TFRS 18 and TFRS 19: Key developments in presentation and disclosure

• TFRS 18:Presentation and disclosure in financial statements  
• TFRS 19:Disclosure of subsidiaries without public accountability  

These standards are being developed as part of the full TFRS framework, which applies to entities required to prepare financial statements in accordance with full Thai Financial Reporting Standards—not those applying the TFRS for NPAEs (Non-Publicly Accountable Entities). Accordingly, TFRS 18 and TFRS 19 will not apply to NPAEs using the simplified reporting framework.  

Both standards aim to align Thai financial reporting with international best practices, International Financial Reporting Standards (IFRS), and are expected to be effective for annual periods beginning on or after 1 January 2028 (B.E. 2571). 

Key highlights 

TFRS 18: Presentation and disclosure in financial statements  

TFRS 18 is modelled on IFRS 18 (issued by the IASB in April 2024) and introduces significant changes to the structure, classification, and disclosure within primary financial statements:  

• New categories in the statement of profit or loss  
  Entities must present income and expenses under five main categories:  
  • Operating  
  • Investing  
  • Financing  
  • Income tax
  • Discontinued operations
    This revised structure enhances comparability and clarity for users.  
• Management-defined performance measures (MPMs)
  Where MPMs are presented, entities must disclose: 
  • The definitions of each MPM  
  • A reconciliation to subtotals required by the standard
    This improves transparency and consistency in performance reporting.
• Aggregation and disaggregation principles  
  The standard strengthens guidance on aggregating and disaggregating line items to prevent obscured or misleading information.  
• Enhanced format requirements  
  Updates apply across the primary financial statements, including:  
  • Statement of profit or loss  
  • Statement of financial position  
  • Statement of changes in equity  
  • Statement of cash flows  

TFRS 19: Disclosure of subsidiaries without public accountability  

TFRS 19 provides optional disclosure relief for subsidiaries that do not have public accountability.  

• Scope and eligibility  
  The standard applies to entities that meet the definition of a subsidiary under TFRS 10 and that:  
  • Are not listed or in the process of listing  
  • Do not issue debt or equity instruments to the public  
  • Are not financial institutions  
• Optional reduced disclosures  
  Eligible subsidiaries may apply reduced disclosure requirements in their separate financial statements, provided that:  
  • Their parent prepares consolidated financial statements that comply with TFRS  
  • Full disclosures are still made at the group level 
    This exemption is intended to reduce compliance costs and administrative burdens for qualifying subsidiaries.  

Practical considerations  

For accounting teams:  

• Study the detailed classification and presentation rules in TFRS 18  
• Begin evaluating current reporting formats and systems for alignment  
• Coordinate with management on defining and disclosing MPMs  
• Review consolidation structures to assess eligibility for TFRS 19 disclosure relief  

For management: 

• Assess how the new presentation structure may affect investor perception 
• Evaluate impacts on group reporting strategies and financial communications 
• Stay updated on the final release and consider early preparation plans  

Next steps and public consultation  

The public consultation period for the exposure drafts closed on 27 June 2025. Feedback received will be considered by TFAC in finalising the standards.  

Conclusion  

TFRS 18 and TFRS 19 represent a meaningful evolution in Thai financial reporting. TFRS 18 promotes greater comparability and structure, while TFRS 19 offers practical relief for group subsidiaries. Timely preparation and stakeholder awareness will be critical to ensure a smooth implementation ahead of the 2028 effective date.

References (in Thai): 

• Draft TFRS 18. Retrieved from the Thailand Federation of Accounting Professions.  
• Draft TFRS 19. Retrieved from the Thailand Federation of Accounting Professions.