Ministry of Finance proposed reissue of 8 Vietnamese Auditing Standards (VAS)

Ministry of Finance announced a Draft Circular to issue 8 Accounting Standards ( VAS ), the first times, including general standards; VAS 02 - Inventory; VAS 11 - Construction Contracts; VAS 16 - Tangible fixed assets; VAS 18 - Revenue; VAS 21 – The effect of changes in foreign exchange rates ; VAS 23 - Borrowing Costs; VAS 28 - Investments in associates and joint ventures .

Draft Circular has amended and supplemented a number of notable issues including: the draft standard for construction contracts issues new regulations which require the contractor to recognize immediately their estimated loss on the periodic financial report. The new points in the draft standard for inventory is that Last in – First out costing method is not permitted to be applied. The draft adds in the accounting scope of inventory, except for harvesting agricultural products.

The Draft on Standards of Tangible fixed assets allows enterprise to apply corporation revaluation models in order to comply with the application of fair value accounting principle.

The latest point in the Draft VAS 28 is that applying equity method for financial statements of independent business; ending the allocation of goodwill arising from investments in associations and returns of profits and losses arising from transactions between investors and their associated companies.

These 8 Standards are expected to be issued later this year and applied from 2015.