General regulations on accounting records and accounting books in Vietnam
Accounting records and accounting books are very important in accounting activities in Vietnam. What are Contents of accounting records according to Vietnam’s Law? What are regulations on making and retention of accounting records in Vietnam? Let’s answer these questions with lawyer X through this article!
Legal grounds
2015 Vietnam Law on accounting
Contents of accounting records
An accounting record must have:
- Name and number of the accounting record;
- Date of the accounting record;
- Name, address of the entity that makes the accounting record;
- Name, address of the entity that receives the accounting record;
- Contents of the economic/financial transaction that occurs;
- Quantity, unit price, amount of the economic/financial transaction in number; total amount of accounting records serving collection or payment of money in both number and words;
- Signatures, full names of the persons who make, approve the accounting record, and relevant persons
Apart from the primary contents specified in Clause 1 of this Article, an accounting record may have other contents depending on its type.
Regulations on Electronic accounting records
Electronic records are considered accounting records if they have the contents specified in Article 16 of this Article and are displayed in the form of electronic data, encrypted and not changed during transmission through the computer network or telecommunications network or by a storage device such as magnetic tape, magnetic disc, or payment cards.
Electronic records must ensure security and integrity of data and information being used and stored, be managed and inspected to avoid illegal access, duplication, or piracy. Electronic records are managed as if accounting documents in original forms when they are created, sent, or received, provided there are suitable devices for using them.
When a physical record is converted into an electronic one and vice versa, the electronic may be used for making the economic/financial transaction; the physical record is only for retention, not for making transactions or payments.
Making and retention of accounting records
An accounting record shall be made for each economic/financial transaction that occurs during the operation of an accounting unit. Only one accounting record shall be made for each economic/financial transaction.
Accounting records must be made in a clear, complete, timely, and accurate manner in accordance with the set form. If an accounting record form is not available, the accounting unit may design its own accounting records as long as they have sufficient contents specified in Article 16 of this Law.
Economic/financial transactions on accounting records must not be abbreviated, erased, changed; Text must be written by pen; digits and letters must be written continuously without interruption; blank spaces must be crossed out. Accounting records that are changed are not valid for payment and recording in accounting books. Every incorrect accounting record must be crossed out.
An accounting record must have a sufficient number of copies as prescribed. Contents of the copies of an accounting record for an economic/financial transaction must be identical.
The persons who make, approve, and other persons that sign the accounting record are responsible for its content.
Electronic accounting records must comply with provisions of Article 17, Clause 1 and Clause 2 of this Article. Electronic accounting records shall be printed and retained in accordance with Article 41 of this Law. If electronic records are stored in electronic devices instead of being printed, it is required to ensure safety and security of information and accessibility during the retention period.
Regulations on Signing accounting records
An accounting record must sufficient signatures. Accounting records must be signed with indelible ink. It is prohibited to use red ink or rubber signature stamps on accounting records. Signatures on accounting records appended by the same person must be consistent. The Government shall provide for signatures on accounting records appended by visually impaired people.
Accounting records must be signed by competent persons or authorized persons. It is prohibited to sign an accounting record that does not have sufficient content.
Accounting records on payment must be signed by the person competent to approve payments and the chief accountant or an authorized person before making such payment. Every copies of an accounting record on payment must be signed.
Electronic records must bear electronic signatures. Signatures on electronic records are as valid as signatures on physical records.
Regulations on Invoices in accounting
Invoices are accounting records made by goods sellers and service providers to record information about the goods sale or service provision as prescribed by law.
The content and appearance of invoices, procedures for making, managing, and using invoices shall comply with regulations of law on taxation.
Management and use of accounting records
Information and data on accounting records are the basis for making accounting books.
Accounting records must be sorted by transaction content and by time, and preserved as prescribed by law.
Only competent authorities are entitled to impound, confiscate, or seal accounting records. Where accounting records are impounded or confiscated, the competent authority shall photocopy the records impounded or confiscated, append signature on the copies, and give the copies to the accounting unit; make a record which specifies the reasons for impoundment of confiscation, quantity of each type of accounting records impounded or confiscated, and append the signature and seal on the record.
The competent authority that seals accounting records shall issue a record which specifies the reasons for sealing, quantity of each type of accounting records sealed, and append the signature and seal on the record.
Regulations on Accounts and account system
– Accounts are used for classifying and systemizing economic/financial transactions.
– The account system consists of necessary accounts. Each accounting unit may only use one account system for financial accounting as prescribed by the Ministry of Finance.
– The Ministry of Finance shall promulgate specific regulations on accounts and account systems of the following accounting units:
+ Accounting units responsible for revenues and expenditures of state budget;
+ Accounting units using state budget;
+ Accounting units that do not use state budget;
+ Accounting units that are enterprises;
+ Other accounting units.
Options to apply an account system
– Each accounting unit shall select an account system from the account systems established by the Ministry of Finance.
– An accounting unit may detail the selected accounts to serve its purpose.
General regulations on accounting books
– 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.
– The Ministry of Finance shall promulgate specific regulations on accounting books.
Regulations on Accounting book system
– Each accounting unit shall select an accounting book system from the accounting book systems established by the Ministry of Finance.
– Each accounting unit shall use only one accounting book system for an annual accounting period.
– The accounting unit may detail the selected accounting books to serve its purpose.
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Frequently aksed questions
Accounting books shall be opened at the beginning of the annual accounting period; new accounting units shall open their accounting books from the inauguration date.
Accounting records are the basis for making accounting books.
Accounting books must be made clearly, completely, and in a timely manner. Information and data recorded in the accounting books must be accurate, truthful, and consistent with accounting records.
Conclusion: So the above is General regulations on accounting records and accounting books in Vietnam . Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
