DRAFT CIRCULAR GUIDING THE APPLICATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) IN VIETNAM

5.1 Subjects and Scope of Application

Enterprises and economic organizations with sufficient capacity, resources, and demand to apply IFRS, including member companies of international financial centers in Vietnam and foreign-invested enterprises (FDIs).

5.2 Method of Applying International Financial Reporting Standards (IFRS)

• Apply the full set of IFRS standards effective at the reporting date
• Maintain consistent application of IFRS for at least one fiscal year
• First-time adoption must follow IFRS 1, including comparative disclosures and mandatory transition content
• Independently develop account systems, vouchers, accounting books, and reporting forms that ensure faithful, transparent, and substance-over-form representation
• Enterprises applying IFRS are not required to prepare financial statements under VAS (Vietnamese Accounting Standards)
• IFRS reports are recognized as legal financial statements, used for submission to authorities and public disclosure as required

5.3 Reporting Period and Submission Deadline

• Entities applying IFRS are still required to prepare and submit financial statements in accordance with the prevailing Vietnamese legal requirements;
• IFRS financial statements may be submitted concurrently with the statutory financial statements required by regulatory authorities.

5.4 Effective Date and Implementation Roadmap (Tentative)

• If the Circular takes effect from January 1, 2027, voluntarily adopting enterprises will begin preparing IFRS-based financial statements from 2028
• By 2030, the Ministry of Finance will review and evaluate the implementation results to determine the next steps