05 regulations on accounting books under the Law on Accounting in Vietnam

05 regulations on accounting books under the Law on Accounting in Vietnam (Internet image)

1. What is the use of accounting books?

According to Clause 1, Article 24 of the Law on Accounting 2015, accounting books are used for recording economic/financial transactions that occurred and are related to the accounting unit.

2. Contents of accounting books in Vietnam

- 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.

- Each accounting book must have:

+ 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.

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

(Clause 2, 3, 4, Article 24 of the Law on Accounting 2015)

3. Accounting book system in Vietnam

- Each accounting unit shall select an accounting book system from the accounting book systems established by the Ministry of Finance.

- Each accounting unit shall use only one accounting book system for an annual accounting period.

- The accounting unit may detail the selected accounting books to serve its purpose.

4. Opening, recording, closing, and retention of accounting books in Vietnam

- 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.

- Accounting records are the basis for making accounting books.

- 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.

- 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.

- Information and data on the accounting books must be recorded by pen, must not be inserted at the top or bottom and must not overlap; no lines shall be skipped; any empty space of the page must be crossed out; if one page is not enough, a sum must be done at the end of each page and carried forward to the next page.

- The accounting unit must close its accounting books at the end of the accounting period before making the financial statement and in other cases specified by law.

- Accounting units may make electronic accounting books. Electronic accounting books must comply with regulations on accounting books in Article 24, Article 25, Clause 1, 2, 3, 4, and 6 of Article 26 of the Law on Accounting 2015, except for regulations on the overlapping seal.

After electronic accounting books are closed, they must be printed out and bound into books for each annual accounting period in order to be retained.

If electronic accounting books are stored in electronic devices instead of being printed, it is required to ensure safety and security of information and accessibility during the retention period.

(Article 26 of the Law on Accounting 2015)

5. Correcting accounting books in Vietnam

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

+ 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.

- 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.

- 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.

- Rectification of electronic accounting books shall apply the method specified in Point c Clause 1 of Article 27 of the Law on Accounting 2015.

(Article 27 of the Law on Accounting 2015)

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