Page 393 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

Impairment of goodwill
Refer to Note 19 to the consolidated and separate financial statements
The key audit matter How the matter was addressed in the audit
As at 31 December 2021, the Group had goodwill of My audit procedures were as follows:
Baht 38,085 million.  Evaluated the DCF provided by the Group and
the Group’s assumptions applied in the value-in-
The cash-generating units (“CGU”) to which the use method against relevant documents as well
goodwill belongs are tested for impairment annually. as externally derived data.
The Group applies the value-in-use (discounted cash  Analysed historical information to support the
flow (“DCF”)) method to determine the recoverable precision in the Group’s forecasting process.
amount of each CGU. Any shortfall of the recoverable  Tested the principles and mathematical accuracy
amounts against the carrying amounts would be of the DCF and performed sensitivity analysis
recognised as impairment losses. around the key assumptions.
 Evaluated the financial parameters applied to the
Due to the materiality of the balances and the judgment discount rate.
and complexities involved in determining the future  Assessed the adequacy of the Group’s disclosure
cash flows attributable to the individual CGU, I in accordance with Thai Financial Reporting
considered the measurement of the recoverable amount Standards.
as a key audit matter.

Valuation of inventories
Refer to Note 11 to the consolidated and separate financial statements
The key audit matter How the matter was addressed in the audit
The Group’s inventories are various products which My audit procedures were as follows:
depend on fashion, technology or have short lives and  Understood the inventory control and management
their sales and selling prices are subject to the market policy and the estimation of valuation of inventories.
situation. Consequently, the estimation of valuation of  Evaluated the design and implementation and
inventories involves management’s judgment relating to testing the operating effectiveness of internal
estimate valuation for deteriorated, damaged, obsolete controls relating to inventory management and
and slow-moving and quantity of shrinkage inventories. attending inventory counts and observing the
condition of inventories.
Because of the significance of the amounts and of  Tested on a sample basis and the reasonableness of
the judgement involved. I considered the adequacy management’s assumptions used to set the
of allowance for decline in value of inventories as a percentage of deteriorated, damaged, obsolete,
key audit matter of my audit. slow-moving and shrinkage inventories by
comparison with information for destruction and
actual shrinkage inventories included retrospective
review, inquiry management and tested calculation.
 Tested a sample of selling prices post year-end
and the estimated costs to make the sale with
related documents including recalculation of net
realisable value.
 Assessed the adequacy of the Group’s disclosures
in accordance with Thai Financial Reporting
Standards.

3

Annual Report 2021 (Form 56-1 One-Report) 393