Page 133 - TGIA_AnnualReport2013

3.3 Equipment and Vehicle

Equipment and Vehicle have been recognized at the beginning base on cost. The value of equipment
and vehicle present on the cost less accumulated depreciation.

TGIA calculated depreciation value of fixed assets by straight-line method according to the useful lives
of the assets as follow:-
Office Equipment 5 years

Vehicle 5 years

TGIA has always revised the residual value, the useful lives of the assets and the calculation of
depreciation. In case there is an indicator shows that value of equipment and vehicle is permanently reduced and
the book value is higher than the sales value less cost of sales, the book value will be adjusted to equal the sales
value less cost of sales immediately and recognize the deficit under the statement of income higher than expenses.
The cost of repair and maintenance is recognized under the statement of income higher than expenses

in the year of such occurrence. The material cost of improvement will be included under the book value of assets
when the economic value in the future is most likely higher than the standard of the useful of that assets when
acquired. This material cost of improvement will be depreciated throughout the residual useful lives of that assets.

Profit or loss from the sales of equipment and vehicle is based on the book value and included in the
calculation of operations.

3.4 Employees Benefits

Short-term benefits of employees

The Association recognizes salary, wages, bonus and contribution to the social welfare fund as the
expense when the transaction occurs.
Post Employment Benefits

Contribution Plan:

TGIA and employees jointly set up a providence fund from monthly contribution from employees and TGIA.
The assets of the providence fund are separated from the assets of TGIA and the contribution of TGIA is recorded as
expense on the year that the transaction occurred.
Post Employment Benefit Plan:

TGIA has an obligation to pay compensation to the employees if their employments are terminated
according to the labor law. This compensation is a post employment benefit plan of employees.

TGIA’s liabilities under post employment benefits are calculated by a projected unit credit method by
independent expert who assesses such obligations on actuarial basis.

สมาคมประกันวินาศภัยไทย | Thai General Insurance Association 131