IFRS Standards and Vietnam - WordPress.com · •ASEAN 10-year objective: “ASEAN aims to enhance...
Transcript of IFRS Standards and Vietnam - WordPress.com · •ASEAN 10-year objective: “ASEAN aims to enhance...
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASB or IFRS Foundation.
International Financial Reporting Standards
IFRS Standards and Vietnam
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Hanoi, Vietnam
March 2016
Hans Hoogervorst
Chairman, International Accounting Standards Board
IFRS
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
2
Comprehensive set of Standards,
for use by listed companies and banks
Simplified Standard for use by
smaller, non-listed companies
Afghanistan Chile Hungary Mongolia Slovenia
Albania China Iceland Montserrat South Africa
Angola Colombia India Myanmar Spain
Anguilla Costa Rica Indonesia Nepal Sri Lanka
Antigua and Barbuda Croatia Iraq Netherlands St Kitts and Nevis
Argentina Cyprus Ireland New Zealand St Vincent and the Grenadines
Armenia Czech Republic Israel Nicaragua Suriname
Australia Denmark Italy Niger Swaziland
Austria Dominica Jamaica Nigeria Sweden
Azerbaijan Dominican Republic Japan Norway Switzerland
Bahamas Ecuador Jordan Oman Syria
Bahrain Egypt Kenya Pakistan Taiwan
Bangladesh El Salvador Korea (South) Palestine Tanzania
Barbados Estonia Kosovo Panama Thailand
Belgium European Union Latvia Paraguay Trinidad & Tobago
Belarus Fiji Lesotho Peru Turkey
Belize Finland Liechtenstein Philippines Uganda
Bermuda France Lithuania Poland Ukraine
Bhutan Georgia Luxembourg Portugal United Arab Emirates
Bolivia Germany Macao Romania United Kingdom
Bosnia and Herzegovina Ghana Macedonia Russia United States
Botswana Greece Madagascar Rwanda Uruguay
Brazil Grenada Malaysia Saint Lucia Uzbekistan
Brunei Guatemala Maldives Saudi Arabia Venezuela
Bulgaria Guinea-Bissau Malta Serbia Vietnam
Cambodia Guyana Mauritius Sierra Leone Yemen
Canada Honduras Mexico Singapore Zambia
Cayman Is. Hong Kong Moldova Slovakia Zimbabwe
Countries that require IFRS Standards 3
Red = countries that require the use of IFRS Standards for all or most publicly listed
companies, based on a survey of 140 countries, representing 97 per cent of worldwide GDP
Mission
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
4
To develop IFRS Standards that bring
transparency, accountability and efficiency to
financial markets around the world.
Our work serves the public interest by
fostering trust, growth and long-term financial
stability in the global economy. ”
“
• Supporting Vietnam’s continued economic
development
• Unlocking future potential
• An attractive place for foreign investment
The benefits to Vietnam
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
5
ASEAN GDP vs. Market Capitalisation
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
6
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Indonesia Thailand Malaysia Philippines Singapore Vietnam
GDP Mkt Capitalisation
Data correct as of 31 December 2014. GDP source: World Bank. Market cap source: WFE
$ billion
• Attracts long-term international capital
• Removes major obstacle for inward investment
• Reductions in the cost of capital
• Passport to raise capital internationally
• Internationally recognised skill set
The benefits of IFRS Standards
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
7
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
8 ‘Vietnam 2035’
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
9
• Economics
• Simplicity
• Capacity building
Adopt or adapt?
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
10
Domestic use of IFRS Standards by region
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
11
Region Jurisdictions
in region
IFRS
required
% of region
that requires
IFRS
Permit use of
IFRS
IFRS not
permitted for
use
Europe 43 42 98% 1 0
Africa 19 15 79% 1 3
Middle East 9 8 89% 1 0
Asia-Oceania 32 24 75% 3 5
Americas 37 27 73% 8 2
Totals 140 116 83% 14 10
As % of 140 100% 83% 10% 7%
12 Japan
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
In Japan, the IFRS adopters and their market
capitalisation are growing rapidly.
13 India
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
14 China
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
• ASEAN 10-year objective: “ASEAN aims to enhance further its
attractiveness as an investment destination globally through the
establishment of an open, transparent and predictable investment regime in
the region.”
2025 ASEAN Blueprint
• EU 10-year experience: “European IFRS was successful in creating a
common accounting language for capital markets. Investors and
companies supported IFRS for improving the transparency and
comparability of financial statements.”
European evaluation of ‘10 years of IFRS’
IFRS Standards & creation of a single market
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
15
International Financial Reporting Standards
The views expressed in this presentation are those of the presenter,
not necessarily those of the IASB or IFRS Foundation
Support for emerging economies
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
AOSSG membership
• Australia
• Brunei
• Cambodia
• China
• Dubai
• Hong Kong
• India
• Indonesia
• Iraq
• Japan
• Kazakhstan
• Korea
• Macao
• Malaysia
• Mongolia
• Nepal
• New Zealand
• Pakistan
• Philippines
• Saudi Arabia
• Singapore
• Sri Lanka
• Syria
• Thailand
• Uzbekistan
• Vietnam
17
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
• G20 encourages deeper co-operation between
International Accounting Standards Board and
emerging economies
• Board responds by forming Emerging Economies Group
– Meets twice a year
– Deep dive into issues related to emerging economies
– Directly led to changes in IFRS Standards and IFRIC
Interpretations
Interaction with emerging economies
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
18
• 250 pages long
• For smaller, non-listed
companies
• Currently required or
permitted by 78 countries
• Used by tens of millions of
companies worldwide
IFRS for SMEs Standard
© IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
19
Thank you 20
© 2012 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org