In Vietnam, is it permissible for accounting units to round numbers? In Vietnam, is it permissible to use foreign languages in accounting records?
In Vietnam, is it permissible for accounting units to round numbers? In Vietnam, is it permissible to use foreign languages in accounting records?
Hello Lawnet. I am a student majoring in Accounting - Auditing. There are some regulations on making accounting reports and records that I don't undnerstand. When making those documents, are accounting units allowed to round numbers or keep the original numbers? Can minutes, records and financial statements be used in a foreign language? Looking forward to your consultancy.
In Vietnam, is it permissible for accounting units to round numbers?
Pursuant to Article 10 of the Law on Accounting in 2015 stipulating units for accounting in Vietnam as follows:
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.
As regulations above, when making or publishing final statements, you are permissible to round numbers.
In Vietnam, is it permissible to use foreign languages in accounting records?
Pursuant to Article 11 of the Law on Accounting in 2015 stipulating text and numbers for accounting in Vietnam as follows:
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.
As regulations above, you are permissible to use foreign languages on accounting records, accounting books, or financial statements in Vietnam as long as you use both Vietnamese and those foreign languages in the same document.
Best regards!