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MINISTRY OF FINANCE OF VIETNAM |
SOCIALIST REPUBLIC OF VIETNAM |
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No. 99/2025/TT-BTC |
Hanoi, October 27, 2025 |
CORPORATE ACCOUNTING GUIDELINES
Pursuant to the Law on Accounting dated November 20, 2015;
Pursuant to the Law on Amendments to the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on State Budget, the Law on Management and Use of Public Property, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserves, the Law on Handling of Administrative Violations dated November 29, 2024;
Pursuant to the Government’s Decree No. 29/2025/ND-CP dated February 24, 2025 on functions, tasks, powers and organizational structure of the Ministry of Finance;
Pursuant to the Government’s Decree No. 166/2025/ND-CP dated June 30, 2025 on amendments to the Government’s Decree No. 29/2025/ND-CP dated February 24, 2025 on functions, tasks, powers and organizational structure of the Ministry of Finance;
At the request of the Director of the Department of Accounting and Auditing Regulations;
The Minister of Finance promulgates the Circular on corporate accounting guidelines.
This Circular provides guidelines for accounting records, chart of accounts, bookkeeping procedures, preparation and presentation of financial statements of enterprises. The determination of an enterprise’s obligations to the State Budget shall be carried out in accordance with tax laws.
1. This Circular provide guidelines for accounting of enterprises in all industries and economic sectors.
2. Credit institutions and foreign bank branches (FBBs) shall implement accounting regulations or legislative documents on accounting under guidance of State Bank of Vietnam (SBV).
Article 3. Corporate governance and internal control
1. The initiation, execution, management, and control of economic transactions of enterprises must comply with applicable laws and relevant regulatory frameworks.
2. Enterprises are responsible for developing internal governance policies (or equivalent documentation) and carry out internal control to clearly delineate the rights, obligations, and responsibilities of departments and individuals involved in the initiation, execution, management, and control of economic transactions, ensuring ensures compliance with enterprise laws and relevant laws.
Article 4. Accounting currency
1. “accounting currency” shall be the Vietnamese Dong (national symbol: “đ”; international symbol: “VND”), which shall be used for bookkeeping, preparation and presentation of financial statements of enterprises. In cases where an enterprise primarily receives and expends foreign currency, and meets the criteria set forth in Clauses 2, 3, and 4 of this Article, it may designate a foreign currency as its accounting currency for bookkeeping purposes and take legal responsibility for this designation.
2. An enterprise shall determine the accounting currency that satisfies the following criteria:
a) The currency affects the pricing of goods/services, and is regularly used for payment and listing selling prices of goods/services;
b) The currency primarily affects the labor costs, material costs, and other operating costs, and is commonly used to pay such costs.
3. If the enterprise cannot determine its accounting currency based on the criteria specified in Clause 2 of this Article, the following factors may be considered:
a) The currency is used to raise financial resources (the currency used for issuance of debt instruments, equity instruments, etc.);
b) The currency is regularly received from business operation and retained as reserves.
4. The accounting currency reflects the transactions, events and conditions relevant to the enterprise’s operations. Once determined, the accounting currency shall not be changed unless there is a significant change in the enterprise’s operational or managerial environment that results in a fundamental shift in these transactions, events and conditions.
Article 5. Change of accounting currency
1. Rules for changing the accounting currency
When there is a significant change in the enterprise’s operational or managerial environment such that the its accounting currency no longer satisfies the criteria set out in Clauses 2, 3 and 4 Article 4 of this Circular, the enterprise may change its accounting currency, and such a change is permitted only at the beginning of a new accounting year.
2. Rules for preparing financial statement upon change of the accounting currency
a) In the first accounting period following the change, the enterprise shall translate the balances of all accounts in the accounting books and the Statement of Financial Position into the new accounting currency at the average exchange rate (the arithmetic mean of the buying and selling transfer rates) quoted by the commercial bank with which the enterprise most transacts as of the date of the accounting currency change.
b) For comparative information (prior period column) in the Profit and Loss (P&L) Statement and the Cash Flow Statement, the enterprise shall apply the average transfer exchange rate of the same commercial bank for the period preceding the period in which the change occurs.
c) The enterprise shall Financial Statement Notes the reason for the change of accounting currency and any effects that the change has on the Financial Statements.
Article 6. Accounting works when the enterprise selects an accounting currency other than VND
1. The legally binding financial statements that the enterprise must disclose publicly and submit to competent authorities in Vietnam shall be presented in Vietnamese Dong. Therefore, the enterprise must translate its financial statements from the accounting currency into VND in accordance with Clause 3 of this Article, unless otherwise prescribed by law.
2. In cases where the law requires the enterprise’s financial statements to be audited by an independent audit firm, the audited financial statements must be presented in VND.
3. Method for translation of financial statements prepared in a foreign currency into VND
a) When translating financial statements prepared in a foreign currency into Vietnamese Dong, the enterprise shall apply the following principles:
– Assets and liabilities shall be translated into VND at the average transfer exchange rate quoted by the commercial bank with which the enterprise most frequently transacts as of the end of the accounting period;
– Equity (owner’s capital contributions, capital surplus, other capital, bond conversion options) shall be translated into VND at the actual exchange rate on the date of capital contribution;
– Differences upon asset remeasurement shall be translated into VND at the actual transaction exchange rate on the date of revaluation;
– Undistributed post-tax profits (retained earnings), funds derived from retained earnings for each period shall be translated into VND according to the items in the P&L Statement. The remaining retained earnings shall be translated into VND at the book exchange rate recorded for retained earnings;
– Items in the P&L Statement and Cash Flow Statement shall be translated into VND at the actual exchange rate at the time of the transaction. If the average exchange rate for the accounting period approximates the actual exchange rate at the time of transaction (the difference does not exceed the spot exchange rate band prescribed by SBV), the enterprise may opt to use the average exchange rate for the accounting period.
b) Accounting of exchange rate differences due to translation of financial statements from foreign currency into VND.
Exchange rate differences that occur after translation of Financial Statements from foreign currency into VND shall be recognized under the item “Exchange rate differences” within the equity section of the Statement of Financial Position.
c) When translating Financial Statements prepared in a foreign currency into VND, the enterprise must clearly disclose in the Financial Statement Notes the impacts of the translation on the Financial Statements
Article 7. Organization of the accounting system and accounting works at affiliated units of the enterprise
1. Affiliated units are dependent units as defined by enterprise laws.
2. The enterprise is responsible for organizing its accounting system and may determine the accounting works to be performed by its affiliated units in a manner that is consistent with the nature of its business operations and management requirements, and conformable with law.
3. The organization of the accounting system and accounting works at affiliated units of the enterprise shall be carried out as follows:
a) The enterprise may delegate its affiliated units to recognize the capital allocated by the enterprise to the affiliated units either as liabilities or as equity; recognize or not to recognize revenues and cost of goods sold (COGS) when transferring products, goods, services between internal stages, regardless of the form of accounting records used (invoices or internally transferred records), as long as it aligns with the enterprise’s operational model and management requirements.
b) The enterprise may delegate its affiliated units prepare or not to prepare Financial Statements. However, the enterprise’s Financial Statements submitted to competent authorities or disclosed publicly must include financial information from both the headquarters and all affiliated units, regardless of whether the enterprise has delegated its affiliated units prepare or not to prepare Financial Statements.
Article 8. General provisions on accounting records
Accounting records of the enterprise must be prepared in accordance with the Law on Accounting, its elaborating documents, and any amendments or replacements thereto.
Article 9. Standard forms of accounting records
1. Enterprises may refer to and apply the standard forms of accounting records provided in Appendix I attached to this Circular.
2. Enterprises may design additional forms or modify the standard forms of accounting records provided in Appendix I to suit the specific characteristics of business operations and management requirements. Such addition or modification must comply with Article 16 of the Law on Accounting and must ensure that the records fully, promptly, truthfully, and transparently reflect the enterprise’s assets and equity, and are easy to verify, control and compare.
When adding or modifying accounting record forms, the enterprise must issue an internal accounting policy (or equivalent documentation) outlining the changes as the basis for implementation. This policy must clearly state the necessity of the changes and the enterprise’s legal responsibility for such changes.
If the enterprise does not design additional accounting record forms or modify accounting record forms, it shall apply the standard forms of accounting records in Appendix I of this Circular.
3. If the enterprise has accounting records that are regulated by other laws, they must comply with the other laws.
Article 10. Preparing, signing and controlling accounting records
1. Every economic or financial transaction related to the enterprise’s operations must be documented into accounting records. Only one accounting record shall be prepared for each economic or financial transaction.
2. Accounting records shall be prepared and signed in accordance with the Law on Accounting, its elaborating documents, provisions of this Circular, and any amendments or replacements thereto.
3. The delegation of signing authority on accounting records must comply with law, management requirements, and internal governance policies of the enterprise to ensure strict control and safety of assets and capital of the enterprise, and clearly determine accountability of involved individuals.
4. The chief accountant (or a person authorized by the chief accountant) must not sign accounting records “on behalf of” the enterprise’s executive, unless otherwise prescribed by law.
1. The enterprise shall apply the chart of accounts provided in Appendix II hereof to record economic transactions that occur during its operations.
2. Enterprises may add or modify the names, codes, structure, and content of the accounts in Appendix II hereof to suit the specific characteristics of business operations and management requirements. Such addition or modification must ensure proper classification and systematization of transactions by economic substance, avoid duplication of subjects, conformity with applicable accounting principles, and must not alter or affect the line items and information presented in the Financial Statements.
When adding or modifying names, codes, structure, and content of accounts, the enterprise must issue an internal accounting policy (or equivalent documentation) outlining the changes as the basis for implementation. This policy must clearly state the necessity of the changes and the enterprise’s legal responsibility for such changes.
If the enterprise does not add or modify the names, codes, structure, and content of the accounts, it shall apply the chart of accounts in Appendix II hereof.
3. This Circular only provides guidance on the content and accounting methods for certain key economic transactions. Transactions that are not specifically addressed in this Circular shall, in consideration of their contents and nature, be recorded in accordance with provisions of the Law on Accounting, its elaborating documents, Vietnam’s Accounting Standards, and the principles outlined in this Circular.
1. Accounting books of the enterprise must be prepared in accordance with the Law on Accounting, its elaborating documents, and any amendments or replacements thereto.
2. Enterprises may refer to and apply the accounting book templates in Appendix III hereof.
Enterprises may add or modify the accounting book templates in Appendix III hereof to suit the specific characteristics of business operations and management requirements. Such addition or modification must comply with Clauses 1, 2, 3, 4 Article 24 of the Law on Accounting and must ensure that the records fully, promptly, truthfully, and transparently reflect the enterprise’s assets and equity, and are easy to verify, control and compare.
When adding or modifying accounting book templates, the enterprise must issue an internal accounting policy (or equivalent documentation) outlining the changes as the basis for implementation. This policy must clearly state the necessity of the changes and the enterprise’s legal responsibility for such changes.
If the enterprise does not design additional accounting book templates or modify the existing accounting book templates, it shall apply the model accounting books in Appendix III of this Circular.
Article 13. Opening, recording, and closing accounting books
1. Opening: The accounting book must be opened at the beginning of the accounting year. For newly established enterprises, the accounting book must be opened from the date of establishment.
2. Recording: The enterprise must prepare its accounting books based on accounting records, in accordance with the Law on Accounting and its amendments or replacements. Entries must be recorded in accounting books promptly, clearly, and completely in accordance with the contents of the books. All information and figures recorded in the accounting books must be accurate, truthful, and consistent with the accounting records.
3. Closing: The enterprise must close its accounting book at the end of the accounting period to prepare the Financial Statement, and in other cases as prescribed by law.
Article 14. Purposes of financial statements
1. Financial statements are used to provide information about the financial position, business performance, and cash flows of the enterprise, meeting the management requirements of the enterprise’s owner, competent authorities, and the needs of users of financial statements in making economic decisions. Financial statements must provide the following information about an enterprise’s:
a) Assets;
b) Liabilities;
c) Equity;
d) Revenues, other incomes, operating expenses and other expenses;
dd) Profit, loss and distribution thereof;
e) Cash flows.
2. In addition to the information in Clause 1 of this Article, the enterprise must also provide other information in the “Financial Statement Notes” to explain the information provided in the financial statements and the accounting policies applied to recognize economic transactions, prepare and present the enterprise’s financial statements.
Article 15. Financial statement reporting period
1. Annual financial statement reporting period: Enterprises shall prepare annual financial statements in accordance with the Law on Accounting.
2. Interim financial statement reporting periods: Interim financial statements include quarter financial statements (including the fourth quarter) and the semi-annual financial statement (6-month financial statement).
3. Other financial statement reporting periods
a) Enterprises shall prepare financial statements for other accounting periods (e.g. monthly financial statements, etc.) as required by law, the parent company, or the owner.
b) Enterprises that are fully divided, acquired, consolidated, converted, dissolved, or bankrupt must prepare financial statements at the time of full division, acquisition, consolidation, conversion, dissolution, or bankruptcy as prescribed by law.
Article 16. Preparing entities and responsibility for preparation of financial statements
1. Preparing entities:
Enterprises in all industries and economic sectors must prepare full annual financial statements as specified in Appendix IV issued with this Circular. The preparation of interim financial statements or financial statements for other accounting periods shall comply with relevant laws or the management requirements of the enterprise. In cases where relevant laws require enterprises to prepare interim financial statements but do not specify the type of interim financial statements, they may choose to prepare either full or condensed interim financial statements.
2. Enterprises with affiliated units must consolidate financial information of the headquarters and the dependent units into the enterprise’s financial statements by eliminating all internal transactions between the headquarters and the affiliated units or among affiliated units. In this case, the headquarters and the dependent units are not required to prepare separate financial statements unless otherwise required by law.
3. The preparation and presentation of consolidated annual financial statements and consolidated interim financial statements shall comply with regulations of law on consolidated financial statements.
4. The preparation and presentation of annual financial statements shall comply with the Law on Accounting, its elaborating documents, and any amendments or replacements thereto. If the enterprise hires an accounting service provider to prepare and present its financial statements or to act as chief accountant, the accounting service practitioner’s license number and the name of the accounting service provider must be specified in the section for the preparer and chief accountant on the enterprise’s financial statements.
Article 17. Financial statement system of enterprises
1. The financial statement system includes:
– Statement of Financial Position;
– Profit and Loss (P&L) Statement;
– Cash Flow Statement;
– Financial Statement Notes;
2. Annual Financial Statements:
a) Annual Financial Statements of enterprises assumed to be going concerns include:
| – Statement of Financial Position
– Profit and Loss (P&L) Statement – Cash Flow Statement – Financial Statement Notes |
Form No. B 01 – DN
Form No. B 02 – DN Form No. B 03 – DN Form No. B 09 – DN |
b) Annual financial statements of enterprises not assumed to be going concerns include:
| – Statement of Financial Position
– Profit and Loss (P&L) Statement – Cash Flow Statement – Financial Statement Notes |
Form No. B 01 – DNKLT
Form No. B 02 – DNKLT Form No. B 03 – DNKLT Form No. B 09 – DNKLT |
3. Interim Financial Statements include:
a) Full Interim Financial Statements, including:
| – Interim Statement of Financial Position
– Interim Profit and Loss (P&L) Statement – Interim Cash Flow Statement – Selected Financial Statement Notes |
Form No. B 01a – DN
Form No. B 02a – DN Form No. B 03a – DN Form No. B 09a – DN |
b) Condensed Interim Financial Statements, including:
| – Interim Statement of Financial Position
– Interim Profit and Loss (P&L) Statement – Interim Cash Flow Statement – Selected Financial Statement Notes |
Form No. B 01b – DN
Form No. B 02b – DN Form No. B 03b – DN Form No. B 09a – DN |
4. Templates for Annual Financial Statements and Interim Financial Statements (both full and condensed forms) are provided in Appendix IV hereof. Line items without data are exempt from presentation in the financial statements. The enterprise may renumber the line items continuously within each section but must not change the “Code” of the items.
Article 18. Amendments and supplementation of Financial Statements
1. Enterprises shall apply the financial statement system provided in Appendix IV hereof to prepare their own financial statements.
Enterprises may more line items to the Financial Statements provided in Appendix IV hereof to suit the specific characteristics of business operations and management requirements. Such addition must comply with Clause 1 and Clause 2 Article 29 of the Law on Accounting and adhere to the rules for preparation and presentation of Financial Statements prescribed in this Circular. The enterprise must specify in their financial statements the additions to the financial statement templates in Appendix IV hereof.
When adding new line items to the financial statements, the enterprise must issue an internal accounting policy (or equivalent documentation) outlining the additions as the basis for implementation. This policy must clearly state the necessity of the additions and the enterprise’s legal responsibility for such additions.
If the enterprise does not add any new line items to the financial statements, it shall apply the financial statement templates provided in Appendix IV hereof.
2. In cases where it is impossible for the enterprise to add or modify line items of the financial statement templates in Appendix IV hereof due to its specific characteristics, a report shall be sent to the Ministry of Finance for guidance on the preparation and presentation of financial statements.
Article 19. Requirements for information presented in Financial Statements
1. Information presented in Financial Statements must truthfully and reasonably reflect the financial position, business performance, cash flows, and other financial information of the enterprise. The information must be complete, objective, and free from errors.
– Information is considered complete when the Financial Statements include all necessary information to help users understand the nature, form, and risks of transactions and events. For certain items, completeness also requires description of quality, influencing factors, and circumstances that may affect the nature and quality of the items.
– Objective information is information which is presented without bias, ensuring neutrality, accuracy, and truthfulness, without being distorted or manipulated in a manner that alters the impact of financial information to the financial statement users’ advantage or disadvantage.
– A financial statement is considered free from errors if it does not contain omissions, misstatement, or fraudulent information when describing phenomena, selecting, applying and providing reported information. Being free from errors does not imply absolute accuracy in every aspect. An estimate is considered error-free if its nature and limitations of the estimation process are clearly explained and described, and there is no error during the selection of appropriate data during the estimation process.
2. Financial information must be appropriate to help financial statement users forecast, analyze, and make economic decisions.
3. Financial information must be presented fully in all material aspects. Information is considered material if its omission or misstatement could significantly distort the financial statement and affect the economic decisions of financial statement users. Materiality depends on the size or nature, or both, of the omissions or misstatements assessed in the specific context.
4. Information must be verifiable, timely, and understandable.
5. Financial information must be presented consistently and be comparable across accounting periods and among enterprises. When an enterprise changes its going concern status, it must disclose in the Financial Statement Notes the nature, figures, and reasons for reclassifying data for comparison of indicators and line items of the financial statement to ensure comparability with the current period (unless this is impracticable).
Article 20. Preparation and presentation of Financial Statements of enterprises assumed to be going concerns
1. The preparation and presentation of financial statements must comply with the provisions of Vietnam’s Accounting Standard No. 21 – Presentation of Financial Statements and other relevant Vietnam’s Accounting Standards. Material information must be explained to help users accurately understand the financial position of the enterprise.
2. Financial statements must reflect the economic substance of transactions and events rather than their legal form (substance over form).
3. Asset must not be recognized at a value higher than their recoverable value; liabilities must not be recognized at a value lower than the obligations to be settled.
4. Classification of assets and liabilities: Assets and liabilities in the Statement of Financial Position must be presented as current and non-current; line items must be arranged in decreasing order of liquidity.
a) An asset shall be classified as a current asset in one of the following cases:
(i) The enterprise expects to recover, sell, or use the asset within one normal operating cycle;
(ii) The enterprise holds the asset primarily for commercial purposes;
(iii) The enterprise expects to recover the asset within 12 months after the end of the accounting period;
(iv) The asset is cash or a cash equivalent, unless it is banned from exchange or has not been used to settle a liability for more than 12 months after the end of the account reporting period.
Assets that not classified as current assets under the above guidance are classified as non-current assets.
b) A liability shall be classified as a current liability in one of the following cases:
(i) The enterprise expects to settle the liability within one normal operating cycle;
(ii) The enterprise holds the liability primarily for business purposes;
(iii) The liability is due within 12 months after the end of the accounting period;
(iv) The enterprise does not have the right to reject settlement of the liability (due borrowings, loans, finance lease liabilities, even if the liability will be settled by issuing equity instruments at the counterparty’s option) at any time within 12 months after the end of the accounting period.
Liabilities (such as amounts payable to suppliers, amounts payable to employees, and other operating expenses) that are part of working capital used in the normal operating cycle must be classified as current liabilities even if they are due after 12 months after the end of the accounting period.
Liabilities that not classified as current liabilities under the above guidance are classified as non-current liabilities.
Regarding liabilities classified as current liabilities, if the following events occur during the period between the end of the accounting period and the issuance date the financial statement, they are considered non-adjusting subsequent events:
– Agreements to extend the maturity of a current liability into a non-current liability;
– Remedies for covenant breaches related to non-current liabilities; and
– Grace period granted by the creditor to remedy covenant breaches related non-current liabilities for at least 12 months after the end of the accounting period.
The enterprise must disclose these subsequent events in the Financial Statement Notes as per regulations.
c) If the enterprise chooses to classify assets and liabilities in the Statement of Financial Position based on the normal operating cycle, it must disclose the expected amounts recoverable or payable after 12 months for each line of assets and liabilities when the amounts are expected to be recovered or settled:
(i) within 12 months after the end of the accounting period, and
(ii) after 12 months after the end of the accounting period.
The same normal operating cycle shall be applied to classify both assets and liabilities of the enterprise. For enterprises whose normal operating cycle cannot be clearly determined, the operating cycle is assumed to be 12 months.
d) When preparing financial statements, the enterprise must reclassify non-current assets and liabilities of the previous period as current assets and liabilities in the current period if, as of the end of the accounting period, these assets and liabilities meet the criteria for classification current assets and liabilities under Point a and Point b of this Clause, except for cases where reclassification is not permitted under this Circular.
5. Assets and liabilities must be presented separately. The enterprise may offset assets and liabilities only when they are related to the same counterparty, have quick turnover, short maturity, 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 on the matching principle and conservatism principle. The P&L Statement and Cash Flow Statement must reflect revenue, income, expenses, and cash flows for the reporting period. If material errors are discovered in the financial statement of the previous period, they must be retrospectively adjusted as per regulations.
7. If the enterprise has affiliated units, the enterprise’s financial statements must consolidate financial information of both the headquarters and the affiliated units. Internal balances in the Statement of Financial Position, unrealized revenue, expenses, profits, and losses arising from internal transactions must be eliminated.
Article 21. Preparation and presentation of financial statements upon change of accounting period
When the accounting period is change, e.g. the enterprise changes its accounting period from the calendar year to a different fiscal year, it must close its accounting books and prepare financial statements according to the following principles:
1. The change of accounting period must comply with the Law on Accounting. When changing the accounting year, the enterprise must prepare separate financial statements for the period between the old and the new fiscal years.
2. For the Statement of Financial Position: All balances of assets, liabilities, and equity at the end of the previous accounting period before the change must be recorded as the opening balances of the new accounting period and presented in the column “Số đầu năm” (“Start of year”).
3. Regarding the P&L Statement and Cash Flow Statement for the accounting period from the end of the previous accounting period to the date of change: figures from the end of the previous accounting period to the date of change must be presented in the column “Kỳ này” (“Current period”). The column “Kỳ trước” (“Previous period”) presents the corresponding figures from the previous accounting period or the figures of 12 months in the financial statement of the preceding fiscal year.
4. The enterprise must clearly disclose:
a) The reason for changing the ending date of the fiscal year;
b) The comparative figures presented in the P&L Statement, Cash Flow Statement, and the relevant Financial Statement Notes. In cases where the “Previous period” figures in the P&L Statement and Cash Flow Statement of the current period are from the 12-month period of the preceding fiscal year, the enterprise must disclose the incomparability between information of the current reporting period and the information of the comparative period in accordance with Vietnam’s Accounting Standard No. 21 – Presentation of Financial Statements.
Article 22. Preparation and presentation of financial statements upon business type conversion
Upon business type conversion (changing the type of enterprise), the enterprise must close its accounting books and prepare financial statements as prescribed by law. In the first accounting period following the conversion, the enterprise must do bookkeeping and present financial statements according to the following principles:
1. For accounting books reflecting assets, liabilities, and equity: All balances of assets, liabilities, and equity in the accounting books of the old enterprise before conversion must be recorded as opening balances in the accounting books of the new enterprise.
2. For the Statement of Financial Position: All balances of assets, liabilities, and equity inherited from the old enterprise before conversion must be recorded as the opening balances of the new enterprise and presented in the column “Số đầu năm” (“Start of year”).
3. For the P&L Statement and Cash Flow Statement: figures from the time of conversion to the end of the first reporting period must be presented in the column “Kỳ này” (“Current period”). The column “Kỳ trước” (“Previous period”) presents the cumulative figures from the beginning of the reporting year to the time of conversion, and the enterprise must clearly disclose the reason for any incomparability between information of the reporting period and the comparative period in accordance with Vietnamese Accounting Standard No. 21 – Presentation of Financial Statements.
Article 23. Preparation and presentation of financial statements upon full division (split-up), partial division (split-off), consolidation, acquisition of enterprises
1. General principles
a) Enterprise acquisition
a1) Upon enterprise acquisition, the involved enterprises (the acquiring enterprise and the acquired enterprise) must comply with enterprise laws and other relevant laws.
a2) The net asset value received by the acquiring enterprise from the acquired enterprise shall be determined as follows:
(i) If the acquisition transaction qualifies as a business activity under the definition in Vietnam’s Accounting Standard No. 11 – Business consolidation and the acquisition is conducted between enterprises under common control, the acquiring enterprise shall recognize the assets and liabilities received from the acquired enterprise in its accounting books at the carrying amounts recorded in the separate financial statements of the acquired enterprise at the acquisition time.
(ii) If the acquisition transaction qualifies as a business activity under the definition in Vietnam’s Accounting Standard No. 11 – Business consolidation and the acquisition is conducted between enterprises that are not under common control, the acquiring enterprise shall recognize the assets and liabilities received from the acquired enterprise following the purchase method prescribed in Vietnam’s Accounting Standard No. 11 – Business consolidation.
(iii) If the acquisition transaction does not qualify as a business activity under the definition in Vietnam’s Accounting Standard No. 11 – Business consolidation, the acquiring enterprise shall recognize the assets and liabilities received from the acquired as enterprise a group of assets or net assets.
a3) Determining the acquisition transaction costs
(i) In cases where the acquiring enterprise uses investments in subsidiaries, joint ventures, associate companies, other investments, or pays additional cash, or uses non-monetary assets such as inventories, fixed assets, investment properties, etc., or issues equity instruments to pay other investors when conducting the acquisition, the value of investments, non-monetary assets, or equity instruments issued by the acquiring enterprise shall be determined as follows:
– If the acquisition transaction qualifies as a business activity under the definition in Vietnam’s Accounting Standard No. 11 – Business consolidation: The value of exchanged non-monetary assets, incurred liabilities and issued equity instruments for the acquisition shall be determined in accordance with Vietnam’s Accounting Standard No. 11 – Business consolidation.
– If the acquisition transaction does not qualify as a business activity under the definition in Vietnam’s Accounting Standard No. 11 – Business consolidation: The acquiring enterprise shall prioritize the use of fair value of the assets and liabilities received on the exchange date for determining the payment value of the exchanged non-monetary assets or equity instruments issued for the acquisition transaction. If the fair value of the received assets and liabilities on the exchange date cannot be determined or are unreliable, the fair value of the exchanged assets, or another value that is more reliable according to other evidence and calculation methods, shall be used. Any difference (if any) between the issued share value and the par value shall be recorded as capital surplus. Any difference (if any) between the fair value and the carrying amounts of inventories, fixed assets, investment properties, etc., shall be recorded as profit or loss for the period similarly to sale or exchange of those assets.
If the payment value is determined collectively for multiple non-monetary assets exchanged, based on the understanding of the parties on the transaction date, the acquiring enterprise shall determine the selling price of each asset given using a systematic method (such as allocation based on carrying amount, fair value of given assets on the exchange date, etc.).
The parties must comply with relevant regulations of law when determining the value of non-monetary assets exchanged for the acquisition. The remeasurement of the carrying amount of non-monetary assets exchanged for the acquisition shall only be carried out when there is clear and reliable evidence that the market value of those non-monetary assets at the time of exchange differs from their carrying amount. The parties involved in the acquisition and related parties shall be legally responsible for any intentional mispricing or incorrect valuation of non-monetary assets exchanged for the acquisition.
(ii) The acquiring enterprise must cease recognizing the assets given or spent to carry out the acquisition transaction, such as investments in subsidiaries, joint ventures, associate companies, other investments, issuance of equity instruments, cash, non-monetary assets, or other benefits, etc. at the carrying amount of those assets in the separate financial statements of the acquiring enterprise. This carrying amount equals (=) the original cost minus (-) asset impairment provisions, or carrying amount equals (=) original cost minus (-) accumulated depreciation of fixed assets or investment properties.
a4) Accounting principles for the difference between the acquisition transaction cost (the value of assets or benefits that the acquiring enterprise must give up or that are reduced) and the net asset value received from the acquired enterprise in cases where the acquisition transaction qualifies as a business activity under the definition in Vietnam’s Accounting Standard No. 11 – Business consolidation:
(i) If the acquisition transaction is conducted between enterprises under common control, the difference between the acquisition transaction cost and the carrying amount of net assets in the separate financial statements of the acquired enterprise shall be fully recorded in Account 4118 – Other Capital and periodically transferred to Account 421 – Undistributed Post-Tax Profit in the accounting books of the acquiring enterprise over a period not exceeding 10 years, starting from the acquisition date, using the straight line method or another reasonable method.
(ii) If the acquisition transaction is conducted between enterprises that are not under common control, the difference between the acquisition transaction cost and the fair value of net identifiable assets in the separate financial statements of the acquired enterprise shall be accounted for as goodwill or negative goodwill arising from the business consolidation transaction, in accordance with the guidance in Vietnam’s Accounting Standard No. 11 – Business Consolidation.
a5) In cases where the acquisition 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 internal transactions before preparing and presenting its separate financial statements for the accounting period in which the acquisition occurs.
a6) Tax obligations related to internal transactions involving the purchase and sale of goods, services, fixed assets, etc., during the acquisition shall be determined in accordance with tax laws. Deferred corporate income tax (CIT) related to temporary differences between the net asset value and the tax base of net assets (which may arise from unrealized profits/losses on internal transactions) shall be accounted for by the acquiring enterprise in accordance with Vietnam’s Accounting Standard No. 17 – Corporate Income Tax.
a7) In the cases of enterprise acquisition other than those specified above, enterprises shall apply the principles set out in the Vietnam’s Accounting Standards system, the guidance in this Circular, and the nature of the acquisition transaction to do bookkeeping appropriately.
b) Full division, partial division, consolidation of enterprises
b1) Upon full division, partial division, consolidation, the involved enterprises (the new enterprises and the divided enterprises or consolidating enterprises) must comply with enterprise laws and other relevant laws.
b2) The net asset value received by the new enterprise from the divided enterprises or consolidating enterprises shall be determined as follows:
(i) Consolidation of enterprises:
– If the consolidation transaction qualifies as a business activity under the definition in Vietnam’s Accounting Standard No. 11 – Business consolidation and the consolidation is conducted between enterprises under common control, the new enterprise shall recognize the assets and liabilities received from the consolidating enterprises in its accounting books at the carrying amounts recorded in the separate financial statements of the consolidating enterprises at the consolidation time.
– If the consolidation transaction qualifies as a business activity under the definition in Vietnam’s Accounting Standard No. 11 – Business consolidation and the consolidation is conducted between enterprises that are not under common control, the new enterprise shall recognize the assets and liabilities received from the consolidating enterprises following the purchase method prescribed in Vietnam’s Accounting Standard No. 11 – Business consolidation.
– If the consolidation transaction does not qualify as a business activity under the definition in Vietnam’s Accounting Standard No. 11 – Business consolidation, the new enterprise shall recognize the assets and liabilities received from the consolidating enterprises as a group of assets or net assets.
(ii) Fully division and partial division of enterprises: The new enterprise shall recognize in its accounting books the net asset value received from the divided enterprise at the carrying amounts recorded in the separate financial statements of the divided enterprise at the time of division.
b3) In cases where the new enterprises issue equity instruments to carry out the division or consolidation transaction, the new enterprise shall prioritize the use of the fair value of the assets and liabilities received on the exchange date to determine the fair value of the equity instruments, except when determining the value of issued equity instruments for calculating business consolidation cost, in which case the enterprise shall follow the guidance in Vietnam’s Accounting Standard No. 11 – Business Consolidation. 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 instruments shall be the market price listed on the stock exchange. If the equity instruments are not listed, the value that is more reliable according to other evidence and calculation methods shall be used. Any difference between the issued share value and the par value shall be recorded as capital surplus.
b4) In the cases of enterprise division and consolidation other than those specified above, enterprises shall apply the principles set out in the Vietnam’s Accounting Standards system, the guidance in this Circular, and the nature of the division or consolidation transaction to do bookkeeping appropriately.
c) If the full division, partial division, consolidation, or acquisition of state-owned enterprises is regulated by different provisions from the principles specified in this Article, the provisions applicable to state-owned enterprises shall be complied with.
2. The bookkeeping and preparation of financial statements of relevant enterprises upon full division, partial division, consolidation, or acquisition shall be carried out as follows:
a) For accounting books reflecting assets, liabilities, and equity:
a1) The value of assets, liabilities, and equity received from the acquired enterprise shall be recorded by the acquiring enterprise as current-period entries in its accounting books. The opening balances of assets, liabilities, and equity in the accounting books of the acquiring enterprise shall remain unchanged.
a2) The value of assets, liabilities, and equity received from the consolidating enterprises shall be recorded by the new enterprise as current-period entries in its accounting books. The opening balances of assets, liabilities, and equity in the accounting books of the acquiring enterprise shall be left blank.
a3) The value of assets, liabilities, and equity transferred from the fully divided enterprise (original enterprise) to the new enterprises shall be recorded by the new enterprises as current-period entries in the new enterprises’ accounting books. The opening balances of assets, liabilities, and equity in the accounting books of the new enterprises shall be left blank.
a4) The value of assets, liabilities, and equity transferred from the partially divided enterprise (parent company) to the new enterprise (divested entity) shall be recorded by the new enterprise as current-period entries in the new enterprise’s accounting books. The opening balances of assets, liabilities, and equity in the accounting books of the new enterprise (divested entity) shall be left blank. The opening balances of assets, liabilities, and equity in the accounting books of the partially divided enterprise (parent company) shall remain unchanged.
b) For Statements of Financial Position:
b1) The value of assets, liabilities, and equity received from the acquired enterprise shall be consolidated by the acquiring enterprise and presented in the “Số cuối năm” (“End of year”) column in its Statement of Financial Position. The “Số đầu năm” (“Start of year”) column in the Statement of Financial Position of the acquiring enterprise shall remain unchanged.
b2) The value of assets, liabilities, and equity received from the consolidating enterprises shall be consolidated by the new enterprise and presented in the “Số cuối năm” (“End of year”) column in its Statement of Financial Position. The “Số đầu năm” (“Start of year”) column in the Statement of Financial Position of the new enterprise shall be left blank.
b3) The value of assets, liabilities, and equity inherited from the fully divided enterprise (original company) or partially divided enterprise (parent company) shall be consolidated by the new enterprises and presented in the “Số cuối năm” (“End of year”) column in their Statement of Financial Position. The “Số đầu năm” (“Start of year”) column in the Statement of Financial Position of the new enterprises shall be left blank. The “Số đầu năm” (“Start of year”) column in the Statement of Financial Position of the partially divided enterprise (parent company) shall remain unchanged.
c) For P&L Statements and Cash Flow Statements:
c1) The acquiring enterprise shall only recognize and present the figures of the acquired enterprise in its statement of P&L Statement and Cash Flow Statement from the acquisition date to the end of the reporting period in the “Current year” column. The “Previous year” column of the acquiring enterprise shall remain unchanged.
c2) The new enterprises shall only present the figures from the date or division or consolidation to the end of the first reporting period in the “Current year” column. The “Previous year” column of the new enterprises shall be left blank. The partially divided enterprise (parent company) shall no longer recognize and present figures of the divested entity from the date of partial division to the end of the reporting period.
Article 24. Rules for preparation and presentation of Financial Statements of enterprises not assumed to be going concerns
1. When preparing and presenting financial statements, the enterprise must consider the signs that it is not assumed to be a going concern. An enterprise is not considered a going concern if it is expected to be dissolved, go bankrupt, cease operations, or significantly downsize within 12 months from the end of the accounting period. The enterprise must disclose its going concern status when there are material uncertainties that may cast significant doubt on its ability to operate continuously.
2. In any of the following cases, an enterprise is still considered a going concern and thus is not required to prepare and present financial statements on a non-going concern basis:
– The enterprise is undergoing conversion, including equitization of a state-owned enterprise into a joint-stock company;
– The enterprise is undergoing full division, partial division, consolidation, or acquisition;
– An enterprise (subsidiary company) is converted into an affiliated unit (branch) or vice versa.
3. When the enterprise is not assumed to be a going concern, the enterprise must still prepare the following financial statements:
| – Statement of Financial Position for enterprises not assumed to be going concerns | Form B 01 – DNKLT presented following a separate template |
| – P&L applicable to enterprises for enterprises not assumed to be going concerns | Form B 02 – DNKLT and presented following the same template as that for enterprises assumed to be going concerns |
| – Cash Flow Statement for enterprises not assumed to be going concerns | Form B 03 – DNKLT and presented following the same template as that for enterprises assumed to be going concerns |
| – Financial Statement Notes for enterprises not assumed to be going concerns | Form B 09 – DNKLT presented following a separate template |
4. If the going concern assumption is no longer appropriate at the end of the accounting period, the enterprise must reclassify its non-current assets and liabilities as current assets and liabilities. At the same time, the enterprise must remeasure all assets and liabilities, unless a third party inherits the rights to the assets or obligations for the liabilities at their book value. The enterprise must record the remeasured values in its accounting books before preparing the Statement of Financial Position.
5. The enterprise is not required to remeasure assets and liabilities if a third party assumes the rights to the assets or obligations for the liabilities in the following specific cases:
a) Another party guarantees the recovery of each specific asset item for the dissolved or bankrupt entity at book value, and recovery occurs before the entity officially ceases operations;
b) A third party guarantees the payment of each specific liability item for the dissolved or bankrupt entity, and the dissolved or bankrupt entity only has the obligation to repay the third party at book value.
6. Remeasurement shall be performed for each type of asset and liability at the end of the accounting period according to the following principles:
a) For assets:
– Inventories, biological assets, long-term work in progress, equipment, materials, and long-term spare parts shall be measured and recognized at the lower of original cost and net realizable value;
– Tangible fixed assets, intangible fixed assets, investment properties, and construction in progress shall be measured and recognized at the lower of carrying amount and recoverable amount (defined as liquidation price minus (-) estimated liquidation expenses). Finance-leased fixed assets with a mandatory buy-back clause shall be remeasured and recognized similarly to fixed assets owned by the enterprise; if returned to the lessor, the assets shall be remeasured and recognized at the remaining finance lease liability payable to the lessor.
– Trading securities shall be measured and recognized at fair value;
– Held-to-maturity investments, receivables, investments in subsidiaries, joint ventures, associate companies, and other entities shall be measured and recognized at the lower of carrying amount and recoverable amount (saleable price minus estimated selling expenses).
b) For liabilities: If there is a written agreement between parties regarding the payable amount, remeasurement shall be performed following the agreed amount. If no specific agreement exists:
– Monetary liabilities shall be remeasured and recognized at the higher of the carrying amount of the liability and the amount settled early as per contract terms;
– Liabilities payable in financial assets shall be remeasured and recognized at the higher of the carrying amount of the liability and the fair value of the financial asset;
– Liabilities payable in inventories shall be remeasured and recognized at the higher of the carrying amount of the liability and the buying price (plus directly related costs) or production cost of the inventories;
– Liabilities payable in fixed asset shall be remeasured and recognized at the higher of the carrying amount of the liability and the buying price (plus directly related costs) or residual value of the fixed assets.
c) Monetary items denominated in foreign currencies shall be remeasured at the average transfer exchange rate quoted by the commercial bank with which the enterprise most frequently transacts as of the end of the accounting period. The enterprise shall remeasure demand deposits in foreign currencies at the average transfer exchange rate quoted by the commercial bank where the enterprise opens its demand deposit account.
7. Accounting methods for certain asset items of enterprises not assumed to be going concerns:
a) Provisions or impairment assessment shall be directly deducted from the carrying amount of the asset, and not recorded under Account 229 – Provision for Asset Impairment;
b) Depreciation or impairment of fixed assets and investment properties shall be directly deducted from the carrying amount of the asset, and Account 214 – Depreciation of Fixed Assets shall not be used to reflect accumulated depreciation.
8. When going concern assumption is no longer appropriate, the enterprise must address the following financial issues:
– Record expected future losses as accrued expenses if the likelihood of loss is reasonably certain and the amount of loss can be reliably estimated; recognize current obligations for payables even if full documentation is not yet available (such as contractor acceptance reports, etc.), provided payment is certain.
– Cumulative asset revaluation differences under equity shall be transferred to other income (in case of profit) or other expenses (in case of loss);
– Cumulative asset revaluation differences under equity shall be transferred to other income (in case of profit) or other expenses (in case of loss);
– Unallocated expenses pending allocation shall be fully written off and charged to relevant operating expenses for the period, depending on the specific transaction and similar to recognition by an enterprise that is a going concern;
– The parent company shall cease recognizing goodwill in the consolidated financial statements; any unallocated goodwill shall be immediately charged to administrative expenses;
– Profits or losses from revaluation of assets and liabilities, after offsetting against previously recognized provisions, shall be recorded in financial income, other income, financial expenses, or other expenses depending on the specific item, similar to recognition by an enterprise that is a going concern.
9. When preparing financial statements while the going concern assumption is no longer appropriate, the enterprise must disclose details about its ability to generate cash and settle liabilities and equity for shareholders. It must also reclassify comparative figures in the financial statements of the first period in which the enterprise is no longer assumed to be a going concern (unless impracticable), to ensure comparability with the current reporting period. The nature, figures, and reasons for reclassification must also be disclosed. If reclassification of comparative figures is not possible, the enterprise must clearly explain the reasons for the incomparability between the reporting period and the comparative period. To be specific:
– Amounts expected to be recovered from liquidation, sale of assets, or collection of receivables;
– Ability to settle liabilities in order of priority, such as payments to the State Budget, employees, creditors, suppliers, etc.;
– Ability to pay owners; for joint-stock companies, disclose the expected amount per share;
– Timeline for settling liabilities and equity;
– Reason for incomparability between the reporting period and comparative period: The financial statements of the prior period were prepared under the going concern assumption, but the enterprise is expected to be dissolved, go bankrupt, cease operations, or significantly downsize in the reporting period, and therefore presents the financial statements on a non-going concern basis.
Article 25. Deadlines for submission of Financial Statements
Enterprises must submit their annual financial statements to the competent authorities within 90 days from the ending date of the accounting year.
Parent companies and corporations shall stipulate the deadlines for submission of financial statements by their subsidiaries and affiliated units for consolidation or aggregation in accordance with applicable laws and their own management requirements.
For enterprises required to submit financial statements for other accounting periods under relevant laws (quarterly or semi-annual financial statements, etc.), the deadlines for submitting such financial statements shall comply with the provisions of those relevant laws.
Article 26. Receiving authorities of Financial Statements
1. The submission of Financial Statements to competent authorities must comply with applicable laws.
2. For enterprises required by law to have their Financial Statements audited, the audit reports must be enclosed with their Financial Statements when they are submitted to competent authorities.
3. In cases where the enterprise’s Financial Statements are stored in the National Business Registration Information System, the authorities that receive these Financial Statements may request access to information about these Financial Statements as prescribed by law.
Article 27. Disclosure of Financial Statements
1. Disclosure of financial statements means the enterprise’s disclosure of information about its Financial Statements following one or some disclosure methods specified in Clause 3 of this Article so that users such as owners, creditors, suppliers, investors, etc., can access information on the enterprise’s Financial Statements.
2. Disclosees
Disclosees are entities that receive disclosed information about Financial Statements of enterprises under the Law on Enterprises and relevant laws.
3. Disclosure methods
– Printed publication: The Financial Statements are printed in booklet form to provide information to the disclosees as required by enterprise laws and other relevant laws. The enterprise must retain this publication as part of its accounting records.
– Written notification: The enterprise sends a written notification along with the Financial Statement to the disclosees in accordance with the Law on Enterprises and other relevant laws.
– Posting: The Financial Statements are publicly posted at the enterprise’s headquarters to provide information for the disclosees in accordance with the Law on Enterprises and other relevant laws.
– Website publication: The Financial Statements are published on the enterprise’s website, with a link to the Financial Statements.
– Other methods prescribed by relevant laws.
4. The content and timeline of financial statement disclosure shall comply with the Law on Accounting, its amending, supplementing, replacing documents.
5. For enterprises required by law to have their Financial Statements audited, the disclosed Financial Statements must be accompanied by the audit reports as per regulations.
Article 28. Use of accounting software
1. Enterprises may use accounting software to perform accounting tasks in accordance with this Circular. The accounting software selected by the enterprise must meet at least the following professional and technical accounting requirements:
a) The accounting procedures and operations established in the software must comply with the provisions of accounting laws, tax laws, and other relevant laws, and must not alter the nature, principles, methods of accounting, information and figures presented in the accounting books and Financial Statements as prescribed.
b) The processing of accounting procedures and related figures and information must ensure accuracy, consistency, and non-duplication. When corrections are made, traces of previously recorded accounting entries must be retained in chronological order.
c) Information and data in the accounting software must be secure and comply with regulations of law on information security and safety. The information system must be capable of alerting or preventing intentional interference that alters recorded accounting information and figures.
d) The software must provide complete and timely output information and data as required by competent authorities and users.
dd) The software must be capable of connecting or ready to connect with other relevant software for accounting operations (e-invoice software, digital signature software, etc.).
e) The software must be capable of being upgraded and modified to comply with changes in accounting laws, tax laws and other relevant laws.
2. The enterprise’s executive, chief accountant/accounting manager, and other relevant individuals shall be responsible for the accuracy and truthfulness of the accounting information and figures provided by the accounting software.
Article 29. Conversion of balances in accounting books
1. Enterprises shall convert balances of the following accounts:
– Based on the balances of detailed Subaccounts 111, 112, 113, 121, 153, 154, 156, 211, 212, 213, enterprises shall carry out conversion to suit their management requirements (if any).
– If the enterprise is a capital contributor but not acting as the accounting party for business cooperation contract, and such contract has not ended as of the effective date of this Circular, the detailed balance of Account 138 – Other Receivables (specifically the capital contributed to business cooperation contracts not under common control) shall be converted to Account 2281 – Investment in Other Entities, in accordance with the nature and position of the enterprise in the business cooperation contract as instructed in this Circular.
– Detailed balance of Account 2413 – Major Repairs of Fixed Assets related to unfinished upgrade and renovation costs shall be converted to Account 2414 – Upgrades and Renovations of Fixed Assets.
– Detailed credit balance of Account 338 – Other Payables regarding payable dividends and profits shall be converted to Account 332 – Payable Dividends and Profits.
– The balance of Account 441 – Capital for Capital Construction Investment and Account 466 – Finances for formation of fixed assets shall be converted to Account 4118 – Other Capital.
2. Other details reflected in other relevant accounts that differ from this Circular must be adjusted to comply with the provisions of this Circular.
Article 30. Transition clauses
1. Enterprises shall apply the following principles when there are changes to accounting policies:
a) In cases where the enterprise must change its accounting policies due to the first-time application of legal regulations or Vietnam’s Accounting Standards, accounting regulations that include specific conversion guidance (using retrospective adjustment, simplified retrospective adjustment, or non-retrospective adjustment), the enterprise must follow such guidance. To be specific:
– Retrospective adjustment or non-retrospective adjustment shall be carried out in accordance with Vietnam’s Accounting Standard No. 29 – Changes in Accounting Policies, Accounting Estimates and Errors.
– The simplified retrospective adjustment method does not require restating comparative figures from the first affected period but calculates the cumulative impact as of the first day of the accounting period in which the new accounting policies are applied, and adjusts the relevant asset and liability items to retained earnings or other equity items as of that date.
b) In cases where the enterprise must change its accounting policies due to the first-time application of legal regulations or Vietnam’s Accounting Standards, accounting regulations without requirements retrospective adjustment or simplified retrospective adjustment, non-retrospective adjustment method may be applied.
c) In cases where the enterprise voluntarily changes its accounting policies, retrospective adjustment shall be applied to such changes.
2. In cases where an enterprise invests in bonds with discounts or bond premiums and the bonds have not yet matured on the effective date of this Circular, it may choose to apply either the retrospective adjustment method or simplified retrospective adjustment method as instructed in Clause 1 of this Article to account for the discounts or bond premiums in the financial statements of the first period in which this Circular is applied.
3. If an enterprise has foreign exchange differences arising from conversion of its accounting currency from VND to another currency or vice versa, and such differences have been reflected in the credit or debit balance of Account 412 – Asset Revaluation Differences and presented in the balance sheet, the enterprise shall transfer the credit or debit balance of Account 412 to Account 421 – Retained Earnings (Account 4211), and must clearly disclose in the Financial Statement Notes the reasons and impacts on Financial Statements.
4. If an enterprise has been recording accrued expenses for major repairs of fixed assets, but the repairs have not been carried out by the effective date of this Circular, the enterprise shall stop recording accrued expenses for major repairs of fixed assets. When the major repairs are carried out, the enterprise shall offset the actual major repair expenses against the previously accrued amount. Any difference between the accrued expenses and actual expenses shall be gradually allocated to operating expenses over each period.
Article 31. Implementation clauses
1. This Circular comes into force from January 01, 2026 and is applicable to fiscal years starting from or after January 01, 2026. This Circular supersedes Circular No. 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance on corporate accounting (except the cases specified in Clause 2 of this Article), Circular No. 75/2015/TT-BTC dated May 18, 2015 on Amendments to Article 128 of Circular No. 200/2014/TT-BTC, Circular No. 53/2016/TT-BTC dated March 21, 2016 on Amendments to some Articles of Circular No. 200/2014/TT-BTC, and Circular No. 195/2012/TT-BTC dated November 15, 2012 on accounting for investors.
2. Contents related to equitization of state-owned enterprises in Clause 3.11, Clause 3.12 Article 21; Clause 3.3 Article 35; Point h, i Clause 3 Article 38; Point c Clause 5 Article 40; Point c Clause 3.1, Point d Clause 3.2, Point e Clause 3.3, Point d Clause 3.4 Article 45; Point k, l, m Clause 3 Article 47; Point l Clause 3 Article 54; Clause 3.2, Clause 3.9 Article 57; Point đ Clause 3 Article 62; Point p Clause 3 Article 63; Clause 3.13 Article 67; Article 71; Point g Clause 3 Article 74; Point d Clause 3 Article 77; Clause 3.15, Clause 3.16 Article 92; Point m Clause 3 Article 93; Point d Clause 3 Article 94 of Circular No. 200/2014/TT-BTC shall continue to be implemented until replacing documents are issued.
Small and medium enterprises, non-public facilities and other accounting units may choose to apply this Circular to suit the characteristics of their business operation and management requirements, in which cases this Circular must be applied consistently for at least one full accounting year. When an enterprise changes its accounting regime, it must restate comparative figures and information in a manner similar to a change in accounting policy, and explain the reasons and impacts of such change in the Financial Statement Notes as prescribed.
4. Ministries, central authorities, the People’s Committees, Departments of Finance and Tax Offices of provinces and cities shall instruct enterprises to implement this Circular. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance for settlement./.
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PP MINISTER Nguyen Duc Tam |
