Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated and separate financial statements of the current period. These matters were addressed in the context of our audit of the consolidated and separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter Audit Responses Business Acquisition On December 29, 2021, the Group completed the acquisition of investment in a subsidiary operating in special coating resins and crosslinkers business resulting in the recording of goodwill in the consolidated statements of financial position as at December 31, 2021, which is disclosed in notes to financial statements no. 4. The acquisition method of accounting for business combinations is complex and requiring the Group to determine the fair value of assets and liabilities acquired, and consideration transferred with any resulting differences recognised as goodwill or gain on bargain purchase. Due to the signi f icant of the transactions to the consolidated financial statements and the complexities involved in determining the fair value of assets and liabilities acquired, we considered accounting for business acquisition as a key audit matter. The accounting policy of business acquisition and the detail of business acquisition are disclosed in notes to the financial statements no. 3.1 and 4, respectively. Key audit procedures included: Read the sale and purchase agreement to understand key terms and conditions. Evaluated the appropriateness of the identification of assets and liabilities acquired at the acquisition date including understanding on the procedures on identification of fair value which was prepared by the management. Evaluated the independence and competency of independent asset appraiser of the Group. Evaluated significant assumptions in determining fair values reference to internal and external information and mathematical accuracy. Tested the calculation of fair values intangible assets as well as the management’s key assumptions used in the estimation of future cash flows. Evaluated the adequacy of the disclosures in accordance with the relevant Thai Financial Reporting Standards. The measurement of inventories valuation Inventories of the Group are significant balance to the consolidated and separate financial statements. The raw material and finished goods are commodities that contain intense price volatility. This volatility may lead to the net realizable value less than cost that resulting in the misstatement of inventories valuation. The accounting policy of inventories valuation of the Group and the detail of inventories are disclosed in notes to the financial statements no. 3.5 and 8, respectively. Key audit procedures included: Gain understanding and performing test of design and implementation as well as operating effectiveness of the relevant controls over inventories valuation measurement process. Assessed the appropriateness of the methodology used to calculate the net realizable value of inventories at the reporting period, considered the reasonableness of the market prices used by reference to expected selling price of commodity, and tested the accuracy of the calculation. If the net realizable value is lower than the cost, consider to propose the adjustment of allowance for diminution in value of inventories in the consolidated and separate financial statements. Assessed the adequate disclosure in relation to the estimation of allowance for diminution in value of inventories in notes to the financial statements. 218 PTT GLOBAL CHEMICAL PUBLIC COMPANY LIMITED Form 56-1 One Report 2021
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