Vietnam: Implementation of IFRS - March 2024 - Accounting & Financial Reporting

Vietnam: Implementation of IFRS - March 2024

Mazars Vietnam

29th March 2024

On March 16th 2020, the Ministry of Finance signed Decision 345/QD-BTC approving " The project on application of financial reporting standards in Vietnam" with a number of contents related to the implementation of IFRS.

Objectives

To complete the legal framework on finance and accounting; Build effective and efficient management tools for the administration and operation at Businesses as well as the management and supervision of State authorities, contributing to the successful implementation of the country's socio-economic development goals.

To contribute to improving the transparency and efficiency of financial information, enhancing corporate accountability, protecting the business environment and legitimate interests of investors as well as promoting the regional and global integration of Vietnam's economy.

The roadmap for the implementation of international financial reporting standards (IFRS) in Vietnam for each specific group of businesses is as follows:

1. Phase 1: From 2022 to 2025, it is voluntary for businesses that are capable and have enough resources to prepare consolidated financial statements

2. Phase 2: From 2025 onwards, it is mandatory for businesses to prepare IFRS consolidated financial statements and separate financial statements.

Requirements and instructions on the implementation of IFRS:

Businesses must present and explain in detail in the financial statements the differences between accounting profit and taxable income (if any). Businesses shall declare and pay tax in accordance with the tax law.
Businesses subject to IFRS implementation must apply all standards that have been in force under the provisions of the International Financial Reporting Standards Board (IASB) at the same time. When the IASB amends, supplements or replaces the IFRSs, it is necessary to promptly publish the translation to unify the implementation.
Businesses shall have to apply IFRS, voluntarily or mandatorily, on a consistent basis throughout the financial year.
The Ministry of Finance shall publish the list of enterprises who are voluntary or required to prepare IFRS consolidated financial statements or separate financial statements on the website of the Ministry of Finance.

An understanding of IFRS and international accounting standards (IAS) is a prerequisite for the mandatory application of IFRS. Mazars Vietnam has been actively preparing a school of experts for the IFRS project through our internal trainings, ready to meet huge demands for the preparation and/or conversion of financial statements from VAS to IFRS with specific advice responding customer requests.

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Mazars Vietnam

Vietnam
www.mazars.vn

Mazars is an internationally integrated partnership, specialising in audit, accountancy, advisory, tax and legal services*. Operating in over 90 countries and territories around the world, we draw on the expertise of 40,400 professionals – 24,400 in Mazars’ integrated partnership and 16,000 via the Mazars North America Alliance – to assist clients of all sizes at every stage in their development.

Mazars in Vietnam was established in 1994, providing a broad array of professional services in audit and accounting, tax, financial advisory, as well as consulting and legal services. We have since grown to become one of the premier mid-tier firms in the country with two offices in Hanoi and Ho Chi Minh City. We are committed to helping our clients confidently build and grow their businesses and always seeking to understand our clients and their environments, adjust our recommendations and support accordingly.

Present in over 90 countries and territories, we work together as one team across borders and functions to deliver exceptional and tailored services. We combine our skills and expertise with both a global perspective and local knowledge. We empower our people to help clients make the most of opportunities, operate with conviction, and give confidence to their stakeholders.

With more than 200 professionals in Vietnam, we serve clients of all sizes not only in Vietnam but also across Asia-Pacific. Our multi-disciplinary team of professionals comprises Chartered Accountants, Certified Public Auditors, Tax Lawyers, Masters in Accounting and Finance, Masters in Business and Administration and Cost Accountants, who are all well equipped with the requisite business and technical skills, experience and knowledge base to deliver customised solutions to our clients of all sizes, across all sectors, while remaining agile, personal and distinct in our approach.

Mazars in Vietnam is ranked number one for the Accounting Outsourcing Services and among the top Auditing firms in Vietnam.

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