Revision of Thai Financial Reporting Standards for Non-publicly Accountable Entities became effective on 1 January 2023

In November 2022, the Federation of Accounting Professions (“TFAC”) issued the revised Thai Financial Reporting Standards for Non-publicly Accountable Entities, referred to as “TFRS for NPAEs (revised 2022)”.

Keywords: Mazars, Thailand, Accounting, TFRS for NPAEs, Financial reporting

10 February 2023

The previous TFRS for NPAEs were deemed as being no longer suitable as a result of significant changes in the business environment and the increasing complexity of business activities.

TFRS for NPAEs (revised 2022) were published in the Royal Gazette on 14 November 2022 and are effective for annual reporting periods beginning on or after 1 January 2023.

In previous publications of this Technical Update we covered the significant changes to the accounting policies under the revised TFRS for NPAEs. You can read more in articles one,two and three.

Practice during the transition period to TFRS for NPAEs (revised 2022)

The TFRS for NPAEs (revised 2022) give companies different methods for recognizing the key changes in Section 28, “Transitional provision and effective date”.

The effect of a change in accounting policy from the adoption of TFRS for NPAEs (revised 2022) will be retrospective, except where it is impracticable to determine either the period-specific effects or the cumulative effect of the change. In such cases, the accounting policy will be applied prospectively, and the circumstances that led to such a condition must be disclosed in the financial statements.

Companies currently applying TFRS for NPAEs should start planning now to ensure that they are ready for the implementation of TFRS for NPAEs (revised 2022) in order to determine the treatment that is most appropriate.

References: www.fap.or.th and https://www.tfac.or.th/upload/9414/r3GgTz0gN0.pdf