Content requiring translation in foreign-language accounting documents.
Based on Clause 5, Article 5 of Decree 174/2016/ND-CP detailing some provisions of the Accounting Law, which includes regulations on the content that needs to be translated for foreign-language accounting documents as follows:
– Accounting documents written in a foreign language, when used for recording accounting entries and preparing financial statements in Vietnam, must be... Translate the main content. As stipulated in Clause 1, Article 16 of the Accounting Law, the accounting unit is responsible for the accuracy and completeness of the content of accounting documents translated from foreign languages into Vietnamese. The Vietnamese translation must be attached to the original document in the foreign language.
First, we need to review it. Definition of Accounting Documents as stipulated in Clause 3, Article 3 of the Accounting Law 2015:
– Accounting documents are papers and information carriers that reflect economic and financial transactions that have occurred and been completed, serving as the basis for recording in accounting books.
Clause 1, Article 16 of the 2015 Accounting Law stipulates regarding Contents required for Accounting Documents:
– Accounting documents must contain the following essential information:
a) Name and number of the accounting document;
b) Date, month, and year of creation of the accounting document;
c) Name and address of the agency, organization, unit, or individual preparing the accounting document;
d) Name and address of the agency, organization, unit, or individual receiving the accounting documents;
e) The content of economic and financial transactions that have occurred;
f) The quantity, unit price, and total amount of economic and financial transactions are recorded in numbers; the total amount of accounting documents used for receiving and disbursing money is recorded in both numbers and words;
g) Signatures, full names of the person who prepared, approved, and other persons involved in the accounting document.
Furthermore, Clause 1, Article 20 of the 2015 Accounting Law stipulates: "An invoice is an accounting document issued by organizations and individuals selling goods or providing services in accordance with the law." Therefore, based on import and export and foreign trade operations, the following can be identified: Invoices generated when buying and selling with foreign businesses. These are also accounting documents as prescribed by law.
Documents accompanying accounting vouchers in foreign languages, such as contracts, payment vouchers, investment project documents, final settlement reports, and other related documents of the accounting unit, are not required to be translated into Vietnamese unless requested by a competent State agency.
Therefore, when preparing financial statements or accounting for taxes, businesses are required to translate foreign-language invoices into Vietnamese, including the main contents stipulated in Clause 1, Article 16 of the 2015 Accounting Law, and must attach the original foreign-language copy. Businesses need to compare this with the regulations in this article to comply with the law…https://www.expertis.vn
