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SEC cooperates with TFAC and APSC in laying out accounting guidelines to mitigate impacts of COVID-19 on listed companies

Friday 17 April 2020 | No. 78 / 2020

Bangkok, 17 April 2020 – The Accounting Professions Supervisory Committee (APSC)’s meeting on 16 April 2020 approved two accounting guidelines as a temporary support measure to mitigate the impacts of the Coronavirus disease (COVID-19), following the discussion on the matter between SEC and the Federation of Accounting Professions under the Royal Patronage of His Majesty the King (TFAC) on 13 March 2020. The guidelines will come into force after publication in the Government Gazette.

Following the discussion with TFAC on 13 March 2020, SEC submitted a letter to TFAC on 17 March 2020 to propose an issuance of accounting guidelines in response to the COVID-19 situation that could affect the preparation of financial statements of listed companies. The main objective of the guidelines is to ensure clarity of application of accounting standards in financial statements of listed companies during the crisis and mitigate potential impacts on business operation.

The two accounting guidelines approved by APSC on 16 April 2020 are: (1) the Temporary Relief Measures for Businesses Giving Assistance to Debtors Affected by Circumstances Impacting the Thai Economy, and (2) the Temporary Relief Measures for Additional Accounting Approaches to Mitigate Impacts of the COVID-19 Outbreak. These temporary measures apply to accounting matters of all businesses, in areas such as, allowance for doubtful accounts, fair value measurement, accounting for amendments to lease agreements, and assessment of impairment indicators, etc. TFAC will feature examples of each guideline and other related matters on YouTube in due course.

SEC Secretary-General Ruenvadee Suwanmongkol said: “We truly appreciate the support and corporation of TFAC and APSC in introducing the aforesaid accounting guidelines to reduce the impacts and limitations on the preparation of financial statements of listed companies during the COVID-19 outbreak. Due to the possibility of unpredictable outcomes, accounting estimates for the preparation of financial statements can be quite a challenge. In this regard, the proposed guidelines can be used as a temporary and optional measure; once the situation improves, financial statements of listed companies will reflect their financial position and operating results with more clarity. In addition to the temporary accounting guidelines, SEC has issued other support measures for listed companies in cooperation with relevant agencies such as guidelines for holding and postponing shareholders’ meeting and proxy voting, a deadline extension for submitting financial statements and appointing an auditor for the audit of quarterly financial statements, and a reduction of annual fee, etc.”