What are the accounting subjects with regard to the fields of banking, credit, insurance, securities, and financial investment in Vietnam?
What are the accounting subjects with regard to the fields of banking, credit, insurance, securities, and financial investment in Vietnam?
Pursuant to Clause 4, Article 8 of the 2015 Law on Accounting in Vietnam as follows:
Accounting subjects
…
4. Accounting subjects with regard to the fields of banking, credit, insurance, securities, and financial investment include:
a) The subjects specified in Clause 3 of this Article;
b) Financial and credit investment;
c) Internal and external payments of the accounting unit;
d) Commitments, guarantees, valuable papers.
Thus, accounting subjects with regard to the fields of banking, credit, insurance, securities, and financial investment include:
- The subjects:
+ Assets;
+ Liability and owner’s capital;
+ Revenues, operating cost, incomes, and other cots;
+ Taxes and amounts payable to state budget;
+ Business outcome and distribution thereof;
+ Other property, assets, and liabilities related to the accounting unit.
- Financial and credit investment;
- Internal and external payments of the accounting unit;
- Commitments, guarantees, valuable papers.
What are the accounting subjects with regard to the fields of banking, credit, insurance, securities, and financial investment in Vietnam?
What are the regulations on units for accounting in Vietnam?
Pursuant to Article 10 of the 2015 Law on Accounting in Vietnam stipulating as follows:
Units for accounting in Vietnam
1. The accounting currency is Vietnam dong; its Vietnamese symbol is “đ” and international symbol is "VND”. Where an economic/financial transaction in a foreign currency occurs, the accounting unit must record the foreign currency and VND at the actual exchange rate, unless otherwise prescribed by law; if there is not exchange rate between the foreign currency and VND, it shall be exchanged into another foreign currency that has an exchange rate with VND.
An accounting unit whose most revenues and expenditures are in a foreign currency may use such foreign currency as the accounting currency and has to take legal responsibility for such action and notify its supervisory tax authority. When making a financial statement which is used in Vietnam, the accounting unit must convert the foreign currency into VND at the actual exchange rate, unless otherwise prescribed by law.
2. Items and working hours used as units for accounting are legal units of measurement of Socialist Republic of Vietnam; Where an accounting unit uses another unit of measurement, it must be converted into a legal unit of Socialist Republic of Vietnam.
3. Accounting units are allowed to round numbers, use abbreviated units when making or publishing their financial statements.
4. The government shall elaborate and provide guidance on implementation of this Article.
Thus, the accounting currency is Vietnam dong; its Vietnamese symbol is “đ” and international symbol is "VND”.
Where an economic/financial transaction in a foreign currency occurs, the accounting unit must record the foreign currency and VND at the actual exchange rate, unless otherwise prescribed by law; if there is not exchange rate between the foreign currency and VND, it shall be exchanged into another foreign currency that has an exchange rate with VND.
What are the regulations on text and numbers for accounting?
Pursuant to Article 11 of the 2015 Law on Accounting in Vietnam providing as follows:
Text and numbers for accounting
1. The language of accounting shall be Vietnamese. Where a foreign language must be used on an accounting record, accounting book, or financial statement which is used in Vietnam, it is required to use both Vietnamese and that foreign language.
2. Numbers used for accounting are Arabic numerals; the thousands separator is a dot (.); and the decimal mark is a comma (,).
3. With regard to foreign enterprises, branches of foreign enterprises or foreign organizations who have to sent their financial statements to the parent companies or overseas organization, or share the same transaction management software programs with the parent companies or overseas organization may use a comma (,) as the thousands separator and a dot as a decimal mark. In this case, it is required to be noted in the accounting documents, accounting books, and financial statements; the financial statements submitted to tax authorities, statistics authorities, and other competent authorities shall comply with Clause 2 of this Article.
Thus, the language of accounting shall be Vietnamese. Where a foreign language must be used on an accounting record, accounting book, or financial statement which is used in Vietnam, it is required to use both Vietnamese and that foreign language.
Numbers used for accounting are Arabic numerals; the thousands separator is a dot (.); and the decimal mark is a comma (,).
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