One of the most significant regulatory changes in many years in Vietnam (and globally) is the adoption of International Financial Reporting Standards (IFRS) / General Accepted Accounting Principles (GAAP), which may directly affect the overall competitive position. Clearly, the driving force for the changes is to allow investors to compare the financial performance of organizations operating in various parts of the world in a better way (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 above mentioned IFRS / GAAP can reduce capital as well as credit cost, help consolidate reporting for MNCs while also streamlining their financial management processes, improve an international enterprise’s ability to finance operations locally, and, of course, enable organizations to attract the interest of investors and enhance their image among its key stakeholders (for private-held organizations).
Although the above, Vietnam Government still requests international companies conducting IFRS / GAAP to generate and file the accounting books under VAS. In this case, generally there are two options 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 parent company’s foreign accounting system and VAS, which will require the company to invest in not only more headcount but also a local accounting software in order to maintain both accounting systems on a daily basis. Whichever option the company choose, it is important to make sure the person or agency that will handle company’s 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.
DATA ENTRY VIETNAM Ltd. have experts in VAS Data Conversion service
With this assignment, DATA ENTRY VIETNAM can provide:
- 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.
Contact us at http://www.data-entry-vietnam.com ; Hotline: +84 28 6670 3100 ; Email: email@example.com.