When should an accounting unit conduct annual stocktaking in Vietnam?
When should an accounting unit conduct annual stocktaking in Vietnam? What is duration of retention of accounting documents in Vietnam?
Hello, I have just applied for an internship at an accounting unit. The instructor mentioned that I am going to have to do an annual stocktaking, so when should an accounting unit conduct annual stocktaking in Vietnam? Please advise.
1. When should an accounting unit conduct annual stocktaking in Vietnam?
Pursuant to Article 40 of the 2015 Accounting Law, stocktaking is as follows:
1. Stocktaking means measurement of quantity, verification and assessment of quality and value of existing assets and sources of capital at that time in comparison with figures in the accounting books.
2. An accounting unit shall conduct stocktaking in the following cases:
a) At the end of the annual accounting period;
b) Total division, partial division, consolidation, merger, dissolution, shutdown, bankruptcy, transfer, or lease of the accounting unit;
c) Conversion of type of business of the accounting unit;
d) Occurrence of conflagration, flood, and other unexpected damage;
dd) Re-evaluation of assets under a decision of a competent authority;
e) Other cases prescribed by law.
3. After the stocktaking is done, the accounting unit shall make a stocktaking report. In case of any discrepancies between the stocktaking result and figures on the accounting books, the accounting unit must determine the cause and record the difference on the accounting books before making the financial statement.
4. The stocktaking must truthfully reflect the assets and sources of assets. The persons who make and sign the stocktaking report are responsible for it.
Thus, the accounting unit conduct annual stocktaking at the end of the annual accounting period, except for other cases specified above in Vietnam. After stocktaking, the accounting unit must make a report summarizing the stocktaking results. The stocktaking must accurately reflect the reality of assets and the source of asset formation in accordance with law.
2. What is duration of retention of accounting documents in Vietnam?
According to Article 41 of the 2015 Accounting Law, preservation and retention of accounting documents are as follows:
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.
Thus, duration of retention of accounting documents in Vietnam is divided into: at least 05 years, at least 10 years and permanently.
Best Regards!
