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.
Accounting issues related to share swaps
Example: Company A is a successful limited company with a strong market presence. Company B is a listed company seeking strategic growth opportunities. Company B decides to acquire Company A through a share swap, offering its common shares to the shareholders of Company A.
FAQ for 2023 year-end Financial Statements under Revised TFRS for NPAEs (2022) and DBD Notification on Abbreviated Components.
Financial Statements prep FAQs for 2023 year-end under TFRS for NPAEs (Revised 2022) & new DBD Notification on Abbreviated Components.
New Department of Business Development notification, ‘Definition of Abbreviated Components Required in Financial Statements 2023’
Background and objectives: On 17 November 2023, the Department of Business Development issued a notification entitled, 'Definition of the Abbreviated Components Required in the Financial Statements'. This notification becomes effective for the preparation of financial statements for fiscal years beginning on or after 1 January 2024.
Non-current Assets Held for Sale – Current practice for NPAEs
After the TFRS for NPAEs (Revised 2022) became effective on 1 January 2023, TFAC published an example of how to apply Chapter 10, “Property, Plant and Equipment”, to non-current assets held for sale.
Recording the cost of machinery: Payment in instalments and on delivery
Scenario
Company A entered into an agreement to purchase machinery from an overseas company in 2022. The total cost of the machinery was USD 1 million, which Company A agreed to pay in three instalments: A first instalment of USD 300,000 upon signing the contract on 15 November 2022, a second instalment of USD 300,000 on 15 December 2022, and a final instalment of USD 400,000 upon delivery of the machinery. The machinery was delivered on 15 January 2023. The instalments were non-refundable.
Company A entered into an agreement to purchase machinery from an overseas company in 2022. The total cost of the machinery was USD 1 million, which Company A agreed to pay in three instalments: A first instalment of USD 300,000 upon signing the contract on 15 November 2022, a second instalment of USD 300,000 on 15 December 2022, and a final instalment of USD 400,000 upon delivery of the machinery. The machinery was delivered on 15 January 2023. The instalments were non-refundable.