Page 153 - Annual Report 2015 - Mono Technology Public Company Limited

The above accounting standard and financial reporting standards do not have any significant impact on the financial statements of the Company and its subsidiaries.
b) Financial reporting standard that will become effective in the future
During the current year, the Federation of Accounting Professions issued a number of the revised (revised 2015) and new financial reporting standards and accounting treatment guidance which is effective for fiscal years beginning on or after 1 January 2016. These financial reporting standards were aimed at alignment with the corresponding International Financial Reporting Standards. The management of the Company and its subsidiaries believe that the revised and new financial reporting standards and accounting treatment guidance will not have any significant impact on the financial statements when they are initially applied.
4. Cumulative effect of the change in recognition of the cost of spectrum license
Mono Broadcast Company Limited (“Broadcast”) has adjusted its recognition of the cost of licenses for digital television systems (“the license”). Broadcast originally determined that the bid price of the license should be treated as an initial cost of the license, and that the conditions setting the period of payment were in accordance with normal conditions clearly stipulated by the government agency. Broadcast therefore recorded the cost of the license as an asset and recorded the outstanding cost of the spectrum license, based on the bid price, as a liability. However, on 8 February 2016, the Federation of Accounting Professions (“FAP”) published an exposure document providing an interpretation on accounting issues related to the recognition of licenses granted by the government sector, whereby gradual payment of license costs is interpreted as being similar to the sale of goods under installment terms and an entity is therefore required to determine the cost of the license based on the sum of the amounts to be paid immediately, within a specified period, and the discounted value of the amount that the entity is required to pay to the government agency in installments. Moreover, if an entity has not reported such transactions in accordance with this interpretation is to restate its prior year financial statements. As a result, Broadcast has adjusted cost of licenses for digital television systems in its financial statements for the year ended at 31 December 2014 (the spectrum license was granted on 25 April 2014) in accordance with the interpretation of the FAP, and the effect on the consolidated statement of financial position and the consolidated statement of comprehensive income are as follows:
(Unit: Million Baht)
Consolidated financial statements
As at 31 December 2014
305
254
51
Statements of financial position
Decrease in cost of spectrum license Decrease in cost of spectrum license payable Decrease in unappropriated retained earning
Annual Report 2015
153