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IN 2014.
Overview
Vietnam
Vietnam is a densely-populated developing country that has been transitioning from the rigidities of a
centrally-planned economy since 1986. Vietnamese authorities have reaffirmed their commitment to
economic modernization in recent years. Vietnam joined the World Trade Organization in January
2007, which has promoted more competitive, export-driven industries. Vietnam became an official
negotiating partner in the Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of
economic output has continued to shrink from about 25% in 2000 to less than 22% in 2012, while
industry's share increased from 36% to nearly 41% in the same period. State-owned enterprises account
for roughly 40% of GDP. Poverty has declined significantly, and Vietnam is working to create jobs to
meet the challenge of a labor force that is growing by more than one million people every year.
ThaiLand
II/ACCOUNTING STANDARDS
History
In 1997, Thailand began referring to the IAS (www.adoptifrs.org) after initially using the US
GAAP as the basis for its accounting principles. At the time, 17 of the country’s 23 accounting
standards were based on the IAS (Saudagaran & Diga, 2000) and partly grounded in the US
GAAP for dimensions that are not regulated by the IAS (Saudagaran, 2004). In order to
increase the competitiveness of Thailand's stock market, Thailand's TAS with IFRS started in
2007. The IFRS adopted in the country was published in 2009 (World Bank, 2008). In 2011,
the latest version of TAS and TFRS was issued and Thailand announced that it would fully
implement the IFRS for all companies that are listed in the Stock Exchange of Thailand (SET)
50 Index. In 2013, this implementation was expanded to companies listed in the SET 100
Index. Since 1 January 2014, the accounting standards used, Thai Financial Reporting
Standards (TFRS), is identical to the 2012 version of IFRS (IFRS Foundation 2016g).
1.Background Information
The purpose of this section is to describe the general background and history of the
International Financial Reporting Standards (IFRS), the adoption of IFRS within European
Union (EU), and the Thai Accounting Standard (TAS), as examining these areas will be
useful to understanding the challenges in IFRS harmonization in Thailand.
IFRS (Total) 37
TAS (Total) 30
- Table 1: Summary of total TAS compliant with the IFRS (KPMG Thailand, 2009;
CPAccount, 2009)
Not only investors and accountants but also several entities, both private and public,
suffer from the variety of accounting strategies. SEC, BOT, and the Revenue Department
have to deal with semi-convergent financial reports which are very difficult to verify in terms
of the accuracy of numbers and sufficiency of disclosures. Specialists like university
professors, economists, and analysts also need to update their knowledge since the IFRS
impacts not only accountants but also every economic area. Universities all over Thailand are
10
The International Accounting Standard (IFRS) has been introduced in Thailand since 1997 with
the plan of full adoption in 2011 for the 50 largest companies listed in the Stock. Exchange of
Thailand (SET). During the convergence process, however, some new standards have been
postponed and many impractical issues have presented themselves.