Regulations on financial statements of accounting units in Vietnam

Regulations on financial statements of accounting units in Vietnam (Internet image)

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

1. Regulations on financial statements of accounting units in Vietnam

Regulations on financial statements of accounting units according to Article 29 of the Law on Accounting 2015 are as follows:

- Financial statements of an accounting unit are used for aggregating and describing its financial conditions and performance. Financial statements of an accounting unit include:

+ Financial condition statement;

+ Business performance statement;

+ Cash flow statement;

+ Note to financial statements;

+ Other statements defined by law.

- Financial statements of an accounting unit are made as follows:

+ Each accounting unit shall make the financial statement at the end of the annual accounting period, unless otherwise prescribed by law;

+ Financial statements shall be based on figures after accounting books are closed. The superior accounting unit shall make a general financial statement or consolidated financial statement based on financial statements of inferior accounting units;

+ Financial statements must be made correctly in terms of contents, method, and consistency accounting periods; any difference in presentation of financial statements of different accounting periods must be explained;

+ Financial statements shall bear the signatures of the makers, the chief accountant, and the legal representative of the accounting unit. The persons who sign a financial statement are responsible for its content.

- The annual financial statement of an accounting unit shall be submitted to the competent authority within 90 days from the end of the annual accounting period as prescribed by law.

- The Ministry of Finance shall promulgate specific regulations on financial statements in each field; responsibility, maker, period, method, deadline, places for submission of financial statements, and publishing of financial statements.

2. Published contents of financial statement of accounting units in Vietnam

Published contents of financial statement of accounting units according to Article 31 of the Law on Accounting 2015 are as follows:

-  Accounting units using state budget shall publish information about revenues, expenditures of state budget in accordance with the Law on State budget.

- Accounting units that do not use state budget shall publish their annually revenue and expenditure statements.

- Accounting units using the people’s contributions shall publish the purposes and use of such contributions, contributors, contributed amount, results, revenues and expenditures related to such contributions.

- Accounting units doing business shall publish:

+ Assets, liabilities and owner’s capital;

+ Business performance;

+ Development and use of funds;

+ Workers’ incomes;

+ Other contents required by law.

+ Financial statements of accounting units that are, by law, required to be audited must be enclosed with audit reports made by the auditing bodies.

3. Regulations on accounting subjects in Vietnam 

According to Article 8 of the Law on Accounting 2015, the accounting subjects are as follows:

- Accounting subjects with regard to revenues, expenditures of state budget, administrative operation; operation of units and organizations using state budget include:

+ Money, supplies, and fixed assets;

+ Budgets, funds;

+ Internal and external payments of the accounting unit;

+ Revenues, expenditures, and settlement of difference between revenue and expenditure;

+ Revenues, expenditures, and surplus of state budget;

+ Financial, credit investment by the State;

+ Debt and settlement of public debt;

+ Public assets;

+ Other property, assets, and liabilities related to the accounting unit.

- Accounting subjects with regard to operation of units and organizations that do not use state budget include assets and sources of assets specified in Point a, b, c, d, and I Clause 1 of Article 8 of the Law on Accounting 2015.

- Accounting subjects with regard to business operation, except for the activities specified in Clause 4 of Article 8 of the Law on Accounting 2015, include:

+ Assets;

+ Liability and owner’s capital;

+ Revenues, operating cost, incomes, and other cots;

+ Taxes and amounts payable to state budget;

+ Business outcome and distribution of the Law on Accounting 2015;

+ Other property, assets, and liabilities related to the accounting unit.

- Accounting subjects with regard to the fields of banking, credit, insurance, securities, and financial investment include:

+ The subjects specified in Clause 3 of Article 8 of the Law on Accounting 2015;

+ Financial and credit investment;

+ Internal and external payments of the accounting unit;

+ Commitments, guarantees, valuable papers.

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