The roadmap for adopting IFRS in Vietnam would be divided into phases – from 2022 to 2025 and after 2025 (Photo: vietnam-briefing.com) Hanoi (VNS/VNA) - The Ministry ofFinance has issued a decision regulating the roadmap for the application ofInternational Financial Reporting Standards (IFRS), replacing the currentVietnamese accounting standards (VAS).
Under the Decision 345/QD-BTC on thedevelopment of plans, roadmaps and support the application of IFRS, the roadmapfor adopting IFRS in Vietnam would be divided into phases – from 2022 to 2025and after 2025.
In the first phase, the adoption of IFRSwould be encouraged. It could be adopted by certain subjected companies whichwere capable of making financial reports following international accountingrules or selected by the Ministry of Finance for pilot implementation.
The subjected businesses wishing to applyIFRS notify the Ministry of Finance before voluntarily applying IFRS. Theyinclude the parent companies of a large State-owned corporation, parentcompanies which are listed on the stock market, large-scale public companieswhich are unlisted parent companies.
After 2025, IFRS would be compulsory forconsolidated financial statements of SOEs, listed companies and unlisted publiccompanies, except for those which were subject to accounting rules for smalland medium and micro sized enterprises.
Necessary preparations such as translations,training and instructions would be made before 2021.
Firms in Vietnam currently apply Vietnameseaccounting standards (VAS) which were established more than a decade ago inmaking financial reports.
The ministry, however, said that VAS with 26standards was now outdated, compared to IFRS with 40 standards.
Demand for adopting IFRS in Vietnam wassignificant, the ministry said, which came mainly from listed companies andforeign-direct-investment firms.
Improving accounting rules had become vitalfor Vietnam, which would contribute to speeding up the country’s institutionalreforms and international integration, the ministry said.
It added that the adoption of IFRS in Vietnamwould help improve transparency in accounting and create favourable conditionsfor firms to access international capital sources as well as contributing toleveraging the level of the securities market./.
Under the Decision 345/QD-BTC on thedevelopment of plans, roadmaps and support the application of IFRS, the roadmapfor adopting IFRS in Vietnam would be divided into phases – from 2022 to 2025and after 2025.
In the first phase, the adoption of IFRSwould be encouraged. It could be adopted by certain subjected companies whichwere capable of making financial reports following international accountingrules or selected by the Ministry of Finance for pilot implementation.
The subjected businesses wishing to applyIFRS notify the Ministry of Finance before voluntarily applying IFRS. Theyinclude the parent companies of a large State-owned corporation, parentcompanies which are listed on the stock market, large-scale public companieswhich are unlisted parent companies.
After 2025, IFRS would be compulsory forconsolidated financial statements of SOEs, listed companies and unlisted publiccompanies, except for those which were subject to accounting rules for smalland medium and micro sized enterprises.
Necessary preparations such as translations,training and instructions would be made before 2021.
Firms in Vietnam currently apply Vietnameseaccounting standards (VAS) which were established more than a decade ago inmaking financial reports.
The ministry, however, said that VAS with 26standards was now outdated, compared to IFRS with 40 standards.
Demand for adopting IFRS in Vietnam wassignificant, the ministry said, which came mainly from listed companies andforeign-direct-investment firms.
Improving accounting rules had become vitalfor Vietnam, which would contribute to speeding up the country’s institutionalreforms and international integration, the ministry said.
It added that the adoption of IFRS in Vietnamwould help improve transparency in accounting and create favourable conditionsfor firms to access international capital sources as well as contributing toleveraging the level of the securities market./.
VNA
