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 Japan International Cooperation Agency (JICA), the event also aimed to collect comments on the draft project on application of IFRS in Vietnam, thus rolling out orientation for the process in the country.

Vu Duc Chinh, Director of the Accounting and Auditing Policies Department (AAPD) under the Ministry of Finance, said in the strategy until 2020, Vietnam’s accounting and auditing sector will approach international practices.

Over the past 10 years, Vietnam issued 26 accounting standards, but they have exposed many shortcomings, requiring the Ministry of Finance to build a new standard system, he said.  

However, the application of IFRS should be suitable to Vietnam’s condition as the country has many stakeholders in the accounting system because of different types of businesses, Chinh noted.

The Ministry of Finance will gradually build a set of financial reporting standards and issue or recognise an international standard system.

It is necessary to develop a system of accounting standards similar to the system of 26 standards to apply to other subjects, and manuals on the principles of financial reporting, he said.

The application of IFRS means that the accounting and auditing system will have a common "language" for all businesses in all countries in the world, and this will be very beneficial when Vietnamese enterprises participate in the international capital market, Chinh noted.

Trinh Duc Vinh, Vice Director of AAPD, said the application of IFRS in Vietnam is to overcome the limitations of the Vietnamese Accounting Standards System (VAS), perfect the legal framework on accounting, and increase the transparency of financial information.

This also aims to promote the accountability of businesses, helping Vietnamese businesses access more capital sources and list on the international market, so that 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 of IFRS (or equivalent standards) in each country is different, stressing the need to make thorough plans before application.

Tran Anh Quan, Vice Director of KPMG Vietnam, noted that the application of IFRS is a great challenge to any countries, even developed ones.

Vietnam is a country with low starting point for economic development, so the application of IFRS is more difficult, he said.

Representatives from JICA said the application of IFRS is very important and the agency can provide financial and technical assistance for Vietnam as well as share Japan’s experience in the work.-VNA