end of reporting period and are adjusted as deemed appropriate.

Depreciation is taken into account in the calculation of operating results. The Company does
not calculate depreciation for land and work in process.

Premises and equipment are written off upon disposal or when there is no economic benefits

expected from the use or disposal in future. Profit or loss from disposal (difference between
net consideration received from disposal of the asset and book value) will be recognised in

profit or loss in the statement of comprehensive income.

4.11 Leases

The Company as a lessee

At the inception of the contract, the Company assesses whether a contract is a lease or
consists of a lease component. The contract is classified as lease or consists of a lease

component if that contract provides the right to control the use of the specified asset for a
certain period in exchange for compensation.

Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (the

date that the underlying asset is ready for use). Right-of-use assets are measured at cost,
less any accumulated depreciation and impairment loss (if any) and adjusted to reflect any

remeasurement of lease liabilities.

Depreciation of right-of-use assets is calculated based on cost, using the straight-line method
over the shorter of the lease term or the useful life of the right-of-use assets, which are as
follows:

Building and building improvement 2 years

Computer software 3 years

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