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.
Barter Transactions
This section takes a look at how barter transactions should be accounted for. A hotel (“the Company”) launches a new campaign to sell low-price holiday packages. The Company has entered into an advertising agreement for the campaign with a radio broadcaster. The agreement states that the Company can place radio advertisements valued at 500,000 baht. In return, the Company will provide hotel accommodation for the radio broadcaster for the same value.
FASB Published its Strategic Plan
On 9 April 2015, the US accounting standard setter, the FASB, published its Strategic Plan in conjunction with its counterpart the Governmental Accounting Standards Board (GASB) and their oversight body, the Financial Accounting Foundation (FAF), after consultation with their respective stakeholders.
Rebates Related to the Purchase of Inventory
A Company is a distributor of electrical equipment in Thailand. The Company will receive volume rebates from its vendors based upon the total annual purchase volume of electrical equipment.
Accounting for Sale and Leaseback Transactions
A Company (“a Seller”) sells manufacturing machinery with a 5 year remaining economic life to a financial institution (“a buyer”) and the Company simultaneously leases it back from the buyer. The use of the machinery is generally continued by the Company.
Shipping Terms and Revenue Recognition
Many companies will ship goods to customers either in Thailand or overseas using International Commercial Terms (“Incoterms”).