Financial reporting standards are designed to provide accountants with a framework to follow when preparing a company’s accounts. The International Financial Reporting Standards are used for all public limited companies in Thailand and are used all over the globe for preparing the accounts of a company. The financial reporting standards are constantly evolving and continue to change over time, with new additions being made and other instructions being amended as well.
For companies in Thailand that need to prepare accounts regularly at the end of each quarter, using an IFRS software program is very important. IFRS 17 is designed to deal with insurance contracts, which play a very important role for local companies. Insurance contracts are made by numerous companies and combine features from service contracts, as well as financial instruments. Apart from that, the cash flows generated by insurance contracts continue to vary considerably over a larger period of time.
What Is IFRS 17?
The IFRS 17 standard combines current measurements generated from future cash flows while recognizing profit over the period where the services are provided under the contract. In many cases, it’s best for companies to make use of the IFRS 17 software in Thailand. It’s one of the best things that you can do for your company. Considering the varying nature of insurance contracts and the difference between several kinds of contracts, using a software program makes a lot of sense. Here are some of the many reasons why an IFRS 17 software is an excellent choice.
Saves Processing Time
One of the main reasons why you should purchase the IFRS 17 software program is because it saves a considerable amount of processing time. There are many kinds of insurance contracts that companies make with other insurance services. With the help of the IFRS 17 software program, you will be able to record the transactions directly.
There are two primary approaches that can be used: the simplified measurement approach, or the premium allocation approach. Modern software programs are designed for using various approaches, so instead of just relying on the first approach, the accounts can be prepared according to the needs of the company.
Disclosure of Information
Another reason why you should consider using the IFRS 17 software program is that it makes disclosure of information incredibly easy. The software program is capable of generating different kinds of financial statements. There are many different kinds of software programs that are used for accounting purposes. It’s recommended that you first check the software program properly and then use a trial version before making a decision. Disclosure of information is necessary for public limited companies because investors need the information before making decisions about whether to invest more money in the company or not.
Most software companies can create custom software programs for
local companies as well. If you have specific requirements for your software
program, you should consider getting a custom program made. These are just a
few things that you should know about accounting software programs.