Keywords: Mazars, Thailand, Accounting, TFRS for SMEs, FAP, IFRS for SMEs, TFRS for NPAEs, PAEs, Thai GAAP
06 July 2016
These standards are also called “TFRS for SMEs”, and most of these standards will become effective on 1 January 2017, while the remainder will be applied in 2019 and 2022.
In June 2016, the FAP published a newsletter on this subject, which contained information on the TFRS for SMES:
A. TFRS for SMEs consists of 35 chapters, as follows:
B. A committee of the FAP has classified Non-Publicly Accountable Entities (“NPAEs”) into two types:
1. Complex NPAEs:
- Entities which are a subsidiary, associate, or joint venture of Publicly Accountable Entities (“PAEs”);
- Entities that have their equity in PAEs as a subsidiary, associate, or joint venture of NPAEs; or
- Entities that have their equity in NPAEs as a subsidiary, associate, or joint venture of NPAEs.
These entities have to adopt and apply the full set of TFRS for SMEs, except for some complex chapters, in which case FAP will give the entity 2 to 5 years to adopt them fully. Extensions will be given as set out below for full adoption of TFRS for SMES for the following groups of chapters:
2. Non-complex NPAEs –these entities will adopt only part of TFRS for SMEs.
We understand that a committee of FAP is aware of additional costs that SMEs might incur upon first adoption of TFRS for SMEs and the preparation of financial statements in accordance with these standards. This is why the extension period for some complex standards has been given, as noted above.
However, SMEs and Thai accountants should be aware of and recognize the GAAP differences between TFRS for NPAEs and TFRS for SMEs, and be ready to prepare financial statements accordingly on 1 January 2017.