The financial reports of a power company : Part 4 Date : 11 January 2026 ## 7. Debt structure, interest expense and loan covenants - A company ’s long‑term borrowings and debentures are restructured or refinanced during 2022–2024, but the average effective interest expense does not rise in line with market rate increases, especially in 2023–2024. - Disclosures of loan covenants and key financial ratios required by lenders are limited, which obscures the extent of covenant pressure and the potential incentives to manage reported numbers. **Audit concerns** - Whether interest expense is fully recognised in accordance with the effective interest method, including amortisation of premiums, discounts and transaction costs. - Whether any accounting choices (e.g. capitalisation of borrowing costs, classification of leases) are influenced by a need to avoid covenant breaches. *** ## 8. Employee benefit obligations and actuarial assumptions - Defined benefit obligations and other long‑term employee benefit liabilities show relatively limited volatility across 2022–2024, even though discount rates and inflation expectations change materially with the interest‑rate cycle. - This stability may indicate the use of actuarial assumptions that dampen the impact of market movements on reported obligations and OCI. **Audit concerns** - Whether actuarial assumptions (discount rate, salary growth, mortality, staff turnover) are consistent with market benchmarks and internal HR data. - Whether sensitivity analyses and disclosures provide sufficient transparency regarding the potential impact on equity and profit if assumptions were more conservative. To be continued—————————————————————————————————————————————————- #FinancialAudit #PowerCompany #Thaitimes #ManagerOnline #News1