Which entities are recipients of financial statements in Vietnam? What is the monetary unit in accounting?
What is the monetary unit in accounting in Vietnam?
Pursuant to Circular 200/2014/TT-BTC on guidelines for accounting policies for enterprises of the Ministry of Finance.
The regulations on monetary unit in Article 3 of Circular 200/2014/TT-BTC are as follows:
Monetary unit in accounting
“Monetary unit in accounting” means Vietnamese dong (national sign: “đ”; international sign: “VND”) used for bookkeeping, preparation and presentation of financial statements of enterprises. If an accounting unit that mainly receives revenues and pays expenses in foreign currencies, provided that it conforms to standards prescribed in Article 4 of this Circular may choose a type of foreign currencies as a monetary unit for bookkeeping.
According to regulations, in an enterprise's financial statements, the accounting currency is Vietnam Dong.
According to the provisions of Clause 1, Article 5, Circular 200/2014/TT-BTC stipulates the following:
Conversion of financial statements made in foreign currency into Vietnamese dong
1. If an enterprise uses a foreign currency as monetary unit in accounting, it must not only prepare a financial statement in foreign currency but also converse their financial statement into Vietnamese dong when announcing and submitting the financial statement to regulatory authorities.
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Thus, in principle, the currency unit in financial statements according to Vietnamese law must be Vietnamese dong (national sign: “đ”; international sign: “VND”). If an enterprise uses a foreign currency as monetary unit in accounting, it must not only prepare a financial statement in foreign currency but also converse their financial statement into Vietnamese dong when announcing and submitting the financial statement to regulatory authorities.
The above regulations also clearly state that financial statements cannot use two currencies at the same time.
Which entities are recipients of financial statements in Vietnam? What is the monetary unit in accounting?
Which entities are recipients of financial statements in Vietnam?
Pursuant to Article 110 of Circular 200/2014/TT-BTC regulations on recipients of financial statements as follows:
- State-owned enterprises in central-affiliated cities and provinces must prepare and submit financial statement to the Service of Finance in central-affiliated cities and provinces. Central state-owned enterprises must submit financial statements to the Ministry of Finance (Department of Corporate Finance).
+ State-owned enterprises such as commercial banks, lottery companies, credit institutions, insurers, securities trading companies must submit financial statements to the Ministry of Finance (Department of Banking and Finance or Administration of Insurance Supervision).
+ Securities trading companies and public companies must submit financial statements to the State Securities Commission and the Stock Exchange.
- Enterprises must submit financial statements to supervisory tax authority in local. State-owned general companies must submit financial statements to the Ministry of Finance (General Department of Taxation).
- Enterprises having superior accounting units must submit financial statements to the superior accounting unit in accordance with the provisions of the superior accounting units.
- Enterprises required for financial audit by law must be audited prior to submission of financial statements in accordance with regulations. The financial statements of enterprises audited must be enclosed with the audit report when being submitted to State management agencies superior enterprises.
- The financial agency to which enterprises have foreign direct investment (FDI) must submit financial statements is the Service of Finance in central-affiliated cities and provinces where the enterprises register their main business office .
- state-owned enterprises owning 100% of the charter capital, in addition to the agencies where enterprises must submit financial statements as defined above, they must also submit financial statements to the agencies, organizations assigned, decentralized to exercise rights of owners under Decree No. 99/2012 / ND-CP and documents amending, supplementing, replacing.
- Enterprises (including domestic enterprises and foreign-invested enterprises ) whose headquarters are in processing and exporting zones, industrial zones, hi-tech zones must also submit annual financial statements to the management board of processing and exporting zones , industrial zones , hi-tech zones if required.
Note: This regulation provides accounting guidance applicable to enterprises in all fields and all economic sectors. SMEs that are performing accounting according to the Accounting Regime applicable to SMEs can apply this regulation to make accounting suitable to their business characteristics and management requirements.
Vietnam: If there are errors in the annual consolidated financial statements submitted to state agencies, shall they be adjusted?
Based on Article 17 of Circular 99/2018/TT-BTC on adjusting data in the consolidated financial statements, the regulations regarding the adjustment of data in the consolidated financial statements are as follows:
In cases where errors are detected during the consolidation of reports by the higher-level accounting unit that require adjustment to the reported data of the subsidiary accounting unit (before submitting the annual consolidated financial statements to the competent state authority), the subsidiary accounting unit is required to adjust the data, prepare and resend the financial report of the reporting year.
In cases where errors are detected after the consolidated financial statements for the year have been submitted to the competent state authority, the errors must be corrected in the reported data of the year in which the errors were found. Clear explanations must be provided regarding the correction, unless the competent authority requires the adjustment of data and allows for the preparation of a revised consolidated financial report.
Therefore, if errors are discovered after the consolidated financial statements for the year have been submitted to the competent state authority, the errors must be corrected in the reported data of the respective year and clear explanations must be provided regarding the correction, unless the competent authority requires the adjustment of data and permits the preparation of a revised consolidated financial report.
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