The implementation roadmap of IFRS 9 at commercial banks in Vietnam

International Financial Reporting Standard on Financial Instruments (IFRS 9) is to replace International Accounting Standard 39 on Financial Instruments (IAS 39). The main content of the IFRS 9 is about an expected credit loss (ECL) model. Accordingly, banks which are subjected to credit risk will have to hold provisions for expected future losses on all credit exposures, as opposed to the IAS 39 standard of holding provisions only for assets that have been classified as impaired. The IFRS 9 will help Vietnamese banks better manage risks and meet international requirements. The implementation of the IFRS 9 was officially announced by the Ministry of Finance in Decision No. 345/QD-BTC on March 16, 2020. This paper discusses the implementation roadmap of the IFRS 9 at commercial banks in Vietnam.