- 15 - 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below. 4.1 Allowance for diminution in value of inventories Net realizable value is calculated based on the estimated selling prices by management in the ordinary course of business less the estimated costs of completion and the necessary costs to make the sale. 4.2 Calculation of recoverable amount In the calculation of recoverable amount, the Group’s management estimated the future cash flows discounted to their present value using an appropriate discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. 4.3 Changes in accounting estimates During 2021, the Company has changed the estimated useful life for machinery and equipment from the previous estimated useful life of 5-20 years to be 10-30 years, in order to reflect the current usage condition and the future economic benefit. This change is considered as a change in an accounting estimate which resulted in decrease of depreciation in the consolidated and separate statements of profit or loss for the year-ended December 31, 2021 in amount of Baht 35 million. 5. SUPPLEMENTARY DISCLOSURE OF CASH FLOWS INFORMATION 5.1 Accounts payable - acquisition of fixed assets for the years ended December 31, are as follows: Unit : Million Baht Consolidated financial statements Separate financial statements 2021 2020 2021 2020 Accounts payable - acquisition of fixed assets brought forward (1) 353 487 350 487 Add Purchase of fixed assets (net of capitalised borrowing costs) 2,907 3,179 2,749 3,137 Less Cash payment (2,932) (3,313) (2,771) (3,274) Accounts payable - acquisition of fixed assets carried forward (1) 328 353 328 350 (1) Accounts payable - acquisition of fixed assets has been presented including in other payables in the statements of financial position as at December 31, 2021 and 2020. 317 NOTES TO THE FINANCIAL STATEMENTS IRPC PUBLIC COMPANY LIMITED
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