A Comprehensive Comparison Between VAS and IFRS
- Nhung Nguyen
- Aug 19
- 15 min read
A Comprehensive Comparison Between VAS and IFRS
Introduction
Vietnamese Accounting Standards (VAS) and International Financial Reporting Standards (IFRS) are two important accounting frameworks used to prepare and present financial statements. VAS was developed specifically for the Vietnamese business environment, while IFRS is an internationally recognized framework designed to improve consistency, transparency and comparability across countries.
Vietnam currently has 26 Vietnamese Accounting Standards (VAS), originally issued mainly between 2001 and 2005. These standards were developed largely from the international accounting standards that existed at the time, but Vietnam did not adopt the entire IFRS framework. Since then, IFRS has continued to evolve significantly, creating an increasing gap between VAS and modern IFRS requirements.
The comparison has become particularly important because Vietnam's accounting framework is moving closer to IFRS. Circular 99/2025/TT-BTC, which replaces Circular 200/2014/TT-BTC for general enterprise accounting guidance, introduces a number of changes that bring Vietnamese accounting practices closer to IFRS, including changes in financial statement presentation, revenue recognition, fair value, financial instruments and accounting-system design.
This article provides a comprehensive overview of the major differences between VAS and IFRS and explains what those differences mean for Vietnamese companies preparing for IFRS adoption or conversion.
1. What Is VAS?
Vietnamese Accounting Standards (VAS) are accounting standards issued by Vietnam's Ministry of Finance.
The 26 VAS standards were primarily issued during the period from 2001 to 2005. They were influenced by IAS and IFRS concepts available at that time, but they were adapted to Vietnam's legal, economic and regulatory environment.
VAS operates together with detailed accounting regulations and implementation guidance issued by the Ministry of Finance.
Historically, Vietnamese companies have therefore operated within a framework that combines:
Vietnamese Accounting Standards;
Accounting regulations issued by the Ministry of Finance;
Circulars providing detailed accounting guidance;
Vietnam's chart of accounts;
Tax and statutory reporting requirements.
The result is a relatively structured accounting environment in which companies have historically relied heavily on prescribed accounting treatments and formats.
2. What Is IFRS?
International Financial Reporting Standards (IFRS) are accounting standards developed by the International Accounting Standards Board (IASB) under the IFRS Foundation.
The IFRS framework currently includes a broad collection of standards covering areas such as:
Presentation of financial statements;
Revenue;
Leases;
Financial instruments;
Business combinations;
Consolidation;
Fair value;
Employee benefits;
Income taxes;
Property, plant and equipment;
Intangible assets;
Provisions;
Agriculture;
Insurance contracts;
Share-based payments.
The IFRS Foundation maintains an extensive library of current standards and related materials.
Unlike a framework designed primarily around a single country's statutory requirements, IFRS is intended to provide a common financial reporting language that can be used across international markets.
3. VAS vs IFRS: High-Level Comparison
Area | VAS | IFRS |
Primary purpose | Vietnamese statutory financial reporting | General-purpose international financial reporting |
Geographic focus | Vietnam | International |
Number and scope of standards | 26 VAS standards | Broad IFRS/IAS framework |
Development history | Mainly issued 2001–2005 | Continuously updated |
Approach | Historically more prescriptive | More principles-based |
Professional judgement | Generally narrower | More significant |
Fair value | More limited historically, expanding under newer rules | Extensive application |
Financial instruments | Less comprehensive historically | IFRS 9 provides comprehensive requirements |
Revenue | Historically based more on transfer of risks/rewards | IFRS 15 five-step model |
Leases | Historically more limited | IFRS 16 generally recognizes lessee right-of-use assets and lease liabilities |
Business combinations | More limited | IFRS 3 provides detailed acquisition accounting |
Consolidation | Less comprehensive historically | IFRS 10 control-based model |
Impairment | Generally less sophisticated | IAS 36 and IFRS 9 contain extensive requirements |
Deferred tax | Less comprehensive historically | IAS 12 comprehensive framework |
Share-based payment | Limited compared with IFRS | IFRS 2 |
Biological assets | More limited historically | IAS 41 |
Fair value framework | Less extensive historically | IFRS 13 |
Presentation | Historically prescribed | Greater focus on economic substance and disclosure |
Disclosure | Generally less extensive | Extensive disclosures |
Global comparability | Limited | High |
4. Rules-Based vs Principles-Based Accounting
One of the most important differences between traditional VAS accounting and IFRS is the degree of professional judgement involved.
VAS
Traditional Vietnamese accounting has generally been more prescriptive. Companies often follow detailed guidance concerning:
Account classifications;
Journal entries;
Chart of accounts;
Financial statement formats;
Recognition and measurement requirements.
This approach provides consistency and can make statutory reporting easier to administer.
IFRS
IFRS is generally more principles-based.
Instead of prescribing an accounting entry for every possible transaction, IFRS frequently requires management to determine the economic substance of a transaction and apply the relevant principles.
For example, IFRS may require management to assess:
Whether an entity controls another entity;
Whether a contract contains a lease;
Whether a customer contract contains multiple performance obligations;
Whether an asset is impaired;
Whether a financial instrument should be measured at amortized cost or fair value;
Whether an acquisition represents a business combination.
Therefore, IFRS normally requires significantly greater professional judgement.
5. Financial Statement Presentation
Financial statement presentation is another important area of difference.
IAS 1 establishes requirements for the structure and minimum content of financial statements, including the statement of financial position, statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows and notes.
Under traditional VAS reporting, financial statements have been more closely linked to prescribed Vietnamese accounting formats.
Recent Vietnamese reforms, particularly Circular 99/2025/TT-BTC, move Vietnamese reporting closer to IFRS-style presentation and terminology.
However, IFRS still provides greater flexibility and places significant emphasis on the information necessary for users to understand an entity's financial position and performance.
6. Revenue Recognition
Revenue recognition is one of the most significant differences between traditional VAS accounting and IFRS.
VAS
Historically, VAS revenue recognition has placed significant emphasis on the transfer of risks and rewards and other specific recognition conditions.
IFRS
IFRS 15 uses a comprehensive five-step revenue recognition model:
Identify the contract with a customer.
Identify the performance obligations.
Determine the transaction price.
Allocate the transaction price to the performance obligations.
Recognize revenue when or as a performance obligation is satisfied.
The model is particularly important for:
Software companies;
Construction businesses;
Telecommunications companies;
Subscription businesses;
Technology companies;
Companies selling bundled products and services;
Long-term contracts.
The shift toward performance obligations means that revenue timing under IFRS can differ materially from traditional VAS accounting.
Recent Vietnamese accounting reforms have moved revenue recognition closer to this IFRS 15 approach.
7. Leases
Lease accounting represents another major difference.
Under modern IFRS, IFRS 16 requires most leases from a lessee's perspective to be recognized on the balance sheet through:
A right-of-use asset; and
A lease liability.
This fundamentally changes how companies account for operating leases.
For example, suppose a company enters into a five-year office lease.
Under a traditional operating-lease approach, the company might simply recognize rental expense periodically.
Under IFRS 16, the company generally recognizes:
At commencement:
Dr Right-of-use assetCr Lease liability
The lease liability is subsequently measured using interest and principal payments, while the right-of-use asset is depreciated.
This can significantly increase:
Total assets;
Total liabilities;
EBITDA;
Depreciation expense;
Interest expense.
IFRS 16 is therefore particularly important for companies with significant property, equipment, vehicle or retail leases.
8. Financial Instruments
Financial instruments are one of the areas where the difference between VAS and IFRS can be particularly significant.
IFRS 9 provides comprehensive requirements for:
Classification;
Measurement;
Amortized cost;
Fair value through profit or loss;
Fair value through other comprehensive income;
Impairment;
Expected credit losses;
Hedge accounting.
The Expected Credit Loss (ECL) model is particularly important.
Instead of waiting for a credit loss to become clearly evident, IFRS 9 generally requires entities to recognize expected credit losses based on forward-looking information.
This is particularly important for:
Banks;
Financial institutions;
Trade receivables;
Loans;
Debt investments;
Intercompany financing.
IFRS therefore generally requires much more sophisticated financial-instrument modelling than traditional VAS accounting.
9. Fair Value Measurement
Fair value is another major area of difference.
IFRS 13 establishes a comprehensive framework for fair value measurement.
Fair value is generally based on an exit price concept: the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
IFRS also establishes a fair value hierarchy:
Level 1
Quoted prices in active markets for identical assets or liabilities.
Level 2
Observable inputs other than Level 1 quoted prices.
Level 3
Unobservable inputs.
Level 3 valuations frequently require significant management judgement and valuation techniques.
Historically, VAS has relied more heavily on historical cost, although recent Vietnamese reforms have significantly expanded fair-value-related requirements and moved the framework closer to IFRS.
10. Property, Plant and Equipment
IAS 16 requires entities to recognize and measure property, plant and equipment based on specified recognition and measurement principles.
One important IFRS concept is component accounting.
Suppose an aircraft has:
Airframe;
Engines;
Major inspection components.
If different components have significantly different useful lives, IFRS may require significant components to be depreciated separately.
For example:
Component | Cost | Useful life |
Building structure | $8m | 40 years |
HVAC system | $1m | 15 years |
Interior | $1m | 10 years |
Under component accounting, each significant component can be depreciated according to its own useful life.
This can produce different depreciation expense and asset carrying values compared with a single useful-life approach.
11. Impairment of Assets
IFRS has detailed impairment requirements under IAS 36.
An entity must consider whether there are indicators that an asset may be impaired.
For certain assets, recoverable amount is determined using:
Recoverable amount = Higher of
Fair value less costs of disposal; and
Value in use.
If the carrying amount exceeds recoverable amount, an impairment loss may need to be recognized.
This is particularly important for:
Goodwill;
Property;
Manufacturing facilities;
Investments;
Cash-generating units;
Intangible assets.
Compared with traditional VAS accounting, IFRS impairment accounting generally requires more modelling, forecasting and management judgement.
12. Goodwill and Business Combinations
IFRS 3 provides detailed requirements for accounting for business combinations.
Under IFRS acquisition accounting, the acquirer generally:
Identifies the acquirer;
Determines the acquisition date;
Identifies assets acquired and liabilities assumed;
Measures identifiable assets and liabilities at appropriate values;
Recognizes non-controlling interests;
Calculates goodwill or bargain purchase gain.
Goodwill is generally not amortized under IFRS.
Instead, it is subject to impairment testing under IAS 36.
This can be very different from accounting approaches that rely more heavily on historical cost or amortization.
13. Intangible Assets
IFRS distinguishes between different types of intangible assets and applies specific recognition requirements.
Examples include:
Patents;
Copyrights;
Software;
Licences;
Customer relationships;
Development costs.
A particularly important difference concerns research and development expenditure.
IFRS distinguishes between:
Research phase; and
Development phase.
Certain development expenditures can qualify for capitalization when specified criteria are satisfied.
This can produce significant differences in reported assets and profit compared with a more conservative expense-based approach.
14. Deferred Tax
Deferred tax is another area that can create substantial differences between VAS and IFRS financial statements.
IAS 12 is based largely on the temporary difference approach.
A temporary difference occurs when the carrying amount of an asset or liability differs from its tax base.
For example:
Accounting carrying amount: $1,000,000Tax base: $700,000Temporary difference: $300,000
If the applicable tax rate is 20%, the potential deferred tax amount could be:
$300,000 × 20% = $60,000
Deferred tax accounting can significantly affect:
Profit;
Equity;
Total assets;
Total liabilities;
Effective tax rate.
This area is especially important when converting financial statements from VAS to IFRS.
15. Employee Benefits
IFRS includes detailed requirements under IAS 19 for employee benefits.
These include:
Short-term employee benefits;
Post-employment benefits;
Defined contribution plans;
Defined benefit plans;
Other long-term employee benefits;
Termination benefits.
For defined benefit plans, IFRS requires actuarial calculations and recognition of the net defined benefit liability or asset.
This can introduce significant differences compared with simpler local accounting treatments.
16. Share-Based Payments
IFRS 2 requires entities to recognize share-based payment transactions.
Examples include:
Employee stock options;
Restricted shares;
Performance shares;
Equity-settled awards;
Cash-settled share-based payments.
For example, if a company grants employees stock options as compensation, IFRS generally requires the company to recognize compensation expense based on the appropriate fair value measurement and vesting conditions.
This is particularly important for:
Startups;
Technology companies;
Listed companies;
Multinational groups;
Companies using ESOP programs.
Traditional VAS accounting has historically had much less comprehensive guidance in this area.
17. Biological Assets
IFRS includes IAS 41 Agriculture, which addresses:
Biological assets;
Agricultural produce;
Certain government grants.
Biological assets can be measured using fair value less costs to sell when specified conditions are met.
This is particularly relevant to:
Agriculture;
Forestry;
Livestock;
Plantations;
Aquaculture.
Recent Vietnamese accounting reforms have also introduced or expanded accounting guidance relating to biological assets, narrowing some of the historical differences with IFRS.
18. Consolidated Financial Statements
IFRS 10 uses a control-based model for determining whether an entity should consolidate another entity.
The analysis focuses on whether the investor has:
Power over the investee;
Exposure, or rights, to variable returns;
The ability to use power to affect those returns.
This means that consolidation is not determined simply by looking at a fixed ownership percentage.
For example, an entity may potentially control another entity even when it owns less than 50% of voting rights, depending on the facts and circumstances.
This requires substantial judgement in complex group structures.
19. Foreign Currency
Foreign currency accounting is addressed under IAS 21.
IFRS requires entities to determine their functional currency based on the economic environment in which the entity primarily operates.
This concept is important for multinational companies because the functional currency may differ from:
The legal entity's currency;
The currency used for statutory reporting;
The currency in which invoices are issued.
Vietnamese entities belonging to international groups may therefore need detailed analysis of functional currency when preparing IFRS financial statements.
20. Provisions and Contingent Liabilities
IAS 37 provides a comprehensive framework for:
Provisions;
Contingent liabilities;
Contingent assets.
A provision is generally recognized when:
There is a present obligation arising from a past event;
An outflow of economic resources is probable;
A reliable estimate can be made.
Examples include:
Litigation;
Warranty obligations;
Restructuring;
Environmental obligations;
Decommissioning.
IFRS requires careful assessment of uncertainty, probability and measurement.
21. Cash Flow Statements
IAS 7 governs the statement of cash flows.
Cash flows are generally classified into:
Operating activities;
Investing activities;
Financing activities.
IFRS also contains detailed requirements concerning presentation and disclosure of cash flows.
Recent changes to the IFRS presentation and disclosure framework also continue to evolve, making it important for companies converting to IFRS to work with the standards applicable to their reporting period rather than relying on older comparison tables.
22. Disclosure Requirements
One of the most visible differences between VAS and IFRS is the amount and sophistication of financial statement disclosure.
IFRS disclosures can cover:
Significant accounting judgements;
Estimation uncertainty;
Financial instrument risks;
Credit risk;
Liquidity risk;
Market risk;
Fair value;
Lease commitments;
Revenue disaggregation;
Contract balances;
Related parties;
Business combinations;
Segment information;
Deferred tax;
Employee benefits.
Therefore, IFRS conversion is not simply a matter of changing accounting entries.
It is also a financial reporting and data architecture project.
23. Why VAS-to-IFRS Conversion Can Be Difficult
A company converting from VAS to IFRS may need to address differences in several dimensions simultaneously.
Accounting policies
The company needs to identify where VAS policies differ from IFRS.
Chart of accounts
The existing VAS chart of accounts may not contain sufficient granularity for IFRS reporting.
Data
IFRS may require information that was never captured under VAS.
Valuation
Fair value, impairment, leases and financial instruments may require external valuation or sophisticated internal models.
Systems
ERP systems may need additional dimensions, subledgers and reporting structures.
People
Finance teams need training in IFRS principles and professional judgement.
Controls
New accounting estimates require additional review and controls.
Tax
IFRS accounting profit may differ from taxable profit, requiring reconciliation and tax adjustments.
24. The VAS-to-IFRS Conversion Bridge
A useful way to understand the conversion process is to think of it as a bridge:
VAS Financial Statements
↓
Identify VAS–IFRS Differences
↓
IFRS Adjusting Entries
↓
IFRS Measurement Models
↓
IFRS Disclosures
↓
IFRS Financial Statements
For example:
Area | Typical IFRS Conversion Adjustment |
Revenue | Reassess performance obligations and timing |
Leases | Recognize ROU assets and lease liabilities |
Financial instruments | Apply IFRS 9 classification and ECL |
PPE | Review components and useful lives |
Impairment | Perform IAS 36 testing |
Deferred tax | Recalculate temporary differences |
Goodwill | Perform acquisition accounting and impairment testing |
Intangibles | Reassess recognition and measurement |
Employee benefits | Perform actuarial calculations where applicable |
Fair value | Introduce valuation models |
Consolidation | Reassess control |
Disclosures | Build IFRS disclosure schedules |
25. Impact on the Three Financial Statements
The conversion from VAS to IFRS can affect all three primary financial statements.
Balance Sheet / Statement of Financial Position
Potential changes include:
Higher lease liabilities;
Recognition of right-of-use assets;
Different financial instrument valuations;
Additional deferred tax;
Goodwill adjustments;
Impairment adjustments;
Fair value adjustments;
Reclassification of assets and liabilities.
Income Statement
Potential changes include:
Different revenue timing;
Depreciation changes;
Lease depreciation and interest;
Expected credit losses;
Impairment losses;
Fair value gains and losses;
Share-based payment expense;
Deferred tax expense.
Cash Flow Statement
The underlying cash flows may not change, but their classification and presentation can differ because of IFRS accounting policies.
26. Impact on Key Financial Ratios
IFRS conversion can materially change financial ratios even when the underlying business has not changed.
Debt-to-equity ratio
Recognition of lease liabilities can increase reported debt.
EBITDA
IFRS 16 can replace part of rental expense with depreciation and interest, potentially increasing EBITDA.
Return on assets
Recognition of additional assets can reduce ROA.
Return on equity
Changes in profit and equity can affect ROE.
Gross margin
Changes in revenue recognition and cost classification can affect margins.
Current ratio
Reclassification and measurement of assets and liabilities can affect liquidity ratios.
Therefore, management and investors should avoid comparing VAS and IFRS ratios without understanding the accounting adjustments.
27. Circular 99/2025/TT-BTC and the Convergence Toward IFRS
An important development in Vietnam is Circular 99/2025/TT-BTC.
The new framework replaces Circular 200 and represents a significant modernization of Vietnam's accounting system.
According to recent professional analysis, Circular 99 introduces several changes that bring Vietnamese accounting closer to IFRS, including:
Greater use of fair value;
Financial instrument guidance;
Revenue recognition aligned more closely with IFRS 15;
Expanded guidance on biological assets;
Deferred income tax developments;
Financial statement presentation changes;
Greater flexibility for companies to design accounting systems;
A stronger emphasis on transactions and professional judgement.
However, Circular 99 should not be interpreted as making VAS equivalent to IFRS.
Significant differences remain.
Vietnam has not adopted IFRS as its general statutory accounting framework, and the IFRS Foundation currently describes Vietnam as a jurisdiction that has not adopted IFRS Standards or IFRS for SMEs.
Therefore, companies should distinguish between:
VAS under Vietnam's statutory framework
and
full IFRS financial reporting.
28. Which Companies Should Consider IFRS?
IFRS can be particularly valuable for companies that:
Have foreign investors;
Are subsidiaries of multinational groups;
Seek international financing;
Plan an IPO;
Have international shareholders;
Operate in multiple countries;
Need international comparability;
Have complex financial instruments;
Have significant leases;
Conduct acquisitions;
Operate technology or subscription businesses;
Expect to raise capital internationally.
For these companies, IFRS can become more than a compliance requirement—it can become a strategic financial reporting framework.
29. Benefits of IFRS Adoption
1. Better international comparability
Investors can compare Vietnamese companies with companies in other markets using a common framework.
2. Greater transparency
IFRS generally requires extensive disclosure of risks, assumptions and accounting judgements.
3. Improved access to international capital
International investors and lenders are generally more familiar with IFRS-based financial information.
4. Better support for M&A
IFRS can facilitate financial due diligence and international acquisition accounting.
5. Improved management information
The process of implementing IFRS can force companies to improve data quality, controls and financial systems.
6. Stronger corporate governance
IFRS requires management to document significant judgements, estimates and assumptions.
30. Challenges of IFRS Adoption
IFRS implementation also has significant costs.
Companies may need to invest in:
Training;
Accounting advisory;
Valuation;
ERP modifications;
Data collection;
Internal controls;
Financial reporting systems;
Tax reconciliation;
Consolidation systems;
IFRS disclosure processes.
The biggest challenge is often not understanding the standards themselves, but obtaining the data required to apply them consistently.
For example, IFRS 16 requires detailed lease information such as:
Commencement date;
Lease term;
Payment schedule;
Renewal options;
Discount rate;
Lease modifications.
If the company does not currently maintain this information, implementation becomes a data project as well as an accounting project.
31. A Practical Roadmap for VAS-to-IFRS Conversion
Companies considering IFRS conversion can use the following roadmap.
Step 1: Establish the IFRS project team
Include:
CFO;
Financial controller;
Accounting team;
Tax team;
IT;
Internal audit;
Legal;
Business representatives.
Step 2: Perform a gap assessment
Compare current VAS accounting policies with IFRS.
Step 3: Identify material differences
Prioritize areas such as:
Revenue;
Leases;
Financial instruments;
PPE;
Impairment;
Deferred tax;
Business combinations;
Consolidation.
Step 4: Perform opening balance sheet analysis
Determine the adjustments necessary to move from VAS to IFRS.
Step 5: Build accounting models
Develop models for:
Lease accounting;
ECL;
Fair value;
Impairment;
Revenue allocation;
Deferred tax.
Step 6: Modify ERP systems
Add appropriate:
Accounts;
Dimensions;
Subledgers;
Reporting codes;
IFRS adjustment layers.
Step 7: Develop IFRS reporting packages
Create:
Balance sheet reporting;
Income statement reporting;
Cash flow reporting;
Equity reporting;
Disclosure schedules.
Step 8: Train finance teams
Training should focus not only on technical rules but also on professional judgement.
Step 9: Run parallel reporting
For an appropriate transition period, companies can prepare:
VAS reporting + IFRS reporting
in parallel.
Step 10: Establish ongoing IFRS governance
IFRS is continuously evolving. Companies therefore need a process for monitoring new standards and amendments.
32. VAS vs IFRS: The Most Important Differences at a Glance
Topic | VAS | IFRS |
Accounting philosophy | More prescriptive historically | Principles-based |
Professional judgement | Lower historically | Higher |
Revenue | Traditional VAS approach, increasingly converging | IFRS 15 five-step model |
Leases | Historically more limited | IFRS 16 on-balance-sheet model for most lessee leases |
Financial instruments | Less comprehensive historically | IFRS 9 |
ECL | Less developed historically | Forward-looking expected credit loss model |
Fair value | Historically limited | Extensive framework under IFRS 13 |
PPE | More standardized | Component accounting and broader judgement |
Impairment | Less comprehensive historically | IAS 36 |
Goodwill | Different local treatment | No routine amortization; impairment testing |
Business combinations | Less comprehensive | IFRS 3 acquisition method |
Deferred tax | Less comprehensive historically | IAS 12 |
Share-based payments | Limited | IFRS 2 |
Biological assets | Limited historically | IAS 41 |
Consolidation | Local requirements | IFRS 10 control model |
Disclosures | Generally less extensive | Extensive |
International comparability | Lower | Higher |
Reporting flexibility | Historically lower | Higher |
Valuation requirements | Lower historically | Higher |
Data requirements | Lower | Significantly higher |
33. Final Thoughts
VAS and IFRS should not simply be viewed as two different sets of accounting rules. They represent different approaches to financial reporting.
VAS has been designed around Vietnam's statutory and regulatory environment and has historically provided a structured and relatively prescriptive framework for Vietnamese enterprises.
IFRS, in contrast, is an internationally oriented, principles-based framework that places greater emphasis on economic substance, fair value, professional judgement, transparency and extensive disclosure.
The gap between the two frameworks is narrowing as Vietnam modernizes its accounting regulations. Circular 99/2025/TT-BTC is an important step in that direction, introducing several IFRS-oriented concepts and reducing some historical differences.
Nevertheless, VAS and IFRS are not yet equivalent. Companies that need full IFRS financial statements must still perform a detailed gap assessment and address areas such as revenue, leases, financial instruments, impairment, deferred tax, consolidation, fair value, business combinations and disclosures.
For Vietnamese businesses, IFRS readiness should therefore be viewed as a broader transformation project involving accounting policies, people, processes, data, technology and internal controls.
The earlier a company begins this preparation, the easier it will be to identify accounting gaps, improve financial data quality, build appropriate systems and reduce the cost and risk of eventual IFRS conversion.
Key takeaway
VAS provides the foundation for statutory accounting in Vietnam, while IFRS provides a broader international financial reporting framework. The future direction of Vietnamese accounting is moving closer to IFRS, but companies should not assume that VAS and IFRS are interchangeable.
For companies preparing for international investment, M&A, group reporting or future IFRS adoption, the most effective approach is to establish a structured VAS-to-IFRS conversion framework that maps every material accounting difference from recognition through measurement, journal entries, financial statements and disclosures.
References
Internet
Comments