Accounting

1. Vietnamese Accounting Standards

Vietnamese Accounting Standards (“VAS) and related regulations issued by the Ministry of Finance have been used for accounting recognition and financial statements preparation and presentation. There are total 26 VAS were issued from 2001 to 2005 and not been updated to be suitable with the current International Accounting Standards, therefore, some new accounting standards such as IFRS 9 Financial Instruments, IFRS 15 Revenue, IFRS 16 Lease, … have not been applied yet in Vietnam. 

2. Accounting Law 

Accounting law offers for contents of accounting works, accounting apparatus, accountants, accounting services, accounting management by regulatory bodies, and accounting associations. In addition, there is applicable implementation guidance.

• Accounting Currency is Vietnam Dong (VND)
• Language: Vietnamese. In case a foreign language is required to use on an accounting record, accounting book, or financial statement which is used in Vietnam, it is required to use both Vietnamese and that foreign language.
• Accounting periods: 12 months. The first accounting period must not be longer than 15 months from the license date.
• The enterprise is required to appoint a Chief Accountant who must satisfy the criteria and conditions stipulated by the Law on Accounting and guiding regulation.
• The Law on Accounting prohibits any individual responsible for direction and management of the entity to assume the role as an accountant, storekeeper, cashier or the responsibility for purchasing and sales.

3. Financial statements

The basic set of financial statements prepared under VAS and Circular 200/2014/TT-BTC is comprised of the following:

• Balance sheet, including a separate schedule for off-balance sheet items;
• Income statement;
• Cash flow statement; and
• Notes to the financial statements.