Faculty of Business Administration

Intermediate
Accounting 2

Lectured by
Woody Vuttisit Boonprasertsuk
CPA (Thailand)

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 Faculty of Business Administration

Lecturer’s Profile

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 Faculty of Business Administration

Lecturer’s Profile

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 Faculty of Business Administration

Accounting is the business language

GAAP

GAAP = Generally Accepted Accounting Principles

(International Financial Reporting Standards)
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 Faculty of Business Administration

Accounting Types
Preparation basis for what To be submitted
to
Financial Useful Ministry of
Accounting GAAP Financial Statements Commerce
Tax Revenue
Accounting Revenue Code Tax submission Department
Managerial Management’s Efficiency & Top Management
Accounting assumption / criteria Decision making
Cost Production processes Actual cost per unit Management
Accounting

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 Faculty of Business Administration

Accounting Definition
A process of identification, measurement, recording and communication of
economic events of the company to report its results to the financial statement
users.

Identification Measurement Recording Communication

Select economic In term of monetary Journalize and Analyze and

events of a unit summarize interpret the
company the results results

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Identification process
Event

Purchase Answer about Pay a rental

the fees expense
a computer
Criteria

Did it affect to the company of financial position ?

Recording

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Accounting Vs. Auditing

Accounting Financial Statements

Top Management Manager

Identification Measurement Recording Communication

Select economic In term of monetary Journalize and Analyze and

events of a unit summarize interpret the
company the results results

Financial
Audited Perform tests of controls Auditor Statements
financial statements and audit business transactions
scapegoat
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Accounting Act BE. 2543

Person Responsible for

Management The accuracy of financial statements (FS)

Accountant The presentation & disclosure of FS

Auditor The opinion toward the audited FS

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Who is responsible for …..?

Engagement Management Auditor

1. Prepare financial statements & its notes

2. Review financial statements & its notes

3. Submit financial statements & its notes

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 Faculty of Business Administration
Personal Income Tax – (PIT)
Type of business entity Corporate Income Tax – (CIT)
Taxation in term of …….
1. Sole Proprietor PIT
- Perform everything by one person.
2. Partnership
- Investment between 2 persons or more.
2.1 Ordinary Partnership
- Partners are responsible for unlimited liabilities with a choice of registration.
2.1.1 Non-registered Ordinary Partnership PIT
- If unregistered with the MOC, they are non-juristic body of persons.
2.1.2 Juristic Ordinary Partnership CIT
- If registered with the MOC, they are juristic.

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Type of business entity

Taxation in term of …..
2.2 Limited Partnership
- Limited Juristic Partnership whose partners are CIT

2.2.1 Limited Partner

- Liabilities are limited not more than their investment. They have no right to
manage the business with a right to audit and advice the business.
2.2.2 Unlimited Partner
- They are responsible for all liabilities incurred and have a right to control
& manage the business.

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 Faculty of Business Administration

Type of business entity

Taxation in term of ……
3. Corporation
- Capital is divided into equal shares.
3.1 Private Company CIT
- Shareholders are at least x persons. (With tax benefits)
- Responsible for liabilities up to share value obtained & unpaid par-value.
.
- No objective to sell its shares publicly.
3.2 Public Company CIT
- Shareholders are at least 15 persons.
- Responsible for liabilities up to share value obtained & unpaid par-value.
- Apply for sale of shares at the SEC publicly.

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 Faculty of Business Administration

Business types
Sole Proprietor Partnership 1 Company
Tax base Net assessable inc. Net income Net income
Tax rate Progressive Progressive/Fixed Fixed
Creditability 1 2 3
Mandatory
bookkeeping Choice A Must A Must
Accountant’s Certificate of Higher
Education level None Vocational Education Bachelor
FS Auditor None TA / CPA CPA
Paid-in Capital None 100% 25%
1 Partnership whose registered shares > 5 M or Total assets/Total incomes > 30 M, FS auditor must be a CPA only.

CPA is a Certified Public Accountant of THAILAND from the FAP.

TA is a Tax Auditor from the Revenue Department.
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 Faculty of Business Administration

Comparative tax rates for AEC

PIT CIT VAT

Thailand 35% 20% 7%

Malaysia 26% 25% 10%

Singapore 20% 17% 7%

Vietnam 35% 25% 10%

Indonesia 30% 25% 10%

Philippines 32% 30% 12%

Brunei None 23.5% 0%

Cambodia 20% 20% 10%

Myanmar 40% 30% 5 – 30%

China 45% 25% 17%

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 Stockholders’
Asset Liability equity

Group Normal Balance (+) Sample

1) Asset Debit
2) Liability Credit
3) Equity Credit
4) Revenue Credit
5) Expense Debit

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 Financial Statements

1) งบกำไรขำดทุน 4) งบกระแสเงินสด และ

Statement of Income หมำยเหตุประกอบงบกำรเงิน #

2) งบแสดงกำรเปลี่ยนแปลง
ส่ วนของเจ้ำของ 3) งบแสดงฐำนะกำรเงิน
Statement of Financial Position
Statement of Retained Earning

# Statement of Cash Flows and Notes to financial statement

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Financial Statement overview
Statement of Benefit to be obtained

Income Operation result

Retained Earning Changes in the structure

of capital

Financial position Wealth

(Balance Sheet)

Cash Flow Acquisition and Usage

of cash
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 ชือ่ บัญชี
1) สินทรัพย์
สินทรัพย์หมุนเวียน
เงินสดและรายการเทียบเท่าเงินสด
ลูกหนี้การค้า
เงินลงทุนชัวคราว่
เงินให้กยู้ มื ระยะสัน้
สินค้าคงเหลือ
สินทรัพย์หมุนเวียนอื่น
สินทรัพย์ไม่หมุนเวียน
เงินลงทุนระยะยาว
เงินให้กยู้ มื ระยะยาว
ทีด่ นิ อาคารและอุปกรณ์
สินทรัพย์ไม่มตี วั ตน
สินทรัพย์ไม่หมุนเวียนอื่น
Account Name
ASSETS
Current assets
Cash & Cash equivalents
Trade accounts receivable
Short-term investments
Short-term loans
Inventories
Other current assets
Non-current assets
Long-term investments
Long-term loans
Property, Plant & Equipment
Intangible assets
Page 19 Other non-current assets
 ชือ่ บัญชี Account Name
2) หนี้สนิ LIABILITIES
หนี้สนิ หมุนเวียน Current liabilities
เงินเบิกเกินบัญชี Bank overdrafts
เจ้าหนี้การค้า Trade accounts payable
รายได้รบั ล่วงหน้า Unearned revenues
ค่าใช้จา่ ยค้างจ่าย Accrued expenses
เงินกูย้ มื ระยะยาวทีจ่ ะถึงกาหนด Current portion of L-T debts
หนี้สนิ หมุนเวียนอื่น Other current liabilities
หนี้สนิ ไม่หมุนเวียน Non-current assets
เงินกูย้ มื ระยะยาว Long-term debts
ตั ๋วสัญญาใช้เงิน Notes payable
หนี้สนิ ไม่หมุนเวียนอื่น Other non-current liabilities
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 ชือ่ บัญชี Account Name
3) ส่วนของเจ้าของ SHAREHOLDERS’ EQUITY
ส่วนของเจ้าของ Shareholders’ equity
ทุนจดทะเบียน Registered capital
ทุนทีเ่ รียกชาระแล้ว Paid-in capital
ส่วนเกินมูลค่าหุน้ In-excess of par value
กาไรสะสม Unappropriated retained earning
กาไรจัดสรรเพือ่ …… Appropriated retained earning for
4) รายได้ REVENUES
รายได้จากการ...... …….. Revenue
รายได้ดอกเบีย้ รับ Interest Revenue
5) ค่าใช้จา่ ย EXPENSES
ค่าเช่า Rental Expense
ค่าเสือ่ มราคา Depreciation Expense
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 Accounting Process

1. Analyze business transactions Document

Journal
2. Journalize the transactions into General Journal

3. Post the entries into ledger. Ledger

Prepare Trial
Financial Statements Balance

2) Retained
1) Income 3) Balance 4) Cash Flow
Earning
Statement Sheet Statement
Statement

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 รายการค้
รายการค้าา
Transaction

Voucher

Journal

Cash Purchases Sales General Other

Posting to Ledger
Trial
balance

FS
 Faculty of Business Administration

Abbreviation
GAAP = Generally Accepted Accounting Principles
FASB = Financial Accounting Standards Board
SFAS = Statements of Financial Accounting Standards
IFRS = International Financial Reporting Standards
IASB = International Accounting Standards Board
IAS = International Accounting Standards
SIC = Standing Interpretations Committee
IFRIC = International Financial Reporting Interpretations Committee
2000 Present
Because of big scandals (Enron, World Com)

IAS IFRS

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 Faculty of Business Administration

Overview of IFRS

GAAP

US GAAP IFRS

FASB Framework IASB Framework

SFAS IAS IFRS

SIC IFRIC

Before 2000 After 2000

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 Faculty of Business Administration

TFRS Convergence Project

IFRS TFRS
Conceptual framework Conceptual framework

IAS TAS

IFRS TFRS

Refer to US GAAP

Local GAAP
Local GAAP
= Allowance for doubtful account
= NPAE
Page 26 Financial Accounting / MBA. in Golf Business Management
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 Faculty of Business Administration

TFRS Overview

TFRS

PAE NPAE

TFRS for TFRS for

TAS TFRS US GAAP &
Local GAAP NPAE SME

PAE = Public Accountable Entities

NPAE = Non-Public Accountable Entities
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 Faculty of Business Administration

PAE Criteria
PAE covers the followings:
1. The entity has debt and/or equity securities available for sales to the
public in either local stock market or foreign stock markets and/or Over the
Counter. The entity is mandatory required to submit its FSs to the
the Office of Securities and Exchange Commission (SEC).
2. The entity has major business in assurance for taking care of assets
in public widely, e.g. Bank, Insurance, Assurance, Mutual Fund, etc.
3. Public limited company listed in the stock market.
4. Other entities which are announced later.

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 Faculty of Business Administration

Quiz
Company TFRS : PAE / NPAE

Thai Airway PLC PAE

Dtac PLC PAE

Beyond Accounting Co., Ltd. NPAE

AiA Co., Ltd. PAE

__________ Pawnshop PAE

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