Sacombank – the second customer to sign contract to deploy FPT IS’ IFRS 9
On November 24, FPT Information System Corporation (FPT IS), Ernst&Young Vietnam Co., Ltd. (EY), and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) have signed a contract to implement International Financial Reporting Standards 9 system (IFRS 9). The event marks an important milestone to streamline the bank’s financial processes, creating favorable conditions to conduct business performance assessment and risk management in accordance with international practices.
After Vietcombank, Sacombank is the second customer to deploy IFRS 9. Accordingly, the project will be implemented in 3 phases: Analysis of current situation and gap assessment followed by detailed implementation roadmap; Actual implementation and IT system deployment; Post-implementation validation and creation of complete IFRS report.
FPT IS, Sacombank and EY sign the contract.
According to roadmap of a project on adopting financial reporting standards issued by the Ministry of Finance according to Decision 345/QD-BTC dated March 16, 2020, from 2025, companies are required to apply international standards – IFRS – for financial statements. IFRS 9 is one of the international financial reporting standards issued by International Accounting Standards Board (IASB) to replace the old standard IAS39 from 2014 and has officially taken into effect since January 1, 2018.
IFRS 9 system, developed by FPT IS in collaboration with EY, offers high compatibility with business data and requirements in Vietnam, helping banks and financial institutions calculate factors required by IFRS 9 despite a large range of calculation, as well as the availability of report templates aligned with international standards, making the work of accounting easier.
Adopting IFRS 9, Sacombank will see positive changes in credit risk management model, strengthened capabilities in governance and control of accounting processes, as well as closer coordination between risk and financial functions. By the time IFRS becomes mandatory for the entire financial-banking industry, Sacombank should already be one step ahead as when the project completes , Sacombank will be one of the banks in Vietnam pioneering to adopt IFRS 9 standard.
Mr. Ha Van Trung, Deputy General Director of Sacombank cum Director of the Project, says: “Adopting IFRS 9 will enhance transparency and accuracy of financial statements thereby protecting investors’ interests. The project will help Sacombank meet IFRS’ requirements on recording and accounting items of financial statements according to the nature instead of the form or name of transaction, thereby enhancing consistency in analysis, evaluation of financial statements of Vietnamese companies compared to others in the region and the world”.
Mr. Ha Van Trung, Deputy General Director of Sacombank cum Director of the Project, says that adopting IFRS 9 will enhance transparency and accuracy of financial statements.
“A financial report compliant with IFRS is an important criterion to assess banks’ business efficiency and risk management in accordance with international practices. Meanwhile, this is also Sacombank’s strategic move to adopt Basel, IFRS and conduct comprehensive transformation, and a solid foundation to ensure secure, efficient, and sustainable operation for Sacombank”, also said Mr. Trung.
Speaking at the event, Mr. Duong Dung Trieu, Chairman of FPT IS, emphasizes: “The implementation of IFRS 9 at Sacombank marks an important milestone to streamline the bank’s financial processes. With EY’s outstanding consulting competence, FPT IS’s in-depth knowledge and experience in banking and finance industry, and Sacombank’s governance model all combined, we believe the project will create a decent foundation for Sacombank to proceed and complete the bank’s competency framework. The project will create favorable conditions for foreign investors to assess transparency in information disclosure, efficiency in business and risk management, as well as access low-cost capital sources from international financial institutions”.
Mr. Duong Dung Trieu, Chairman of FPT IS, emphasizes that the project marks an important milestone to streamline Sacombank’s financial processes.
With nearly three decades accompanying the finance and banking industry, FPT IS is confident to fully understand and comprehensively address Sacombank’s problems using specialized solutions compliant with international standards and regulations of the State Bank of Vietnam.
