Vietnam law has regulations on financial statements. To know more about this issue, we can find the answers for these questions: What are regulations on Financial statements of accounting units in Vietnam? What are regulations on Financial statements of the State? What are Manners and deadline for publishing financial statements? Lawyer X hope that the following article will provide you vital information!
Legal grounds
2015 Vietnam Law on accounting
Financial statements of accounting units
– 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.
Financial statements of the State
– Financial statements of the State are made according to consolidation of financial statements of regulatory agencies, public service agencies, business organizations, and relevant units of the State, used for consolidating and describing financial conditions of the State, result of financial activities of the State, and cash flow thereof nationwide and of each administrative division.
– Financial statements of the State provide information about revenues and expenditures of state budget, public funds, public debts, state capital in enterprises, assets, sources of capital, and use of state capital. Financial statements of the State include:
+ Financial condition statement;
+ Statement of financial activity result;
+ Cash flow statement;
+ Note to financial statements of the State.
– Financial statements of the State are made as follows:
+ The Ministry of Finance shall make nationwide financial statements, submit them to the Government for reporting to the National Assembly; direct State Treasuries to take charge and cooperate with finance authorities in making financial statements of local governments and submitting them to the People’s Committees of provinces for reporting to the People’s Councils of provinces;
+ Other regulatory agencies, public service agencies, business organizations, and relevant units shall make their own financial statements and provide financial information serving the making of nationwide and local financial statements.
– Financial statements of the State shall be made and submitted to the National Assembly or the People’s Council at the same time as the state budget statement according to the Law on State budget.
– The Government shall promulgate specific regulations on financial statements of the State; the making and publishing of financial statements of the State; responsibility of agencies, units, and local governments for provision of information serving the making of financial statements of the State.
Published contents of financial statement
– 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.
Manners and deadline for publishing financial statements
– A financial statement shall be published in one of the following manner:
+ Publication;
+ Written notice;
+ Posting;
+ Publication on a website;
+ Other manners prescribed by law.
– The manners and deadlines for publishing financial statements of accounting units using state budget shall comply with regulations of law on state budget.
– Accounting units that do not use state budget, accounting units using the people’s contributions shall publish their annual financial statements within 30 days from their submission dates.
– Accounting units doing business shall publish their annual financial statements within 120 days from the end of the annual accounting period. Where regulations of law on securities, credit, or insurance provide for different manners and deadlines for publishing financial statements; such regulations shall apply.
Audit of financial statements
Financial statements of accounting units that are, by law, required to be audited must be audited before they are submitted to competent authorities and published.
Audited accounting units shall comply with regulations of law on audit.
Audited financial statements of accounting units must be enclosed with audit reports when being submitted to competent authorities.
Regulations on Accounting inspection
Accounting units shall have their accounting works inspected by competent authorities. Accounting inspection shall only be carried out under a decision of a competent authority as prescribed by law, except for the authorities specified in Point b Clause 3 of this Article.
The authorities that are competent to decide accounting inspection include:
- The Ministry of Finance;
- Other Ministries, ministerial agencies, Governmental agencies, other central agencies shall decide accounting inspection of accounting units under their management;
- The People’s Committees of provinces shall decide accounting inspection of accounting units in their provinces;
- Superior units shall decide accounting inspection of affiliated units.
The authorities that are competent to carry out accounting inspection include:
- The authorities specified in Clause 2 of this Article;
- State inspection agencies, finance inspection agency, State Audit Agency, tax authorities during inspection and audit of accounting units.
Contents of accounting inspection
An accounting inspection consists of:
- Inspection of performance of accounting works;
- Inspection of the accounting apparatus and accountants;
- Inspection of the organization structure and provision of accounting services;
- Inspection of the adherence to other regulations of law on accounting.
The accounting inspection content must be specified in the decision on accounting inspection, except for the case in Point b Clause 3 Article 34 of this Law.
The Duration of an accounting inspection is decided by the authority competent to carry out the accounting inspection but not exceeding 10 days, excluding days off and public holidays defined by the Labor Code. If the inspection content is complicated and thus requires more time to evaluate and draw a conclusion, the inspecting authority may extend the duration for up to 05 days, excluding days off and public holidays defined by the Labor Code.
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Frequently asked questions
Every financial statement must be completely, accurately, made and sent to competent authority in a timely manner. Information and data in financial statements of accounting units must be made publicly available in accordance with Article 31 and Article 32 of this Law.
Accounting standards comprise the basic accounting methods and regulations for making financial statements.
Accounting units are allowed to round numbers, use abbreviated units when making or publishing their financial statements.
Conclusion: So the above is Regulations on financial statements in Vietnam . Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
