The Comparative Study of Financial Statements and Disclosure System for Financial Statements between Vietnam and Korea

[Purpose]The purpose is to compare Vietnam and Korea’s financial statements and disclosure systems and then describe the differences between Korea and Vietnam. [Methodology]In order to compare the financial statements and the disclosure system for financial statements of Vietnam and Korea, this study provided an overview about guidelines, types of financial statements, disclosure deadline, disclosure methods, etc. [Findings]Through the comparison, the main differences in the financial statements of the two countries are first, Vietnam’s companies must prepare financial statements even if it is not a going concern. Second, Vietnam does not have a separate statement of changes in equity and the statement of changes in equity must be a part of the footnote. Third, the code for each bookkeeping account must also be indicated in the form of all financial statements in Vietnam, but in Korea there is no code regulation in the financial statements. [Implications]This study is meaningful in that it directly compared and presented the difference between the accounting standards (systems) in Vietnam and Korea, and it is thought that using this, Korean companies in Vietnam can use useful accounting information. In addition, understanding the difference in accounting standards between Vietnam and Korea is expected to help each country invest with each other.