Impacts of the lastest draft IFRS roadmap for Vietnam

On 23 March 2019, the MoF released the draft IFRS roadmap for public comments before submitting to the Prime Minister for approval. The draft IFRS roadmap divides the IFRS implementation into three stages:

• Stage 1 – IFRS readiness preparation (from 2019 to 2021)
• Stage 2 – IFRS pilot implementation (from 2022 to 2025)
• Stage 3 – IFRS compulsory implementation (from 2025 onwards).

Details are as follows: 

The IFRS roadmap is expected to bring the overall benefits to enterprises in terms of financial information transparency for shareholders, investors and other stakeholders, which would then translate into the ease of foreign capital flows to the businesses at reasonable costs. However, to realise those benefits, enterprises would need to manage well the potential negative impacts due to the following common challenges:

• The lack of resources to implement IFRS;
• The unawareness of financial impact when company moves from VAS to IFRS;
• The lack of required information to calculate the gap adjustments, leading to audit qualifications;
• The redundancy or unsuitability of internal procedures;
• Conflicted interest by different stakeholders when IFRS is implemented.

With PwC's local and regional experience in IFRS implementation, we endeavour to bring you the best support to prepare for the future of IFRS adoption.