EY Vietnam collaborates with Loc Troi Group for IFRS adoption

EY Vietnam will support Loc Troi Group in implementing IFRS accounting standards

Under the agreement, EY Vietnam will support Loc Troi Group to analyse and determine the gap between Vietnamese Accounting Standards (VAS) and IFRS to apply at the latter’s operations. EY Vietnam will also suggest solutions, accounting systems, as well as financial and business reporting formats in line with IFRS. EY Vietnam will collaborate with relevant stakeholders to implement the IFRS accounting software, provide in-depth training about IFRS standards, and support the personnel of Loc Troi Group in the application of these standards.

The IFRS Roadmap in Vietnam was officially approved in Decision No.345/QD-BTC on March 16 by the Ministry of Finance. Under the project, the roadmap for IFRS adoption would be divided into there phases: the preperatory phase from 2020 to 2021, the first phase from 2022 to 2025, and the second phase after 2025. Entities falling under the roadmap will have different options or tracks – some belong to compulsory or voluntary IFRS application groups, whereas others are mandated to apply Vietnamese financial reporting standards (VFRS). The early transition from VAS to IFRS is expected to help businesses make better preparation for their business and capital development strategy.

Nguyen Duy Thuan, general director of Loc Troi Group said that since the end of 2018, Loc Troi has restructured the entire organisation towards digital transformation with a view to becoming the leading agricultural service corporation in the region.

“The adoption of Enterprise Resource Planning and IFRS is an important step in our digital transformation journey,” he said. “Applying IFRS earlier than the IFRS roadmap of regulatory bodies means we have more time to implement and synchronise our technical infrastructure. This is also an opportunity for Loc Troi Group to consolidate our staff, improve financial reporting and corporate governance, thereby tightening partnership with our partners and seeking capital for future development.”

Le Vu Truong, EY Vietnam assurance partner, Financial Accounting Advisory Services leader said that according to international practice, it is important that the leaders and departments show determination and consensus to implement IFRS, in addition to investing in the necessary system and allocating resources reasonably.

"We can share experience with customers and support them to effectively implement IFRS depending on their conditions," he added.