Circular 77/2017/TT-BTC: Units of measurement in accounting in Vietnam

Currency and Measurement Units in Accounting in Vietnam

The currency used in accounting is the Vietnamese Dong (national symbol “đ”, international symbol “VND”). Foreign currency accounting must be logged in the original currency and converted to Vietnamese Dong according to the foreign exchange rate stipulated by the Ministry of Finance at the time of accounting. In specific cases, if there are different exchange rates specified by the competent State agencies, the accounting will follow those regulations.

The units of measure used in accounting are the legal measurement units of the State (ton, quintal, hectogram, kilogram, square meter, cubic meter, and other measurement units as prescribed by measurement laws). For valuable items that cannot be converted into money, the book value is calculated at a conventional price of 01 VND for 01 unit of physical measure as the unit of calculation. If necessary, additional measurement units can be used in accordance with specific regulations in management.

Rounding Rules for Financial Reporting in Vietnam

When preparing financial reports or disclosing financial reports using rounded currency units, the accounting unit may round numbers as follows:

- For Vietnamese Dong: If the digit after the units place (i.e., the first decimal place) is 05 or higher, it should be increased by 01 unit; if it is less than 05, it is not counted.

- For foreign currencies: If the thousandths place digit (the third decimal place) is 05 or higher, it should be increased by one-hundredth (1%) unit; if it is less than 05, it is not counted.

In the case of foreign exchange rate conversion for amounts in Vietnamese Dong that have been converted, the rounding method will also be implemented as prescribed in Clause 3 of Article 9 of Circular 77/2017/TT-BTC.

For further details, refer to: Circular 77/2017/TT-BTC, effective from September 12, 2017.

- Nguyen Trinh -

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