Effect of Circular 24/2024/TT-BTC on providing guidelines for public sector accounting in Vietnam

When does Circular 24/2024/TT-BTC take effect in Vietnam? ​​What are the responsibility of relevant authorities and units? (Internet image)

1. Effect of Circular 24/2024/TT-BTC on providing guidelines for public sector accounting in Vietnam

On April 17, 2024, the Minister of Finance issued Circular 24/2024/TT-BTC on providing guidelines for public sector accounting.

Article 13 of Circular 24/2024/TT-BTC stipulates the effective implementation as follows:

- Circular 24/2024/TT-BTC comes into force from January 01, 2025 and applies from the fiscal year 2025.

- As from the date of entry into force of Circular 24/2024/TT-BTC, the documents listed hereunder shall cease to have effect: 

+ Circular 107/2017/TT-BTC dated October 10, 2017 of the Ministry of Finance of Vietnam;

+ Circular 108/2018/TT-BTC dated November 15, 2018 of the Ministry of Finance of Vietnam;

+ Circular 76/2019/TT-BTC dated November 05, 2019 of the Ministry of Finance of Vietnam;

+ Circular 79/2019/TT-BTC dated November 14, 2019 of the Ministry of Finance of Vietnam.

- If any legislative documents referred to in Circular 24/2024/TT-BTC are amended or replaced, the new ones shall apply.

2. What are the responsibility of relevant authorities and units in implementing Circular 24/2024/TT-BTC in Vietnam?

Article 12 of Circular 24/2024/TT-BTC stipulates the responsibility of relevant authorities and units in Vietnam as follows:

- Finance authorities and state treasuries

+ Finance authorities are responsible for performance of state management of accounting in accordance with regulations of law on accounting; inspection of the compliance with public sector accounting policies by accounting units under their management.

+ Local finance authorities shall cooperate with local competent authorities in providing advice for same-level People’s Committees on plans for organizing local accounting units that must be reasonable, and meet streamlined and professional accounting apparatus requirements to perform accounting works, improve quality of reports submitted by accounting units, and properly and safely manage State cash and assets at units.

+ Finance authorities and state treasuries of same level shall cooperate with units in comparing, verifying, correcting, providing and use data on receipt and use of funding sources, management and use of assets, and other financial activities of accounting units within the ambit of their assigned functions and tasks.

- Level-I estimation units

+ Level-I estimation units that have affiliated units shall, within the ambit of their assigned tasks and powers, organize accounting works for their affiliated units to ensure that all economic/financial transactions that occur at such units must be recorded in their accounting books and financial statements in accordance with provisions of Circular 24/2024/TT-BTC in order to properly and safely manage the State cash and assets.

++ Level-I estimation units must issue documents confirming their affiliated accounting units that are required to prepare financial statements as prescribed in Circular 24/2024/TT-BTC; other units that are not accounting units may be considered as financially dependent units or spending units of accounting units.

++ Level-I estimation units shall issue payment codes to their affiliated accounting units to serve consistent accounting and establish the basis for comparison and exclusion of internal transactions when preparing consolidated financial statements of level-I estimation units as prescribed.

++ Level-I estimation units shall carry out inspection of compliance with accounting policies by their affiliated accounting units.

+ Level-I estimation units that are funded by state budget are considered as accounting units and required to prepare financial statements in accordance with provisions of Circular 24/2024/TT-BTC.

- Accounting units

+ Accounting units shall organize their own accounting apparatus, assign accounting works to their financially dependent units, and instruct them to organize accounting works, and provide information/data for comparison and exclusion of internal transactions and preparation of financial statements of accounting units as prescribed in Circular 24/2024/TT-BTC.

+ Accounting units must open accounting books and fully record economic/financial transactions that occur at their units in conformity with financial mechanisms applied at their units; comply with professional accounting processes prescribed in Circular 24/2024/TT-BTC.

+ Accounting units must make final statements of operating funding and financial statements as prescribed in Circular 24/2024/TT-BTC. Persons whose signatures appear on reports/statements must control or monitor the information/data presented in such reports/statements to ensure their accuracy, matching and conformity with the provisions of Circular 24/2024/TT-BTC and relevant laws.

- Financially dependent units

+ Financially dependent units must open accounting books, fully make entries in their accounting books, and retain accounting documents as assigned by their superior accounting units and in accordance with provisions of Circular 24/2024/TT-BTC.

+ At the end of each accounting period, financially dependent units must provide information/data according to instructions given by their superior accounting units to serve their data consolidation and preparation of financial statements as prescribed in Circular 24/2024/TT-BTC.

Nguyen Minh Khoi

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