Accounting Section - Doing Business
Explore a series of summaries providing an overview of useful accounting regulations, processes and accounting issues for doing business in Thailand.
Recognition of a provision for liquidated damages
Almost every construction contract has a “time is of the essence” provision and a completion deadline. The consequences for failure to meet the completion deadline may include termination of the contract for default, payment of the obligated party’s costs to supplement the labour force to mitigate delays, and the assessment of liquidated damages or actual damages due to a delay or a failure to complete the work in a timely manner.
Revised and amended TFRS and TAS
In its 2021 newsletter, the Federation of Accounting Professions (“FAP”) stated that the Committee of the FAP revised and amended the TFRS and TAS, including the following:
Financial statements in a currency
Presenting the financial statements in a currency other than Thai baht
Changes in the useful lives of fixed assets
This article looks at calculating the depreciation on a fixed asset when the useful life changes and how to appropriately account for those changes.
Recognition of a restructuring provision
As the effects of the COVID-19 pandemic continue to be felt around the world, many companies need to adjust their operations and make some longer-term changes to business plans. Some companies may consider downsizing or discontinuing specific operations, while other companies may plan to explore a new business opportunity. All of these may lead to restructuring.