Latest regulations on System of the accounting standards and accounting ethics in Vietnam

System of the accounting standards and accounting ethics in Vietnam (Illustration)

System of the accounting standards and accounting ethics in Vietnam

1. Accounting Standards

Article 7, Clause 1, Accounting Law 2015 stipulates: “Accounting standards include basic accounting regulations and methods to prepare financial statements.”

The accounting standards were promulgated by the Ministry of Finance of Vietnam through 05 batches including 05 Decisions on Accounting Standards and 04 Circulars guiding the implementation of accounting standards, specifically as follows:

- The 1st batch was issued on December 31, 2001, under Decision 149/2001/QD-BTC, comprising the following 4 standards:

1. Standard No. 02 - Inventory;
2. Standard No. 03 - Tangible fixed assets;
3. Standard No. 04 - Intangible fixed assets;
4. Standard No. 14 - Revenue and other incomes.

- The 2nd batch was issued on December 31, 2002, under Decision 165/2002/QD-BTC, comprising the following 6 standards:

1. Standard No. 01 - General standards;
2. Standard No. 06 - Lease of assets;
3. Standard No. 10 - Effects of changes in foreign exchange rates;
4. Standard No. 15 - Construction contracts;
5. Standard No. 16 - Borrowing costs;
6. Standard No. 24 - Cash flow statements.

- The 3rd batch was issued on December 30, 2003, under Decision 234/2003/QD-BTC, comprising the following 6 standards:

1. Standard No. 05 - Investment property;
2. Standard No. 07 - Accounting for investments in associates;
3. Standard No. 08 - Financial information on joint ventures;
4. Standard No. 21 - Presentation of financial statements;
5. Standard No. 25 - Consolidated financial statements and accounting for investments in subsidiaries;
6. Standard No. 26 - Related party disclosures.

In the 1st, 2nd, and 3rd batches, the Ministry of Finance of Vietnam issued Circular 161/2007/TT-BTC guiding the implementation of sixteen (16) accounting standards issued under Decision 149/2001/QD-BTC, Decision 165/2002/QD-BTC, and Decision 234/2003/QD-BTC.

- The 4th batch was issued on February 15, 2005, under Decision 12/2005/QD-BTC, comprising the following 6 standards:

1. Standard No. 17 - Corporate income tax;
2. Standard No. 22 - Supplementary presentation of financial statements for banks and similar financial institutions;
3. Standard No. 23 - Events after the reporting period;
4. Standard No. 27 - Interim financial reporting;
5. Standard No. 28 - Segment reporting;
6. Standard No. 29 - Changes in accounting policies, estimates.

In the 4th batch, the Ministry of Finance of Vietnam issued Circular 20/2006/TT-BTC guiding the accounting for six accounting standards issued under Decision 12/2005/QD-BTC.

- The 5th batch was issued on December 28, 2005, under Decision 12/2005/QD-BTC, comprising the following 4 standards:

1. Standard No. 11 - “Business combinations”;
2. Standard No. 18 - “Provisions, contingent assets, and contingent liabilities”;
3. Standard No. 19 - “Insurance contracts”;
4. Standard No. 30 - “Earnings per share”.

In the 5th batch, the Ministry of Finance of Vietnam issued Circular 21/2006/TT-BTC guiding the accounting for four (04) accounting standards issued under Decision 100/2005/QD-BTC.

2. Professional Ethics for Accountants

Article 7, Clause 2, Accounting Law 2015 stipulates: “Professional ethics for accountants include regulations and guidelines on principles, content application of ethical standards to accountants, practicing accountants, accounting service providers, and business households providing accounting services.”

On May 8, 2015, the Ministry of Finance of Vietnam issued Circular 70/2015/TT-BTC on professional ethics for accountants and auditors. It includes 03 parts:

- Part A of the standards applies to accounting service enterprises, auditing enterprises, branches of foreign auditing enterprises in Vietnam, and persons with accounting practicing certificates, auditor certificates.

- Part B of the standards applies to accounting service enterprises, auditing enterprises, branches of foreign auditing enterprises in Vietnam, and persons with accounting practicing certificates, auditor certificates working in accounting service enterprises, auditing enterprises, branches of foreign auditing enterprises in Vietnam.

- Part C of the standards applies to persons with accounting practicing certificates, auditor certificates working in enterprises.

Le Hai

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