Presentation given by the Thai Federation of Accounting Professions (FAP) to the Compliance Advisory Panel of the International Federation of Accounting (IFAC).

1. Sawasdee krub !!
Sawasdee krub
All Compliance Advisory Panel
All Compliance Advisory Panel
IFAC
IFAC
April 8th-9th 2013

2. FAP Representatives
FAP Representatives
1. Prasan Chuaphanich FAP Vice President,
Chair of Auditing Committee
2. Dr. Virach Aphimeteetamrong FAP Board member,
Chair of Education Committee
3. Vilai Chattanrasmee Secretary General
4. Dr. Supphamit Techamontrikul Member, Thai
Accounting Standard Setting
Com.
Observers:
1. Yuvanuch Thepsongwach Technical Assistant, TASSC
2. Chaovana Viwatpanachati Member, Auditing Committee
3. Chaweerat Supphatada Senior Manager, Foreign Relation

3. Established
56 Years
Established
Under the Royal Patronage

4. To improve quality and
development of Professions: Committee
• Standard Setter (IFRSs, ISAs Accounting
and Ethics) Auditing
• Regulate Professional Licenses Managerial
(CPA, ISQC) Accounting
Accounting
• Training System
• Disseminate Knowledge to
Tax Accounting
Public
Education &
• Promote Integrity Technology
• Advise policies and problems
of Professions to Government Ethics
A/C Standard
Setter

5. The Oversight
Committee
Ethics
FAP Board
Audit
President Specialist
Committee
• Accounting Accounting
• Auditing Operation Ethics
Standard Setter
• Managerial Accounting
• Accounting System
• Tax Accounting
•Education & Technology

6. BOT
DB
RD
D
IC
SE
O
C

7. PAEs
(Publicly Accountable
Entities)
Reliable
Financial Report
NPAEs

8. We have adopted the convergence approach
and have substantially applied IFRS since 2011
(based on the BV 2009 blue book), with the
exception of the industry specific standards
IFRS 4, IAS 41 and those financial instruments
standards
We are currently in the process of updating Thai financial
We are currently in the process of updating Thai financial
reporting standards for the amendments and changes to
reporting standards for the amendments and changes to
reflect the BV 2012 with the aim of adoption in 2014
reflect the BV 2012 with the aim of adoption in 2014
 New IFRS which are effective in 2013 are
planned to be implemented by 2015

9. Financial Instruments Timeline
Thailand’s financial institutions (together with Bank of of
Thailand’s financial institutions (together with Bank
Thailand’s financial institutions (together with Bank of
Thailand) felt that it would not appropriate toto invest in the
Thailand) felt that it would not appropriate toinvest in the
Thailand) felt that it would not appropriate invest in the
system while the standards unstable. ItIthasnow planned to to
system while the standards unstable. Ithas now planned to
system while the standards unstable. has now planned
adopt IFRS 9 and IAS 32/IFRS 77withinone year after IFRS 9
adopt IFRS 9 and IAS 32/IFRS 7within one year after IFRS 9
adopt IFRS 9 and IAS 32/IFRS within one year after IFRS
9 becomes effective which expect be 2016.
becomes effective which expect to to be 2016.
becomes effective which expect to be 2016.

10.  Thailand has used local GAAP for non-publicly
accountability entities (NPAEs)
 Local GAAP for NPAEs are short and simple using cost base
 A study is in progress for the adoption of IFRS for SMEs
with the aim of finalization the study within 2013 ,
implementation is targeted for 2015.
The proposed plan willwill a two-tiered approach i.e. i.e.
 The proposed plan be betwo-tiered approach i.e.
The proposed plan will be a a two-tiered approach
---large entities apply IFRS for SMEs
large entities apply IFRS for SMEs
large entities apply IFRS for SMEs
---medium/small entities apply local GAAP for
medium/small entities apply local
medium/small entities apply local
GAAP for NPAEs
NPAEsGAAP for NPAEs

11. Auditing Standard Progress
• New TSAs from ISAs (Clarity Project) are effective
on Jan 2012.
• Thai Standard on Quality Control 1 (TSQC1) has
been issued since 2010 and will be effective on
Jan 2014.
o Currently Big 4 and some middle tier firms
have early adopted the new standards.
o FAP is focusing on promoting and educational
SMPs
o A full time team has been employed since july
2012 with the inspection plan to commence in
2014

12. Training Center in 2012
• Provide a variety of classroom-style
courses, totally 245 in 2012;
• 138 in Accounting
• 71 in Auditing
• 29 in Taxation
• 7 in Focus Group
• 2,869 CPD hours
• 17,463 Attendances

13. SMO 1 and QA
Action plan 2013
Action plan 2013
To enhance quality control system and establish
••Organize TSQC1 basic and intensive
Organize TSQC1 basic and intensive
quality assurance program
training courses/ workshop for
training courses/ workshop for
audit firms of PIEs/non-PIEs as well
audit firms of PIEs/non-PIEs as well
as for sole practitioners.
as for sole practitioners.
••Develop Quality Control Manual for
Develop Quality Control Manual for
SMPs (based on IFAC guide) and sole
SMPs (based on IFAC guide) and sole
practitioners (conclusion from
practitioners (conclusion from
Volunteer program)
Volunteer program)
••Develop inspection team member
Develop inspection team member
as well as inspection plan and work
as well as inspection plan and work
program for 2014 (effective date of
program for 2014 (effective date of

14. SMOtools and practical
1 and QA (Cont.)
Issues :: Lackof tools and practical
ack of
Issues L
experiences in the implementing the
experiences in the implementing the
inspection process. Support from IFACis
AC
inspection process. Support from IF is
needed as below:
needed as below:
••Guide on best international practice of
Guide on best international practice of
Inspection program for PIE and SMP
Inspection program for P s and SM s
IEs Ps
••Workshop or seminar for regulators
W orkshop or seminar for regulators
••Networking with IFACmembers on
AC
Networking with IF members on
practical issues
practical issues
Going forward:
Going forward:
••A law to support the establishment of
A law to support the establishment of
an independent audit regulator to
an independent audit regulator to

15. SMO 2
O
SM 2
• SMO 2: International Education
Standards for Professional
Accountants and Other
Pronouncements Issued by the IAESB
• The Accounting Education
• and Technology Committee
• Federation of Accounting Professions (FAP)

16. SMO 2
O
SM 2
• All Accounting Curriculum offered in
Thailand meet all IES Requirement
– Appointing the subcommittee to review
accounting curriculum.
– Assigning FAP representative to each university
offering accounting program.
– Adopting the IES requirements as the FAP
education requirements.
– Organizing the seminar for FAP representative in
June 2013 to update regulations related to
education.

17. SMO 2
O
SM 2
• Key Accomplishments
• Publish All Translated Revised IESs
– Appointing the subcommittee to monitor new and
revised IESs.
– Translating IESs into Thai and publish on the FAP’s
website.
– Providing all universities in Thailand that offer
undergraduate degree in Accounting with the IESs
information.

18. SMO 3 and IAASB
• All International Standards
and Other Pronouncements
Accomplishment
issued by IAASB (Handbook
2010) were translated into
Thai without any
modifications;
• These standards are effective
for audits of financial
statements for periods
beginning on or after 1
January 2012.

19. • We have notified our member
SMO 3 and IAASB (Cont.)
of all new, proposed and
revised International
Standards and Other
Pronouncements issued by
IAASB via www.fap.or.th and
newsletter
• We have promoted the use of
IAASB practice notes and other
non-authoritative guidance by
translating them into Thai and
having them incorporated into

20. SMO 3 and IAASB (Cont.)
Action plan for 2013
Action Plan for 2013
• An indepth training / workshop in key areas
- risk assessment
- use of expert
- audit of an estimate
• Continue on the training of the audit report
• Develop practise manual / quidances
• Continue to provide comments to IAASB on exposure draft

21. SMO 3 and IAASB (Cont.)
Issues
Issues
• Enhance practical experience of individual auditors and
small audit firms in the areas of risk assessment, control
testing , materiality
• Create awareness of auditors in fraud risk

22. Responsibility IESBA Code of Ethics
SMO 4 and
To develop the Code of Ethics for
Professional Accountants (who are FAP
members) to be in accordance with
Thailand Accounting Professional Act
and IESBA Code of Ethics.
Upcoming Plan of Actions
1.To hold the Second Public Seminar
on the Draft Explanatory Guidelines on
the Code of Ethics in June, 2013, as
recommended by the FAP Board after
the submission of the Draft in
December, 2012.
2.To propose the Final Draft
Explanatory Guidelines to the FAP
Board for approval in July, 2013.

23. Issues 4 and IESBA Code of Ethics (Cont.)
SMO
The Code of Ethics for Professional
Accountants in Thailand in the past
was only applicable for the accounting
profession in auditing. The current FAP
Code of Ethics is applicable to other
accounting professions including
bookkeeping, managerial accounting,
etc. This causes difficulties to develop
the Explanatory Guidelines based on
the same set of the Code of Ethics to
clarify the Code in details for the
abovementioned accounting

24. SMO 5 and IPSASs (Cont.)
• Comptroller General’s Department
(CGD) is responsible for setting and
Action plan for 2013
promoting adoption and
implementation of public sector
accounting standards.
• FAP’s role is to encourage the
implementation of IPSASs in
Thailand by;
• providing relevant training;
•giving advice and making policy
recommendations to CGD upon
request .

25. SMO 5 and IPSASs (Cont.)
•CGD has recently appointed the
Issues
working team to help
identification of key gap
differences and is in an early
stage of implementing the
standards
•CGD need support from key
policy maker in implementing the
standards.

26. SMO 6 and I&D (Cont.)
Action plan for 2013
• FAP plans to recruit more skilled staff at all levels
• Continue to update and issue regulations of I&D
• Report the outcome of the operations quarterly to the
Oversight Committee on Accounting profession

27. SMO 6 and I&D (Cont.)
Issues
•The current law does not provide the Ethics
Committee with the capacity to impose the
full range of penalties recommended by the
IESBA. In determining its findings, the Ethics
Committee operates as competent officials
under the Penal Code and has the power to
warn, put on probation, suspend, and revoke
a license or registration.
•Investigation process should be timely
•The team members need specific industry
experience ie banking or insurance
regulations in performing the investigation

28. SMO 6 and I&D (Cont.)
Issues (cont.)
•Linking information system among regulators and FAP could
improve the investigation process
•Lack of resources and qualified staff

29. • A full time 7 and IFRS (Cont.) will be
SMO technical staff
employed within 2013
•Ensure that we achieve the key
target date in revisions of TFRSs in
accordance with 2012 bound
volume of IFRS;
•During 2013 actively engage
preparers in adoption of new IFRS
( BV 2013):
•Work closely with the Bank of
Thailand and banking industry in

30. SMO 7 and IFRS (Cont.)
Key issue for adoption of IFRS
 Within Thailand the process of adoption requires a good
understanding of IFRS in the context of the Thai people and
business
 Many do not see the need for adoption as the size of their
company is small
 Confidence in adopting IFRS has been undermined by the
financial crises in the US and the EU
 Constant changes to the standards have a destabilising
effect and therefore many are reluctant to move forward

31. SMO 7 and IFRS (Cont.)
Key issue for adoption of IFRS (Cont.)
• FAP receives support from dedicated members of
TASSC who are not full time
• A full time technical staff is required to provide
support to TASSC members
• More illustrative examples to deal with practical
issues

32. Contact us :
Federation of Accounting Professions
133 Sukhumvit 21 Road (Asoke)
Klong Toei Nua, Watthana District
Bangkok 10110 Thailand
+662 685 2500
www.fap.or.th
email: fap@fap.or.th
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