The Outlook for Thai Financial Reporting Standards

The Federation of Accounting Professions (FAP) has been considering to develop a new set of accounting standards by following the International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SMEs).

Keywords: Mazars, Thailand, Accounting, IASB, IFRS, FAP, SMEs, PAE, TFRS, NPAEs

This is because many entities are very large even though they are not a Publicly Accountable Entity (PAE) so it seems they are not suitable to apply the current Thai Financial Reporting Standards (TFRS) for Non Publicly Accountable Entities (NPAEs). If the new set of accounting standards is finalised, the TFRS will have the following 3 sets:

  1. Full TFRS; for PAEs group
  2. New set of accounting standards (following the IFRS for SMEs); for NPAEs which are not SMEs (but FAP has not finalised the  criteria for meeting the definition of SMEs)
  3. The current TFRS for NPAEs; NPAEs which are defined as SMEs

The following significant standards are additionally required in the new set of accounting standards as compared with the current TFRS for NPAEs:

  • Statement of Comprehensive Income
  • Statement of Cash Flows
  • Consolidated Financial Statement
  • Deferred taxes
  • Accounting for revenue from the sales of real estate
  • Financial instruments

The new set of accounting standards is expected to publish by 2016.