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.
Treatment of mobile application development costs
Scenario
On 30 June 2023, Company A invested in research and development for a mobile application. This project will be finished and fully implemented on 30 September 2023.
On 30 June 2023, Company A invested in research and development for a mobile application. This project will be finished and fully implemented on 30 September 2023.
Revised and amended Thai Financial Reporting Standards and Thai Accounting Standards
In our newsletter of May 2023, we noted that the Committee of the Thailand Federation of Accounting Professions (“TFAC”) was in the process of revising the Thai Financial Reporting Standards (“TFRS”) and Thai Accounting Standards (“TAS”).
Preparing financial statements for liquidation purposes
Thai Accounting Standard (“TAS”) 1 states, “When preparing financial statements, management shall assess an entity’s ability to continue as a going concern. An entity shall prepare financial statements on a going-concern basis unless management either intends to liquidate the entity or to cease trading or has no realistic alternative but to do so.”
Revised and Amended Thai Financial Reporting Standards (“TFRS”) and Thai Accounting Standards (“TAS”)
Currently, the Thailand Federation of Accounting Professions (“TFAC”) stated that the Technical Committee is in the process of revising and amending TFRS and TAS. These standards will be translated based on the International Financial Reporting Standards 2023, and the revised and amended TFRS and TAS will become effective in Thailand for annual reporting periods beginning on or after 1 January 2024.
Amortization of goodwill arising from an acquisition
In the past, the previous version of the Thai Financial Reporting Standards for Non-publicly Accountable Entities (“TFRS for NPAEs”) did not provide guidelines on transactions related to business combinations or on goodwill arising from an acquisition.