Accounting Theory:
An Introduction
Lectured by Dr. Siriluck Sutthachai
Accounting Department
Faculty of Management Science
Khon Kaen University, Thailand
Accounting History

Early History of Accounting
Record-keeping
 A Systematic bookkeeping (A.C. Littleton): The art
of writing; Arithmatic; Private property; Money;
Commerce; Capital

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Luca Pacioli: Double-Entry Bookkeeping
Accounting and Capitalism
International Accounting Issues
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

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)

Thai Accounting:
An Overview
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.
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

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.
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
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 bodies—the BSAP and the
ICAAT.
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.
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.
The Accounting Professions Act B.E. 2547
The Ministry of
Commerce-DBD
The Board of Supervision
Accounting Professions
(BSAccP)
The Institute of Accounting
Professions of Thailand
(IAPT)
The Thai Accounting
Standard Board
The Committee of
Accounting Enthic
Supervision
Other committees e.g.
Auditing Standards
Board, AIS Committee
and Corporate
Govenance Committee
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
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.
Thai Accounting Standards

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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.
The Adoption of IASs
The table presents which IASs have been
adopted