Circular No. 292/2016/TT-BTC guiding annual knowledge updating for practicing accountants and individuals providing accounting services

CIRCULAR

Guidelines for annual knowledge updating for practicing accountants and service accounting practitioners
and persons registering to practice accounting services

Pursuant to the Accounting Law No. 88/2015/QH13 dated November 20, 2015;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the request of the Director of the Accounting and Auditing Regulations Department;

The Minister of Finance issues this Circular to guide annual knowledge updating for practicing accountants and service accounting practitioners.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular provides guidance on annual knowledge updating for practicing accountants and service accounting practitioners (hereinafter referred to as accountants) as stipulated in the Accounting Law.

Article 2. Applicability

The objects subject to this Circular include:

1. Practicing accountants and service accounting practitioners.

2. Professional associations regarding accounting and auditing (hereinafter referred to as Professional Associations); Training institutions; Accounting service businesses may organize classes for annual knowledge updating for accountants.

3. International professional organizations regarding accounting and auditing that organize classes for annual knowledge updating for their member accountants.

4. Other organizations and individuals related to updating knowledge for accountants.

Chapter II

 SPECIFIC PROVISIONS

The subjects of annual knowledge updating are practicing accountants and service accounting practitioners. In cases where new accountants or auditors have been issued certificates, they may register to practice accounting services from the date of issuance of the accountant or auditor certificate until December 31 of the year following the issuance of the certificate without being required to update their knowledge.

Article 4. Content and Materials for Knowledge Updating

a) Legal provisions on accounting and taxation in Vietnam, professional ethics standards for accounting;

b) Legal provisions related to economics, finance, and auditing; Management skills, practical accounting experience; International accounting and auditing standards; Other knowledge and information related to the profession.

2. Regarding materials for knowledge updating:

a) Knowledge updating materials must contain the contents as prescribed in Clause 1 of this Article;

b) Knowledge updating materials can be presented in the form of written documents or electronic data.

Article 5. Time for Knowledge Updating

1. The minimum time for knowledge updating is 40 hours in the year immediately preceding the year of registration for accounting service practice, including at least 20 hours of knowledge updating on the contents prescribed in Point a, Clause 1, Article 4 of this Circular.

3. The number of hours of annual knowledge updating for accountants is accumulated from August 16 of the previous year to August 15 of the following year.

Article 6. Forms of Knowledge Updating

1. Accountants participate in knowledge updating at classes organized by professional associations regarding accounting and auditing; training institutions; accounting service businesses, specifically as follows:

a) Professional associations and training institutions can organize general knowledge updating for all accountants;

b) Accounting service businesses can only organize knowledge updating for their own accountants.

2. Accountants who are members of international professional organizations regarding accounting and auditing participate in knowledge updating organized by such international professional organizations.

1. Professional associations, training institutions, and accounting service businesses must meet the general conditions for organizing knowledge update classes as follows:

b) Having a teaching staff participating in teaching in accordance with Article 8 of this Circular;

c) Having sufficient physical facilities to ensure the quality of training such as classrooms, desks and chairs, blackboards, teaching aids, and other training equipment (either owned or rented).

2.1. For professional associations:

In addition to the conditions stipulated in Clause 1 of this Article, professional associations must also meet the following conditions:

a) Having a regulation on knowledge update for accountants or a general training regulation that includes specific content on knowledge update for accountants;

b) Having a specialized department responsible for organizing knowledge update for accountants;

c) The knowledge update for accountants is recorded in the annual work program.

2.2 For training institutions:

In addition to the conditions stipulated in Clause 1 of this Article, training institutions must also meet the following conditions:

a) Being established and operating according to a decision of the competent state authority;

b) Offering majors at the bachelor's degree level or higher related to the content of knowledge update as stipulated in Clause 1, Article 4 of this Circular.

2.3 For accounting service businesses organizing knowledge update themselves:

In addition to the conditions specified in Clause 1 of this Article, accounting service businesses must also meet the following conditions:

a) Having at least 10 professional staff (including accountants and employees directly performing accounting services) at the time of registration;

b) Having a specialized department for training on knowledge update within the organizational structure of the business;

c) Having a training and knowledge update regulation for accountants of the business.

Within 10 working days from the date when they no longer meet the conditions or no longer have the need to organize knowledge update, units must submit a written notice to the Ministry of Finance stating the reasons, the date they no longer meet the conditions, or the cessation of organizing knowledge update. Based on the notification from the units, the Ministry of Finance will issue a notice to revoke the decision approving the organization of knowledge update for accountants.

Article 8. Lecturers participating in teaching knowledge update

Lecturers participating in teaching knowledge update classes for accountants must meet one of the following conditions:

1. Having at least five years of experience in providing accounting service practice.

2. Having at least five years of experience in working, researching, or teaching related to the content of knowledge update as stipulated in Clause 1, Article 4 of this Circular.

3. Currently or previously being a member of the drafting committee for accounting standards.

Units falling under the category specified in Clause 2, Article 2 of this Circular, which have the necessary conditions and the need to organize knowledge update for accountants, must submit to the Ministry of Finance a registration dossier for organizing knowledge update for accountants according to the provisions of Article 10 of this Circular.

The registration for organizing knowledge update only needs to be carried out once. Within 10 working days from the date of receiving a valid dossier, the Ministry of Finance will review and issue a Decision approving the units to organize knowledge update for accountants according to the model specified in Appendix No. 02/CNKT issued together with this Circular.

If the dossier is incomplete or invalid, within 5 working days from the date of receiving the dossier, the Ministry of Finance will send a written request or email requesting the completion of the dossier. If the units do not supplement the dossier or provide explanatory documents as required, the Ministry of Finance has the right to reject or not approve. In case of rejection, the Ministry of Finance will reply in writing and specify the reasons.

1. For professional associations, the documents include:

a) The registration form for organizing knowledge updates for accountants according to the model prescribed in Appendix No. 01/CNKT issued together with this Circular;

b) A copy of the training regulations;

c) Documentation proving the existence of a dedicated department responsible for organizing knowledge updates for accountants.

2. For training institutions, the documents include:

a) The registration form for organizing knowledge updates for accountants according to the model prescribed in Appendix No. 01/CNKT issued together with this Circular;

b) A certified copy of the decision establishing the training institution issued by the competent state authority; Documentation proving the training majors offered.

3. For accounting service businesses, the documents include:

a) The registration form for organizing knowledge updates for accountants according to the model prescribed in Appendix No. 01/CNKT issued together with this Circular;

b) A minimum list of 10 professional employees of the accounting service business;

c) Documentation proving the existence of a dedicated training department within the organizational structure of the business responsible for knowledge updates, along with the business's training regulations on knowledge updates.

Article 11. Calculation of Knowledge Update Hours

1. Accountants participating in knowledge update courses shall have their hours counted at a ratio of 1 hour of study equals 1 hour of knowledge update. The duration counted as knowledge update hours shall not exceed 04 hours/session and 08 hours/day.

2. Accountants participating in teaching knowledge update classes for other accountants shall have their hours counted at a ratio of 1 hour of teaching equals 1.5 hours of knowledge update. The duration counted as teaching hours shall not exceed 04 hours/session and 08 hours/day.

3. The maximum number of knowledge update hours for accountants participating in knowledge update courses organized by international accounting and auditing professional organizations shall be 20 hours/year.

4. Accountants participating in knowledge update courses organized jointly by professional associations, training institutions, and other units or organizations shall have their hours counted according to the provisions of Clause 1 of this Article if the professional association or training institution is the main organizer of the knowledge update courses.

5. Accountants participating in knowledge update courses organized by international accounting and auditing professional organizations of which they are members shall have their hours counted according to the provisions of Clause 1 of this Article if:

a) The accountant is a formal member of the international accounting and auditing professional organization;

b) The international accounting and auditing professional organization is a member of the International Federation of Accountants (IFAC) and must comply fully with all mandatory obligations for IFAC members;

d) The content of the knowledge update is consistent with the provisions of Clause 1 of Article 4 of this Circular.

6. Calculation of knowledge update hours for accountants involved in the drafting process of Vietnamese Accounting Standards:

a) Only accountants directly participating in discussions and reviews of the Vietnamese Accounting Standards system and having confirmation from the main organizing body of the discussion and review sessions (excluding time spent in seminars on Vietnamese Accounting Standards) shall be counted;

b) Accountants participating in discussions and reviews of the Vietnamese Accounting Standards system shall be counted at a ratio of 1 hour of participation equals 1 hour of knowledge update on Vietnamese accounting laws. The duration counted as knowledge update hours shall not exceed 04 hours/session and 08 hours/day.

a) Only accountants named in the Quality Control Service Inspection Decision of the Ministry of Finance and directly participating in the inspection team shall be counted;

b) Accountants shall be credited with 04 hours of knowledge update on Vietnamese accounting laws for each session of inspection, and 08 hours of knowledge update on Vietnamese accounting laws for each day of inspection;

c) Accountants participating in training sessions on inspection procedures, processes, and operations organized by the Ministry of Finance shall be counted at a ratio of 1 hour of participation equals 1 hour of knowledge update on Vietnamese accounting laws. The duration counted as knowledge update hours shall not exceed 04 hours/session and 08 hours/day.

1. In cases where practicing accountants are unable to complete the required continuing professional education hours as stipulated in Clause 1, Article 5 of this Circular due to special reasons (pregnancy, accidents, prolonged illness exceeding two months; or sudden illness occurring on the date of the final continuing professional education class for the missing hours), the practicing accountant will be granted postponement of continuing professional education hours for the year if all of the following conditions are met:

a) Having completed at least twenty hours of continuing professional education;

c) Providing documentation to substantiate the aforementioned reasons.

2. Within ten days from the date of receiving the application file as prescribed in Clause 1 of this Article, the Ministry of Finance shall issue a notification to the practicing accountant regarding the approval or denial of the postponement of continuing professional education hours.

A practicing accountant granted postponement of continuing professional education hours for the current year may continue to practice in the following year if they complete the remaining hours before December 15 of the current year and report in writing to the Ministry of Finance about the completion of the remaining hours before December 25 of the current year. The hours counted towards the current year shall not be counted towards the following year.

If by December 15 of the current year, the practicing accountant has not completed the required hours as stipulated or if the Ministry of Finance does not receive the written report on the completion of the remaining hours by December 25 of the current year, the practicing accountant will be suspended from providing accounting services from January 1 to December 31 of the following year.

Article 13. Documentation Proving Continuing Professional Education Hours

1. In cases where the accountant participates in continuing professional education classes organized by units specified in Clauses 2 and 3 of Article 2 of this Circular, the documentation proving continuing professional education hours is a certificate of attendance in continuing professional education which clearly states the name of the organizing unit, the name of the participant, the accountant certification number or auditor certification number, the subject studied, the date of the class, and the actual number of hours attended.

2. In cases where the accountant participates in teaching continuing professional education classes organized by units specified in Clauses 2 and 3 of Article 2 of this Circular, the documentation proving continuing professional education hours is a confirmation letter from the organizing unit which clearly states the teacher's full name, the accountant certification number or auditor certification number, the subjects taught, the teaching period, and the number of hours taught for each subject.

3. In cases where the accountant participates in discussions and reviews of Vietnamese accounting standards, the documentation proving continuing professional education hours is a confirmation letter from the organization or agency hosting the discussion and review of standards.

Article 14. Archiving Records for Accountant Continuing Education Programs

1. The records on organizing continuing education programs must be kept including:

b) Report on the results of organizing continuing education classes for accountants according to the model specified in Appendix No. 03/CNKT issued together with this Circular;

c) Materials related to continuing education classes as prescribed in Clause 2, Article 4 of this Circular;

d) Summary report on the results of organizing continuing education classes for accountants according to the model specified in Appendix No. 04/CNKT issued together with this Circular;

e) Plan and program for the next year's continuing education for accountants according to the model specified in Appendix No. 06/CNKT issued together with this Circular;

g) Records about lecturers of the classes, including: Full name, academic title, degree, professional qualification, accountant certificate number or auditor certificate number (if any), position, work experience and unit, contact address, phone number, email, teaching contract.

2. The records on organizing continuing education programs for accountants must be kept for at least five years from the year of implementation.

1. Annually, no later than July 31, notify in writing to the Ministry of Finance about the plan and program for the next year's continuing education for accountants according to the model specified in Appendix No. 06/CNKT issued together with this Circular.

4. Within no more than five working days after each continuing education class, send "Report on the Results of Organizing Continuing Education Classes for Accountants" according to the model specified in Appendix No. 03/CNKT issued together with this Circular in writing or electronic data to the Ministry of Finance (accompanied by the List of Participants in the Continuing Education Class).

5. Annually, no later than August 25, send "Summary Report on the Results of Organizing Continuing Education Classes for Accountants" according to the model specified in Appendix No. 04/CNKT issued together with this Circular in writing and electronic data to the Ministry of Finance for consideration and recognition of continuing education hours for accountants.

7. Confirm the number of continuing education hours for accountants when requested by the accountant or upon request by the Ministry of Finance.

8. Keep records on organizing continuing education programs for accountants as prescribed in Article 14 of this Circular.

Article 16. Responsibilities of Accountants

1. Participate in updating knowledge in accordance with this Circular.

2. Timely report to the Ministry of Finance any signs of violations by professional associations, training institutions, or accounting service businesses during the organization of training sessions.

2. Annually publish on the Ministry of Finance's website the names of professional associations, training institutions, and accounting service businesses approved to organize knowledge updates for accountants.

3. Regularly or unexpectedly supervise and inspect the organization of knowledge updates by professional associations, training institutions, and accounting service businesses; Promptly identify and handle violations related to knowledge updates in accordance with the law.

4. Retain all relevant files concerning the organization of knowledge updates by professional associations, training institutions, and accounting service businesses for a minimum period of five years from the year of implementation.

2. Organize knowledge updates for accountants on contents that do not align with the registered plan or program or have been reported to the Ministry of Finance.

3. Report inaccurately about the organization of knowledge updates, such as: not holding classes but reporting as if they were held, falsely reporting the number of accountants participating in updates and the number of update hours, incorrectly calculating the required update hours for participating accountants.

4. Proxy attendance, proxying attendance, proxy signing-in, proxy signing-out, or cheating when reporting update hours.

5. Violate other provisions regarding the organization of knowledge updates for accountants stipulated in this Circular and other laws.

Chapter III

IMPLEMENTATION

Article 19. Transitional Provisions

1. The calculation of update hours for accountants in 2016 to be eligible to practice in 2017 shall be carried out in accordance with Circular No. 72/2007/TT-BTC dated June 27, 2007, issued by the Ministry of Finance guiding registration and management of accounting practices.

2. The calculation of update hours for accountants in 2017 to be eligible to practice in 2018 shall be counted from August 16, 2016, to August 15, 2017, excluding the update hours already counted for 2016.

Article 20. Effective Date

1. This Circular takes effect from January 1, 2017.

2. This Circular replaces the provisions on knowledge updates in Circular No. 72/2007/TT-BTC dated June 27, 2007, issued by the Ministry of Finance guiding registration and management of accounting practices.

3. The Ministry of Finance is responsible for implementing inspections and supervision of compliance with regulations on knowledge updates for accountants by relevant entities in accordance with the law. 4. During implementation, if there are difficulties or obstacles, timely feedback is requested so that the Ministry of Finance can study and make appropriate amendments and supplements./.