{"id":5909,"date":"2024-06-17T14:42:53","date_gmt":"2024-06-17T07:42:53","guid":{"rendered":"https:\/\/kreston.vn\/en\/?post_type=service&p=5909"},"modified":"2024-07-19T15:46:19","modified_gmt":"2024-07-19T08:46:19","slug":"valuation-for-financial-reporting-purposes-under-ifrs","status":"publish","type":"service","link":"https:\/\/kreston.vn\/en\/service\/valuation-for-financial-reporting-purposes-under-ifrs\/","title":{"rendered":"Valuation for Financial reporting purposes under IFRS"},"content":{"rendered":"
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Background<\/h2>\n\n\n\n

International Financial Reporting Standards (IFRS) requires assets and liabilities to be recognized and presented at fair value, which is the price that an asset can be transferred or a liability can be settled between knowledgeable and willing parties in an arm\u2019s length transaction. This ensures that financial statements accurately reflect the true value of items and provide precise and fair information to users of the financial statements.<\/p>\n\n\n\n

In Vietnam, financial reporting is currently based on accounting standards that use the historical cost principle, which significantly differs from the fair value requirement of IFRS. Applying valuation for fair value presentation under IFRS enhances transparency in financial reporting. When items are valued at fair value, investors and other stakeholders can better understand the true value of a company’s assets and liabilities, allowing for more accurate economic decisions. However, the complex nature of valuations presents a significant barrier, requiring experienced and specialized experts in the field.<\/p>\n\n\n\n

How Kreston (VN)<\/span>\u2019s valuation services for IFRS Financial Reporting benefit businesses?<\/h2>\n\n\n\n

Kreston (VN)<\/span><\/mark> provides valuation services for financial reporting purposes under IFRS, helping businesses not only comply with international accounting standards but also gain strategic and financial advantages, thereby improving management efficiency and market credibility.<\/p>\n\n\n\n

Transparency and Reliability<\/strong><\/h3>\n\n\n\n
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  • Financial Transparency:<\/strong> Professional valuation services ensure that assets and liabilities are reported at fair value, accurately reflecting the company’s financial condition.<\/li>\n\n\n\n
  • Increased Reliability:<\/strong> Utilizing third-party valuation services enhances the reliability of financial data, reducing the risk of fraud and errors.<\/li>\n<\/ul>\n\n\n\n

    Legal and Accounting Standards Compliance<\/strong><\/strong><\/h3>\n\n\n\n