IFRS route in Vietnam? Information to know
The following article will provide you with answers to those questions with the detailed roadmap to apply IFRS in Vietnam published by the Ministry of Finance to answer questions such as: When will businesses in Vietnam Will South have to apply IFRS? And which businesses in Vietnam will have to apply?
IFRS route in Vietnam
Belonging to the “Project on the application of International Financial Reporting Standards (IFRS) in Vietnam” drafted by the Ministry of Finance and submitted to the Prime Minister for approval based on the Strategy on Accounting and Auditing until 2020, with a vision to 2030. in Decision No. 480/QD-TTg dated 18/03/2013 of the Prime Minister.
This application process consists of 3 phases:
- Preparation period: from 2019 to the end of 2021
- Voluntary application period: from 2022 to the end of 2025
- Compulsory period of application: from after 2025
2019 – 2021
Preparation stage
The preparation stage includes the necessary conditions such as:
– Publish IFRS translation into Vietnamese,
– Developing and promulgating documents guiding the application of IFRS,
– Develop related financial mechanism,
– Training human resources, deployment process for businesses.
2022 – 2025
Voluntary stage
Some of the following enterprises with voluntary needs and resources are selected by the Ministry of Finance:
– The parent company of a large state-owned economic group whose loans are financed by financial institutions, listed company,
– Large-scale public companies and unlisted parent companies,
– Other parent companies need and have sufficient resources to voluntarily apply IFRS.
– Separate financial statements:
– Enterprises with 100% foreign direct investment capital with demand and sufficient resources are voluntarily selected by the Ministry of Finance.
After 2025
Required stage
The Ministry of Finance shall base itself on the needs and readiness of enterprises and the actual situation to stipulate a specific time to apply for each specific object.
Enterprises subject to IFRS application must apply all IFRSs that have been in force under the provisions of the IASB at the same time. When the IASB amends and supplements the IFRSs, Vietnam will apply them no later than 3 years from the time the IFRS amendments and supplements take effect.
Enterprises voluntarily or forced to apply IFRS to prepare consolidated financial statements or separate financial statements are not required to prepare financial statements according to VAS, only have to prepare only one set of financial statements according to IFRS for publication in accordance with the provisions of law. law of Vietnam.
Plan to apply Vietnamese Accounting Standards (VAS)
All businesses in all fields and all economic sectors operating in Vietnam that are not subject to IFRS application are subject to VAS application.
Before 31 December 2024, the Ministry of Finance will issue a new system of Vietnamese accounting standards in accordance with IFRS, Vietnam’s management and administration requirements and business needs.
After that, the Ministry of Finance will regularly review the VAS, update the changes of the IFRS to ensure that the VAS is in line with international practices to the highest degree.
Hopefully, through the information on the roadmap to apply IFRS, it will help your company understand the stages of implementation.
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