APPLYING INTERNATIONAL FINANCIAL REPORTING STANDARDS AND INTERNATIONAL ACCOUNTING STANDARDS TO IMPLEMENT ENVIRONMENT ACCOUNTING IN VIETNAM

Abstract

As financial globalization proceeds, international financial reporting standards, accounting and auditing standards are increasingly becoming important instruments of integration and sustainable development. An inevitable trend is environmental sustainability, and the information that global users need is the product of environmental accounting reporting, which provides environmental financial information for decision-making in businesses. In addition to the current regulations on environmental impact reporting and penalties for environmental violations in Vietnam, it is essential to establish guidelines for environmental financial reporting. The article explores the regulations outlined in the International Financial Reporting Standards (IFRS) and the International Accounting Standards (IAS) to implement them in environmental accounting practices in Vietnam. This allows the state to avoid the need to impose additional regulations on the recognition of assets, liabilities, expenses, and environmental benefits that arise for the purpose of preparing environmental financial reports in businesses. This application not only aligns with the approved roadmap for implementing IFRS in Vietnam but also eases the burden on accountants who must incorporate specific regulations related to the environment.