{"id":2739,"date":"2021-06-18T11:41:47","date_gmt":"2021-06-18T02:41:47","guid":{"rendered":"http:\/\/suzuki-global.com\/?p=2739"},"modified":"2021-12-21T13:48:08","modified_gmt":"2021-12-21T04:48:08","slug":"ifrs-and-vas-2","status":"publish","type":"post","link":"https:\/\/suzuki-global.com\/en\/ifrs-and-vas-2\/","title":{"rendered":"Differences in recognition of IFRS and VAS for each accounting account | Toward the Accounting Department \/ Chief Accountant"},"content":{"rendered":"

Differences in recognition of IFRS and VAS for each accounting account (to the accounting department \/ chief accountant)<\/h2>\n

 <\/p>\n

Although there are policies aimed at introducing IFRS into the Vietnam Accounting Standards (VAS) in 2025, there remains a big difference in the perception of IFRS and VAS. This time, I would like to tell the accounting department and chief account about the difference in accounting "recognition" between IFRS and VAS.<\/span><\/p>\n

\n

\u21d2Comparison table of Vietnamese VAS and IFRS accounts<\/strong><\/span><\/a><\/p>\n<\/div>\n

Recognition of IFRS and VAS accounts<\/span><\/h2>\n

Goodwill<\/b><\/p>\n

At VAS, goodwill is amortized over its estimated useful life within 10 years of acquisition and is not subject to an annual impairment assessment.<\/span><\/p>\n

 <\/p>\n

Impairment assessment of property, plant and equipment<\/b><\/p>\n

In IFRS accounting<\/span>Tangible fixed assets<\/b>Recognized as (PPE: Property, Plant and Equipment), there are rules for asset valuation.<\/span><\/p>\n

VAS does not allow PPE impairment write-downs.<\/span><\/p>\n

 <\/p>\n

Intangible fixed assets<\/b><\/p>\n

VAS recognizes the direct deduction method (direct method), which is amortized over a useful life of up to 20 years and deducts the accumulated depreciation. Revaluation of amortized costs is not allowed. ..<\/span><\/p>\n

 <\/p>\n

Inventory<\/b><\/p>\n

Although VAS allows last-in, first-out and averaging as inventory valuation methods, it recommends changing to first-in, first-out or weighted averaging to comply with IFRS.<\/span><\/p>\n

 <\/p>\n

Cash flow<\/b><\/p>\n

Under IFRS, interest expense and dividend income are classified as cash flows from operating activities. Dividend payments are classified as cash flows from financing activities.<\/span><\/p>\n

However, VAS does not have detailed regulations, and at present, companies are more flexible in processing dividends, interest, etc.<\/span><\/p>\n

 <\/p>\n

Financial products<\/b><\/p>\n

Under IFRS, financial instruments introduce the concept of "fair value valuation" and must be valuated on a regular basis. We also need to explain the risks deriving from financial products. The acquisition cost method is applied in the VAS.<\/span><\/p>\n

 <\/p>\n

<\/div>\n

 <\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t\n\t\n\t
 <\/th>IFRS<\/th>VAS<\/th>\n<\/tr>\n<\/thead>\n
Goodwill<\/td>Impairment test every year<\/td>Periodic depreciation within 10 years<\/td>\n<\/tr>\n
Impairment assessment
\n<\/td>		Impairment test every year<\/td>none<\/td>\n<\/tr>\n
Inventory
\n
\n<\/td>		First in first out
\nMean method<\/td>		First-in first-out recommended<\/td>\n<\/tr>\n
Cash flow
\n
\n<\/td>		strict<\/td>flexible<\/td>\n<\/tr>\n
Financial products
\n
\n<\/td>		Fair value<\/td>Acquisition cost<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

 <\/p>\n

\"book<\/a><\/p>\n

\u21d2 Differences between VAS and IFRS: Characteristics of Vietnamese accounting standards<\/strong><\/a><\/p>\n

\u00a0<\/span><\/p>","protected":false},"excerpt":{"rendered":"

Differences in the recognition of each accounting account between IFRS and VAS (for accounting departments and chief accountants) 20 [\u2026]<\/p>","protected":false},"author":1,"featured_media":2743,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[6,72],"tags":[65,102,103],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts\/2739"}],"collection":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/comments?post=2739"}],"version-history":[{"count":19,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts\/2739\/revisions"}],"predecessor-version":[{"id":7817,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts\/2739\/revisions\/7817"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/media\/2743"}],"wp:attachment":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/media?parent=2739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/categories?post=2739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/tags?post=2739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}