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.
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.
IFRS IC agenda decisions
The IFRS IC has clarified its position on how quickly entities should implement its published agenda decisions.
Agenda decisions on accounting for an investment
In January 2019, the IFRS IC finalised two agenda decisions related to the accounting for an investment in a subsidiary in the entity’s separate financial statements. The first agenda decision looks at how to account for a partial disposal when the entity has elected to recognise its investment at cost in accordance with IAS 27, whilst the second agenda decision looks at the opposite fact pattern of a step acquisition.