Decision No. 345/QD-BTC 2020 Scheme on application of financial reporting standards

DECISION

On approval of the Scheme on application of financial reporting standards in Vietnam

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THE MINISTER OF FINANCE

Pursuant to the Law on Accounting dated November 20, 2015;

Pursuant to the Decree No. 87/2017/ND-CP dated July 26, 2017 of the Government on defining functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the request of the Director of the Department of Accounting and Auditing Regulations,

DECIDES:

Article 1. To approve “ The Scheme on application of financial reporting standards in Vietnam” attached to this Decision the following major contents:

I OBJECTIVES OF THE SCHEME

1. General objectives

To complete financial and accounting legal framework; to create an effective and valid management tool for governance and administration in enterprise as well as management and supervision of state competent authority in the new stage, contribute in successfully implement national socio-economic development goals.

To participate in improvement of the transparency, efficiency of financial information and accountability of the enterprise, to protect business environment and legal benefits of investor, contribute in integration of Vietnam economy with regional and international economy.

2. Specific objectives:

Specific objectives applied to financial reporting standards in Vietnam consist of 02 contents as follow:

(1) To develop measures, roadmap and publicize, provide assistance on application of international financial reporting standards (IFRS) in Vietnam for each defined group of subject in accordance with international practice so that participate in improvement of the transparency, truthfulness of financial information and accountability of the enterprise to the receiver of financial report.

(2) To issue anew and organize the implementation of Vietnamese financial reporting standards (VFRS) base on the principles of internalized international practices to the maximum in conformity to characteristics of Vietnamese economy and enterprise demand, guarantee feasibility during the course of implementation.

II. CONTENT AND SOLUTION

1. Subjects of application

(1) Enterprises including: enterprises having the demand of, with sufficient capacity and resources for application of IFRS which are determined in each period in accordance with publicized roadmap; and other enterprises operating in all economic sectors and economic components in Vietnam applying VFRS.

Extra small-, small and medium-size enterprises which do not have the demand of and requirement for application of IFRS or not eligible of application VFRS by the Scheme.

(2) Training institutions, vocational associations and service providers including: units conducting joint research, training, services provision and assistance in applying international financial reporting standards and Vietnam financial reporting standards.

(3) State management authorities including: The Ministry of Finance and relevant agencies in developing measures and roadmap, publicizing and providing assistance in applying IFRS; conducting research, developing, issuing, training and giving guidelines for implementation of VFRS.

2. Implementation methods

2.1. Methods of publicizing and applying IFRS

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