When does the accounting year begin and end in Vietnam?
When does the accounting year begin and end in Vietnam?
Pursuant to Clause 14 Article 4 of the Accounting Law 2015, regulations on the accounting period are as follows:
Explanation of terms
In this Law, the terms below are construed as follows:
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14. The accounting period is the period from when the accounting unit starts recording the accounting books to when it finishes recording and closes the accounting books to prepare financial statements.
- Economic and financial transactions are activities that specifically increase or decrease the assets and sources of asset formation of the accounting unit.
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Additionally, the time for determining the annual accounting period is stipulated in Clause 1 Article 12 of the Accounting Law 2015 as follows:
Accounting Period
- The accounting period includes the annual accounting period, quarterly accounting period, and monthly accounting period, specified as follows:
a) The annual accounting period is 12 months, starting from January 1 to December 31 of the calendar year. An accounting unit with specific organizational and operational characteristics may choose the annual accounting period as a full 12 months according to the calendar year, starting from the beginning of the first month of this quarter to the end of the last month of the quarter preceding the following year and must notify the financial and tax authorities;
b) The quarterly accounting period is 3 months, starting from the beginning of the first day of the first month of the quarter to the end of the last day of the last month of the quarter;
c) The monthly accounting period is 1 month, starting from the beginning of the first day to the end of the last day of the month.
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According to this regulation, the annual accounting period is 12 months, starting from January 1 and ending on December 31 of the calendar year.
Note: An accounting unit with specific organizational and operational characteristics may choose the annual accounting period as a full 12 months according to the calendar year, starting from the beginning of the first month of this quarter to the end of the last month of the quarter preceding the following year and must notify the financial and tax authorities.
When shall the sole proprietorships submit annual financial statement for 2024 after the end of accounting period in Vietnam?
Pursuant to Article 109 of Circular 200/2014/TT-BTC, regulations on the deadline for submitting financial statements are as follows:
Deadline for submitting financial statements
- For state enterprises
a) Deadline for submitting quarterly financial statements:
- Accounting units must submit quarterly financial statements no later than 20 days from the end of the quarterly accounting period; for parent companies and State Corporations, no later than 45 days;
- Accounting units affiliated with the enterprise, State Corporation must submit quarterly financial statements to the parent company, Corporation following the deadline set by the parent company, Corporation.
b) Deadline for submitting annual financial statements:
- Accounting units must submit annual financial statements no later than 30 days from the end of the annual accounting period; for parent companies and State Corporations, no later than 90 days;
- Accounting units affiliated with the State Corporation must submit annual financial statements to the parent company, Corporation following the deadline set by the parent company, Corporation.
- For other types of enterprises
a) Accounting units that are sole proprietorships and partnerships must submit annual financial statements no later than 30 days from the end of the annual accounting period; for other accounting units, the deadline is no later than 90 days;
b) Affiliated accounting units must submit annual financial statements to the superior accounting unit according to the deadline set by the superior accounting unit.
According to the above regulations, sole proprietorships must submit the annual financial statement for 2024 no later than 30 days from the end of the annual accounting period.
Shall sole proprietorships present the financial statement consistently across accounting periods in Vietnam?
Pursuant to Clause 2 Article 29 of the Accounting Law 2015 regulating financial statements of the accounting unit as follows:
Financial statements of the accounting unit
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- The preparation of financial statements of the accounting unit is executed as follows:
a) The accounting unit must prepare financial statements at the end of the annual accounting period; if the law requires preparation of financial statements according to another accounting period, the accounting unit must prepare according to that period;
b) The preparation of financial statements must be based on data after closing the accounting books. The superior accounting unit must prepare consolidated financial statements or unified financial statements based on the financial statements of the accounting units within the same superior accounting unit;
c) Financial statements must be prepared with the correct content, method, and presented consistently across accounting periods; if financial statements are presented differently across accounting periods, reasons must be clearly explained;
d) Financial statements must bear the signatures of the preparer, chief accountant, and the legal representative of the accounting unit. Those who sign the financial statements must be responsible for the content of the report.
- The annual financial statements of the accounting unit must be submitted to the competent state agencies within 90 days from the end of the annual accounting period, as prescribed by law.
- The Ministry of Finance shall detail financial statementing for each field of activity; responsibilities, subjects, frequency of preparation, methodology of preparation, deadline for submission, place of submission, and financial statement disclosure.
According to the above regulation, sole proprietorships must present the financial statement consistently across accounting periods; if financial statements are presented differently across accounting periods, reasons must be clearly explained.
