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FAP Presentation to IFAC
 

FAP Presentation to IFAC

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

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

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  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • The first professional body of Thailand, called the Institute of Certified Accountants and Auditors of Thailand (ICAAT) was established about 64 years ago, or in the year 1948. After long-milestone attempting to be legally recognized by the government, the Accounting Professions Act B.E. 2547 (2004) was issued and established “The Federation of Accounting Professions” or FAP. By then FAP superseded the former body ICAAT. About 3 years after that, all Thai accountants are very proud that FAP get royal permission to be the organization under the Royal Patronage of His Majesty the King. Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • The first professional body of Thailand, called the Institute of Certified Accountants and Auditors of Thailand (ICAAT) was established about 64 years ago, or in the year 1948. After long-milestone attempting to be legally recognized by the government, the Accounting Professions Act B.E. 2547 (2004) was issued and established “The Federation of Accounting Professions” or FAP. By then FAP superseded the former body ICAAT. About 3 years after that, all Thai accountants are very proud that FAP get royal permission to be the organization under the Royal Patronage of His Majesty the King. Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • By Law, duties of the FAP includes about Quality & Development and Representing its Professions , prescriptions for the following: • Standard-setter for accounting and auditing, including ethics standards • Certify accounting degree for its member / Accounting/bookkeeping professional qualifications and registration • Auditing Professions Practices Control, including qualifications and licensing of auditors • Enforcing professional ethics for auditors and accountants and the investigation and discipline of members and • Representing the professions. Under the Accounting Professions Act, corporate accountants/bookkeepers and auditors must be members of the Federation of Accounting Professions. They must perform their duties in accordance with the accounting, auditing, and ethical standards prescribed under the Act. The Act provides that the Accounting Standards Committee will develop and the Oversight Committee on Accounting Professions will approve accounting standards and that the standards will be published in the Royal Gazette; and the Federation of Accounting Professions will prescribe auditing and ethical standards. Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • To in charge of implementing the Accounting Professions Act, the FAP is under the overall administration of the Ministry of Commerce. Under this Act, “An Oversight Committee on Accounting Professions” was created to oversee the activities of the FAP including endorsement Thai accounting standards and consider appeals regarding FAP’s activities. The Oversight Committee comprises 14 members—7 from the Government sector, 3 from the private sector, 1 from the FAP, 2 accounting professionals and 1 legal professional. Following is the list of members of the Oversight Committee on Accounting Professions: • Permanent Secretary of the Ministry of Commerce – Chairman of the Oversight Committee • Director General of the Department of Insurance • Director General of the Department of Revenue • Director General of the Department of Business Development • Governor of the office of the Auditor General of Thailand • Governor of the Bank of Thailand • Secretary General of the Office of the Securities and Exchange Commission • President of the Federation of Accounting Professions • President of the Federation of Thai Industries • President of Thai Bankers Association • President of Thailand Chamber of Commerce • Two experts on accounting and one expert on law. Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • To perform and supervise the accounting profession, FAP should relate to many parties involved. Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • To facilitate and support investment in public and non-public companies, we shall consistently made efforts to have our final output; reliable financial reports . Thus, Accounting & Auditing Standards accordance with International standards are no doubt required. Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • • For the auditing standard status, at present all of Thai Standards on Auditing (TSA) have already been prepared in accordance with International Standards on Auditing (ISA). All amendments according to the Clarity Project have already been adopted. The new TSAs are effective for audit task of this year,2012 o Currently, most of Top 100 companies in Stock Exchange of Thailand (SET) are audited by Big 4 who have adopted ISA clarity since 2009. Therefore, most of these companies which represent the big market cap. have already been audited under ISA clarity. • Thus,to disseminate the new TSAs, FAP is focusing to provide education/ training to practitioners especially the small or medium audit firms throughout the whole country consistently in order to have them well prepared for the TSAs. • To enhance the audit firm quality control system,Thai Standard on Quality Control 1 (TSQC1) has been issued since 2010 and will be effective on 1 Jan 2014. However, audit firms of listed companies will be effective on 1 Jan 2013 according to the announcement by TH SEC. • Currently the Big4 have ready for implementation the TSQC 1. • FAP is focusing to develop and monitor the Firm Quality System by: o Facilitate and provide a center for developing quality control system for Small and Medium Size Practices (SMPs) o Develop the inspection plan and review work program o Establish the inspection team and joint with the TH SEC inspection team o Inspect, evaluate and report the results of Firm Quality system o hold the seminars/ practical workshops for SMPs. o visit the medium and smaller audit firms to provide constructive suggestion for the implementation of Quality system Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA
  • Welcome Chiyoda Subchapter,Tokyo Chapter,JICPA

FAP Presentation to IFAC FAP Presentation to IFAC Presentation Transcript

  • Sawasdee krub !! Sawasdee krubAll Compliance Advisory PanelAll Compliance Advisory Panel IFAC IFAC April 8th-9th 2013
  • FAP Representatives FAP Representatives1. Prasan Chuaphanich FAP Vice President, Chair of Auditing Committee2. Dr. Virach Aphimeteetamrong FAP Board member, Chair of Education Committee3. Vilai Chattanrasmee Secretary General4. Dr. Supphamit Techamontrikul Member, Thai Accounting Standard Setting Com.Observers:1. Yuvanuch Thepsongwach Technical Assistant, TASSC2. Chaovana Viwatpanachati Member, Auditing Committee3. Chaweerat Supphatada Senior Manager, Foreign Relation
  • Established 56 YearsEstablished Under the Royal Patronage
  • 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
  • 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
  • BOT DBRD D ICSE O C
  • PAEs(Publicly Accountable Entities) Reliable Financial Report NPAEs
  • 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 standardsWe are currently in the process of updating Thai financialWe are currently in the process of updating Thai financialreporting standards for the amendments and changes to reporting standards for the amendments and changes toreflect 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
  • 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.
  •  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
  • 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
  • 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
  • SMO 1 and QAAction plan 2013 Action plan 2013To enhance quality control system and establish••Organize TSQC1 basic and intensive Organize TSQC1 basic and intensivequality assurance programtraining courses/ workshop for training courses/ workshop foraudit firms of PIEs/non-PIEs as well audit firms of PIEs/non-PIEs as wellas for sole practitioners. as for sole practitioners.••Develop Quality Control Manual for Develop Quality Control Manual forSMPs (based on IFAC guide) and sole SMPs (based on IFAC guide) and solepractitioners (conclusion from practitioners (conclusion fromVolunteer program) Volunteer program)••Develop inspection team member Develop inspection team memberas well as inspection plan and work as well as inspection plan and workprogram for 2014 (effective date of program for 2014 (effective date of
  • SMOtools and practical 1 and QA (Cont.)Issues :: Lackof tools and practical ack of Issues Lexperiences in the implementing the experiences in the implementing theinspection process. Support from IFACis AC inspection process. Support from IF isneeded as below: needed as below:••Guide on best international practice of Guide on best international practice ofInspection 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 onpractical issues practical issuesGoing forward: Going forward:••A law to support the establishment of A law to support the establishment ofan independent audit regulator to an independent audit regulator to
  • 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)
  • 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.
  • 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.
  • 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.
  • • 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
  • 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
  • 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
  • Responsibility IESBA Code of Ethics SMO 4 and To develop the Code of Ethics forProfessional Accountants (who are FAPmembers) to be in accordance withThailand Accounting Professional Actand IESBA Code of Ethics.Upcoming Plan of Actions1.To hold the Second Public Seminaron the Draft Explanatory Guidelines onthe Code of Ethics in June, 2013, asrecommended by the FAP Board afterthe submission of the Draft inDecember, 2012.2.To propose the Final DraftExplanatory Guidelines to the FAPBoard for approval in July, 2013.
  • Issues 4 and IESBA Code of Ethics (Cont.) SMO The Code of Ethics for ProfessionalAccountants in Thailand in the pastwas only applicable for the accountingprofession in auditing. The current FAPCode of Ethics is applicable to otheraccounting professions includingbookkeeping, managerial accounting,etc. This causes difficulties to developthe Explanatory Guidelines based onthe same set of the Code of Ethics toclarify the Code in details for theabovementioned accounting
  • SMO 5 and IPSASs (Cont.)• Comptroller General’s Department(CGD) is responsible for setting and Action plan for 2013promoting adoption andimplementation of public sectoraccounting standards.• FAP’s role is to encourage theimplementation of IPSASs inThailand by; • providing relevant training; •giving advice and making policy recommendations to CGD upon request .
  • SMO 5 and IPSASs (Cont.)•CGD has recently appointed the Issuesworking team to helpidentification of key gapdifferences and is in an earlystage of implementing thestandards•CGD need support from keypolicy maker in implementing thestandards.
  • 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
  • SMO 6 and I&D (Cont.)Issues•The current law does not provide the EthicsCommittee with the capacity to impose thefull range of penalties recommended by theIESBA. In determining its findings, the EthicsCommittee operates as competent officialsunder the Penal Code and has the power towarn, put on probation, suspend, and revokea license or registration.•Investigation process should be timely•The team members need specific industryexperience ie banking or insuranceregulations in performing the investigation
  • SMO 6 and I&D (Cont.)Issues (cont.)•Linking information system among regulators and FAP couldimprove the investigation process•Lack of resources and qualified staff
  • • A full time 7 and IFRS (Cont.) will be SMO technical staffemployed within 2013•Ensure that we achieve the keytarget date in revisions of TFRSs inaccordance with 2012 boundvolume of IFRS;•During 2013 actively engagepreparers in adoption of new IFRS( BV 2013):•Work closely with the Bank ofThailand and banking industry in
  • 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
  • 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
  • Contact us :Federation of Accounting Professions133 Sukhumvit 21 Road (Asoke)Klong Toei Nua, Watthana DistrictBangkok 10110 Thailand+662 685 2500www.fap.or.themail: fap@fap.or.th 32