If you have questions like:
- When will businesses in Vietnam have to apply IFRS?
- Which businesses in Vietnam will have to apply IFRS?
The following article will provide you with answers to those questions with the detailed roadmap for applying IFRS in Vietnam published by the Ministry of Finance.
IFRS application roadmap in Vietnam
The roadmap to apply IFRS in Vietnam is included in the “Project on the application of International Financial Reporting Standards (IFRS) in Vietnam” drafted and announced by the Ministry of Finance in Decision No. 345/QD-BTC dated 16 03/2020.
This application roadmap consists of 3 phases:
- Preparation phase: from 2020 to the end of 2021
- Voluntary application phase: from 2022 to the end of 2025
- Compulsory period of application: from 2025
How to apply IFRS in Vietnam
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 after the effective date of the amendments and supplements to the IFRS. 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 December 31, 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.