INTRODUCING THE DIFFERENCES BETWEEN IFRS AND VAS

International Financial Reporting Standards (IFRS) are global accounting standards which were passed and managed by the International Accounting Standard Board (IASB), regulating the way financial reports should be prepared and presented. Based on IFRS, Vietnam has developed Vietnamese Accounting Standards (VAS). However, there are unavoidably some notable differences between the two.

Specifically, the government of Vietnam has issued 26 VAS on IFRS’s basis. After that, the Ministry of Finance issued Circulars, No. 200/2014/TT-BTC and No. 202/2014/TT-BTC with the aim to reinforce the financial statements’ transparency and comparability. By applying general international standards, Vietnam system of accounting are brought closer to the global system.

As suggested by specialists from S4B Vietnam, the accounting and financial department at company should pay attention to key differences between VAS and IFRS. Three critical elements include presentation scope, terminology and applied methods.

Vietnamese Accounting Standards (VAS) include basic accounting guides, requirements and principles in order to run the business in the country. Elements of the company’s financial statements including balance sheet, cash flow and income statement are clearly prescribed in VAS.

Under Vietnam law, both local and foreign firms operating in Vietnam are bound to comply with VAS. Therefore, it is required that foreign investors have insights and knowledge of VAS’s fundamental characteristics in order to make correct investment decision while maintaining compliance requirements.

Fully understand investors’ needs, S4B Vietnam provides accounting and tax compliance service to organizations which invest and trade with Vietnam. We actively help your business to establish legal online and offline presence in the country, guiding your team through up-to-date issues in tax, accounting, HR and legal. We also offer free consultation before signing the contract.

With the comprehension of VAS, your accounting personnel can:

– Have an understanding of Vietnamese accounting and auditing standards system

– Correct preparation of organizational financial statements

– Studying national requirements in accounting to adapt to the working environment

– Differentiating the differences between local and global accounting standards

– Eliminating the risks of misunderstanding and uncertainty of local framework

Outsourcing your accounting and financial tasks to S4B Vietnam will help you to achieve all the advantages listed above. With superior expertise and varied experiences in consulting, S4B Vietnam is confident to provide business owners with a variety of services regarding finance, accounting, auditing, taxation with high efficiency and recorded success. Our team of professionals continuously update with the latest changes in order to provide quality, timely and trustworthy performance.

With rich history of working with a wide range of clients across Vietnam including FDI organizations, SME companies, international and Vietnamese owned companies, S4B Vietnam have deep knowledge about common issues of business operation in Vietnam. As a result, we are quick and effective in providing necessary solutions to resolve them.  S4B Vietnam will definitely be your valuable business associate, providing you the best services compared to other consulting firms.

Our ultimate goal is to add value to your business. Therefore, we are continuously striving to provide specialized service and credible information which will significantly benefit our clients to achieve wiser financial management decision.