Circular 99/2025/TT-BTC providing guidance on the enterprise accounting regime

CIRCULAR

Providing guidance on the enterprise accounting regime

Pursuant to the Accounting Law dated November 20, 2015;

Pursuant to the Law Amending and Supplementing a Number of Articles of the Law on Securities, Accounting Law, Law on Independent Audit, Law on the State Budget, Law on Management and Use of Public Property, Law on Tax Administration, Law on Personal Income Tax, Law on the National Reserve and Law on Handling of Administrative Violations dated November 29, 2024;

Pursuant to the Government’s Decree No. 29/2025/ND-CP dated February 24, 2025, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government’s Decree No. 166/2025/ND-CP dated June 30, 2025, amending and supplementing a number of articles of the Government’s Decree No. 29/2025/ND-CP dated February 24, 2025, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At proposal of the Director of the Department of Accounting and Audit Management and Supervision;

The Minister of Finance hereby promulgates the Circular providing guidance on the enterprise accounting regime.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides guidance on accounting documents, accounting accounts, accounting book recording, and the preparation and presentation of financial statements by enterprises. The determination of enterprises’ tax obligations to the State budget shall comply with the law on taxation.

Article 2. Subjects of application

1. This Circular provides guidance on accounting applicable to enterprises across all sectors and economic components.

2. Credit institutions and foreign bank branches shall implement the accounting regime or legal normative documents on accounting in accordance with the guidance issued by the State Bank of Vietnam.

Article 3. Corporate governance and internal control

1. The establishment, execution, management, and control of economic transactions arising from enterprise operations shall strictly comply with applicable laws, relevant mechanisms and policies.

2. Each enterprise shall be responsible for developing internal governance regulations (or equivalent documents) and organizing internal control so as to clearly delineate the rights, obligations, and responsibilities of all units and individuals involved in the initiation, execution, management, and control of economic transactions arising from the enterprise operations, ensuring compliance with the law on enterprises and other relevant laws.

Article 4. Functional currency unit

1. The “functional currency unit” shall be Vietnamese dong (with the national symbol “d” and the international symbol “VND”), which is used for recording accounting books, and for the preparation and presentation of enterprises’ financial statements. In case where an enterprise primarily conducts receipts and payments in foreign currencies and satisfies the criteria prescribed in Clauses 2, 3, and 4 of this Article, it may select one specific foreign currency as the functional currency unit for recording accounting books and shall bear full legal responsibility for such selection.

2. An enterprise shall determine its functional currency unit based on the following factors:

a) The currency that mainly influences the selling prices of goods and services and is ordinarily used for price quotations and settlements;

b) The currency that mainly influences labor costs, raw material costs, and other production and business expenses, and is ordinarily used for settling such expenses.

3. Where, based on the factors specified in Clause 2 of this Article, the functional currency unit cannot be clearly determined, the following additional factors shall also be considered as the basis for determination:

a) The currency used to raise financial resources (the currency used for the issuance of debt or equity instruments, etc.);

b) The currency that is regularly received from business operations and used for retention or accumulation purposes.

4. The functional currency unit shall reflect transactions, events, and conditions relating to the enterprise’s operations. Once the functional currency unit has been determined, the enterprise shall not change it, except where there is a substantial change in management or business operations leading to a material alteration in such transactions, events, or conditions.

Article 5. Change of functional currency unit

1. Principles for changing the functional currency unit

When there is a substantial change in management or business operations resulting in the functional currency unit previously used by the enterprise no longer satisfying the factors specified in Clauses 2, 3, and 4, Article 4 of this Circular, the enterprise may change its functional currency unit, and such change shall only be effected at the beginning of a new accounting year.

2. Principles for preparing financial statements upon a change in the functional currency unit

a) For the first accounting period following the change, the enterprise shall convert the balances of all items in its accounting books and in the statement of financial position into the new functional currency unit at the average transfer exchange rate (being the arithmetic mean between the transfer buying rate and transfer selling rate) of the commercial bank with which the enterprise frequently conducts transactions (i.e., the commercial bank where the enterprise conducts transactions of higher frequency or value than with others) on the date of the change of functional currency unit.

b) For comparative information (the previous period column) presented in the statement of profit or loss and cash flow statement, the enterprise shall apply the average transfer exchange rate of the commercial bank with which the enterprise most frequently conducts transactions during the immediately preceding period before the period of change.

c) The enterprise shall disclose in the Notes to the financial statement the reasons for the change of functional currency unit and any effects on the financial statements resulting from such change.

Article 6. Accounting practices for enterprises selecting a functional currency unit other than Vietnamese dong

1. The legally valid financial statements to be publicly disclosed and submitted to competent agencies in Vietnam shall be the financial statements presented in Vietnamese dong. Accordingly, the enterprise must convert its financial statements from the functional currency unit into Vietnamese dong in accordance with the guidance set forth in Clause 3 of this Article, unless otherwise provided by law.

2. Where the law requires that the enterprise’s financial statements be audited by an independent audit firm, the financial statements to be audited shall be those presented in Vietnamese dong.

3. Method for converting financial statements prepared in a foreign currency into Vietnamese dong

a) When converting financial statements prepared in a foreign currency into Vietnamese dong, the enterprise shall convert the financial statement items in accordance with the following principles:

- Assets and liabilities shall be converted into Vietnamese dong at the average transfer exchange rate of the commercial bank with which the enterprise most frequently conducts transactions as of the end of the accounting period;

- Equity items (including contributed capital of the owner(s), capital surplus, other capital, and convertible bond options) shall be converted into Vietnamese dong at the spot exchange rate on the date of capital contribution;

- Revaluation differences of assets shall be converted into Vietnamese dong at the spot exchange rate on the date of revaluation;

- Undistributed profit after tax and funds appropriated from undistributed profit after tax arising during the period shall be converted into Vietnamese dong by calculation based on the items of the statement of profit or loss. Remaining undistributed profit after tax shall be converted into Vietnamese dong at the book exchange rate of the undistributed profit after tax item;

- Items in the statement of profit or loss and the cash flow statement shall be converted into Vietnamese dong at the spot exchange rate at the transaction date. Where the average exchange rate of the accounting period approximates the spot exchange rate at the transaction date (the difference does not exceed the spot exchange rate margin as prescribed by the State Bank of Vietnam), the enterprise may apply the average exchange rate of the accounting period (if so elected).

b) Accounting treatment for exchange differences arising from the conversion of financial statements prepared in a foreign currency into Vietnamese dong

Exchange differences arising from the conversion of financial statements prepared in a foreign currency into Vietnamese dong shall be recognized under the item “exchange differences” within the equity section of the statement of financial position.

c) When converting financial statements prepared in a foreign currency into Vietnamese dong, the enterprise must clearly disclose in the Notes to the financial statement the impacts arising from the conversion of the financial statements from a foreign currency into Vietnamese dong.

Article 7. Organization of the accounting apparatus and accounting work at units affiliated to the enterprise

1. An affiliated unit refers to a dependent unit as defined under the law on enterprises.

2. An enterprise shall be responsible for organizing its accounting apparatus and may determine the accounting work of its affiliated units in conformity with the characteristics of its business and production activities, its management requirements, provided that such organization and decisions are not contrary to the provisions of law.

3. 3.   The organization of the accounting apparatus and accounting work at an enterprise’s affiliated units shall be carried out as follows:

a) The enterprise shall have the right to delegate authority to its affiliated units to record the capital amounts allocated by the enterprise to such affiliated units as liabilities or equity, and to record or not record revenue and cost of goods sold when transferring products, goods, or services among internal stages, regardless of the form of accounting documents (invoices or internal transfer vouchers), in conformity with the enterprise’s business model and management requirements;

b) The enterprise shall have the right to delegate authority to its affiliated units to prepare or not prepare financial statements. However, the financial statements of the enterprise, when submitted to competent agencies or disclosed in accordance with regulations, must include financial information of both the head office and all affiliated units of the enterprise, regardless of whether or not the enterprise delegates authority to its affiliated units to prepare financial statements.

Chapter II

ACCOUNTING DOCUMENTS

Article 8. General provisions on accounting documents

The accounting documents of an enterprise shall be prepared and implemented in strict compliance with the Accounting Law, its guiding documents, and any amending, supplementing, or replacing documents.

Article 9. System of accounting document templates

1. Enterprises shall refer to and apply the accounting document templates as provided in Appendix I to this Circular.

2. Where necessary to conform to the characteristics of their production and business activities and management requirements, enterprises may design additional accounting document templates or amend and supplement the accounting document templates provided in Appendix I to this Circular. Any additional, amended, or supplemented accounting document templates must comply with Article 16 of the Accounting Law and must fully, promptly, accurately, and transparently reflect the information; ensure verifiability, control, and reconciliation of the enterprise’s assets and capital sources.

When designing additional or amended accounting document templates, the enterprise shall be responsible for issuing an accounting regulation (or equivalent document) covering the amended and supplemented contents as the basis for implementation. Such regulation must clearly state the necessity of the amendment or supplementation and the enterprise’s legal responsibility for the amended or supplemented contents.

Where the enterprise does not design or amend accounting document templates, it shall apply the accounting document system as guided in Appendix I to this Circular.

3. Where enterprises issue accounting documents that fall within the scope of regulation of other laws, such accounting documents shall comply with the provisions of those relevant laws.

Article 10. Preparation, signing, and control of accounting documents

1. Every economic or financial operation arising in connection with the enterprise’s operations must be supported by an accounting document. Each economic or financial operation shall have only one corresponding accounting document prepared.

2. The preparation and signing of accounting documents shall comply with the Accounting Law, its guiding documents, this Circular, and any amending, supplementing, or replacing documents.

3. The delegation of signing authority on accounting documents within an enterprise must conform to legal provisions, management requirements, and the enterprise’s internal governance regulations to ensure strict control, the safety of assets and capital sources, and clear identification of the responsibility of each relevant individual.

4. The chief accountant (or the person authorized by the chief accountant) shall not sign “on behalf of” managerial or executive positions of the enterprise on accounting documents, unless otherwise provided by law.

Chapter III

ACCOUNTS

Article 11. Chart of accounts

1. Enterprises shall apply the chart of accounts provided in Appendix II to with this Circular for the purpose of recording accounting books of economic transactions arising within the enterprise’s accounting books.

2. Where necessary to conform to the characteristics of their production and business activities and management requirements, enterprises may amend or supplement the titles, codes, structures, and contents of accounting accounts as guided in Appendix II to this Circular. Such amendments or supplements must ensure the classification and systematization of operations according to their economic substance, avoid duplication of accounting objects, comply with accounting principles as prescribed, and must not alter or affect the indicators and information presented in the financial statements.

When making amendments or supplements to the titles, codes, structures, or contents of accounting accounts, enterprises shall be responsible for promulgating an accounting regulation (or equivalent document) specifying such amendments or supplements as the basis for implementation. Such regulation must clearly state the necessity of the amendment or supplementation and the enterprise’s legal responsibility for the amended or supplemented contents.

Where no amendments or supplements are made to the titles, codes, structures, or contents of accounting accounts, the enterprise shall apply the chart accounts as guided in Appendix II to this Circular.

3. This Circular provides guidance only on the accounting content and methods for certain principal economic transactions. In cases where an enterprise engages in economic transactions not specifically guided in this Circular, the enterprise shall, based on the nature and substance of the arising economic transactions, the Accounting Law, its guiding documents, Vietnamese Accounting Standards, and the principles provided in this Circular, implement the accounting accordingly.

Chapter IV

ACCOUNTING BOOKS

Article 12. Accounting books

1. The accounting books of an enterprise shall be prepared and implemented in strict compliance with the Accounting Law, its guiding documents, and any amending, supplementing, or replacing documents.

2. Enterprises shall refer to and apply the accounting book forms as provided in Appendix III to this Circular.

Where necessary to conform to the characteristics of their production and business activities and management requirements, enterprises may design additional accounting book forms or amend and supplement the accounting book forms provided in Appendix III to this Circular. Any additional, amended, or supplemented accounting book forms must comply with Clauses 1, 2, 3, and 4, Article 24 of the Accounting Law and must fully, promptly, accurately, and transparently reflect the information; ensure verifiability, control, and reconciliation of the enterprise’s assets and capital sources.

When designing additional or amended accounting book forms, the enterprise shall be responsible for issuing an accounting regulation (or equivalent document) covering the amended and supplemented contents as the basis for implementation. Such regulation must clearly state the necessity of the amendment or supplementation and the enterprise’s legal responsibility for the amended or supplemented contents.

Where the enterprise does not design or amend accounting book forms, it shall apply the accounting book forms as guided in Appendix III to this Circular.

Article 13. Opening, recording, and closing accounting books

1. Opening of accounting books: Accounting books must be opened at the beginning of the annual accounting period. For newly established enterprises, accounting books must be opened from the date of establishment.

2. Recording of books: Enterprises must record accounting books based on accounting documents in accordance with the Accounting Law and its amending, supplementing, or replacing documents. Accounting books must be recorded in a timely, clear, and complete manner in accordance with the contents of the books. Information and data recorded in accounting books must be accurate and truthful, consistent with accounting documents.

3. Closing of books: Enterprises must close accounting books at the end of the accounting period to prepare the financial statements and in other cases as prescribed by law.

Chapter V

FINANCIAL STATEMENTS

Article 14. Purpose of financial statements

1. Financial statements shall be used to provide information on the financial position, business performance, and cash flows of an enterprise, in order to meet the management requirements of the enterprise’s owner, competent agencies, and the needs of users of financial statements for making economic decisions. Such a financial statement must provide information of an enterprise concerning:

a) Assets;

b) Liabilities;

c) Equity;

d) Revenue, other income, production and business expenses, and other expenses;

dd) Profits, losses, and distribution of business results;

e) Cash flows.

2. In addition to the information specified in Clause 1 of this Article, an enterprise must also provide other information in the “Notes to the financial statement” to further explain the items reflected in the financial statement and the accounting policies applied in recognizing economic transactions, and in preparing and presenting the enterprise’s financial statements.

Article 15. Periods for preparation of financial statements

1. Period for preparation of annual financial statements: Enterprises shall prepare annual financial statements in accordance with the Accounting Law.

2. Period for preparation of interim financial statements: Interim financial statements include quarterly financial statements (including the fourth quarter) and semi-annual financial statements (six-month financial statements).

3. Other period for preparation of financial statements:

a) Enterprises shall prepare financial statements for other accounting periods (for example, monthly financial statements, etc.) as required by law, by the parent company, or by the owner.

b) Enterprises that are divided, consolidated, merged, converted into another type of enterprise, dissolved, or declared bankrupt must prepare financial statements at the time of division, consolidation, merger, transformation, dissolution, or bankruptcy in accordance with the law.

Article 16. Subjects and responsibility for preparation of financial statements

1. Entities subject to preparation of financial statements

Enterprises operating in all sectors and of all economic components must prepare full-form annual financial statements as prescribed in Appendix IV to this Circular. The preparation of interim financial statements and financial statements according to other accounting periods shall comply with relevant laws, or management requirements of the entity. In cases where, under a relevant law, an enterprise is required to prepare interim financial statements but such law does not specifically prescribe the type of interim financial statements, the enterprise may choose to prepare either full-form or condensed interim financial statements.

2. Enterprises having affiliated units must consolidate both the financial information of the head office and that of the affiliated units into the enterprise’s financial statements, on the basis of eliminating all internal transactions between the head office and its affiliated units, and among affiliated units themselves. In this case, the head office and affiliated units of the enterprise are not required to prepare separate financial statements for their own units, unless otherwise required by law.

3. The preparation and presentation of annual consolidated financial statements and interim consolidated financial statements shall comply with the law on consolidated financial statements.

4. The preparation and signing of financial statements shall be carried out in compliance with the Accounting Law, its guiding documents, and any amending, supplementing, or replacing documents. In cases where an enterprise hires an accounting service provider to perform the services of preparation and presentation of financial statements or to act as chief accountant, the section for “Preparer” and “Chief Accountant” on the enterprise’s financial statements must clearly indicate the professional practice certificate number of the practicing accountant and the name of the accounting service provider, according to regulations.

Article 17. System of enterprises’ financial statements

1. The system of financial statements include:

- Statement of financial position;

- Statement of profit or loss;

- Cash flow statement;

- Notes to the financial statement.

2. Annual financial statements:

a) The annual financial statements for enterprises meeting the going concern assumption include:

b) The annual financial statements for enterprises not meeting the going concern assumption include:

3. Interim financial statements include:

a) Full-form interim financial statements, comprising:

b) Condensed interim financial statements, comprising:

4. The forms of annual financial statements and interim financial statements (both full-form and condensed forms) are provided in Appendix IV to this Circular. Items for which there are no data may be omitted from presentation in the financial statements. Enterprises may renumber the order of items sequentially within each section, but may not change the “Code” numbers of the items.

Article 18. Modification of financial statements

1. Enterprises shall apply the system of financial statements set forth in Appendix IV to this Circular for the preparation and presentation of their financial statements.

Where necessary to reflect the nature of business operations and management requirements, enterprises may include additional items in the financial statements prescribed in Appendix IV to this Circular. Any such additions must comply with Clauses 1 and 2, Article 29 of the Accounting Law and adhere to the principles of preparation and presentation of financial statements provided in this Circular. Enterprises shall provide explanation in the notes to the financial statement regarding the contents added as compared to the financial statement forms prescribed in Appendix IV to this Circular.

When adding items to financial statements, enterprises shall issue an accounting regulation (or equivalent document) specifying the added contents as the basis for implementation. The regulation must clearly state the necessity for such additions and the enterprise’s accountability before the law for the added information.

Where no additional items are introduced, enterprises shall apply the financial statement forms prescribed in Appendix IV to this Circular.

2. In case where an enterprise has specific characteristics making it impossible to include additional items or requiring modification of the indicators prescribed in Appendix IV to this Circular, it shall report to the Ministry of Finance for guidance on the preparation and presentation of its financial statements.

Article 19. Requirements for information presented in financial statements

1. Information presented in the financial statements must faithfully and fairly reflect the financial position, financial performance, cash flows, and other financial information of the enterprise. Information in the financial statements must be complete, neutral, and free from error.

- Information is considered complete when the financial statements include all information necessary for users of the financial statements to understand the nature, form, and risks of transactions and events. For certain items, full presentation also requires additional descriptions regarding quality, factors, and circumstances that may affect the quality and nature of such items.

- Objective information means information presented in the financial statements without bias, ensuring neutrality, accuracy, and factuality, not distorted, not manipulated, and not altering the degree of influence of financial information in a favorable or unfavorable manner to users of financial statements.

- Free from errors means the financial statements contain no omissions, mistakes, or fraud in describing phenomena, selecting, applying, and providing reported information. “Free from errors” does not imply absolute accuracy in all respects. An estimate is deemed free from error if the nature and limitations of the estimation process are clearly explained and described, and there is no error in selecting appropriate data used in the estimation process.

2. Financial information must be relevant so as to assist users of the financial statements in predicting, analyzing, and making economic decisions.

3. Financial information must be presented fully in all material respects. Information is considered material if its omission or misstatement could significantly distort the financial statements or influence the economic decisions of users of the financial statements. Materiality depends on the size or nature, or both, of the omissions or misstatements assessed under specific circumstances.

4. Information must be verifiable, timely, and understandable.

5. Financial information must be presented consistently and comparably across accounting periods and among enterprises. When an enterprise changes the principles for preparation and presentation of financial statements from meeting the going concern assumption to not meeting the going concern assumption, or vice versa, the enterprise must disclose in the notes to the financial statements the nature, data, and reasons for the reclassification of comparative data for the items and indicators of the financial statements to ensure comparability with the current period (unless such reclassification is impracticable).

Article 20. Principles for preparation and presentation of financial statements of enterprises meeting the going concern assumption

1. The preparation and presentation of financial statements shall comply with the provisions of Vietnamese Accounting Standard No. 21 - Presentation of Financial Statements and other relevant Vietnamese Accounting Standards. Material information must be explained to enable users to correctly understand the enterprise’s financial position.

2. Financial statements must reflect the economic substance of transactions and events rather than merely their legal form (substance over form principle).

3. Assets shall not be recognized at amounts higher than their recoverable amount; liabilities shall not be recognized at amounts lower than the obligations payable.

4. Classification of assets and liabilities: Assets and liabilities presented in the statement of financial position shall be classified as current and non-current, with items arranged in order of decreasing liquidity.

a) An asset shall be classified as current when it satisfies any of the following conditions:

(i) The enterprise expects to recover the asset, or intends to sell or consume it in its normal operating cycle;

(ii) The enterprise holds the asset primarily for trading purposes;

(iii) The enterprise expects to recover the asset within 12 months after the end of the accounting period;

(iv) The asset is cash or cash equivalent, unless it is restricted from exchange or use to settle a liability for more than 12 months after the end of the accounting period.

All other assets not classified as current under the above guidance shall be classified as non-current assets.

b) A liability shall be classified as current when it satisfies any of the following conditions:

(i) The enterprise expects to settle the liability in its normal operating cycle;

(ii) The enterprise holds the liability primarily for trading purposes;

(iii) The liability is due to be settled within 12 months after the end of the accounting period;

(iv) The enterprise does not have an unconditional right to defer settlement of the liability (including borrowings, loans, and finance lease liabilities that have become due for repayment, even when such liabilities will be settled by the enterprise through the issuance of equity instruments at the counterparty’s option) at any time within 12 months after the end of the accounting period.

Liabilities such as payables to suppliers, employee-related payables, and other accrued expenses related to business operations, which form part of the working capital used in the normal operating cycle, shall be classified as current liabilities by the enterprise, even if the enterprise is obligated to settle such liabilities more than 12 months after the end of the accounting period.

Liabilities not classified as current in accordance with the above guidance shall be classified as non-current liabilities.

For liabilities classified as current, if any of the following events occur between the end of the accounting period and the date on which the financial statements are issued, such events shall be treated as non-adjusting subsequent events:

- An agreement to extend the maturity of a current liability into a non-current liability;

- The rectification of a breach of covenant relating to a non-current liability; and

- The creditor granting a grace period to remedy a covenant breach relating to a non-current liability for a period of at least 12 months after the end of the accounting period.

The enterprise shall also disclose such subsequent events in the notes to the financial statements in accordance with regulations.

c) Where an enterprise elects to classify assets and liabilities in the statement of financial position based on the normal operating cycle, the enterprise must disclose the expected amounts to be recovered or settled after more than 12 months for each line item of assets and liabilities, in cases where such line items include amounts expected to be recovered or settled:

(i) within 12 months after the end of the accounting period; and

(ii) after 12 months from the end of the accounting period.

At the same time, the normal operating cycle applied for the classification of assets and liabilities of the enterprise must be the same. For enterprises whose normal operating cycle cannot be clearly determined, the enterprise’s operating cycle shall be deemed to be 12 months.

d) When preparing financial statements, the enterprise must reclassify non-current assets and non-current liabilities from the previous period into current assets and current liabilities in the current period if, as at the end of the accounting period, such assets or liabilities satisfy the conditions for current classification as prescribed at Points a and b of this Clause, except for cases where reclassification is not permitted in accordance with the guidance provided in this Circular.

5. Assets and liabilities must be presented separately. Enterprises may only offset assets and liabilities when such assets and liabilities relate to the same entity, have a rapid turnover, short maturity, and arise from transactions and events of the same nature.

6. Revenue, income, and expenses directly related to the generation of such revenue and income must be presented on a matching basis and in compliance with the principle of prudence. The statement of profit or loss and the cash flow statement shall reflect the revenue, income, expenses, and cash flows for the accounting period. In cases where material errors are discovered in the financial statements of prior periods, such errors must be retrospectively adjusted in accordance with regulations.

7. Where an enterprise has affiliated units, the enterprise’s financial statements must consolidate both the financial information of its head office and that of its affiliated units; balances of internal items in the statement of financial position, and revenue, expenses, and unrealized gains or losses arising from internal transactions must all be eliminated.

Article 21. Principles for the preparation and presentation of financial statements upon change of the accounting period

When the accounting period is changed, for example, when an enterprise changes its accounting period from the calendar year to the one differing from the calendar year, the enterprise must close its accounting books and prepare financial statements on the following principles:

1. The change of accounting period must comply with the Accounting Law. When changing the annual accounting period, the enterprise must prepare a separate financial statement for the period between the two accounting periods of the old and new fiscal years.

2. For the statement of financial position: All balances of assets, liabilities, and equity at the end of the accounting period prior to the change shall be recognized as the opening balances of the new accounting period and presented in the column “Beginning of the year.”

3. For the statement of profit or loss and the cash flow statement for the accounting period from the end of the previous accounting period to the date of change of the accounting period: Data for the period from the end of the previous accounting period to the date of change shall be presented in the column “Current period.” The column “Previous period” shall present the corresponding data for the prior accounting period or the twelve months presented in the financial statements of the immediately preceding fiscal year.

4. The enterprise must provide clear explanation on:

a) The reason for changing the end date of the annual accounting period;

b) The comparative data presented in the statement of profit or loss, the cash flow statement, and the notes to the financial statements; in cases where the “Previous period” data presented in the current statement of profit or loss and cash flow statement represent 12 months of the immediately preceding fiscal year, the enterprise must explain the non-comparability between the information of the current reporting period and that of the comparative period, in accordance with Vietnamese Accounting Standard No. 21 - Presentation of Financial Statements.

Article 22. Principles for the preparation and presentation of financial statements upon enterprise transformation

When undergoing a transformation of legal form, the enterprise must close its accounting books and prepare financial statements in accordance with the law. In the first accounting period following the transformation, the enterprise shall record accounting books and present its financial statements on the following principles:

1. For accounting books reflecting assets, liabilities, and equity: All balances of assets, liabilities, and equity as recorded in the accounting books of the former enterprise prior to transformation shall be recognized as the opening balances in the accounting books of the new enterprise.

2. For the statement of financial position: All balances of assets, liabilities, and equity carried over from the former enterprise prior to transformation shall be recognized as the opening balances of the new enterprise and presented in the column titled “Beginning of the year”.

3. For the statement of profit or loss and cash flow statement: Data covering the period from the date of transformation to the end of the first reporting period shall be presented in the column titled “Current period”. The column titled “Previous period” shall present cumulative data from the beginning of the reporting year to the date of transformation of the enterprise’s legal form; and the enterprise must clearly explain the reason for the non-comparability between the information of the reporting period and that of the comparative period in accordance with Vietnamese Accounting Standard No. 21 - Presentation of Financial Statements.

Article 23. Principles for the preparation and presentation of financial statements in cases of division, separation, consolidation, and merger of enterprises

1. General principles

a) In the case of a merger of enterprises:

a1) Upon a merger, the enterprises involved (the acquiring enterprise and the merged enterprise) must comply with the Law on Enterprises and other relevant laws.

a2) Determination of the value of net assets received by the acquiring enterprise from the merged enterprise shall be conducted as follows:

(i) Where the merger transaction constitutes a business as defined in Vietnamese Accounting Standard No. 11 - Business Combinations and the merger is conducted among enterprises under common control, the acquiring enterprise shall record in its accounting books the assets and liabilities received from the merged enterprise at the carrying amounts stated in the separate financial statements of the merged enterprise at the merger date.

(ii) Where the merger transaction constitutes a business as defined in Vietnamese Accounting Standard No. 11 - Business Combinations and the merger is conducted among enterprises not under common control, the acquiring enterprise shall recognize the assets and liabilities received from the merged enterprise under the purchase method in accordance with Vietnamese Accounting Standard No. 11 - Business Combinations.

(iii) Where the merger transaction does not constitute a business as defined in Vietnamese Accounting Standard No. 11 - Business Combinations, the acquiring enterprise shall recognize the assets and liabilities received from the merged enterprise as the acquisition of a group of assets or of net assets.

a3) Determination of the consideration transferred in a merger transaction

(i) Where the acquiring enterprise uses investments in subsidiaries, joint ventures, associates, or other investments, or additionally pays cash, or uses non-monetary assets such as inventories, fixed assets, investment properties, etc., or issues equity instruments to pay other investors in the merger transaction, the determination of the value of such investments, non-monetary assets, or equity instruments issued by the acquiring enterprise shall be as follows:

- If the merger transaction constitutes a business as defined in Vietnamese Accounting Standard No. 11 - Business Combinations, the determination of the value of the non-monetary assets exchanged, liabilities incurred, and equity instruments issued shall comply with the guidance provided in Vietnamese Accounting Standard No. 11 - Business Combinations.

- If the merger transaction does not constitute a business as defined in Vietnamese Accounting Standard No. 11 - Business Combinations, the acquiring enterprise shall use the fair value of the assets and liabilities received at the exchange date as the primary basis for determining the paid value of the non-monetary assets exchanged or the equity instruments issued to effect the merger transaction. Where the fair value of the assets and liabilities received at the exchange date cannot be determined or is unreliable, the enterprise shall base the determination on the fair value of the assets exchanged or another value supported by sufficient and reliable evidence. Any difference (if any) between the issue value of shares and their par value shall be recorded in the capital surplus. Any difference (if any) between the fair value and the carrying amount of inventories, fixed assets, investment properties, etc., shall be recognized in profit or loss in the period, similar to transactions of sale or exchange of such assets.

Where the consideration paid is jointly determined for multiple non-monetary assets exchanged, the acquiring enterprise shall, based on the knowledge of the parties as of the transaction date, allocate the consideration to each asset exchanged according to a systematic method (e.g., allocation based on carrying amount or fair value of the exchanged assets at the exchange date, etc.).

The parties must comply with relevant laws in determining the value of non-monetary assets exchanged to carry out the merger transaction. Revaluation of the carrying amount of non-monetary assets exchanged for the merger transaction shall be made only when there is conclusive and reliable evidence demonstrating that the market value of such non-monetary assets at the exchange date differs from their carrying amount. The parties participating in the merger transaction and related parties shall bear legal responsibility for any deliberate mispricing or incorrect valuation of the non-monetary assets exchanged to carry out the merger transaction.

(ii) The acquiring enterprise must cease recognizing the assets given up or paid to execute the merger transaction, such as investments in subsidiaries, joint ventures, associates, other investments, equity instruments issued, cash, non-monetary assets, or other benefits, etc., at their carrying amounts as shown in the separate financial statements of the acquiring enterprise. Such carrying amounts are determined at historical cost less provisions for asset impairment or at cost less accumulated depreciation in the case of fixed assets and investment properties.

a4) Accounting principles for the difference between the consideration transferred to execute the enterprise merger transaction (the value of the assets or benefits sacrificed or reduced by the acquiring enterprise) and the net asset value received from the merged enterprise in cases where the merger transaction qualifies as a business as defined in Vietnamese Accounting Standard No. 11 - Business Combinations:

(i) If the merger transaction occurs between parties under common control, the difference between the consideration transferred and the carrying amount of net assets in the separate financial statements of the merged enterprise shall be fully recorded in Account 4118 - Other capital, and periodically transferred to Account 421 - Undistributed profits after tax in the accounting books of the acquiring enterprise over a period not exceeding 10 years from the merger date, using the straight-line method or another more reasonable method.

(ii) If the merger transaction occurs between parties not under common control, the difference between the consideration transferred and the fair value of the identifiable net assets in the separate financial statements of the merged enterprise shall be accounted for as goodwill or negative goodwill arising from a business combination in accordance with Vietnamese Accounting Standard No. 11 - Business Combinations.

a5) In cases where the enterprise merger gives rise to intra-group transactions involving the purchase and sale of goods, services, or fixed assets, etc., the parent company shall, after taking over the net assets of the subsidiary, eliminate all such intra-group transactions prior to the preparation and presentation of the separate financial statements of the parent company for the accounting period in which the merger occurs.

a6) Determination of tax obligations related to intra-group transactions involving the purchase and sale of goods, services, or fixed assets, etc., during a merger shall comply with the tax laws. Deferred enterprise income tax related to temporary differences between the value and tax base of net assets (which may result from unrealized gains/losses from intra-group transactions) shall be accounted for by the acquiring enterprise in accordance with Vietnamese Accounting Standard No. 17 - Enterprise Income Tax.

a7) For enterprise merger transactions not covered by the above provisions, enterprises shall base on the principles in the Vietnamese Accounting Standards system, the guidance provided in this Circular, and the substance of the merger transaction to perform appropriate accounting.

b) In the case of division, separation, or consolidation of enterprises

b1) Upon division, separation, or consolidation, all involved enterprises (new enterprises and enterprises divided, separated, or consolidated) must comply with the law on enterprises and other relevant laws.

b2) Determination of the value of net assets received by the new enterprise from the divided, separated, or consolidated enterprise shall be conducted as follows:

(i) For consolidation of enterprises:

- Where the consolidation transaction constitutes a business as defined in Vietnamese Accounting Standard No. 11 - Business Combinations and is conducted among enterprises under common control, the new enterprise shall record in its accounting books the assets and liabilities received from the consolidated enterprises at the carrying amounts stated in their separate financial statements at the consolidation date.

- Where the consolidation transaction constitutes a business as defined in Vietnamese Accounting Standard No. 11 - Business Combinations and is conducted among enterprises not under common control, the new enterprise shall recognize the assets and liabilities received from the consolidated enterprise under the purchase method in accordance with Vietnamese Accounting Standard No. 11 - Business Combinations.

- Where the consolidation transaction does not constitute a business as defined in Vietnamese Accounting Standard No. 11 - Business Combinations, the new enterprise shall recognize the assets and liabilities received from the consolidated enterprises as the acquisition of a group of assets or of net assets.

(ii) For division or separation of enterprises: The new enterprise shall record in its accounting books the net assets received from the divided or separated enterprise at the carrying amounts stated in the separate financial statements of the divided or separated enterprise at the division or separation date.

b3) Where the new enterprises issue equity instruments to carry out the division, separation, or consolidation transaction, the new enterprises shall use the fair value of the assets and liabilities received at the exchange date as the primary basis to determine the fair value of the equity instruments, except for the case of determination of the value of equity instruments issued upon determination of the consideration transferred in a business combination, in which case the enterprise shall follow the guidance under Vietnamese Accounting Standard No. 11 - Business Combinations. If the fair value of assets and liabilities received at the exchange date cannot be determined or is unreliable, the fair value of equity instruments shall be the listed price on securities market. If the equity instruments have no listed price, another reliably verifiable value supported by evidence and reasonable calculation shall be used. Any difference between the issue value of shares and their par value shall be recorded in the capital surplus.

b4) For cases of enterprise division, separation, or consolidation not covered by the above provisions, enterprises shall base on the principles prescribed in the Vietnamese Accounting Standards system, the guidance provided in this Circular, and the substance of the enterprise division, separation, or consolidation transaction to perform appropriate accounting.

c) In cases where division, separation, consolidation, or merger of enterprises occurs in state enterprises and specific provisions differ from those stated in this Article, such transactions shall comply with the law applicable to state enterprises.

2. Recording of accounting books and preparation of financial statements by enterprises involved in division, separation, consolidation, and merger shall comply with the following principles:

a) For accounting books reflecting assets, liabilities, and equity:

a1) The portion of assets, liabilities, and equity received from the merged enterprise shall be recorded by the acquiring enterprise as amounts arising in the period in its accounting books. Opening balances of assets, liabilities, and equity in the accounting books of the acquiring enterprise shall remain unchanged.

a2) The portion of assets, liabilities, and equity received from the consolidated enterprises shall be recorded by the new enterprise as amounts arising in the period in its accounting books. Opening balances of assets, liabilities, and equity in the accounting books of the new enterprise shall have no data.

a3) The portion of assets, liabilities, and equity transferred from the divided enterprise to the new enterprise shall be recorded as amounts arising in the period in the accounting books of the new enterprise. Opening balances of assets, liabilities, and equity in the accounting books of the new enterprise shall have no data.

a4) The portion of assets, liabilities, and equity transferred from the separated enterprise to the new enterprise shall be recorded as amounts arising in the period in the accounting books of the new enterprise. Opening balances of assets, liabilities, and equity in the accounting books of the new enterprise shall have no data. Opening balances of assets, liabilities, and equity in the accounting books of the separated enterprise shall remain unchanged.

b) For the statement of financial position:

b1) The portion of assets, liabilities, and equity received from the merged enterprise shall be consolidated by the acquiring enterprise and presented in the column “End of the year” of the statement of financial position. The column “Beginning of the year” of the acquiring enterprise shall remain unchanged.

b2) The portion of assets, liabilities, and equity received from the consolidated enterprises shall be consolidated by the new enterprise and presented in the column “End of the year” of the statement of financial position. The column “Beginning of the year” of the new enterprise shall have no data.

b3) The portion of inherited assets, liabilities, and equity of the divided or separated enterprise shall be consolidated by the new enterprise and presented in the column “End of the year” of the statement of financial position. The column “Beginning of the year” of the new enterprise shall have no data. The column “Beginning of the year” of the separated enterprise shall remain unchanged.

c) For the statement of profit or loss and cash flow statement:

c1) The acquiring enterprise shall only record and present the data of the merged enterprise in its statement of profit or loss and cash flow statement from the merger date to the end of the reporting period in the column “Current year”. The column “Previous year” of the acquiring enterprise shall remain unchanged.

c2) The new enterprise shall only present data from the date of division, separation, or consolidation to the end of the first reporting period in the column “Current year”. The column “Previous year” of the new enterprise shall have no data. The separated enterprise shall cease recording and presenting data of the separated enterprise from the date of separation to the end of the reporting period.

Article 24. Principles for preparation and presentation of financial statements when the enterprise fails to meet the going concern assumption

1. When preparing and presenting financial statements, the enterprise must consider indicators showing that it does not meet the going concern assumption. An enterprise shall be deemed not to be a going concern if it expects to be dissolved, declared bankrupt, to cease operations, or to substantially downsize its business within 12 months or less from the end of the accounting period according to regulations. The enterprise must provide notes on its going concern status when there are material uncertainties that may cast significant doubt on its ability to continue as a going concern.

2. In the following cases, an enterprise shall still be regarded as a going concern and is not required to prepare and present financial statements on a non-going-concern basis:

- Transformation of enterprise's legal form, including the equitization of a state enterprise into a joint stock company;

- Division, separation, consolidation or merger of enterprises;

- Conversion of an enterprise (subsidiary) into an affiliated unit (branch) or vice versa.

3. When the enterprise does not meet the going concern assumption, it must still prepare all the following financial statements:

4. Where the going concern assumption is no longer appropriate at the end of the accounting period, the enterprise must reclassify non-current assets and non-current liabilities into current assets and current liabilities. At the same time, the enterprise must revalue all its assets and liabilities, except in cases where a third party assumes the rights to the assets or the obligations related to the liabilities at their book values. The enterprise must record the revalued amounts in its accounting books prior to preparing the statement of financial position.

5. The enterprise is not required to revalue its assets and liabilities if a third party assumes the rights to the assets or the obligations related to the liabilities in any of the following specific cases:

a) Each specific asset item is committed or guaranteed by another party to be recovered on behalf of the entity being dissolved or declared bankrupt at book value, and such recovery occurs before the entity officially ceases operations;

b) Each specific liability item is committed or guaranteed by a third party to be paid on behalf of the entity being dissolved or declared bankrupt, and the dissolved or bankrupt entity is obligated to reimburse the third party at book value only.

6. Revaluation shall be carried out for each type of asset and liability at the end of the accounting period according to the following principles:

a) For assets:

- Inventories, biological assets, long-term work in progress, equipment, materials, and long-term spare parts shall be measured and recognized at the lower of cost and net realizable value;

- Tangible fixed assets, intangible fixed assets, investment properties, and construction in progress shall be measured and recognized at the lower of remaining amount and recoverable amount (which is the liquidation value less estimated disposal costs). For finance lease fixed assets, if there is a mandatory purchase clause, they shall be measured and recognized similarly to the enterprise’s owned fixed assets; if returned to the lessor, they shall be measured and recognized at the amount of lease liability payable to the lessor;

- Trading securities shall be measured and recognized at fair value;

- Held-to-maturity investments, receivables, investments in subsidiaries, joint ventures, associates, and other entities shall be measured and recognized at the lower of carrying amount and recoverable amount (the realizable price less estimated selling expenses).

b) For liabilities: Where a written agreement on the payable amount exists among the parties, the revaluation shall be based on the agreed amount. Where no specific agreement exists, revaluation shall be carried out as follows:

- Monetary liabilities shall be measured and recognized at the higher of the carrying amount and the early repayment amount in accordance with the contract;

- Liabilities payable in financial assets shall be measured and recognized at the higher of the carrying amount and the fair value of such financial assets;

- Liabilities payable in inventories shall be measured and recognized at the higher of the carrying amount and the purchase price (including directly related costs) or the production cost of the inventories;

- Liabilities payable in fixed assets shall be measured and recognized at the higher of the carrying amount and the purchase price (including directly related costs) or the remaining value of the fixed assets.

c) Monetary items denominated in foreign currencies shall be revalued at the average transfer buying and selling exchange rate of the commercial bank with which the enterprise regularly transacts, as at the end of the accounting period, in the usual manner. For the balances of demand deposits denominated in foreign currencies, the enterprise must revalue them at the average transfer buying and selling exchange rate of the commercial bank where the enterprise opens its demand deposit account.

7. Accounting methods for certain asset items when the enterprise fails to meet the going concern assumption:

a) The provision for or assessment of asset impairment shall be directly deducted from the carrying amount of the asset, and no provision shall be made using Account 229 - Provision for Asset Impairment;

b) Depreciation or recognition of impairment of fixed assets and investment properties shall be directly deducted from the carrying amount of the assets, and Account 214 - Depreciation of Fixed Assets shall not be used to record accumulated depreciation.

8. When the going concern assumption is no longer appropriate, the enterprise must address certain financial matters as follows:

- Make provision in advance for expenses to determine business results for expected future losses if the likelihood of incurring such losses is reasonably certain and the amounts of losses can be reliably estimated; recognize current obligations for payables even in cases where complete dossier is not yet available (such as contractor acceptance records, etc.) but payment is certain;

- Transfer the cumulative revaluation differences of assets within equity to other income (in case of a gain) or other expenses (in case of a loss);

- Transfer all cumulative foreign exchange differences presented in the statement of financial position to financial income (in case of a gain) or financial expenses (in case of a loss);

- Fully write off any unallocated deferred expenses to recognize them as relevant production and business expenses for the period, depending on each specific transaction, in a manner similar to that applied by a going concern;

- The parent company shall cease recognizing goodwill on the consolidated financial statements, and the unamortized portion of goodwill shall be immediately recognized as administrative expenses;

- Gains or losses arising from the revaluation of assets and liabilities, after offsetting against any provisions previously made, shall be recognized as financial income, other income, financial expenses, or other expenses, respectively, depending on the specific item, in a manner consistent with that applied by a going concern.

9. When preparing financial statements, if the going concern assumption is no longer appropriate, the enterprise must provide detailed disclosures regarding its ability to generate cash and settle liabilities and equity for shareholders. At the same time, it must reclassify comparative data in the financial statements for the first period in which the enterprise fails to meet the going concern assumption (unless such reclassification cannot be performed) in order to ensure comparability with the reporting period. The enterprise must also present the nature, data, and reasons for such reclassification. If it is not possible to reclassify the comparative data, the enterprise must clearly disclose and explain the reasons for the lack of comparability between the information of the reporting period and that of the comparative period, specifically as follows:

- The amount of cash recoverable from the liquidation or disposal of assets and from the collection of receivables;

- The ability to settle liabilities in order of priority, such as repayment of debts to the State budget, payments to employees, repayment of loans, and payments to suppliers, etc.;

- The ability to make payments to owners, and for joint stock companies, clear disclosure of the expected amount payable per share;

- The expected time frame for settling liabilities and equity;

- The reasons for the lack of comparability between the reporting period and the comparative period: The enterprise prepared the financial statements of the previous period under the going concern assumption; however, for the reporting period, the enterprise expects to be dissolved, go bankrupt, cease operations, or substantially downsize its activities, and therefore presents its financial statements on a non-going-concern basis.

Article 25. Deadline for submission of financial statements

Enterprises shall submit their annual financial statements to competent agencies no later than 90 days from the end of the annual accounting period.

Parent companies and corporations shall stipulate the deadlines for submission of financial statements by their subsidiaries and affiliated units in order to consolidate or compile financial statements in accordance with current law and the management requirements of the entity.

For enterprises subject to other laws requiring the submission of financial statements for different accounting periods (quarterly, semi-annual reports, etc.), the deadlines for submission of such financial statements shall comply with such relevant laws.

Article 26. Recipients of financial statements

1. The submission of financial statements by enterprises to competent agencies shall be carried out in accordance with relevant laws.

2. For enterprises required by law to have their financial statements audited, when submitting financial statements to competent agencies, they must attach the audit report as prescribed.

3. In cases where an enterprise’s financial statements are stored in the National Business Registration Information System, agencies receiving enterprises’ financial statements may request the provision of information on the enterprise’s financial statements in accordance with the law.

Article 27. Disclosure of financial statements

1. Disclosure of financial statements means that an enterprise discloses information on its financial statements in one or several forms of disclosure specified in Clause 3 of this Article so that users such as owners, creditors, suppliers, investors, etc. may access the information presented in the enterprise’s financial statements.

2. Entities entitled to disclosure

Entities entitled to disclosure of financial statements are those who are permitted to receive information published about the enterprise’s financial statements in accordance with the law on enterprises and other relevant laws.

3. Forms of disclosure

- Publication issuance: This form refers to financial statements printed as a book to provide information to entities entitled to disclosure in accordance with the law on enterprises and other relevant laws. Enterprises must retain this publication as part of their accounting documents.

- Written notification: This form refers to the enterprise sending a written notice accompanied by its financial statements to entities entitled to disclosure of the enterprise’s financial statements in accordance with the law on enterprises and other relevant laws.

- Posting: This form refers to the enterprise publicly posting its financial statements at its head office to provide information to entities entitled to disclosure of the enterprise’s financial statements in accordance with the law on enterprises and other relevant laws.

- Posting on the enterprise’s website: This form refers to the enterprise posting its financial statements on its website, including a clear link to the financial statements of the enterprise.

- Other forms as prescribed by relevant laws.

4. The contents and deadlines for disclosure of financial statements shall comply with the Accounting Law and any amending, supplementing, or replacing documents.

5. For enterprises required by law to have their financial statements audited, when disclosing their financial statements, the audit report must be attached in accordance with regulations.

Chapter VI

IMPLEMENTATION ORGANIZATION

Article 28. Regulations on the use of accounting software

1. Enterprises may use accounting software to carry out accounting work in accordance with this Circular. The accounting software selected for use by the enterprise must, at a minimum, meet the following professional and technical accounting requirements:

a) The accounting processes and operations established within the software must ensure compliance with the provisions of accounting law, tax law, and other relevant laws, and must not alter the substance, principles, methods of accounting, or the information and data presented in accounting books and financial statements as prescribed.

b) The processing of accounting processes, related information, and data must ensure accuracy, consistency, and non-duplication. Any corrections must retain traceable records of the information previously recorded in the accounting books in chronological order.

c) Information and data in the accounting software must ensure confidentiality and security and must comply with the law on information security and safety. The established information system must be capable of alerting or preventing deliberate interference that may alter the information and data already recorded in the accounting books.

d) The software must be capable of providing sufficient and timely information and output data as required by competent agencies and other users of such information and data.

dd) The software must be capable of connecting or be ready to connect with other relevant software used in accounting operations (such as e-invoicing software, digital signature software, etc.).

e) The software must be capable of being upgraded, modified, or supplemented to conform with changes in accounting law, tax law, and other relevant laws.

2. The enterprise’s executive manager, chief accountant/person in charge of accounting, and concerned persons shall take responsibility for the accuracy and truthfulness of the accounting information and data provided by the accounting software.

Article 29. Conversion of balances in accounting books

1. Enterprises shall carry out the conversion of balances of the following accounts:

- Based on the balances of detailed Accounts 111, 112, 113, 121, 153, 154, 156, 211, 212, and 213, enterprises shall reclassify details as appropriate to their management requirements (if any).

- Enterprises participating as capital contributors but not acting as the accounting party for business cooperation contracts, if by the effective date of this Circular such contracts have not yet been completed, shall, based on the detailed balance of Account 138 - Other receivables (specifically the value of capital contributed to a business cooperation contract that is not jointly controlled), convert such balance to Account 2281 - Equity investment in other entities, in accordance with the nature and position of the enterprise in the business cooperation contract as guided in this Circular.

- Based on the detailed balance of Account 2413 - Extraordinary repair of fixed assets, enterprises shall transfer the portion of costs related to the upgrading or renovation of fixed assets that has not yet been completed to Account 2414 - Upgrading and renovation of fixed assets.

- Based on the detailed credit balance of Account 338 - Other payables, enterprises shall transfer the amount payable for dividends and profits to Account 332 - Payable dividends and profits.

- Based on the balances of Account 441 - Capital construction investment sources and Account 466 - Funds used to acquire fixed assets, enterprises shall transfer these balances to Account 4118 - Other capital.

2. Other detailed items currently recorded in relevant accounts that differ from the provisions of this Circular must be adjusted in accordance with the provisions herein.

Article 30. Transitional provisions

1. Enterprises shall apply the following principles when changing accounting policies:

a) In cases where an enterprise must change its accounting policies due to the first-time application of legal provisions or Vietnamese Accounting Standards, accounting regimes that already provide specific guidance on conversion (applying the retrospective adjustment method, simplified retrospective method, or non-retrospective method), the enterprise shall comply with such guidance. In which:

- The retrospective or non-retrospective adjustment method shall be applied in accordance with the provisions of Vietnamese Accounting Standard No. 29 - Changes in Accounting Policies, Accounting Estimates and Errors.

- The simplified retrospective adjustment method means that comparative data from the first period affected are not restated; instead, the cumulative impact as of the first day of the accounting period in which the new accounting policy is first applied shall be calculated and corresponding adjustments to assets and liabilities shall be made to retained earnings after tax or to other items in equity as of the first day of the accounting period applying the new accounting policy.

b) In cases where an enterprise must change its accounting policies due to the first-time application of legal provisions or Vietnamese Accounting Standards, accounting regimes that do not require retrospective or simplified retrospective adjustment, the enterprise may apply the non-retrospective method for such accounting policy.

c) In cases where an enterprise voluntarily changes its accounting policies, it must apply the retrospective method for such accounting policy change.

2. Enterprises that are investors purchasing bonds with arising discounts or premiums, if by the effective date of this Circular such bonds have not yet matured, may choose to apply either the retrospective adjustment method or the simplified retrospective adjustment method as guided in Clause 1 of this Article to account for the discounts or premiums arising from the purchase of such bonds in the financial statements for the first reporting period applying this Circular.

3. In cases where an enterprise has foreign exchange differences arising from the conversion of its accounting recording currency from Vietnamese dong into another recording currency and vice versa, which have been reflected in the credit or debit balance of Account 412 - Revaluation differences on assets and presented in the Balance Sheet, the enterprise shall transfer the credit or debit balance of Account 412 - Revaluation differences on assets to Account 421 - Undistributed profit after tax (Account 4211), and must clearly present in the notes to the financial statements the reasons for such transfer and its impact on the financial statements.

4. In cases where an enterprise is making an advance provision for extraordinary repair expenses of fixed assets, but by the effective date of this Circular, the extraordinary repair activities of such fixed assets have not yet been carried out, the enterprise shall cease making advance provision for extraordinary repair expenses of fixed assets. When the extraordinary repair activities of fixed assets are implemented, the enterprise shall offset the actual expenses incurred for extraordinary repairs of fixed assets against the amounts provisioned in advance. The difference between the amounts provisioned in advance and the actual repair expenses incurred shall be gradually allocated to production and business expenses of each period.

Article 31. Implementation provisions

1. This Circular takes effect on January 01, 2026, and shall apply to fiscal years beginning on or after January 01, 2026. This Circular replaces the Ministry of Finance's Circular No. 200/2014/TT-BTC dated December 22, 2014, guiding the enterprise accounting regime (except as provided in Clause 2 of this Article); the Ministry of Finance's Circular No. 75/2015/TT-BTC dated May 18, 2015, amending and supplementing Article 128 of the Ministry of Finance's Circular No. 200/2014/TT-BTC dated December 22, 2014; the Ministry of Finance's Circular No. 53/2016/TT-BTC dated March 21, 2016, amending and supplementing a number of articles of Circular No. 200/2014/TT-BTC dated December 22, 2014, and Circular No. 195/2012/TT-BTC dated November 15, 2012, guiding accounting applicable to project owners.

2. The accounting contents related to the equitization of state enterprises as guided in Clauses 3.11 and 3.12, Article 21; Clause 3.3, Article 35; Points h and i, Clause 3, Article 38; Point c, Clause 5, Article 40; Point c, Clause 3.1, Point d, Clause 3.2, Point e, Clause 3.3, and Point d, Clause 3.4, Article 45; Points k, l, and m, Clause 3, Article 47; Point l, Clause 3, Article 54; Clauses 3.2 and 3.9, Article 57; Point dd, Clause 3, Article 62; Point p, Clause 3, Article 63; Clause 3.13, Article 67; Article 71; Point g, Clause 3, Article 74; Point d, Clause 3, Article 77; Clauses 3.15 and 3.16, Article 92; Point m, Clause 3, Article 93; and Point d, Clause 3, Article 94 of Circular No. 200/2014/TT-BTC dated December 22, 2014, of the Ministry of Finance, guiding the enterprise accounting regime, shall continue to be implemented until a replacing document is issued.

Small- and medium-sized enterprises, non-public establishments, and other accounting units may choose to apply this Circular to accounting activities in conformity with their production and business operation characteristics and management requirements. When applying this Circular, units must ensure consistency for at least one accounting year. When an enterprise changes the applicable accounting regime, it must restate comparative data and information in a manner similar to the change of accounting policies, and concurrently provide explanations of the reasons and impacts of such change in the notes to the financial statements as prescribed.

4. Ministries, sectors, People’s Committees, provincial-level Departments of Finance and Tax Offices of centrally-run cities and provinces shall organize and provide guidance for enterprises in the implementation of this Circular. Any difficulties arising in the course of implementation should be reported to the Ministry of Finance for study and settlement./.