Accounting Law 2015, Law No. 88/2015/QH13

ACCOUNTING LAW^[2]

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Accounting Law.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Law prescribes the contents of accounting work, organization of accounting apparatus, accountants, provision of accounting services, state management of accounting and professional accounting organizations.

Article 2. Subjects of application

1. Agencies responsible for state budget collection and spending at all levels.

2. State agencies, organizations and non-business units funded by the state budget.

3. Organizations and non-business units not funded by the state budget.

4. Enterprises established and operating under Vietnamese law; branches and representative offices of foreign enterprises operating in Vietnam.

5. Cooperatives, cooperative unions.

6. Business households, cooperation teams.

7. Accountants.

8. Accounting practitioners; accounting service enterprises and business households.

9. Professional accounting organizations.

10. Other agencies, organizations and individuals engaged in accounting and provision of accounting services in Vietnam.

Article 3. Interpretation of terms

In this Law, the following terms and phrases are construed as follows:

1. Financial statement means the economic and financial information system of an accounting unit that is presented in the prescribed form according to the accounting standards and accounting regimes.

2. Accounting regime means regulations and guidelines on accounting in a particular field or particular jobs, which are promulgated by state management agencies in charge of accounting or by organizations as authorized by state management agencies in charge of accounting.  

3. Accounting documents means papers and information-carrying articles reflecting economic and financial operations that have arisen and completed, serving as a basis for making entries in accounting books.

4. Accounting unit means an agency or organization or a unit specified in Clause 1, 2, 3, 4 or 5, Article 2 of this Law, which makes financial statements.

5. Original price means the initial recognized value of an asset or a liability. The original price of an asset includes the costs of purchase, loading and unloading, transportation, assembly, processing and other directly related costs in accordance with law until the asset is put into the ready-for-use state.

6. Fair value means the value determined to be suitable with the market price and received upon the sale of one asset or transfer of one liability at the time the value is determined.

7. Accounting forms mean the forms of accounting books, the order and methods of making entries therein and the relationships among accounting books.

8. Accounting means the collection, processing, examination, analysis and supply of economic and financial information in the forms of value, kind and labor time.

9. Financial accounting means the collection, processing, examination, analysis and supply of economic and financial information in financial statements to the subjects that need to use information of the accounting unit.

10. Management accounting means the collection, processing, examination, analysis and supply of economic and financial information according to the requirement of economic and financial management and decision within the accounting unit.

11. Accounting practitioner means the person who is granted an accounting practice service registration certificate in accordance with this Law.

12. Accounting inspection means the consideration and assessment of the observance of the accounting law and the truthfulness and accuracy of accounting information and data.

13. Accountancy service business means the provision of accounting services by accountants and chief accountants, financial statement making and accounting consulting services and the performance of other jobs of accounting work under this Law to organizations or individuals upon request.

14. Accounting period means a definite period from the time an accounting unit starts to make entries in accounting books to the time it ends the making of entries in accounting books and closes accounting books in order to make financial statements.   

15. Economic and financial operations means specific arising activities that increase or decrease assets and asset-forming sources of an accounting unit.

16. Accounting methods means specific modes and procedures for performing each content of accounting work.

17. Electronic device means the device operating based on electric, electronic, digital, magnetic, wireless transmission, optical, electromagnetic or similar technology.

18. Accounting records means accounting documents, accounting books, financial statements, management accounting reports, audit reports, accounting inspection reports and other accounting-related records.

Article 4. Accounting tasks

1. Collecting and processing accounting information and data based on subjects and contents of accounting work according to the accounting standards and accounting regimes.

2. Inspecting and supervising financial revenues and expenditures, collection and payment obligations and debt clearance; inspecting the management and use of assets and asset-forming sources; detecting and precluding violations of finance and accounting laws.    

3. Analyzing accounting information and data; giving advice, proposing measures for economic and financial management and decision of accounting units.

4. Supplying accounting information and data in accordance with law.

Article 5. Accounting requirements

1. To fully reflect arising economic and financial operations in accounting documents, accounting books and financial statements.

2. To reflect accounting information and data in time and on schedule as prescribed.

3. To reflect accounting information and data explicitly, understandably and accurately.

4. To reflect truthfully and objectively the actual state, nature, content and value of economic and financial operations.

5. To reflect accounting information and data continuously from the commencement to the completion of economic and financial activities; from the establishment to the operation termination of accounting units; accounting data of this period must ensure continuity from those of the preceding period.

6. To classify and arrange accounting information and data in an orderly, systematic, comparable and verifiable manner.

Article 6. Accounting principles

1. The value of assets and liabilities shall be initially acknowledged according to their original prices. After the initial acknowledgement, for a number of assets or liabilities whose value regularly fluctuates according to the market price and may be re-determined trustfully, their value may be acknowledged according to their fair prices at the end of the period of making financial statements.

2. The selected accounting regulations and methods shall be applied consistently throughout the annual accounting period; if there are any changes therein, accounting units shall give explanations therefor in their financial statements.

3. The accounting units shall collect and reflect objectively, fully and truthfully all economic and financial operations according to the accounting period when such operations arise.    

4. Financial statements shall be fully, accurately and timely made and sent to competent agencies. Information and data in financial statements of accounting units shall be publicized according to Articles 31 and 32 of this Law.

5. Accounting units shall use the methods of asset valuation and allocation of revenues and expenditures in a prudent manner without distorting the results of their economic and financial operations. 

6. The making and presentation of financial statements must reflect the nature other than the form and the name of transactions.

7. State agencies, organizations and non-business units funded by the State budget shall, in addition to complying with Clauses 1, 2, 3, 4, 5 and 6 of this Article, do accounting work according to the state budget index.

Article 7. Accounting standards and professional code of ethics of accounting work

1. Accounting standards include basic accounting principles and methods for  making financial statements.

2. Code of ethics of accounting work comprise regulations and guidance on principles and content of application of professional ethical standards to accountants, accounting practitioners, and accounting service enterprises and business enterprises.

3. The Ministry of Finance shall prescribe accounting standards and professional code of ethics for accountants based on international accounting standards in line with Vietnam’s specific conditions.

Article 8. Accounting objects

1. The accounting objects in state budget collection and spending activities, administrative and non-business activities of units and organizations funded by the state budget include:

a/ Cash, supplies and fixed assets;

b/ Funding sources, funds;

c/ Payments inside and outside the accounting unit;

d/ Revenues, expenditures and handling of differences in revenues from and expenditures on activities;

dd/ Revenues, expenditures and the state budget remainder;

e/ Financial investments and state credit;

g/ Public debts and the handling thereof;

h/ Public properties;

i/ Other assets, receivables and payables related to the accounting unit.

2. The accounting objects in activities of a unit or an organization not funded by the state budget include assets and asset-forming sources specified at Points a, b, c, d and i, Clause 1 of this Article. 

3. The accounting objects in business activities, excluding activities specified at Clause 4 of this Article, include:

a/ Assets;

b/ Liabilities and owner’s equity;

c/ Turnovers, business costs, incomes and other outlays;

d/ Taxes and amounts remittable into the state budget;

dd/ Business results and shared business results;

e/ Other assets, receivables and payables related to the accounting units.

4. The accounting objects in banking, credit, insurance, securities, financial investment activities include:

a/ Subjects specified in Clause 3 of this Article;

b/ Financial investment, credit;

c/ Payments inside and outside the accounting unit;

d/ Committed and guaranteed amounts, valuable papers.

Article 9. Financial accounting, management accounting, general accounting and detailed accounting

1. Accounting at an accounting unit includes financial accounting and management accounting.

2. When carrying out financial accounting and management accounting, an accounting unit shall practice general accounting and detailed accounting as follows:

a/ General accounting must collect, process, record and supply general information on economic and financial activities of the accounting unit. General accounting uses the monetary unit to reflect the situation of assets, the asset-forming sources, the situation and results of economic and financial activities of the accounting unit. General accounting is implemented based on information and data from detailed accounting;

b/ Detailed accounting must collect, process, record and supply detailed information in the monetary unit, kind unit and labor-time unit according to each particular accounting object in the accounting unit. Detailed accounting illustrates general accounting. Detailed accounting data must match general accounting data in the same accounting period.

3. The Ministry of Finance shall guide the application of management accounting suitable to each field of activity.

Article 10. Units of calculation used in accounting

1. The monetary unit used in accounting is Vietnam dong, with the national symbol of “d” and the international symbol of “VND”. In case economic or financial operations arise in foreign currencies, accounting units must record in both original currencies and Vietnam dong at the actual exchange rates, unless otherwise prescribed by law; for a foreign currency without a rate of exchange with Vietnam dong, it shall be converted via a foreign currency with a rate of exchange with Vietnam dong.

An accounting unit that has revenues and expenditures mostly in a foreign currency may choose that foreign currency as the monetary unit for accounting, shall bear responsibility before law and notify to the direct managing tax agency. When making financial statements for use in Vietnam, the accounting unit shall convert it into Vietnam dong at the actual exchange rate, unless otherwise prescribed by law.

2. The kind unit and the labor-time unit are the official units of measurement of the Socialist Republic of Vietnam in accounting; in case other units of measurement are used, they shall be converted into the official units of measurement of the Socialist Republic of Vietnam.

3. Accounting units may round up and use shortened units of calculation in compiling or publicizing financial statements.

4. The Government shall detail and guide the implementation of this Article.

Article 11. Script and numerals used in accounting

1. The script used in accounting is the Vietnamese script. Where a foreign script is to be used in accounting documents, accounting books and financial statements in Vietnam, the Vietnamese script and the foreign script shall be used simultaneously.

2. Numerals used in accounting are Arabic numerals; following the thousand, million and billion, a point (.) shall be placed; for decimals, a comma (,) shall be placed after the numeral representing the unit.

3. Enterprises and branches of foreign enterprises or organizations that have to transfer financial statements to overseas parent companies or organizations or share the management software and pay for transactions with their parent companies or organizations may use a comma following the thousand, million and billion; and use a point (.) following the number representing the unit and shall explain this in accounting records and books and financial statements. In this case, financial statements submitted to the tax, statistics and other competent state agencies must comply with Clause 2 of this Article.

Article 12. Accounting period

1. An accounting period may be an annual accounting period, a quarterly accounting period or a monthly accounting period, which is prescribed as follows:

a/ An annual accounting period consists of twelve months, counting from the beginning of January 1 to the end of December 31 of the calendar year. For accounting units which have unique organizational and operational characteristics, they may select an annual accounting period consisting of twelve full months according to the calendar year, starting from the beginning of the first day of the first month of a quarter to the end of the last day of the last month of the preceding quarter of the subsequent year and shall notify the finance and tax agencies thereof;

 b/ A quarterly accounting period consists of three months, counting from the beginning of the first day of the first month of a quarter to the end of the last day of the last month of the quarter;

c/ A monthly accounting period consists of one month, counting from the beginning of the first day to the end of the last day of the month.

2. The accounting period of a newly founded accounting unit is prescribed as follows:

a/ The first accounting period of a newly founded enterprise shall be counted from the date it is granted an enterprise registration certificate to the end of the last day of the annual accounting period, the quarterly accounting period or the monthly accounting period prescribed in Clause 1 of this Article;

b/ The first accounting period of another accounting unit shall be counted from the effective date stated in its establishment decisions to the end of the last day of the annual accounting period, the quarterly accounting period or the monthly accounting period prescribed in Clause 1 of this Article.

3. For accounting units being divided, consolidated, merged, transformed in its type or form of ownership, dissolved, terminating operation or going bankrupt, their last accounting period shall be counted from the beginning of the first day of the annual accounting period, the quarterly accounting period or the monthly accounting period prescribed in Clause 1 of this Article to the end of the day preceding the effective date stated in the decision on their division, consolidation, merger, transformation of their type or form or ownership, dissolution, operation termination or bankruptcy.

4. In case the first annual accounting period or the last annual accounting period is shorter than 90 days, it may be added to the subsequent annual accounting period or the preceding annual accounting period for counting as an annual accounting period. The first or last annual accounting period must be shorter than fifteen months.

Article 13. Prohibited acts

1. Forging, falsely declaring, colluding with or forcing other persons to forge or falsely declare or erase accounting documents or other accounting records.

2. Deliberately supplying or certifying, colluding with or forcing other persons to supply or certify untruthful accounting information and data.

3. Failing to record in accounting books assets and liabilities of or related to accounting units.

4. Destroying or deliberately damaging accounting records ahead of the archival time limit specified in Article 41 of this Law.

5. Promulgating or publicizing accounting standards and regimes ultra vires.

6. Bribing, threatening, taking revenge on or forcing accountants in the performance of accounting work in contravention of this Law.

7. Persons in charge of managing or administrating accounting units and working concurrently as accountants, storekeepers or cashiers, except for private enterprises and single-member limited liability companies owned by individuals.

8. Arranging or hiring accountants or chief accountants who fail to satisfy the standards and conditions prescribed in Articles 51 and 54 of this Law.

9. Hiring, borrowing, leasing or lending accountant certificates or accounting practice service registration certificates in any forms.

10. Establishing two or more systems of financial accounting books or providing and publicizing financial statements containing inconsistent data in the same accounting period.

11. Providing accounting services without a certificate of eligibility to provide accounting services or practicing accounting service when failing to satisfy the conditions prescribed by this Law.

12. Using “accounting service” phrase in the name of the enterprise after six months since the date of being granted an enterprise registration certificate but not being granted a certificate of eligibility to provide accounting services or after the enterprise has stopped providing accounting services.

13. A unit hiring an individual or organizations ineligible to practice or provide accounting services to provide such services to the unit itself.

14. Accounting practitioners and accounting service enterprises conniving with or clients to supply or certify untruthful accounting information and data.

15. Other prohibited acts in accounting activities as prescribed by the anti-corruption law.

Article 14. Validity of accounting records and data

1. Accounting records and data are legally valid with regard to accounting units and shall be publicized in accordance with law.

2. Accounting records and data shall be used as a basis for making and approving plans, cost estimates and final settlements and for considering and handling illegal acts.

Article 15. Responsibilities for managing, using and supplying accounting information and records

1. Accounting units shall manage, use, preserve and archive their accounting records.

2. Accounting units shall supply complete and truthful accounting information and records in a timely and transparent manner to agencies, organizations and individuals in accordance with law.

Chapter II

CONTENTS OF ACCOUNTING WORK

Section 1

ACCOUNTING DOCUMENTS

Article 16.  Contents of accounting documents

1. An accounting document must contain the following principal contents:

a/ The name and serial number of the accounting document;

b/ The date of making the accounting document;

c/ The name and address of the accounting document maker;

d/ The date and address of the accounting document recipient;

dd/ The contents of the arising economic or financial operation;

e/ The quantity, unit price and money amount of the economic or financial operation, written in figures; the total money amount of the accounting document for money receipt or payment written in both figures and words;

g/ The signatures and full names of the maker and the approver of, and persons related to, the accounting document.

2. In addition to the principal contents specified in Clause 1 of this Article, accounting documents may have other contents, depending on their types.

Article 17. Electronic documents

1. Electronic documents shall be regarded as accounting documents when they contain the contents specified in Article 16 of this Law, are expressed in the form of electronic data and encoded, and are not altered in the process of transmission via computer network, telecommunications network or such information-carrying articles as magnetic tapes or discs or payment cards.

2. Electronic documents must ensure the confidentiality and integrity of data and information during use and archival; shall be managed and examined against all forms of exploitation abuse, hacking, copy, stealing or use in contravention of regulations. Electronic documents shall be managed like accounting records in original form in which they are created, transmitted or received, but require adequate appropriate devices to use.

3. When paper documents are converted into electronic documents for transaction or payment, or vice versa, electronic documents are valid for the performance of such economic and financial operations while paper documents are only valid for recording, monitoring and examination but not for transaction or payment.

Article 18. Making and archival of accounting documents

1. Accounting documents shall be made for all arising economic and financial operations related to the operation of accounting units. For every economic or financial operation, accounting documents shall be made only once.  

2. Accounting documents shall be made legibly, fully, timely and accurately according to the contents in their prescribed forms. For accounting documents that have no forms, accounting units may make such accounting documents by themselves, which must contain all the contents prescribed in Article 16 of this Law.

3. The contents of economic and financial operations presented on accounting documents may neither be abbreviated, nor erased nor corrected, shall be written with ink pen, with figures and words closely following one another without space in between and blank spaces being crossed out; erased or corrected documents are not valid for payment and recording in accounting books. When an accounting document is wrongly written, it shall be crossed out.

4. Accounting documents shall be made with a sufficient number of copies as prescribed. When an accounting document is made with many copies for a single economic or financial operation, the contents of such copies must be alike.

5. The makers, approvers and other signees of accounting documents shall take responsibility for the contents thereof.

6. Accounting documents made in the form of electronic document must comply with Article 17, and Clauses 1 and 2 of this Article. Electronic documents shall be printed out for archival under Article 41 of this Law. In case electronic documents are not printed out but archived in electronic devices, information and data therein shall be kept safe and confidential and searchable during the archival period.

Article 19. Signing of accounting documents

1. Accounting documents shall be properly signed by the holders of the titles specified in the documents. Signatures on accounting documents shall be written in unfadable ink. Accounting documents may not be signed in red ink or with carved signature seals. A person’s signature on accounting documents must be uniform. Signature of the blind on accounting documents must comply with the Government’s regulations.

2. Accounting documents shall be signed by competent persons or authorized persons. It is strictly forbidden to sign accounting documents that do not fully contain the contents falling under the responsibilities of the signees.       

3. Accounting documents for payment shall be signed by persons competent to approve payment and chief accountants or authorized persons before the payment is made. Accounting documents for payment shall be signed on every copy.

4. Electronic documents must contain electronic signatures. Signatures on electric documents are as valid as those on paper documents.

Article 20. Invoices

1. Invoice means an accounting document made by an organization or individual selling goods or providing services to record information on the goods sale or service provision in accordance with law.

2. The contents and forms of invoices, invoice-making order, and management and use of invoices must comply with the tax law.

Article 21. Management and use of accounting documents

1. Information and data written on accounting documents shall be used for making entries in accounting books.

2. Accounting documents shall be arranged according to their economic contents and in the temporal order and safely preserved in accordance with law.

3. Only competent state agencies may temporarily seize, confiscate or seal up accounting documents. In case of temporary seizure or confiscation of accounting documents, a competent state agency shall make copies of the seized or confiscated documents and sign such copies for certification and hand over such copies to the accounting unit, and concurrently make written records thereof, specifying the reason therefor and the quantity of each kind of seized or confiscated documents; such written records shall be signed and sealed.

4. The agency competent to seal up accounting documents shall make written records thereon, specifying the reasons therefor and the quantity of each kind of sealed-up accounting documents; such records shall be signed and sealed. 

Section 2

BOOK-KEEPING ACCOUNTS AND ACCOUNTING BOOKS

Article 22. Book-keeping accounts and the system thereof

1. Book-keeping accounts shall be used to classify and systemize economic and financial operations according to their economic contents.

2. The system of book-keeping accounts consists of accounts that are needed. Each accounting unit may use a system of book-keeping accounts for financial accounting purpose under the Ministry of Finance’s regulations.

3. The Ministry of Finance shall prescribe in detail book-keeping accounts and the systems of book-keeping accounts applicable to the following accounting units:

a/ Accounting units responsible for state budget collection and spending;

b/ Accounting units funded by the state budget;

c/ Accounting units not funded by the state budget;

d/ Accounting units being enterprises;

dd/ Other accounting units.

Article 23. Selection and application of a system of book-keeping accounts

1. Accounting units shall select one among the systems of book-keeping accounts prescribed by the Ministry of Finance for application at their respective units.

2. Accounting units may itemize the selected book-keeping accounts to meet their management requirements.

Article 24. Accounting books

1. Accounting books shall be used to record, systemize and store all economic and financial operations that have arisen in relation to the accounting units.

2. An accounting book shall clearly show the name of the accounting unit, the book’s name, the dates of its opening and closing; the signatures of its maker, the chief accountant and the accounting unit’s at-law representative, page numbers, and stamps on every two adjoining pages.

3. An accounting book must contain the following principal contents:

a/ The dates of entries;

b/ The serial numbers and dates of accounting documents used for making entries;

c/ Summaries of the arising economic and financial operations;

d/ Money amounts of the arising economic and financial operations, which are recorded in relevant book-keeping accounts;   

dd/ The period-beginning balance, amounts arising in the period and the period-end balance.

4. Accounting books include general and detailed accounting books.

5. The Ministry of Finance shall prescribe in detail accounting books. 

Article 25. The system of accounting books

1. Accounting units shall select one among the systems of accounting books prescribed by the Ministry of Finance for application at their respective units.

2. Each accounting unit shall use only one system of accounting books for an annual accounting period.

3. Accounting units may concretize the selected accounting books to meet their management requirements.

Article 26. Opening, recording, closing and archival of accounting books

1. Accounting books shall be opened at the beginning of an annual accounting period; newly set up accounting units shall open accounting books upon their establishment.

2. Accounting units shall make entries in accounting books based on their accounting documents.

3. Accounting books shall be recorded timely, legibly and fully according to their contents. Information and figures recorded in accounting books must be accurate, truthful and true to accounting documents.

4. Entries shall be made in accounting books in the temporal order of arising of economic and financial operations. Information and figures recorded in accounting books of this year must continue from those recorded on accounting books of the preceding year. Accounting books shall be recorded continuously from their opening to closing.

5. Information and figures in accounting books shall be written with ink pen and without inserts above or below; may be neither overwritten nor written on every other line; in case a page is not fully filled in, the blank space shall be crossed out; when a page is fully filled in, the total sum on the page shall be calculated and transferred to the next page.  

6. Accounting units shall close their accounting books at the end of an accounting period before making financial statements and in other cases prescribed by law.

7. Accounting units may make entries in their accounting books by electronic devices. In this case, they shall comply with the provisions on accounting books in Articles 24 and 25 and Clauses 1, 2, 3, 4 and 6 of this Article, except stamping of every two adjoining pages. After closing electronic accounting books, they shall print them out and bind in separate books for each annual accounting year for archival. In case accounting books are not printed out but archived in electronic devices, information and data shall be kept safe and confidential and searchable during the archival period.

Article 27. Correction of accounting books

1. When errors are detected in accounting books, wrong information or figures may not be erased untraceably but shall be corrected by one of the three following methods:

a/ Making correction by crossing the wrong figures or words with a straight line, then writing the correct figures or words above, next to which there must be the chief accountant’s signature;

b/ Writing negative figures by re-writing the erroneous figures in red ink or in brackets, then writing the correct ones, next to which there must be the chief accountant’s signature;       

c/ Writing alterations by making “altering documents” showing the difference.

2. If detecting errors in accounting books before submitting annual financial statements to competent state agencies, corrections shall be made on the accounting books of that year.

3. If detecting errors in accounting books after submitting annual financial statements to competent state agencies, corrections and explanations on such corrections shall be made on the accounting books of the year when errors are detected.

4. Corrections in electronic accounting books shall be made by the methods specified at Point c, Clause 1 of this Article.

Article 28. Valuation and recognition according to fair value

1. Assets and liabilities that shall be valued and recognized according to fair value at the end of the period for making financial statements include:

a/ Financial tools that shall be recognized and re-valued according to fair value as  required by accounting standards;

b/ Monetary items of foreign currency origin that shall be valued according to the real exchange rate;

c/ Other assets or liabilities which regularly fluctuate in value and are required by accounting standards to be re-valued according to fair value.

2. The re-valuation of assets and liabilities according to fair value shall be based on true grounds. If there is no ground to determine a trustful value, assets and liabilities shall be recognized according to their original prices.

3. The Ministry of Finance shall prescribe in detail assets and liabilities to be recognized and re-valued according to fair value and accounting methods for such recognition and re-valuation.

Section 3

FINANCIAL STATEMENTS

Article 29.  Financial statements of accounting units

1. Financial statements of accounting units shall be used to summarizing and describing the financial situation and performance of accounting units. Financial statements of an accounting unit include:

a/ Statement of financial situation;

b/ Statement of performance results;

c/ Cash flow statement;

d/ Written explanations on the financial statements;

dd/ Other statements prescribed by law.

2. Financial statements shall be made as follows:

a/ An accounting unit shall make financial statements at the end of the annual accounting period; in case the law requires financial statements to be made according to another accounting period, financial statements shall be made according to such accounting period;

b/ Financial statements shall be made based on the figures after the closing of accounting books. The superior accounting unit shall make general financial statements or consolidated financial statements based on financial statements of the accounting units in the same superior accounting unit;

c/ Financial statements shall be made according to the prescribed contents and methods and be presented consistently in different accounting periods; in case the financial statements are presented inconsistently in different accounting periods, the reasons therefor shall be provided;     

d/ Financial statements shall be signed by the makers, chief accountants and the at- law representatives of the accounting unit. The signees of financial statements shall be held accountable for their contents.

3. Annual financial statements of accounting units shall be submitted to competent state agencies within 90 days after the last day of the annual accounting period prescribed by law.

4. The Ministry of Finance shall prescribe in detail financial statements for each field of activity; responsibilities, subjects, periods and methods of making, deadlines for submission, places of receipt and publicization of financial statements.

Article 30. The State’s financial statements

1. The State’s financial statements shall be made on the basis of consolidating financial statements of state agencies, public non-business units, economic organizations and other related units in the state sector and used for summarizing and describing the State’s financial situation and results of and cash flow from the State’s financial activities nationwide and in each locality.

2. The State’s financial statements must provide information on state budget revenues and expenditures, state financial funds, public debts, state capital in enterprises, assets, sources and the use of state capital. The State’s financial statements include:

a/ Statement of the State’s financial situation;

b/ Statement on results of the State’s financial activities;

c/ Cash flow statement;

d/ Written explanations on the State’s financial statements.

3. The State’s financial statements shall be made as follows:

a/ The Ministry of Finance shall make the State’s financial statements on a national scale and present them to the Government for reporting to the National Assembly; instruct the State Treasury to assume the prime responsibility for, and coordinate with financial agencies in, making local financial statements to be presented to provincial-level People’s Committees for reporting to the same-level People’s Councils;

b/ State agencies, non-business units, economic organizations and related units shall make reports of their respective units and provide necessary financial information for the making of the State’s financial statements on a national and local scale.

4. The State’s financial statements shall be made and presented to the National Assembly and People’s Councils at the same time with the settlement of the state budget in accordance with the Law of the State Budget.

5. The Government shall prescribe in detail the contents of the State’s financial statements; the making and disclosure of the State’s financial statements; and responsibilities of agencies, units and localities to provide information for the making of the State’s financial statements.

Article 31. Financial statement contents to be disclosed

1. Accounting units funded by the state budget shall disclose information on state budget revenues and expenditures in accordance with the Law on the State Budget.

2. Accounting units not funded by the state budget shall disclose annual settlements of financial revenues and expenditures.

3. Accounting units using the people’s contributed amounts shall disclose the purposes of mobilization and use of contributed amounts, contributors, mobilization levels, use results and settlements of collection and spending of each contributed amount.

4. Accounting units carrying out business activities shall disclose:

a/ The situation of assets, liabilities and owner’s equity;

b/ Business results;

c/ Deductions for, and the use of, various funds;

d/ Laborers’ incomes;

dd/ Other contents prescribed by law.

5. When disclosed, the financial statements of accounting units, which are required by law to be audited, shall be enclosed with the auditing organizations’ audit reports.

Article 32. Forms of and deadlines for disclosure of financial statements

1. Financial statements may be disclosed in one or several of the following forms:

a/ Publication;

b/ Written notification;

c/ Public posting;

d/ Posting on websites;

dd/ Other forms prescribed by law.

2. The form and deadlines for accounting units funded by the state budget to disclose their financial statements must comply with the law on the state budget.

3. Accounting units not funded by the State budget and accounting units using people’s contributed amounts shall disclose their annual financial statements within 30 days after sending the financial statements.

4. Accounting units carrying out business activities shall disclose their financial statements within 120 days from the last day of the annual accounting period. In case the laws on securities, credit and insurance prescribe forms and deadlines for the disclosure of financial statements different from those prescribed in this Law, accounting units shall comply with such laws.

Article 33. Auditing of financial statements

1. The accounting units’ annual financial statements that are required by law to be audited shall be audited before they are submitted to competent state agencies and before they are disclosed.

2. When audited, accounting units shall fully observe the law on audit.

3. Audited financial statements of accounting units, when being submitted to competent state agencies, shall be enclosed with the audit reports.

Section 4

ACCOUNTING INSPECTION

Article 34. Accounting inspection

1. Accounting units shall submit to accounting inspection by competent agencies. Accounting inspection shall be conducted only according to decisions issued by competent agencies in accordance with law, except for agencies specified at Point b, Clause 3 of this Article.

2. Agencies competent to decide on accounting inspection include:

a/ The Ministry of Finance;

b/ Ministries, ministerial-level agencies, government-attached agencies and other central agencies that shall decide on accounting inspection at accounting units under their assigned management;

c/ Provincial-level People’s Committees that shall decide on accounting inspection at accounting units in their respective localities;

d/ Superior units that shall decide on accounting inspection at their affiliated units.

3. Competent accounting inspection agencies include:

a/ Agencies specified in Clause 2 of this Article;

b/ State inspection and specialized finance inspection agencies, the state audit office and tax agencies when performing inspection, examination and auditing tasks at the accounting units.

Article 35. Contents of accounting inspection

1. The contents of accounting inspection include:

a/ Inspecting the performance of the contents of accounting work;

b/ Examining the organization of the accounting apparatus and accountants;

c/ Examining the organization of the management and the provision of accounting services;

d/ Inspecting the observance of other regulations on accounting.

2. The contents of accounting inspection shall be stated in the inspection decisions, except the case specified at Point b, Clause 3, Article 34 of this Law.

Article 36. Time for accounting inspection

The time for accounting inspection shall be decided by competent accounting inspection agencies but must not exceed 10 days, excluding weekends and public holidays as prescribed by to the Labor Code. If accounting inspection contents are complicated and need time for assessment, comparison and conclusion, competent accounting inspection agencies may extend the inspection time for no more than five days, excluding weekends and public holidays as prescribed the Labor Code.

Article 37. Rights and responsibilities of accounting inspection teams

1. When conducting accounting inspection, an accounting inspection team shall announce the accounting inspection decision, except for inspection, examination and auditing teams specified at Point b, Clause 3, Article 34 of this Law. The team may request the inspected accounting unit to supply accounting records pertaining to the accounting inspection contents and give justifications when necessary.

2. Upon concluding the accounting inspection, the accounting inspection team shall make a written record thereof and hand over one copy to the inspected accounting unit; if discovering any violations of the accounting law, it shall handle them according to its competence or transfer the dossiers thereof to competent state agencies for handling in accordance with law.

3. The head of the accounting inspection team shall take responsibility for inspection conclusions.

4. The accounting inspection team shall observe the process, contents, scope and time of inspection without affecting the normal operation of the inspected accounting unit and harassing it.

Article 38. Rights and responsibilities of accounting units subject to accounting inspection

1. An accounting unit subject to accounting inspection has the following responsibilities:

a/ To provide the accounting inspection team with the accounting records related to the inspection contents and give justifications at the request of the team;

b/ To implement the conclusions of the accounting inspection team.

2. An accounting unit subject to accounting inspection has the following rights:

a/ To decline the inspection if seeing that it is conducted ultra vires against Clauses 2 and 3 of Article 34 or its contents are contrary to Article 35 of this Law;

b/ To lodge complaints with competent state agencies if disagreeing with the conclusions of the accounting inspection team.

Article 39. Internal control and internal audit

1. Internal control means the establishment and organization of implementation of mechanisms, policies, processes and regulations in conformity with law inside an accounting unit in order to promptly prevent, detect and handle risks and meet set requirements.

2. Every accounting unit shall establish an internal control system to meet the following requirements:

a/ Its assets are safe and properly and efficiently used;

b/ Its operations are duly approved and fully recorded to serve the making and presentation of truthful and reasonable financial statements.

3. Internal audit means the examination, assessment and supervision of the completeness, suitability and efficiency of internal control.

4. Internal audit has the following tasks:

a/ To examine the suitability, validity and efficiency of the internal control system;

b/ To examine and certify the quality and reliability of economic and financial information of financial statements and management accounting reports before signing and approval;

c/ To examine the observance of operation and management principles and the abidance by the law, financial and accounting regimes, policies, resolutions and decisions of the accounting unit’s leaders;

d/ To find loopholes, weaknesses, and frauds in the management and protection of the accounting unit’s assets; to propose solutions for improving and completing the accounting unit’s management and administration system.

5. The Government shall prescribe in detail internal audit in enterprises, state agencies and non-business units.

Section 5

ASSET INVENTORY, PRESERVATION AND ARCHIVAL OF ACCOUNTING RECORDS

Article 40. Asset inventory

1. Asset inventory means the weighing, measurement or counting of volumes or quantities; the certification and assessment of the quality or value of assets and capital sources available at the time of inventory in order to check and compare with the data in accounting books.

2. Accounting units shall inventory their assets in the following cases:

a/ At the end of the annual accounting period;

b/ Upon division, splitting, consolidation, merger, dissolution, operation termination, bankruptcy, sale or lease;

c/ Upon transformation of type or form of ownership;

d/ Upon occurrence of a fire or flood or another unexpected damage;

dd/ Upon re-valuation of assets under decision of competent state agencies;

e/ Other cases prescribed by law.

3. After inventorying their assets, accounting units shall make general reports on inventory results. If there are any discrepancies between the actual inventory figures and those recorded in accounting books, the accounting units shall identify the causes and reflect the discrepancies and handling results in accounting books before making financial statements.

4. The inventory must reflect the actual assets and asset-forming sources. The makers and signees of general reports on inventory results shall take responsibility for the inventory results.

Article 41. Preservation and archival of accounting records

1. Accounting records shall be fully and safely preserved by accounting units in the process of use and archival.

2. In case accounting records are temporarily seized or confiscated, written records shall be made and enclosed with the copies of such accounting records; in case they are lost or destroyed, written records shall be made and enclosed with their copies or written certifications.

3. Accounting records shall be put into archive within 12 months from the last day of the annual accounting period or after the accounting work finishes.

4. The accounting units’ at-law representatives shall organize the preservation and archival of accounting records.

5. Accounting records shall be archived according to the following time limits:

a/ At least 5 years, for accounting records used for the accounting units’ management and administration work, including accounting documents not directly used for making entries in accounting books and financial statements;

b/ At least 10 years, for accounting documents directly used for making entries in accounting books and financial statements, accounting books and annual financial statements, unless otherwise prescribed by law;

c/ Permanent archival, for accounting documents of historical value or of important economic, security or defense significance. 

6. The Government shall prescribe in detail each kind of accounting records to be archived, archival time limits and the time for counting the archival time limits prescribed in Clause 5 of this Article, the archival places and the procedures for destruction of archived accounting records.

Article 42. Responsibilities of accountings units in case accounting records are lost or damaged

Upon detecting that its accounting records are lost or damaged, an accounting unit shall immediately:

1. Inspect, identify, and make records of, the quantities, actual conditions and causes of the loss or damage of accounting records, and notify concerned organizations and individuals as well as competent state agencies thereof;

2. Organize the restoration of damaged accounting records;

3. Contact those organizations and individuals with relevant accounting records and data for copying or re-certification of the lost or damaged accounting records;

4. For accounting records related to assets, which cannot be restored by the methods prescribed in Clauses 2 and 3 of this Article, the related assets shall be inventoried so as to re-make the lost or damaged accounting records.

Section 6

ACCOUNTING WORK IN CASE OF DIVISION, SPLITTING, CONSOLIDATION, MERGER, TRANSFORMATION OF TYPE OR FORM OF OWNERSHIP, DISSOLUTION, OPERATION TERMINATION AND BANKRUPTCY OF ACCOUNTING UNITS

Article 43. Accounting work in case of division of an accounting unit

1. An accounting unit that is divided into new ones shall:

a/ Close accounting books, inventory assets, determine unpaid debts, and make a financial statement;

b/ Distribute assets and unpaid debts, make a written handover record, and make entries in accounting books according to such record;

c/ Hand over accounting documents related to the assets and unpaid debts to the new accounting units.

2. Based on the written handover record, new accounting units shall open and make entries in their accounting books in accordance with this Law.

Article 44. Accounting work in case of splitting of an accounting unit

1. An accounting unit that has one of its parts split to form a new accounting unit shall:

a/ Inventory assets and determine unpaid debts of the split part;

b/ Hand over the assets and unpaid debts of the split part, make a written handover record, and make entries in accounting books according to such record;

c/ Hand over accounting documents related to the assets and unpaid debts to the new accounting unit; and archive accounting documents that are not handed over in accordance with Article 41 of this Law.

2. Based on the written handover record, the new accounting unit shall open and make entries in accounting books in accordance with this Law.

Article 45. Accounting work in case of consolidation of accounting units

1. In case several accounting units are consolidated into a new one, each shall:

a/ Close accounting books, inventory assets, determine unpaid debts, and make a financial statement;

b/ Hand over all assets and unpaid debts, make a written handover record and make entries in accounting books according to such record;

c/ Hand over all accounting documents to the new accounting unit.

2. The new accounting unit shall:

a/ Based on the written handover records, open and make entries in its accounting books in accordance with this Law;

b/ Consolidate the financial statements of the consolidated units into a financial statement of the new accounting unit;

c/ Receive and archive accounting documents of the consolidated units.

Article 46. Accounting work in case of merger of an accounting unit

1. An accounting unit that is merged into another accounting unit shall:

a/ Close accounting books, inventory assets and determine unpaid debts and make a financial statement;

b/ Hand over all assets and unpaid debts, make a written handover record and make entries in accounting books according to such record;

c/ Hand over all accounting documents to the merging accounting unit.

2. Based on the written handover record, the merging accounting unit shall make entries in its accounting books in accordance with this Law.

Article 47. Accounting work in case of transformation of type or form of ownership

1. The transformed accounting unit shall:

a/ Close accounting books, inventory assets, determine unpaid debts and make a financial statement;

b/ Hand over all assets and unpaid debts, make a written handover record and make entries in accounting books according to such record;

c/ Hand over all accounting documents to the new accounting unit.

2. Based on the written handover record, the new accounting unit shall open and make entries in accounting books in accordance with this Law.

Article 48. Accounting work in case of dissolution, operation termination or bankruptcy

1. An accounting unit that is dissolved or terminates operation shall:

a/ Close accounting books, inventory assets, determine unpaid debts and make a financial statement;

b/ Open accounting books to keep track of economic and financial operations related to the dissolution or operation termination;

c/ Hand over all accounting documents of the accounting unit that is dissolved or terminates operation to the superior accounting unit or an organization or individual in charge of document archives in accordance with Article 41 of this Law.

2. When declaring an accounting unit bankrupt, the declaring court shall appoint a person to take charge of accounting work prescribed in Clause 1 of this Article.

Chapter III

ORGANIZATION OF ACCOUNTING APPARATUS AND ACCOUNTANTS

Article 49. Organization of accounting apparatus

1. Every accounting unit shall organize an accounting apparatus, appoint accountants or hire accounting services.

2. The organization of an accounting apparatus, arrangement of accountants, the chief accountant and accounting managers, or hiring of accounting services or chief accountants shall comply with regulations of the Government.

Article 50. Responsibilities of an accounting unit’s at-law representative

1. To organize the accounting apparatus, arrangement of accountants, or decide to hire an accounting service enterprise or business household in accordance with this Law.

2. To arrange the chief accountant or decide to hire chief accountant services in accordance with this Law; if it is otherwise prescribed by a specialized law, to comply with such specialized law.

3. To organize and direct accounting work in the accounting unit in accordance with the law on accounting and take personal responsibility for any damage caused by his/her mistakes and violations; to take joint responsibility for mistakes and violations of other people under his/her management.

4. To organize internal accounting inspection and accounting inspection of subordinate units.

Article 51. Standards, rights and responsibilities of accountants

1. An accountant must meet the following standards:

a/ Possessing professional ethical qualities, being truthful and integrated, and having a sense of law observance;

b/ Possessing professional accounting qualifications and skills.

2. Accountants have the right to perform accounting work independently.

3. Accountants shall comply with the law on accounting, perform assigned tasks and take responsibility for their professional performance. When an accountant is replaced, the replaced accountant shall hand over his/her accounting work and documents to the replacing accountant. The replaced accountant shall still bear responsibility for the accounting work done during his/her working period.

Article 52. Persons prohibited from working as accountants

1. Minors; persons who are declared by the court to have restricted or no civil act capacity; persons currently serving the measure of confinement to reformatories or drug detoxification centers.

2. Persons banned from practicing accounting under a legally effective court judgment or ruling; persons being examined for penal liability; persons sentenced to imprisonment or persons who had been convicted of any of crimes of infringing upon economic management order or crimes related to finance or accounting positions and have not had their criminal records written off.

3. Natural parents, adoptive parents, spouses, natural children, adopted children and siblings of the at-law representative, head, director, director general, deputy of the head, deputy director, deputy director general in charge of finance and accounting, and the chief accountant of the same accounting unit, except for private enterprises, single-member limited liability companies owned by individuals and other cases prescribed by the Government.

4. Persons holding the position of manager, executive officer, warehouse keeper, treasurer, buyer or seller of asset in the same accounting unit,  except for private enterprises, single-member limited liability companies owned by individuals and other cases prescribed by the Government.

Article 53. Chief accountants

1. Chief accountant is the head of an accounting unit’s accounting apparatus who is in charge of organizing accounting work in the unit.

2. Chief accountants of state agencies, organizations and non-business units funded by the state budget, and enterprises in which over 50% of charter capital is held by the State shall, in addition to the tasks specified in Clause 1 of this Article, assist the accounting units’ at-law representatives in financial supervision of the accounting units.

3. The chief accountant shall submit to the leadership by the accounting unit’s at-law representative and also to the direction and inspection by the chief accountant of the superior accounting unit, if any, in terms of professional work.

4. In case an accounting unit appoints an accounting manager to replace the chief accountant, such accounting manager must satisfy the standards and conditions prescribed in Clause 1, Article 54 of this Law, and shall perform and exercise the chief accountant’s responsibilities and rights prescribed in Article 55 of this Law.

Article 54. Standards of and conditions on chief accountants

1. A chief accountant must satisfy the following standards and conditions:

a/ The standards prescribed in Clause 1, Article 51 of this Law;

b/ Possessing an intermediate or higher qualification in accounting;

c/ Possessing a certificate of chief accountant training;

d/ Having at least 2 years’ experience in accounting work, if he/she possesses a bachelor or higher degree in accounting; or having at least 3 years’ experience in accounting work, if he/she possesses an intermediate or collegial qualification in accounting.

2. The Government shall specify standards of and conditions on chief accountants that suit each type of accounting unit.

Article 55. Responsibilities and rights of chief accountants

1. A chief accountant has the following responsibilities:

a/ To comply with regulations on accounting and finance applicable to his/her accounting unit;

b/ To organize the operation of the accounting apparatus in accordance with this Law;

c/ To make financial statements in accordance with accounting regimes and standards.

2. A chief accountant has the right to perform accounting work independently.

3. In addition to the rights prescribed in Clause 2 of this Article, chief accountants of state agencies, non-business organizations and units funded by the state budget and enterprises in which over 50% of charter capital is held by the State have the following rights:

a/ To propose opinions in writing about employment, assignment, salary raise, commendation and disciplining of accountants, warehouse keepers and treasurers;

b/ To request relevant sections of the accounting unit to provide adequate documents related to the chief accountant’s accounting work and financial supervision work in a timely manner;

c/ To reserve his/her professional opinions in writing if such opinions are divergent from those of the decision maker;

d/ To send written reports to the at-law representative of the accounting unit on violations of finance and accounting regulations in the unit. If having to comply with a decision, to send a report to the superior person of the decision maker or a competent state agency. In this case, the chief accountant shall not be held responsible for the implementation of such decision.

Article 56. Hiring of accounting services and chief accountant services

1. An accounting unit may sign a contract with an accounting service enterprise or accounting service business household to provide accounting services or chief accountant services in accordance with law.

2. The hiring of accounting services or chief accountant services shall be made in a written contract in accordance with law.

3. An accounting unit that hires accounting services or chief accountant services shall provide in a timely manner adequate and accurate information and documents related to such services and fully pay charges for the services as agreed in the contract.

4. The hired chief accountant must satisfy the standards and conditions prescribed in Article 54 of this Law.

5. Accounting service enterprises and business households and hired accountants and chief accountants shall take responsibility for accounting information and data as agreed in the contracts.

Chapter IV

PROVISION OF ACCOUNTING SERVICES

Article 57. Accountant certificates

1. A person must satisfy the following standards in order to obtain an accountant certificate:

a/ Possessing professional ethical qualities, being truthful and integrated, and having a sense of law observance;

b/ Possessing a bachelor’s degree or higher in finance, accounting, audit or another discipline according to regulations of the Ministry of Finance;

c/ Passing an examination for an accountant certificate.

2. The holder of an accounting expert certificate or accounting certificate granted by a foreign or an international accounting organization that is accredited by the Ministry of Finance of Vietnam shall be granted an accountant certificate if he/she passes an examination in Vietnam’s economics, finance and accounting laws and meet the standards prescribed at Point a, Clause 1 of this Article.

3. The Ministry of Finance shall prescribe conditions for taking examination for obtaining an accountant certificate, and procedures for grant and revocation of accountant certificates.

Article 58. Registration of accounting service practice

1. The holder of an accountant certificate or auditor certificate prescribed in the Law on Independent Audit may register his/her accounting service practice through an accounting service enterprise or accounting service business household if he/she:

a/ Has full civil capacity;

b/ Has at least 36 months’ experience in financial, accounting or audit work since graduation from university; and

c/ Has participated in all refresher training programs as prescribed.

2. The person who satisfies all conditions prescribed in Clause 1 of this Article may register his/her practice and be granted a certificate of accounting service practice registration. The Ministry of Finance shall prescribe procedures for grant and revocation of accounting service practice registration certificates.

3. The accounting practice service registration certificate is only valid when its holder has a full-time contract with an accounting service enterprise or an accounting service business household.

4. The following persons may not register accounting service practice:

a/ Officials, civil servants and public employees; professional army men and officers; national defense workers and public employees, people’s public security force members;

b/ Persons banned from practicing accounting under a legally effective court judgment or ruling; persons currently examined for penal liability; persons convicted of any of crimes of infringing upon economic management order related to finance and accounting and having not had their criminal records written off; persons currently serving the administrative handling measure of education in communes, wards or townships or confinement to reformatories or drug detoxification centers;

c/ Persons who had been convicted of serious crimes of infringing upon economic management order and have not had their criminal records written off;

d/ Persons who were administratively sanctioned for violations of the law on finance, accounting or audit within 6 months counting from the date of completely serving the sanction of caution, or within 1 year from the date of completely serving another administrative sanction;

dd/ Persons whose accounting service practice is terminated.

Article 59. Accounting service enterprises

1. An accounting service enterprise may be established in any of the following forms:

a/ Multiple-member limited liability company;

b/ Partnership;

c/ Private enterprise.

2. An enterprise may only provide accounting services when it satisfies all conditions prescribed in this Law and obtains a certificate of eligibility to provide accounting services.

3. An accounting service enterprise may not contribute capital to establish another accounting service enterprise, except contribution of capital together with a foreign accounting service enterprise to establish an accounting service enterprise in Vietnam.

4. A foreign accounting service enterprise shall provide accounting services in Vietnam in any of the following forms:

a/ Contributing capital together with an operating accounting service enterprise in Vietnam to establish an accounting service enterprise;

b/ Establishing a branch;

c/ Providing cross-border services according to regulations of the Government.

Article 60. Conditions for grant of certificates of eligibility to provide accounting services

1. A multiple-member limited liability company shall be granted a certificate of eligibility to provide accounting services if fully satisfying the following conditions:

a/ The company has an enterprise registration certificate or investment registration certificate or another paper of equivalent validity as prescribed by law;

b/ At least two capital contributors are accounting practitioners;

c/ The at-law representative, director or general director of the company is an accounting practitioner;

d/ The accounting practitioners’ holdings in the enterprise and the holdings of institutional members are conformable with regulations of the Government.

2. A partnership shall be granted a certificate of eligibility to provide accounting services after fully satisfying the following conditions:

a/ It has an enterprise registration certificate, an investment registration certificate or another document of equivalent validity as prescribed by law;

b/ At least two general partners are accounting practitioners;

c/ The at-law representative, director or general director of the partnership is an accounting practitioner.

3. A private enterprise shall be granted a certificate of eligibility to provide accounting services after fully satisfying the following conditions:

a/ It has a certificate of enterprise registration, an investment registration certificate or another paper of equivalent validity as prescribed by law;

b/ It has at least two accounting practitioners;

c/ The owner of the private company who is also its director is an accounting practitioner.

4. A Vietnam-based branch of a foreign accounting service enterprise shall be granted a certificate of eligibility to provide accounting services after fully satisfying the following conditions:

a/ The foreign accounting service enterprise is permitted to provide accounting services according to the laws of its host country;

b/ The branch has at least two accounting practitioners, including the director or general director;

c/ The director or general director of the branch does not concurrently hold the position of manager or executive officer of another enterprise in Vietnam;

d/ The foreign accounting service enterprise has submitted a document to the Ministry of Finance that it is responsible for every obligation and commitment of the branch in Vietnam.

5. Within 6 months from the date of accounting service registration, if the accounting service enterprise or branch of a foreign accounting service enterprise is not granted a certificate of eligibility to provide accounting services, or the certificate of eligibility to provide accounting services has been revoked, the accounting service enterprise or branch of a foreign accounting service enterprise shall promptly request the business registration agency to delete the phrase “dịch vụ kế toán” (accounting service) from its name.

Article 61. Dossier of application for certificate of eligibility to provide accounting services

1. An application for a certificate of eligibility to provide accounting services.

2. A copy of the enterprise registration certificate, investment registration certificate or another paper of equivalent validity.

3. Copies of accounting practice registration certificates of accounting practitioners.

4. Labor contracts between the accounting service enterprise and accounting practitioners.

5. Documents proving capital contribution, for limited liability companies.

6. The company charter, for partnerships and limited liability companies.

7. The foreign enterprise’s written commitment to take responsibility for and documents proving the foreign enterprise is permitted to provide accounting services (for Vietnam-based branches of foreign accounting service enterprises).

Article 62. Time limit for grant of certificates of eligibility to provide accounting services

1. Within 15 days after receiving a complete and valid dossier, the Ministry of Finance shall grant a certificate of eligibility to provide accounting services. If refusing to grant a certificate, a written reply shall be issued clearly stating the reason.

2. If the dossier of application needs clarification, the Ministry of Finance shall request the applicant to provide explanations. The time limit for grant of a certificate of eligibility to provide accounting services shall be counted from the date of receipt of explanatory documents.

Article 63. Re-grant of certificates of eligibility to provide accounting services

1. The certificate of eligibility to provide accounting services shall be re-granted in the following cases:

a/ There is a change in the name, at-law representative, director or general director and address of the head office of the foreign accounting service enterprise or its branch in Vietnam;

b/ The certificate of eligibility to provide accounting services is lost or damaged.

2. A dossier of application for re-grant of a certificate of eligibility to provide accounting services must comprise:

a/ An application for re-grant of the certificate of eligibility to provide accounting services;

b/ The original certificate of eligibility to provide accounting services, except for the case at Point b, Clause 1 of this Article;

c/ Other documents (if any) related to the application for re-grant of the certificate of eligibility to provide accounting services.

3. Within 15 days after receiving a complete and valid dossier, the Ministry of Finance shall re-grant the certificate of eligibility to provide accounting services. If refusing to re-grant the certificate, a written reply shall be issued clearly stating the reason.

Article 64. Fees for grant and re-grant of certificates of eligibility to provide accounting services

An accounting service enterprise that is granted or re-granted a certificate of eligibility to provide accounting services shall pay a fee in accordance with law.

Article 65. Accounting service business households

1. A business household may provide accounting services when fully satisfying the following conditions:

a/ The household has a certificate of business household registration;

b/ The individual or representative of the group of individuals who establish the business household is an accounting practitioner.

2. Accounting service business households are not required to have a certificate of eligibility to provide accounting services.

Article 66. Changes to be notified to the Ministry of Finance

1. Within 10 days after the occurrence of any of the following changes, an accounting service enterprise shall send a written notice to the Ministry of Finance:

a/ Change in the list of accounting practitioners in the enterprise;

b/ One, some, or all of the conditions for provision of accounting services prescribed in Article 60 of this Law is or are not satisfied;

c/ Change in the enterprise’s name or head office address;

d/ Replacement of the director, general director, at-law representative, or holdings of members;

dd/ Suspension of provision of accounting services;

e/ Establishment, operation termination or change in the names and addresses of branches;

g/ Division, splitting, merger, consolidation, transformation or dissolution.

2. Within 10 days after the occurrence of any of the following changes, the accounting business household shall send a written notice to the Ministry of Finance:

a/ Change in the list of accounting practitioners;

b/ Change in the business household’s name and address;

c/ Suspension or termination of accounting service provision.

Article 67. Responsibilities of accounting practitioners, accounting service enterprises and accounting service business households

1. To perform accounting work related to the accounting service agreed in the contract.

2. To comply with the accounting law and code of professional ethics for accountants.

3. To take responsibility to the clients and before law for provided accounting services and pay compensation for any damage caused by their fault.

4. To regularly improve professional knowledge and experience, and participate in annual refresher programs as prescribed by the Ministry of Finance.

5. To submit to professional management and accounting service quality control by the Ministry of Finance or a professional accounting organization authorized by the Ministry of Finance.

6. To buy professional liability insurance according to regulations of the Government.

Article 68. Cases in which provision of accounting services is prohibited

An accounting service enterprise or accounting service business household may not provide accounting services for another accounting unit when the manager or executive officer of the accounting service enterprise or representative of the accounting service business household or the person who directly provides accounting services:

1. Is a natural parent, adoptive parent, spouse, natural child, adopted child, sibling of the manager, executive officer or chief accountant of the accounting unit, unless the accounting unit is a private enterprise or limited liability company owned by an individual and other cases prescribed by the Government;

2. Has an economic or financial relationship with such accounting unit;

3. Does not have adequate professional knowledge or satisfy all conditions for provision of accounting services;

4. Is providing chief accountant services for an institutional client that has an economic or financial relationship with such accounting unit;

5. Is requested by the accounting unit to work against the code of professional ethics or professional requirements in accounting and financial work;

6. Other cases prescribed by law.

Article 69. Suspension of provision of accounting services and revocation of certificates of eligibility to provide accounting services and accounting service registration certificates

1. An accounting service enterprise shall be suspended from providing accounting services in any of the following cases:

a/ One, some, or all of the conditions specified in Article 60 of this Law is or are not satisfied for 3 consecutive months;

b/ It commits professional errors or violations of accounting standards or code of professional ethics for accountants that result in serious consequences or are likely  to result in serious consequences.

2. An accounting service enterprise shall have its certificate of eligibility to provide accounting services revoked in any of the following cases:

a/ It has made untrue declarations or forged documents in order to be eligible for obtaining a certificate of eligibility to provide accounting services;

b/ It fails to provide accounting services for 12 consecutive months;

c/ The errors or violations mentioned in Clause 1 of this Article are not remedied within 60 days from the suspension date;

d/ It is dissolved, goes bankrupt or suspends the accounting service provision on its own;

dd/ It has its enterprise registration certificate, investment registration certificate, or another document of equivalent validity revoked;

e/ It has falsified accounting documents and financial statements and provides untruthful information and data, or colluded with others in doing so;

g/ It has forged, erased or tampered with its certificate of eligibility to provide accounting services.

3. An accounting service enterprise whose certificate of eligibility to provide accounting services is revoked shall immediately stop providing accounting services on the date the decision on revocation takes effect.

4. An accounting business household shall be suspended from providing accounting services when making professional errors or committing violations of accounting standards or code of professional ethics for accountants that result in serious consequences or are likely to result in serious consequences.

5. An accounting service business household shall terminate the provision of accounting services in any of the following cases:

a/ It fails to provide accounting services for 12 consecutive months;

b/ It fails to remedy the errors or violations mentioned in Clause 4 of this Article within 60 days from the suspension date;

c/ It terminates provision of accounting services on its own;

d/ It has falsified accounting documents and financial statements and provided untruthful false information and data, or colluded with others in doing so;

dd/ It has its business household registration certificate revoked;

e/ All accounting practitioners in the business household have their accounting service registration certificates revoked.

6. An accounting practitioner shall be suspended from providing accounting services in any of the following cases:

a/ He/she makes professional errors or commits violations of accounting standards or code of professional ethics for accountants that result in serious consequences or are likely to result in serious consequences.

b/ He/she no longer satisfies all the practice registration conditions;

c/ He/she fails to comply with regulations of competent agencies on accounting practice-related examination and inspection;

d/ He/she fails to perform the responsibilities prescribed in Article 67 of this Law.

7. An accounting practitioner shall have his/her accounting service registration certificate revoked in any of the following cases:

a/ He/she has falsified or forged documents in order to be eligible for obtaining the  accounting service registration certificate;

b/ He/she has his/her accountant certificate revoked;

c/ He/she is convicted under a legally effective court judgment.

Article 70. Professional accounting organizations

1. Professional accounting organizations shall be established and operated in accordance with the law on associations and comply with the accounting law.

2. Professional accounting organizations may provide refresher courses for accountants and accounting practitioners, and perform certain tasks related to accounting work prescribed by the Government.

Chapter V

STATE MANAGEMENT OF ACCOUNTING

Article 71. State management of accounting

1. The Government shall uniformly perform the state management of accounting

2. The Ministry of Finance shall take responsibility to the Government for performing the state management of accounting, having the following tasks and powers:

a/ To formulate strategies and policies on accounting development and submit them to the Government for decision;

b/ To formulate legal documents on accounting and submit them to the Government for promulgation, or promulgate them according to its competence;

c/ To grant, re-grant and revoke accounting service practice registration certificates and certificates of eligibility to provide accounting services; terminate accounting service practice and provision of accounting services;

d/ To prescribe the examination, grant, revocation and management of accountant certificates;

dd/ To conduct accounting inspection; to inspect accounting services; supervise the observance of accounting standards and accounting regimes;

e/ To prescribe the update of accounting practitioners’ knowledge;

g/ To organize and manage scientific research into accounting and application of information technology to accounting activities;

h/ To conduct inspection and examination, settle complaints and denunciations, and handle violations of the law on accounting;

i/ To implement international cooperation on accounting.

3. Ministries and ministerial-level agencies shall, within the ambit of their tasks and powers, coordinate with the Ministry of Finance in performing the state management of accounting in the sectors or fields under their charge.

4. Provincial-level People’s Committees shall, within the ambit of their tasks and powers, shall perform the state management of accounting in their localities.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 72. Effect

1. This Law takes effect on January 1, 2017.

2. June 17, 2003 Law No. 03/2003/QH11 on Accounting ceases to be effective on the effective date of this Law.

Article 73. Transitional provision

1. The Government shall prepare necessary conditions for making financial statements of the State in accordance with Article 30 of this Law within 24 months from the effective date of this Law.

2. Within 24 months from the effective date of this Law, accounting enterprises established before such date must satisfy all conditions specified therein to be granted the certificate of eligibility to provide accounting services. Otherwise, the provision of accounting services shall be terminated.

3. Accounting practitioner certificates granted to Vietnamese citizens and foreigners under June 17, 2003 Law No. 03/2003/QH11 on Accounting are as valid as accountant certificates prescribed in this Law.

Article 74. Detailing provision

1. The Government and the Ministry of Finance shall detail the articles and clauses of this Law as assigned.

2. Pursuant to the basic principles of this Law, the Government shall specify accounting work of representative offices of foreign enterprises operating Vietnam, business households, and cooperation teams.

This Law was adopted on November 20, 2015, by the XIII^th National Assembly of the Socialist Republic of Vietnam at its 10^thsession.-

Chairman of the National Assembly 
NGUYEN SINH HUNG