all businesses operating in Vietnam are obliged to conform to VAS, stakeholders
should be aware of the unique and fundamental characteristics of VAS to assess
the returns on their investments

can be seen from the comparison that Kesko includes all essential information
throughout their financial statements. The future assumptions for estimates are
clearly expressed through various analyses such as goodwill. These analyses
create a predictive value, which could significantly support global
stakeholders to make their decisions. In addition, financial statements
prepared in accordance with IFRS show confirmatory value where previous
assumptions or estimates are compared to the actual figures. In particular, Kesko,
provides their estimates for the economic benefits of PPE allowing for the comparison
with the figures achieved in the actual period. VAS does not require the
disclosure of such assumptions about the future where no such estimates are
presented throughout the Kihn Do statements. For this reason, predictive value
is not attainted. As such, this difference may cause major issues as statements
compiled under VAS offer a limited insight into the future prospects of
Vietnamese businesses, this information is essential from the perspective of
global investors as it allows them to follow trends and assess the returns on
their potential investments.

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characteristic is faithful representation, where completeness, free from errors
and neutrality are the three components to determine whether financial
statements are faithful. For Kesko, the accounting treatments applied are
clearly explained. In addition, no significant mistakes or bias has been
identified. Such financial statements achieve faithfulness. In terms of Kihn
Do, despite fair value being briefly defined under VAS 11, there is no guidance
for measuring fair value, as compared to IFRS 13. Therefore, in terms of completeness,
the Vietnamese firms do not achieve faithful representation. From the
perspective of global investors, although desirable, a lack of this
characteristic may not cause major issues due to the limitations of inherent
uncertainties, estimates and assumptions, where it does not necessarily tell
the whole story. Accordingly, financial information may not always be entirely
free from error. Instead verifiability is likely to be an essential concept,
where investors are looking to assess the trustworthiness of the financial
statements, thus focusing on the evidence supporting the financial information
provided in order to assess the viability of business

discussed above, IFRS companies’ financial statements achieve relevance,
faithfulness and comparability. Such achievements could support global
stakeholders to understand what the statements purport to represent in a simpler
and logical way. In addition, all reports are composed using native English.
IFRS statements are successful in providing understandable financial statements
to their global stakeholders. Meanwhile, VAS financial statements contain
information that is not relevant, where there is a lack of information, such as
the way to measure fair value. Consequently, faithfulness is not achieved. It
is apparent that stakeholders are not easily able to comprehend due to
irrelevant as well as incomplete information. As a result, understandability of
such Vietnamese statements is not highly evaluated. This difference is likely
to case a major issue for global stakeholders as without this attribute, the
statements are rendered useless as stakeholders will not be able make
judgements based on the information presented.

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