Accounting Section - Doing Business
Explore a series of summaries providing an overview of useful accounting regulations, processes and accounting issues for doing business in Thailand.
Accounting for Unpaid Share capital
On 15 June 2018, a new company (“the Company”) was set up, having registered share capital of THB 20 million consisting of 200,000 ordinary shares at a par value of THB 100. On the same date, 25% of the registered share capital was paid up.
Bill-and-hold arrangement
A bill-and-hold arrangement is a contract under which an entity bills a customer for a product but retains physical possession of the product until it is transferred to the customer at a future point in time.
TFRS 15 – Revenue from contracts with customers
A new Thai Financial Reporting Standard, TFRS 15, ‘Revenue from contracts with customers’, has been issued and applies to accounting periods beginning on or after 1 January 2019.
Recognition of Investment Property
Paragraph 198 of the Thai Financial Reporting Standards for Non-Publicly Accountable Entities (TFRS for NPAEs) states:
Treatment of rental property income and expense
In its May 2019 newsletter, the Thailand Federation of Accounting Professions (“TFAC”) issued a statement saying that the Revenue Department (RD) issued Departmental Regulation No. Tor. Por. 299/2561 to amend Clause 3.4 of Departmental Order No. Tor. Por. 1/2528. The objective of Tor. Por. 299/2561 is to eliminate differences between the recognition of revenue from and expenses for a rental property for accounting and tax purposes, for both the lessor and the lessee of the property.