The financial reports of a power company : Part 3 Date : 10 January 2026 ## 5. Financial assets, fair value measurement and investment returns - Balances of financial assets and investments (debt and equity instruments, short‑term placements) fluctuate over 2022–2024, but interest income and fair value gains/losses do not fully align with the strong upward shift in market interest rates during this period. - This raises questions about the appropriateness of fair value measurement, classification (e.g. amortised cost vs FVOCI vs FVTPL) and timing of recognition of unrealised losses. **Audit concerns** - Whether fair value hierarchies, valuation techniques, and inputs are properly applied and disclosed. - Whether any losses have been deferred through classification choices or reliance on internal valuation models rather than observable market data. *** ## 6. Derivative instruments and hedge accounting - A company uses certain derivative instruments for risk management, yet the profit and loss effects of derivatives do not consistently track underlying risk factors (interest rates, FX) in some periods. - Disclosures on hedge relationships (hedged items, hedging instruments, hedge ratios, and effectiveness testing) are not sufficiently detailed to allow independent assessment of hedge effectiveness. **Audit concerns** - Whether the designation and documentation requirements for hedge accounting have been fully met, and whether any instruments are in substance speculative rather than hedging. - Whether hedge ineffectiveness is properly measured and recognised in profit or loss. To be continued——————————————————————————————————————— #FinancialAudit #PowerCompany #Thaitimes #ManagerOnline #News1