Vietnam Accounting Standards (VAS) and International Financial Reporting Standards (IFRS) are two widely recognized sets of accounting standards used to report financial statements of businesses. While VAS is developed and issued by the State Securities Commission of Vietnam, IFRS is issued by the International Accounting Standards Board (IASB). The adoption of IFRS by countries worldwide, including Vietnam, has been driven by the need for increased transparency and comparability of financial information.

The differences between VAS and IFRS can be summarized as follows:

1. VAS is more prescriptive and detailed compared to IFRS, which is principles-based and provides more flexibility in accounting choices.
2. VAS requires a more conservative approach to accounting and has stricter recognition criteria for financial instruments, compared to IFRS.
3. VAS requires the recognition of unearned revenue as income in the period it is earned, while IFRS allows for the recognition of unearned revenue only when it is realized or is virtually certain to be realized.
4. VAS has more specific requirements for the recognition of deferred tax assets, while IFRS has more general requirements.
5. VAS requires more detailed information to be disclosed in the notes to the financial statements, compared to IFRS.
6. VAS has specific requirements for the recognition of revenue from construction contracts, while IFRS has more general requirements.
7. VAS requires specific accounting treatment for different types of inventory, while IFRS provides a more general approach.
8. VAS requires specific accounting treatment for different types of investments, while IFRS provides a more general approach.
9. VAS requires specific accounting treatment for foreign currency transactions, while IFRS provides a more general approach.
10. VAS requires specific accounting treatment for government grants, while IFRS provides a more general approach.
11. VAS requires specific accounting treatment for employee benefits, while IFRS provides a more general approach.
12. VAS requires specific accounting treatment for impairment of assets, while IFRS provides a more general approach.
13. VAS requires specific accounting treatment for share-based payments, while IFRS provides a more general approach.
14. VAS requires specific accounting treatment for leases, while IFRS provides a more general approach.
15. VAS requires specific accounting treatment for tax, while IFRS provides a more general approach.
16. VAS requires specific accounting treatment for financial instruments, while IFRS provides a more general approach.
17. VAS requires specific accounting treatment for business combinations, while IFRS provides a more general approach.
18. VAS requires specific accounting treatment for consolidation, while IFRS provides a more general approach.
19. VAS requires specific accounting treatment for events after the balance sheet date, while IFRS provides a more general approach.
20. VAS requires specific accounting treatment for segment reporting, while IFRS provides a more general approach.

In conclusion, businesses in Vietnam should be aware of the differences between VAS and IFRS and choose the accounting standard that best suits their needs. It is recommended to seek professional advice from experienced accountants or law firms to ensure compliance and avoid long-term risks.

Contact PCA Company Services today. We will help you info@pcacompanyservices.com