Compilation of 09 Latest Regulations on Financial and Accounting Reporting, Effective from January 01, 2025 – Which Regulations are Included?
Summary of the 09 New Regulations on Financial Accounting Reports, Effective from January 01, 2025, What Do They Include?
Article 9 of Circular 24/2024/TT-BTC stipulates 09 new regulations on financial accounting reports, effective from January 01, 2025, as follows:
(1) The financial reports of an accounting unit are an information system presenting the economic and financial data of the unit based on the principles and formats specified in Circular 24/2024/TT-BTC, reflecting all the economic and financial data activities that occurred during the year for the accounting unit.
(2) Subjects for preparing financial reports
Accounting units must prepare financial reports based on the information and figures after closing the accounting books on the year's end date (December 31). Dependent units must provide information and figures for the accounting unit to prepare financial reports per Circular 24/2024/TT-BTC.
(3) Purpose of financial reports
- Financial reports are used to provide information on the financial situation, operational results, and cash flows of the accounting unit to unit leadership, competent authorities, and relevant parties to review and make decisions in line with the financial situation of the accounting unit.
- The information presented on financial reports helps enhance transparency and accountability regarding the reception and use of resources at the unit per legal regulations.
- The accounting unit's financial reports serve as a basis for consolidating the financial reports of superior accounting units and provide information and data for preparing state financial reports per regulations.
- Additionally, if the information and data on the financial reports prepared per Circular 24/2024/TT-BTC are needed for specific purposes (such as tax calculation), users of the financial reports need to ensure the suitability of the information and data on the financial reports with their specific needs.
(4) Principles and requirements for preparing financial reports
- Financial reports of the accounting unit must be prepared based on accounting information and figures after closing the accounting books.
- Financial reports must be prepared adhering to the principles, content, and methods stipulated, and presented consistently across accounting periods. If there is inconsistency, the accounting unit must explain the reasons.
- Financial reports must genuinely and objectively reflect the content and value of reported indicators; presented systematically with detailed structure on the financial situation, operational results, and cash flows of the accounting unit.
The accounting unit must fully explain the information and figures presented in the Financial Position Report, Operational Results Report, and Cash Flow Report as per Circular 24/2024/TT-BTC.
- The information and figures presented in financial reports following Circular 24/2024/TT-BTC must include all economic and financial transactions within the accounting unit.
Figures presented in the financial report indicators must align and be consistent with the figures recorded in the corresponding accounting ledger accounts.
Omitting information and figures of economic and financial transactions in the year from the accounting unit’s financial reports is considered an act of off-the-books accounting.
The financial reports of the accounting unit must include financial information from both the accounting unit itself and its dependent units. Internal transactions occurring during the year within the accounting unit must be entirely excluded before preparing financial reports, as per Circular 24/2024/TT-BTC.
- Financial reports must be promptly prepared and submitted on time, with information and data clearly and understandably presented, reliable, continuously reflected, where data from one period must follow the data from the previous period.
- Any act of altering information and data on submitted or publicly disclosed financial reports is strictly prohibited.
If it is necessary to adjust the information and data presented on submitted or publicly disclosed financial reports, the adjustments must follow the principles stipulated in Circular 24/2024/TT-BTC and related guiding documents.
(5) Reporting periods
- Accounting units must prepare annual financial reports for the accounting period ending December 31, per the provisions of the Accounting Law 2015.
- In specific cases, accounting units may need to prepare financial reports for other periods as legally required.
(6) Submission deadline and recipients of annual financial reports
- Annual financial reports of the accounting unit must be submitted to competent authorities within 90 days from the end of the annual accounting period per legal provisions.
- Receivers of annual financial reports:
+ Superior accounting unit.
+ Financial authorities and state treasury for accounting units without a superior unit, including:++ Local-managed units submit reports to the same-level financial authorities and the state treasury where transactions occur;++ Centrally-managed units submit reports to the same-level financial authorities and the state treasury (State Accounting Department).
+ Tax authorities if the unit has production, business, and service activities subject to tax as per tax law.
(7) Methods of submitting annual financial reports
Reports can be presented in paper or electronic form, depending on actual conditions and the requirements of the report-receiving authority.
(8) Public disclosure of annual financial reports
Annual financial reports of the accounting unit are disclosed per the Accounting Law and related laws.
(9) List of reports, report templates, and guidelines for preparing financial reports as specified in Appendix IV "Financial Report System" attached to Circular 24/2024/TT-BTC.
For units with specific activities, financial reports can be prepared according to separate guidance or approval from the Ministry of Finance.
Summary of the 09 new regulations on financial accounting reports, effective from January 01, 2025, what do they include? (Image from the Internet)
How are the classification and principles for the use of the accounting account system?
Based on Clause 2, Article 5 of Circular 24/2024/TT-BTC, specifying the classification and principles for using the accounting account system as follows:
- In-book accounts include accounts from class 1 to class 9 and are double-entry (entries between accounts). In-book accounts reflect the asset condition, capital sources, revenue, expenses, and determination of operational results for the period, serving as a basis for financial report preparation.
- Off-book accounts include the 0-class accounts and are single-entry (no entry between accounts). Specifically, the off-book accounts 005, 006, 007, 008, 009, 010, 011, 012, 013 apply to units reflecting the reception and use of budgetary funds settled by year-end per the state budget summary, as a basis for preparing settlement reports. Specifically, as follows:
+ For off-book accounts related to state budget settlement (accounts 005, 006, 007, 008, 009, 010, 011), details must be recorded per the state budget summary, accounting period, and other budget settlement management requirements as per state budget law.
+ For off-book accounts related to settlement of funds from deductible and retained fees, and operational funds required to be settled per the state budget summary (accounts 012, 013), details must be recorded per the state budget summary and other management requirements for these funds' settlement.
- If an economic or financial transaction involves the reception and use of state budget funds, funds from deductible, retained fees, and required settlement operational funds per the state budget summary, accounting must record entry in-account book and off-book, detailed per the state budget summary and appropriate periods.
- For transactions involving the reception and use of foreign aid, foreign project loan funds, entries must be recorded in and out with the state budget per current regulations. After recording, accounting must record off-book for preparing settlement reports following Circular 24/2024/TT-BTC.
When Does Circular 24/2024/TT-BTC Come into Effect?
According to Article 13 of Circular 24/2024/TT-BTC regarding the effective date:
Effective Date
1. This Circular takes effect from January 01, 2025, and applies from the fiscal year 2025.
2. The following Circulars cease to be effective from the date this Circular takes effect
a) Circular No. 107/2017/TT-BTC dated October 10, 2017, of the Ministry of Finance guiding the administrative accounting regime;
b) Circular No. 108/2018/TT-BTC dated November 15, 2018, of the Ministry of Finance guiding national reserve accounting;
c) Circular No. 76/2019/TT-BTC dated November 05, 2019, of the Ministry of Finance guiding accounting for traffic and irrigation infrastructure assets;
d) Circular No. 79/2019/TT-BTC dated November 14, 2019, of the Ministry of Finance guiding the accounting regime for project management boards using public investment funds.
3. References in this Circular to other documents that are amended, supplemented, or replaced shall comply with the new document currently in effect.
Thus, according to the above provisions, Circular 24/2024/TT-BTC takes effect from January 01, 2025, and applies from the fiscal year 2025.
Note: References in Circular 24/2024/TT-BTC to other documents that are amended, supplemented, or replaced shall comply with the new document currently in effect.
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