The conversion of VAS to IFRS
Volume one – scoping the effort
This publication is the first in a series of guides published by Deloitte Vietnam to assist Vietnamese organizations in the task of transitioning from Vietnamese Generally Accepted Accounting Principles (VAS) to International Financial Reporting Standards (IFRS).
Why convert VAS to IFRS?
The relatively long conversion period (2020 – 2025) means that entities will have time to approach the task in a deliberate fashion considering the scope of the exercise and all its ancillary consequences before plunging into the details of the conversion. Our series aims to provide guidance that is relevant to this deliberate approach, by first dealing with those matters that are in our judgment of a higher priority than others. Adopting IFRS is not a revolution.
It is more like a transfer from one set of financial reporting standards, with which we are already comfortable, to another set that incorporates some changes, new concepts new language, and are often highly similar in form and content.
To prepare for this conversion, we use the travelling analogy as an example, beginning by thinking about what you need to take on the trip and the order of things to be packed. Things that are needed to be addressed first should not be left to last, while there are other important things that can be addressed later in the process.
This guide focuses on scoping and planning for the journey. In subsequent volumes, we will address other aspects of the road ahead in details, with more specific guidance on issues that are relevant to the timing of the process.