COVID-19 impact
Insights
COVID-19 impact
COVID-19 has already had a significant impact on global populations and markets. This collection of articles is intended to support business in the light of this uncertain situation by providing updated information, listing resources, and encouraging a culture of preparedness.
Provident fund
Employers or employees facing financial difficulties due to the COVID-19 outbreak can postpone making contributions until June 2021.
Criteria on arranging meetings via electrical devices
On 19 April 2020, the Emergency Decree Regarding E-meetings, 2563 B.E. (2020), was issued and published in the Royal Gazette. This decree revokes the National Council for Peace and Order Announcement No. 74/2557 Regulating E-meetings dated 27 June 2014.
Extended deadline for audited financial statements
The Department of Business Development (“DBD”) has extended the deadline for foreign entities conducting business in Thailand, such as a representative office or branch office, and which have an accounting period from 1 January 2020 to 31 December 2020, to file their audited financial statements.
DBD announcement on obtaining company affidavits
Based on the announcement of the Department of Business Development (“DBD”) regarding requests for company affidavits and certified documents of legal entities effective 20 April 2020, a request for documents such as company affidavits and shareholders’ lists can be made through the DBD’s website only using the DBD’s e-service.
TFAC measures for entities affected by COVID-19
On 16 April 2020, the Federation of Accounting Professions Committee (“TFAC”) announced that it had issued certain guidelines to provide additional options to entities affected by the COVID-19 outbreak that still need to prepare their financial statements under Thai Financial Reporting Standards (TFRS).
TFRS 16 regarding COVID-19-related Rent Concessions – Phase 2
In May 2020, the Federation of Accounting Professions (TFAC) issued COVID-19-related Rent Concessions - Phase 2, which amends TFRS 16. This standard was published in the Royal Gazette on 13 May 2021 and revised to be in line with International Financial Reporting Standards (“IFRS”) Bound Volume 2021.
Revaluation model to be allowed under TFRS for NPAEs
As a result of the COVID-19 pandemic, the Federation of Accounting Professions (TFAC) has evaluated the effect that it might have on non-publicly accountable entities. One issue that TFAC is aware of is the accounting principles for recognizing property, plant, and equipment, as well as investment property as assets under the Thai Financial Reporting Standards for Non-Publicly Accountable Entities.
Rehabilitation of businesses affected by the COVID-19 outbreak
The outbreak of COVID-19 has affected various aspects of the Thai economy, including the purchasing power of consumers, raw material and equipment shortages, and delayed transportation of goods and material. This has led to a significant drop in sales, which in turn has affected the financial liquidity of various businesses. In addition, financial institutions are very cautious about lending, for fear of having problems with bad debt. The Thai government has made issuing policies to prevent Thai financial institutions from facing the same problems that they did in 1997 during the so-called “Tom Yam Kung crisis” one of its top concerns.
COVID-19 impact on cash flow & business valuation
The COVID-19 outbreak is posing challenges to businesses due to uncertainty regarding the duration and extent of the pandemic. Thus, long-term effects remain unknown. However, the pandemic is likely to have an impact on cash flow, M&A transactions, and business valuation. This publication will provide insights on several factors that can mitigate these effects and risks, and on preparing one’s organization for further development.
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