Updating Vietnamese Accounting Standards on fair value and financial instruments to align with international practice

Abstract

Recent years have witnessed many important changes in the accounting and financial reporting practice. On the international level, the International Accounting Standards Board which issued International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) is in the process to supplement, amend and develop standards to suit with developed economy, in the direction of harmonizing generally accepted accounting principles in the United States (US GAAP) and International Financial Reporting Standards (IFRS). International Standards include 2 categories: International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS). 

Up to now, Vietnam has issued 26 Vietnam Accounting Standards (VAS) under 5 waves from 1999 to 2001 and has been supplemented and amended. However, the VAS recently has been assessed to be inappropriate or incomplete, not suitable with current requirements of Vietnam, as well as inconsistent with International Standards and the important reason of which is no current regulations on fair value. This article is proposing regulations over fair value and financial instruments need to be updated in Vietnamese Accounting Standards.