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Summary of the Accounting Profession Act B.E.2547
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Summary of the Accounting Profession Act B.E.2547
 
          The Accounting Profession Act B.E.2547 is the new law notified to be used in replacement of the Auditor Act B.E. 2505. There are 78 sections and can be classified into 9 categories and the temporary provisions as follows :

          1. Definition of "Accounting Profession
"Accounting Profession" means the profession of accounting, auditing, managerial accounting, setting thee accounting system, tax accounting, accounting study and technology. In the future, if it turns out that any areas of accounting are important, the Minister of Commerce may issue the ministerial regulation to identify the additional accounting service in this definition such as internal audit, etc.

          2. Federation of Accounting Profession
The Federation of Accounting Profession is the juristic person aiming to promote and develop the accounting profession and has the following duties and authorities.

(1) Promote the accounting study, training and research.
(2) Promote the unity and dignity of members and provide the welfare and benefits among members
(3) Identify the accounting standard, auditing standard, and other standards related to accounting profession
(4) Identify the ethics for persons in the accounting profession
(5) Register the accounting profession, issue the license, suspend or repeal the accounting profession license
(6) Certify the Degree or certificate in accounting profession of various educational institutes in order for the benefit of the member’s application
(7) Certify the knowledge and expertise in the accounting profession
(8) Certify the training curriculum as the expert and certify various types of study for persons in the accounting profession
(9) Control the behaviors and members’ operations of the members and person who register for accounting profession according to the accounting profession’s ethics
(10) Assist, recommend, disseminate and provide service for people regarding the accounting profession
(11) Issue the regulations of the Federation of Accounting Profession
(12) Act as the representative of persons in the accounting profession
(13) Provide advice and recommend the government regarding the policy and problem regarding the accounting profession
(14) Perform other actions according to the objective and duties of the Federation of Accounting Profession according to the Accounting Profession Act B.E.2547.

3. Organization Structure according to the Accounting Profession Act B.E.2547
The Accounting Profession Act B.E.2547 identifies the committees for the benefit of supervising, developing knowledge, promoting the qualified accounting profession standard, and controlling the ethics of persons in the accounting profession. The committees are the accounting profession supervision committee, committee of the Federation of Accounting Profession Act, committee for identifying the accounting standard, the ethics committee, the accounting profession committee in each area and other committees. The structure and components of each committee are as follows.

          4. Members of Federation of Accounting Profession
Can be classified into 4 types as follows :

- Ordinary Members : Must be Thai nationality with at least 20 years or age and must graduate at least Bachelor Degree in Accounting or equivalent or other areas as specified by the Federation of Accounting Profession.
- Extraordinary Members :

          (1) In case of Thai nationality, must be at least 20 years of age and must graduate at least Bachelor Degree in Accounting or equivalent in Business Administration, Commerce, Economics, or other areas that the Committee of Federation of Accounting Profession believes that they are relevant to the accounting profession.
          (2) In case of non-Thai nationalities, must be persons with the nationality of the countries that allow persons with Thai nationality to perform audit profession in such countries and must be at least 20 years of age and must graduate at least Bachelor Degree in Accounting.

          - Joining Members : Must be Thai nationality, must be at least 18 years of age and graduate with at least Bachelor Degree but shall not be less than High Vocational Certificate in Accounting or other areas that the accounting is mainly instructed, Business Administration (Accounting) or Diploma in Accounting or such persons are studying the Bachelor Degree in Accounting.
          - Honorary Members : Experts who are invited to be the members according to the resolution of the Committee of Federation of Accounting Profession
Rights and Duties of Ordinary Members are as follows :

(1) Express the opinions in the annual meeting
(2) Vote in the annual meeting
(3) Elect, be elected, or be appointed as the committee members or other positions related to the businesses of the Federation of Accounting Profession
(4) At least 100 ordinary members can propose the draft of the regulations to the Federation of Accounting Profession
(5) At least 100 ordinary members can prepare the letter to request the President of the Federation of Accounting Profession to call for the extraordinary meeting
(6) Pay the membership fee or fee
(7) Maintain the dignity of the accounting profession and perform the duties according to the Accounting Profession Act B.E.2547
(8) Other duties and rights as specified by the Federation of Accounting Profession
The extraordinary members, joining members and honorary members shall have the rights and duties according to (1) (6) (7) and (8)

          5. Accounting Standard
The committee for identifying the accounting standard consisting of experts appointed by the Committee of the Federation of Accounting Profession from the persons who have knowledge, expertise, and experience in accounting of at least

          7 persons but not more than 11 persons and the representative from 6 relevant units to be responsible for identifying the accounting standard. The guideline for identifying the accounting standard of the Committee is as follows :

(1) The accounting standard must be in Thai language
(2) The accounting standard identified and adjusted by the committee for identifying the accounting standard shall be effective when it is approved by the accounting profession supervision committee and it is notified in the Royal Gazette.
(3) If the committee for identifying the accounting standard is informed by accountants who are responsible for preparing the accounting, users or other units that there are problems regarding the performance in compliance with the specified accounting standard that may lead to damages to the country's economic conditions or threats towards the business operations, the committee must verify and listen to the opinions of all relevant parties and identify, adjust, or develop the accounting standard as rapidly as possible.

          6. Controlled Accounting Profession
The Accounting Profession Act B.E.2547 preliminary identifies the controlled accounting profession in 2 areas, namely, auditing and accounting. However, in the future, if necessary, the Decree to identify the accounting profession in any areas may be identified in order to control such areas additionally.

         (1) Auditing Profession
The persons who can perform the auditing profession must be the ordinary members of the Federation of Accounting Profession and must have qualifications and do not have the prohibited characteristics as specified by the law and must obtain the license from the Federation of Accounting Profession. The auditor's license has no expiry period but must pay the annual license fee for 1,000 Baht a year and the auditor's license may be expired in various cases such as the membership of the Federation expires, lack of qualifications, the license is revoked, do not pay the fee, do not attend the training according to the criteria specified by the Federation, etc.

         (2) Accounting Profession
The persons who prepare the accounting must be the members of the Federation of Accounting Profession or register with the Federation of Accounting Profession before conducting the profession and must have the qualification and do not have the prohibited characteristics as specified by the law. The fee for registering as the accountant is 500 or 300 Baht a year depending on the educational level. The accountant who does not have the direct educational certificate in Accounting but acts as the accountant according to section 42, paragraph 2 of the Accounting Act B.E.2543 and informs to prepare the accounting to the Department of Business Development can prepare the accounting for the businesses until 9 August 2008 and must register to the Federation of Accounting Profession. In case that this group of accountants has the qualifications to be the extraordinary members, they can choose to register with the Federation of Accounting Profession. However, if such persons do not continue their study in order to obtain the direct educational certificate in Accounting, they, either the extraordinary members or registering to prepare the accounting, can prepare the accounting until 9 August B.E.2551 only. The accountant must perform the duties according to the Accounting Act B.E.2543 and the Accounting Profession Act B.E.2547 and when he / she starts preparing the accounting, he / she must inform the data regarding the accounting to the Department of Business Development and obtain the accountant code.

          7. Ethics of Persons who conduct the Accounting Profession

          7.1 Ethical Requirement

(1) The persons who conduct the accounting profession or persons who register with the Federation of Accounting Profession are responsible for the ethics of persons in the accounting profession and must perform the duties according to the accounting standard, auditing standard or other standards relevant to this Act.

(2) The Federation of Accounting Profession must prepare the Ethics in Thai language and at least must consist of the following requirement.

- Transparency, independence, honesty and integrity
- Knowledge, capability, and work standards - Responsibility towards the customers and confidentiality
- Responsibility towards shareholders, partners, or persons or juristic persons whom the accountant prepares the accounting for

(3) The following conducts can be viewed as misconduct towards the ethics

- Do not perform the duties according to the Ethics
- Do not perform the duties according to the accounting standard, auditing standard or other standards relevant to this Act.
- The certified public accountant must report the auditing outcome by mentioning the statement to demonstrate that he / she will not be responsible for the auditing outcome or demonstrate the unclearness in the auditing outcome due to the fact that he / she does not completely performs the duties according to the auditing standard.

7.2 Penalties from the misconduct has been identified from light to heavy punishment as follows :

(1) Written warning
(2) Probation
(3) Suspending the license / registration / prohibiting from conducting the accounting profession in the areas that are misconduct for no more than 3 years
(4) Revoking the license / registration or membership

7.3 Consideration and Punishment : When persons accuse that or the Ethics Committee find that the persons who conduct the accounting profession or persons who register with the Federation of Accounting Profession perform misconduct behaviors, the ethics committee will investigate immediately and if the outcome of the investigation turns out that such persons perform misconduct behaviors, the ethics committee shall have the order for punishment according to Clause 7.2. The issuance of the order for punishment or repealing the excuse must inform the person who is accused or person who accuses immediately.

7.4 The persons who accuse or persons whom the Ethics Committee order for punishment have the right to appeal the order to the accounting profession supervision committee via the Department of Business Development within 30 days from the date that they obtain the order according to the criteria and procedure specified by the accounting profession supervision committee, and such appeal does not lessen the performance according to the order for punishment, except the accounting profession supervision committee orders to perform other cases and the decision of the accounting profession supervision committee shall be considered final.

          8. Supervision by the Government Sector
Although the act specifies that the Federation of Accounting Profession is the center for supervision the persons who conduct the accounting profession, it is necessary for the government to supervise the Federation in order to maintain the fairness for persons in the profession. There is the accounting profession supervision committee consisting of 14 persons to supervise the policy from government and private entities and accounting and legal experts. This committee supervises the operations of the Federation of Accounting Profession in only important issues that may impact the public. The issues that must pass the consideration of the accounting profession supervision committee are as follows.

(1) Approval of the regulations regarding the fee/ membership fee, training criteria, qualifications and prohibited characteristics of the President, committee members of the Federation, etc.
(2) Considering the appeal from the persons in the accounting profession that are ordered to be punished by the Ethics Committee
(3) Considering the appeal in case that the Federation of Accounting Profession does not issue the license to persons who submit the request
(4) Approval of the accounting standard proposed by the Federation of Accounting Profession

          9. Juristic Person Conducting the Business regarding the Controlled Profession
The juristic person conducting the auditing or accounting business must perform the following :

          (1) Juristic person must register with the Federation of Accounting Profession according to the following condition.

- Juristic person providing auditing service or accounting service before the date that the Accounting Profession Act B.E.2547 is effective must submit to register with the Federation of Accounting Profession within 1 year from the date that this Act is effective or within 22 October B.E. 2548. However, if providing the service after the date that this Act is effective must submit the request for registration to the Federation of Accounting Profession within 30 days from the registration to establish juristic person at the Department of Business Development, Ministry of Commerce. The Federation of Accounting Profession identifies the juristic person registration fee for 2,000 Baht per person and must submit to renew the registration every 3 years from the registration date and must renew within 3 months before the expiry date.
- Such juristic person must provide the collateral to warrant the guilty towards third party according to the type, number, criteria and procedure identified by the ministerial regulation.
- In case that such juristic person conducts the auditing service, the authorized person of such juristic person must be certified public accountant. In case that such juristic person provides auditing or accounting service before 23 October B.E.2547 that this Act is effective, in addition to the registration with the Federation of Accounting Profession, there are temporary provisions that such juristic persons must perform as follows :
- Such juristic person must completely provide the collateral to warrant the guilty towards third party within the period specified by the ministerial regulation but must not exceed 3 years.
- In case that such juristic person conducts the auditing service, the authorized person of such juristic person must be certified public accountant within 3 years from the effective date of this Act (22 October 2550). (2) In case that the certified public accountant must be responsible for third parties, the juristic person must also be responsible for such third parties as the debtors and if they cannot completely compensate for the damages, the partners or the authorized directors must be responsible for such amount until it is complete, except they can prove that they are not related or do not allow the certified public accountant to conduct the offense.

          10. Penalties
The penalties according to the Accounting Profession Act B.E.2547 have both the penalties from misconduct behaviors as mentioned in Clause 7 and criminal penalties (fine and imprisonment). In addition, in case that it is the continuous offense, there are daily fines until the parties take accurate actions. Request for Business Operations Certificate under JTEPA Since Thailand and Japan has prepared the JTEPA agreement, the persons who conduct the business according to the attachment of the Aliens Business Operations Act B.E.2542 and who are under JTEPA condition can request for the business operations certificate from the Director-General of the Department of Business Development with the attached details. The Director-General shall issue the certificate within 30 days from the date that the Director-General obtains the request for certificate. For additional details, please contact : Office of the Secretary of the Aliens Business Operations Committee Department of Business Development, Muang District, Nonthaburi Province Telephone Number 0-2547-4425-26 e-mail : foreign@dbd.go.th

 
 
 
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