21 Oct IFRS in Vietnam? When can these be expected?
As of 2023, the International Financial Reporting Standards (IFRS) have been adopted by the Ministry of Finance in Vietnam and are used as the basis for financial reporting by most Vietnamese companies. The IFRS was first introduced in Vietnam in January 1st, 2005 and has been gradually implemented by various companies over the past years. In 2016, the adoption of IFRS became mandatory for publicly listed companies and state-owned enterprises in Vietnam.
The implementation of IFRS has been beneficial for the Vietnamese economy as it improves the comparability and transparency of financial information, making it easier for investors to make informed decisions. The adoption of IFRS has also increased the confidence of foreign investors in the Vietnamese market, as they are more familiar with IFRS than with the previously used local accounting standards.
Despite these benefits, the implementation of IFRS has also posed some challenges for Vietnamese companies, particularly small and medium-sized enterprises (SMEs) that may lack the resources to fully understand and comply with the new standards. Therefore, it is advisable for companies in Vietnam to seek the help of a competent and experienced accounting firm to assist with the implementation and compliance with IFRS.
Overall, the adoption of IFRS in Vietnam has been a positive step towards improving the financial reporting and disclosure of companies in the country, and contributing to the growth and development of the Vietnamese economy.
In conclusion, IFRSs play an important role in promoting transparency, comparability and credibility in financial reporting, and are widely adopted by companies globally. Companies that are considering adopting IFRSs should seek the advice of a competent and skilled professional, such as an accountant or lawyer, to ensure they are in compliance with the standards and to minimize any long term risks.
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