New TFRS Standards 2026

What Is TFRS — A Quick Summary

TFRS (Thai Financial Reporting Standards) is Thailand's financial reporting framework, issued by the Federation of Accounting Professions (FAP), the governing body for the entire accounting profession in Thailand.

TFRS is based on IFRS (International Financial Reporting Standards) — the global standard used worldwide — so that Thai companies' financial statements can be compared with those of international peers.

• Issued by: Federation of Accounting Professions (FAP)
• Based on: IFRS (International Financial Reporting Standards)
• Applies to: All entities required by law to prepare financial statements
• Two sets: Full TFRS (for PAEs) and TFRS for NPAEs (for smaller entities)

Understanding TFRS starts from the foundation — a correct Chart of Accounts is the critical starting point, since new standards may require adding or revising certain account codes.

Why TFRS Changes Frequently

Many wonder why accounting standards change every year when the old principles still work. The answer:

• International IFRS is updated annually — the IASB (International Accounting Standards Board) continuously issues Amendments and Improvements to fix real-world implementation problems.
• FAP must align TFRS accordingly — to keep Thai financial statements internationally recognized, attract foreign investors, and support cross-border trade.
• Business transactions grow more complex — new lease structures, complex financial instruments, digital assets, cryptocurrency — older standards simply do not cover them.
• Interpretation gaps arise — when accountants in different countries interpret standards differently, the IASB issues additional clarifications.

The changes are not trivial — they affect everything from the chart of accounts and calculation methods to report formats and notes to financial statements. Organizations that fail to prepare may find themselves scrambling to fix things during period-end close, an already high-pressure time.

Key TFRS Standards Every Accountant Must Know

Before discussing what changes in 2026, let us review the core standards with the greatest impact on day-to-day accounting work:

Standard	Topic	Key Impact
TFRS 9	Financial Instruments	Classification of financial assets, Expected Credit Loss (ECL) model
TFRS 15	Revenue from Contracts with Customers	5-Step Model for revenue recognition — requires Performance Obligation analysis
TFRS 16	Leases	Must recognize Right-of-Use Asset and Lease Liability on the balance sheet
TAS 12	Income Taxes	Deferred Tax Asset/Liability calculation — impacts net profit
TAS 36	Impairment of Assets	Must test for Impairment when indicators exist — impacts asset values on the balance sheet

Each standard above contains complex details and is subject to periodic amendments. What accountants must do is track which standards have been revised for the upcoming year and assess the impact on their own organization.

What Changes in 2026 — 3 Key Issues

For 2026, there are 3 main issues that accountants need to pay close attention to:

1. TFRS 16 Leases Amendment — Sale-and-Leaseback Transactions

TFRS 16, mandatory since 2020, dramatically changed how leases are recorded — operating leases that previously stayed off the balance sheet must now be recognized as Right-of-Use Assets and Lease Liabilities.

What changes in 2026:

• Sale-and-Leaseback Transaction amendment: Transactions where an entity sells an asset and leases it back now have new guidance on measuring the Lease Liability arising from such transactions.
• Impact: All existing Sale-and-Leaseback arrangements must be reviewed to verify that prior measurements still comply with the updated standard.
• Who is affected: Entities with Sale-and-Leaseback transactions — such as companies that sold their office building and lease it back, or sold machinery and leased it back.

2. Long-term Liability Classification (TAS 1 — Presentation of Financial Statements)

TAS 1 has been amended with new criteria for classifying liabilities as Current Liabilities or Non-current Liabilities — something that looks straightforward but has a larger impact than expected.

• New criterion: Liability classification at the reporting date must consider whether the entity has the right to defer settlement for at least 12 months — not merely the intention to settle at some future date.
• Loan covenants: If a loan agreement has conditions that must be met within 12 months after the reporting date, additional disclosures are required.
• Impact: Some liabilities previously classified as "non-current" may need to be reclassified as "current" — affecting the Current Ratio and liquidity position shown in the statements.

This directly affects the period-end close process, as reclassified liabilities will impact the statement of financial position.

3. TFRS for NPAEs Revised Edition — Reducing the SME Burden

NPAEs (Non-Publicly Accountable Entities) are entities without public accountability — in simple terms, companies not listed on the stock exchange, which represent the vast majority of businesses in Thailand.

• Multiple simplifications: Reduces requirements that were overly complex for small entities, such as those relating to financial instruments and disclosure obligations.
• Reduced reporting burden: SMEs do not need to comply with every provision of full TFRS, but must still prepare quality financial statements.
• Who benefits: Small and medium-sized enterprises that are not listed companies — the largest segment of the Thai economy.

Real-World Impact — What Accountants Must Do

When standards change, accountants must take several steps:

1. Review the Chart of Accounts

New standards may require recognizing account items that did not previously exist — such as Right-of-Use Asset or Lease Liability — meaning new account codes must be added. Setting up the chart of accounts correctly from the start will make the transition much smoother.

2. Update Financial Statement Formats

Liability reclassification under the amended TAS 1 may require revising the format of the statement of financial position, along with the notes to financial statements that require additional disclosures.

3. Review Lease Agreements

If the entity has Sale-and-Leaseback transactions, the measurements must be revisited under the amended TFRS 16. Previously recorded figures may need adjustment.

4. Update Accounting Policies

Whenever standards change, the entity must assess whether existing accounting policies remain appropriate and must disclose changes to accounting policies in the notes to financial statements.

5. Train the Accounting Team

Standard changes are meaningless if the accounting team does not understand them. Training sessions — or at minimum a summary of what has changed — must be shared with the team. Understanding the nature of accounting work helps illustrate why preparation is so important.

Accounting standards change every year — but if your system is flexible enough, change is not a crisis. It is just an update.

How ERP Supports New TFRS Standards

From our experience working with many organizations — both public sector and private — a good ERP system significantly reduces the burden of adapting to new accounting standards:

• Flexible Chart of Accounts: Add or revise account codes immediately, no developer needed — new standard requires a Right-of-Use Asset account? Done in minutes.
• Configurable Report Formats: Design financial statements to match new standards without writing new programs — regroup items, rename column headers, add line items as needed.
• Automated Calculations: Right-of-Use Asset, Lease Liability, Deferred Tax — these calculations are enormously complex by hand, but an ERP system calculates them automatically based on defined formulas.
• Audit Trail: Trace back exactly what was adjusted, when, and by whom — critical when your auditor asks "why did this number change?"
• Multi-standard Support: A good accounting system supports both full TFRS and TFRS for NPAEs — organizations choose the appropriate standard without switching systems.
• Automatic Reconciliation: Budget vs. actuals are reconciled instantly — reducing manual errors.

Summary

TFRS changes every year — this is the reality every accountant must face. But change need not be frightening, as long as you have the right tools.

A good ERP system makes the transition straightforward — update the chart of accounts instantly, produce reports in the new format, automatically calculate complex figures, and trace every transaction back to its source.

If your organization is preparing for new accounting standards, or needs a system flexible enough to adapt to changes every year, you can consult with the experts at Grand Linux Solution free of charge.

References

1. Federation of Accounting Professions (FAP). "Thai Financial Reporting Standards." https://www.tfac.or.th
2. IFRS Foundation. "International Financial Reporting Standards." https://www.ifrs.org