Accounting Period
A recently established business may choose any date because of its initial accounting period. After that, the accounts ought to be closed every twelve several weeks.
If the entity desires to change its accounting period, it has to obtain written approval in the Commercial Registration Department and also the Revenue Department.
Books of Accounts
The Accounts Act of 2000 prescribes the rules concerning the keeping of books of accounts and supporting documents.
The Act also stipulates the qualifications from the accountant, who should be a Thai resident, experienced in the Thai language, along with a finish high-vocational school or college using the the least a Bachelor Degree in Accounting.
The Civil and Commercial Code offers general rules around the accounts that must definitely be maintained.
Recording of accounting records may be carried out in the British language, but there must be appended a Thai language translation. All accounting records should be designed in ink, typewritten or printed. Computerised accounting systems should be registered using the Secretary of state for Commerce and also the Revenue Department.
Accounting Concepts
Generally, the accounting concepts promulgated within the Worldwide Financial Reporting Standards are adopted in Thailand. Additionally, accounting methods and conventions sanctioned legally are thought as generally recognized accounting practices. The Federation of Accounting Professions may be the authoritative body promoting the use of generally recognized accounting concepts.
Certain accounting concepts, that are adopted with a business, should be adopted consistently and could be altered just with your application from the Revenue Department. Such accounting concepts include depreciation, statutory reserves, stock, dividends, consolidation, expenses compensated from internet profits and comprising pension plans.
Audit Needs
All businesses including companies, partnerships, branch offices, representative offices and joint ventures are needed to organize profit and loss accounts and balance sheets yearly, and also have them audited. The auditor’s report must condition if the accounts happen to be correctly prepared in compliance using the Accounting Rules and whether these provide a true and fair view.
Appointment of Auditors
Each company is needed to appoint independent auditors who’re registered Cpas in Thailand. Cpas are registered and issued with licences through the Secretary of state for Commerce.
The Auditors are hired in the Annual General Meeting of Shareholders (AGM) for everyone before the next AGM. The AGM can also be needed to create the Auditor’s remuneration. Even though the auditor should be independent, the Civil and Commercial Code enables a business to appoint a shareholder being an Auditor if he offers the requisite qualifications.
Reporting Needs
All businesses are needed to file for some their audited fiscal reports, along with a yearly corporate tax return and statement of director/manager using the Revenue Department within 150 times of their financial year finish.
Companies, partnerships and branches of foreign corporations are needed to file for two teams of their audited fiscal reports along with a statutory annual return using the Companies’ Registration Department within five several weeks of the financial year-finish. Information mill also needed to incorporate mention of AGM that approved the fiscal reports along with a copy from the listing of shareholders of the organization as in the date from the AGM. Failure to fulfil these needs may lead to an excellent as high as 70,000 Baht.
