English
Tiếng Việt
Update new points of Accounting Law 2015
Posted date 23/05/2016
23.140 view
Posted date 23/05/2016
23.140 view
Share:
To meet the requirements of integration in International Accounting and Finance, the Vietnamese National Assembly decided to pass the 2015 Accounting Law - Law No. 88/2015/QH13 consisting of 6 chapters - 74 articles to regulate accounting principles, auditing standards, State financial reports, internal control, accounting inspection and accounting service practice.
MSc. Nguyen Hoang Phuong Thanh - Faculty of Accounting
To meet the requirements of international accounting and finance integration, the Vietnamese National Assembly has decided to pass the 2015 Accounting Law - Law No. 88/2015/QH13, consisting of 6 chapters - 74 articles, to regulate accounting principles, auditing standards, State financial reports, internal control, accounting inspection and accounting service practice. This amendment to the Accounting Law aims to improve the quality of accounting work as a tool for managing finance, capital, assets of the State and enterprises, and as a tool for management and supervision of the State. The 2015 Accounting Law was passed by the National Assembly on November 20, 2015 and took effect from January 1, 2017.
Within the framework of this article, the author would like to introduce some noteworthy contents and new points of the 2015 Accounting Law.
1. Regarding applicable subjects: The subjects remain the same as the 2003 Accounting Law. This is specified in Article 8 of the 2015 Accounting Law.
2. Regarding accounting principles: The original cost principle is still applied, but with the addition of being recorded at fair value at the end of the financial reporting period. For items with foreign currency origin and assets or liabilities with frequently fluctuating values: Must be assessed and recorded at fair value at the end of the financial reporting period. This is specified in Article 6 of the 2015 Accounting Law.
Accordingly, after initial recognition, for some assets or liabilities that fluctuate frequently according to market value and their value can be reliably re-determined, they are recognized at their fair value at the time of preparing the financial statements. Compared to the 2003 Accounting Law which only stipulates the original cost principle, the addition of this concept is a major change in accounting principles. This is completely consistent with international accounting standards and accounting requirements for some groups of assets and liabilities such as financial instruments, which are required by accounting standards to be recorded and re-evaluated at fair value; foreign currency items are valued at actual transaction exchange rates; other assets or liabilities whose value fluctuates frequently, as required by accounting standards, must be re-evaluated at fair value.
Because the valuation of assets and accounting at fair value are highly technical, to suit the conditions of Vietnam, there are assets that can be valued at market value, and there are assets that cannot be valued yet, the Law stipulates that the Ministry of Finance shall specify the assets and liabilities that are recorded and re-valued at fair value, and the accounting method for recording and re-valuing at fair value.
3. Regarding accounting forms: The Law also clearly states that only management accounting and financial accounting are accepted, and no other accounting forms are accepted. This is specified in Article 9 of the 2015 Accounting Law.
4. Prohibited acts: The 2015 Accounting Law inherits the 9 prohibited acts stipulated in Article 14 of the 2003 Accounting Law and adds a number of prohibited acts to ensure coverage of all fraudulent and illegal acts in the accounting field, while creating a legal basis for handling violations.
According to Article 13 of the 2015 Law on Accounting, the following acts are added: establishing two or more financial accounting systems or providing and publishing financial reports with inconsistent data in the same accounting period; renting, borrowing, leasing, lending an accountant's certificate, a Certificate of registration to practice accounting services in any form; providing accounting services without being granted a Certificate of eligibility to provide accounting services or practicing accounting services without ensuring the conditions prescribed by this Law; hiring individuals or organizations that do not meet the conditions to practice or the conditions to provide accounting services to their units; practicing accountants and accounting service enterprises colluding with customers to provide and confirm false accounting information and data.
5. Regarding accounting documents: The Accounting Law has specific regulations on electronic documents: If electronic documents are stored on electronic media, they must ensure the safety and confidentiality of data information and must be searchable within the storage period. The Law also stipulates the preservation, storage and handling of lost accounting documents.
Specifically stipulated in Articles 16, 17, 18, 19, 20 and 21 of the Accounting Law 2015.
6. Regarding accounts and accounting account systems: Articles 22 and 23 of the 2015 Accounting Law stipulate accounting accounts and accounting account systems.
According to Article 23 of the 2015 Accounting Law, the selection of an accounting system to apply is regulated as follows:
Accounting units must base on the accounting system prescribed by the Ministry of Finance to choose the accounting system to apply in their units.
The accounting unit details the selected accounting accounts to serve the management requirements of the unit.
7. Regarding accounting books: The 2015 Accounting Law specifically regulates accounting books in enterprises.
Specifically stipulated in Articles 24, 25, 26 and 27 of the Accounting Law 2015.
8. Regarding financial statements: The 2015 Accounting Law specifically stipulates the financial reporting forms of accounting units and the State. It also stipulates the disclosure of financial statements and the auditing of financial statements.
Detail:
Article 29 stipulates the Financial Statements of accounting units.
Article 30 provides for State financial reports.
Article 31 stipulates the content of public disclosure of Financial Reports.
9. Financial report inspection : The Accounting Law specifically regulates the inspection of financial reports, with the rights and responsibilities of the inspection unit and the accounting unit.
10. Regulations on asset inventory : Article 40 of the 2015 Accounting Law specifically regulates asset inventory before preparing financial statements of accounting units.
11. Regarding the preservation and storage of accounting documents: Regulations on the responsibilities of accounting units in preserving and storing accounting documents. The contents on the preservation and storage of accounting documents are specifically regulated in Articles 41 and 42 of the Accounting Law 2015.
12. Regarding the work of accountants when separating, merging... accounting units: The Accounting Law stipulates the work of accountants in specific cases.
Details are specified in Articles 43, 44, 45, 46, 47, 48 of the Accounting Law 2015.
13. Regarding the organization of the accounting apparatus and accountants: The 2015 Accounting Law specifically regulates the accounting apparatus, the organization of the accounting apparatus and accountants.
Details are provided in Articles 49, 50, 51 and 52 of the Accounting Law 2015.
14. Regarding chief accountant: The 2015 Accounting Law specifically stipulates the functions, powers and standards of chief accountants:
Details are provided in Articles 53, 54 and 55 of the Accounting Law 2015.
15. Regarding the practice of accounting services: The Law on Accounting specifically stipulates the conditions for practice, accounting practice enterprises, and also specifically stipulates that accounting consulting is also considered as providing accounting services. Therefore, it is mandatory to register to practice according to regulations. New regulations on the provision of accounting services, that is, providing services across borders
Details: Regulations on practicing accounting services according to the 2015 Accounting Law
16. Regarding the conditions and documents for granting a Certificate of eligibility to provide accounting services: The Law specifically stipulates the documents and conditions for a unit to provide accounting services. At the same time, it specifically stipulates which enterprises are not allowed to provide accounting services.
Detail:
Article 60 of the 2015 Law on Accounting stipulates the conditions for granting a Certificate of eligibility to provide accounting services.
Articles 61, 62, 63 of the 2015 Law on Accounting stipulate the application dossier for a Certificate of eligibility to provide accounting services.
Article 68 of the 2015 Law on Accounting stipulates cases where accounting services may not be provided.
17. Regarding the determination of price when selling an asset or transferring a liability: Determine in accordance with the market price that can be received when selling an asset or transferring a liability at the time of determining the value. This is a new point in Vietnam's accounting policy.
18. Regarding accounting inspection: Provincial People's Committees have the right to decide on accounting inspections for accounting units in the area under their management.
Above is a summary of the most prominent new points of the 2015 Accounting Law. Specific content can be found in the text of this Law.
The article hopes to help readers have an overview of the content as well as changes and updates to international financial accounting of the 2015 Accounting Law.
Good luck!
Latest article
View all Posts
Related articles
See all related Articles
