Page 272 - BAM ONE REPORT 2565 (ENGLISH VERSION)

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All 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
categories of input to be used in fair value measurement as follows:

Level 1 Use of quoted market prices in an observable active market for such assets or

liabilities.

Level 2 Use of other observable inputs for such assets or liabilities, whether directly or
indirectly.
Bangkok Commercial Asset Management Public Co., Ltd.
Level 3 Use of unobservable inputs such as estimates of future cash flows.

At the end of each reporting period, the Company 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 estimates

The preparation of financial statements in conformity with financial reporting standards

requires management to make subjective judgements and estimates regarding matters that
are inherently uncertain. These judgements and estimates affect reported amounts in financial
statements and disclosures in notes to financial statements; and actual results could differ

from these estimates. Significant judgements and estimates are as follows:

5.1 Recognition and derecognition of assets and liabilities

In considering whether to recognise or to derecognise assets or liabilities, the management

is required to make judgement on whether significant risk and rewards of those assets or
liabilities have been transferred, based on their best knowledge of the current events and
arrangements.

5.2 Allowance for expected credit loss

The management is required to use judgement in estimating the allowance for expected credit

loss of financial assets. The allowance for expected credit loss is calculated based on models,
use of information, assumption, developed model, and assessments related to the increase

in credit risk including the use of forward-looking data. The estimates involves a large number
of variables, therefore, actual results could differ from those estimates.

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