Notable regulations on correcting accounting books in Vietnam

Notable regulations on correcting accounting books in Vietnam (Internet image) 

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

1. Notable regulations on correcting accounting books in Vietnam

Notable regulations on correcting accounting books in Vietnam according to Article 27 of the Law on Accounting 2015 are as follows:

-  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.

2. Regulations on accounting books

Regulations on accounting books in Vietnam according to Article 24 of the Law on Accounting 2015 are as follows:

- Accounting books are used for recording economic/financial transactions that occurred and are related to the accounting unit.

- 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.

3. Regulations on opening, recording, closing, and retention of accounting books in Vietnam

Regulations on opening, recording, closing, and retention of accounting books in Vietnam according to Article 26 of the Law on Accounting 2015 are as follows:

- Accounting books must be opened at the beginning of the annual accounting period; For newly established accounting units, accounting books must be opened from the date of establishment.

- Accounting units must base on accounting documents to record accounting books.

- Accounting books must be recorded promptly, clearly and completely according to the contents of the books. Information and data recorded in accounting books must be accurate, truthful, and consistent with accounting documents.

- Accounting book entries must follow the chronological order of economic and financial operations. Information and data recorded in the accounting books of the following year must succeed the information and data recorded in the accounting books of the immediately preceding year. Accounting books must be recorded continuously from the time they are opened to the time they are closed.

- Information and data in accounting books must be recorded with pen and ink; Do not write anything above or below; do not overlap; no line spacing; In case the entire page is not written, the part not written must be crossed out; When recording the end of the page, add the total data of the page and transfer the total data to the next page.

- The accounting unit must close the accounting books at the end of the accounting period before preparing financial statements and in other cases as prescribed by law.

- Accounting units are allowed to record accounting books by electronic means. In case of recording accounting books by electronic means, the regulations on accounting books in Article 24, Article 25 and Clauses 1, 2, 3, 4 and 6, Article 26 of the Accounting Law 2015 must be followed, except for closing affixed seal.

After closing the accounting books on electronic media, the accounting books must be printed on paper and bound into separate books for each annual accounting period for storage. In case of not printing on paper but storing accounting books on electronic means, the safety and security of data information must be guaranteed and must be looked up within the storage period.

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