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.
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.
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.”