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.
Hedge Accounting
In regard to the standards for financial instruments, the Federation of Accounting Professions (“FAP”) plans to translate and adopt a new accounting standard in 2019.
TFRS for SMEs
Currently, the Federation of Accounting Professions (“FAP”) is in the process of translating and publishing new accounting standards for small and medium-sized entities which are based on IFRS for SMES, as amended in 2015.
Correcting Errors in Financial Statements
The Federation of Accounting Professions has released the following guidance on correcting errors in accounting for prior accounting transactions that a company did not recognize in the financial statements, for entrepreneurs, accountants, and auditors issuing a single set of financial statements:
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.