The Vietnamese Accounting Standards (VAS) refer to the set of unified accounting principles that regulate how costs and revenues of companies operating within national boundaries should be recorded in Vietnam. These principles are crucial for calculating profits correctly and evaluating transactions, impacting tax rates, customs duties, and specific incentives. Failure to follow VAS can lead to government actions, penalties, and legal actions.
Since 2001, the Vietnamese government has enacted five legislative packages with 26 rules governing financial information presentation and content in documents. The last package was approved in 2005 before Vietnam's entry into the World Trade Organization in 2007. These rules cover both general guidelines for financial reporting segmentations and detailed technical rules such as asset and liability calculations.
All the principles utilized by Vietnamese authorities are publicly available and accessible through the Ministry of Finance's website. They have evolved gradually alongside economic reforms aimed at attracting foreign direct investment and improving the economy. The standards include guidance on inventory management, property valuation, revenue recognition, investment reporting, balance sheet presentation, consolidated financial statements, related party disclosures, taxation, post-audit events, non-financial information disclosure, segment reporting, changes in accounting policies, contingent liabilities, insurance contracts, dividend distributions, and more.
Understanding these principles is critical for investors to comply with their obligations under VAS, ensuring accurate and interpretable economic and financial situations across various company locations.
