The Federation of Accounting Professions (FAP) recently announced the revision of a number of accounting standards and the requirement to adopt several new accounting standards.
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Revised Accounting Standards (effective on 1 January 2011)
No. 1 “Presentation of Financial Statements (Bound Volume 2009)”
No. 2 “Inventories (Bound Volume 2009)”
No. 7 “Statement of Cash Flows (Bound Volume 2009)
No. 8 “Accounting Policies, Changes in Accounting Estimates and Errors (Bound Volume 2009)”
No. 10 “Events after the Reporting Period (Bound Volume 2009)”
No. 11 “Construction Contracts (Bound Volume 2009)”
No. 16 “Property, Plant and Equipment (Bound Volume 2009)”
No. 17 “Leases (Bound Volume 2009)”
No. 18 “Revenue (Bound Volume 2009)”
No. 23 “Borrowing Costs (Bound Volume 2009)”
No. 24 “Related Party Disclosures (Bound Volume 2009)”
No. 27 “Consolidated and Separate Financial Statements (Bound Volume 2009)”
No. 28 “Investments in Associates (Bound Volume 2009)”
No. 31 “Interests in Joint Venture (Bound Volume 2009)”
No. 33 “Earnings per Share (Bound Volume 2009)”
No. 34 “Interim Financial Reporting (Bound Volume 2009)”
No. 36 “Impairment of Assets (Bound Volume 2009)”
No. 37 “Provisions, Contingent Liabilities and Contingent Assets (Bound Volume 2009)”
No. 38 “Intangible Assets (Bound Volume 2009)”
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Revised Accounting Standards (effective on 1 January 2013)
No. 21 “The Effects of Changes in Foreign Exchange Rates (Bound Volume 2009)”
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New Adopted Accounting Standards (effective on 1 January 2011)
No. 19 “Employee Benefits”
No. 26 “Accounting and Reporting by Retirement Benefits Plans”
No. 29 “Financial Reporting in hyper inflationary Economies”
No. 40 “Investment Property”
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New Adopted Financial Reporting Standards (effective on 1 January 2011)
No. 2 “Share – based Payments”
No. 3 “Business Combination”
No. 5 “Non – Current Assets Held for Sale and Discontinued Operations”
No. 6 “Exploration for and Evaluation of Mineral Resources”
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New Adopted Interpretations of Financial Accounting Standards (effective on 1 January 2011)
No. 15 “Real Estate Contracts”
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New Adopted Accounting Standards (effective on 1 January 2013)
No. 12 “Income Taxes”
No. 20 “Accounting for Government Grants and Disclosure of Government Assistance”
Currently, the FAP is in the process of the preparation of accounting standards for small and medium enterprises (SME) which are similar to the international accounting standards. The SME Accounting Standards will be issued and implemented by 2011. Therefore, in these new accounting standards that are effective on 1 January 2011 will not be applied to private limited companies.
The following is a more detailed summary of these updates:
Developments of Thai Accounting and Financial Reporting Standards in accordance with IFRS
Accounting Standards (revised and new versions) which will be effective in 2011 are as detailed below.
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TAS/TFRS have been announced in the Royal Gazette |
No key change
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Key change |
New versions |
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1 |
Framework for the Preparation and Presentation of Financial Statements (revised 2009) |
Yes |
x |
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2 |
TAS 1 (revised 2009) |
Presentation of Financial Statements |
Yes |
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x |
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3 |
TAS 2 (revised 2009) |
Inventories |
Yes |
x |
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4 |
TAS 7 (revised 2009) |
Statement of Cash Flows |
Yes |
x |
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5 |
TAS 8 (revised 2009) |
Accounting Policies, Changes in Accounting Estimates and Errors |
Yes |
x |
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6 |
TAS 10 (revised 2009) |
Events after the Reporting Period |
Yes |
x
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7 |
TAS 11 (revised 2009) |
Construction Contracts |
Yes |
x |
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8 |
TAS 16 (revised 2009) |
Property, Plant and Equipment |
Yes |
x |
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9 |
TAS 17 (revised 2009) |
Leases |
Yes |
x |
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10 |
TAS 18 (revised 2009) |
Revenue |
Yes |
x |
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11 |
TAS 19 |
Employee Benefits |
Yes |
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x |
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12 |
TAS 23 (revised 2009) |
Borrowing Costs |
Yes |
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x |
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13 |
TAS 24 (revised 2009) |
Related Party Disclosures |
Yes |
x |
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14 |
TAS 26 |
Accounting and Reporting by Retirement Benefit Plans |
Yes |
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x |
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15 |
TAS 27 (revised 2009) |
Consolidated and Separate Financial Statements |
Yes |
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x |
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16 |
TAS 28 (revised 2009) |
Investments in Associates |
Yes |
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x |
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17 |
TAS 29 |
Financial Reporting in Hyperinflationary economies |
Yes |
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x |
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18 |
TAS 31 (revised 2009) |
Interests in Joint Ventures |
Yes |
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x |
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19 |
TAS 33 (revised 2009) |
Earnings per Share |
Yes |
x |
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20 |
TAS 34 (revised 2009) |
Interim Financial Reporting |
Yes |
x |
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21 |
TAS 36 (revised 2009) |
Impairment of Assets |
Yes |
x |
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22 |
TAS 37 (revised 2009) |
Provisions, Contingent Liabilities and Contingent Assets |
Yes |
x |
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23 |
TAS 38 (revised 2009) |
Intangible Assets |
Yes |
x |
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24 |
TAS 40 (revised 2009) |
Investment Property |
Yes |
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x |
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TFRS 2 |
Share-based Payment |
Yes |
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x |
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TFRS 3 (revised 2009) |
Business Combinations |
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x |
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TFRS 5 (revised 2009) |
Non-current Assets Held for Sale and Discontinued Operations |
Yes |
x |
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TFRS 6 |
Exploration for and Evaluation of Mineral Resources |
Yes |
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x |
Accounting Standards (revised and new versions) which will be effective in 2013 are as detailed below.
No. 12 “Income Taxes”
No. 20 (revised 2009) “Accounting for Government Grants and Disclosure of Government Assistance”
No. 21 (revised 2009) “The Effects of Changes in Foreign Exchange Rates”
Key changes of TAS 1 Presentation of Financial Statements
- Change in wording
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Current |
New |
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Accounting Standards |
Financial Reporting Standards |
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Balance sheet |
Statement of financial position |
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Income statement |
Statement of comprehensive income |
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Cash flow statement |
Statement of cash flows |
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Reporting period |
Frequency of reporting |
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The balance sheet date |
The end of the reporting period |
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Minority interest |
Non-controlling interests |
- TAS 1 requires an entity to disclose comparative information in respect of the previous period, i.e. to disclose as a minimum two of each of the statements and related notes. It introduces a requirement to include in a complete set of financial statements a statement of financial position as at the beginning of the earliest comparative period whenever;
- the entity retrospectively applies an accounting policy, or
- makes a retrospective restatement of items in its financial statements, or
- when it reclassifies items in its financial statements
The purpose is to provide information that is useful in analysing an entity’s financial statements.
When the adoption of this Standard constitutes a change in accounting, an entity is allowed to choose one of the following treatments for the year ended 2011;
- An entity shall present, as a minimum, three statements of financial position, plus two of each of the other statements, and related notes. An entity presents statements of financial position as at:
- the end of the current period;
- the end of the previous period (which is the same as the beginning of the current period); and,
- the beginning of the earliest comparative period.
- An entity shall present two Statements of changes in equity being:-
- the end of the current period,
- the end of the previous period (which is the same as the beginning of the current period).
All changes in equity arising from transactions with owners in their capacity as owners (i.e. owner changes in equity) are to be presented separately from non-owner change in equity.
- An entity is not permitted to present components of comprehensive income (ie non-owner change in equity) in the statement of changes in equity.
- Income and expenses are to be presented in one statement (a statement of comprehensive income) or in two statements (a separate income statement and a statement of comprehensive income), separately from changes in equity.
- Components of other comprehensive income to be displayed in the statement of comprehensive income.
- Total comprehensive income is to be presented in the financial statements.
- TAS 1 requires an entity to disclose income tax relating to each component of other comprehensive income.
- TAS 1 also requires an entity to disclose reclassification adjustments relating to components of other comprehensive income. Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognized in other comprehensive income in previous periods.
Example of the financial statement
Statement of financial position (Partial)
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Total Current Liabilities |
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xxxxx |
xxxx |
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Total Liabilities |
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xxxxx |
xxxx |
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Shareholders’ Equity |
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xxxxx |
xxxx |
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Share capital |
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xxxxx |
xxxx |
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Retained earnings |
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xxxxx |
xxxx |
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Other comprehensive income |
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xxxxx |
xxxx |
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Total owners of the Company |
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xxxxx |
xxxx |
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Non-controlling interests |
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xxxxx |
xxxx |
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Total Shareholders’ Equity |
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xxxxx |
xxxx |
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Total Liabilities and Shareholders’ Equity |
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xxxxx |
xxxx |