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246 การประปาส่วนภูมิภาค รายงานประจำาปี 2566

3. Significant Accounting Policies (Cont.)
3.15 Employee gratuity fund contribution and Provident Fund Contribution
3.15.1 Employee gratuity fund contribution is the money that PWA pays to employees every
month at the rate of 10 percent of the monthly salary of each employee, especially those who are not
members of the provident fund.
3.15.2 PWA provident fund contribution is registered under the Provident Fund Contribution
Act B.E. 2530 (1987) dated 28 February 1997. PWA pays contributions on a monthly basis to the provident
fund on behalf of each employee who is a member of the provident fund, at the rate of 9, 10, and
11 percent of the salary of an individual employee whose working period is less than 10 years, between
10 and 20 years and over 20 years respectively (since the establishment of PWA to the present).
3.16 Employee Benefit Obligations
3.16.1 Short-term employee benefits
Salaries, wages, bonuses, and provident fund contribution are recognized as expenses
on accrual basis.
3.16.2 Retirement employee benefits - Defined benefit plans
The employee benefit liabilities in relation to the legal severance payment under
the labor law and the employee welfare fund are expenses throughout the working life of employees by
estimating the amount of future benefit employees received from working for PWA throughout the working
period up to the year of retirement in the future based on actuarial principles. The said benefit has been
discounted to present value. The discount rate is the rate of return of government bonds as the initial
reference rate. The estimation of such liabilities is calculated by actuarial principles using the Projected
Unit Credit Method.

When the assumptions used in estimates on actuarial principles change, PWA will
recognize the profit (loss) from the estimates that occur in full in the statement of comprehensive income.
3.17 Financial lease and the esteemed obligation from private joint venture contracts

PWA has entered into a water purchase agreement with a private company under the condition
that the agreement contains components of the lease. Therefore, the PWA records assets under the said
lease as assets at fair value or current value of minimum money that has to be paid under the lease
contract, whichever is lower. Assets acquired from finance leases are depreciated over the estimated useful
life or according to the lease term, whichever is shorter.
Lease payments are divided into financial expenses and a deduction from debts under
a contract. The financial expenses are shown in the statement of income throughout the term of contract.
For water purchase agreements with private companies that have losses throughout the term
of contract, which currently causes the obligations, PWA will bring such loss as a basis for the calculation
of the present value so as to recognize it as the provisions.
PWA reviewed the provisions at the end of the reporting period when the contract is amended
and the provisions are adjusted to reflect the best estimates at present.
3.18 Provisions of Demolished Costs on Building and Construction
In relation to the provisions of building and construction demolished costs, PWA uses
differentiated assumptions, such as the period of demolishment and the inflation rate of 2% until the
end of the contract, with reference to the average inflation rate in the letter of the Office of the National
Economic and Social Development.