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.
Rebates Related to the Purchase of Inventory
A Company is a distributor of electrical equipment in Thailand. The Company will receive volume rebates from its vendors based upon the total annual purchase volume of electrical equipment.
Accounting for Sale and Leaseback Transactions
A Company (“a Seller”) sells manufacturing machinery with a 5 year remaining economic life to a financial institution (“a buyer”) and the Company simultaneously leases it back from the buyer. The use of the machinery is generally continued by the Company.
Shipping Terms and Revenue Recognition
Many companies will ship goods to customers either in Thailand or overseas using International Commercial Terms (“Incoterms”).
Accounting for Testing Costs
How should a ‘Company’ record testing costs in its financial statements?
A Company is setting up a new manufacturing facility in Thailand. The Company has invested in machines and equipment for the plant is currently in the trial run or testing stage and testing costs are being incurred.
A Company is setting up a new manufacturing facility in Thailand. The Company has invested in machines and equipment for the plant is currently in the trial run or testing stage and testing costs are being incurred.
Estimated Decommissioning Costs
Under TFRS for NPAEs paragraph 127, the cost of an item of property, plant and equipment includes an estimated cost of dismantling and removing the asset and restoring the site. Such cost will be recognised as both an asset and liability in the financial statements.