December 14, 2017 | 21:12 (GMT+7)
WB backs Vietnam’s compliance with int’l standards in accounting, auditing
The World Bank, in partnership with the Ministry of Finance (MoF), launched the Reports on the Observance of Standards and Codes (ROSC) in accounting and auditing in a ceremony in Hanoi on December 14.
The report aims to assist the development
of a sound financial reporting institutional framework by improving
understanding of the importance of a high-quality system for corporate
financial reporting and auditing.
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Photo for illustration: theleader.vn
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It is a joint World Bank and International
Monetary Fund (IMF) initiative that helps member countries strengthen their
financial system by enhancing compliance with internationally recognized standards
and codes.
The report recommends Vietnam to simplify
the Accounting Law and the Law on Independent Audit towards more on principles
rather than detailed requirements, and to fully adopt International Financial
Reporting Standards (IFRS) and the related International Financial Reporting
Interpretations Committee (IFRIC) interpretations in full for public interest
entities (PIEs).
It also suggested general-purpose financial
statements should be prepared in full compliance with Vietnamese Accounting Standards
(VAS) developed in line with IFRS. Vietnam should minimize the instances in
which instructions and regulations override VAS in the short to medium term
while developing a strong and independent valuation profession to support the
implementation of the Vietnam Financial Reporting Standards, it said.
Opening the ceremony, Director of the MoF’s
Accounting and Auditing Policies Department Vu Duc Chinh thanked the World Bank
in Vietnam and relevant agencies for surveying the current context of accounting
and audit in the country and make recommendations. Vietnam is making efforts to
improve its legal basis for accounting and auditing and increase the
transparency and honesty of financial statements in Vietnam, he added.
WB Director in Vietnam Ousmane Dione, for
his part, said as part of the World Bank Group’s support for Vietnam’s vision
towards 2030, the Reports on the ROSC in accounting and auditing will
contribute to the successful implementation of the country’s Everyone’s
Involved – Sustainable Development Strategy.
Source: VNA