TFRS 2027–2028: A roadmap to the future of Thai financial reporting

The Federation of Accounting Professions (TFAC) has issued a two-phase roadmap for Thai Financial Reporting Standards (TFRS). For finance teams and management, this update serves as a critical guide to navigating technical adjustments in financial instrument classification, renewable energy accounting, and performance presentation. 

1. TFRS 2027 updates: Refining financial instruments and ESG metrics  

The first wave of changes, effective for annual periods beginning on or after 1 January 2027, focuses on technical clarity under TFRS 9 and TFRS 7.  

• Electronic payment derecognition: New guidance clarifies when liabilities settled via electronic systems can be removed from the balance sheet. This is vital for managing the presentation of liabilities and cash outflows near the year-end reporting date. 
• Renewable energy contracts: Amendments address contracts for electricity from natural sources (such as solar or wind), clarifying whether these arrangements qualify as “own use” or must be treated as derivatives. 
• ESG and contingent cash flows: Guidance is provided on whether assets with contingent features, such as those linked to ESG performance metrics, meet the Solely Payments of Principal and Interest (SPPI) criteria.  
• Annual improvements (Issue 11): This cycle provides essential clarifications for TFRS 1 (hedge accounting), TFRS 16 (lease derecognition), and TFRS 10 (identifying de facto agents).  

2. TFRS 2028: The major transition to TFRS 18 and TFRS 19  

While 2027 refines existing rules, 2028 introduces transformative new standards. The updated drafts for these standards were published on 1 December 2025. 

TFRS 18: Presentation and disclosure (Replacing TAS 1) 

Effective 1 January 2028, TFRS 18 will redefine the Statement of Profit or Loss.  

• New income statement categories: The standard introduces structured categories, Operating, Investing, and Financing, to enhance comparability.  
• Management-defined Performance Measures (MPMs): Companies must now disclose and explain “non-GAAP” metrics used internally to assess financial performance, bringing them into the scope of audited disclosures.  
• Enhanced aggregation and disaggregation: Rules are stricter regarding how information is grouped to ensure material data is not hidden by dissimilar items.  
• Measurement consistency: While presentation changes significantly, TFRS 18 does not alter existing recognition or measurement principles.  

TFRS 19: Reduced disclosures for subsidiaries 

This new standard is a “game-changer” for large corporate groups.  

• Eligible entities: It applies specifically to subsidiaries that do not have public accountability.  
• The benefit: These entities apply Full TFRS recognition and measurement but follow a significantly reduced disclosure regime, lowering compliance costs and audit complexity.  

TAS 7: Statement of cash flows (amended) 

To ensure consistency with TFRS 18, TAS 7 is updated with new terminology and clearer activity categorization to align with the new income statement structure.  

3. Strategic recommendations for management  

To ensure a seamless transition and maintain compliance, we recommend the following proactive steps:  

1. Upgrade reporting systems: Evaluate if your ERP and accounting software can capture the new TFRS 18 categories and support MPM disclosures.  

2. Audit contractual terms: Review financial instruments for contingent features or ESG clauses to reassess SPPI classification under the 2027 amendments.  

3. Implement TFRS 19: Identify which subsidiaries qualify for the reduced disclosure framework to simplify the 2028 year-end process and reduce reporting burdens.  

Final thoughts 

These updates represent more than technical compliance; they are a shift toward better financial storytelling. Understanding the impacts of TFRS 2027 and 2028 today ensures your organization remains a leader in transparency and reporting efficiency for investors and regulators tomorrow.  

Reference (in Thai):  

TFRS 2027-2028. Retrieved from The Federation of Accounting Professions.