|Extent of IFRS application||Status||Additional Information|
|IFRS Standards are required for domestic public companies||No. Thai Accounting Standards are required. Thai Accounting Standards are substantially converged with IFRS Standards, though the financial instruments Standards that are part of IFRS Standards have not yet been adopted. Thai Accounting Standards include several national financial instruments standards that differ from IFRS Standards.|
|IFRS Standards are permitted but not required for domestic public companies||No. Thai Accounting Standards are required. Thai Accounting Standards are substantially converged with IFRS Standards, though the financial instruments Standards that are part of IFRS Standards have not yet been adopted. Thai Accounting Standards include several national financial instruments standards that differ from IFRS Standards.|
|IFRS Standards are required or permitted for listings by foreign companies||IFRS Standards are permitted.|
|The IFRS for SMEs Standard is required or permitted||No.|
|The IFRS for SMEs Standard is under consideration||Yes.|
This is stated on the Federation’s website in Thai language.
Thailand has adopted all IFRS Standards with a one-year delay from the equivalent IFRS Standard’s effective date, with the exception of the Standards relating to financial instruments (IAS 32 Financial Instruments: Presentation, IAS 39 Financial Instruments: Recognition and Measurement, IFRS 7 Financial Instruments: Disclosures, and IFRS 9 Financial Instruments) and first time adoption (IFRS 1 First-time Adoption of International Financial Reporting Standards).
The standards are known as Thai Financial Reporting Standards (TFRSs).
As of 1 January 2017, TFRSs are aligned with the IFRS Bound Volume 2016.
In addition, FAP is in the process of adopting a new accounting standard for small and medium-sized entities that is identical to the IFRS for SMEs Standard (amendment 2015), with the expected effective date in 2018.
The main reasons that adoption of IFRS Standards is delayed by one year in Thailand are the need to translate the standards into the Thai language and to complete the FAP’s due process. The FAP’s stated policy is that IFRS Standards will be effective no later than one year from the International Accounting Standards Board’s effective date.
There are two stock exchanges in Thailand:
Thai Accounting Standards (TAS) as adopted by the FAP and published in the Government Gazette are required for the following entities:
Thai Accounting Standards are substantially converged with IFRS Standards. See details above in the Commitment to Global Financial Reporting Standards section of this profile. The Stock Exchange permits listed companies to apply ‘Thai Accounting Standards Plus IFRS Standards’ – that is, to use those IFRS Standards that have not yet been adopted as Thai Accounting Standards in addition to those that have been adopted (with added disclosures). Some listed companies have used the ‘Thai Accounting Standards Plus IFRS Standards’ approach.
IFRS Standards are not endorsed as IFRS Standards. The process that the FAP uses in adopting Thai Accounting Standards that are converged with IFRS Standards is as follows:
The standard becomes effective after publication in the Gazette.
Currently SMEs in Thailand can use either (a) Thai Accounting Standards (TAS) or (b) the Thai Accounting Standard for Non-Publicly Accountable Entities (NPAEs). The FAP states that Thai GAAP for NPAEs is ‘short and simple and uses a historical cost measurement basis’.
As noted above, Thailand is in process of adopting the IFRS for SMEs Standard in full without modification, to be known as the Thai Financial Reporting Standard for SMEs (TFRS for SMEs), with an expected effective date of 2017. A study is currently in progress as to which type of entity will be required to adopt the TFRS for SMEs. The proposed plan is for a two-tier approach, namely:
The criteria for separation between tier 1 and tier 2 are in process of discussion.