Directive No. 05/2004/CT-BTC on Promoting the Implementation of the Accounting Law and Related Guidance Documents

DIRECTIVE OF THE MINISTER OF FINANCE

On accelerating  the implementation of the Accounting Law

 and guiding documents for the Accounting Law

The Accounting Law was passed by the National Assembly, session XI, on June 17, 2003, and promulgated by the President on June 26, 2003. Decree No. 128/2004/NĐ-CP detailing and guiding the implementation of certain provisions of the Accounting Law applicable to state accounting and Decree No. 129/2004/NĐ-CP detailing and guiding the implementation of certain provisions of the Accounting Law applicable to business operations have been signed and issued by the Prime Minister on May 31, 2004.

In the current situation, implementing the Accounting Law and the Government's Decrees is a very important solution to unify accounting management, ensure that accounting serves as a strict tool for managing and supervising all economic and financial activities, providing complete, truthful, transparent, and clear information, meeting the requirements of management and operation of enterprises, organizations, state agencies, and individuals, contributing to strengthening discipline in economic and financial management, promoting healthy economic and social relations, and creating conditions for new economic management mechanisms to be implemented in daily life.

To effectively implement the Accounting Law and the Government's Decrees in 2004 and subsequent years, the Minister of Finance instructs the heads of financial agencies at all levels to proactively coordinate with relevant ministries, sectors, localities, State-owned corporations, and grassroots units to carry out the following tasks:

1/ From now until the end of 2004 and early 2005, organize research, dissemination, and propaganda to thoroughly understand the spirit and content of the Accounting Law and guiding decrees for the implementation of the Accounting Law down to each grassroots unit.

To accomplish this task, the heads of financial agencies at all levels should proactively coordinate with the Vietnam Association of Accountants and Auditors, provincial and municipal accounting associations, financial and accounting training institutions (such as the Financial Academy, universities, colleges, secondary schools of finance and accounting,...) to introduce the content of the Accounting Law and guiding decrees for its implementation to each financial and accounting unit and every staff member involved in financial and accounting work.

2/ In 2004-2005, revise, supplement, and fundamentally improve the existing accounting systems: budget revenue and expenditure accounting system, administrative and public service accounting system, enterprise accounting system, serving as a basis for formulating, revising, and supplementing specific accounting systems for various industries and fields.

- Heads of units under the Ministry of Finance (Accounting and Audit Department, State Budget Department, Administrative and Public Service Department, Banking Finance Department, Insurance Department, Corporate Finance Bureau, State Treasury):

Urgently coordinate with ministries, ministerial-level agencies, and State-owned corporations to develop and promptly submit specific accounting regulations for each field of budget revenue and expenditure, administrative and public service, enterprise accounting (such as oil and gas accounting, construction and installation accounting, aviation accounting...), small and medium-sized enterprise accounting, cooperative accounting, individual business accounting...

Proactively participate with ministries, ministerial-level agencies, and units based on the Accounting Law, guiding documents for the Accounting Law, and general accounting regulations to study and guide the development of special accounting systems suitable for the characteristics, scale, and level of accounting of specific fields of activity, paying particular attention to new or significantly changed areas such as banking operations, insurance, securities, financial investment, accounting organization using computer software, electronic payment accounting, electronic networks,...

- Heads of financial agencies at all levels should proactively advise leaders of enterprises and grassroots units to select accounting systems based on accounting laws and sectoral and local guidance, and develop specific accounting procedures for their units.

3/ Develop plans and implement training and retraining programs for accounting officers and chief accountants according to the Accounting Law and detailed and guiding decrees for the implementation of the Accounting Law, with emphasis on training and retraining for the appointment of chief accountants in budget revenue and expenditure units, administrative and public service units, non-budget-funded public service units, and enterprises.

Heads of units under the Ministry of Finance (Accounting and Audit Department, State Budget Department, Corporate Finance Bureau, State Treasury, Cadre Organization Department, Financial Academy) should cooperate with central and local financial and accounting universities, colleges, and secondary schools, training and retraining centers to urgently review and revise training programs and content, compile or supplement textbooks and teaching materials in accordance with the Accounting Law, guiding documents for its implementation, new accounting systems, and the cadre positions and standards for accountants already established, and implement teaching according to new textbooks and teaching materials from the 2004-2005 academic year onwards.

4/ Organize and direct the implementation of the Accounting Law and guiding documents for its implementation, while also implementing accounting inspection regulations for grassroots units. During the years 2004-2005, the heads of financial agencies at all levels shall advise the leadership of enterprises and grassroots units and be responsible for arranging staff to guide units in implementing the Accounting Law and guiding documents for its implementation according to plans, and participate in resolving difficulties and issues in accounting work. At the same time, they shall conduct inspections and evaluations of the results and classify accounting units based on their implementation of the Accounting Law and guiding documents for its implementation to strengthen order and discipline in accounting work at the grassroots level. For units that perform well, timely forms of encouragement and rewards should be provided both spiritually and materially; for weak units, measures must be taken to improve their performance in 2006 and subsequent years.

5/ Strengthening the organizational system for directing accounting work in various sectors and localities

In 2004 and 2005, the heads of financial agencies at all levels shall proactively advise the leadership of ministries, sectors, localities, and enterprises to conduct inspections and evaluations of the allocation and utilization of chief accountant personnel, thereby selecting accountants who meet the ethical and professional standards required for the position of chief accountant in accordance with the provisions of the Accounting Law and guiding documents for the Accounting Law. Units without a chief accountant must appoint one. In budget revenue and expenditure units, administrative and public service units, and units not using state budget funds, the position of head of the accounting department must not be retained but instead a chief accountant must be appointed in accordance with the prescribed standards and conditions for chief accountants.

Heads of financial and accounting units under Ministries, agencies equivalent to Ministries, Provincial Finance Departments, and provincial management departments, and higher-level organizations must promptly strengthen the machinery responsible for directing and inspecting accounting work towards being streamlined and capable enough to assist leaders at all levels in concretizing and guiding the implementation of the Accounting Law and accounting regulations; researching and building advanced accounting models, organizing their implementation in grassroots units; organizing inspections, summarizing, and evaluating the situation of accounting work in sectors and localities.

6/ Continuing to enhance the role of the Vietnam Association of Accountants and Auditors

The heads of units under the Ministry of Finance (Accounting and Audit Regulations Department, Administrative Public Services Department, Financial Management Department) shall propose solutions to cooperate with ministries, sectors, provincial People's Committees, cities to consolidate and strengthen the activities of the Vietnam Association of Accountants and Auditors, provincial and city accounting associations, aiming to assign tasks such as supervising the quality of services, managing professional ethics for accountants and auditors; organizing training and updating knowledge for chief accountants, auditors, practicing accountants, and other functions for the Accounting Association; proposing directions for expanding international cooperation in accounting, coordinating with international accounting organizations and foreign accounting experts to train, instruct, establish accounting standards, and develop accounting practices in Vietnam.

The Minister of Finance requests the heads of financial agencies at all levels to proactively closely coordinate with the heads of financial agencies of ministries, sectors, and localities to advise and propose to the leadership of ministries, sectors, and chairmen of provincial people's committees to build plans and measures for specific implementation at the ministry, sector, and local levels, while coordinating with relevant agencies to organize guidance and inspection of the implementation of the Accounting Law and guiding documents for its implementation in subordinate units, regularly (monthly, quarterly) reporting the situation to the Ministry of Finance (Accounting and Audit Regulations Department) to promptly address emerging issues.