According to the law in Vietnam, what are accounting records? What are contents of accounting records in Vietnam?

According to the law in Vietnam, what are accounting records?

Pursuant to Clause 3 Article 3 of the Law on Accounting in 2015 stipulating accounting records:

Definitions

In this Law, the terms below are construed as follows:

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3. Accounting records are documents and storage devices that contain economic/financial transactions that occur and have been complete as the basis for making accounting books.

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Accounting records are documents and storage devices that contain economic/financial transactions that occur and have been complete as the basis for making accounting books.

Accounting records play a crucial role in accounting as they serve as the basis for recording financial transactions, preparing financial reports, conducting financial audits, and ensuring financial control. They also serve as legal evidence in case of economic disputes.

Accounting records are classified according to various criteria, including:

- Based on the nature of the transaction: Accounting records are classified into documents for receipts, documents for payments, documents for purchases, documents for sales, and adjustment documents.

- Based on the form: Accounting records are classified into self-prepared documents and documents prepared by others.

- Based on the time of preparation: Accounting records are classified into documents prepared before the occurrence of the transaction, documents prepared at the same time as the occurrence of the transaction, and documents prepared after the occurrence of the transaction.

- Based on the method of preparation: Accounting records are classified into documents prepared manually and documents prepared using computerized methods.

Accounting records must be prepared in a complete, accurate, timely, and properly stored manner.

Accounting records are of significant importance in accounting as they serve as the basis for recording financial transactions, preparing financial reports, conducting financial audits, and serving as legal evidence in case of economic disputes.

- Basis for recording financial transactions: Accounting entries must be based on valid, accurate, and complete accounting documents.

- Basis for preparing financial reports: Information in financial reports is derived from the accounting ledger, which is prepared based on accounting documents. Therefore, accounting records serve as the basis for preparing financial reports.

- Basis for financial audits and control: Financial audits and control aim to ensure the accuracy and integrity of accounting information and prevent fraudulent activities and violations of financial regulations.

- Legal evidence in case of economic disputes: In case of economic disputes, accounting records serve as legal evidence for determining the rights and obligations of the parties involved.

According to the law in Vietnam, what are accounting records? What are contents of accounting records in Vietnam? - image from internet

What are contents of accounting records in Vietnam?

Pursuant to Article 16 of the Law on Accounting in 2015 stipulating contents of accounting records in Vietnam:

Contents of accounting records

1. An accounting record must have:

a) Name and number of the accounting record;

b) Date of the accounting record;

c) Name, address of the entity that makes the accounting record;

d) Name, address of the entity that receives the accounting record;

dd) Contents of the economic/financial transaction that occurs;

e) Quantity, unit price, amount of the economic/financial transaction in number; total amount of accounting records serving collection or payment of money in both number and words;

g) Signatures, full names of the persons who make, approve the accounting record, and relevant persons

2. Apart from the primary contents specified in Clause 1 of this Article, an accounting record may have other contents depending on its type.

As regulations above, an accounting record must have:

- Name and number of the accounting record;

- Date of the accounting record;

- Name, address of the entity that makes the accounting record;

- Name, address of the entity that receives the accounting record;

- Contents of the economic/financial transaction that occurs;

- Quantity, unit price, amount of the economic/financial transaction in number; total amount of accounting records serving collection or payment of money in both number and words;

- Signatures, full names of the persons who make, approve the accounting record, and relevant persons

Is it permissible to use red ink on accounting records in Vietnam?

Pursuant to Article 19 of the Law on Accounting in 2015 stipulating regulations on signing accounting records in Vietnam:

Signing accounting records

1. An accounting record must sufficient signatures. Accounting records must be signed with indelible ink. It is prohibited to use red ink or rubber signature stamps on accounting records. Signatures on accounting records appended by the same person must be consistent. The Government shall provide for signatures on accounting records appended by visually impaired people.

2. Accounting records must be signed by competent persons or authorized persons. It is prohibited to sign an accounting record that does not have sufficient content.

3. Accounting records on payment must be signed by the person competent to approve payments and the chief accountant or an authorized person before making such payment. Every copies of an accounting record on payment must be signed.

4. Electronic records must bear electronic signatures. Signatures on electronic records are as valid as signatures on physical records.

As regulations above, it is not permissible to use red ink on accounting records in Vietnam. In addition, accounting records must be signed with indelible ink. Signatures on accounting records appended by the same person must be consistent.

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