Thai Accounting Standards 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.

			TAS/TFRS have been announced  in the Royal Gazette	No key change	Key change	New versions
1	Framework for the Preparation and Presentation of Financial           Statements (revised 2009)		Yes	x
2	TAS 1 (revised 2009)	Presentation of Financial Statements	Yes		x
3	TAS 2 (revised 2009)	Inventories	Yes	x
4	TAS 7 (revised 2009)	Statement of Cash Flows	Yes	x
5	TAS 8 (revised 2009)	Accounting Policies, Changes in Accounting Estimates and Errors	Yes	x
6	TAS 10 (revised 2009)	Events after the Reporting Period	Yes	x
7	TAS 11 (revised 2009)	Construction Contracts	Yes	x
8	TAS 16 (revised 2009)	Property, Plant and Equipment	Yes	x
9	TAS 17 (revised 2009)	Leases	Yes	x
10	TAS 18 (revised 2009)	Revenue	Yes	x
11	TAS 19	Employee Benefits	Yes			x
12	TAS 23 (revised 2009)	Borrowing Costs	Yes		x
13	TAS 24 (revised 2009)	Related Party Disclosures	Yes	x
14	TAS 26	Accounting and Reporting by Retirement Benefit Plans	Yes			x
15	TAS 27 (revised 2009)	Consolidated and Separate Financial Statements	Yes		x
16	TAS 28 (revised 2009)	Investments in Associates	Yes		x
17	TAS 29	Financial Reporting in Hyperinflationary economies	Yes			x
18	TAS 31 (revised 2009)	Interests in Joint Ventures	Yes		x
19	TAS 33 (revised 2009)	Earnings per Share	Yes	x
20	TAS 34 (revised 2009)	Interim Financial Reporting	Yes	x
21	TAS 36 (revised 2009)	Impairment of Assets	Yes	x
22	TAS 37 (revised 2009)	Provisions, Contingent Liabilities and Contingent Assets	Yes	x
23	TAS 38 (revised 2009)	Intangible Assets	Yes	x
24	TAS 40 (revised 2009)	Investment Property	Yes			x
	TFRS 2	Share-based Payment	Yes			x
	TFRS 3 (revised 2009)	Business Combinations			x
	TFRS 5 (revised 2009)	Non-current Assets Held for Sale and Discontinued Operations	Yes	x
	TFRS 6	Exploration for and Evaluation of Mineral Resources	Yes			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    

Current	New
Accounting Standards	Financial Reporting Standards
Balance sheet	Statement of financial position
Income statement	Statement of comprehensive income
Cash flow statement	Statement of cash flows
Reporting period	Frequency of reporting
The balance sheet date	The end of the reporting period
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;

1. 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.

2. 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)

 

Total Current Liabilities		xxxxx	xxxx
Total Liabilities		xxxxx	xxxx
Shareholders’ Equity		xxxxx	xxxx
Share capital		xxxxx	xxxx
Retained earnings		xxxxx	xxxx
Other comprehensive income		xxxxx	xxxx
Total owners of the Company		xxxxx	xxxx
Non-controlling interests		xxxxx	xxxx
Total Shareholders’ Equity		xxxxx	xxxx
Total Liabilities and Shareholders’ Equity		xxxxx	xxxx