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.
Construction contracts
According to TFRS for NPAEs and TAS 11, the terms below are defined as follows:
A construction contract is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design, technology, and function, or their ultimate purpose or use.
A fixed price contract is a construction contract in which the contractor agrees to a fixed contract price, or a fixed rate per unit of output, which in some cases is subject to cost escalation clauses.
A cost plus contract is a construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs, or a fixed fee
A construction contract is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design, technology, and function, or their ultimate purpose or use.
A fixed price contract is a construction contract in which the contractor agrees to a fixed contract price, or a fixed rate per unit of output, which in some cases is subject to cost escalation clauses.
A cost plus contract is a construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs, or a fixed fee
Recognizing revenue from the sale of real estate
According to Chapter 19 of the Thai Financial Reporting Standards for Non-publically Accountable Entities (TFRS for NPAEs), there are 3 categories of revenue from the sale of real estate.
Thai Financial Reporting Standard for SMEs
As previously reported, the Federation of Accounting Professions (“FAP”) is currently in the process of adopting IFRS for SMEs in full without modification, to be known as the Thai Financial Reporting Standard for SMEs (“TFRS for SMEs”), with an expected effective date of 2017.
Revenue recognition
TAS 18 sets the recognition principles that shall be applied in accounting for revenue.
Accounting policies, estimates and errors
Under TAS 8 and TFRS for NPAEs, changes in accounting consist of:
(a) changes in accounting policies;
(b) changes in accounting estimates; and
(c) corrections of errors made in prior periods.
(a) changes in accounting policies;
(b) changes in accounting estimates; and
(c) corrections of errors made in prior periods.