FAP (Federation of Accounting Professions) request updates on the progress of financial reporting standards
TFRS 2022 revised version has been published in the Government Gazette.
This revised version in accordance with IFRS (International Financial Reporting Standards) will be effective for accounting periods beginning on or after January 1, 2023.
Amended standards are followings:
1. TAS 16: Property, Plant and Equipment
This is an improvement that prevents the consideration received from the sale of goods produced before the asset can be used as intended, not deducting from the cost of property, plant and equipment.
2. TAS 32 Financial Instruments Presentation
This eliminates the transitional practice that used to be an option for Thailand.
3. Accounting Standards TAS 37 Provisions for Liabilities contingent liabilities and potential assets
This identifies what contract completion costs must be taken into account in determining whether the contract is an obligation or not.
4. TAS 41 Agriculture
This eliminates the requirement for using pre-tax cash flows when measuring fair value. To comply with fair value measurement requirements
5. TAS 1 on the first application of financial reporting standards
This provides an alternative way to measure cumulative translation differences for foreign entities in the subsidiary’s financial statements.
6. TFRS 3 Business Combinations
This is an update of the conceptual framework reference to the current version. without affecting the content of TFRS 3 and adding content to consider liabilities and contingent liabilities incurred in a business combination and added to the assets that may arise from the business combination that unable to recognize.
7. TAS 7 Disclosure of Financial Instruments
This eliminates the transitional practice that used to be an option for Thailand.
8. TFRS 9 Financial Instruments
This is to improve the consideration of amortization of financial liabilities by 10% method, consider fees paid net of fees received. This includes only the fees incurred between the borrower and the lender including fees paid or received issued solely on behalf of the other party and eliminated the transitional practice that used to be an option for Thailand.
In addition, the financial reporting standards that are currently being submitted to the Accounting Practices Regulatory Commission for consideration and approval consist of (1) Draft TFRS 4 on Insurance Contracts and (2) Draft of Accounting Practices on Financial Instruments and disclosure of information for insurance businesses
You can find a summary of the important revisions to TFRS from FAP in the following website.
https://acpro-std.tfac.or.th/standard/76/ฉบับปรับปรุงปี-2565-ปีหน้าและอนาคต