VAS vs. IFRS: the key differences businesses should know

Before starting a conversion, businesses should understand the fundamental differences between Vietnamese Accounting Standards (VAS) and International Financial Reporting Standards (IFRS).

Recognition principles

IFRS leans toward the economic substance of a transaction and fair value, while VAS still leans heavily on historical cost and strict compliance with prescribed templates. This leads to meaningful differences when recognizing revenue, assets, and certain financial instruments.

Level of disclosure

IFRS requires far more detailed disclosure than VAS, particularly around financial risk, accounting estimates, and significant management judgments. Businesses converting to IFRS need a data system detailed enough to meet these disclosure requirements.