Law on Accounting number 88/2015/QH13

LAW

ACCOUNTANT

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Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly enacts the Accounting Law.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Law stipulates on the content of accounting work, accounting organizational structure, accountants, accounting service business activities, state management over accounting, and accounting professional organizations.

Article 2. Applicability

1. Agencies responsible for collecting and disbursing state budgets at all levels.

2. State agencies, organizations, and units operating with state budget funds.

3. Organizations and units not operating with state budget funds.

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

5. Cooperatives and cooperative federations.

6. Individual households and cooperatives.

7. Persons engaged in accounting work.

8. Professional accountants; accounting service businesses and individual households.

9. Accounting professional organizations.

10. Other agencies, organizations, and individuals related to accounting and accounting service business activities in Vietnam.

Article 3. Explanation of Terms

In this Law, the following terms shall be understood as follows:

1. Financial Reports is the economic and financial information system of the accounting unit presented according to the forms prescribed in accounting standards and accounting regulations.

2. Accounting system are provisions and guidelines on accounting in a specific field or certain tasks issued by state management agencies on accounting or organizations authorized by such agencies.

3. Accounting vouchers are papers and objects carrying information reflecting completed economic and financial transactions, serving as the basis for recording in accounting books.

4. Accounting unit is an agency, organization, or unit specified in Clauses 1, 2, 3, 4, and 5 of Article 2 of this Law that prepares financial statements.

5. Original cost is the initial recorded value of assets or liabilities. The original cost of assets includes purchase costs, loading, transportation, assembly, processing, and other directly related costs as prescribed by law until the asset is ready for use.

6. Fair value is the value determined in accordance with market prices, which can be received when selling an asset or transferring a liability at the valuation date.

7. Accounting format refers to accounting book models, recording procedures, methods, and relationships between accounting books.

8. Accountant is the process of collecting, processing, checking, analyzing, and providing economic and financial information in the form of values, physical quantities, and labor time.

9. Research Divisions directly under the Institute: is the process of collecting, processing, checking, analyzing, and providing economic and financial information through financial reports for users requiring such information from the accounting unit.

10. Management accounting is the process of collecting, processing, analyzing, and providing economic and financial information according to management requirements and economic and financial decision-making within the accounting unit.

11. Professional accountant is a person holding a Certificate of Registration for Accounting Services issued in accordance with this Law.

12. Accounting audit is the examination and evaluation of compliance with accounting laws, the truthfulness, and accuracy of accounting information and figures.

13. Accounting service business is the provision of accounting services, chief accountant services, preparation of financial statements, accounting advice, and other accounting-related tasks as prescribed by this Law for organizations and individuals requiring such services.

14. Accounting period is the defined period from the start of accounting bookkeeping by the accounting unit to the end of bookkeeping, closing the books to prepare financial statements.

15. Economic and financial transactions are specific activities that increase or decrease the assets and sources of formation of assets of the accounting unit.

16. Accounting method is the specific way and procedure to implement each accounting task.

17. Electronic means are means of operation based on electrical, electronic, digital, magnetic, wireless transmission, optical, electromagnetic, or similar technology.

18. Accounting documents are accounting vouchers, accounting books, financial statements, management accounting reports, audit reports, accounting inspection reports, and other documents related to accounting.

Article 4. Accounting Tasks

1. Collecting, processing accounting information and data according to the objects and contents of accounting work, in accordance with accounting standards and accounting regulations.

2. Checking and supervising financial revenues and expenditures, obligations for collection and payment, debt repayment; inspecting management and use of assets and sources of asset formation; detecting and preventing violations of financial and accounting laws.

3. Analyzing accounting information and data; advising and proposing solutions to serve management requirements and economic and financial decisions of the accounting entity.

4. Providing accounting information and data in accordance with the provisions of the law.

Article 5. Accounting Requirements

1. Fully reflecting economic and financial transactions occurring into accounting vouchers, ledgers, and financial reports.

2. Timely reflecting accounting information and data within the prescribed time frame.

3. Clearly, easily understandable, and accurately reflecting accounting information and data.

4. Truthfully and objectively reflecting the current status, essence of events, content and value of economic and financial transactions.

5. Accounting information and data must be continuously reflected from the time they arise until the end of economic and financial activities, from establishment to cessation of operations of the accounting unit; accounting data of this period must follow up on the accounting data of the previous period.

6. Classifying and arranging accounting information and data systematically in sequence and comparably verifiable.

Article 6. Accounting Principles

1. The value of assets and liabilities shall be initially recorded at cost. After initial recording, for certain types of assets or liabilities whose values fluctuate frequently according to market prices and can be reliably revalued, they shall be recorded at fair value at the end of the reporting period for financial statements.

2. Accounting provisions and methods chosen must be consistently applied throughout the fiscal year; in case of changes to selected accounting provisions and methods, the accounting unit must explain in the financial statements.

3. The accounting entity must collect and objectively, fully, and accurately reflect economic and financial transactions that occur during the accounting period.

4. Financial reports must be prepared and submitted to competent authorities fully, accurately, and promptly. Information and data in the financial reports of the accounting unit must be disclosed in accordance with Articles 31 and 32 of this Law.

5. The accounting entity must use cautious methods to evaluate assets and allocate revenues and expenditures without distorting the economic and financial results of the entity.

6. The preparation and presentation of financial reports must ensure the true reflection of the nature of transactions rather than their form or name.

7. State agencies, organizations, and non-profit units using state budget funds, in addition to implementing the provisions of Clauses 1, 2, 3, 4, 5, and 6 of this Article, must also conduct accounting according to the state budget item list.

Article 7. Accounting Standards and Professional Ethics Standards for Accountants

1. Accounting standards include basic provisions and methods for preparing financial statements.

2. Professional ethics standards for accountants include provisions and guidelines on principles and application contents of ethical standards for accountants, practicing certified public accountants, enterprises, and accounting service businesses.

3. The Ministry of Finance shall stipulate accounting standards and professional ethics standards for accountants based on international accounting standards suitable for specific conditions in Vietnam.

Article 8. Accounting Objects

1. Accounting objects under state budget revenue and expenditure, administrative, and public services activities; activities of units and organizations using state budgets include:

a) Money, materials, and fixed assets;

b) Sources of funds and reserves;

c) Payments within and outside the accounting entity;

d) Revenue and expenditure and handling of revenue and expenditure discrepancies in activities;

đ) State budget revenue and expenditure and surplus;

e) State financial investment and credit;

g) Public debt and debt handling;

h) Public assets;

i) Assets, receivables, other liabilities related to the accounting unit.

2. Accounting objects under activities of units and organizations not using state budgets include assets and sources of asset formation as specified in Points a, b, c, d, and i Clause 1 of this Article.

3. Accounting objects under business activities, except those specified in Clause 4 of this Article, include:

a) Assets;

b) Accounts payable and equity;

c) Business income, operating expenses, other income and expenses;

d) Taxes and payments to the state budget;

đ) Results and distribution of business activity results;

e) Assets, receivables, other liabilities related to the accounting unit.

4. Accounting objects under banking, credit, insurance, securities, and financial investment activities include:

a) Objects specified in Clause 3 of this Article;

b) Financial investments, credits;

c) Payments within and outside the accounting entity;

d) Commitments, guarantees, negotiable instruments.

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

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

2. When performing financial accounting and management accounting tasks, the accounting entity must carry out general ledger accounting and detailed accounting as follows:

a) General accounting must collect, process, record, and provide comprehensive information on the economic and financial activities of the accounting entity. General accounting uses monetary units to reflect the situation of assets, sources of asset formation, economic and financial activity conditions and results of the accounting entity. General accounting is based on the information and data from detailed accounting;

b) Detailed accounting must collect, process, record, and provide detailed information in monetary units, physical units, and labor time units for each specific accounting object within the accounting entity. Detailed accounting illustrates general accounting. The detailed accounting figures must match the general accounting figures for a given accounting period.

3. The Ministry of Finance shall guide the application of management accounting suitable for each field of operation.

Article 10. Units of measurement used in accounting

1. The monetary unit used in accounting is the Vietnamese Dong, with the national symbol "đ" and international symbol "VND". In cases where economic and financial transactions occur in foreign currency, the accounting entity must record in the original currency and Vietnamese Dong according to the actual exchange rate, except where otherwise provided by law; for foreign currencies without an exchange rate with the Vietnamese Dong, they must be converted through another foreign currency that has an exchange rate with the Vietnamese Dong.

An accounting entity primarily receiving and spending in one foreign currency may choose that foreign currency as the monetary unit for accounting purposes, bear responsibility under the law, and notify the directly managing tax authority. When preparing financial statements for use in Vietnam, the accounting entity must convert to Vietnamese Dong according to the actual exchange rate, except where otherwise provided by law.

2. Physical units and labor time units used in accounting are the legally defined units of measurement of the Socialist Republic of Vietnam; if the accounting entity uses other units of measurement, they must be converted to the legally defined units of measurement of the Socialist Republic of Vietnam.

3. Accounting entities may round off numbers and use simplified units of measurement when preparing or publicly disclosing financial statements.

4. The Government shall provide detailed regulations and guidance on implementing this provision.

Article 11. Writing and numerals used in accounting

1. The writing used in accounting is Vietnamese. Where foreign languages must be used on accounting vouchers, ledgers, and financial reports in Vietnam, both Vietnamese and the foreign language must be used simultaneously.

2. The numerals used in accounting are Arabic numerals; a period (.) must be placed after thousands, millions, and billions; when recording digits after the units place, a comma (,) must be placed after the units place.

3. Enterprises, branches of foreign enterprises, or foreign organizations that need to transfer financial reports to their parent companies, foreign organizations, or share management software and transaction settlement systems with their parent companies or foreign organizations may use a comma (,) after thousands, millions, and billions; when recording digits after the units place, a period (.) must be placed after the units place and must be noted in the documentation, ledgers, and financial reports. In such cases, financial reports submitted to tax authorities, statistical agencies, and other competent state agencies must comply with the provisions of Clause 2 of this Article.

Article 12. Accounting Periods

1. Accounting periods include annual accounting periods, quarterly accounting periods, monthly accounting periods, and are defined as follows:

a) The annual accounting period is twelve months, from the first day of January to the last day of December of the Gregorian calendar year. Accounting entities with specific organizational and operational characteristics may choose an annual accounting period of twelve full months according to the Gregorian calendar, starting from the first day of the first month of this quarter until the last day of the last month of the previous quarter of the following year, and must notify the financial authority and tax authority;

b) The quarterly accounting period is three months, from the first day of the first month of the quarter to the last day of the last month of the quarter;

c) The monthly accounting period is one month, from the first day of the month to the last day of the month.

2. Accounting periods of newly established accounting entities are defined as follows:

a) The first accounting period for a newly established business entity shall be calculated from the first day of issuance of the Business Registration Certificate to the last day of the annual, quarterly, or monthly accounting period as stipulated in Clause 1 of this Article;

b) The first accounting period for other accounting entities shall be calculated from the first day of the decision establishing the accounting entity taking effect to the last day of the annual, quarterly, or monthly accounting period as stipulated in Clause 1 of this Article.

3. When an accounting entity is divided, merged, consolidated, converted in form or type of ownership, dissolved, terminated operations, or declared bankrupt, the final accounting period shall be calculated from the first day of the annual, quarterly, or monthly accounting period as stipulated in Clause 1 of this Article to the last day before the decision on division, merger, consolidation, conversion in form or type of ownership, dissolution, termination of operations, or bankruptcy of the accounting entity takes effect.

4. In cases where the first or last annual accounting period has a duration shorter than ninety days, it is permitted to combine with the next or previous annual accounting period to form one annual accounting period; the first or last annual accounting period must be shorter than fifteen months.

Article 13. Prohibited Acts

1. Falsifying, misrepresenting, or coercing others to falsify, misrepresent, or erase accounting vouchers or other accounting documents.

2. Intentionally providing, confirming false accounting information or figures through agreement or coercion.

3. Not recording assets or liabilities of the accounting entity or those related to the accounting entity in the accounting books.

4. Destroying or intentionally damaging accounting documents before the end of the retention period specified in Article 41 of this Law.

5. Issuing or announcing accounting standards or accounting regulations beyond authority.

6. Bribery, intimidation, harassment, or coercion of accountants to perform accounting work not in accordance with the provisions of this Law.

7. Individuals responsible for managing and operating an accounting entity concurrently performing accounting, warehouse management, or treasury functions, except for private enterprises and limited liability companies owned by a single individual.

8. Appointing or hiring individuals to perform accounting or chief accountant duties without meeting the qualifications and conditions stipulated in Articles 51 and 54 of this Law.

9. Renting, lending, leasing, or lending accounting certification or the Certificate of Registration for Accounting Services Practice under any form.

10. Establishing two or more financial accounting systems or providing, publishing financial reports with inconsistent figures within the same accounting period.

11. Engaging in accounting service business without obtaining a Certificate of Eligibility for Accounting Service Business Operation or practicing accounting services without ensuring the conditions prescribed by this Law.

12. Using the term "accounting service" in the name of a business entity if more than six months have passed since the issuance of the Business Registration Certificate and the Certificate of Eligibility for Accounting Service Business Operation has not been obtained, or the business entity has ceased accounting service operations.

13. Hiring individuals or organizations that do not meet the conditions for practicing or conducting accounting services to provide accounting services for their own entity.

14. Certified public accountants and businesses engaged in accounting services colluding or conspiring with clients to provide or confirm false accounting information or figures.

15. Other prohibited acts in accordance with laws on preventing and combating corruption in accounting activities.

Article 14. Value of accounting documents and data

1. Accounting documents and data have legal value for accounting units and are used to publish and disclose according to the provisions of the law.

2. Accounting documents and data serve as the basis for building and reviewing plans, budgets, final accounts, examining, and handling violations of the law.

Article 15. Responsibilities for managing, using, and providing accounting information and documents

1. The accounting entity is responsible for managing, using, preserving, and storing accounting records.

2. Accounting units are responsible for timely, fully, truthfully, and transparently providing accounting information and documents to agencies, organizations, or individuals as prescribed by law.

Chapter II

CONTENT OF ACCOUNTING WORK

Section 1

ACCOUNTING VOUCHERS

Article 16. Content of accounting vouchers

1. Accounting documents must contain the following main contents:

a) Name and number of the accounting document;

b) Date of issuance of the accounting document;

c) Name and address of the agency, organization, unit, or individual issuing the accounting voucher;

d) Name and address of the agency, organization, unit, or individual receiving the accounting voucher;

đ) Content of the economic and financial transaction;

e) Quantity, unit price, and amount of the economic and financial transaction recorded in figures; total amount of the accounting document used for receipt or payment recorded in figures and in words;

g) Signature, full name of the issuer, approver, and other relevant persons on the accounting document.

2. In addition to the main contents of accounting documents prescribed in Clause 1 of this Article, accounting documents may include additional contents according to each type of document.

Article 17. Electronic vouchers

1. An electronic voucher is considered an accounting voucher when it contains the contents prescribed in Article 16 of this Law and is presented in the form of electronic data, encrypted without being altered during transmission over computer networks, telecommunications networks, or on storage media such as magnetic tapes, floppy disks, or payment cards.

2. Electronic vouchers must ensure confidentiality and data integrity during use and storage; they must be managed and monitored to prevent exploitation, intrusion, copying, theft, or improper use of electronic vouchers. Electronic vouchers are managed like original accounting documents but must have appropriate equipment for use.

3. When paper vouchers are converted into electronic vouchers for transactions or payments, or vice versa, the electronic vouchers have value for performing economic and financial operations, while paper vouchers only retain value for record-keeping, monitoring, and checking, and are not valid for transactions or payments.

Article 18. Issuing and storing accounting vouchers

1. Economic and financial transactions related to the activities of accounting units must issue accounting vouchers. Accounting vouchers can only be issued once for each economic and financial transaction.

2. Accounting vouchers must be clearly, fully, promptly, and accurately prepared according to the content specified on the model. In cases where there is no model for accounting vouchers, accounting units may prepare their own accounting vouchers but must ensure all contents prescribed in Article 16 of this Law.

3. The content of economic and financial transactions on accounting vouchers cannot be abbreviated, erased, or modified; writing must be done with ink pens, numbers and letters must be continuous without interruption, blank spaces must be crossed out. Erased or modified accounting vouchers have no value for payment and bookkeeping. When an accounting voucher is incorrectly written, it must be canceled by crossing out the incorrect voucher.

4. Accounting vouchers must be issued with the number of copies prescribed. In cases where multiple copies of accounting vouchers need to be issued for one economic and financial transaction, the contents of the copies must be identical.

5. The person issuing, the person approving, and other signatories on accounting vouchers are responsible for the content of the accounting vouchers.

6. Accounting vouchers issued in the form of electronic vouchers must comply with the provisions of Article 17, Clause 1 and Clause 2 of this Article. Electronic vouchers must be printed on paper and stored according to the provisions of Article 41 of this Law. In cases where printing on paper is not required and storage is conducted electronically, security and confidentiality of information and data must be ensured, and retrieval must be possible within the retention period.

Article 19. Signing accounting vouchers

1. Accounting vouchers must bear all signatures according to the positions specified on the voucher. Signatures on accounting vouchers must be made with ink that does not fade. It is prohibited to sign accounting vouchers with red ink or with pre-carved signature stamps. The signature of one person on an accounting voucher must be consistent. The signature of a visually impaired person on an accounting voucher shall be carried out in accordance with the regulations of the Government.

2. Signatures on accounting vouchers must be signed by authorized persons or those authorized to sign. Strictly forbidden to sign accounting vouchers without recording all contents of the voucher within the responsibility of the signer.

3. Payment vouchers must be approved by an authorized person and signed by the Chief Accountant or an authorized person before implementation. Signatures on payment vouchers must be signed separately for each copy.

4. Electronic vouchers must have electronic signatures. Signatures on electronic vouchers have the same value as signatures on paper vouchers.

Article 20. Invoices

1. An invoice is an accounting voucher issued by organizations or individuals selling goods or providing services, recording information about sales or service provision in accordance with the law.

2. The content, form, procedures for issuing, managing, and using invoices shall be implemented in accordance with tax laws.

Article 21. Management and use of accounting vouchers

1. Information and figures on accounting vouchers serve as the basis for recording in accounting ledgers.

2. Accounting documents must be arranged according to economic content, chronological order, and stored safely as prescribed by law.

3. Only competent state agencies have the authority to temporarily detain, confiscate, or seal accounting vouchers. When temporarily detaining or confiscating accounting vouchers, the competent state agency must make copies of the detained or confiscated vouchers, affix their signatures and confirmations on the copies, hand over the copies to the accounting unit, and simultaneously prepare a record detailing the reasons, quantities, and types of accounting vouchers detained or confiscated, and sign and stamp it.

4. Agencies sealing accounting documents must establish a record, detailing the reasons, quantities of each type of sealed accounting documents, and sign and stamp it.

Section 2

ACCOUNTS AND LEDGERS

Article 22. Accounting accounts and accounting account system

1. Accounting accounts are used to classify and systematize economic and financial transactions according to economic content.

2. The accounting account system includes the necessary accounting accounts. Each accounting unit may only use one accounting account system for financial accounting purposes as prescribed by the Ministry of Finance.

3. The Ministry of Finance shall provide detailed regulations on accounting accounts and accounting account systems applicable to the following accounting units:

a) Accounting units responsible for collecting and disbursing state budget funds;

b) Accounting units using state budget funds;

c) Accounting units not using state budget funds;

d) Accounting units that are enterprises;

e) Other accounting units.

Article 23. Selection and application of accounting account systems

1. Accounting units must base their selection of accounting account systems on those prescribed by the Ministry of Finance.

2. Accounting units may detail the selected accounting accounts to meet their management needs.

Article 24. Accounting ledgers

1. Accounting books are used for recording, organizing, and preserving all economic and financial transactions related to the accounting unit.

2. Accounting ledgers must clearly indicate the name of the accounting unit; the name of the ledger; the date of establishment; the closing date; signatures of the ledger preparer, Chief Accountant, and legal representative of the accounting unit; page number; and stamped with a matching seal.

3. Accounting books must include the following main contents:

a) Date of entry;

b) Number and date of the accounting voucher serving as the basis for entry;

c) Summary of the content of the economic and financial transactions occurred;

d) Amount of the economic and financial transactions entered into the accounting accounts;

e) Opening balance, current period transactions, and closing balance.

4. Accounting books consist of general accounting books and detailed accounting books.

5. The Ministry of Finance shall provide detailed regulations on accounting ledgers.

Article 25. Accounting Books System

1. Accounting units must base on the accounting books system prescribed by the Ministry of Finance to select an accounting books system to apply at the unit.

2. Each accounting unit shall only use one accounting books system for each accounting period in a year.

3. Accounting units may concretize the selected accounting books to serve the accounting requirements of their unit.

Article 26. Opening, Recording, Closing, and Storing Accounting Books

1. Accounting books must be opened at the beginning of the fiscal year period; for newly established accounting units, accounting books must be opened from the date of establishment.

2. Accounting units must base on accounting vouchers to record in accounting books.

3. Accounting books must be recorded promptly, clearly, and fully according to the contents of the books. Information and figures recorded in accounting books must be accurate, truthful, and consistent with accounting vouchers.

4. The recording of accounting books must follow the chronological order of economic and financial transactions. Information and figures recorded in accounting books of the following year must continue from those recorded in the accounting books of the preceding year. Accounting books must be recorded continuously from the time of opening until closing.

5. Information and figures on accounting books must be recorded with ink; additional entries shall not be made above or below; overlapping entries are not allowed; skipping lines is prohibited; if a page is not filled completely, the blank portion must be crossed out diagonally; when a page is full, the total figures of the page must be summed up and transferred to the next page.

6. Accounting units must close accounting books at the end of the accounting period before preparing financial statements and in other cases as prescribed by law.

7. Accounting units may record accounting books using electronic means. In the case of recording accounting books using electronic means, provisions regarding accounting books under Articles 24 and 25 and Clauses 1, 2, 3, 4, and 6 of this Article must be followed, except for affixing cross-stamps. After closing electronic accounting books, they must be printed on paper and bound separately for each annual accounting period for storage. If they are not printed on paper but stored electronically, security and confidentiality of information must be ensured, and access must be guaranteed during the retention period.

Article 27. Correcting Accounting Books

1. When errors in accounting books are discovered, the information and figures recorded incorrectly must not be erased but corrected according to one of the following three methods:

a) Corrective entry by drawing a straight line through the incorrect figure and writing the correct number or letter above it, with the signature of the chief accountant beside it;

b) Negative entry by recording the incorrect number in red ink or within parentheses, followed by the correct number, with the signature of the chief accountant beside it;

c) Adjusting by creating an "adjustment voucher" and adding the difference to correct the entry.

2. In cases where errors are discovered in accounting books before the annual financial report is submitted to the competent state agency, corrections must be made directly on the accounting books of that year.

3. In the event that errors in accounting books are discovered after submitting annual financial statements to competent state agencies, corrections must be made on the accounting books of the year in which the errors were found and explained about the correction.

4. Corrections to accounting books in the case of recording using electronic means are carried out according to the method prescribed in point c of Clause 1 of this Article.

Article 28. Valuation and Recognition at Fair Value

1. Types of assets and liabilities are recognized and revalued at fair value at the end of the period for preparing financial statements, including:

a) Financial instruments required by accounting standards must be recognized and revalued at fair value;

b) Monetary items with foreign currency origins are valued at actual transaction rates;

c) Other assets or liabilities whose values fluctuate frequently, as required by accounting standards, must be revalued at fair value.

2. Revaluation of assets and liabilities at fair value must be based on verifiable evidence. In the absence of reliable basis for determining the value, assets and liabilities shall be recognized at historical cost.

3. The Ministry of Finance shall specify the types of assets and liabilities to be recognized and revalued at fair value, and the accounting methods for recognition and revaluation at fair value.

Section 3

FINANCIAL STATEMENTS

Article 29. Financial reports of accounting units

1. Financial reports of accounting units are used to compile and explain the financial situation and operating results of the accounting unit. The financial report of an accounting unit includes:

a) Financial situation report;

b) Operating results report;

c) Cash flow statement;

d) Explanatory notes to the financial statements;

d) Other reports as prescribed by law.

2. The preparation of financial reports of accounting units shall be carried out as follows:

a) Accounting units must prepare financial reports at the end of the annual accounting period; where the law provides for the preparation of financial reports during other accounting periods, the accounting units must prepare them according to those periods;

b) The preparation of financial reports must be based on data after closing the accounting books. Higher-level accounting units must prepare consolidated financial reports or merged financial reports based on the financial reports of accounting units within the same higher-level accounting unit;

c) Financial reports must be prepared with consistent content, methods, and presentation across accounting periods; where financial reports present differently across accounting periods, the reasons must be clearly explained;

d) Financial reports must bear the signatures of the preparer, the chief accountant, and the legal representative of the accounting unit. The person signing the financial report must be responsible for its contents.

3. The annual financial report of an accounting unit must be submitted to the competent state agency within ninety days from the end date of the annual accounting period as prescribed by law.

4. The Ministry of Finance shall provide detailed regulations on financial reports for each field of activity; responsibilities, subjects, reporting periods, methods of preparation, submission deadlines, places to receive reports, and publicizing financial reports.

Article 30. State financial reports

1. State financial reports are compiled based on the consolidation of financial reports of state agencies, public service units, economic organizations, and related units under the state sector, used to compile and explain the state's financial situation, financial operation results, and cash flows from state financial activities nationwide and in each locality.

2. State financial reports provide information on the state budget revenue and expenditure, state financial funds, public debt, state capital in enterprises, assets, sources of funding, and the use of state funding. State financial reports include:

a) State financial situation report;

b) State financial operation result report;

c) Cash flow statement;

d) Explanation of state financial reports.

3. The preparation of state financial reports shall be carried out as follows:

a) The Ministry of Finance is responsible for preparing state financial reports nationwide, submitting them to the Government for reporting to the National Assembly; directing the State Treasury to take the lead and coordinate with financial agencies to prepare financial reports within the scope of localities, submitting them to the People's Councils of provinces for reporting to the People's Councils at the same level;

b) State agencies, public service units, economic organizations, and related units have the responsibility to prepare their own reports and provide necessary financial information to serve the preparation of state financial reports nationwide and in each locality.

4. State financial reports are prepared and submitted to the National Assembly and People's Councils together with the finalization of the state budget as prescribed by the State Budget Law.

5. The Government shall provide detailed regulations on the content of state financial reports; the organization and implementation of the preparation and publicizing of state financial reports; the responsibilities of agencies, units, and localities in providing information to serve the preparation of state financial reports.

Article 31. Contents for Public Disclosure of Financial Reports

1. Accounting units using state budget funds shall publicly disclose information on revenue and expenditure from the state budget in accordance with the State Budget Law.

2. Accounting units not using state budget funds shall publicly disclose the final accounts of financial revenue and expenditure for the year.

3. Accounting units utilizing contributions from the people shall publicly disclose the purposes of raising and using such contributions, contributors, collection rates, results of utilization, and final accounts for each contribution.

4. Accounting units engaged in business activities shall publicly disclose the following contents:

a) Asset situation, liabilities, and equity;

b) Business operation results;

c) Establishment and use of reserves;

d) Income of employees;

đ) Other contents as prescribed by law.

5. Financial reports of accounting units required by law to be audited when disclosed must be accompanied by audit reports from auditing organizations.

Article 32. Forms and Time Limits for Public Disclosure of Financial Reports

1. The public disclosure of financial reports shall be carried out through one or more of the following forms:

a) Publishing printed materials;

b) Written notification;

c) Posting;

d) Posting on electronic information websites;

đ) Other forms as prescribed by law.

2. The form and time limit for public disclosure of financial reports of accounting units using state budget funds shall comply with the provisions of the law on state budget.

3. Accounting units not using state budget funds and those using contributions from the people must publicly disclose their annual financial reports within thirty days from the date of submission of the financial report.

4. Accounting units engaged in business activities must publicly disclose their annual financial reports within one hundred twenty days from the end of the annual accounting period. In cases where securities, credit, and insurance laws prescribe specific forms and time limits for public disclosure of financial reports that differ from those stipulated in this Law, they shall follow the relevant laws.

Article 33. Audit of Financial Reports

1. Annual financial reports of accounting units that are required by law to be audited must be audited before being submitted to the competent state agency and before being publicized.

2. When being audited, accounting units must comply with all legal provisions on auditing.

3. When submitting audited financial reports to competent state authorities, accounting units must attach audit reports.

Section 4

ACCOUNTING INSPECTION

Article 34. Accounting Inspection

1. Accounting units must undergo accounting inspection by authorized agencies. Accounting inspections can only be conducted upon a decision by an authorized agency as prescribed by law, except for the agencies specified in point b, Clause 3 of this Article.

2. Authorized agencies deciding to conduct accounting inspections include:

a) Ministry of Finance;

b) Ministries, ministerial-level agencies, government agencies, and other central agencies responsible for inspecting accounting units in their assigned fields;

c) Provincial People's Committees responsible for inspecting accounting units under their management in their respective localities;

d) Higher-level units responsible for inspecting subordinate units.

3. Agencies authorized to conduct accounting inspections include:

a) Agencies specified in Clause 2 of this Article;

b) State inspection agencies, specialized financial inspection agencies, State Audit Office, and tax agencies when performing inspection, examination, and audit tasks on accounting units.

Article 35. Contents of Accounting Inspection

1. The content of the accounting audit includes:

a) Inspection of the implementation of accounting work;

b) Checking the organization of the accounting structure and accountants;

c) Inspection of the organization and management of accounting service operations;

d) Checking compliance with other provisions of the law on accounting.

2. The contents of accounting inspection must be determined in the inspection decision, except for the cases specified in point b, Clause 3 of Article 34 of this Law.

Article 36. Time for Accounting Inspection

The time for accounting inspection shall be decided by the competent authority conducting the accounting inspection but shall not exceed 10 days, excluding holidays and public holidays as stipulated by the Labor Code. In cases where the inspection content is complex and requires additional time for evaluation, comparison, and conclusion, the competent authority conducting the accounting inspection may extend the inspection period; however, the extension for each inspection shall not exceed five days, excluding holidays and public holidays as stipulated by the Labor Code.

Article 37. Rights and Responsibilities of the Accounting Audit Team

1. When conducting an accounting inspection, the accounting inspection team must announce the decision on the accounting inspection, except for the inspection teams specified in point b, Clause 3, Article 34 of this Law. The accounting inspection team has the right to request the inspected accounting unit to provide relevant accounting documents related to the inspection content and to explain when necessary.

2. Upon completion of the accounting inspection, the accounting inspection team must prepare an inspection record and hand it over to the inspected accounting unit; if violations of accounting laws are discovered, they shall be handled according to the authority or transferred to the competent state agency for handling in accordance with the law.

3. The head of the accounting audit team is responsible for the conclusions of the audit.

4. The accounting inspection team must comply with the procedures, contents, scope, and time limits of the inspection, without affecting the normal operations of the inspected accounting unit and without harassing the inspected accounting unit.

Article 38. Rights and Responsibilities of the Inspected Accounting Unit

1. The inspected accounting unit has the following responsibilities:

a) To provide the accounting audit team with relevant accounting documents related to the audit content and explain the contents as required by the audit team;

b) To implement the conclusions of the accounting audit team.

2. The inspected accounting unit has the following rights:

a) To refuse the inspection if it finds that the inspection does not conform to the authority prescribed in Clause 2 and Clause 3, Article 34 or the inspection content does not conform to the provisions of Article 35 of this Law;

b) To lodge a complaint with the competent state agency in case of disagreement with the conclusion of the accounting inspection team.

Article 39. Internal Control and Internal Audit

1. Internal control is the establishment and implementation within the accounting unit of mechanisms, policies, procedures, and internal regulations in accordance with the provisions of the law to ensure prevention, detection, and timely resolution of risks and to achieve the set requirements.

2. The accounting unit must establish an internal control system within the unit to ensure the following requirements:

a) The assets of the unit are secured and protected from improper use and inefficiency;

b) Transactions are approved within the appropriate authority and recorded fully to serve as the basis for preparing and presenting true and fair financial statements.

3. Internal audit is the examination, assessment, and supervision of the adequacy, appropriateness, and effectiveness of internal controls.

4. The internal audit has the following tasks:

a) To examine the suitability, effectiveness, and efficiency of the internal control system;

b) To examine and confirm the quality and reliability of economic and financial information in financial reports and management accounting reports before approval;

c) To examine compliance with operational principles, management, adherence to laws, financial regulations, accounting policies, resolutions, and decisions of the leadership of the accounting unit;

d) To identify weaknesses, deficiencies, and fraud in management and protection of the unit's assets; to propose solutions to improve and perfect the management and operation system of the accounting unit.

5. The Government shall specify detailed regulations on internal audit in enterprises, state agencies, and public institutions.

Section 5

INVENTORY OF ASSETS, PRESERVATION, AND STORAGE OF ACCOUNTING DOCUMENTS

Article 40. Inventory of Assets

1. Inventory of assets is the process of weighing, measuring, counting the quantity; confirming and evaluating the quality and value of assets and current capital at the time of inventory to check and compare with the figures in accounting books.

2. Accounting units must conduct asset inventory in the following cases:

a) At the end of the annual accounting period;

b) When the accounting unit is divided, separated, merged, consolidated, dissolved, terminated operations, declared bankrupt, or sold, leased;

c) When the accounting unit changes its form or ownership structure;

d) In the event of fire, flood, and other extraordinary losses;

đ) Revaluation of assets according to the decision of the competent state agency;

f) Other cases as prescribed by law.

3. After completing the asset inventory, the accounting unit must prepare a comprehensive report on the results of the inventory. In case there is a discrepancy between the actual figures from the inventory and the figures recorded in the accounting books, the accounting unit must determine the cause and reflect the discrepancy and the result of handling in the accounting books before preparing the financial statements.

4. The inventory must accurately reflect the actual assets and sources of asset formation. The person preparing and signing the consolidated report on the results of the inventory is responsible for the results of the inventory.

Article 41. Preservation and Storage of Accounting Documents

1. Accounting documents must be fully preserved safely during their use and storage by the accounting unit.

2. In case accounting documents are temporarily detained or confiscated, there must be an accompanying record along with a copy of the accounting documents; if the accounting documents are lost or destroyed, there must be an accompanying record along with a copy of the documents or a confirmation letter.

3. Accounting documents must be stored within twelve months from the end of the annual accounting period or the completion of accounting work.

4. The legal representative of the accounting unit is responsible for organizing the preservation and storage of accounting documents.

5. Accounting documents must be stored according to the following periods:

a) At least five years for accounting documents used for management and operation of the accounting unit, including accounting vouchers not directly used to record in accounting books and prepare financial statements;

b) At least ten years for accounting vouchers directly used to record in accounting books and prepare financial statements, accounting books and financial statements of the year, except where otherwise provided by law;

c) Permanently for accounting documents with archival value, significant economic, security, and defense importance.

6. The Government shall specify each type of accounting document that must be stored, the storage period, the starting point of the storage period as stipulated in Clause 5 of this Article, the place of storage, and the procedure for destroying stored accounting documents.

Article 42. Responsibilities of Accounting Units in Case of Loss or Destruction of Accounting Documents

Upon discovering the loss or destruction of accounting documents, the accounting unit must immediately carry out the following tasks:

1. Check, determine, and prepare a record regarding the quantity, condition, and cause of the loss or destruction of accounting documents; notify relevant organizations, individuals, and competent state agencies;

2. Organize the recovery of damaged accounting documents;

3. Contact organizations and individuals involved in transactions related to accounting documents and data to obtain copies or confirmations of the lost or destroyed accounting documents;

4. For accounting documents related to assets but cannot be restored through the measures specified in Clauses 2 and 3 of this Article, an asset inventory must be conducted to recreate the lost or destroyed accounting documents.

Chapter 6

ACCOUNTING WORK IN CASE OF THE ACCOUNTING UNIT

DIVIDED, SEPARATED, MERGED, CONSOLIDATED, TRANSFORMED FORM OR

OWNERSHIP STRUCTURE, DISSOLVED, TERMINATED OPERATIONS, DECLARED BANKRUPT

Article 43. Accounting Work in Case of Dividing the Accounting Unit

1. The accounting unit being divided into new accounting units must carry out the following tasks:

a) Close accounting books, inventory assets, determine outstanding debts, and prepare financial statements;

b) Allocate assets, outstanding debts, prepare transfer records, and record in accounting books according to the transfer records;

c) Transfer accounting documents related to assets and outstanding debts to the new accounting units.

2. The newly established accounting units shall base on the transfer records to open accounting books and record in accordance with the provisions of this Law.

Article 44. Accounting Work in Case of Separating the Accounting Unit

1. The accounting unit separating a part to establish a new accounting unit must carry out the following tasks:

a) Inventory assets and determine outstanding debts of the separated part;

b) Transfer assets and outstanding debts of the separated part, prepare transfer records, and record in accounting books according to the transfer records;

c) Transfer accounting documents related to assets and unpaid debts to the new accounting unit; for accounting documents not transferred, the separated accounting unit must store them according to the provisions of Article 41 of this Law.

2. The newly established accounting units shall base on the transfer records to open accounting books and record in accordance with the provisions of this Law.

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

1. Accounting units that are consolidated into a new accounting unit must perform the following tasks:

a) Close accounting books, inventory assets, determine outstanding debts, and prepare financial statements;

b) Transfer all assets, unpaid debts, prepare a handover record, and record in the accounting ledger according to the handover record;

c) Transfer all accounting documents to the consolidated accounting unit.

2. The consolidated accounting unit must perform the following tasks:

a) Based on the handover minutes, open accounting books and record in the accounting books in accordance with the provisions of this Law;

b) Consolidate the financial reports of the consolidated accounting units into the financial report of the consolidated accounting unit;

c) Receive and store accounting documents of the consolidated units.

Article 46. Accounting work in the case of merger of accounting units

1. The accounting unit being merged into another accounting unit must perform the following tasks:

a) Close accounting books, inventory assets, determine outstanding debts, and prepare financial statements;

b) Transfer all assets, unpaid debts, prepare a handover record, and record in the accounting ledger according to the handover record;

c) Transfer all accounting documents to the receiving accounting unit for merger.

2. The receiving accounting unit for merger must, based on the handover record, record in the accounting ledger according to the provisions of this Law.

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

1. The accounting unit that is converted in form or ownership type must perform the following tasks:

a) Close accounting books, inventory assets, determine outstanding debts, and prepare financial statements;

b) Transfer all assets, unpaid debts, prepare a handover record, and record in the accounting ledger according to the handover record;

c) Hand over all accounting documents to the accounting unit after the conversion.

2. The accounting unit after the conversion shall base on the handover minutes to open accounting books and record in the accounting books in accordance with the provisions of this Law.

Article 48. Accounting work in the case of dissolution, cessation of operations, bankruptcy

1. An accounting unit that is dissolved or ceases operations must perform the following tasks:

a) Close accounting books, inventory assets, determine outstanding debts, and prepare financial statements;

b) Open accounting books to track economic and financial transactions related to the dissolution, cessation of operations;

c) Hand over all accounting documents of the dissolved or ceased operation accounting unit to the superior accounting unit or organization, individual for storage in accordance with the provisions of Article 41 of this Law after completion of processing.

2. In the case where the accounting unit is declared bankrupt, the Bankruptcy Court shall designate a person to carry out the accounting work specified in Clause 1 of this Article.

Chapter III

ORGANIZATION OF ACCOUNTING DEPARTMENT AND ACCOUNTANTS

Article 49. Organization of accounting machinery

1. The accounting unit must organize the accounting machinery, arrange personnel for accounting or hire accounting services.

2. The organization of the machinery, arrangement of personnel for accounting, chief accountant, accounting supervisor or hiring accounting services, chief accountant shall be carried out in accordance with the regulations of the Government.

Article 50. Responsibilities of the legal representative of the accounting unit

1. Organize the accounting machinery, arrange personnel for accounting or decide to hire accounting service enterprises, accounting service households in accordance with the provisions of this Law.

2. Arrange the chief accountant or decide to hire chief accounting services in accordance with the provisions of this Law; if there are different provisions in specialized laws, they shall be implemented in accordance with the provisions of such specialized laws.

3. Organize and direct the implementation of accounting work in the accounting unit in accordance with the provisions of the law on accounting and bear direct responsibility for the consequences of violations caused by themselves; bear joint liability for violations caused by others but within their management responsibility.

4. Organize internal accounting inspection in the unit and conduct accounting inspections of subordinate units.

Article 51. Standards, rights, and responsibilities of accounting personnel

1. Accountants must meet the following standards:

a) Have professional ethics, honesty, integrity, and a sense of compliance with the law;

b) Have professional qualifications and expertise in accounting.

2. Accountants have the right to independence in professional and technical matters in accounting.

3. Accounting personnel have the responsibility to comply with the provisions of the law on accounting, perform assigned tasks, and bear responsibility for their professional and business activities. When changing accounting personnel, the former accounting personnel has the responsibility to hand over accounting work and accounting documents to the new accounting personnel. The former accounting personnel must bear responsibility for the accounting work during their tenure as accounting personnel.

Article 52. Persons Not Eligible to Serve as Accountants

1. Minors; persons declared by the Court to be partially or fully incapacitated; persons currently serving compulsory educational facilities or compulsory drug rehabilitation facilities.

2. Persons prohibited from practicing accounting according to a judgment or decision of the Court that has taken legal effect; persons currently under criminal investigation; persons currently serving a prison sentence or have been convicted of offenses related to economic management disorder, financial and accounting crimes in office, and have not yet had their criminal records expunged.

3. The father, mother, adoptive father, adoptive mother, wife, husband, biological child, adopted child, brother, sister, or half-sibling of the legal representative, head, director, general manager, and deputy heads, deputy directors, deputy general managers responsible for financial-accounting work, chief accountants in the same accounting unit, except for private enterprises, limited liability companies owned by a single individual, and other cases prescribed by the Government.

4. Persons currently managing, operating, storing goods, purchasing, or selling assets in the same accounting unit, except for private enterprises, limited liability companies owned by a single individual, and other cases prescribed by the Government.

Article 53. Chief Accountant

1. The chief accountant is the head of the accounting system of the entity with the responsibility to organize and implement accounting work within the accounting unit.

2. The chief accountant of state agencies, organizations, public service units funded by the state budget, and enterprises where the State holds more than 50% of the charter capital, in addition to the responsibilities stipulated in Clause 1 of this Article, also has the responsibility to assist the legal representative of the accounting unit in supervising finance at the accounting unit.

3. The chief accountant is subject to the leadership of the legal representative of the accounting unit; in cases where there is a higher-level accounting unit, they are simultaneously subject to the direction and supervision of the chief accountant of the higher-level accounting unit regarding professional and vocational matters.

4. In cases where the accounting unit appoints a person to temporarily replace the chief accountant, such person must meet the criteria and conditions specified in Clause 1 of Article 54 of this Law and must perform the duties and rights assigned to the chief accountant as stipulated in Article 55 of this Law.

Article 54. Criteria and Conditions for Chief Accountants

1. The chief accountant must meet the following criteria and conditions:

a) The criteria specified in Clause 1 of Article 51 of this Law;

b) Possess professional knowledge and skills in accounting at least at the college level;

c) Hold a certificate for chief accountant training;

d) Have at least two years of practical experience in accounting for those with professional knowledge and skills in accounting at the bachelor's degree level or above, and at least three years of practical experience in accounting for those with professional knowledge and skills in accounting at the college or associate degree level.

2. The Government shall specify in detail the criteria and conditions for chief accountants suitable for each type of accounting unit.

Article 55. Responsibilities and Rights of Chief Accountants

1. The chief accountant has the following responsibilities:

a) Implement legal regulations on accounting and finance in the accounting unit;

b) Organize and manage the accounting system according to this Law;

c) Prepare financial reports in compliance with accounting regulations and standards.

2. The chief accountant has the right to independence in professional and technical matters related to accounting.

3. For chief accountants of state agencies, organizations, public service units funded by the state budget, and enterprises where the State holds more than 50% of the charter capital, in addition to the rights stipulated in Clause 2 of this Article, they also have the following rights:

a) Provide written opinions to the legal representative of the accounting unit regarding the recruitment, transfer, salary increase, rewards, and disciplinary actions for accountants, storekeepers, and treasurers;

b) Request relevant departments within the accounting unit to provide complete and timely documentation related to accounting work and financial oversight conducted by the chief accountant;

c) Reserve professional opinions in writing when differing from the decision-maker's opinion;

d) Report in writing to the legal representative of the accounting unit when discovering violations of laws on finance and accounting within the unit; if still required to comply with the decision, report it to the immediate superior of the person who made the decision or the competent state agency and shall not be held responsible for the consequences of implementing that decision.

Article 56. Hiring accounting services, chief accountant services

1. Accounting units may enter into contracts with accounting service businesses or accounting service households to hire accounting services or chief accountant services in accordance with the provisions of the law.

2. The hiring of accounting services or chief accountant services must be established in writing in a contract in accordance with the provisions of the law.

3. Accounting units that hire accounting services or chief accountant services shall have the responsibility to provide all relevant information and documents related to the hired accounting work in a timely, complete, and truthful manner, and to pay the full accounting service fees in a timely manner as agreed upon in the contract.

4. The person hired as a chief accountant must meet the criteria and conditions stipulated in Article 54 of this Law.

5. Accounting service businesses and households, and persons hired for accounting or chief accountant positions shall be responsible for accounting information and figures according to the agreement in the contract.

Chapter IV

ACTIVITY OF ACCOUNTING SERVICE BUSINESS

Article 57. Certificate of Accountant

1. A person who is granted a certificate of accountant must meet the following criteria:

a) Have professional ethics, honesty, integrity, and a sense of compliance with the law;

b) Hold a bachelor's degree or higher in finance, accounting, auditing, or another field as prescribed by the Ministry of Finance;

c) Pass the examination for the certificate of accountant.

2. A person holding a specialist accountant certificate or an accountant certificate issued by a foreign organization or an international accounting organization, recognized by the Ministry of Finance of Vietnam, who passes the examination on Vietnamese economic, financial, and accounting laws, and meets the criteria specified in point a of Clause 1 of this Article, shall be granted a certificate of accountant.

3. The Ministry of Finance shall prescribe the conditions for obtaining the certificate of accountant, procedures for issuing and revoking the certificate of accountant.

Article 58. Registration for Accounting Service Practice

1. A person holding a certificate of accountant or a certificate of auditor as prescribed by the Independent Auditing Law may register for accounting service practice through an accounting service business or an accounting service household when meeting the following conditions:

a) Having civil capacity;

b) Having at least 36 months of actual work experience in finance, accounting, or auditing from the date of graduation;

c) Participating fully in knowledge update programs as prescribed.

2. A person meeting the conditions stipulated in Clause 1 of this Article shall register for practice and be issued a Certificate of Registration for Accounting Service Practice. The Ministry of Finance shall prescribe the procedures for issuing and revoking the Certificate of Registration for Accounting Service Practice.

3. The Certificate of Registration for Accounting Service Practice is only valid if the holder has a labor contract working full-time for an accounting service business or works at an accounting service household.

4. Persons not eligible to register for accounting service practice include:

a) Civil servants, public officials, defense personnel, police officers;

b) Persons prohibited from practicing accounting under court judgments or decisions that have taken legal effect; persons currently being prosecuted for criminal offenses; persons convicted of financial or accounting-related economic management order offenses and not yet rehabilitated; persons subject to administrative education measures in villages, towns, or compulsory educational facilities, drug rehabilitation centers;

c) Persons convicted of serious economic management order offenses and not yet rehabilitated;

d) Persons penalized administratively for violations of financial, accounting, or auditing laws and regulations, and whose penalty period has not expired, six months from the date of completion of the penalty decision in case of warning penalties, or one year from the date of completion of other administrative penalty decisions;

đ) Persons suspended from practicing accounting services.

Article 59. Accounting Service Business Enterprises

1. Accounting service business enterprises shall be established in the following forms:

a) Limited liability company with two or more shareholders;

b) Partnership firm;

c) Sole proprietorship enterprise.

2. An enterprise may only engage in accounting service business when it meets the business conditions stipulated in this Law and is issued a Certificate of Eligibility for Accounting Service Business.

3. An accounting service business enterprise shall not contribute capital to establish another accounting service business enterprise, except in the case of contributing capital with a foreign accounting service business enterprise to establish an accounting service business enterprise in Vietnam.

4. Foreign accounting service business enterprises conducting accounting service business in Vietnam shall operate under the following forms:

a) Contributing capital with an accounting service business enterprise that has been established and operates in Vietnam to form an accounting service business enterprise;

b) Establishing a branch of a foreign accounting service business enterprise;

c) Providing cross-border services in accordance with the Government's regulations.

Article 60. Conditions for Issuing a Certificate of Eligibility for Accounting Service Business

1. A limited liability company with two or more shareholders shall be issued a Certificate of Eligibility for Accounting Service Business when it meets the following conditions:

a) Having a Business Registration Certificate, Investment Registration Certificate, or other equivalent documents as prescribed by law;

b) Having at least two shareholders who are practicing accountants;

c) The legal representative, director, or general manager of the limited liability company must be a practicing accountant;

d) Ensuring the ratio of capital contribution by practicing accountants in the enterprise and the ratio of capital contribution by organizational members as prescribed by the Government.

2. A partnership firm shall be issued a Certificate of Eligibility for Accounting Service Business when it meets the following conditions:

a) Having a Business Registration Certificate, Investment Registration Certificate, or other equivalent documents as prescribed by law;

b) Having at least two partners who are practicing accountants;

c) The legal representative, director, or general manager of the partnership firm must be a practicing accountant.

3. A sole proprietorship enterprise shall be issued a Certificate of Eligibility for Accounting Service Business when it meets the following conditions:

a) Having a Business Registration Certificate, Investment Registration Certificate, or other equivalent documents as prescribed by law;

b) Having at least two practicing accountants;

c) The owner of the sole proprietorship enterprise must be a practicing accountant and concurrently serve as the director.

4. A branch of a foreign accounting service business enterprise in Vietnam shall be issued a Certificate of Eligibility for Accounting Service Business when it meets the following conditions:

a) The foreign accounting service business enterprise is permitted to provide accounting services according to the laws of the country where the foreign accounting service business enterprise is headquartered;

b) Having at least two practicing accountants, including the director or general manager of the branch;

c) The director or general manager of the branch of the foreign accounting service business enterprise shall not concurrently hold management positions in other enterprises in Vietnam;

d) The foreign accounting service business enterprise must submit a document to the Ministry of Finance guaranteeing its responsibility for all obligations and commitments of the branch in Vietnam.

5. Within six months from the date of registration for accounting service business, if an accounting service business enterprise or a branch of a foreign accounting service business enterprise in Vietnam does not obtain a Certificate of Eligibility for Accounting Service Business or in the event that such certificate has been revoked, the enterprise or branch must immediately notify the business registration authority to remove the phrase "accounting service" from the name of the enterprise or branch.

Article 61. Documents for Application to Obtain a Certificate of Eligibility for Accounting Services Business

1. Application form for obtaining a Certificate of Eligibility for Accounting Services Business.

2. Copy of the Enterprise Registration Certificate, Investment Registration Certificate, or other equivalent documents.

3. Copy of the Professional Practice Registration Certificate of practicing accountants.

4. Employment contracts between the accounting services business enterprise and practicing accountants.

5. Documentation proving capital contribution for limited liability companies.

6. Company Charter for partnership companies and limited liability companies.

7. Commitment letter and responsibility undertaking from foreign enterprises, and documents certifying permission to operate accounting services businesses issued by foreign enterprises for their branches operating accounting services businesses in Vietnam.

Article 62. Time Limit for Issuing a Certificate of Eligibility for Accounting Services Business

1. Within fifteen days from the date of receiving complete and valid application documents, the Ministry of Finance shall issue a Certificate of Eligibility for Accounting Services Business to the enterprise; if refusal to issue the certificate is necessary, it must be communicated in writing with specific reasons provided.

2. In cases where clarification of issues related to the application for a Certificate of Eligibility for Accounting Services Business is required, the Ministry of Finance may request the enterprise applying for the certificate to provide explanations. The time limit for issuing the Certificate of Eligibility for Accounting Services Business starts from the date of receipt of supplementary explanatory documents.

Article 63. Reissuance of a Certificate of Eligibility for Accounting Services Business

1. A Certificate of Eligibility for Accounting Services Business will be reissued in the following circumstances:

a) Changes in the name, legal representative, director, general manager, and main office address of the enterprise, or the branch of a foreign accounting services business enterprise in Vietnam;

b) Loss or damage of the Certificate of Eligibility for Accounting Services Business.

2. Documents for Application to Reissue a Certificate of Eligibility for Accounting Services Business include:

a) Application form for reissuing a Certificate of Eligibility for Accounting Services Business;

b) Original Certificate of Eligibility for Accounting Services Business that has been issued, except in the case stipulated in point b of Clause 1 of this Article;

c) Other relevant documents related to the application for reissuing a Certificate of Eligibility for Accounting Services Business (if any).

3. Within fifteen days from the date of receiving complete and valid application documents, the Ministry of Finance shall reissue a Certificate of Eligibility for Accounting Services Business to the enterprise; if refusal to reissue the certificate is necessary, it must be communicated in writing with specific reasons provided.

Article 64. Fees for Issuing and Reissuing a Certificate of Eligibility for Accounting Services Business

Enterprises engaged in accounting services business that obtain or reissue a Certificate of Eligibility for Accounting Services Business must pay fees as prescribed by law.

Article 65. Individual Households Engaged in Accounting Services Business

1. An individual household is permitted to engage in accounting services business when meeting the following conditions:

a) Possessing a Household Business Registration Certificate;

b) The individual or group of individuals representing the household must be practicing accountants.

2. Individual households engaged in accounting services business do not need to have a Certificate of Eligibility for Accounting Services Business.

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

1. Within ten days from the date of change in any of the following contents, enterprises providing accounting services must notify in writing to the Ministry of Finance:

a) List of practicing accountants at the enterprise;

b) Failure to meet one, some, or all of the conditions for providing accounting services as stipulated in Article 60 of this Law;

c) Name and main office address of the enterprise;

d) Director or general manager, legal representative, and shareholding ratio of members;

đ) Suspension of accounting service provision;

e) Establishment, cessation of operation, or change in name and main office address of branches providing accounting services;

g) Implementation of division, separation, merger, conversion, or dissolution.

2. Within ten days from the date of change in any of the following contents, individual households providing accounting services must notify in writing to the Ministry of Finance:

a) List of practicing accountants;

b) Name and address of the individual household;

c) Suspension or cessation of accounting service provision.

Article 67. Responsibilities of Practicing Accountants, Enterprises Providing Accounting Services, and Individual Households Providing Accounting Services

1. Performing accounting tasks related to the content agreed upon in the accounting service contract.

2. Compliance with accounting laws and professional ethics standards.

3. Being responsible before clients and the law for the content of provided accounting services and must compensate for damages caused by themselves.

4. Continuous improvement of professional knowledge and experience, implementation of annual knowledge update programs as prescribed by the Ministry of Finance.

5. Compliance with professional management and quality control of accounting services by the Ministry of Finance or accounting professional organizations authorized by the Ministry of Finance.

6. Purchase of professional liability insurance as prescribed by the Government.

Article 68. Cases Where Accounting Services Cannot Be Provided

Enterprises providing accounting services and individual households providing accounting services shall not provide accounting services to other accounting units when persons responsible for managing and operating the enterprise providing accounting services, representatives of individual households providing accounting services, or persons directly performing accounting services for the enterprise or individual household fall under any of the following cases:

1. Being the father, mother, adoptive father, adoptive mother, wife, husband, biological child, adopted child, brother, sister, or half-sibling of the person responsible for managing and operating, or chief accountant of the accounting unit, except in cases where the accounting unit is a private enterprise or a limited liability company owned by a single individual, and other cases prescribed by the Government;

2. Having economic or financial relations with the accounting unit;

3. Lacking professional competence or failing to meet the conditions to perform accounting services;

4. Providing accounting services as chief accountant for clients that have economic or financial relations with the accounting unit;

5. The accounting unit requests performance of tasks that do not comply with professional ethics standards or requirements for accounting expertise and financial operations.

6. Other situations as prescribed by law.

Article 69. Suspension of Accounting Service Provision and Revocation of Certificates of Eligibility for Accounting Service Provision

1. An enterprise providing accounting services shall be suspended from providing accounting services if it falls under any of the following circumstances:

a) Failing to meet one, some, or all of the conditions stipulated in Article 60 of this Law for three consecutive months;

b) Committing professional errors or violating accounting standards or professional ethics standards causing serious consequences or having the potential to cause serious consequences.

2. An enterprise providing accounting services shall have its Certificate of Eligibility for Accounting Service Provision revoked if it falls under any of the following circumstances:

a) Misrepresenting facts or falsifying documents to obtain eligibility for the Certificate of Eligibility for Accounting Service Provision;

b) Not providing accounting services for twelve consecutive months;

c) Failing to rectify violations within sixty days from the date of suspension;

d) Being dissolved, bankrupt, or voluntarily ceasing accounting service provision;

đ) Having its business registration certificate, investment registration certificate, or equivalent document revoked;

e) Altering or colluding to alter accounting documents, financial reports, and providing false information and figures;

g) Falsifying, erasing, or altering the Certificate of Eligibility for Accounting Service Provision.

3. An enterprise providing accounting services whose Certificate of Eligibility for Accounting Service Provision has been revoked must cease providing accounting services from the effective date of the revocation decision.

4. An individual household providing accounting services shall be suspended from providing accounting services if it commits professional errors or violates accounting standards or professional ethics standards causing serious consequences or having the potential to cause serious consequences.

5. An individual household providing accounting services must cease providing accounting services if it falls under any of the following circumstances:

a) Not providing accounting services for twelve consecutive months;

b) Failing to rectify violations within sixty days from the date of suspension;

c) Voluntarily ceasing accounting service provision;

d) Altering or colluding to alter accounting documents, financial reports, and providing false information and figures;

đ) Having its business registration certificate revoked;

e) All practicing accountants in the same individual household having their certificates of registration for practicing accounting services revoked.

6. A practicing accountant shall be suspended from practicing accounting services in the following cases:

a) Committing professional errors or violating accounting standards or professional ethics standards causing serious consequences or having the potential to cause serious consequences;

b) No longer meeting the conditions for registration to practice;

c) Failing to comply with regulations of competent authorities regarding inspections and audits related to accounting practice activities;

d) Failing to fulfill responsibilities as prescribed in Article 67 of this Law.

7. The accountant practitioner shall have their Registration Certificate for Accounting Services revoked in the following cases:

a) Fraudulently falsifying documents to meet the conditions for obtaining a Registration Certificate for Accounting Services;

b) Having their accounting certificate revoked;

c) Being convicted by a court judgment that has become legally effective.

1. Professional organizations in accounting are established and operate in accordance with the laws on associations and are responsible for complying with the provisions of the accounting laws.

2. Professional organizations in accounting provide training and update knowledge for accountants and practicing accountant practitioners and perform certain tasks related to accounting activities as prescribed by the Government.

Chapter V

STATE MANAGEMENT OF ACCOUNTING

Article 71. State Management of Accounting

1. The Government shall uniformly manage state affairs concerning accounting.

2. The Ministry of Finance is responsible before the Government for implementing state management of accounting and has the following tasks and powers:

a) Developing and submitting to the Government for decision strategic plans and policies for the development of accounting;

b) Drafting and submitting to the Government for promulgation or promulgating within its authority normative legal documents on accounting;

c) Issuing, reissuing, revoking Registration Certificates for Accounting Services and Certificates of Eligibility for Accounting Services; suspending the practice of accounting services and suspending the operation of accounting services;

d) Prescribing examination, issuance, revocation, and management of accounting certificates;

đ) Auditing accounting; inspecting accounting service activities; supervising compliance with accounting standards and accounting regulations;

e) Prescribing knowledge updating for practicing accountant practitioners;

g) Organizing and managing scientific research work on accounting and the application of information technology in accounting activities;

h) Inspecting, auditing, handling complaints and accusations, and dealing with violations of accounting laws;

i) International cooperation in accounting.

3. Ministries and ministerial-level agencies within the scope of their assigned tasks and powers are responsible for coordinating with the Ministry of Finance to implement state management of accounting in their respective sectors and fields.

4. Provincial People's Committees within the scope of their assigned tasks and powers are responsible for state management of accounting at the local level.

Chapter VI

IMPLEMENTING PROVISIONS

Article 72. Effective Date

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

2. Law on Accounting No. 03/2003/QH11 ceases to be effective from the date this Law takes effect.

Article 73. Transitional Provisions

1. The Government shall prepare the necessary conditions to commence the preparation of state financial reports as stipulated in Article 30 of this Law no later than 24 months from the date this Law takes effect.

2. Within 24 months from the date this Law takes effect, accounting service businesses established before the date this Law takes effect must ensure the conditions prescribed by this Law to obtain a Certificate of Eligibility for Accounting Services; if they do not meet the conditions prescribed by this Law, they must cease operations of accounting services.

3. Accounting practice certificates issued to Vietnamese citizens and foreigners under Law on Accounting No. 03/2003/QH11 shall be recognized as equivalent to the accounting certificates prescribed in this Law.

Article 74. Detailed Regulations

1. The Government and the Ministry of Finance are responsible for detailing the provisions assigned in this Law.

2. Based on the basic principles of this Law, the Government shall specify the content of accounting work for foreign enterprise representative offices operating in Vietnam, individual households, and cooperatives.

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PHARMACY LAW NO. 105/2016/QH13 dated April 6, 2016;This Law was passed by the 13th National Assembly of the Socialist Republic of Vietnam at its 10th session on November 20, 2015./.