For businesses to survive and develop sustainably, financial reports play an important role in demonstrating their financial capacity.

For businesses, preparing financial statements according to international accounting standards (IFRS) is not only a mandatory requirement but also a condition to ensure that information is clearly understood and easily compared globally.

IFRS, developed by the International Accounting Standards Board (IASB), provides a common language for international business issues.

However, preparing financial statements according to IFRS standards is not simple for many businesses.

Ms. Nguyen Thi Thuy, Training Director at Audit Care Vietnam Training Center (ACV), said that financial reports not only reflect the financial situation of the enterprise but also need to be able to influence the investment decisions of investors.

Therefore, financial statements must present information honestly and objectively, reflecting the financial situation of the enterprise at the time of reporting.

The objective of financial reporting is to provide reliable information to support the decisions of users. The reports should permit comparisons between different entities and accounting periods, and should clearly disclose information that is material to the economic decisions of users.

Information in the report must be verified to ensure accuracy and to accurately reflect economic phenomena.

In particular, financial information needs to be presented clearly and concisely for easy understanding, and must be provided promptly to support effective investment decisions.

According to Ms. Thuy, a business applying IFRS will be more transparent about its debts and assets, thereby helping investors accurately assess risks and profit potential before making investment decisions.

When liabilities and assets are presented clearly and in detail according to international standards, investors will have a comprehensive and honest view of the financial situation of the enterprise.

Investors can easily compare these financial indicators with other businesses in the same industry or region, thereby making smarter and more effective investment decisions.

“This transparency not only helps investors feel more confident but also increases the reputation of businesses in the financial market, attracting more investment capital,” Ms. Thuy emphasized.

Ms. Thuy said that in reality, many accountants are confused and have difficulty in preparing reports according to standards for many reasons, for example, accountants lack knowledge and experience, or businesses are having difficulty adjusting accounting processes, high training and implementation costs, etc.

“This is the reason why it is necessary to open specialized training courses on IFRS to help accountants grasp and apply these standards correctly. Specialized training on IFRS is an urgent need for accountants to grasp and apply these standards correctly in practice. Training courses not only provide theoretical knowledge but also delve into real-life situations, helping accountants understand and be more confident in preparing financial statements according to IFRS,” said Ms. Thuy.

In addition, according to Ms. Thuy, being prepared for IFRS will help businesses access international markets more easily. Some businesses have plans to continue training employees, improve processes and financial reporting systems to maximize the benefits that IFRS brings.