At the workshop (Source: VNA) Hanoi (VNA) - Experience in applying International Financial Reporting Standards (IFRS) from Japan, the Republic of Korea(RoK), the US, Malaysia and China was shared at a workshop in Hanoi on May 28.
Jointly organised by the Ministry of Finance and the JapanInternational Cooperation Agency (JICA), the event also aimed to collect commentson the draft project on application of IFRS in Vietnam, thus rolling out orientationfor the process in the country.
Vu Duc Chinh, Director of the Accounting and Auditing Policies Department (AAPD) under the Ministry of Finance, said inthe strategy until 2020, Vietnam’s accounting and auditing sector will approachinternational practices.
Over the past 10 years, Vietnam issued 26 accountingstandards, but they have exposed many shortcomings, requiring the Ministry ofFinance to build a new standard system, he said.
However, the application of IFRS should be suitable to Vietnam’scondition as the country has many stakeholders in the accounting system becauseof different types of businesses, Chinh noted.
The Ministry of Finance will gradually build a set of financial reporting standards and issue or recognise aninternational standard system.
It is necessary to develop a system of accounting standards similar to the systemof 26 standards to apply to other subjects, and manuals on the principles offinancial reporting, he said.
The application of IFRS means that the accounting andauditing system will have a common "language" for all businesses inall countries in the world, and this will be very beneficial when Vietnameseenterprises participate in the international capital market, Chinh noted.
Trinh Duc Vinh, Vice Director of AAPD, said the application of IFRS in Vietnam isto overcome the limitations of the Vietnamese Accounting Standards System (VAS),perfect the legal framework on accounting, and increase the transparency offinancial information.
This also aims to promote the accountability of businesses, helping Vietnamesebusinesses access more capital sources and list on the international market, sothat Vietnam is internationally recognised as a full market economy, he added.
Sekiguchi Tomokazu from KPMG Vietnam - the provider of audit services said the roadmap for the application ofIFRS (or equivalent standards) in each country is different, stressing the needto make thorough plans before application.
Tran Anh Quan, Vice Director of KPMG Vietnam, noted that the application ofIFRS is a great challenge to any countries, even developed ones.
Vietnam is a country with low starting point for economicdevelopment, so the application of IFRS is more difficult, he said.
Representatives from JICA said the application of IFRS is very important andthe agency can provide financial and technical assistance for Vietnam as wellas share Japan’s experience in the work.-VNA
VNA
