One of the most significant regulatory changes in many years in Vietnam (and globally) is the adoption of IFRS (International Financial Reporting Standards) / GAAP (General Accepted Accounting Principles), which, many believe, will directly affect the overall competitive position. Clearly, the driving force for the change is to allow investors better compare the financial performance of organizations operating in various parts of the world (hence, support more liquid capital markets that make economic growth easier) by creating a consistent international approach to financial accounting. And, if done right, the adoption of IFRS/GAAP can reduce capital and credit cost, help consolidate reporting for multi-national organizations while also streamlining their financial management processes, improve an international enterprise’s ability to finance operations locally, and, of course, enable a company to attract the interest of investors and enhance its image among its key stakeholders (for private-held organizations).
Although the above, the Vietnam Government still requests international companies conducting IFRS/GAAP to generate and file the accounting books under VAS. In this case, there are two ways to maintain your accounting books and ensure compliance in Vietnam (1) Keep the same foreign accounting system as the parent company and have an outsourcing service work on statutory compliance, and gap analysis at the end of every fiscal year or (2) Keep both the parent company’s foreign accounting system and VAS, which will require you to invest in not only more headcount but also a local accounting software so you can maintain both accounting systems on a daily basis. Whichever option you choose, just make sure the person or agency that will handle your accounting requirements, including IFRS/GAAP and VAS conversion (both ways) has in-depth knowledge of, at least, the primary differences between the two accounting systems.
VNC Consulting Ltd have experts in VAS Data Conversion service
With this assignment, VNC will:
- Vietnamese Accounting Standards (VAS) Data conversion and Reconciliation.
- Storing the accounting books in both soft copies and hard copies printed out by VNC, on behalf of the Company.
- Work with the Company to support the tax audit from Government when required.