Accounting Standard for NPAEs Approved by FAP

Keywords: Thailand, Accounting, Federation of Accounting Professions, Non-Publicly Accountable Entities

This standard is effective for accounting periods beginning on or after 1 January 2011.

The standard requires the preparation of the statement of financial position, income statement, statement of changes in equity, and notes to the financial statements. There is no requirement to prepare a statement of cash flows or consolidated financial statements. However, the company may prepare these statements if it considers it beneficial to do so.

The standard covers the following topics:

• Presentation of Financial Statements;
• Cash and cash equivalents;
• Accounts receivable;
• Inventory;
• Plant and equipment investment;
• Intangible assets;
• Investment Property;
• Borrowing costs of lease provisions and tax liabilities that may arise;
• Events after the reporting period;
• Revenue recognition;
• Recognition of income from real estate sales;
• Construction contracts;
• The impact of fluctuation in foreign exchange rates;
• Changes in accounting policy; and
• Changes in accounting estimates and errors.

It is noted that in general, NPAEs are not:

1. Entities that have their equity securities and debt securities publicly traded.
2. Entities that have to submit their financial statements to SEC, SET or other government units for the reason of publication of their marketable securities.
3. Entities that are governed by specific legislation, like Banks, Insurance, Securities, mutual funds and other financial institutions.
4. Public companies.