Ernst & Young Vietnam (EY Vietnam) signed a cooperation contract with Lôc Trời Group in developing and installing International Financial Reporting Standards (IFRS) in Lôc Trời Group’s operating system. — Photo courtesy of EY Vietnam

Ernst & Young Vietnam Limited (EY Vietnam) has signed a co-operation contract with Loc Troi Group to develop and install International Financial Reporting Standards (IFRS) in Loc Troi Group’s operating system.

Under the agreement, EY Vietnam will support Loc Troi Group to analyse the gap between Vietnamese Accounting Standards (VAS) and IFRS to apply in 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 stakeholders to implement the IFRS accounting software, provide training on IFRS standards, and support the personnel of Loc Troi Group in the application of these standards.

Most corporations globally use IFRS as a common accounting language. Vietnamese enterprises will ratchet up the transparency and reliability of their financial statements once using the same accounting language as potential investors and foreign business partners.

Nguyen Thuan Duy, Chief Executive Officer of Loc Troi Group said: “IFRS conversion, along with the implementation of the Enterprise Resource Planning (ERP) system, is one of the central steps in our digitalisation journey, which strongly contributes to our vision to become the leading agricultural corporation in the region."

“One of the imperative tasks the Vietnamese Government has reserved for Viet Nam securities market is to actively integrate with the international financial and securities markets; support the domestic stock market from the current frontier market to an emerging one. The foreign capital obtained from the channel will be the vital resource to meet our economic growth,” Tran Dinh Cuong, EY Vietnam country managing partner, said at the signing ceremony. — VNS