Circular 118/2026/TT-BTC: Guiding the applicable entities, scope, and application principles of International Financial Reporting Standards (IFRS) in Vietnam
01. Scope and Applicable Entities
Scope
Prepare and present financial statements and consolidated financial statements.
(Article 1)Applicable Entities
Enterprises, economic organisations that are:
Members of the International Financial Centre in Vietnam fall within the scope of application of Resolution 222/2025/QH15 and its guiding, amending or replacing instruments have the need, capability and resources to apply the International Financial Reporting Standards.
(Article 2)The application of International Financial Reporting Standards (IFRS) is not mandatory for all members of the International Financial Center.
The adoption of IFRS does not alter the bases and principles for determining tax liabilities under Vietnamese law.
The determination of tax liabilities for enterprises and economic entities must still comply with tax regulations.
02. Principles of Application
Enterprises, economic organizations electing to apply International Financial Reporting Standards (IFRS) must comply with the following principles:
The provisions of International Accounting Standards in force must be applied in full, without any modification.
(Clause 1, Article 3)Enterprises, economic organizations preparing financial statements and consolidated financial statements under IFRS must apply them consistently throughout a financial year.
The adoption or discontinuation of application of IFRS may only take effect at the beginning of the following annual accounting period.
(Clause 2, Article 3)Financial statements and consolidated financial statements must be complete, timely, faithfully, transparent and readily verifiable and controllable.
(Clause 3, Article 3)03. Responsibilities of Enterprises, Economic Organizations Electing to Apply IFRS
Enterprises, economic organizations electing to apply International Financial Reporting Standards (IFRS) must:
04. Application of International Standards
Regulations on first-time adoption of International Financial Reporting Standards
Enterprises, economic organizations changing their accounting system, currently applied Accounting Standards system to International Financial Reporting Standards (IFRS) must present comparative information and fully disclose relevant details in financial statements in accordance with IFRS 1 – First-time Adoption of International Financial Reporting Standards.
List of enterprise, economic organizations electing to apply IFRS
Updated regularly and publicly disclosed on the Web Portal of the Ministry of Finance.
Adjusted within 15 days from the date of receiving written notification on the adoption or discontinuation of application of IFRS from enterprises and economic organizations.
