Ho Chi Minh City University of Foreign Languages and Information Technology

Faculty of Economics - Finance

Primary objectives:

• To help you understand how International Financial Reporting Standards

(IFRS® Standards) are used around the world
• To explain the workings of the International Accounting Standards Board
(IASB® , 'the Board') To examine the fundamental requirements of IFRS
Standards on a standardbystandard basis, for the benefit of preparers,
auditors and users of financial statements
• To provide guidance on how to use IFRS Standards in practice, with the aid
of questions, cases and exercises.

The course includes questions and interactive exercises which you should
Part 2 complete before moving on.

Trương Hoàng Hùng , MIntA‐CPA

Subject final evaluation

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AGENDA
Topic one: IFRS introduction  Process of studying : 40%
Topic two: IAS2‐ Inventory
 Learning diligence: 40%
Topic three: IAS 16 ‐Property, Plant and
IFRS

Equipment  Midterm test: 60%

Topic four: IFRS 15- Revenue from Contracts
 Final test: 60%
with Customers
Topic five: IFRS 16- Leases
Topic six: IAS 23- Borrowing Costs Total: 100%

Topic seven: IAS 10- Events After the

Reporting Period

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Document Reference TOPIC
1. Interpretation and Application of IFRS Standards - Salim
Alibhai – 2019, Wiley
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2. Kế toán quốc tế - Nguyễn Thị Loan – 2013, NXB Lao Động
AN INTRODUCTION OF IFRS

www.mof.gov.vn;
www.ifrs.org;
www.iasplus.com
https://www.iasplus.com/en/standards/ifrs

Learning Objectives Contents

• Understand basic knowledge of accounting according to
International Accounting Standards. 1.1. Brief history of formation and development of International
• Introduces the organizations that established Accounting Accounting Standards.
Standards. 1.2. The objects of international accounting

• Understand characteristics of the Conceptual Framework of 1.3. Definitions related to international accounting.
Intentional Financial Reporting Standards. 1.4. International accounting organizations of Accounting.
• Name the IAS and IFRS. 1.5. Factors affecting international accounting
• VAS vs IAS/IFRS. 1.6. The trend international accounting convergence
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Problems Caused By Diverse Accounting Standards LO 1
Reasons for Accounting Diversity
• Problems
1. subsidiary use local standards for financial statements. The Legal
System
parent must adjust the subs’ statements to GAAP. Statements must be Tax Regimes
re-stated in common standards.
2. To access foreign capital markets, costly measures must be taken to Culture
prepare financial statements that comply with local standards. Political
and
3. Financial statements from different countries are simply not comparable. Economic All these interact!!!
Ties
Accounting rules differ from country to country.
Financial
Providers
Inflation

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LO 3
Needs of users Brief history of formation and development of International
Accounting Standards.
Accounting standards have always been about the needs of users.
 International Accounting Standards committee (IASC) established in 1973.
The International Accounting Standards Board (IASB) who produce  IASB superseded IASC in April 2001.
the International Financial Reporting Standards (IFRSs) are actually  14-member board
not interested in what companies want their annual reports to show.  (12 full-time, 2 part-time)

 The IASB has sole responsibility for establishing IFRSs (“IASB GAAP”)
Their job is to ensure that accounting standards help produce high
 IASB has no enforcement authority!!
quality, transparent and comparable information.

In this way financial statements should help users make economic

decisions.

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Brief history of formation and development of International
Accounting Standards.
Key Differences between IASC and IASB

• Unlike the IASC Board, the IASB does not have a special relationship with the
international accounting profession. Instead, IASB is governed by a group of
Trustees of diverse geographic and functional backgrounds who are
independent of the accounting profession.
• Unlike the members of the IASC Board, members of the IASB are individuals
who are appointed based on technical skill and background experience rather
than as representatives of specific national accountancy bodies or other
organizations.
• Unlike the IASC Board, which only met about four times a year, the IASB Board
usually meets each month.
Moreover, the number of technical and commercial staff working for IASB has
increased significantly as compared with IASC.

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Monitoring Board IASB
structure
The Monitoring Board is a group of capital market authorities and
provides a formal link between the Trustees and public authorities
in order to enhance the public accountability of the IFRS Foundation
Trustees of the IFRS Foundation
The Trustees of the IFRS Foundation are responsible for the
governance and oversight of the International Accounting Standards
Board, including the Constitution and due process for the
development of the accounting standards
International Accounting Standards Board
The International Accounting Standards Board (Board) is the
independent standard-setting body of the IFRS Foundation
IFRS Interpretations Committee
The interpretative body of the International Accounting Standards Board
(Board), which works with the Board in supporting the application of IFRS
Standards.

IASB structure LO 4
Brief history of formation and development of International
Accounting Standards.

Countries can elect to use IFRS by:

(1) adopting IFRS as its national GAAP
(2) requiring domestic listed companies to use IFRS in preparing their
consolidated financial statements
(3) allowing domestic listed companies to use IFRS
(4) requiring or allow foreign companies listed on a domestic stock exchange
to use IFRS.

Head office
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IAS vs IFRS IAS vs IFRS
Chuẩn mực kế toán quốc tế - IAS
• International Accounting Standards (IAS)
International Accounting Standards
International Accounting Standards were first issued in 1975 by the IASC.
During its operation from 1973 to 2000, the IASC issued 27 IAS numbered
from 1 to 41.
Chuẩn mực BCTC quốc tế - IFRS
International Financial Reporting Standards
• International Financial Reporting Standards (IFRS)
The IASB has been issuing IFRSs since 2001 and has issued 17 IFRSs
to date. văn bản hướng dẫn của UB hướng dẫn CM BCTC QT
IFRIC
International Financial Reporting Interpretations Committee

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27 28

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31 32

33 34

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35 36

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 What is GAAP?

GAAP (Generally Accepted Accounting Principles) is a general term for a set of

financial accounting standards and reporting guidelines used to prepare accounts in
a given environment.

Commentary
UK GAAP, US GAAP are more specific statements.

The term may or may not have legal authority in a given country.
It is a dynamic concept. It changes with time in accordance with changes in
the business environment.

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PRINCIPAL DIFFERENCES BETWEEN IFRS STANDARDS AND US GAAP

Adoption of IFRS – Approach

• ‟ Big bang‟ approach: commits to adoption on a single

date, or perhaps, a series of dates applied
US only Rest of the world to companies of different sizes

• Progressive convergence approach: to move towards

"rules-based" "principles-based". IFRS gradually

• Whichever approach taken, is a sovereign choice

considered more in construction
comprehensive progress

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 Áp dụng IFRS – phương thức tiếp cận

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Roadmap to apply IFRS in Vietnam CHƯƠNG 1. TỔNG QUAN VỀ KẾ TOÁN QUỐC TẾ

DECISION No. 345/QD-BTC dated March 16, 2020

On approval of the Scheme on application of financial reporting standards in Vietnam

If you have
I
any
question,
please feel
free to ask…

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1. Which of the following is not one of the common 2. International Financial Reporting Standards (IFRS) could be
factors that influence a country's financial reporting used by a country by:
practices?
a/ adopting IFRS as its national GAAP.
b/ allowing domestic listed companies to use IFRS.
a/Legal system. c/ requiring or allowing foreign companies listed on domestic
b/Population. stock exchanges to use IFRS.
c/Inflation. d/ requiring domestic listed companies to use IFRS in
d/Providers of financing. preparing consolidated financial statements.
e/ all of the above.
e/Taxation.
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3. Differences between IFRS and U.S. GAAP exist. The use of

the lower-of-cost-or market rule in valuing inventory and 4. The requirements of IFRS apply to all of the following
difference in interpreting market is an example of: types of financial statements except:

a/ timing differences. . a/ General purpose financial statements

b/ disclosure differences. b/ Consolidated financial statements
c/ recognition differences. . c/ Separate general purpose financial statements of entities
d/ presentation differences. . d/ Condensed interim financial statements
e/ measurement differences.

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 5.What is the purpose of IFRS? 6. Who is responsible for issuing IFRS?

a. To regulate the financial reporting of companies a. The International Monetary Fund

globally b. The World Bank
b. To standardize the accounting practices of c. The International Accounting Standards Board
companies globally d. The Financial Stability Oversight Council
c. To promote consistency in financial reporting
d. All of the above

9/3/20XX 53

THANK YOU
IFRS

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