Accounting Theory: An Introduction

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Accounting Theory An Introduction

• Lectured by Dr. Siriluck Sutthachai
• Accounting Department
• Faculty of Management Science
• Khon Kaen University, Thailand

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Accounting History

• Early History of Accounting
• Record-keeping
• A Systematic bookkeeping (A.C. Littleton) The
  art of writing Arithmatic Private property
  Money Commerce Capital
• Luca Pacioli Double-Entry Bookkeeping
• Accounting and Capitalism
• International Accounting Issues

3
Accounting Institutions

• International Institutions
• International Accounting Standard Board
  International Accounting Standards (IASs) and
  International Financial Reporting Standards
  (IFRSs)
• International Organisation of Securities
  Commission (IOSCO)
• International Federation of Accountants (IFAC)
• European Union (EU)
• United Nation
• World Bank

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Accounting Institutions

• International Institutions
• Securities Exchange Commission (SEC)
• Financial Accounting Standards Board (FASB)
  Statements of Financial Accounting Standards
  (SFASs)
• The American Institute of Certified Public
  Accountants (AICPA)

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Thai Accounting An Overview
6
The Development of Thai Accounting

• Before Ayudhya period No clear evidence to
  indicate when Thai accounting established.
  However, record keeping for trading in Thailand
  could be traced back since King Ramkamhang
  period.
• Ayudhya period Record keeping with Chinese style.

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The Development of Thai Accounting

• Rama I to Rama IV period Chinese accounting
  could be prevail in Thailand before Western
  accounting system.
• Rama V period Thai accounting system had been
  fully influenced by Westerners when King Rama V
  restructured Thai institutions.
• Thai accounting education
• Auditing
• Bookkeeping and tax calculation

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Accounting Law and Regulations

• The Civil and Commercial Code prescribes the
  minimum general accounting requirements for all
  business entities.
• The Ministerial Regulation No.2 (1976)
  prescribes the format and details for presenting
  financial reports.

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Accounting Law and Regulations

• The Public Limited Companies Act (section 113)
  public companies are required to prepare not only
  financial statements, according to the
  Ministerial Regulation No. 2, but also their
  annual report.
• The Securities Exchange of Thailand Act (section
  56) a listed company is required to prepare and
  submit periodic reports

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Accounting Law and Regulations

• The Accounting Act B.E.2543 (2000) requires all
  limited companies to comply with the TASs, issued
  by the ICAAT with the approval of the BSAP,
  unless there are other accounting rules for
  certain sectors.
• The Accounting Professions Act B.E. 2547 (2004)
  aims to restructure the two accountancy
  bodiesthe BSAP and the ICAAT.

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Thai Accounting Bodies

• The Board of Supervision of Accounting
  Professions (BSAccP) mainly responsible for
  supervising and approving the IAPT tasks.
• The Institute of Accounting Professions of
  Thailand (IAPT) responsible for checking and
  controlling accounting professionals with the
  authority for giving or revoking auditors and
  accountants licences, publishing the ethical
  guidelines for auditors and accountants, and
  issuing accounting and auditing standards.

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Thai Accounting Bodies

• The Thai Accounting Standard Board (TASB) set up
  Thai accounting standards.
• The Thai Accounting Association (ThAA) aims to
  raise the standard of accounting education,
  particularly of accounting academics and course
  design, in Thailand.

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Thai Accounting Bodies

• Thai Professional Accounting Bodies
• Federation of Thai Accounting
• Thai Accounting Standards Board
• Thai Auditing Standards Board
• Thai Accounting Association
• The Institute of Internal Audit of Thailand

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Thai Accounting Standards

• Accounting Act B.E. 2482 (1939) and Auditor Act
  B.E. 2505 (1962), were issued and referred to the
  generally accepted accounting principles (GAAP).
• Thai accounting standards have been developed by
  using western accounting standards as a model.

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Thai Accounting Standards

• In 1972, the ICAAT issued Recommended Accounting
  Concepts and Principles.
• In 1979, the first five accounting standards were
  issued.
• From 1986 to 1997, 25 standards were issued.
• From 1998 onwards, Thailand has adopted and
  adapted IASs.

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The Adoption of IASs
The table presents which IASs have been adopted