What Thailand’s Accounting Standards are & How they relate to IFRS?
In Thailand, the accounting reporting framework is based on standards set by the Federation of Accounting Professions (TFAC) pursuant to the Accounting Professions Act, and these are published in the Royal Gazette:
a. TFRS for PAEs (Thai Financial Reporting Standards for Publicly Accountable Entities)
• PAEs are entities with public accountability — such as listed companies, public companies, banks, financial institutions, insurance companies, mutual funds, etc.
• They must use Thai Financial Reporting Standards (TFRS) which are official Thai translations of IFRS with only limited delay or modification.
• Therefore, TFRS for PAEs largely mirror IFRS, meaning they are highly aligned to international standards in recognition, measurement, presentation and disclosure.
b. TFRS for NPAEs (Non-Publicly Accountable Entities)
• NPAEs are entities without public accountability — most privately-held companies and SMEs.
• They use a simplified standard known as TFRS for NPAEs — still developed locally by TFAC and based on the IFRS conceptual framework, but with many requirements reduced or omitted to lessen complexity and cost.
• NPAEs may also elect to use full TFRS (i.e., IFRS-aligned) instead if they wish; TFAC guidance notes that choice should reflect the information needs of users of their financial statements.
Please note: Both sets of Thai standards stem from IFRS principles. However, TFRS for PAEs ≈ IFRS, while TFRS for NPAEs ≈ a simplified IFRS-based framework designed for smaller entities.
What are the Main Differences Between TFRS for NPAEs & TFRS/IFRS
Compared with full IFRS (TFRS for PAEs), TFRS for NPAEs simplifies or omits several requirements:
| Topic | TFRS (PAEs / IFRS) | TFRS for NPAEs |
| Statement of comprehensive income | Required | Not required (optional) |
| Statement of cash flows | Required | Not required (optional) |
| Financial instruments | Full-IFRS based valuation & impairment | Simplified or not required |
| Leases | Recognize right-of-use assets & lease liabilities per IFRS 16 | Usually simplified or excluded |
| Deferred tax accounting (IAS 12) | Full recognition of timing differences | Not required/not as detailed (optional) |
| Fair value measurement/revaluation options | Widely applied | More limited or not required |
In short, NPAE standards are easier to apply but may result in less detailed reporting than full IFRS-aligned standards.