What are the cases where an accounting unit shall conduct stocktaking in Vietnam?

What are the cases where an accounting unit shall conduct stocktaking in Vietnam? (Internet image)

Regarding this issue, LawNet responded as follows:

1. What are the cases where an accounting unit shall conduct stocktaking in Vietnam?

According to Clauses 2, 3 and 4, Article 40 of the Law on Accounting 2015, an accounting unit shall conduct stocktaking in the following cases:

- At the end of the annual accounting period;

- Total division, partial division, consolidation, merger, dissolution, shutdown, bankruptcy, transfer, or lease of the accounting unit;

- Conversion of type of business of the accounting unit;

- Occurrence of conflagration, flood, and other unexpected damage;

- Re-evaluation of assets under a decision of a competent authority;

- Other cases prescribed by law.

After the stocktaking is done, the accounting unit shall make a stocktaking report. In case of any discrepancies between the stocktaking result and figures on the accounting books, the accounting unit must determine the cause and record the difference on the accounting books before making the financial statement.

The stocktaking must truthfully reflect the assets and sources of assets. The persons who make and sign the stocktaking report are responsible for it.

2. Accounting jobs related to asset inventory in Vietnam

2.1 Accounting works in case of total division of an accounting unit

- 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 this Law.

(Article 43 of the Law on Accounting 2015)

2.2 Accounting works in case of partial division of an accounting unit

- 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 this Law.

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

(Article 44 of the Law on Accounting 2015)

2.3 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 this Law;

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

+ Receive, retain accounting documents of consolidated units.

(Article 45 of the Law on Accounting 2015)

2.4 Accounting works in case of acquisition of an accounting unit

- 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.

(Article 46 of the Law on Accounting 2015)

2.5 Accounting work in case of change of ownership type or form

- 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 the Law on Accounting 2015.

(Article 47 of the Law on Accounting 2015)

2.6 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.

(Article 48 of the Law on Accounting 2015)

Ho Quoc Tuan

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