Conference in Hanoi hears that Finance Ministry plans to fully introduce International Financial Reporting Standards next year.
Vietnam is expected to apply International Financial Reporting Standards (IFRS) in 2017, Dr. Dang Thai Hung, Director of the Accounting and Auditing Regulation Department at the Ministry of Finance (MoF), told a workshop, organized by Deloitte Vietnam and MoF in Hanoi on March 8 discussing the experience of developing countries in implementing the standards.
“Vietnam’s ‘Strategy on Accounting and Auditing Development to 2020 and Vision to 2030’ confirms the country’s determination to implement IFRS,” he said.
Given Vietnam’s specific conditions in terms of a changing market economy, the application of IFRS requires an appropriate roadmap in order to gradually reach full adoption and requires assistance and advice from the International Accounting Standard Board (IASB) and experts from professional international organizations, Dr. Hung emphasized.
Mr. Hans Hoogervorst, IASB Chairman, told the gathering that Vietnam should fully apply IFRS as its economy has seen much success in attracting foreign investors.
He pointed out that investors often expect consistent application of financial and accounting systems. “Investors expect financial and accounting systems in their invested countries and their countries to be the same,” he said. He explained that consistent systems among countries simplify financial and accounting activities for companies, especially multinational corporations.
Some 116 of the 140 economies surveyed by IASB require the application of IFRS, so Vietnam should apply a truly international IFRS, not a local equivalent, Mr. Hoogervorst said.
He acknowledged that IFRS needs certain improvements to adapt to economic changes around the world. Language is a major obstacle for non-speaking English countries in applying the standards, he added.