Based on the current tax law, the accrual basis together with certain specific guidelines are adopted for corporate income tax computation. Much of the law relating to revenue recognition has remained in place for more than a decade. Once the new accounting standard is applied, the performance over several accounting periods could vary as a result of the change in accounting principle. This is one of the challenges faced by a company preparing transfer pricing documentation when first adopting the new accounting standard. There may be more undiscovered tax/accounting differences that will impact directly on the corporate income tax computation as well as other tax areas and the documentation required.

Source: The Nation Bangkok February 13, 2018 18:00 UTC