How to handle burnt accounting documents in Vietnam?

What are accounting documents in Vietnam?

Pursuant to Clause 18 Article 3 of the Law on Accounting in 2015 stipulating accounting documents as follows:

Definitions

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

...

18. Accounting documents are accounting records, accounting books, financial statement, administrative accounting reports, audit reports, accounting inspection reports, and other documents relevant to accounting.

As regulations above, accounting documents are:

+ Accounting records

+ Accounting books

+ Financial statement

+ Administrative accounting reports

+ Audit reports

+ Accounting inspection reports

+ Other documents relevant to accounting.

How to handle burnt accounting documents in Vietnam? - Source: Internet

How to handle burnt accounting documents in Vietnam?

Pursuant to Article 42 of the Law on Accounting in 2015 stipulating responsibility of accounting units for loss or damage of accounting documents as follows:

Responsibility of accounting units for loss or damage of accounting documents

Where accounting documents are lost or damaged, the accounting unit shall immediately:

1. Check, determine the quantity, conditions, cause of the loss or damaged; notify relevant entities and competent authorities;

2. Organize a restoration of damaged accounting documents;

3. Contact entities having transactions and accounting documents for photocopying the documents or certifying the loss or damage of accounting documents;

4. Regarding accounting documents about assets that cannot be restored as set out in Clause 2 and Clause 3 of this Article, it is required to conduct stocktaking to remake the accounting documents that are lost or damaged.

Therefore, in the event of burnt accounting documents, the accounting unit shall handle as follows:

Step 1: The accounting unit shall conduct an inspection, identify, and prepare a minutes on the quantity, status, and cause of the burnt accounting documents;

Step 2: The accounting unit shall notify the relevant organizations and individuals and the competent state agency;

Step 3: The accounting unit shall organize the restoration of the burnt accounting documents.

Step 4: The accounting unit shall contact the organizations and individuals that have transactions with accounting documents and data to have copies or confirmation of the burnt accounting documents.

Note: For accounting documents related to assets that cannot be restored, the assets must be inspected to re-establish the burnt accounting documents.

Who shall be responsible for preservation and retention of accounting documents in Vietnam?

Pursuant to Article 41 of the Law on Accounting in 2015 stipulating preservation and retention of accounting documents as follows:

Preservation and retention of accounting documents

1. Accounting documents must be fully and safely preserved by accounting units.

2. In case of impoundment of confiscation of accounting documents, it is required to have a record and copies of the impounded or confiscated accounting documents; in case of loss or damage of accounting documents, it is required to have a record and copies of documents or a certification.

3. Accounting documents shall be retained for 12 months from the end of the annual accounting period or completion of accounting works.

4. The legal representative of the accounting unit is responsible for the preservation and retention of accounting documents.

5. Duration of retention of accounting documents:

a) For accounting documents serving management and operation of the accounting unit, including those not directly used for making accounting books and financial statements: at least 05 years;

b) For accounting documents directly used for making accounting books, financial statements, accounting books, and annual financial statements: at least 10 years, unless otherwise prescribed by law;

c) For historical accounting documents or those of economic, national security, or national defense importance: permanently.

6. The Government shall regulates types of accounting documents that need retaining, duration of retention, beginning time of retention mentioned in Clause 5 of this Article, places for retention, and procedures for destruction of accounting documents.

As regulations above, the legal representative of the accounting unit is responsible for the preservation and retention of accounting documents.

Best regards!