The Finance Ministry is letting specialised financial institutions (SFIs) put off adopting International Financial Reporting Standard 9 (IFRS 9) for an additional five years from 2020.
The delay is to allow more time for SFIs to prepare for the new accounting standard, said Lavaron Sangsnit, director-general of the Fiscal Policy Office.
Early adoption for SFIs is still allowed in the event that they are ready to transition to the new reporting standard before the revised deadline, he said.
A Finance Ministry source said earlier that any delay in adopting IFRS 9 by SFIs was unlikely to erode investor confidence because they do not raise funds from overseas.
The government in 2018 decided to delay implementation of stringent new accounting rules for one year to 2020 to prevent any adverse impact on businesses.
IFRS 9 is replacing International Accounting Standard 39 (IAS 39).
Under IFRS 9, the accounting practices for banks will be tightened, particularly for loan-loss provisions.
Mr Lavaron said the Bank of Thailand will supervise each SFI's plan for adopting the new standard.
Conforming to the international reporting standard will ultimately strengthen SFIs after an initial pinch, he said, as each of them can then raise funds with bonds at a lower cost and without the Finance Ministry's guarantee.
