Page 418 - CRC_One Report 2021_EN

Business Overview and Performance Corporate Governance Financial Statements Enclosure

Central Retail Corporation Public Company Limited and its Subsidiaries
Notes to the financial statements
For the year ended 31 December 2021

(e) Cash and cash equivalents

Cash and cash equivalents in the statements of cash flows comprise cash balances, call deposits and
highly liquid short-term investments which has a maturity of three months or less from the date of
acquisition. Bank overdrafts that are repayable on demand are a component of financing activities for
the purpose of the statement of cash flows.

(f) Trade receivables

A trade receivable is recognised when the Group has an unconditional right to receive consideration.
A trade receivable is measured at transaction price less allowance for expected credit loss. Bad debts
are written off when incurred.

The Group estimates lifetime expected credit losses (ECLs), using a provision matrix to find ECLs rate.
This method groups the debtors based on shared credit risk characteristics and past due status, taking
into account historical credit loss data, adjusted for factors that are specific to the debtors and an
assessment of both current economic conditions and forward-looking general economic conditions at
the reporting date.

(g) Inventories

Inventories are measured at the lower of cost and net realisable value. Cost is calculated using the
weighted average cost principle. Cost includes direct costs incurred in acquiring the inventories.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated
costs to make the sale.

A right to recover returned products is recognised when the products are expected to be returned by
customers and measured by reference to the former carrying amount of the sold inventories less any
expected costs to recover those products.

(h) Investment properties

Investment properties are measured at cost less accumulated depreciation and impairment losses. Cost
includes expenditure that is directly attributable to the acquisition of the investment property. The cost
of self-constructed assets includes capitalised borrowing costs.

Depreciation is calculated on a straight-line basis over the estimated useful lives of investment properties
of 2 - 50 years and recognised in profit or loss. No depreciation charged on assets under construction.

Differences between the proceeds from disposal and the carrying amount of investment property are
recognised in profit or loss.

Reclassification to property, plant and equipment

When the use of a property changes such that it is reclassified as property, plant and equipment, its book
value at the date of reclassification becomes its cost for subsequent accounting.

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