IFRS Section - Doing Business
You will find here a series of summaries providing an overview of useful IFRS regulations, processes and IFRS issues for Doing Business in Thailand.
Decision on accounting for SaaS purchases
The IFRS IC has published an agenda decision on how a customer accounts for its right to access software hosted on the cloud (Software as a Service or SaaS). The request submitted to the IFRS IC specified that the software runs on cloud infrastructure managed and controlled by the supplier, the customer accesses the software as needed (over the internet or via a dedicated line), and the contract does not convey to the customer any right to the infrastructure (i.e. the tangible assets).
Real estate development and borrowing costs (IAS 23)
The IFRS IC has published an agenda decision on the capitalisation of borrowing costs relating to the construction of a residential multi-unit real estate development, sold as individual units.
Presenting cured credit-impaired financial assets
IFRS 9 specifies that interest revenue from credit-impaired financial assets (i.e. those at Stage 3 of the impairment model) shall be calculated on the basis of the gross carrying amount after impairment. In practice, this means that the interest revenue recognised is less than the contractual revenue, but this is not recognised as impairment. Instead, this results in reduced interest revenue.
Measurement of expected credit losses
The IFRS IC was asked to clarify whether a financial guarantee or other credit enhancement should be taken into account in the measurement of expected credit losses on the asset to which it relates. The request related to situations in which the credit enhancement must be recognised separately under IFRSs.
Update on Principles of Disclosure project
On 21 March, the IASB published a Project Summary on its Principles of Disclosure project, following up on the Disclosure Initiative – Principles of Disclosure Discussion Paper published in March 2017. The Project Summary explains how stakeholders’ feedback on the Discussion Paper will be taken into account.