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244 การประปาส่วนภูมิภาค รายงานประจำาปี 2566

3. Significant Accounting Policies (Cont.)
3.10 Right-of-use Assets
Right-of-use assets are valued at cost price, consisting of the value of lease liabilities, payment
before the effective date of lease agreement, and any initial direct costs, including an estimate of costs
from demolishing and moving assets, which are recognized in accordance with TAS 37: Provision, contingent
liabilities and contingent assets.

Variable payments that are not based on an index or rate are not included in the value of
rights-of-use assets and lease liabilities, and are recognized as operating expenses in comprehensive income
statements.
Right-of-use assets are depreciated by the straight-line method from the effective date of lease
agreement until the end of useful life of the asset or the end of the lease, whichever date occurs first.
Right-of-use assets are evaluated for impairment losses in accordance with TAS 36: Impairment of Assets.
3.11 Right of Possession over Royal Property

The right of possession over government property is stated at the appraisal value by the Asset
Appraisal and Survey Committee and treated as the government contribution according to the Provincial
Waterworks Authority Act B.E. 2522 (1979) Article 9 (1). This is due to the fact that PWA received immovable
property transferred from the Department of Public Works and the Department of Health owned by the
Ministry of Finance according to the Government Property Act B.E. 2518 (1975). When PWA does not use
and return the assets to the Ministry of Finance, it will be recognized as loss on disposal of the right of
possession over royal property.
3.12 Impairment of Assets
At the end of each reporting period, PWA will assess the impairment of property, plant

and equipment or PWA’s other intangible assets by considering from commercial customer group only.
PWA applied its criterion of the segregation of customers in commercial and social aspects based on the
principle for the requisition of PSO from the State Enterprise Policy Office (SEPO). Social customers are
considered from PWA branches which earned income from household customers consuming water supply
between 0-20 cubic meters per month, which exceeded 13.63 percent when compared to the total water
supply income of each branch. Beyond this group, they are all considered as commercial customers.
PWA also takes into account an indication in each PWA’s branch whether it gets loss for five consecutive

years or not. In case there is any indication of impairment of assets, an impairment loss is recognized in
profit or loss.
If in assessing the impairment of assets, there are indications that the loss from impairment of
assets recognized in the previous period runs out or decreases, PWA will estimate the recoverable value
of that asset. While the impairment loss recognized in the previous period will be reversed if there is a
change in the estimation used to determine the recoverable value after the latest recognition of loss on
the condition that the book value of assets increased from the reversal of impairment losses must not be
higher than the book value as it should be. If the business did not recognize the impairment loss of assets
in previous periods, PWA will reverse the loss from impairment of assets by recognizing it immediately in

profit or loss.