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.
Initial Application of IFRS 17 and IFRS 9
This exposure draft is a proposed amendment to Appendix C of IFRS 17, which applies to issued insurance and reinsurance contracts, reinsurance contracts held, and investment contracts with a discretionary participation feature issued by an entity that also issues insurance contracts. Contracts may be grouped for accounting purposes.
Accounting for dividends in foreign currency
Normally, dividends are declared and paid in an entity’s functional currency. However, in certain cases, such as when an economy is highly inflationary, or when the functional currency is other than the currency of the economy in which the operation is domiciled, dividends may be declared and paid in a currency other than the functional currency.
TFRS 15 revenue from contracts with customers
At present, many transactions contain a significant financing component because the customer pays substantially before or after the goods or services have been provided. This can benefit the entity if the customer is financing the transaction by paying early, or this can benefit the customer if the entity finances the customer by delivering the good or service before payment occurs.
What is a contingent asset?
Contingent assets are possible assets, the existence of which will be confirmed by the occurrence or non-occurrence of future events that are not wholly within the control of the entity. Contingent assets are not recognized, but are disclosed when it is more likely than not that an inflow of benefits will occur. However, when the inflow of benefits is virtually certain, an asset is recognized in the statement of financial position because that asset is no longer considered to be contingent.
Revenue recognition for instalment sales
The COVID-19 pandemic has had a dramatic impact on many businesses and the overall economy. As the crisis continues, companies and individuals may increasingly find themselves in the position of needing more liquidity in an environment that does not lend itself to selling off property, luxury goods, or other products in traditional ways. Instalment sales may be an excellent way to attract buyers looking to take advantage of the current environment to purchase if they do not have the means to cover the full purchase price upfront.