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.
Improvements to IFRSs – 2018-2020 Cycle
On 21 May 2019, the IASB published its draft Improvements to IFRSs – 2018-2020 cycle (ED/2019/2). The amendments proposed by the IASB relate to the following standards and topics.
Application of the ‘highly probable’ criterion
IFRS 9 (and IAS 39) permit forecast transactions to be designated as hedged items on condition that they are deemed to be ‘highly probable’.
Physical settlement of contracts
Contracts to buy or sell non-financial items (such as commodities) are accounted for as IFRS 9 derivatives except when they are entered into and continue to be held for the purpose of the receipt, delivery or usage by the entity of a non-financial item (the ‘own-use scope exception’ defined in IFRS 9.2.4).
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.