Project Accounting & TFRS

Where to start when reading a developer's financial statementsReading the three statements, the condo cash cycle, eight numbers every project owner should know, and the order of evidence each reviewer relies onStage 2 Funding & Presale, Stage 3 Construction, Stage 4 Transfer & Closing
Phantom profit in the real estate businessFive causes of overstated profit in the financial statements and cash flowing out as tax in the transfer year, with numerical examplesStage 3 Construction, Stage 4 Transfer & Closing
Abnormal WIPClassifying WIP, commission and selling expenses, with warning signs and checkpoints for project costsStage 1 Land & Feasibility, Stage 3 Construction
WIP in housing estate projects: effects on the financial statements and planning principlesHow WIP affects the financial statements across three project stages, and six principles for setting up WIP correctlyStage 3 Construction, Stage 4 Transfer & Closing
Customer advances and how the money is usedReading customer advances as a contract liability, their effect on how funds are used, and separating the risks of the SPA and leaseholdStage 2 Funding & Presale, Stage 4 Transfer & Closing
Knock-on effects of incomplete WIP recordingWhen project costs are recorded as expenses: seven dimensions of impact on equity, tax, loans and the financial statements, with ways to fix themStage 3 Construction, Stage 4 Transfer & Closing
Related-party transactions and cash leakageCheckpoints for director accounts, intercompany transactions and tax, and controls when bookkeeping is outsourced, including fund transfersStage 2 Funding & Presale, Stage 3 Construction
WIP account structure for condominium projects, with checklistSix groups of project cost accounts, correct references to the standards, and a WIP capitalisation checklistStage 3 Construction
Warning signs in revenue, costs and taxRisky account names, fraud patterns, taxes that can escalate into legal cases, and tax burdens across the condo project cycleStage 1 Land & Feasibility, Stage 2 Funding & Presale, Stage 3 Construction, Stage 4 Transfer & Closing, Stage 5 Exit & Hold
The cost cycle of condominium projects under TFRSA six-phase framework from land purchase to ownership transfer, showing which costs to capitalise or expense, with examplesStage 1 Land & Feasibility, Stage 2 Funding & Presale, Stage 3 Construction, Stage 4 Transfer & Closing
Checklist for owners and internal auditorsA five-pillar control system, checklists from weekly to annual, a red-flag register and 20 monthly questionsStage 2 Funding & Presale, Stage 3 Construction, Stage 4 Transfer & Closing
Calculating cost per unit by net saleable area (NSA) to close the project accountsSeven steps from collecting WIP to recording on transfer day, tax and closing WIP, using the NSA method and specific identificationStage 4 Transfer & Closing
Recording Presale-stage costs: capitalise or expenseSeparating commission, show units and marketing materials into assets or expenses, with a decision treeStage 2 Funding & Presale
Accounting for commission to obtain contractsRecording brokerage fees as a contract cost asset under TFRS 15, amortisation, and the difference between salary and commissionStage 2 Funding & Presale, Stage 4 Transfer & Closing
Accounting for VAT refunds from the Revenue DepartmentThe accounting cycle from input VAT to receiving the refund, partial approvals, and limits on input VAT in real estate sales businessesStage 3 Construction
Costs come first, revenue comes later: timing gap and funding gapWhy a profitable business can run short of cash: five sources of timing gap, examples from four businesses, ways to respond, and indicatorsStage 1 Land & Feasibility, Stage 2 Funding & Presale, Stage 3 Construction
Land, WIP and unsold units: TAS 2 for developersClassifying, accumulating and allocating costs and testing NRV for real estate inventory, with a 200-unit project exampleStage 1 Land & Feasibility, Stage 3 Construction, Stage 4 Transfer & Closing
Deferred tax: reading TAS 12 from the balance sheetSeparating permanent from temporary differences, calculating DTA and DTL by tax base, with examples for machinery, hotels and ETRStage 4 Transfer & Closing, Stage 5 Exit & Hold
Hotels held by the developer: cost, depreciation and impairment under TAS 16Costs that can be capitalised, the component approach, renovation and impairment testing, with a full-service hotel exampleStage 3 Construction, Stage 5 Exit & Hold
Interest during construction: when to capitalise under TAS 23 and when to stopCalculating IDC for specific and general borrowings, including commencement, suspension and cessation, and the effect on the financial statementsStage 2 Funding & Presale, Stage 3 Construction
Investment property: choosing cost or fair value under TAS 40Comparing the effects of the two models, asset transfers between classifications, tax issues, and an example of a rental buildingStage 5 Exit & Hold
When condo revenue is recognised: TFRS 15 and the transfer of controlThe 5-step model for Presale cases, and issues of variable consideration, financing components, principal versus agent, and contract costsStage 2 Funding & Presale, Stage 4 Transfer & Closing
Leases and leasehold: TFRS 16 and what developers must separate for accounting and taxROU asset, lease liability, the effect on Covenants, and leasehold analysis that separates accounting principles from taxStage 1 Land & Feasibility, Stage 2 Funding & Presale, Stage 5 Exit & Hold
Should a developer use full TFRS or TFRS for NPAEs: differences that affect the financial statements and fundraisingComparing PAEs and NPAEs on revenue, leases, financial instruments, deferred tax and fundraising preparationStage 2 Funding & Presale, Stage 5 Exit & Hold
What is the property held for: separating investment property from PP&E in a projectA decision tree for choosing between TAS 2, TAS 16 and TAS 40, with sample classifications of items in a real projectLand & Feasibility, Exit & Hold
Deferred tax in condo projects: brokerage fees, down payments and interest during construction (IDC)Analyses temporary differences in condo projects, corrects the direction of the DTL on brokerage fees, and separates SBT from TAS 12Funding & Presale, Construction, Transfer & Closing
Branded residences and rental pool: structure, accounting, tax and lawPool models, return calculation, recognition under TFRS 15 and the Thai legal points a developer must checkLand & Feasibility, Funding & Presale, Exit & Hold
Practical guide to accounting for land acquired for project developmentFour types of payment made before transfer, land after transfer, costs that can be capitalised, how the land enters the development company, and differences between accounting and taxLand & Feasibility
Practical guide to accounting for in-house labour costs in project developmentThree questions to decide between WIP and expense, when to start and stop WIP, work groups, and the legal hurdles for foreign employeesConstruction
Commission: in-house staff vs external agentsTFRS 15 guidance on separating incremental costs that must be recognised as an asset from costs expensed immediatelyFunding & Presale, Transfer & Closing