What accounting standard does Vietnam use?
Table of Contents
What accounting standard does Vietnam use?
IFRS
Vietnam uses IFRS as a basis for its own system, the Vietnamese Accounting Standards (VAS), yet there are key differences between the two.
Is Vietnam an IFRS?
No. Vietnam has not adopted IFRS Standards. National standards are required.
When did Vietnam adopt IFRS?
According to the implementation scheme, IFRS reporting will begin on a voluntary basis from 2022, with mandatory application after 2025.
What is VAS in Vietnam?
Vietnamese Accounting Standards (VAS) The VAS provides the guidelines for bookkeeping, financial reporting, and financial statement preparations. There are industry-specific accounting guidelines for businesses engaging in insurance, securities, as well as funds management.
What is the difference between IFRS and VAS?
IFRS uses the fair value in most cases, there are a lot of guidelines involved. VAS is currently leaning towards using the Historical cost instead. * Business can separate the Profit and Loss Statement and Other comprehensive income statement.
What is the difference in the operating activities according to VAS and IFRS?
Under IFRS, interest paid and dividends received must be classified as operating cash flows. Dividends must be classified as financing cash flows. By contrast, VAS allows companies more flexibility in how they treat dividends, interest, and overdrafts.
How do you convert GAAP to IFRS financial statements?
Converting between US GAAP and IFRS involves a number of steps, including:
- Conversion approach.
- Accounting policy.
- Data gaps.
- Conversion adjustments.
- GAAP reconciliation.
- System and process changes.
- Financial reporting.
- Conversion audit.
What is the major difference between GAAP and IFRS?
The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. This disconnect manifests itself in specific details and interpretations. Basically, IFRS guidelines provide much less overall detail than GAAP.
What are the six Golden Rule of accounting?
Golden rules of accounting
| Type of Account | Golden Rule |
|---|---|
| Personal Account | Debit the receiver, Credit the giver |
| Real Account | Debit what comes in, Credit what goes out |
| Nominal Account | Debit all expenses and losses, Credit all incomes and gains |
