Circular 118/2026/TT-BTC guiding application of International Accounting Standards in Vietnam

CIRCULAR

Guiding the subjects, scope and modes of application of International Accounting Standards in Vietnam

Pursuant to the Accounting Law No. 88/2015/QH13, amended and supplemented under Law No. 56/2024/QH15;

Pursuant to the National Assembly’s Resolution No. 222/2025/QH15 dated June 27, 2025, on the International Financial Center in Vietnam;

Pursuant to the Government’s Decree No. 324/2025/ND-CP dated December 18, 2025, on financial policies applicable in the International Financial Center in Vietnam;

Pursuant to the Government’s Decree No. 29/2025/ND-CP dated February 24, 2025, defining the functions, tasks, powers and organisational structure of the Ministry of Finance, amended and supplemented under Decree No. 166/2025/ND-CP;

At the proposal of the Director of the Department of Accounting and Audit Management and Supervision;

The Minister of Finance hereby promulgates the Circular guiding the subjects, scope and modes of application of International Accounting Standards in Vietnam.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides guidance on the subjects, scope and modes of application of International Accounting Standards specified in Clause 5, Article 3 of the Government’s Decree No. 324/2025/ND-CP dated December 18, 2025, on financial policies applicable in the International Financial Center in Vietnam, for preparation and presentation of financial statements and consolidated financial statements. Tax obligations of enterprises and economic organisations shall be determined in accordance with the tax law.

Article 2. Subjects of application

Enterprises and economic organisations that are members of the International Financial Center in Vietnam, and are subject to the National Assembly’s Resolution No. 222/2025/QH15 dated June 27, 2025, on the International Financial Center in Vietnam, and its guiding, amending, supplementing or replacing documents, may select to apply International Accounting Standards in preparing and presenting their financial statements and consolidated financial statements, provided that they have the need, capacity and resources to do so.

Chapter II

SPECIFIC PROVISIONS

Article 3. Modes of application of International Accounting Standards

Enterprises and economic organisations selecting to apply International Accounting Standards shall adhere to the following principles:

1. International Accounting Standards in force shall be applied in their original form and without modification.

2. Enterprises and economic organisations preparing financial statements and consolidated financial statements in accordance with International Accounting Standards shall apply those Standards consistently throughout the financial year. The commencement or cessation of the application of International Accounting Standards may take effect only on the first day of the subsequent annual accounting period. 

3. Financial statements and consolidated financial statements shall be prepared and presented in a manner that ensures the full, timely, faithful and transparent presentation of information and facilitates examination and control.

Article 4. Recipients, reporting periods and deadlines for submission of financial statements and consolidated financial statements

1. Enterprises and economic organisations shall prepare and submit financial statements and consolidated financial statements to the Executive Body, Supervisory Body and competent agencies of Vietnam.

2. Reporting periods and deadlines for submission of financial statements and consolidated financial statements shall comply with the accounting law of Vietnam.

3. Financial statements and consolidated financial statements prepared in accordance with International Accounting Standards shall be sent to functional agencies and publicized as prescribed by law.

Chapter III

IMPLEMENTATION PROVISIONS

Article 5. Responsibilities of enterprises and organisations selecting to apply International Accounting Standards

1. To take legal responsibility for their choice to apply International Accounting Standards in preparing and presenting financial statements and consolidated financial statements.

2. To provide sufficient information and clear and transparent explanations to tax offices, administration and supervision agencies when applying International Accounting Standards.

3. To declare on their compliance with International Accounting Standards in in the Notes to the financial statements and consolidated financial statements when applying International Accounting Standards.

4. To notify the Ministry of Finance in writing at least 30 days before commencing or ceasing to apply International Accounting Standards.

Article 6. Transitional provisions

1. Enterprises and economic organisations may change their applied accounting regimes or accounting standard systems into International Accounting Standards, provided that they present comparative information and provide sufficient explanations on their financial statements in accordance with the International Financial Reporting Standards (IFRS) 1 - First-time Adoption of International Financial Reporting Standards

2. Enterprises and economic organisations applying International Accounting Standards under the National Assembly’s Resolution No. 222/2025/QH15 dated June 27, 2025, on the International Financial Center in Vietnam, shall continue to comply with this Circular.

Article 7. Implementation organisation

1. This Circular takes effect from January 01, 2027, and applies to the financial year beginning on or after January 01, 2027.

2. The Ministry of Finance (the Department of Accounting and Audit Management and Supervision) shall regularly update and publicize on its portal the List of enterprises and economic organisations applying International Accounting Standards; and shall, within 15 days from the receipt of written notice on the enterprises’ and economic organisations’ commencement or cessation of the application of International Accounting Standards, update such publicly posted List.

3. The Director of the Department of Accounting and Audit Management and Supervision, owners or at-law representatives of enterprises and economic organisations and heads of relevant units shall implement, provide guidance, conduct inspection and supervision of the implementation of this Circular.

4. Any difficulties arising in the course of implementation of this Circular should be promptly reported to the Ministry of Finance for study and settlement./.