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THE MINISTRY OF
FINANCE OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIET NAM
Independence-Freedom-Happiness
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No. 24/2024/TT-BTC
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Hanoi, April 17,
2024
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CIRCULAR
PROVIDING GUIDELINES
FOR PUBLIC SECTOR ACCOUNTING
Pursuant to the Law on Accounting dated November
20, 2015;
Pursuant to the Government’s Decree No.
174/2016/ND-CP dated December 30, 2016 on elaboration of some articles of the
Law on accounting;
Pursuant to the Government’s Decree No.
14/2023/ND-CP dated April 20, 2023 defining functions, tasks, powers and
organizational structure of the Ministry of Finance of Vietnam;
At the request of the Director of the Department
of Accounting and Auditing Regulations;
The Minister of Finance of Vietnam promulgates a
Circular providing guidelines for public sector accounting.
Chapter I
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Article 1. Scope
This Circular provides guidelines for public sector
accounting, including: accounting records, chart of accounts, accounting books,
final statements of operating funding, and financial statements; procedures for
printing, sorting and binding of accounting records for retention purpose of
the entities mentioned in Article 2 of this Circular.
Article 2. Regulated entities
1. This Circular provides guidelines for accounting
for the following accounting units:
a) Regulatory authorities (except People's
Committees of communes, wards, and commune-level towns that are funded by
commune-level budget);
b) Public administrative units (except public
administrative units that self-cover both recurrent and investment expenses and
are allowed by competent authorities to apply corporate accounting regimes;
however, if these units are allocated state budget estimates with domestic
funding sources, receive ODA grants from foreign donors which are recorded as
state budget revenues, receive foreign loans for implementing projects, or incur
expenses which are covered with deducted or retained amount of collected fees
as prescribed by the law on fees and charges, they shall be required to prepare
final statements of operating funding according to provisions of Appendix III
enclosed herewith);
c) Political organizations; socio-political
organizations; Vietnamese Fatherland Front and other authorities, organizations
and units that are funded by state budget;
d) Organizations, authorities and units that apply
financial autonomy of public administrative units.
2. Organizations, authorities and units are
assigned to manage and do bookkeeping of infrastructure assets in accordance
with regulations of law on management and use of public property. Enterprises
assigned to manage infrastructure assets without calculation of state capital
portion of such enterprises shall apply off-balance-sheet (OBS) accounts
prescribed in this Circular to recording of entries in their accounting books;
enterprises assigned to manage infrastructure assets with calculation of state
capital portion of such enterprises shall do bookkeeping in accordance with
regulations on corporate accounting.
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Article 3. Accounting units, financially
dependent units and spending units
1. Accounting units are the regulated entities of
this Circular as defined in Article 2 of this Circular that conduct economic/financial
transactions, open accounting books, do bookkeeping and make financial
statements in accordance with provisions of this Circular.
2. Depending on its apparatus and operations, each
accounting unit may establish its financially dependent units and/or spending
units in a simplified and efficient manner.
a) Financially dependent units are inferior units
of an accounting unit that perform certain accounting works as assigned by the
accounting unit, and provide information and data to the accounting unit for
making financial statements at the end of each accounting period in accordance
with provisions of this Circular.
b) Spending units are inferior units of an
accounting unit that do not perform any accounting works. Any
economic/financial transactions that occur at spending units must be recorded
in the accounting book of the accounting unit. Preparation and transfer of
accounting records by spending units shall comply with guidelines given by the
accounting unit.
Chapter II
SPECIFIC PROVISIONS
Article 4. Accounting records
1. Accounting units may design their own accounting
records to reflect economic/financial transactions in a manner that meets
management requirements and ensures adequate information for doing bookkeeping
tasks, unless forms of accounting records are prescribed in relevant
legislative documents. Accounting records self-designed by an accounting unit
must correctly reflect the nature of its economic/financial transactions,
contain adequate information as required in the Law on accounting, be suitable
for the types of information to be recorded in the accounting book, and meets
its management requirements.
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Article 5. Chart of accounts
1. Accounts regularly, continuously and
systematically reflect assets; receipt and use of funding derived from state
budget and other funding sources according to financial mechanisms; revenues,
expenses, profit distribution and other economic/financial transactions that
occurs at a unit.
2. Classification and rules for using chart of
accounts
a) Accounts on the balance sheet include accounts
of type 1 to 9, and are recorded applying double-entry bookkeeping (i.e. every
entry shall be recorded in both sides of an account). These accounts are used
for reflecting assets, funding sources, revenues, and expenses and determining
business performance of a unit during the accounting period, which are used as
the basis for making financial statements.
b) OBS accounts are accounts of type 0, and are
recorded applying single-entry bookkeeping (i.e. every entry shall only be
recorded in one side of an account). OBS accounts 005, 006, 007, 008,
009, 010, 011, 012, 013 are used for reflecting the receipt and use of funding
of which the amounts used must be recorded in detail at the end of year
according to list of state budget entries as the basis for making final statements.
To be specific:
- OBS accounts used for statement of state
budget-derived funding (accounts 005, 006, 007, 008, 009, 010, 011) shall be
recorded in detail according to the list of state budget entries and budget
year, and in a manner meeting other management requirements for statement of
state budget-derived funding set out in regulations of law on state budget.
- OBS accounts used for statement of funding
derived from deducted/retained amounts of collected fees, and revenues earned
during operation of which the amounts used must be recorded and reported
according to the list of state budget entries (accounts 012, 013) shall be
recorded in detail according to the list of state budget entries and in a
manner meeting other management requirements for statement of these funding
sources.
c) If an economic/financial transaction involves
the receipt and use of domestic funding derived from state budget, or funding
derived from deducted/retained amounts of collected fees, and revenues earned
during operation of which the amounts used must be recorded and reported
according to the list of state budget entries, it shall be recorded on both
on-balance and OBS accounts and in detail according to the list of state budget
entries and appropriate budget year.
d) If an economic/financial transaction involves
the receipt and use of foreign aid amounts or foreign loans for implementing
projects, it shall be recorded as state budget revenue or expense in accordance
with regulations of law in force. After it is recorded as state budget revenue
or expense, it must be also recorded on OBS accounts for making final
statements as prescribed in this Circular.
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a) Based on the chart of accounts enclosed
herewith, units shall select accounts suitable for their operations and
financial mechanisms within the ambit of their assigned functions and tasks.
b) Subaccounts of the accounts on the chart of
accounts (in Appendix I enclosed herewith) may be created to meet management
requirements of the unit.
c) The addition of any account of the same level
with that of an account on the chart of accounts (provided in Appendix I)
enclosed herewith must comply with provisions of the Law on accounting to
ensure the consistency in use of accounts and presentation of information on
financial statements which should not be omitted or duplicated.
4. The chart of accounts, contents, structure and
methods for recording such accounts are provided in Appendix I “Chart of
accounts and guidelines for recording” enclosed herewith.
Article 6. Accounting books
1. Accounting books shall be intended for
recording, systematizing and retaining all economic/financial transactions
already arising of units. Opening, recording of entries, closures, management
and retention of accounting books shall comply with regulations of the Law on
accounting, relevant legislative documents and the provisions of this Circular.
2. All existing assets of a unit must be reflected
and monitored on its accounting book. If the official value of an asset is not
available, it shall be recorded according to its temporarily calculated value.
If its temporarily calculated value is not available, it shall be recorded
according to conventional value. When the asset's official value is available,
entries of relevant accounts on the unit’s accounting book must be modified in
accordance with provisions of this Circular.
3. If a unit receives and uses domestic funding
derived from state budget; foreign aid amounts or foreign loans for
implementing projects; funding derived from deducted/retained amounts of
collected fees, and revenues earned during operation of which the amounts used
must be recorded and reported according to the list of state budget entries, it
shall be required to open accounting book to monitor the receipt and use of
these funding sources in detail according to the state budget year and list of
state budget entries, and in manner meeting other management requirements for
preparing final statements of operating funding which are submitted to competent
authorities as prescribed.
4. Types of accounting books
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Each unit shall create both general accounting book
and subsidiary accounting books, and ensure adequate and correct contents,
order and method for recording accounting books as prescribed in this Circular.
b) The general accounting book is used for generally
recording economic/financial transactions in chronological order or according
to economic contents. A unit may, where necessary, record economic transactions
in chronological order and classify or systematize them according to economic
contents.
c) Subsidiary accounting books and sheets:
- Subsidiary accounting books/sheets are intended
for recording in detail economic/financial transactions involving accounting
subjects which are not yet reflected in detail in the general accounting book
to meet management requirements. Data on subsidiary accounting books/sheets is
the specific information serving the performance of internal management tasks
of a unit as well as the computation and creation of items of its financial
statements and final statements of operating funding.
- Based on management and bookkeeping requirements
for each accounting subject, units are allowed to add information to their
subsidiary accounting books/sheets to serve their preparation of financial
statements, final statements of operating funding, and meet
their management requirements.
- Information and data on subsidiary accounting
books/sheets must match those on the general accounting book.
5. Responsibility of bookkeepers
a) Accounting books must be strictly managed. The
persons responsible for managing and recording accounting books must be
identified. The bookkeeper is responsible for the contents and data on the
accounting book while he/she is assigned to keep and record such accounting
book. If more than an employee is assigned to make entries in the same
accounting book electronically, each employee shall be responsible for their
entries made in such accounting book.
b) When a new bookkeeper is assigned, the unit
shall arrange handover of responsibility to keep and record the accounting book
and all relevant accounting records/documents between the former bookkeeper and
this new one. The former bookkeeper shall take responsibility for the period
over which he/she managed and recorded the accounting book, and the new
bookkeeper shall take responsibility from the date of responsibility handover.
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d) The bookkeeper shall record economic/financial
transactions in the accounting book in chronological order. Information and
data recorded in an accounting book of the following year must continue those
on the accounting book of the preceding year, and have their continuity from
the opening to closing of the book ensured.
6. Opening accounting books
a) An accounting book must be opened at the opening
of the annual accounting period or as soon as practicable after receiving the
establishment decision of the unit. The accounting book shall be opened at the
beginning of the annual accounting period to transfer information and data from
the accounting book of the preceding year, and record all economic/financial
transactions arising in the new fiscal or budget year from January 01.
The accounting book of an accounting unit must
specify the name of the accounting unit, name and symbol of the accounting
book; opening date of the book; signature of the person opening the book, chief
accountant or acting chief accountant of the accounting unit.
The accounting book of a financially dependent unit
must specify the name of the financially dependent unit, name and symbol of the
accounting book; opening date of the book; signature of the person assigned to
perform accounting works.
b) Regarding OBS account books used for monitoring
the receipt and use of domestic funding derived from state budget; foreign aid
amounts or foreign loans for implementing projects; funding derived from
deducted/retained amounts of collected fees, and revenues earned during
operation of which the amounts used must be recorded and reported according to
the list of state budget entries, after December 31, data of the previous year
must be kept for further data monitoring and adjustment during preparation of
final statements of such funding as prescribed. Accounting book shall be opened
for recording transactions that occur in the following year according to the
statement year as prescribed.
c) Accounting books on accounting software program
must have adequate contents of an accounting book as prescribed by the Law on
accounting and provisions of this Circular.
d) If an accounting book is opened manually, each
unit is required to complete legal procedures for that accounting book as
follows:
- The accounting book must be bound in a book form;
its cover’s left corner must specify the name of the unit opening the book
while the book’s name, dates of opening and closing the book, full names and
signatures of relevant persons as defined in the Law on accounting, seal, date
of closing or transferring the book to another person are shown in its cover’s
middle.
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7. Recording accounting books
a) Accounting books must be recorded according to
accounting records or supporting information and data of economic/financial
transactions; entries made in the accounting book must be accurate and
truthful; any accounts used must be consistent with contents of
economic/financial transactions; all figures must be clearly and continuously
presented in the accounting book in chronological order; information must be
adequately and systematically presented; no abbreviations or skipped lines
shall be accepted.
b) Each unit shall be required to adequately open
accounting books. Recording order and minimum information requirements for each
type of accounting books in Appendix II “System of accounting books” enclosed
herewith must be followed.
c) In case an accounting book is recorded manually,
indelible ink must be used; the use of red ink or pencil shall not be allowed.
When a page is fully written up, the sum of figures on such page shall be found
and recorded at the beginning of the following page; no interlineations on the
top or bottom of a page shall be permitted. Blank space of each page shall be
crossed out. No erasures will be accepted.
8. Closing accounting books
Closing accounting book means the calculation of
total number of debits and total number of credits, and ending balance of each
account or total revenues, expenses, unused funds, received, dispatched and
stocked goods during the period. Information and data on an accounting book
must not be changed after the accounting book is closed and financial
statements/final statements of funding are submitted to competent authorities.
Correction of accounting data shall comply with provisions of Article 7 of this
Circular.
a) Closing period
- Accounting books must be closed at the end of the
annual accounting period before financial statements are prepared.
- Monitoring book of deposits at banks/state
treasuries must be closed at the end of each month for the purpose of verifying
deposit balances with the bank/treasury.
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- Accounting books shall be also closed in case of
unscheduled stocktaking or in other cases as prescribed by law.
b) Procedures for closing accounting books
b1) Step 1: Check and compare information and data
before closing the accounting book
- At the end of each accounting period and upon
completion of recording of all accounting records that arise during the period
in the accounting book, and carryforward of ending balances, data recorded in
the accounting book, including data on cashes, inventories, fixed assets,
balances on receivables, payables, and other accounting data, must be compared
and verified with relevant parties and documents to ensure their accuracy and
matching.
- After closing the cash book, verification
procedures are required to ensure the accuracy and matching between the cash
book, the cash fund book and actual cash amount in the unit’s vault. If cash is
not used up at the end of a month, a cash count sheet must be prepared and kept
together with the cash book prepared at the ending day of the month.
- When closing monitoring book of deposits at
banks/state treasuries, verification with banks/state treasuries must be
carried out to ensure the accuracy of each deposit account of the unit. Deposit
verification forms (which bear signature and seal of the bank/state treasury)
shall be monthly kept together with the monitoring book of deposits at
banks/state treasuries.
- Calculate the sums on both debit and credit sides
of all accounts on the general accounting book and subsidiary accounting
books/sheets. If multiple subsidiary accounting books are opened, a statement
of such subsidiary accounting books shall be made. Then, verification
procedures shall be followed to ensure the accuracy and matching of data
between the general accounting book and subsidiary accounting books/sheets or
the statement of subsidiary accounting books.
- After data is found to be matched, the accounting
book shall be closed. If there is any difference, the cause thereof must be
determined and the difference shall be reconciled until all figures are
matched.
b2) Step 2: Close accounting books
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- An accounting book must indicate the following
information when it is closed:
+ Opening balances: Balances carried forward from
the previous period must be specified. Regarding opening balances of a year,
balances carried forward from the previous year, sums for which retroactive
adjustment or retroactive application is made and opening balances after
retroactive adjustment or retroactive application (if any) must be specified;
+ Sums that arise during the period;
+ Closing balances (which are calculated on the
basis of opening balances after retroactive adjustment or retroactive
application);
+ Sums accumulated from the beginning of year to
the closing date;
Closing balance is calculated adopting the
following formula:
Closing debit
balance
=
Opening debit
balance
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Total number of
debits in the period
-
Total number of
credits in the period
Closing credit
balance
=
Opening credit
balance
+
Total number of
credits in the period
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When closing an accounting book, the chief
accountant or acting chief accountant of the accounting unit must check to
ensure the accuracy and balancing of information and data recorded by the
accounting unit as the basis for preparation of financial statements and final
statements of operating funding as prescribed in this Circular. Person in
charge of accounting works of a financially dependent unit must check closing
figures to ensure provision of accurate information and data to the accounting
unit.
- When closing an accounting book which is recorded
manually, in addition to the abovementioned steps, a horizontal line must be
drawn below the line recording the final transaction in the accounting period.
After calculation, the balance of each account shall be written within the
appropriate column, whether it is debit or credit. Finally, two straight lines
will be drawn to end the closing of the accounting book.
9. Units shall design their own accounting books
according to the list of accounting books and guidelines for recording
accounting books in Appendix II "System of accounting books" enclosed
herewith. In addition, units may open subsidiary accounting books to meet their
management requirements provided that they must comply with regulations of the
Law on accounting regarding accounting books and relevant laws.
Article 7. Correction of information and data on
accounting books
1. Correction of accounting books shall comply with
provisions of the Law on accounting and this Circular.
2. Correction of information/data in the year (from
January 01 to December 31)
If any entries made in an accounting book in the
year are found erroneous, correction of information/data will be made on the
accounting book of the current year. If an error involves both on-balance
account and OBS account, correction will be made on both accounts to ensure the
accuracy and matching of information/data.
3. Correction of information/data concerning the
final statement of operating funding after the closing date of an accounting
book (i.e. after December 31)
a) Correction of information/data on an OBS account
book which is used as the basis for preparation of the final statement of
operating funding shall comply with provisions of the Law on state budget and
relevant laws.
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c) No corrections made after the final statement
has been submitted to a competent authority will be permitted, unless there are
changes in information/data according to the written approval of the final
statement given by the competent authority. In this case, a new final statement
will be prepared and submitted to the competent authority after completing
correction of information/data as requested.
d) If any information/data on the OBS account book
which is in connection with those used for the preparation of the financial
statements, corrections will also be made on relevant on-balance accounts as
prescribed in Clause 4 of this Article.
4. Correction of information/data concerning the
financial statements after the closing date of an accounting book (i.e. after
December 31)
Correction of information/data on an accounting
book concerning accounts used as the basis for preparation of financial
statements shall be subject to the following provisions:
a) In cases where an error is found after the closing
date of an accounting book (after December 31) but before the financial
statements are signed for issue and submission to competent authorities or
publicly disclosed as prescribed:
There will be some events that occur after the
closing date of the accounting book (after December 31) but before the date on
which the financial statements are signed for issue. These events are defined
as events after the end of the reporting period, and are relevant to the
preparation of the financial statements, including adjusting events and
non-adjusting events. Adjusting events are those that provide evidence of
conditions that existed in the reporting year and before the end of the annual
reporting period. Adjusting events include:
- the determination after the closing date of the
accounting book (after December 31) of the cost of assets purchased, or the
proceeds from assets sold, on December 31 or earlier;
- the determination after the closing date of the
accounting book (after December 31) of the sharing of the revenue earned from a
joint venture or association in the reporting period but must be shared with
another unit under a signed agreement (the sharing unit shall carry forward
from the received payment pending sharing into its revenue; the receiving unit
shall record the received amount as revenue in the reporting period
corresponding to the previously recorded receivable);
- the carrying forward of the differences between
revenues and expenses in the reporting year of the activities of which the cost
is self-covered by the unit or with a pre-determined funding or other
activities of similar nature into the funds of the unit, funds or amounts
payable;
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- the change of the advance payment received from
state budget for the work quantities finished before December 31 into the allocated
amount during the period for making adjustments to the final statement of the
reporting year;
- the receipt after the closing date of the
accounting book (after December 31) of a competent authority’s decision on a
case that confirms that the unit has a liability which must be recognized or
has to adjust any previously recognized provision of the reporting year;
- the receipt of information after the closing date
of the accounting book (after December 31) indicating that an asset was
impaired on December 31 or earlier and that the unit’s provision needs to be
recognized or adjusted (e.g. the bankruptcy of a customer confirms that a loss
existed at the end of the annual accounting period on a trade receivable and
that the unit needs to adjust the provision for bad receivable debts);
- other events that occur after the closing date of
the accounting book (after December 31) and provide clear evidence of
conditions that existed on December 31 or earlier and require the entity to
adjust information/data on the closed book for preparing the financial
statements of the year for which the accounting book is closed in an
appropriate and objective manner; the unit shall assume responsibility for its
decision to make these adjustments.
b) In cases where an error is found after the
annual financial statements are submitted to competent authorities or publicly
disclosed as prescribed:
b1) No corrections on the financial statements
submitted to competent authorities or publicly disclosed are permitted. If an
error is found, correction shall be made on the accounting book of the year in
which the error is found in accordance with provisions of this Circular.
b2) Information/data may be corrected in the
following cases:
- Discovery of material errors: omission or improper
handling of information existed at the closing date of the accounting book for
preparation of financial statements of the previous years that results in
falsified information occurring on the unit’s financial statements of the
previous years and could influence the decisions of users of such financial
statements. These errors result from mathematical mistakes, mistakes in
applying accounting regulations, oversights or misinterpretations of facts, or
fraud. Depending on the scope, nature and scale of each error, the materiality
of the error will be determined and a decision to adjust or correct
information/data will be issued.
- Implementation of documents issued by competent
authorities (the State audit offices, inspection agencies or other regulatory
authorities) that request the unit to correct information/data presented on its
financial statements submitted to competent authorities or publicly
announced.
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- Changes in accounting estimates: cases where the
value of items which must be recorded in the period cannot be accurately
determined but must be estimated. The estimation will be based on
information/data existing at the date on which the estimation is made; the
outputs of this estimation will be recorded and presented on the financial
statements of the period in which the estimation is made. In the following
periods, if there are any changes in accounting estimates that result from new
information/data, correction of previously estimated information/data may be
made in accordance with provisions of this Circular. E.g.: accounting
estimates for setting aside provisions, recording revenues paid by the health
insurance fund to health facilities before the official final statements are
made or costs of in-progress works.
b3) Correction or adjustment methods:
(1) Retroactive adjustment
- Retroactive adjustment means the restatement of
values of items of assets, liabilities and net assets presented on prior years’
financial statements by adjusting the opening balances on the current year’s
financial statements, including adjustment of figures in the opening balance
column of the current year’s financial status report, and in the opening
balance lines on the current year’s report on changes in net assets and notes
to the current year’s financial statements.
- The retroactive adjustment will apply:
+ when discovering any material errors; or
+ for implementing a competent authority’s
request/recommendation.
(2) Retrospective application
Retrospective application means the application of
a new accounting policy to transactions or events previously conducted or
occurred.
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- Adjust the values of items of assets, liabilities
and net assets presented on prior years’ financial statements which are
affected by changes in accounting policies by adjusting the opening balances on
the current year’s financial statements (i.e. figures in the opening balance
column of the current year’s financial status report, and in the opening
balance lines on the current year’s report on changes in net assets and notes
to the current year’s financial statements).
- Adjust figures presented on the previous year’s
income statement which are affected by changes in accounting policies by making
corresponding adjustment to figures in the “previous year” column of the
current year’s income statement. In addition, changes in income statements of
one or more previous years must be determined, and the opening balance of net
assets on the current year’s financial status report and on the current year’s
report on changes in net assets.
(3) Prospective application
Prospective application means the recognition of
the effect of a change in an accounting estimate in figures on the current
year’s accounting book. In this case, the accounting estimate is changed if
there are changes occurring in the circumstances on which the previous periods’
accounting estimate was based or as a result of new information.
(4) The abovementioned retroactive adjustment
and/or retroactive application must be fully explained in the notes to the current
year’s financial statements. Before closing accounting books for preparing the
financial statements, the opening balances (or previous year’ balances if such
retroactive adjustment and/or retroactive application involves the income
statement) shall be re-calculated on the basis of figures for which retroactive
adjustment and/or retroactive application are made in the year for being
presented on the current year’s financial statements.
c) Adjustment of accounting data as prescribed in
Points a and b of this Clause shall not cause any changes in values of accounts
of cash, deposits at banks/state treasuries which have been verified and
certified accurate by the end of December 31 in accordance with provisions of
this Circular.
Article 8. Final statement of operating funding
1. The following entities shall be required to
prepare final statements of operating funding:
a) State budget-funded units shall make final
statements of operating funding in respect of the funding derived from state
budget (including domestic funding derived from state budget's funding for
recurrent expenditures, foreign aid amounts, foreign loans granted by foreign
sponsors for implementing projects) in accordance with provisions of the Law on
state budget and the form provided in this Circular.
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2. Purposes of final statements of operating
funding
a) Final statements of operating funding are
intended for providing information on the management and use of state
budget-derived funding; deducted/retained amounts of collected fees; revenues
earned during operation of which the amounts used must be recorded and reported
according to the list of state budget entries.
b) Final statements of operating funding shall be
presented in detail according to corresponding items and the used funding which
must be recorded and reported according to the list of state budget entries in
order to provide information on the management and use of operating funding to
superior authorities, finance authorities and other competent authorities.
c) Information on the final statement of operating
funding is used for assessment of the compliance with regulations of law on
state budget and other financial mechanisms applied by the unit, as an
important basis for competent authorities, the unit's superior authority and
the unit's leadership to carry out the inspection, assessment, supervision and
management of financial activities and budget of the unit, and assessment of
efficiency of mechanisms and policies applied by the unit.
3. Principles and requirements for preparing final
statements of operating funding
a) A unit’s final statement of operating funding
must be based on the accounting data obtained after closing its accounting
book.
b) Regarding statement of domestic state
budget-derived funding:
- Data on statement of state budget-derived funding
includes funding actually received and used in the budget year, including such
amounts arising during the final statement adjustment period as prescribed by
the Law on state budget.
- Data on statement of state budget-derived funding
must be compared, verified and certified to be matched with those of state
treasuries where transactions are made as prescribed.
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- If a unit that is funded by a superior state
budget receives funding provided by the inferior state budget as prescribed, a
final statement of funding amounts received from the inferior state budget must
be made using the form provided in this Circular to facilitate the statement of
funding with the finance authority providing such funding amount and
preparation of consolidated report to the superior accounting unit.
- If a unit that is funded by an inferior state
budget receives state budget-funding under authorization of a superior state
budget, a final statement of authorized funding amounts must be made using the
form provided in this Circular to facilitate the statement of funding with the
authorizing authority and competent authorities as prescribed.
c) Regarding statement of foreign aid amounts and
foreign loans for implementing projects:
Data on statement of state budget-derived funding
includes the amount actually received from foreign donors and the amount used
and recorded as state budget revenues/expenses in the budget year, including
such amounts arising during the final statement adjustment period as prescribed
by the Law on state budget.
d) Regarding statement of deducted/retained amounts
of collected fees as prescribed by the Law on fees and charges, and revenues
earned during operation of which the amounts used must be recorded and reported
according to the list of state budget entries:
Data on the statement includes the amount received
and the amount actually used in the fiscal year which must be supported by
adequate documents and records, including information/data from the beginning
of the year to the end of December 31 (unless otherwise prescribed by law).
dd) Final statements of operating funding must be
prepared in a truthful, objective, adequate and timely manner, and must
correctly reflect the funding amounts actually received, used and allocated
under estimates in the year. These amounts should be sorted by their sources.
e) Final statements of operating funding must have
adequate contents, be made adopting the prescribed methods, and consistently
presented between reporting periods using the form provided in this Circular.
In addition, in certain cases, other forms of final statements must be
prepared and submitted in accordance with regulations of competent authorities.
4. Reporting period
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5. Time limits and places for submission of annual
final statements of operating funding
a) Time limits for submission of annual final
statements of operating funding shall comply with provisions of the Law on state
budget and relevant guidelines.
b) Annual final statements of operating funding
shall be submitted to:
- Superior estimation units;
- Same-level finance authority, if an accounting
unit is a level-I estimation unit and is funded by state budget;
- Finance authority providing funding, if a unit
that is funded by a superior state budget receives funding provided by the
inferior state budget (statement of funding amount provided by the inferior
state budget as prescribed).
- Authority allocating authorized funding estimate,
if a unit uses funding under authorization of a superior state budget.
6. Methods for submission of annual final
statements of operating funding
Annual final statements of operating funding shall
be submitted in either physical or electronic form, depending on actual
conditions and requirements of the receiving authority.
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Article 9. Financial statements
1. Financial statements of an accounting unit mean
a system of economic/financial information of that unit demonstrated according
to the principles and form provided in this Circular, and are used for reflecting
all information/data on economic/financial transactions conducted in the year
of that unit.
2. Entities required to prepare financial
statements
Accounting units shall prepare financial statements
on the basis of information/data on their closed accounting books at the end of
the annual accounting period (December 31). Financially dependent units shall
provide information/data to serve the preparation of financial statements by
their superior accounting units as prescribed in this Circular.
3. Purposes of financial statements
a) Financial statements are intended for providing
information on financial status, business performance and cash flows of an
accounting unit, for that unit’s leadership, competent authorities and relevant
entities to serve their consideration and issuance of decisions appropriate to
that unit’s financial status.
b) Information provided in the financial statements
is helpful to increase the accounting unit’s accountability and transparency of
information on its receipt and use of all resources under its management in
accordance with regulations of law.
c) Financial statements of an accounting unit are
used as the basis for its superior accounting unit’s preparation of
consolidated financial statements, and provide information/data for preparation
of financial statements of the State as prescribed.
d) In addition to the abovementioned purposes, if
the information/data on an accounting unit’s financial statements prepared
according to provisions of this Circular needs to be used for another specific
purpose (such as tax calculation), the user of financial statements should take
into account the suitability of the information/data on the financial
statements for such purpose.
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a) An accounting unit’s financial statements must
be prepared based on the accounting information/data obtained after its
accounting book is properly closed.
b) Financial statements must be prepared based on
correction information and according to the correct method and principles, and
must be presented in a consistent manner between accounting periods. If
there is any discrepancy between financial statements of accounting periods,
reasons for such discrepancy must be clearly stated.
c) Financial statements must honestly and
objectively reflect contents and values of reported items; present information
on financial status, business performance and cash flows of the accounting unit
in a coherent and systematical manner. The accounting unit must provide
adequate explanatory notes to the information/data presented in the financial
status report, income statement, and cash flow statement as prescribed in this
Circular.
d) Information/data presented in the financial
statements as prescribed in this Circular must include all economic/financial
transactions that arise at the accounting unit. Data on items of the financial
statements must match and be consistent with the data on corresponding accounts
recorded in the accounting book. Failure to present adequate information/data
on economic/financial transactions that occurred in the year on an accounting
unit's financial statements shall be considered as omission of data or facts
from accounting book.
An accounting unit’s financial statements shall
contain financial information of that accounting unit and of its financially
dependent units. All internal transactions that are conducted in the year of an
accounting unit must be excluded from its financial statements in accordance
with provisions of this Circular.
dd) Financial statements must be prepared in a
timely manner and within the prescribed time limit, and contain the
information/data which is presented in a clear, understandable, and reliable
manner, and continuously reflect transactions or events; data of a period must
continue that of the previous one.
e) Any acts which are deliberately performed to
alter or correct the information/data on the financial statements submitted to
competent authorities or publicly disclosed shall be prohibited. All corrections
to the financial statements which have been submitted to competent authorities
or publicly disclosed must be made in accordance with the principles for
correction of information/data set out in this Circular and relevant
guidelines.
5. Reporting period
a) Annual financial statements shall be prepared
for the accounting period ended December 31 as prescribed in the Law on
accounting.
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6. Time limits and places for submission of annual
financial statements
a) Annual financial statements of accounting units
must be submitted to competent authorities within 90 days from the end of the
annual accounting period as prescribed by law.
b) Annual financial statements shall be submitted
to:
- Superior accounting unit.
- Finance authority and state treasury, if an
accounting unit is not affiliated to any superior accounting unit, including:
+ An accounting unit falling under the management
of local government submits financial statements to the same-level finance
authority and the state treasury where transactions are made;
+ An accounting unit falling under the management
of central government submits financial statements to the same-level finance authority
and the state treasury (the State Accounting Department).
- Tax authority, if an accounting unit's business
activities or services are taxable as prescribed by tax laws.
7. Methods for submission of annual financial
statements
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8. Disclosure of annual financial statements
Annual financial statements of accounting units
shall be disclosed in accordance with regulations of law on accounting and
relevant laws.
9. List of reports, forms and guidelines for
preparation of financial statements are provided in Appendix IV “Financial
statements” enclosed herewith. Financial statements of units that perform
specific activities may be prepared and presented according to specific
guidelines or with approval of the Ministry of Finance of Vietnam.
Article 10. Printing, sorting and binding for
retention of accounting documents and handover of accounting works
1. All accounting documents must be preserved in an
adequate and safe manner during use and mandatory retention period as
prescribed in the law on accounting. Accounting documents shall be retained in
accordance with provisions of the Law on accounting, the Government’s Decree
No. 174/2016/ND-CP dated December 30, 2016 elaborating the Law on accounting,
and specific guidance on techniques for retention of accounting documents in
Appendix V “Procedures for printing, sorting and binding for retention of accounting
documents” enclosed herewith.
2. When an accountant is replaced, the handover of
all accounting works and accounting documents (including retained accounting
documents) between this replaced accountant and the new one must be carried
out. The handover record must bear the signature of the chief accountant or
acting chief accountant. If the handover is carried out by the chief accountant
or acting chief accountant, the handover record must bear signature of the
accounting unit’s head.
Chapter III
IMPLEMENTATION
Article 11. Use of accounting software
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2. The use of an accounting software program must
ensure full compliance with accounting processes and operations prescribed in
this Circular, be conformable with the structure and operation of units, and
meet the following requirements:
a) Processes established in the software program
must comply with regulations of the Law on accounting, and not cause any
changes in the nature, principles and methods of accounting, as well as
information/data on the reports/statements prescribed in this Circular and
relevant laws.
b) Accounting processes, information and data which
are related to each other must be handled in an accurate and rational manner to
avoid overlapping.
c) Accounting information/data must meet safety and
security requirements; comply with provisions of law on confidentiality and
safety of information. Authority to perform operational steps must be assigned
in an appropriate manner that enables the control of access rights of users; is
capable of logging entries made in accounting books in chronological order, and
preventing or warning of errors that may occur when inputting data and during
the processing of accounting information/data. The established information
system must be capable of warning and preventing any deliberate intervention
acts to alter the information/data recorded in accounting books.
d) The interface must be user-friendly and
convenient, and have distinguished information fields; be capable of quickly
performing accounting processes, and providing various utilities to users to
meet management requirements of units; providing output data as required by the
recipients of information/data (superior accounting units, state treasuries and
other recipients) for making consolidated reports as prescribed.
dd) Appropriate upgrades and modifications may be
made to be conformable with certain changes in accounting and financial policies;
the accounting software program must be capable of connecting or ready to
connect to relevant software programs at the request of competent authorities.
3. The unit’s head, chief accounting/acting chief
accountant and relevant persons shall assume responsibility for the accuracy
and truthfulness of accounting information/data presented on accounting books
and reports obtained/printed from accounting software programs.
Article 12. Responsibility of relevant
authorities and units
1. Finance authorities and state treasuries
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b) Local finance authorities shall cooperate with
local competent authorities in providing advice for same-level People’s
Committees on plans for organizing local accounting units that must be
reasonable, and meet streamlined and professional accounting apparatus
requirements to perform accounting works, improve quality of reports submitted
by accounting units, and properly and safely manage State cash and assets at
units.
c) Finance authorities and state treasuries of same
level shall cooperate with units in comparing, verifying, correcting, providing
and use data on receipt and use of funding sources, management and use of
assets, and other financial activities of accounting units within the ambit of
their assigned functions and tasks.
2. Level-I estimation units
a) Level-I estimation units that have affiliated
units shall, within the ambit of their assigned tasks and powers, organize
accounting works for their affiliated units to ensure that all
economic/financial transactions that occur at such units must be recorded in
their accounting books and financial statements in accordance with provisions
of this Circular in order to properly and safely manage the State cash and
assets.
- Level-I estimation units must issue documents
confirming their affiliated accounting units that are required to prepare
financial statements as prescribed in this Circular; other units that are not
accounting units may be considered as financially dependent units or spending
units of accounting units.
- Level-I estimation units shall issue payment
codes to their affiliated accounting units to serve consistent accounting and
establish the basis for comparison and exclusion of internal transactions when
preparing consolidated financial statements of level-I estimation units as
prescribed.
- Level-I estimation units shall carry out
inspection of compliance with accounting policies by their affiliated
accounting units.
b) Level-I estimation units that are funded by
state budget are considered as accounting units and required to prepare
financial statements in accordance with provisions of this Circular.
3. Accounting units
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b) Accounting units must open accounting books and
fully record economic/financial transactions that occur at their units in
conformity with financial mechanisms applied at their units; comply with
professional accounting processes prescribed in this Circular.
c) Accounting units must make final statements of
operating funding and financial statements as prescribed in this Circular.
Persons whose signatures appear on reports/statements must control or monitor
the information/data presented in such reports/statements to ensure their
accuracy, matching and conformity with the provisions of this Circular and
relevant laws.
4. Financially dependent units
a) Financially dependent units must open accounting
books, fully make entries in their accounting books, and retain accounting
documents as assigned by their superior accounting units and in accordance with
provisions of this Circular.
b) At the end of each accounting period,
financially dependent units must provide information/data according to
instructions given by their superior accounting units to serve their data
consolidation and preparation of financial statements as prescribed in this
Circular.
Article 13. Effect
1. This Circular comes into force from January 01,
2025 and applies from the fiscal year 2025.
2. As from the date of entry into force of this
Circular, the documents listed hereunder shall cease to have effect:
a) The Circular No. 107/2017/TT-BTC dated October
10, 2017 of the Ministry of Finance of Vietnam;
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c) The Circular No. 76/2019/TT-BTC dated November
05, 2019 of the Ministry of Finance of Vietnam;
d) The Circular No. 79/2019/TT-BTC dated November
14, 2019 of the Ministry of Finance of Vietnam.
3. If any legislative documents referred to in this
Circular are amended or replaced, the new ones shall apply.
Article 14. Transition
1. After accounting books are closed to serve the
preparation of financial statements in 2024, balances must be carried forward
to new accounts as prescribed in this Circular.
2. Opening balances of the year 2025 in the
following reports may be subject to retrospective application after the
balances are carried forward from the year 2024, including:
a) Financial status report;
b) Notes to financial statements regarding contents
on financial status.
3. Carrying forward of balances on accounts shall
comply with guidelines in Appendix VI “Guidelines for carrying forward of
account balances” enclosed herewith.
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1. Ministries, ministerial agencies, Governmental
agencies and provincial People's Committees shall direct units under their
authority or management that are regulated of this Circular to implement
provisions of this Circular.
2. Director of the Department of Accounting and
Auditing Regulations, and heads of relevant units affiliated to the Ministry of
Finance of Vietnam shall disseminate, instruct, inspect and implement this
Circular./.
PP. MINISTER
DEPUTY MINISTER
Vo Thanh Hung