These forces are interconnected and have a direct impact on financial performance and reporting. PwC Thailand advises organisations to closely monitor updates to accounting and sustainability standards, and to reposition their finance functions as strategic partners. Leveraging data analysis and investment return insights can drive growth amid ongoing challenges.
Sinsiri Thangsombat, Assurance Lead Partner at PwC Thailand, emphasised that shifting geopolitical landscapes, trade tensions, and climate change are driving the need for business adaptation.
Speaking at the 'Corporate Reporting Forum', she explained how these factors directly affect operations and financial reporting. The forum was part of PwC Thailand's 2025 Symposium. An annual event, this year's theme was 'From insight to action: Staying ahead of change'.
She urged business leaders to closely monitor developments and implement responsive measures. Leaders also need to communicate transparently with stakeholders to demonstrate the management of risks and opportunities arising from these changes.
"Megatrends such as AI, climate change, and geopolitical tensions are impacting every dimension of business.
"Organisational leaders must respond creatively—seeking new opportunities through cross-industry collaboration, financial planning, sustainability reporting, strategic decision-making, and tax planning. These efforts are essential to navigating rapid change and driving growth in an increasingly complex world," Sinsiri said.
Monitoring updated financial reporting standards and sustainability reporting
Sinsiri noted that in 2025, several key financial reporting standards have been updated, which will impact the classification of liabilities, disclosure of financial assets, and the accounting for new types of debt instruments linked to future events, such as ESG-linked bonds.
New Guidelines for Liability Classification (TAS 1): the revised Thai Accounting Standard 1 (TAS 1) provides clearer guidance on the classification of liabilities, especially in cases where companies breach debt covenants and banks have the right to demand immediate repayment. The determination of whether a liability is current or non-current must be based on the company's compliance with covenants as of the reporting date, even if the assessment occurs after the reporting period. Companies that previously interpreted the standard differently may need to reclassify certain liabilities from non-current to current to comply with the updated standard.
Enhanced Disclosure for Financial Assets (TFRS 7): Thai Financial Reporting Standard 7 (TFRS 7) has been updated to require more comprehensive disclosure for equity instruments measured at fair value through other comprehensive income (FVOCI). The realized gains or losses from sales are not transferred from other comprehensive income to profit or loss, making it harder for users to see actual realized gains. The revised standard now requires companies to disclose realized gains and losses during the period, both for assets still held and those sold, as well as cumulative gains and losses previously recognized. This aims to provide users with a clearer picture of both realized and unrealized gains and losses.
Accounting for Debt Instruments Linked to Future Events and ESG-Linked Bonds: a key trend is the issuance of debt instruments whose interest payments depend on future events, such as ESG-linked bonds where rates are tied to the issuer's carbon emissions. For accounting purposes, holders must assess whether the instrument meets the "solely payments of principal and interest" (SPPI) criterion. If so, the business model—whether to hold for contractual cash flows, to sell, or both—determines the measurement approach. The forthcoming update to Standard 9 will further clarify how to assess instruments with interest payments linked to future events, ensuring consistency across companies.
Climate change has become a critical factor in financial planning and risk management, directly influencing organisational governance, financial structures, and strategic direction. Climate-related financial risks must be fully incorporated into financial statements in accordance with GAAP and IFRS requirements.
Therefore, organisations should carefully assess climate risks and link their impacts to financial and operational activities across the business. That way they can better understand potential effects on performance and financial outcomes.
Driving growth through AI and M&A
Sinsiri stated that AI has become a key strategic tool for organisations seeking to reduce operational costs and support decision-making in today's highly competitive business environment.
However, to fully realise the potential of AI, organisations must establish responsible AI frameworks while balancing business agility with appropriate controls. This approach will help ensure sustainable and worthwhile returns on investment.
Another emerging trend is increased interest in mergers and acquisitions (M&A), which serve as powerful tools for accelerating organisational growth. M&A strategies enable rapid access to new technologies such as AI, intellectual property, knowledge, specialised expertise, and expanded customer bases.
In some cases, organisations may also consider cross-industry partnerships or collaborations to efficiently extend their business scope beyond traditional sectors into new domains.
Sinsiri added that in today's fast-changing and complex business landscape, the finance function is no longer just a support unit. It's a key driver of organisational success. By using data intelligently, finance teams can help build sustainability and achieve stable growth.
To stay ahead in an uncertain world, business leaders must empower their finance teams to take on strategic roles. Bringing analytical and forecasting capabilities into decision-making at all levels is key to success.