APPROVAL OF THE SCHEME ON APPLICATION OF FINANCIAL REPORTING STANDARDS IN VIETNAM
On March 16, 2020, the Minister of Finance issues the Decision No. 345/QD-BTC on approval of the Scheme on application of financial reporting standards in Vietnam.
Accordingly, specific objectives applied to financial reporting standards in Vietnam consist of 02 contents as follows: To develop measures, roadmap and publicize, provide assistance on application of international financial reporting standards (IFRS) in Vietnam; To issue anew and organize the implementation of Vietnamese financial reporting standards (VFRS).
To be specific, in the preparation phase (2020-2021), by December, 2020, to establish the Boards of translation, examination and completion the IFRS transcript into Vietnamese. By November 15, 2020, the Ministry of Finance shall develop, issue or request competent authorities to issue appropriate legislative documents to publicize the Vietnamese translation.
Next, in voluntary application phase, foreign-invested enterprise with 100% foreign direct invest capital which are subsidiaries of parent companies located overseas having demand of and sufficient resource shall inform the Ministry of Finance before voluntarily apply IFRS to prepare separate financial statements...
Finally, in compulsory application phase (after 2025), enterprise subjected to the application of IFRS must simultaneously apply all effective IFRS according to the international accounting standards board (IASB) at the same time. Enterprises shall voluntarily or compulsorily apply IFRS consistently throughout the financial year.
This Decision takes effect from the signing date.
