Do accounting standards differ by country?

Generally accepted accounting principles, formally designated in the United States as GAAP, vary from country-to-country, and no universally accepted accounting recording and publishing system currently exists. Controversy has almost inevitably arisen when one country adopts another country’s accounting methods.

What accounting standards are used in Vietnam?

Vietnam uses IFRS as a basis for its own system, the Vietnamese Accounting Standards (VAS), yet there are key differences between the two.

What accounting standards are used internationally?

International Financial Reporting Standards (IFRS) are a set of accounting rules for the financial statements of public companies that are intended to make them consistent, transparent, and easily comparable around the world. IFRS currently has complete profiles for 166 jurisdictions.

Why do the accounting systems of different countries differ?

There are good historical reasons for some of these differences in financial reporting. Financial reporting is a reflection of the culture, language, economic system, and legal system of its country of origin. Each country follows its own set of generally accepted accounting standards.

Why do different countries have different accounting standards explain your answer with suitable example?

There are different accounting standards around the world because different countries have different legal traditions and different cultures and approach economics and financing differently. That said, there is more standardization among countries than the question implies.

What are the disadvantages of international accounting standards?

There is a downside to the flexibility that IFRS allows: companies can utilize only the methods they wish to, allowing the financial statements to show only desired results. This can lead to revenue or profit manipulation, can be used to hide financial problems in the company and can even encourage fraud.

Who developed Vietnamese accounting standards?

The Ministry of Finance of Vietnam
The Ministry of Finance of Vietnam (“MoF”), through the Accounting and Auditing Policy Department, implemented the Vietnamese Accounting Standards (“VAS”). These standards are based on International Financial Reporting Standards (“IFRS”). Batch 4, Six Standards, Decision 12/2005/QD-BTC, February 15, 2005.

What are the differences and similarities between VAS and IFRS?

In general, while IFRS is based on principles, VAS is mainly rules-based accounting. This publication also does not include specific Vietnamese accounting guidance for specific State Owned Enterprises (“SOE”) which may be allowed to apply different accounting rules as compared to the common accounting guidances.

What do you mean by International Financial Reporting Standards How does accounting standards differ from accounting principles?

IFRS is a set of international accounting standards, which state how particular types of transactions and other events should be reported in financial statements. Some accountants consider methodology to be the primary difference between the two systems; GAAP is rules-based and IFRS is principles-based.

What standards are used to prepare financial statements by most of the countries and companies?

Answer: International Financial Reporting Standards (IFRS) set common rules so that financial statements can be consistent, transparent, and comparable around the world. IFRS are issued by the International Accounting Standards Board (IASB).

What are the main factors that influence a country’s accounting system?

A country’s accounting system is affected by a variety of historical, economic, socio – cultural, institutional, and other non – accounting factors, so it is highly unlikely for the influential factors of any two countries to be exactly the same.