Page 250 - PWA_2023_Annual_Report

248 การประปาส่วนภูมิภาค รายงานประจำาปี 2566

3. Significant Accounting Policies (cont.)
3.19 Revenue Recognition
3.19.9 Revenue recognition from government subsidies The asset transactions from appropriated
government grants since 2006 are stated as deferred government grants income in liabilities and recognized
as government income over its useful lives of assets in compliance with the calculation criteria of depreciation
basis TAS 20 : Accounting for Government Grants and Disclosure of Government Assistance.
3.19.10 Revenue recognition from asset transfer for the asset list transferred from private sector
in piping and installation for private consumers and asset transfer income from public sector are presented as
deferred private sector donation income and deferred public sector donation income as liabilities respectively
and are gradually recognized as income from assets donated by private and public sectors in the annual
rate of 12.5 and 3.33 percent respectively according to the useful lives of building and equipment, shown in
deferred income from the expansion of water distribution area in the statement of comprehensive income.
3.20 Financial Cost
Finance cost is expenses incurred from the PWA's funding for its operation such as interest on
loans and fees paid.
Interest expenses and expenses relating to long-term loans arising from long-term borrowings
for the purpose of acquiring fixed assets which are under construction and recognized as cost of work in

progress. Interest expenses and long-term loans incurred after the construction is completed are recognized
as expenses.
Paid interest and expenses occurring from PWA’s investment financing are recognized as an
expense according to effective interest rate method.

4. Changes in Accounting Estimates

In the fiscal year 2023, the PWA changed the estimates of useful life and residual value of fixed
assets as follows:

Useful Life (Year)

Old New

Building and Construction 10 - 33 15 - 40

Durable Articles 7 - 13 5 - 20

Residual Value

Old New

Durable Articles

- Office Equipment 2 percent 0 percent
- Electricity and Radio Equipment 2 percent 0 percent

- Plant and Machinery Equipment 2 percent 0 percent
- Waterwork Equipment 2 percent 0 percent