Vietnam: How to handle errors founded in accounting books after the financial statement has been submitted?

Vietnam: What content do accounting books contain?

Pursuant to Article 24 of the Law on Accounting 2015, provisions regarding accounting books are as follows:

Accounting Books

1. Accounting books are used to record, systematize, and preserve all economic and financial transactions that have occurred in connection with the accounting unit.

2. The accounting book must clearly state the name of the accounting unit; the name of the book; the date, month, and year of book creation; the date, month, and year of book closure; signatures of the person creating the book, the chief accountant, and the legal representative of the accounting unit; the number of pages; and an overlapping seal.

3. Accounting books must contain the following essential contents:

a) Date, month, and year of book entry;

b) Reference number and date, month, year of the accounting document used as a basis for book entry;

c) A summary of the content of the economic and financial transaction;

d) The amount of the economic and financial transaction entered into the accounting accounts;

đ) Opening balance, period transactions, period closing balance.

4. Accounting books comprise general accounting books and detailed accounting books.

5. The Ministry of Finance specifies in detail the accounting books.

Accounting books are used to record, systematize, and preserve all economic and financial transactions that have occurred in connection with the accounting unit. The accounting book must have the following essential contents:

- Reference number and date, month, year of the accounting document used as a basis for book entry;

- A summary of the content of the economic and financial transaction;

- The amount of the economic and financial transaction entered into the accounting accounts;

- Opening balance, period transactions, period closing balance.

Vietnam: How to handle errors founded in accounting books after the financial statement has been submitted?

According to Article 27 of the Law on Accounting 2015, the regulation on correcting accounting books is as follows:

Correcting Accounting Books

1. When an error in the accounting books is founded, erasure that deletes information traces or incorrect data is not allowed. Corrections must be made using one of the following three methods:

a) Corrective entry by drawing a straight line through the error and writing the correct number or letter above it, and the chief accountant's signature must be placed next to it;

b) Negative entry by rewriting the incorrect number in red ink or enclosing the incorrect number in parentheses, then writing the correct number, and the chief accountant's signature must be placed next to it;

c) Adjusting entry by creating an "adjustment document" and recording the additional differences to be correct.

2. If an error in the accounting books is founded before the annual financial statement is submitted to the competent state authority, it must be corrected in that year's accounting books.

3. If an error in the accounting books is founded after the annual financial statement has been submitted to the competent state authority, it must be corrected in the accounting books of the year the error is discovered, with an explanation for the correction.

4. Correcting accounting books in the case of electronic entries is performed using the method prescribed at point c of clause 1 of this Article.

Thus, if an error in the accounting books is founded after the annual financial statement has been submitted, it must be corrected in the accounting books of the year the error is discovered, with an explanation for this correction.

Note: In the case of electronic entries, correcting accounting books should be done by creating an "adjustment document" and recording the additional differences accurately.

Vietnam: How to handle errors founded in accounting books after the financial statement has been submitted? (Image from the Internet)

What is the latest deadline for submitting annual financial statements for small and medium-sized enterprises in Vietnam?

Based on clause 1 of Article 80 of Circular 133/2016/TT-BTC, the deadline for submitting annual financial statements for small and medium-sized enterprises in 2025 is stipulated as follows:

Responsibility, timeframe for preparing and submitting financial statements

1. Responsibility, timeframe for preparing and submitting financial statements:

a) All small and medium-sized enterprises must prepare and submit annual financial statements no later than 90 days from the end of the financial year to the relevant authorities as regulated.

b) In addition to preparing annual financial statements, enterprises may prepare monthly or quarterly financial statements to serve management and business operation needs.

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The deadline for submitting annual financial statements for small and medium-sized enterprises is no later than 90 days from the end of the financial year to the relevant authorities as regulated.

Thus, the deadline for submitting the 2025 annual financial statements for the 2024 tax year (from January 1, 2024, to December 31, 2024) for small and medium-sized enterprises is no later than March 30, 2025.

Where should annual financial statements for small and medium-sized enterprises be submitted in Vietnam?

Based on clause 2 of Article 80 of Circular 133/2016/TT-BTC, the submission locations for annual financial statements are stipulated as follows:

- Enterprises submit annual financial statements to tax authorities, business registration authorities, and statistical agencies.

- Enterprises (including domestic enterprises and foreign-invested enterprises) with headquarters located in export processing zones, industrial zones, or high-tech parks, in addition to submitting annual financial statements to the authorized agencies (tax authority, business registration authority, statistical agency) are also required to submit annual financial statements to the management boards of export processing zones, industrial zones, or high-tech parks if requested.