Revised and amended Thai Financial Reporting Standards and Thai Accounting Standards

In our newsletter of May 2023, we noted that the Committee of the Thailand Federation of Accounting Professions (“TFAC”) was in the process of revising the Thai Financial Reporting Standards (“TFRS”) and Thai Accounting Standards (“TAS”).

Keywords: Mazars, Thailand, Accounting, TFAC, Thai Financial Reporting Standards, TFRS

4 September 2023

These standards were translated based on the Bound Volume of International Financial Reporting Standards for 2023, consolidated without early application. The following changes in the standards and their effects on the TFRS and TAS are set out below: 

Revision / amendments 

TAS and TFRS effected 

Definition of Accounting Estimates  

The amendments introduced the definition of accounting estimates and included other amendments to help entities distinguish changes in accounting estimates from changes in accounting policies. 

TAS 8 

Disclosure of Accounting Policies  

The amendments replaced the requirement for entities to disclose their significant accounting policies with the requirement to disclose their material accounting policy information. The amendments also included guidance to help entities apply the definition of a ‘material’ matter in making decisions about accounting policy disclosures. 

TAS 1, TAS 26, TAS 34, TFRS 7, and Guidance for Insurance – FI & Disclosure 

Deferred Tax related to Assets and Liabilities arising from a Single Transaction  

The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of TAS 12, so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The amendments apply to transactions such as leases and decommissioning obligations. 

TAS 12 and TFRS 1 

Amendments to sixteen Accounting Standards as a consequence of the issuance of TFRS 17. 

TAS 1, TAS 7, TAS 16, TAS 19, TAS 28, TAS 32, TAS 36, TAS 37, TAS 38, TAS 40, TFRS 1, TFRS 3, TFRS 5, TFRS 7, TFRS 9, TFRS 15 

These standards were published in the Royal Gazette and are effective for annual reporting periods beginning on or after 1 January 2024 except TFRS 17 will be effective for annual reporting periods beginning on or after 1 January 2025. 

Currently, these standards apply only to listed or regulated companies reporting under full TFRS. If smaller entities or non-publicly accountable entities would like to adopt these standards early, they must adopt and apply the full set of TFRS for Publicly Accountable Entities. 

In addition, there are two accounting standards in the process of submission to the Federation of Accounting Professions Board and Oversight Committee on Accounting Professions for consideration, which are as follows: 

  1. Exposure draft amendments to IAS 12: International Tax Reform Pillar Two Model Rules 
  2. Thai accounting guidance on other Thai Financial Reporting Standards related to the adoption of TFRS 4 in regard to insurance contracts during the period in which TFRS 17, ‘Insurance Contracts’ is not yet effective.