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.
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.
TFRS 16 regarding COVID-19-related Rent Concessions – Phase 2
In May 2020, the Federation of Accounting Professions (TFAC) issued COVID-19-related Rent Concessions - Phase 2, which amends TFRS 16. This standard was published in the Royal Gazette on 13 May 2021 and revised to be in line with International Financial Reporting Standards Bound Volume 2021.
Recognition of a provision for liquidated damages
Almost every construction contract has a “time is of the essence” provision and a completion deadline. The consequences for failure to meet the completion deadline may include termination of the contract for default, payment of the obligated party’s costs to supplement the labour force to mitigate delays, and the assessment of liquidated damages or actual damages due to a delay or a failure to complete the work in a timely manner.
Revised and amended TFRS and TAS
In its 2021 newsletter, the Federation of Accounting Professions (“FAP”) stated that the Committee of the FAP revised and amended the TFRS and TAS, including the following:
Financial statements in a currency
Presenting the financial statements in a currency other than Thai baht