Faced with increasing globalisation and the growing pace of international movement of investment funds, Thai economic and financial systems are inescapably impacted by the global economy and finance. In order to align reporting and ease comparability across borders, the Stock Exchange of Thailand (SET) and the Federation of Accounting Professions (FAP) have agreed in principle that Thai accounting standards should be converted to IFRS. Compliance with IFRS has been announced to take place in phases commencing in 2011 and aims for full compliance by 2013 for all Thai listed companies.
Assuming that Thai listed companies will comply with IFRS reporting starting in 2011, the process of transition should begin now. To comply with existing standards and IFRS, comparative numbers between the first year of adoption and the previous year – in this case 2011 and 2010 respectively – must be prepared. Companies will therefore need to prepare IFRS figures for the year ended 2009 onward for the purpose of comparison with the opening balance of 2010 (ending balance of 2009). Although these dates may not seem to demand immediate changes, early action will allow companies to control costs, and to understand and manage the challenging scope of implementation, thereby ensuring a smooth transition plan.