If your group has a parent company in Australia, New Zealand or Singapore and one or more operating subsidiaries in Vietnam, you will sooner or later need a consolidated financial statements audit in Vietnam. This guide explains what that audit covers, how it differs from auditing a single entity, the documents to prepare, typical timing, and how the Vietnamese framework compares with your home market.
What consolidated financial statements mean in Vietnam
Consolidated financial statements present the financial position, performance and cash flows of a parent company and its subsidiaries as one economic entity. Transactions within the group, such as intercompany loans, sales and balances, are eliminated so that revenue and assets are not counted twice.
The practical point is that a parent's own accounts can look healthy while a subsidiary carries significant debt. The consolidated view shows the whole group's position, which is what banks, investors and counterparties usually want to see.
When a consolidated audit is needed in Vietnam
A parent that controls a subsidiary, usually through majority voting rights or the power to direct its financial and operating policies, is generally expected to prepare consolidated accounts. Many groups also commission a group audit voluntarily, for example when:
- the group is arranging bank finance, a capital raising, a sale or an acquisition, and lenders or investors want a verified group position;
- the parent reports to an overseas head office under group reporting deadlines;
- intercompany balances have grown and need reconciling before the year-end close.
Confirm the current obligations with your adviser before planning the year, as thresholds and exemptions can change.
The Vietnam legal and standards framework
Group reporting in Vietnam follows Vietnamese accounting standards, and the audit follows Vietnamese Standards on Auditing (VSA). VSA 600 deals specifically with group audits. The group engagement team is responsible for the overall opinion and coordinates with auditors of the subsidiaries to gather enough evidence.
The Vietnamese accounting basis is not the same as IFRS, which is why reconciliation matters for groups that report to a head office in Australia, New Zealand or Singapore.
How a group audit works at DAVA
- Scoping: we map the group structure, ownership percentages and which entities are significant enough for full audit work.
- Entity files: the parent and each subsidiary provide separate statements, trial balances and supporting ledgers.
- Group planning: we identify group-wide risk areas and allocate work to each entity team.
- Intercompany testing: we test loans, sales, dividends and balances between group members and confirm they eliminate correctly.
- Consolidation entries: we review goodwill, non-controlling interests and foreign currency translation where relevant.
- Reporting: we discuss findings with management and then issue the audit report.
Typical timing for a group audit in Vietnam
Timing depends on the number of entities, the volume of intercompany transactions, the number of currencies involved and how quickly the group responds to requests. A group with a few well-kept subsidiaries moves much faster than one with entities spread across several provinces. Preparing early avoids a year-end rush.
Documents to prepare
- An up-to-date ownership chart showing percentages and voting rights.
- Separate financial statements and trial balances for the parent and each subsidiary.
- Intercompany reconciliation schedules, with supporting contracts and invoices.
- Records of dividends, capital contributions and share transfers during the year.
- Goodwill and non-controlling interest calculations, where applicable.
- Board or shareholder minutes that affect the group.
Fees and cost drivers for a Vietnam group audit
Fees depend on the size and complexity of the group, including the number of entities, the volume of intercompany transactions and currency exposure. A group audit needs proper scoping, so we recommend a conversation before any quote. Fees vary; request a quote, and the initial consultation is free.
Common scenarios for foreign groups in Vietnam
Head office wants reporting under an international standard
Many groups need their consolidated figures to meet the reporting standard used at head office, whether that is AASB, NZ IFRS or SFRS(I). Vietnamese accounts are prepared under VAS, so the two sets of numbers can differ. Identify those differences early, usually during the first half of the year, and agree on a reconciliation schedule with your auditor. Waiting until December to discover a large gap is the most common source of delay.
A subsidiary holds significant foreign currency balances
Exchange differences matter when a Vietnamese subsidiary holds loans or receivables in US dollars or another foreign currency and the parent reports in Australian dollars, New Zealand dollars or Singapore dollars. Document the exchange rates used and the translation method, and keep the support for every rate applied.
Intercompany balances do not agree
Balances between the parent and a subsidiary often differ because the two entities record transactions on different dates or in different currencies. Prepare a reconciliation at each quarter-end. If the difference is explained and documented, the consolidation adjustment is straightforward; if it is not, the audit becomes slower and more expensive.
Acquisition or restructuring during the year
When a company is acquired, merged or restructured during the year, the group needs a clear record of the acquisition date, the consideration paid and the fair value of net assets acquired. Auditors will test these figures closely because they drive goodwill and the consolidation entries.
Vietnam vs Australia, New Zealand and Singapore
| Criteria | Vietnam | Australia | New Zealand | Singapore |
|---|---|---|---|---|
| Who signs the audit report | Licensed Vietnamese audit firm and auditor | Registered company auditor, regulated by ASIC | Licensed auditor, overseen by the FMA | Public accountant registered with ACRA |
| Regulator and licensing | Ministry of Finance oversees audit licensing | ASIC | FMA, which oversees licensed auditors | ACRA |
| Audit standards | VSA, including VSA 600 for group audits | Australian auditing standards, including group audit requirements | New Zealand auditing and assurance standards | Singapore standards on auditing |
| Consolidation standard | Vietnamese accounting standards (VAS) | AASB 10 | NZ IFRS 10 | SFRS(I) 10 |
| Fees and timing | Varies; request a quote | Varies; request a quote | Varies; request a quote | Varies; request a quote |
| Key legal difference | Foreign ownership conditions apply in some sectors | Large proprietary companies must be audited unless ASIC relief applies | Overseas auditors must be licensed and registered by the FMA to act on NZ issuer audits | Private companies may be exempt from audit, subject to conditions |
How DAVA supports foreign companies and expats in Vietnam
DAVA works with foreign-invested groups, expatriate owners and the advisers who support them, including audit and legal teams in Australia, New Zealand and Singapore. We have offices in Ho Chi Minh City, Hanoi and Da Nang, and can inspect records on site where needed. We have more than 15 years of experience valuing property, businesses and machinery, and our licensed valuers understand how assets and liabilities sit within group accounts.
Our team can work with you in English; documents can be prepared bilingually.
For Australian clients, you can reach us on WhatsApp at +61 451 710 342 (via Qualified AU Pty Ltd). For all other enquiries, email voan.sgg@gmail.com.
