The World Bank, in partnership with the Ministry of Finance (MoF), launched the Report on the Observance of Standards and Codes (ROSC) in accounting and auditing at a ceremony in Ha Noi on December 14.

The report aims to assist the development of a sound financial reporting institutional framework by improving understanding of the need for such a framework.

It is a joint World Bank and International Monetary Fund (IMF) initiative that helps member countries strengthen their financial system by enhancing compliance with internationally recognised standards and codes.

The report recommends Viet Nam simplify the Accounting Law and the Law on Independent Audit so that it states general principles rather than detailed requirements. It also recommends the country fully adopt International Financial Reporting Standards (IFRS) and the related International Financial Reporting Interpretations Committee (IFRIC) interpretations in full for public interest entities (PIEs).

It also suggested general-purpose financial statements should be prepared in full compliance with Vietnamese Accounting Standards (VAS) developed in line with IFRS. Viet Nam should minimise the instances in which instructions and regulations override VAS in the short to medium term while developing a strong and independent valuation profession to support the implementation of the Vietnam Financial Reporting Standards, it said.

Opening the ceremony, Director of the MoF’s Accounting and Auditing Policies Department Vu Duc Chinh thanked the World Bank in Viet Nam and relevant agencies for surveying the current context of accounting and audit in the country and make recommendations. Viet Nam is making efforts to improve its legal basis for accounting and auditing, and increase the transparency and honesty of financial statements in Viet Nam, he added.

WB Director in Viet Nam Ousmane Dione, for his part, said as part of the World Bank Group’s support for Viet Nam’s vision towards 2030, the ROSC in accounting and auditing will contribute to the successful implementation of the country’s Everyone’s Involved – Sustainable Development Strategy. — VNS