| THE FINANCIAL | SOCIAL REPUBLIC OF VIETNAM Independence - Freedom - Happiness |
| Number: 99 / 2025 / TT-BTC | Hanoi, date 27 month 10 year 2025 |
CIRCULARS
GUIDELINES FOR BUSINESS ACCOUNTING SYSTEM
Based on the Accounting Law dated November 20, 2015;
Based on the Law amending and supplementing a number of articles of the Law on Securities, the Law on Accounting, the Law on Independent Auditing, the Law on State Budget, the Law on Management and Use of Public Assets, the Law on Tax Management, the Law on Personal Income Tax, the Law on National Reserves, and the Law on Handling Administrative Violations dated November 29, 2024;
Pursuant to the Decree No. 29 / 2025 / ND-CP dated 24 / 02 / 2025 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
Based on Decree No. 166/2025/ND-CP dated June 30, 2025 of the Government on amending and supplementing a number of articles of Decree No. 29/2025/ND-CP dated February 24, 2025 of the Government stipulating the functions, tasks, powers and organizational structure of the Ministry of Finance;
As requested by the Director of the Department of Accounting and Auditing Management and Supervision;
The Minister of Finance issued a Circular guiding the Accounting System for Enterprises.
Chapter I
GENERAL RULES
Article 1. Scope
This circular provides guidance on accounting documents, accounting accounts, accounting entries, and the preparation and presentation of financial statements for enterprises. The determination of an enterprise's tax obligations to the State budget is carried out in accordance with tax laws.
Article 2. Subject of application
1. This circular provides accounting guidance applicable to businesses in all sectors and economic components.
2. Credit institutions and branches of foreign banks shall implement accounting systems or legal regulations on accounting in accordance with the guidance of the State Bank of Vietnam.
Article 3. Internal governance and control
1. The creation, execution, management, and control of economic transactions arising from enterprises must comply with the provisions of the law and relevant policies and mechanisms.
2. Enterprises are responsible for developing their own internal governance regulations (or equivalent documents) and organizing internal control to clearly define the rights, obligations, and responsibilities of departments and individuals involved in the creation, execution, management, and control of economic transactions arising within the enterprise, ensuring compliance with enterprise law and relevant laws.
Article 4. Currency in accounting
1. The "accounting currency" is the Vietnamese Dong (national symbol "đ"; international symbol "VND") used for recording accounting entries, preparing and presenting the financial statements of an enterprise. If an enterprise primarily receives and disburses foreign currency and meets the criteria specified in Clauses 2, 3, and 4 of this Article, it may choose one foreign currency as its accounting currency for recording accounting entries and will be legally responsible for that choice.
2. Businesses use the following factors to determine the currency unit in accounting:
a) The currency that primarily influences the prices of goods and services, and is typically the currency used for pricing goods and services and for payment;
b) The currency that primarily affects labor costs, material costs, and other production and business costs, and is typically the currency used to pay for those costs.
3. If, based on the factors in Clause 2 of this Article, the enterprise has not yet determined the accounting currency, the following factors shall also be considered as a basis for determining the enterprise's accounting currency:
a) The currency used to raise financial resources (the currency used when issuing debt instruments, equity instruments, etc.);
b) The currency unit is regularly obtained from business activities and used for storage.
4. The currency in accounting reflects transactions, events, and conditions related to the business's operations. Once the accounting currency is determined, the business is not allowed to change it, unless there is a significant change in management and business operations that leads to material changes in those transactions, events, and conditions.
Article 5. Changes in accounting currency units
1. Principles for changing currency units in accounting
When there are significant changes in management and business operations that result in the accounting currency used by the enterprise no longer satisfying the criteria specified in Clauses 2, 3, and 4 of Article 4 of this Circular, the enterprise may change the accounting currency, and this change can only be made at the beginning of a new accounting period.
2. Principles for preparing financial statements when changing the currency unit in accounting.
a) In the first accounting period after the change, the enterprise shall convert the balances of items in the accounting books and the Statement of Financial Position to the new accounting currency using the average transfer buying and selling exchange rate (which is the average of the transfer buying and selling rates) of the commercial bank where the enterprise regularly conducts transactions (the commercial bank with which the enterprise has a higher frequency or value of transactions than other banks) on the date of the change in accounting currency.
b) For comparative information (previous period column) on the Income Statement and Cash Flow Statement, the enterprise shall apply the average buying and selling exchange rate of the commercial bank where the enterprise regularly conducts transactions in the period immediately preceding the period of change.
c) Enterprises must disclose in the Notes to the Financial Statements the reasons for changing the accounting currency and the impact on the Financial Statements resulting from the change in accounting currency.
Article 6. Accounting procedures when enterprises choose a currency other than the Vietnamese Dong for accounting purposes.
1. The legally binding financial statements that businesses must disclose to the public and submit to competent authorities in Vietnam are those presented in Vietnamese Dong. Therefore, businesses must convert their financial statements from the accounting currency to Vietnamese Dong according to the instructions in Clause 3 of this Article, unless otherwise stipulated by law.
2. In cases where the law stipulates that the financial statements of an enterprise must be audited by an independent auditing organization, the audited financial statements are those presented in Vietnamese Dong.
3. Methods for converting financial statements prepared in foreign currency to Vietnamese Dong
a) When converting financial statements prepared in foreign currency to Vietnamese Dong, enterprises must convert the items in the financial statements according to the following principles:
– Assets and liabilities are converted into Vietnamese Dong using the average buying and selling exchange rate of the commercial bank where the enterprise regularly conducts transactions at the end of the accounting period;
– Equity capital (owner's contributed capital, capital surplus, other capital, convertible bond options) is converted into Vietnamese Dong at the actual exchange rate on the date of capital contribution;
– The difference from the asset revaluation is converted into Vietnamese Dong at the actual exchange rate on the revaluation date;
– Undistributed after-tax profits and funds derived from undistributed after-tax profits arising in each period shall be converted into Vietnamese Dong by calculating according to the items in the Statement of Income. The remaining undistributed after-tax profits must be converted into Vietnamese Dong at the book exchange rate of the undistributed after-tax profit item;
– Items in the Statement of Income and the Statement of Cash Flows are converted into Vietnamese Dong at the actual exchange rate at the time the transaction occurs. If the average exchange rate for the accounting period is approximately equal to the actual exchange rate at the time the transaction occurs (the difference does not exceed the spot exchange rate band as stipulated by the State Bank of Vietnam), then the average exchange rate for the accounting period may be applied (if chosen).
b) Accounting method for exchange rate differences arising from the conversion of financial statements prepared in foreign currencies into Vietnamese Dong.
Exchange rate differences arising from the conversion of financial statements prepared in foreign currency into Vietnamese Dong are recorded under the "Exchange rate differences" item in the equity section of the Statement of Financial Position.
c) When converting financial statements prepared in foreign currency to Vietnamese Dong, enterprises must clearly state in the Notes to the Financial Statements the effects arising from the conversion of the financial statements from foreign currency to Vietnamese Dong on the financial statements.
Article 7. Organization of the accounting system and accounting work at units affiliated with the enterprise.
1. A subsidiary unit is a dependent unit as defined by enterprise law.
2. Enterprises are responsible for organizing their accounting system and have the right to decide on accounting practices for their subordinate units in accordance with the characteristics of their production and business operations, the management requirements of their units, and without violating the provisions of the law.
3. The organization of the accounting system and accounting practices at the enterprise's subsidiary units are carried out as follows:
a) Enterprises have the right to delegate to their subsidiaries the authority to record capital provided by the enterprise as liabilities or equity, and to record or not record revenue and cost of goods sold when products, goods, and services are transferred between internal stages, regardless of the form of accounting documents (invoices or internal transfer documents), in accordance with the model and management requirements of the enterprise's production and business activities;
b) Enterprises have the right to delegate to their subsidiaries whether or not to prepare financial statements. However, when submitting or publicly disclosing financial statements to competent authorities as required by regulations, the enterprise's financial statements must include financial information from both the head office and its subsidiaries, regardless of whether or not the enterprise has delegated the preparation of financial statements to its subsidiaries.
Chapter II
ACCOUNTING DOCUMENTS
Article 8. General regulations on accounting documents
Accounting documents of enterprises must be prepared in accordance with the provisions of the Accounting Law, guiding documents of the Accounting Law, and any amendments, supplements, or replacements.
Article 9. Accounting document forms and forms system
1. Businesses should refer to and apply the accounting document system forms in Appendix I issued with this Circular.
2. In cases where it is necessary to suit the characteristics of production and business operations and management requirements, enterprises may design additional or modify accounting document forms compared to the forms guided in Appendix I issued with this Circular. When designing additional or modified accounting document forms, enterprises must ensure compliance with the provisions of Article 16 of the Accounting Law and must fully, promptly, truthfully, transparently, and easily verifyable and verifiable information about the assets and capital of the enterprise.
When designing or modifying accounting forms and documents, businesses are responsible for issuing accounting regulations (or equivalent documents) regarding the modifications and additions to serve as a basis for implementation. The regulations must clearly state the necessity of the modifications and additions and the business's legal responsibility for the modified and added contents.
If the enterprise does not design or modify any additional accounting document forms, it shall apply the accounting document system guided in Appendix I issued with this Circular.
3. If a business generates documents that are subject to regulation by other laws, the accounting documents must comply with the provisions of those laws.
Article 10. Preparation, signing and control of accounting documents
1. All economic and financial transactions arising from the business's operations must be documented with accounting vouchers. Each accounting voucher is prepared only once for each economic and financial transaction.
2. The preparation and signing of accounting documents shall be carried out in accordance with the provisions of the Accounting Law, guiding documents for the Accounting Law, the guidance in this Circular, and any amendments, supplements, or replacements.
3. The hierarchical signing of accounting documents within a business must comply with legal regulations, management requirements, and internal governance rules to ensure strict control and security of the business's assets and capital, and to determine the responsibility of the individuals involved.
4. The chief accountant (or a person authorized by the chief accountant) is not allowed to sign accounting documents under the "authorization" of a manager or executive of the enterprise, except where otherwise provided by law.
Chapter III
ACCOUNTING ACCOUNTS
Article 11. Accounting Account System
1. Enterprises shall apply the accounting chart of accounts in Appendix II issued with this Circular to record accounting entries for economic transactions arising within the enterprise.
2. In order to suit the characteristics of production and business activities and the management requirements of the unit, enterprises may amend or supplement the names, numbers, structure, and content of accounting accounts as guided in Appendix II issued with this Circular. The amendments or supplements must ensure the classification and systematization of transactions according to their economic content, avoid duplication of subjects, comply with prescribed accounting principles, and must not change or affect the indicators and information presented in the Financial Statements.
When amending or supplementing the names, numbers, structure, and content of accounting accounts, enterprises are responsible for issuing Accounting Regulations (or equivalent documents) regarding the amendments or supplements to serve as the basis for implementation. The Regulations must clearly state the necessity of the amendments or supplements and the enterprise's legal responsibility for the amended or supplemented contents.
If the enterprise does not amend or supplement the names, numbers, structure, and content of the accounting accounts, the accounting account system guided in Appendix II issued with this Circular shall apply.
3. This Circular only provides guidance on the content and accounting methods for some key economic transactions. In cases where enterprises have economic transactions not covered by this Circular, they shall base their accounting practices on the content and nature of the economic transaction, the provisions of the Accounting Law, guiding documents for the Accounting Law, Vietnamese Accounting Standards, and the guiding principles in this Circular.
Chapter IV
ACCOUNTING BOOK
Article 12. Accounting books
1. The accounting records of an enterprise must be maintained in accordance with the provisions of the Accounting Law, guiding documents for the Accounting Law, and any amendments, supplements, or replacements.
2. Businesses should refer to and apply the accounting ledger forms in Appendix III issued with this Circular.
In order to suit the characteristics of production and business operations and management requirements, enterprises may design additional or modified accounting ledger forms compared to the forms guided in Appendix III issued with this Circular. When designing additional or modified accounting ledger forms, enterprises must ensure compliance with the provisions of Clauses 1, 2, 3, and 4 of Article 24 of the Accounting Law and must fully, promptly, truthfully, transparently, and easily verifyable and verifiable information on the assets and capital of the enterprise.
When designing or modifying accounting forms, businesses are responsible for issuing accounting regulations (or equivalent documents) regarding the modifications and additions to serve as a basis for implementation. The regulations must clearly state the necessity of the modifications and additions and the business's legal responsibilities regarding the modified and added content.
If the enterprise does not design or modify the accounting ledger forms, it shall apply the accounting ledger forms guided in Appendix III issued with this Circular.
Article 13. Opening, recording, and closing accounting books
1. Opening the books: Accounting books must be opened at the beginning of the accounting year. For newly established businesses, accounting books must be opened from the date of establishment.
2. Bookkeeping: Businesses must base their accounting records on accounting documents in accordance with the Accounting Law and its amendments, supplements, or replacements. Accounting records must be kept promptly, clearly, and completely according to their contents. The information and data recorded in the accounting records must be accurate and truthful, consistent with the accounting documents.
3. Closing the books: Businesses must close their accounting books at the end of each accounting period to prepare financial statements and in other cases as prescribed by law.
Chapter V
FINANCIAL REPORT
Article 14. Purpose of Financial Statements
1. Financial statements are used to provide information about the financial position, business results, and cash flows of an enterprise, meeting the management requirements of the enterprise owner, competent authorities, and the needs of users of financial statements in making economic decisions. Financial statements must provide information about an enterprise regarding:
a) Assets;
b) Liabilities;
c) Equity capital;
d) Revenue, other income, production and business expenses, and other expenses;
d) Profit, loss, and distribution of business results;
e) Cash flows.
2. In addition to the information in Clause 1 of this Article, enterprises must also provide other information in the "Notes to the Financial Statements" to further explain the indicators reflected in the Financial Statements and the accounting policies applied to record economic transactions, prepare and present the enterprise's Financial Statements.
Article 15. Financial Reporting Period
1. Annual Financial Reporting Period: Businesses must prepare annual financial statements in accordance with the Accounting Law.
2. Interim Financial Reporting Period: Interim financial reports include quarterly financial statements (including the fourth quarter) and semi-annual financial statements (six-month financial statements).
3. Other Financial Reporting Periods
a) Businesses prepare financial statements for different accounting periods (e.g., monthly financial statements, etc.) as required by law, the parent company, or the owner.
b) Enterprises that are divided, merged, acquired, converted to a different type of business, dissolved, or declared bankrupt must prepare financial statements at the time of the division, merger, acquisition, conversion to a different type of business, dissolution, or bankruptcy in accordance with the law.
Article 16. Subjects and responsibilities for preparing financial statements
1. Entities responsible for preparing financial statements
Businesses in all sectors and economic components must prepare full annual financial statements as prescribed in Appendix IV attached to this Circular. The preparation of interim financial statements and financial statements for other accounting periods shall be carried out in accordance with relevant laws or the management requirements of the entity. In cases where relevant laws require a business to prepare interim financial statements but do not specify the type of interim financial statement, the business may choose to prepare interim financial statements in full or summarized form.
2. Enterprises with subsidiaries must consolidate the financial information of both the head office and the subsidiaries into the enterprise's financial statements, excluding all internal transactions between the head office and the subsidiaries or between the subsidiaries themselves. In this case, the head office and the subsidiaries of the enterprise are not required to...
Prepare financial statements for your entity, except as required by law.
3. The preparation and presentation of consolidated annual financial statements and consolidated interim financial statements shall comply with the provisions of the law on consolidated financial statements.
4. The preparation and signing of financial statements shall be carried out in accordance with the provisions of the Accounting Law, guiding documents of the Accounting Law, and any amendments, supplements, or replacements. If an enterprise hires an accounting service provider to prepare and present financial statements or to act as chief accountant, the section for preparer/chief accountant on the enterprise's financial statements must clearly state the professional accounting license number of the practitioner and the name of the accounting service provider as prescribed.
Article 17. Enterprise Financial Reporting System
1. The financial reporting system includes:
– Financial statement report;
– Business performance report;
– Cash flow statement;
– Explanatory notes to the financial statements;
2. Annual financial report:
a) Annual financial statements for businesses meeting the going concern assumption, including:
| Report on the financial situation | Form B 01 – DN |
| Report on business results | Form B 02 – DN |
| Cash flow statement | Form B 03 – DN |
| Notes to the Financial Statements | Form B 09 – DN |
b) Annual financial statements for businesses that do not meet the going concern assumption, including:
| Report on the financial situation | Form B 01 – DNKLT |
| Report on business results | Form B 02 – DNKLT |
| Cash flow statement | Form B 03 – DNKLT |
| Notes to the Financial Statements | Form B 09 – DNKLT |
3. Interim financial statements include:
a) Full interim financial statements, including:
| Mid-year financial report | Form B 01a – DN |
| Mid-year business performance report | Form B 02a – DN |
| Interim cash flow statement | Form B 03a – DN |
| Selected Financial Statement Notes | Form B 09a – DN |
b) Summary of interim financial statements, including:
| Mid-year financial report | Form B 01b – DN |
| Mid-year business performance report | Form B 02b – DN |
| Interim cash flow statement | Form B 03b – DN |
| Selected Financial Statement Notes | Form B 09a – DN |
4. The forms for the Annual Financial Statement and the Interim Financial Statement (full and summarized forms) are guided in Appendix IV issued with this Circular. Indicators without data are exempt from presentation in the Financial Statement; enterprises should proactively renumber them sequentially within each section, but the indicator "Code" must not be renumbered.
Article 18. Amendments and Supplements to Financial Statements
1. Enterprises shall apply the financial reporting system in Appendix IV issued with this Circular to prepare and present their financial statements.
In order to suit the characteristics of production and business operations and management requirements, enterprises may add indicators to the financial statements as guided in Appendix IV issued with this Circular. Such additions must comply with the provisions of Clauses 1 and 2, Article 29 of the Accounting Law and adhere to the principles for preparing and presenting financial statements as guided in this Circular. Enterprises must provide explanations in their financial statements regarding the added content compared to the financial statement template guided in Appendix IV issued with this Circular.
When adding items to the financial statements, businesses are responsible for issuing accounting regulations (or equivalent documents) regarding those additions to serve as a basis for implementation. The regulations must clearly state the necessity of the additions and the business's legal responsibility for the added content.
If the enterprise does not add any additional items to the financial statements, it shall use the financial statement form guided in Appendix IV issued with this Circular.
2. In cases where a business has specific characteristics that prevent it from adding or require modification of the financial statement indicators as guided in Appendix IV issued with this Circular, it shall report to the Ministry of Finance for guidance on preparing and presenting the financial statements.
Article 19. Requirements for information presented in Financial Statements
1. The information presented in the financial statements must fairly and accurately reflect the financial position, business results, cash flow, and other financial information of the enterprise. The information in the financial statements must be complete, objective, and free from errors.
– Information is considered complete when the financial statements include all the necessary information to help users understand the nature, form, and risks of the transactions and events. For some items, complete presentation also requires describing additional information about the quality, factors, and circumstances that may affect the quality and nature of the item.
– Objective information is information presented in financial statements that is unbiased, neutral, true to reality, not distorted or manipulated, and does not alter the impact of financial information in a way that is beneficial or detrimental to the users of the financial statements.
– A financial report is considered error-free if it contains no omissions, mistakes, or fraud in describing phenomena, selecting, applying, and providing reporting information. Error-free does not mean complete accuracy in all aspects. An estimate is considered error-free if the nature and limitations of the estimation process are clearly explained and described, and there are no errors in the selection of appropriate data during the estimation process.
2. Financial information must be relevant to help users of financial statements predict, analyze, and make economic decisions.
3. Financial information must be presented fully in all material respects. Information is considered material if its omission or misstatement could substantially misrepresent the financial statements, affecting the economic decisions of users of the financial statements. The degree of materiality depends on the size or nature, or both size and nature, of the omissions or misstatements assessed in the particular circumstances.
4. Information must be verifiable, timely, and easy to understand.
5. Financial information must be presented consistently and comparably across accounting periods and between different businesses. When a business changes its financial statement preparation and presentation principles from meeting the going concern assumption to not meeting the going concern assumption, or vice versa, it must present in the Notes to the Financial Statements the nature, figures, and reasons for the reclassification of figures and compare the indicators and items of the financial statements to ensure comparability with the current period (unless this is not possible).
Article 20. Principles for preparing and presenting financial statements of enterprises meeting the going concern assumption.
1. The preparation and presentation of financial statements must comply with the provisions of Vietnamese Accounting Standard No. 21 – Presentation of Financial Statements and other relevant Vietnamese Accounting Standards. Material information must be explained to help readers understand the true state of the enterprise's financial situation.
2. Financial statements must reflect the true economic nature of transactions and events rather than their legal form (substance over form).
3. Assets must not be recorded at a value higher than their recoverable value; liabilities must not be recorded at a value lower than the amount due.
4. Classification of assets and liabilities: Assets and liabilities on the Statement of Financial Position must be presented as short-term and long-term, with the items arranged in order of decreasing liquidity.
a) An asset is classified as short-term when it falls under one of the following categories:
(i) The enterprise expects to recover the asset or intends to sell or use it within a normal business cycle;
(ii) The enterprise holds that asset primarily for commercial purposes;
(iii) The enterprise expects to recover the assets within 12 months or less from the end of the accounting period;
(iv) Assets are cash or cash equivalents, unless such assets are prohibited from being exchanged or cannot be used to settle a liability due for more than 12 months from the end of the accounting period.
Assets that are not classified as short-term according to the above guidelines are classified as long-term assets.
b) A liability is classified as short-term when it falls under one of the following categories:
(i) The business expects to settle this liability within a normal business cycle;
(ii) The enterprise holds liabilities primarily for business purposes;
(iii) Liabilities due for payment within 12 months or less from the end of the accounting period;
(iv) An enterprise is not entitled to refuse its obligation to pay its liabilities (loans, borrowings, financial leases due, including cases where the liability will be paid by the enterprise through the issuance of equity instruments at the option of a counterparty) at any time within a period of 12 months or less from the end of the accounting period.
Liabilities (e.g., accounts payable to suppliers, employee salaries, and other operating expenses) that are part of working capital used in the normal course of business must be classified as short-term liabilities by the business, even if the business is obligated to pay these liabilities within more than 12 months from the end of the accounting period.
Liabilities that are not classified as short-term according to the above guidelines are classified as long-term liabilities.
For liabilities classified as short-term, if the following events occur between the end of the accounting period and the date of issuance of the financial statements, these events are considered subsequent events requiring no adjustment:
– Agreement to extend short-term debt repayment to long-term repayment;
– Remedy breaches of the agreement relating to long-term liabilities; and
– The creditor grants a grace period of at least 12 months after the end of the accounting period to remedy a breach of the agreement for long-term liabilities.
At the same time, businesses must explain in the Notes to the Financial Statements the events that occurred later, as required by regulations.
c) If an enterprise chooses to classify assets and liabilities when presenting its Statement of Financial Position according to the normal business cycle, it must disclose the expected value to be recovered or payable within a period exceeding 12 months for each asset and liability line item when these items include the expected value to be recovered or payable:
(i) 12 months or less from the end of the accounting period, and
(ii) more than 12 months from the end of the accounting period.
At the same time, the normal business cycle applied to classify a company's assets and liabilities is the same. For businesses whose normal business cycle cannot be clearly defined, the business cycle is still considered to be 12 months.
d) When preparing financial statements, enterprises must reclassify long-term assets and liabilities from the previous period into short-term assets and liabilities in the current period if, from the end of the accounting period, those assets or liabilities meet the conditions of being short-term assets or short-term liabilities as stipulated in points a and b of this clause, except for cases where reclassification is not permitted according to the guidance in this Circular.
5. Assets and liabilities must be presented separately. Businesses may only offset assets and liabilities when the assets and liabilities relate to the same subject matter, have a fast turnover, short maturity periods, and arise from transactions and events of the same type.
6. Revenue, income, and expenses directly related to generating such revenue and income must be presented in accordance with the matching principle and the principle of prudence. The Statement of Income and the Statement of Cash Flows reflect the revenue, income, expenses, and cash flows of the reporting period. If material errors are found in the financial statements of prior periods, they must be retrospectively adjusted as required.
7. If a business has subsidiaries, its financial statements must consolidate the financial information of both the head office and the subsidiaries. The balances of internal items in the Statement of Financial Position, and any unrealized revenues, expenses, profits, and losses arising from internal transactions must be excluded.
Article 21. Principles for preparing and presenting financial statements when changing the accounting period.
When changing the accounting period, for example, a business changing its accounting period from a calendar year to a different calendar year, the business must close its accounting books and prepare financial statements according to the following principles:
1. Changes to the accounting period must comply with the provisions of the Accounting Law. When changing the accounting year, enterprises must prepare separate financial statements for the period between the old and new accounting years.
2. For the Statement of Financial Position: The entire balance of assets, liabilities, and equity at the end of the accounting period prior to the conversion is recorded as the opening balance of the new accounting period and is presented in the "Beginning Balance" column.
3. For the Income Statement and Cash Flow Statement for the accounting period from the end of the previous accounting period to the time of the change in the accounting period: the data from the end of the previous accounting period to the time of the change in the accounting period is presented in the "Current Period" column. The "Previous Period" column presents the corresponding data from the previous accounting period or the data for 12 months in the financial statements of the immediately preceding fiscal year.
4. Businesses must clearly explain:
a) Reasons for changing the end date of the accounting year;
b) The corresponding figures for comparison are presented in the Statement of Income, the Statement of Cash Flows, and the relevant Notes to the Financial Statements. If the “Previous Period” figures in the Statement of Income and the Statement of Cash Flows for this period are for the 12 months of the immediately preceding fiscal year, the enterprise must disclose the incomparability between the information of the reporting period and the information of the comparative period as prescribed by Vietnamese Accounting Standard No. 21 – Presentation of Financial Statements.
Article 22. Principles for preparing and presenting financial statements when converting the type of business entity.
When changing the business type, enterprises must close their accounting books and prepare financial statements in accordance with the law. In the first accounting period after the change in business type, the enterprise must record accounting entries and present financial statements according to the following principles:
1. For accounting records reflecting assets, liabilities, and equity: The entire balance of assets, liabilities, and equity in the old enterprise's accounting records before the conversion is recorded as the opening balance in the new enterprise's accounting records.
2. For the Statement of Financial Position: The entire balance of assets, liabilities, and equity inherited from the old enterprise before the conversion is recorded as the opening balance of the new enterprise and is presented in the "Beginning Balance" column.
3. For the Statement of Income and the Statement of Cash Flows: Data from the time of conversion to the end of the first reporting period are presented in the “This Period” column. The “Previous Period” column presents cumulative data from the beginning of the reporting year to the time of conversion of the business type, and the enterprise must clearly explain the reason when the information of the reporting period cannot be compared with the information of the comparative period as prescribed by Vietnamese Accounting Standard No. 21 – Presentation of Financial Statements.
Article 23. Principles for preparing and presenting financial statements when dividing, separating, merging, or consolidating enterprises.
1. General principles
a) For cases involving business mergers
a1) When merging businesses, the businesses (the acquiring business and the merged business) must comply with the provisions of business law and other relevant laws.
a2) The determination of the net asset value that the acquiring enterprise receives from the merged enterprise is carried out as follows:
(i) In the case of a business merger transaction that satisfies the business activity as defined in Vietnamese Accounting Standard No. 11 – Business Combinations, and the merger is carried out between enterprises under common control, the acquiring enterprise shall record in its accounting books the assets and liabilities received from the merged enterprise at the book value shown on the separate financial statements of the merged enterprise at the time of the merger.
(ii) In cases where the merger transaction satisfies the business activities as defined in Vietnamese Accounting Standard No. 11 – Business Combinations, and the merger is carried out between enterprises not under common control, the acquiring enterprise shall recognize the assets and liabilities received from the merged enterprise using the purchase method as prescribed in Vietnamese Accounting Standard No. 11 – Business Combinations.
(iii) If the merger transaction does not satisfy the business activity as defined in Vietnamese Accounting Standard No. 11 – Business Combinations, the acquiring enterprise shall recognize the assets and liabilities received from the merged enterprise as the purchase of a group of assets or net assets.
a3) Determine the cost of executing the merger transaction.
(i) In cases where the acquiring enterprise uses investments in subsidiaries, joint ventures, associated companies, other investments, or makes additional payments or uses non-monetary assets such as inventory, fixed assets, investment properties, etc., or issues equity instruments to pay other investors when carrying out the merger transaction, the valuation of investments, non-monetary assets, or equity instruments issued by the acquiring enterprise shall be carried out as follows:
– In cases where the business merger transaction satisfies the business activities as defined in Vietnamese Accounting Standard No. 11 – Business Combinations: The valuation of non-monetary assets exchanged, liabilities incurred, and equity instruments issued to carry out the merger transaction shall be conducted as guided in Vietnamese Accounting Standard No. 11 – Business Combinations.
– In cases where the merger transaction does not satisfy the business activities as defined in Vietnamese Accounting Standard No. 11 – Business Combinations: The acquiring enterprise shall use the fair value of the assets and liabilities received at the date of the exchange as the preferred value to determine the payment value of non-monetary assets transferred or equity instruments issued for the merger transaction. If the fair value of the assets and liabilities received at the date of the exchange cannot be determined or is unreliable, the fair value of the assets transferred for the merger transaction shall be used, or a value that other evidence and calculations prove to be more reliable. Any difference (if any) between the value of issued shares and their par value shall be reflected in the capital surplus. Any difference (if any) between the fair value and the book value of inventory, fixed assets, investment properties, etc., is accounted for in the operating results of the period in the same way as the sale or exchange of these assets.
In cases where the price to be paid is determined collectively for multiple non-monetary assets being exchanged, based on the understanding of the parties at the date of the transaction, the acquiring entity determines the selling price for each asset being exchanged using a systematic method (such as allocation based on book value, fair value of the asset being exchanged at the date of exchange, etc.).
The parties must comply with relevant legal regulations in determining the value of non-monetary assets transferred for the purpose of carrying out a business merger transaction. Revaluation of the book value of non-monetary assets transferred for the purpose of carrying out a business merger transaction may only be carried out when there is solid and reliable evidence demonstrating that the market value of those non-monetary assets at the time of transfer differs from their book value. Parties involved in the business merger transaction and related parties shall be held legally responsible for intentionally misvaluing or incorrectly determining the value of non-monetary assets transferred for the purpose of carrying out the business merger transaction.
(ii) The acquiring entity must cease recognizing assets that it must transfer or disburse to carry out the merger transaction, such as investments in subsidiaries, joint ventures, associates, other investments, issuance of equity instruments, cash, non-monetary assets, or other benefits, etc., at their book value as shown in the acquiring entity's separate financial statements. This book value is determined by the original cost minus provisions for asset impairment or by the original cost minus accumulated depreciation of fixed assets and investment properties.
a4) Accounting principles for the difference between the cost of executing a merger transaction (the value of assets or benefits that the acquiring enterprise must spend or lose) and the net asset value received from the merged enterprise, in the case where the merger transaction satisfies business operations as defined in Vietnamese Accounting Standard No. 11 – Business Combinations:
(i) In the case of a business merger transaction carried out between parties under common control, the difference between the cost of carrying out the merger transaction and the book value of the net assets on the separate financial statements of the merged enterprise shall be fully accounted for in Account 4118 – Other Capital and periodically transferred to Account 421 – Undistributed After-Tax Profits in the accounting books of the acquiring enterprise for a period not exceeding 10 years, starting from the date of the business merger, using the straight-line method or other more reasonable method.
(ii) In cases where the merger transaction is carried out between parties not under common control, the difference between the cost of executing the merger transaction and the fair value of the net assets can be determined. được In the separate financial statements of the merged entity, these are accounted for as goodwill or badwill arising from the business combination transaction, in accordance with the guidance of Vietnamese Accounting Standard No. 11 – Business Combinations.
a5) In cases where a business merger involves internal transactions related to the purchase and sale of goods, services, fixed assets, etc., after receiving the net assets of the subsidiary, the parent company must eliminate these internal transactions before preparing and presenting the parent company's separate financial statements for the accounting period in which the business merger takes place.
a6) The determination of tax obligations related to internal transactions concerning the purchase and sale of goods, services, fixed assets, etc., during a business merger is carried out in accordance with tax laws. Deferred corporate income tax related to temporary differences between the net asset value and the tax base of the net asset (which may arise from unrealized profits/losses from internal transactions) is accounted for by the acquiring enterprise in accordance with Vietnamese Accounting Standard No. 17 – Corporate Income Tax.
a7) For business mergers not falling under the above-mentioned cases, the enterprise shall base its accounting on the principles stipulated in the Vietnamese Accounting Standards system, the guidelines in this Circular, and the nature of the merger transaction to carry out appropriate accounting.
b) For cases of business division, separation, or merger
b1) When dividing, separating, or merging enterprises, the enterprises (the new enterprises and the enterprises being divided, separated, or merged) must comply with the provisions of enterprise law and other relevant laws.
b2) The valuation of net assets received by the new enterprise from the enterprise that has been divided, separated, or merged is carried out as follows:
(i) For the case of business mergers:
– In cases where the business combination transaction satisfies the business activities as defined in Vietnamese Accounting Standard No. 11 – Business Combinations, and the business combination is carried out between businesses under common control, the new business may record in its accounting books the assets and liabilities received from the merged business at the book value shown on the separate financial statements of the merged business at the time of the business combination.
– In cases where a business combination transaction satisfies the business activities as defined in Vietnamese Accounting Standard No. 11 – Business Combinations, and the business combination is carried out between businesses not under common control, the business entity shall recognize the assets and liabilities received from the merged entity using the purchase method as prescribed in Vietnamese Accounting Standard No. 11 – Business Combinations.
– In cases where a business combination transaction does not satisfy the definition of business operations as stipulated in Vietnamese Accounting Standard No. 11 – Business Combinations, the enterprise shall recognize the assets and liabilities received from the merged enterprise as the purchase of a group of assets or net assets.
(ii) In the case of business division or separation: The new business shall record in its accounting books the net asset value received from the divided or separated business at the book value shown in the separate financial statements of the divided or separated business at the time of the division or separation.
b3) In cases where new enterprises issue equity instruments to carry out business division, separation, or merger transactions, the new enterprise shall use the fair value of the assets and liabilities received on the exchange date as the preferred value to determine the fair value of the equity instrument, except in cases where the determination of the value of the issued equity instrument is carried out when calculating the cost of a business combination, in which case the enterprise shall follow the guidance in Vietnamese Accounting Standard No. 11 – Business Combinations. If the fair value of the assets and liabilities received on the exchange date cannot be determined or is unreliable, the fair value of the equity instrument shall be the listed price on the stock exchange. If the equity instrument does not have a listed price, the value that is more reliably supported by evidence and other calculations shall be used. The difference between the value of the issued shares and the par value of the shares shall be reflected in capital surplus.
b4) For business division, separation, or merger cases not falling under the above-mentioned cases, the business shall base its accounting on the principles stipulated in the Vietnamese Accounting Standards system, the guidelines in this Circular, and the nature of the business division, separation, or merger transaction to carry out appropriate accounting.
c) The division, separation, merger, or consolidation of enterprises within state-owned enterprises, if governed by regulations different from those stipulated in this Article, shall be carried out in accordance with the laws applicable to state-owned enterprises.
2. The accounting records and financial statements of the enterprises involved in the division, separation, merger, or acquisition of enterprises shall be carried out according to the following principles:
a) For accounting records reflecting assets, liabilities, and equity:
a1) The value of assets, liabilities, and equity received from the merged enterprise is recorded by the acquiring enterprise as a transaction occurring during the period in its accounting records. The opening balances of assets, liabilities, and equity in the acquiring enterprise's accounting records remain unchanged.
a2) The value of assets, liabilities, and equity received from the merged enterprise is recorded by the new enterprise as transactions occurring during the period in its accounting books. The opening balances of assets, liabilities, and equity in the new enterprise's accounting books contain no data.
a3) The value of assets, liabilities, and equity in the accounting books of the divided enterprise transferred to the new enterprise is recorded as a transaction in the accounting books of the new enterprise. The opening balances of assets, liabilities, and equity in the accounting books of the new enterprise will be blank.
a4) The value of assets, liabilities, and equity of the separated enterprise transferred to the new enterprise is recorded as a transaction in the new enterprise's accounting books. The opening balances of assets, liabilities, and equity in the new enterprise's accounting books are blank. The opening balances of assets, liabilities, and equity in the separated enterprise's accounting books remain unchanged.
b) Regarding the Statement of Financial Position:
b1) The value of assets, liabilities, and equity received from the merged enterprise will be aggregated by the acquiring enterprise and presented in the "Year-End Balance" column of the Statement of Financial Position. The "Beginning-of-Year Balance" column of the acquiring enterprise remains unchanged.
b2) The value of assets, liabilities, and equity received from the merged enterprise is aggregated by the new enterprise and presented in the "Year-End Balance" column of the Statement of Financial Position. The "Beginning-of-Year Balance" column of the new enterprise contains no data.
b3) The inherited asset, liability, and equity values of the split or separated enterprise are aggregated by the new enterprise and presented in the "Year-End Balance" column of the Statement of Financial Position. The "Beginning-of-Year Balance" column of the new enterprise contains no data. The "Beginning-of-Year Balance" column of the split enterprise remains unchanged.
c) For the Statement of Income and the Statement of Cash Flows:
c1) The acquiring enterprise shall only record and present the data of the merged enterprise in its Income Statement and Cash Flow Statement from the time of the merger to the end of the reporting period in the “This Year” column. The “Previous Year” column of the acquiring enterprise remains unchanged.
c2) The new enterprise only presents data from the time of the division, separation, or merger to the end of the first reporting period in the "This Year" column. The "Previous Year" column of the new enterprise contains no data. The separated enterprise no longer records and presents data of the separated enterprise from the time of the separation to the end of the reporting period.
Article 24. Principles for preparing and presenting financial statements when an enterprise does not meet the going concern assumption.
1. When preparing and presenting financial statements, enterprises must consider indications of non-continuing operations. An enterprise is deemed non-continuing if it anticipates dissolution or bankruptcy, or cessation of business operations, or significant reduction in scale of operations within 12 months or less from the end of the accounting period. Enterprises must disclose their going concern status when there are material uncertainties that could cast significant doubt on their ability to continue as a going concern.
2. In certain cases, a business is still considered a going concern and is therefore not required to prepare and present financial statements on the basis of not meeting the going concern assumption:
– Transforming the business structure, including the equitization of a state-owned enterprise into a joint-stock company;
– Businesses are divided, separated, merged, or acquired.
– The process of converting a business (subsidiary) into a subsidiary unit (branch) or vice versa.
3. Even if the going concern assumption is not met, the business must still prepare the following financial statements:
| The financial statement applies to businesses that do not meet the going concern assumption. | Form B 01 – DNKLT and presented according to a separate template. |
| The income statement applies to businesses that do not meet the going concern assumption. | Form B 02 – DNKLT is presented in a general format similar to that of a business meeting the going concern assumption. |
| The cash flow statement applies to businesses that do not meet the going concern assumption. | Form B 03 – DNKLT is presented in a general format similar to that of a business meeting the going concern assumption. |
| Notes to the financial statements applicable to businesses that do not meet the going concern assumption. | Form B 09 – DNKLT and presented according to a separate template. |
4. If the going concern assumption is no longer appropriate at the end of the accounting period, the enterprise must reclassify long-term assets and long-term liabilities into short-term assets and short-term liabilities, and must revalue all assets and liabilities, unless a third party inherits the rights to the assets or obligations to the liabilities at book value. The enterprise must record the revalued value in the accounting books before preparing the Statement of Financial Position.
5. Businesses are not required to revalue assets or liabilities if a third party inherits the rights to the assets or the obligations to the liabilities in certain specific cases as follows:
a) Each specific asset item is guaranteed and committed to be recovered by another party for the dissolved or bankrupt entity at its book value, and the recovery takes place before the entity officially ceases operations;
b) Each specific debt item is guaranteed or committed to payment by a third party for the dissolved or bankrupt entity, and the dissolved or bankrupt entity is only obligated to repay that third party at its book value.
6. The revaluation is carried out for each type of asset and liability at the end of the accounting period according to the following principles:
a) Regarding assets:
– Long-term inventory, biological assets, work-in-progress production costs, equipment, materials, and spare parts are valued and recorded at the lower of their original cost and net realizable value;
– Tangible fixed assets, intangible fixed assets, investment properties, and unfinished construction costs are valued and recorded at the lower of their remaining value and recoverable value (which is the liquidation price minus estimated liquidation costs). For leased fixed assets, if there is a mandatory repurchase clause, they are revalued and recorded similarly to the company's own fixed assets; if returned to the lessor, they are revalued and recorded based on the remaining lease debt payable to the lessor.
– Trading securities are valued and recorded at fair value;
– Investments held to maturity, receivables, investments in subsidiaries, joint ventures, associates and other entities are valued and recognized at the lower of their book value and recoverable value (market value minus estimated selling costs).
b) Regarding liabilities: If there is a written agreement between the parties regarding the amount payable, the reassessment will be based on the agreed amount. If there is no specific agreement, the following procedures will apply:
– Cash liabilities are revalued and recorded at the higher of the book value of the liability and the value of the early repayment as stipulated in the contract;
– Liabilities payable in the form of financial assets are revalued and recorded at the higher of the book value of the liability and the fair value of the financial asset.
– Inventory liabilities are revalued and recorded at the higher of the book value of the liability and the purchase price (plus directly related costs) or the cost of production of the inventory;
– Liabilities payable in the form of fixed assets are revalued and recorded at the higher of the book value of the liability and the purchase price (plus directly related costs) or the remaining value of the fixed asset.
c) Monetary items denominated in foreign currency shall be revalued at the average buying and selling exchange rate of the commercial bank where the enterprise regularly conducts transactions at the end of the accounting period, as usual. However, balances of demand deposits in foreign currency must be revalued at the average buying and selling exchange rate of the commercial bank where the enterprise maintains its demand deposit account.
7. Accounting methods for certain asset items when the business does not meet the going concern assumption:
a) Provisions for or assessments of asset losses are directly deducted from the asset's book value, and no provision is made in Account 229 – Provision for Asset Losses;
b) The calculation of depreciation or recognition of losses on fixed assets and investment properties is directly recorded as a reduction in the book value of the asset, and Account 214 – Depreciation of Fixed Assets is not used to reflect accumulated depreciation.
8. When the going concern assumption is no longer appropriate, the business must address the following financial issues:
– Make provisions for anticipated future losses to determine business results if the likelihood of such losses is relatively certain and the value of the losses can be reliably estimated; Recognize current obligations for payables even if complete documentation is not yet available (such as contractor's work acceptance report, etc.) but payment is certain;
– For cumulative asset revaluation differences belonging to the equity portion, these are transferred to other income (if a profit) or other expenses (if a loss);
– For exchange rate differences that are reflected cumulatively in the Statement of Financial Position, the enterprise transfers the entire amount to financial operating revenue (if a profit) or financial expenses (if a loss);
– Unallocated expenses are fully reduced and included in the related production and business expenses for the period, depending on the specific transaction, similar to the recognition method used by a going concern business during the period;
– The parent company ceases recognizing goodwill in the consolidated financial statements; any unallocated goodwill is immediately included in administrative expenses.
– The profit and loss differences arising from the revaluation of assets and liabilities, after offsetting them against the provisions already set aside, are recognized as financial operating revenue, other income, or financial expenses, or other expenses, depending on the specific item, similar to the recognition method used by going concern businesses.
9. When preparing financial statements, if the going concern assumption is no longer appropriate, the enterprise must provide detailed disclosures on its ability to generate cash and pay its liabilities, and its equity to shareholders. It must also reclassify the comparable figures in the financial statements of the first period in which the enterprise does not meet the going concern assumption (unless this is impossible) to ensure comparability with the reporting period, and must present the nature, figures, and reasons for the reclassification. If reclassification of the corresponding comparable figures is not possible, the enterprise must clearly explain the reasons for the incomparability between the information of the reporting period and the information of the comparable period, specifically as follows:
– The amount of money that can be recovered from the liquidation or sale of assets, and the collection of accounts receivable;
– The ability to pay debts in order of priority, such as the ability to repay debts to the State Budget, debts to employees, debts to loans, debts to suppliers, etc.;
– The ability to pay shareholders; for joint-stock companies, it is necessary to clearly disclose how much money each share will receive.
– The timeframe for settling accounts payable and equity;
– Reason for incomparability of information between the reporting period and the comparative period: In the previous period, the company prepared its financial statements based on the going concern assumption, but for the reporting period, the company anticipates dissolution, bankruptcy, cessation of business operations, or significant reduction in scale of operations. Therefore, the financial statements are presented based on the going concern assumption.
Article 25. Deadline for submitting Financial Statements
Businesses must submit their annual financial statements to the competent authority no later than 90 days after the end of the fiscal year.
The parent company or corporation shall prescribe the deadline for submitting the financial statements of its subsidiaries and affiliated units for consolidation or aggregation of financial statements in accordance with current legal regulations and the management requirements of the entity.
For businesses where relevant laws stipulate the submission of financial statements according to different accounting periods (quarterly financial statements, semi-annual financial statements, etc.), the deadline for submitting these financial statements shall be in accordance with the provisions of those relevant laws.
Article 26. Recipients of Financial Reports
1. The submission of a company's financial statements to the competent authority must be carried out in accordance with relevant laws and regulations.
2. For businesses that are legally required to have their financial statements audited, the audit report must be attached when submitting the financial statements to the competent authorities as required.
3. In cases where the enterprise's financial statements are stored in the National Information System on Enterprise Registration, the agencies receiving the enterprise's financial statements may request information about the enterprise's financial statements in accordance with the law.
Article 27. Disclosure of Financial Statements
1. Public disclosure of financial statements means that an enterprise publishes information about its financial statements in one or more forms of public disclosure as prescribed in Clause 3 of this Article, so that users such as owners, creditors, suppliers, investors, etc., can access the information on the enterprise's financial statements.
2. Subjects to be publicly disclosed
The entities authorized to disclose financial statements are those who are entitled to receive information about the company's financial statements as stipulated by the Enterprise Law and other relevant laws.
3. Forms of public disclosure
– Publication: This refers to the printing of a company's financial statements into a booklet to provide information to eligible recipients as required by corporate law and other relevant laws. The company must retain this publication as part of its accounting records.
– Written notification: This is a form of notification where a business sends a written notice, along with its financial statements, to the parties authorized to receive information on the disclosure of the business's financial statements as stipulated by the Enterprise Law and other relevant laws.
– Public posting: This refers to the method where a company's financial statements are publicly displayed at the company's headquarters to provide information to the parties authorized to receive the published financial statements, as stipulated by the Enterprise Law and other relevant laws.
– Website posting: This refers to the posting of a company's financial statements on the company's website, clearly stating the link to the financial statements.
– Other forms as prescribed by relevant laws.
4. The content and timeframe for public disclosure of financial statements shall comply with the provisions of the Accounting Law and its amendments, supplements, and replacements.
5. For businesses that are legally required to have their financial statements audited, the audit report must be attached when the financial statements are made public, as required by law.
Chapter VI
ORGANIZATION OF IMPLEMENTATION
Article 28. Regulations on the use of accounting software
1. Businesses may use accounting software to perform accounting tasks as prescribed in this Circular. The accounting software chosen by the business must meet at least the following professional and technical accounting requirements:
a) The accounting processes and operations established on the software must ensure compliance with accounting laws, tax laws, and other relevant laws, and must not alter the nature, principles, accounting methods, or information and data presented in accounting books and financial statements as prescribed.
b) The handling of accounting processes and related information and data must ensure accuracy, consistency, and avoid duplication. When making corrections, records of previously recorded entries in chronological order must be preserved.
c) Information and data on the accounting software must be secure and comply with legal regulations on information security and safety. The information system must be capable of warning or preventing intentional interference that alters information and data already recorded in the accounting books.
d) To provide complete and timely output information and data as required by competent authorities and data and information users.
d) Capable of connecting or ready to connect with relevant software when performing accounting tasks (electronic invoicing software, digital signatures, etc.).
e) Capable of being upgraded, modified, and supplemented to conform with changes in accounting, tax, and other relevant laws.
2. Business managers, chief accountants/accounting officers, and other relevant personnel are responsible for the accuracy and truthfulness of accounting information and data provided by the accounting software.
Article 29. Conversion of balances in accounting records
1. The business is converting the balances of the following accounts:
– Businesses will use the balances of detailed accounts 111, 112, 113, 121, 153, 154, 156, 211, 212, and 213 to transfer funds as appropriate to their management requirements (if any).
– Businesses that are capital contributors but not accounting parties for business cooperation contracts, if the business cooperation contract has not ended by the effective date of this Circular, shall use the detailed balance of Account 138 – Other receivables (details of the value of capital contributed to the non-co-controlled business cooperation contract) to transfer the balance to Account 2281 – Capital investment in other entities to suit the nature and position of the business in the business cooperation contract as guided in this Circular.
– Businesses should transfer the remaining costs for upgrading and renovating fixed assets to Account 2414 – Upgrading and renovating fixed assets, based on the details of Account 2413 – Major repairs of fixed assets.
– Businesses use the detailed credit balance of Account 338 – Other payables and accruals related to dividends and profits payable to transfer to Account 332 – Dividends and profits payable.
– Businesses use the balance of Account 441 – Capital for basic construction investment and the balance of Account 466 – Funds used to form fixed assets to transfer funds to Account 4118 – Other capital.
2. Other details reflected in related accounts that differ from this Circular must be adjusted in accordance with the provisions of this Circular.
Article 30. Transitional provisions
1. Businesses apply the following principles when there is a change in accounting policy:
a) In cases where an enterprise must change its accounting policies due to the initial application of legal regulations or Vietnamese Accounting Standards, or an accounting system that already has specific transition guidelines (applying retrospective, simple retrospective, or non-retrospective adjustment methods), it must follow those guidelines. Specifically:
– Retrospective or non-retrospective adjustments shall be made in accordance with the provisions of Vietnamese Accounting Standard No. 29 – Changes in Accounting Policies, Accounting Estimates and Errors.
– The simple retrospective adjustment method is a method that does not restate comparative figures from the first affected period, but instead calculates the cumulative impact on the first day of the accounting period in which the new accounting policy is first applied and adjusts the corresponding asset and liability items in retained earnings or other items in equity on the first day of the accounting period in which the new accounting policy is applied.
b) In cases where an enterprise must change its accounting policy due to the initial application of legal regulations or Vietnamese Accounting Standards, or an accounting system that does not require retrospective or simple retrospective adjustments, it may apply the non-retrospective adjustment method for that accounting policy.
c) If an enterprise voluntarily changes its accounting policy, the changes must be applied retrospectively.
2. For businesses that are investors purchasing bonds and incurring bond discounts or premiums, if the bonds have not yet reached their maturity date by the effective date of this Circular, the business may choose to apply the retrospective adjustment method or the simplified retrospective adjustment method as guided in Clause 1 of this Article to account for the discounts and premiums arising from the purchase of bonds in the first financial statement period applying this Circular.
3. In cases where an enterprise has exchange rate differences arising from converting the accounting currency from Vietnamese Dong to another accounting currency and vice versa, and these differences have been reflected in the credit or debit balance of Account 412 – Revaluation Differences of Assets and presented on the Balance Sheet, the credit or debit balance of Account 412 – Revaluation Differences of Assets shall be transferred to Account 421 – Undistributed After-Tax Profits (Account 4211). Simultaneously, the reasons and impacts on the Financial Statements must be clearly explained in the Notes to the Financial Statements.
4. In cases where an enterprise is currently making provisions for major repairs to fixed assets, but the major repairs have not been carried out when this Circular comes into effect, the enterprise shall not continue to make provisions for these major repairs. When the major repairs are carried out, the enterprise shall transfer the actual major repair costs incurred to the amount already provisioned. The difference between the amount already provisioned and the actual costs incurred shall be gradually allocated to production and business expenses in each period.
Article 31. Terms enforcement
1. This Circular shall take effect from January 1, 2026 and shall apply to fiscal years beginning on or after January 1, 2026. This Circular replaces Circular No. 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance guiding the accounting regime for enterprises (except for cases stipulated in Clause 2 of this Article), Circular No. 75/2015/TT-BTC dated May 18, 2015 of the Ministry of Finance amending and supplementing Article 128 of Circular No. 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance, Circular No. 53/2016/TT-BTC dated March 21, 2016 amending and supplementing a number of Articles of Circular No. 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance and Circular No. 195/2012/TT-BTC dated November 15, 2012 guiding accounting applicable to investor units.
2. Contents related to accounting for the equitization of State-owned enterprises are guided in Clauses 3.11 and 3.12 of Article 21; Clause 3.3 of Article 35; points h and i of Clause 3 of Article 38; point c of Clause 5 of Article 40; point c of Clause 3.1, point d of Clause 3.2, point e of Clause 3.3, point d of Clause 3.4 of Article 45; points k, l, and m of Clause 3 of Article 47; point l of Clause 3 of Article 54; Clauses 3.2 and 3.9 of Article 57; point d of Clause 3 of Article 62; point p of Clause 3 of Article 63; Clause 3.13 of Article 67; Article 71; point g of Clause 3 of Article 74; point d of Clause 3 of Article 77; Clauses 3.15 and 3.16 of Article 92; point m of Clause 3 of Article 93; Point d, Clause 3, Article 94 of Circular No. 200/2014/TT-BTC dated December 22, 2014, issued by the Ministry of Finance, guiding the accounting regime for enterprises, will continue to be implemented until a replacement document is issued.
Small and medium-sized enterprises, non-public institutions, and other accounting units may choose to apply this Circular to their accounting practices, adapting them to the characteristics of their production and business operations and management requirements. When applying this Circular, units must maintain consistency for at least one accounting year. If a business changes its accounting system, it must present the data and comparative information again, similar to when changing accounting policies, and explain the reasons and impact of the change in the notes to the financial statements as required.
4. Ministries, branches, People's Committees, Departments of Finance, and Tax Departments of provinces and centrally-administered cities are responsible for guiding businesses in implementing this Circular. During the implementation process, any difficulties encountered should be reported to the Ministry of Finance for consideration and resolution.
APPENDIX
| STT | TITLE |
| Appendix I | Accounting Document Categories and Forms |
| Appendix II | Business Accounting Chart of Accounts |
| Appendix III | Accounting ledger |
| Appendix IV | Financial Statement Form |