General introduction of vietnam national petroleum group (plx)

NATIONAL ECONOMICS UNIVERSITY ADVANCED ACCOUNTING Group assignment Class: Advanced Accounting 62 Students’ name: Trieu Khanh Linh Pham Dieu Linh To Anh Thu Luong Thi Hai Anh Luu Thanh Nga Hanoi, 2023 i TABLE OF CONTENTS A- PART I I General Introduction of Vietnam National Petroleum Group (PLX) II Financial statements of the parent company and consolidated financial statements III Comparison of financial situation and business performance based on financial statements 16 3.1 Financial Structure 16 3.1.1 Definition 16 3.1.2 Analysis 16 3.2 Profitability 16 3.2.1 The meaning of the profitability index in Vietnam 16 3.2.2 Calculation and Conclusion 17 3.3 Liquidity 18 3.3.1 Current ratio 18 3.3.2 Quick ratio 19 3.3.3 Operating cash flow ratio 19 3.4 Business efficiency 20 IV The importance of Consolidated Financial Statements 20 4.1 Advantages of Consolidated Financial Statements 20 4.2 The disadvantage of Consolidated Financial Statements 21 B- PART II: The advantages and disadvantages of applying IFRS to Vietnam 22 I IFRS definition and pathway to apply IFRS in Vietnam 22 1.1 IFRS definition 22 1.2 Pathway to applying IFRS in Vietnam 23 1.2.1 Phase 1: Preparations (2020–2021): 23 1.2.2 Phase - The pilot phase (from 2022 to 2025) 23 1.2.3 Phase - compulsory application ( after 2025) 23 II The advantages and disadvantages of applying IFRS to Vietnam 24 2.1 The advantages of applying IFRS to Vietnam 24 2.1.1 Create a global accounting standardization system 24 i 2.1.2 Reduce the amount of effort and money spent on accounting reports 24 2.1.3 More accurately reflect the size and stature of SOEs 25 2.1.4 Increase the global rate of foreign direct investment (FDI) 25 2.1.5 It is simpler to supervise and oversee affiliates and international agents 25 2.2 The disadvantage of applying IFRS in Vietnam 25 2.2.1 Increased deployment/switching expenses for small businesses (implementation/transition costs) 25 2.2.2 Causing a period of tumultuous adjustment 26 2.2.3 Concerns regarding standard tampering 26 2.2.4 In order to achieve productivity, international acceptability is essential 26 III Opportunities and challenges when applying IFRS in Vietnam 26 IV Suggestion 27 References 29 ii A- PART I I General Introduction of Vietnam National Petroleum Group (PLX) Vietnam National Petroleum Group, commonly known as Petrolimex (PLX), was established on December 1, 2011, formerly known as the Vietnam National Petroleum Corporation Petrolimex is a specially ranked state-owned enterprise with a nationwide scale, ensuring the majority of the country's petroleum market share The process of formation and development (Source: Wikipedia vn) Viet Nam Petroleum Corporation has 41 member companies, 34 branches and enterprises affiliated to member companies with 100% state capital, 23 joint stock companies with a dominant capital contribution of the Corporation, Joint venture companies with foreign countries, and branch in Singapore II Financial statements of the parent company and consolidated financial statements CONSOLIDATED FINANCIAL STATEMENT for the year ended 31 December 2022 Consolidated balance sheet Consolidated balance sheet (continued) Consolidated balance sheet (continued) Consolidated balance sheet (continued) Consolidated income statement Consolidated income statement (continued) III Comparison of financial situation and business performance based on financial statements 3.1 Financial Structure 3.1.1 Definition Financial structure is a term that reflects the structure of capital resources (capital structure), asset structure, and the relationship between assets and capital sources The financial structure significantly determines the financial stability as well as the ability to repay (including short-term and long-term debt) of the business where logistics is best The capital structure reflects the proportion of each portion of capital in the total capital of the enterprise The determination of an optimum capital structure not only ensures the level of autonomy and financial security for the operation of the enterprise but also ensures that it operates effectively thanks to a reasonable level of capital costs in the current conditions 3.1.2 Analysis -The ratio between liabilities and total assets based on the consolidated financial statement = 46.693.004.842.014/74.475.615.486.233= 0.63 (1) - The ratio between liabilities and total assets based on separate financial statement =190.100.074.926/492.683.120.145=0.39 (2) * If this indicator has a higher value close to one (=1), it shows that the enterprise mobilizes more liabilities to purchase assets This increases the financial risk of the business -From the consolidated balance sheet, it can be seen that liabilities accounted for nearly 63% of total resources, and equity accounted for only about 37% While in the separate balance sheet, liabilities accounted for nearly 39% of total resources, equity accounted for about 60% (3) (1),(2), and (3)=> Compared to PLX Group, the parent company used more equity to purchase operating assets, making the enterprise more financially independent and proactive in business activities Because it did not depend much on liabilities 3.2 Profitability 3.2.1 The meaning of the profitability index in Vietnam - ROE shows how much profit the business will earn with VND of equity - ROA shows how much profit after tax can be generated by the company with VND of the initial investment 16 - ROS index shows how much profit will be generated by VND of net revenue from sales and service provision (profit after tax) ROI is the profit received for the amount of capital invested in the company or project 3.2.2 Calculation and Conclusion ● Separate income statement ROA= Net income/ Average total assets = [22.956.313.142/ (492.683.120.145+533.198.586.283):2]x 100%=4.48% ROE= Net income/ Average Shareholders’ Equity = [22.956.313.142/ (302.583.045.219+301.200.479.332):2]x100%= 7.60% ROS = (Operating Profit/ Total Sales) x 100% =2.79% ROI= (Net Return on investment/ Cost of investment)x100% =2.83% ● Consolidated income statement of PLX Group ROA= Net income/ Average total assets= 2.08% ROE= Net income/ Average Shareholders’ Equity= 6.79% ROS = (Operating Profit/ Total Sales) x 100% = 0.63% ROI= (Net Return on investment/ Cost of investment)x100% = (1.902.233.337.751/ Net cost)x 100%= 0.62% ● Conclusion: 17 Financial Index of Petrolimex Group 2019-2022 (Source: view stock.vn) Financial Index of Parent Company 2019-2022 (Source: view stock.vn) Based on profitability indicators, it can be seen that the business performance of the parent company was higher than that of PLX Group The ROS index of both PLX Group and Parent Company was over 0%, which was a sign of profitable business However, when compared to the previous years, the profitability of both was unstable and lower than the previous year For example, ROA shows that the efficiency in using assets of both compared to the past was decreasing 3.3 Liquidity 3.3.1 Current ratio A liquidity ratio called the current ratio assesses a company's capacity to repay shortterm obligations or those that are due within a year A company's ability to stably balance its assets, financing, and liabilities is assessed by comparing its current assets to its current liabilities The current ratio typically serves as a broad indicator of a company's financial health because it demonstrates its capacity to settle short-term debts (Fernando, 2023) Lenders and investors outside of a company may use the current ratio to decide whether or not they wish to cooperate with it (Girardin, 2023) Current Ratio = Current Assets / Current Liabilities Petrolimex Group at the end of 2022: Current ratio = 50,170,189,581,865 / 45,694,575,928,857 = 1.0979 Parent company at the end of 2022: current ratio = 106,812,587,990 / 107,490,281,926 = 0.9936 While Petrolimex Group's current ratio was above 1.00, which of the parent company was below 1.00 Theoretically, a business that has a higher current ratio—one that shows a higher ratio of short-term asset value to short-term liability value—is better 18 able to satisfy its obligations In general, ratios above 1.00 may show Petrolimex Group's ability to pay its current debts when they are due, while ratios below 1.00 may suggest parent company may struggle to meet its short-term obligations Considering that the current ratio of the parent company is below 1, it's probable that the company faces more commitments than it has available cash to cover 3.3.2 Quick ratio The quick ratio, commonly referred to as the Acid-test or liquidity ratio, calculates the proportion of a company's assets that can be quickly converted into cash in order to assess the company's capacity to meet its short-term obligations Cash, marketable securities, and accounts receivable are the three asset types listed Because they can be swiftly turned into cash, these assets are known as "quick" assets (CFI, 2023) Quick ratio = quick assets / current liabilities Quick assets = cash & cash equivalents + marketable securities + accounts receivable = current assets – inventory – prepaid expenses Petrolimex Group at the end of 2022: quick ratio = ( 11,606,028,926,698 + 7,097,643,300,290 + 12,673,687,965,547 ) / 45,694,575,928,857 = 0.6867 The Parent company at the end of 2022: quick ratio = ( 33,793,248,274 + + 12,854,409,391 ) / 107,490,281,926 = 0.43397 Petrolimex Group’s quick ratio was higher than the parent company, however, Petrolimex Group and parent company’s quick ratio were less than 1.00 A corporation doesn't have enough quick assets to cover all of its short-term obligations if its quick ratio is less than If there is a disruption, it might struggle to come up with the cash to pay its creditors Furthermore, if the company wants to borrow money, it might have to pay high-interest rates 3.3.3 Operating cash flow ratio The operating cash flow ratio, a liquidity ratio, assesses a company's capacity to fulfill its current obligations with the cash flow from its main activities This financial metric shows a corporation's operating activities in relation to its current liabilities (CFI, 2023) A useful technique for assessing a company's efficiency and profitability is a ratio analysis of its financial input and output As a result, to evaluate the viability and general health of businesses, business owners and analysts employ a variety of financial statistics, such as the operating cash flow ratio Operating cash flow ratio = cash flow from operations / Current liabilities Petrolimex Group at the end of 2022: Operating cash flow ratio = 5,091,763,868,262 / 45,694,575,928,857 = 0.1114 The parent company at the end of 2022: Operating cash flow ratio = 82,508,274,584 / 107,490,281,926 = 0.7676 The operating cash flow ratio of the parent company was higher than that of Petrolimex Group A greater ratio indicates that a corporation has generated more cash during a 19 specific time period than was required to pay off current liabilities promptly If the ratio is less than 1, the company cannot generate enough operating cash to pay its short-term obligations This points to pressing issues and the need for further capital Creditors, analysts, and investors favor a higher ratio, larger than 1.0, as it demonstrates that a business can meet its short-term obligations while still turning a profit If an organization's operating cash flow is substantial or increasing, its financial situation is healthy 3.4 Business efficiency The overall consolidated revenue in 2022 was anticipated to be 304,171 billion VND, exceeding 25% of the target and increasing by 78% from 2021, reported to the Vietnam National Petroleum Group (Petrolimex) With the above results, the consolidated profit before corporate income tax was VND 2,270 billion Therefore, the group's pre-tax profit was about seven times more than expected Over and beyond the allocated amount, Petrolimex contributed more than 32,000 trillion VND to the budget According to the parent company, total revenue in 2022 was 821,620 million VND, exceeding 23% of the plan and 27% compared to 2021 With the above results, the separate profit before corporate income tax was VND 28,978 million Thus, the group's pre-tax profit exceeded approximately 1.03 times the plan In summary, 2022 saw excellent financial results for both Petrolimex Group and the parent company, along with rapid sales growth The sales and profit of Petrolimex Group, however, far outperformed those of the parent company compared to the year 2021 and plan for 2022 IV The importance of Consolidated Financial Statements 4.1 Advantages of Consolidated Financial Statements Consolidated financial reports are a GAAP requirement for good reason Some of the many benefits of the consolidated financial statement include: Complete Overview – Consolidated statements provide interested parties with a thorough perspective of the parent firm, including investors, financial analysts, business owners, and other interested parties They can quickly assess the state of the firm as a whole and the effects of each subsidiary on the main business Reducing Paperwork – With consolidated financial statements, there is also less paperwork involved There are 40 unique standalone financial reports to see if the parent business has nine subsidiaries, including the four basic financial statements for each subsidiary as well as the parent firm Finding all of these records would be challenging, and it would be far more challenging to review each one in order to get a broad picture of how the company operates The huge number of reports was reduced to only four 20 consolidated reports by consolidated financial statements As a result, evaluating the financial health of a parent firm requires less time and paperwork Simplification – Since transactions between subsidiaries and the parent firm cancel each other out in the overall scheme of the business, consolidation software eliminates all of these transactions By eliminating these transactions, the performance of the firm is more clearly shown Updates to Consolidated Financial Statements – Consolidated financial statements will keep developing over time to provide transparency in the process of assessing a parent business This is due, in part, to the fact that in the past, certain businesses have utilized consolidated reporting to conceal liabilities and losses in particular subsidiaries established just for this purpose The definitions and requirements for consolidated statements are periodically reviewed by the Financial Accounting Standards Board and the International Accounting Standards Board in order to make them more dependable and user-friendly For example, to give management and connected parties a comprehensive understanding of the firm's financial status, Petrolimex combines all information on revenue and receivables from its subsidiaries into the company According to the Vietnam National Petroleum Group (Petrolimex), an integrated subsidiary, the expected total congressional revenue in 2022 was estimated to be 304,171 billion VND, exceeding 25% of the target and rising by 78% from 2021 while the parent company's pre-tax operating revenue was more than 57 billion VND If it is to separate the financial statements of the parent company and its subsidiaries, it will take a long time to compare and get an overview of the group's financial position So, the above figures in the consolidated financial statements are the combination of 57 billion of the parent company and the revenue of its subsidiaries which provides an efficient comparison tool of the group's annual earnings 4.2 The disadvantage of Consolidated Financial Statements ● Conceal poor performance Revenues, expenses, and net profit are no longer reported separately in income statements but rather are integrated as a result of consolidation This may hide problems with profitability at one or more of the enterprises ● Skew financial ratios 21 Financial ratios are important to investors since they show the viability of a company As each company's assets, liabilities, and income are recorded as one in consolidated financial statements, any derived ratios may be biased and thus not correctly reflect each company's particular ratio ● Masks inter-company income When financial statements are consolidated, every inter-company transaction is eliminated This provides a more precise representation of the businesses because it only includes financial interactions with unrelated parties, but it fails to adequately depict inter-company exchanges For example, in the consolidated financial statements we exploit data such as: ROE= Net income/ Average Shareholders’ Equity= 6.79% Petrolimex Group at the end of 2022: Current ratio = Current Assets / Current Liabilities = 50,170,189,581,865 / 45,694,575,928,857 = 1.0979 The date of this table is not accurate enough because the transactions of the subsidiary are excluded from the consolidated financial statements and some of the internal transactions are also excluded, so the above figures are not completely pointing out the internal problems of the subsidiaries, the loans are still incomplete and inaccurate Therefore, metrics on fixed asset liquidity or profitability are still not intuitive enough B- PART II: The advantages and disadvantages of applying IFRS to Vietnam I IFRS definition and pathway to apply IFRS in Vietnam 1.1 IFRS definition The way that firms present and report an economic transaction is determined by International Financial Reporting Standards (IFRS), which are Common Accounting Rules Additionally, it outlines the details that must be disclosed or included in the financial statements Which is Many organizational issues have been resolved on a worldwide level thanks to a single set of standards The International Accounting Standards Board (IASB) created and upholds them The IASB wants the rules to be implemented consistently around the world so that shareholders and other customers of accounting records can compare the financial status of publicly traded businesses with that of their worldwide competitors on the same scale The Ministry of Finance issued Decision No 345/QD-BTC 22 Due to the current global development, it is obvious that Vietnam supports and is focused on implementing international financial reporting standards (IFRS) Organizations and the business environment in particular Particularly the state (SOE) is spending significantly to benefit from this current development 1.2 Pathway to applying IFRS in Vietnam The approval of the Project's application of financial reporting requirements in Vietnam was announced in Decision Decision No 345/QD-BTC ("Decision 345"), which was released by the Ministry of Finance on March 16, 2020 As a result, the length of time of voluntary IFRS adoption from 2022 to 2025 is preceding the research phase of mandatory application starting in 2025 In this case, SOEs are one of the entities that must choose to implement IFRS, especially for the consolidated financial statements of the parent enterprise of sizable state economic sectors or to get loans from external financial institutions The adoption of IFRS is divided into three phases in the draft system, namely: 1.2.1 Phase 1: Preparations (2020–2021) The Council of Interpretation and Revision will be established by the Ministry of Finance until December 2020 in order to finish the Vietnamese adaptation of IFRS The Ministry of Finance must create and release pertinent legal paperwork around March 2021 in order to make the Vietnamese adaptation widely known The Ministry of Finance will create, issue, or ask the proper authorities to publish legal paperwork outlining how to put into effect IFRS prior to November 15, 2021 It will also carry out, improve, and distribute new financial systems related to the implementation of IFRS, instruct personnel, and offer implementation processes for businesses 1.2.2 Phase - The pilot phase (from 2022 to 2025) The Ministry of Finance chooses a variety of businesses (parent organizations of State monetary organizations, mentioned firms, massive publicly traded companies, and an unregistered parent company) to compile the consolidated financial statements in accordance with IFRS While foreign direct investment (FDI) businesses guarantee that they offer adequate details and evident and straightforward clarification to tax officials, administration, and supervision firms on the decided responsibilities to the State budget, they are permitted to willingly submit applications IFRS to differentiate financial statements 1.2.3 Phase - compulsory application ( after 2025) All parent firms of government ownership businesses, all registered corporations, and all publicly traded organizations of any type are among the entities obliged to generate consolidated financial statements under IFRS The unregistered parent firm is sizable The obligation to opt to generate consolidated financial statements in 23 accordance with IFRS exists for other businesses that are the parent organization Businesses are also permitted to deliberately generate distinct accounting records in accordance with IFRS if they take care to offer taxing agencies, administration, and oversight organizations enough data and apparent transparent justifications for their decisions responsibilities to the State's treasury Figure 1: IFRS implementation roadmap in Vietnam according to Decision 345 and applicable subjects II II The advantages and disadvantages of applying IFRS to Vietnam 2.1 The advantages of applying IFRS to Vietnam 2.1.1 Create a global accounting standardization system Each nation's financial system is unique Based on the financial reporting regulator's policy in that nation The use of IFRS will aid in the planning of accounting in nations that have entered into agreements (World Bank, 2017; FSB, 2015; G20, 2012) This serves as the foundation for achieving the following advantages: increased information openness, more cross-border (multinational) investment, and lower capital expenses when assessing the amount of liquidity associated with investment activities generated… 2.1.2 Reduce the amount of effort and money spent on accounting reports The use of IFRS helps firms to decrease the amount of time and money spent in generating financial reports (Merve, U., & Başak, 2014) by businesses connected to the "transformation of financial statements" will no longer be necessary Particularly with international companies and enterprises with overseas invested funding, financial statements must be prepared as needed by the host country in addition to at the demand 24 of the parent country When IFRS becomes commonly used, the representative/subsidiary (agencies) in the country where it is implemented just need to establish one platform for single financial statements, decreasing both time and expenses for the creation of financial statements 2.1.3 More accurately reflect the size and stature of SOEs Particularly, IFRS permits the adoption of an appraisal model for commodities that are apparent, fixed, or have a fair value for tangible property investments and financial products As a result, when using IFRS, SOEs that possess a land fund, a major industrial park, or allocated or leased land would typically have periodic payments over a lengthy period of time The overall assets are greater than the initial cost under Vietnamese accounting standards (VAS) This also aids in avoiding capital loss When the revaluation occurs before and following the equity ownership procedure The enterprise's main resources are identified and publicized on an ongoing schedule, rather than only when equitization occurs 2.1.4 Increase the global rate of foreign direct investment (FDI) IFRS adoption boosts the amount of foreign investment being carried out worldwide The adoption of IFRS across the board may render it easier for businesses to make investments in other businesses when the chance arises Research According to the FDI sector, the creation of distinct accounting standards creates confusion (uncertainty) in financial transactions without a doubt this is present in many other standards combined When using IFRS, limitations and stereotypes regarding differentiating between national and global enterprises will be decreased or eliminated Financial knowledge will grow easier to understand and more reliable, resulting in faster choices regarding investments 2.1.5 It is simpler to supervise and oversee affiliates and international agents If a nation has its accounting system, its agent and its subsidiaries abroad have to prepare the financial statements at the identical time as needed by IFRS and as needed by the structure of the system This raises the possibility of information conflicts between both systems in addition to audit obligations As a result, worldwide implementation of a uniform set of accounting guidelines will reduce the danger of accounting information inaccuracies caused by the use of several common systems The level of supervision will be raised 2.2 The disadvantage of applying IFRS in Vietnam 2.2.1 Increased deployment/switching expenses for small businesses (implementation/transition costs) Many perspectives frequently presume that administrators of small and medium in size firms believe that the expenses of adhering to accounting rules exceed their objectives (ACCA) While major corporations can shift the expense of adopting IFRSs to their subsidiaries overseas, small enterprises that provide products and local (domestic) 25 activities will be forced to absorb all of the expenses, putting them in a difficult position to adapt At the precise same time, because SMEs have fewer resources at their disposal, it will take them a longer period to instruct their employees to implement IFRS As a result of this procedure, small businesses will bear a greater burden as a result of this significant accounting adjustment 2.2.2 Causing a period of tumultuous adjustment When firms transition from the framework of national standards to the IFRS system, the danger of costly errors or conversion difficulties increases Because any nation can announce the implementation of IFRS while also maintaining its own sophisticated legal structures, numerous financial statements may still be requested That is, when adopting IFRS internationally, the sole distinction we perceive is a modification in the manner of presentation of financial statements of subsidiaries operating abroad (representatives and agencies) 2.2.3 Concerns regarding standard tampering The adaptability of IFRS can provide numerous advantages, but it can also be detrimental Businesses can opt for reporting that utilizes only the methodologies they wish, allowing their financial statements to display the outcomes they desire This adaptability facilitates the tampering of financial statement comes back making it simpler to cover up potential financial difficulties IFRS can also lead to deceptive behavior, such as altering the way of pricing product inventories in order to create additional revenue on statements of profit and loss, thereby giving the business the appearance of being in more advantageous circumstances than it in fact is This problem can arise frequently during an economic downturn (Boumedien, Nafti, & Boumediene, 2014) According to the findings of Boumedience et al (2014), the worldwide economic downturn in 2008 played a role in reducing the statistics provided by figures accounting, which can be caused by investors' insufficient trust in financial statements issued by IFRS The issue of "flawed accounting" was heavily debated throughout this period, as politicians sought to appease the general outrage over banks that appear to be doing great but have collapsed 2.2.4 In order to achieve productivity, international acceptability is essential Other businesses around the world will continue to use the most common local accounting standard In this instance, an organization that chooses to conduct commerce in another country may be required to keep generating multiple kinds of financial statements in order to meet the requirements of both local and international accounting standards Because the vast majority of enterprises in Vietnam work within the country, the period of time and money required to adopt this system will make sense insignificant to them As a result, the use of IFRS remains a significant disadvantage for Vietnam's SMEs III Opportunities and challenges when applying IFRS in Vietnam 26 In the present environment, when the marketplace finance is progressively being refined, the financial market is undergoing a rapid transformation, and investment from abroad is expanding rapidly, the adoption of IFRS is both required and essential Yet, applying IFRS is a complex and critical task The IASB and specialists from foreign associations of professionals are needed to provide advice and assistance to Vietnam The positive news for Vietnam is that, throughout the Workshop on Experience in Implementing IFRS in Developing Countries organized by the Ministry of Finance in collaboration with Deloitte, IASB President - Hans Hoogervorst dedicated to supporting Vietnam in the procedure of adopting IFRS in a variety of ways, including instruction, educational resources, assistance with technical matters, and so on In terms of the IFRS application roadmap, Vietnam should research and look into implementing IFRS as soon as the Accounting Law 2015 takes place on January 1, 2017 To make the adoption of IFRS viable, the leadership of the organization should establish a set of regulations that are first relevant to large-scale businesses that have continuous manufacturing, as well as company, ties with overseas partners finances, foreign-invested firms When the positive effects of the adoption of IFRS are proven and the advantageous variables for broad IFRS adoption mature, economic growth will progress toward adopting this norm for all firms Transformation is never simple, but it is necessary in a rapidly rising economy like Vietnam To support the sustained expansion of the economy, Vietnam requires investment in the stock market Financial statements according to IFRS of Vietnamese firms would provide investors from abroad investing in Vietnam with constant highquality, and relevant data The use of IFRS will also demonstrate to global economic conferences that Vietnam's commercial legal system satisfies the most stringent international requirements The establishment of IFRS in Vietnam, like any other kind of infrastructure project to assist the country's economic growth, necessitates money To incorporate IFRS, the legal structure for financial reporting will need to be updated What is required is IFRS education and guidance for all financial reporting professionals and auditors engaged IV Suggestion The suggestions that follow must be put into practice in order for IFRS to be applied efficiently and effectively in Vietnamese businesses: In favor of governance by states organizations First, quickly introduce a set of guidelines for the creation of financial statements in accordance with IFRS 27 Second, five accounting norms involving items and trades that have emerged in economic life must be issued soon These norms include payment in shares (IFRS 02); look, investigation, and valuation of mineral resources (IFRS 06); financial instruments (IFRS 7; IFRS 9); government grants (IAS 20); and loss of property (IAS 36) In the near future, regulations must also be developed for the following areas: worker wellbeing; farming; property held for sale, and sporadic company operations… In order to enhance the use of IFRS in Vietnam, government departments must establish regulations that assist companies and other entities in their efforts to learn about and implement the standard The Ministry of Finance should also work with other departments to conduct multiple training applications, mentor firms, implement IFRS in the compilation of financial statements; and improve communication with companies to support the move to IFRS implementation To the training facilities: ● IFRS ought to be taught in the structure of vocational training institutes, at least in college finance and accounting programs From the phases of producing educational materials, educational resources, documentation, and themes covered in particular training courses, this job needs to be planned methodically On the part of accounting and auditing professional organizations Accounting, auditing, and other professional organizations must strengthen their roles in instructing, educating, and distributing IFRS expertise for personnel in the sector, as well as offering professional assistance to firms that use them Authorities such as the Ministry of Finance, accounting and auditing specialist organizations, and worldwide organizations must proactively assist and advise firms as they implement IFRS On the enterprise side ● Identify your objectives, requirements, and implementation strategies In particular, according to the substance and principles of the IFRS adoption plan in Vietnam, build a thorough strategy and coordinate operations with respect to the IFRS adoption roadmap ● It is vital to create an overall strategy and perform training for employees to comply with the IFRS implementation standards and roadmap The strategy should be informed by the legislation controlling the assurance of the quality of accounting and auditing offerings, in addition to the period required to keep up the oversight body's information 28 References Những Thách Thức Trong Việc áp dụng IFRS Việt Nam IFRS Việt Nam (2022, March 30) https://ifrs.org.vn/nhung-thach-thuc-trong-viecap-dung-ifrs-o-viet-nam/ Quyên, T T (2020, April 5) Cơ Hội Thách Thức Khi áp dụng IFRS Vào Việt Nam Tạp chí Cơng Thương https://tapchicongthuong.vn/baiviet/co-hoi-va-thach-thuc-khi-ap-dung-ifrs-vao-viet-nam-70159.htm Anh Đào, P T (2021, September 8) Nghiên Cứu Trao đổi VAA http://vaa.net.vn/ap-dung-ifrs-tai-viet-nam-nhung-kho-khan-dat-ra/ Chính, V D (2022, April 28) Áp dụng Chuẩn mực Báo Cáo Tài Chính Tại Việt Nam: Thách Thức Giải Pháp Tạp chí Tài https://tapchitaichinh.vn/ap-dung-chuan-muc-bao-cao-tai-chinh-tai-vietnam-thach-thuc-va-giai-phap.html Đoàn Thị Thảo Uyên (2020) Vận dụng chuẩn mực lập báo cáo tài quốc tế để lập báo cáo tài doanh nghiệp Việt Nam, Tạp chí Tài chính, kỳ 2, tháng 11/2020 Hương, P T (2021, December) Áp dụng Chuẩn mực Báo Cáo Tài Chính quốc TẾ (IFRS) Các Doanh Nghiệp Việt Nam Tạp chí Kinh tế Dự báo - Bộ Kế hoạch Đầu tư https://kinhtevadubao.vn/ap-dung-chuan-muc-bao-cao-tai-chinh-quocte-ifrs-o-cac-doanh-nghiep-viet-nam-hien-nay-23320.html Tập đoàn Xăng Dầu Việt Nam (Petrolimex) :: Thông Tin Hoạt động SXKD :: Petrolimex (PLX) - tập đoàn Xăng Dầu Việt Nam Trang trần (n.d.) https://www.petrolimex.com.vn/gioi-thieu/gioithieupetrolimex/qua_trinh_hinh_thanh_va_phat_trien.html#:~:text=Tổng%20 cơng%20ty%20Xăng%20dầu%20Việt%20Nam%20(Petrolimex)&text= Tổng%20cơng%20ty%20Xăng%20dầu%20Vệt%20Nam%20có%3A%2 041%20Cơng,1%20Chi%20nhánh%20tại%20Singapore Lịch sử Hình Thành Phát triển Tập đoàn Xăng dầu Việt Nam (2009, April 22) https://m.petrolimex.com.vn/viVN/426EB6A35EC74DB4868ABB2A4CF61399/View/Baiviet/Qua_trinh_hinh_thanh_phat_trien_Petrolimex/Print.aspx#:~:text=T ổng%20Công%20ty%20Xăng%20dầu,của%20Thủ%20tướng%20Ch%C 3%ADnh%20phủ 29 V (2021, January 8) Hành trình 65 năm phát triển Petrolimex vnexpress.net https://vnexpress.net/hanh-trinh-65-nam-phat-trien-cuapetrolimex-4218311.html 10 CFI (2023, May 10) Retrieved from CFI: https://corporatefinanceinstitute.com/resources/accounting/quick-ratiodefinition/ 11 Fernando, J (2023, March 25) Investopedia Retrieved from https://www.investopedia.com/terms/c/currentratio.asp 12 Girardin, M (2023, May 16) Forage Retrieved from https://www.theforage.com/blog/skills/current-ratio 13 Girardin, M (2023, March 17) Forage Retrieved from https://www.theforage.com/blog/skills/quick-ratio 30