The accounting and financial-reporting landscape in Thailand is evolving rapidly. Both global standard-setters (such as the International Accounting Standards Board (IASB)) and local regulators (such as the Federation of Accounting Professions (TFAC)) are advancing changes that will affect companies’ preparation of financial statements, disclosures, and related processes. Staying ahead of these developments is essential — not only for listed and large companies, but increasingly for SMEs and their advisors.
In this article we walk through the key accounting-standard changes imminent in Thailand, the implications for business operations and finance teams, and practical actions your firm or clients should take now to prepare.
What’s Changing & Why It Matters
Adoption of Updated Financial-Instrument Accounting (IFRS 9 Financial Instruments)
A major forthcoming change concerns IFRS 9. The IASB amendment, effective for annual periods beginning 1 January 2026, tightens the guidance around the “Solely Payments of Principal and Interest” (SPPI) criteria and the business-model assessment for financial assets.
In Thailand, the equivalent local standard (TFRS 9) is expected to become effective for periods beginning on or after 1 January 2027 (with earlier adoption permitted).
Key implications:
- Companies holding investments, debt instruments or green/ESG-linked bonds must evaluate whether the contractual cash flows meet SPPI. If not, such assets must be measured at fair value through profit or loss (FVTPL), which can introduce greater volatility.
- The business-model assessment (i.e., hold-to-collect, hold-to-collect & sell, etc.) must reflect realistic operational intent and not just legal form.
- Accounting systems, disclosures and governance of financial-asset portfolios may need updating.
Presentation & Disclosure Changes (IFRS 18 & IFRS 19)
In April 2024 the IASB published IFRS 18 and IFRS 19. These standards are effective for annual periods beginning on or after 1 January 2027.
- IFRS 18 introduces changes in how financial statements are structured (e.g., profit-or-loss statement categorised into operating, investing, financing; increased disclosures of management-defined performance measures and reconciliations).
- IFRS 19 provides a reduced-disclosure framework for subsidiaries without public accountability, offering cost-benefits while maintaining key disclosures.
In Thailand, the TFAC/TAS regime is expected to reflect these updates, with local adoption likely for periods beginning on or after 1 January 2028 (or later).
Sustainability-Related Disclosures & Emerging Non-Financial Reporting
While strictly beyond “pure” accounting standards, the push toward sustainability disclosures is relevant for financial reporting, risk management, and investor communication. For example:
- The IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 – Climate-related Disclosures issued by the International Sustainability Standards Board (ISSB) are being consulted in Thailand.
- The Securities and Exchange Commission (Thailand) has launched draft regulations aligning listed-company disclosures with ISSB standards, with phased adoption starting in 2026–27.
Implication: Financial-reporting teams will increasingly need to consider environmental, social and governance (ESG) metrics, sustainability risks, and their embeddedness in accounting and finance processes.
What Should Businesses in Thailand Do Now?
Inventory Your Exposure & Impact
- Identify which new standards will impact your business: e.g., does your company hold debt/financial assets, issue or invest in ESG-linked instruments, have subsidiaries, or expect to fall under sustainability-reporting obligations?
- For each applicable standard (IFRS 9 amendment, IFRS 18/19, sustainability disclosures), evaluate:
- Effective date for your entity (publicly accountable or not)
- Systems / data implications (for disclosures, measurement models)
- Stakeholder impact (auditors, investors, banks, regulators)
Update Accounting Policies & Systems
- Ensure your accounting policies reflect the revised classification/measurement criteria. For instance, for IFRS 9, the SPPI test and business model assessment must be documented and supported.
- Review your internal controls, data capture and reporting tools: measurement of financial assets, disclosures of risk, performance measures, sustainability metrics.
- If you have subsidiaries without public accountability, evaluate whether adopting the reduced-disclosure option (under IFRS 19 / equivalent in Thailand) would simplify reporting.
Communicate & Train
- Communicate upcoming changes to relevant stakeholders: board, audit committee, finance team, internal and external auditors.
- Provide training for accounting staff on the changes (e.g., SPPI test, new presentation/disclosure requirements, sustainability disclosures).
- Update your external reporting roadmap/communications: e.g., investor-relations materials, audit planning, financial calendars.
Scenario-Plan and Monitor Regulatory Adoption
- Model “before & after” impact for key changes (for example: measuring the difference between amortised cost vs FVTPL under IFRS 9; or how the new profit-and-loss format under IFRS 18 might present your business).
- Monitor developments from TFAC, TFAC’s Accounting Standard Setting Committee, and the Royal Gazette for the Thai-language TFRS/TAS equivalents: remember Thailand translates and adopts IFRS standards with typically ~1-year delay.
- For sustainability disclosures, monitor SEC Thailand’s consultation and phased adoption timelines: begin 2026-27 for large listed firms.
Challenges & Opportunities
Challenges
- Complexity & cost: New classification/measurement tests (especially IFRS 9 amendment) will increase complexity for some companies.
- Data demands: More granular disclosures, new measurement models (e.g., ESG-linked instruments) will demand robust data systems.
- Change management: Finance teams and auditors will need to adapt to new presentation/disclosure formats and stakeholder expectations.
Opportunities
- Improved transparency and comparability: The new standards aim to provide investors and stakeholders with clearer and more meaningful information.
- Competitive edge: Companies that proactively align with new standards may attract investment and build better governance.
- Advisory services growth: From the perspective of your accounting service business, these changes create demand for advisory, training, system-implementation services, and readiness reviews.
Final Thoughts
The period 2026-27 marks a significant phase of transition in accounting and financial reporting in Thailand. While some changes (such as the IFRS 9 amendment) may be already on the horizon, others (such as IFRS 18/19 or full sustainability disclosure alignment) will follow in subsequent years.
For Thai businesses and their advisors, the key is not just compliance, but preparedness. By starting early—identifying impact, updating systems, training personnel, and communicating clearly—you can turn these regulatory developments from a compliance burden into a strategic advantage.
