Ref No. 006/18/46/2007
May 15, 2007
President
The Stock Exchange of Thailand
62 Ratchadapisek Road, Klongtoei
BANGKOK 10100
Dear Sir,
Re : Explanation on Changed its Accounting Policy
Amata Corporation Public Company Limited changed its accounting policy for recording investments in subsidiary and associated companies in the separate financial statements from the equity method to the cost method, in compliance with Notification No. 26/2006 regarding Accounting Standard No. 44 "Consolidated Financial Statements and Accounting for Investments in Subsidiaries" (Amendment No. 1), issued by the Federation of Accounting Professions, under which investments in subsidiaries, jointly controlled entities and associates are to be presented in the separate financial statements under the cost method rather than the equity method.
In this regard, the Company has restated the previous period's separate financial statements as though the investments in the subsidiary and associated companies had originally been recorded using the cost method. The change has the effect of decreasing net income in the separate income statements for the three-month periods ended 31 March 2007 and 2006 by Baht 34 million (Baht 0.03 per share) and Baht 51 million (Baht 0.05 per share), respectively. The cumulative effect of the change in accounting policy has been presented under the heading of "Cumulative effect of the change in accounting policy for investments in subsidiary and associated companies" in the separate statements of changes in shareholders' equity. Such change in accounting policy affects only the accounts related to investments in subsidiary and associated companies in the Company's separate financial statements, with no effect to the consolidated financial statements.
For your information.
Yours sincerely,
AMATA CORPORATION PUBLIC COMPANY LIMITED
Thomas H. Reese
PRESIDENT AND COO