In Vietnam, what are the manners of correcting an accounting book when an error is found in it?

In Vietnam, what are the manners of correcting an accounting book when an error is found in it?

Pursuant to Clause 1, Article 27 of the 2015 Accounting Law regulating correcting accounting books:

Correcting accounting books

1. If an error is found in an accounting book, they must not be erased and must be rectified in one of the following manners:

a) Cross out the error, write the correct text or number above, and request the chief accountant to sign next to it;

b) Rewrite the incorrect number in red ink or in round brackets, then write the correct number and request the chief accountant to sign next to it;

c) Issue “chứng từ điều chỉnh" (“corrective note”) and write the difference.

2. If an error is found in an accounting book before the annual financial statement is submitted to a competent authority, rectification must be made in the accounting books of the same year.

3. If an error is found in an accounting book after the annual financial statement is submitted to a competent authority, rectification must be made in the accounting books of the year in which the error is found and explanation must be provided.

4. Rectification of electronic accounting books shall apply the method specified in Point c Clause 1 of this Article.

According to this regulation, there are 03 manners to correct accounting books when detecting errors in accounting books:

- Cross out the error, write the correct text or number above, and request the chief accountant to sign next to it;

- Rewrite the incorrect number in red ink or in round brackets, then write the correct number and request the chief accountant to sign next to it;

- Issue “chứng từ điều chỉnh" (“corrective note”) and write the difference.

In Vietnam, what are the manners of correcting an accounting book when an error is found in it? (Image from the Internet)

What is the basis for recording accounting books in Vietnam?

Pursuant to the provisions of Article 26 of the Accounting Law 2015 regulating opening, recording, closing, and retention of accounting books:

Opening, recording, closing, and retention of accounting books

1. Accounting books shall be opened at the beginning of the annual accounting period; new accounting units shall open their accounting books from the inauguration date.

2. Accounting records are the basis for making accounting books.

3. Accounting books must be made clearly, completely, and in a timely manner. Information and data recorded in the accounting books must be accurate, truthful, and consistent with accounting records.

4. Economic/financial transactions must be recorded in the accounting books in chronological order. Information and data recorded in accounting books of the next year must continue those on the accounting books of the preceding year. An accounting book must be continuously made from the beginning to the closing of the book.

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Thus, when the accounting unit makes accounting records, it must be based on accounting documents. Besides, accounting books must be made clearly, completely, and in a timely manner. Information and data recorded in the accounting books must be accurate, truthful, and consistent with accounting records.

What contents must an accounting book contain in Vietnam?

Pursuant to Article 24 of the Accounting Law 2015 regulating accounting books:

Accounting books

1. Accounting books are used for recording economic/financial transactions that occurred and are related to the accounting unit.

2. Each accounting book must specify the name of the accounting unit; name, opening date, closing date of the book; signature of the book maker, chief accountant, legal representative of the accounting unit, page numbers, and overlapping seals.

3. Each accounting book must have:

a) Date of each entry;

b) Numbers and dates of accounting records that serve as the basis for making the entries;

c) Summary of economic/financial transactions that occurred;

d) Amount of money of economic/financial transactions recorded in the accounts;

dd) Opening balance, transactions that occur during the period, and closing balance.

4. Accounting books include the general accounting book and detailed accounting books.

5. The Ministry of Finance shall promulgate specific regulations on accounting books.

Thus, accounting books must have the following main contents:

- Date of each entry;

- Numbers and dates of accounting records that serve as the basis for making the entries;

- Summary of economic/financial transactions that occurred;

- Amount of money of economic/financial transactions recorded in the accounts;

- Opening balance, transactions that occur during the period, and closing balance.

Best regards!