Accounting works in case of total division, partial division, consolidation of accounting units in Vietnam

Accounting works in case of total division, partial division, consolidation of accounting units in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Accounting works in case of total division of an accounting unit in Vietnam 

- The accounting unit that undergoes a total division shall perform the following works:

+ Close accounting books, conduct stocktaking, determine unpaid debts, and make a financial statement;

+ Distribute assets and unpaid debts, make a transfer note, and make the accounting books according to such transfer note;

+ Transfer accounting documents about the assets and unpaid debts to the new accounting units

- According to the transfer note, new accounting units shall open and make their accounting books in accordance with the Law on Accounting 2015.

2. Accounting works in case of partial division of an accounting unit in Vietnam

- The accounting unit (transferor unit) that undergoes a partial division and establishes a new accounting unit (transferee unit) shall perform the following works:

+ Conduct stocktaking, determine unpaid debts of the transferee unit;

+ Transfer assets and unpaid debts of the transferee unit, make a transfer note, and make accounting books according to such transfer note;

+ Transfer accounting documents about the assets and unpaid debts to the transferee unit; the transferor unit shall retain accounting documents that are not transferred in accordance with Article 41 of the Law on Accounting 2015.

- According to the transfer note, new transferee unit shall open and make their accounting books in accordance with this Law.

3. Accounting works in case of consolidation of accounting units

- Where several accounting units (consolidating units) are consolidated into a new accounting unit (consolidated unit), the following works shall be performed:

+ Close accounting books, conduct stocktaking, determine unpaid debts, and make a financial statement;

+ Transfer all assets and unpaid debts, make a transfer note, and make accounting books according to such transfer note;

+ Transfer all accounting documents to the consolidated unit.

- The consolidated unit shall:

+ Open and make its accounting books according to the transfer note and in conformity with the Law on Accounting 2015;

+ Consolidate financial statements of consolidating units into a financial statement of the consolidated unit;

+ Receive, retain accounting documents of consolidated units.

4. Accounting works in case of acquisition of an accounting unit in Vietnam

- The accounting unit that is acquired by another accounting unit (acquirer) shall:

+ Close accounting books, conduct stocktaking, determine unpaid debts, and make a financial statement;

+ Transfer all assets and unpaid debts, make a transfer note, and make accounting books according to such transfer note;

+ Transfer all accounting documents to the acquirer.

- The acquirer shall make its accounting books according to the transfer note and in conformity with the Law on Accounting 2015.

5. Accounting works in case of conversion of an accounting unit

- The converted accounting unit shall:

+ Close accounting books, conduct stocktaking, determine unpaid debts, and make a financial statement;

+ Transfer all assets and unpaid debts, make a transfer note, and make accounting books according to such transfer note;

+ Transfer all accounting documents to the converted accounting unit.

- According to the transfer note, new converted unit shall open and make their accounting books in accordance with this Law.

6. Accounting works in case of dissolution, shutdown, or bankruptcy of an accounting unit

- The accounting unit that is dissolved or shut down shall:

+ Close accounting books, conduct stocktaking, determine unpaid debts, and make a financial statement;

+ Open an accounting book to monitor economic/financial transaction related to the dissolution or shutdown;

+ Transfer all accounting documents of the dissolved or shut down accounting unit to the superior accounting unit or an entity in charge of document retention in accordance with Article 41 of the Law on Accounting 2015.

- Where an accounting unit is declared bankrupt, the declaring court shall appoint a person in charge of the accounting works specified in Clause 1 of Article 48 of the Law on Accounting 2015.

Legal basis: Articles 43, 44, 45, 46, 47 and 48 of the Law on Accounting 2015.

Ho Quoc Tuan

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