Circular No. 99/2025/TT-BTC on Accounting System for Enterprises

CIRCULAR
Guidelines on Accounting System for Enterprises

Pursuant to the Accounting Law dated November 20, 2015;

Pursuant to the Law Amending and Supplementing Certain Provisions of the Securities Law, the Accounting Law, the Independent Audit Law, the State Budget Law, the Management and Use of Public Assets Law, the Tax Administration Law, the Personal Income Tax Law, the National Reserve Law, and the Administrative Violation Handling Law dated November 29, 2024;

Pursuant to Decree No. 29/2025/NĐ-CP dated February 24, 2025 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 166/2025/NĐ-CP dated June 30, 2025 of the Government amending and supplementing certain provisions of Decree No. 29/2025/NĐ-CP dated February 24, 2025 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

On the proposal of the Director of the Department of Accounting and Auditing Supervision;

The Minister of Finance hereby issues this Circular guiding the Accounting System for Enterprises.

PART I

GENERAL PROVISIONS 

Article 1. Scope of Regulation

This Circular guides accounting vouchers, accounting accounts, journal entries, preparation and presentation of Financial Statements of enterprises. The determination of tax liabilities of enterprises towards the State Budget shall be carried out in accordance with the provisions of the tax laws.

Article 2. Applicability

Article 1. This Circular guides accounting for all enterprises in all sectors and economic components.

Article 2. Credit institutions and foreign bank branches shall implement the accounting system or accounting regulatory documents as guided by the State Bank of Vietnam.

Article 3. Internal management and control work

Clause 1. The establishment, implementation, management, and control of economic transactions arising from enterprises must comply with the provisions of the law and relevant policies.

Clause 2. Enterprises have the responsibility to establish internal management regulations (or equivalent documents) and organize internal controls to clearly define the rights, obligations, and responsibilities of departments and individuals related to the establishment, implementation, management, and control of economic transactions occurring within the enterprise, ensuring compliance with corporate laws and relevant laws.

Article 4. Currency Unit in Accounting

Clause 1. "Currency unit in accounting" refers to the Vietnamese Dong (national symbol is "đ"; international symbol is "VND"), which is used for journal entries, preparation, and presentation of Financial Statements of enterprises. In cases where enterprises primarily conduct receipts and payments in foreign currencies and meet the factors specified in Clauses 2, 3, and 4 of this Article, they may choose a foreign currency as the currency unit in accounting for journal entries and bear responsibility for such selection before the law.

Clause 2. Enterprises base their determination of the currency unit in accounting on the following factors:

Point a) The currency unit that has the primary impact on the selling price of goods and services and is usually the currency unit used for pricing and payment thereof;

Point b) The currency unit that has the primary impact on labor costs, raw material costs, production costs, and other business costs and is usually the currency unit used for payment thereof.

Clause 3. In cases where enterprises cannot determine the currency unit in accounting based on the factors specified in Clause 2 of this Article, the following factors will also be considered for determining the currency unit in accounting of enterprises:

Point a) The currency unit used for raising financial resources (currency unit used when issuing debt instruments, capital instruments, etc.);

Point b) The currency unit regularly obtained from business activities and used for storage.

Clause 4. The currency unit in accounting reflects transactions, events, and conditions related to the operations of enterprises. Once the currency unit in accounting is determined, enterprises shall not change it unless there is a significant change in management and business activities leading to substantial changes in those transactions, events, and conditions.

Article 5. Changing the unit of currency in accounting

1. Principles for changing the unit of currency in accounting

When there is a significant change in management and business operations leading to the current unit of currency used by the enterprise in its accounting no longer satisfying the factors set out in Clauses 2, 3, and 4 of Article 4 of this Circular, the enterprise may change the unit of currency in its accounting, and such a change shall only be implemented at the beginning of a new fiscal year.

2. Principles for preparing financial statements when changing the unit of currency in accounting

a) In the first accounting period following the change, the enterprise shall convert the balances of all accounts on the accounting books and the Financial Position Report to the new unit of currency in accounting based on the average inter-bank buying and selling rate (the arithmetic mean between the inter-bank buying rate and the inter-bank selling rate) of the commercial bank where the enterprise frequently conducts transactions (the commercial bank with which the enterprise has a higher frequency or value of transactions compared to others) on the date of the change in the unit of currency in accounting.

b) For comparative information (previous period column) in the Income Statement and Cash Flow Statement, the enterprise shall apply the average inter-bank buying and selling rate of the commercial bank where the enterprise frequently conducts transactions in the previous period immediately preceding the change period.

c) The enterprise must disclose in the Notes to the Financial Statements the reasons for changing the unit of currency in accounting and any impacts on the Financial Statements due to the change in the unit of currency in accounting.

Article 6. Accounting work when the enterprise selects a unit of currency in accounting other than the Vietnamese Dong

1. Legal financial statements that the enterprise publishes to the public and submits to competent authorities in Vietnam are financial statements presented in Vietnamese Dong. Therefore, the enterprise must convert financial statements from the unit of currency in accounting to Vietnamese Dong according to the guidelines set forth in Clause 3 of this Article, except where otherwise provided by law.

2. Where the law requires that the financial statements of the enterprise be audited by an independent auditing organization, the audited financial statements are those presented in Vietnamese Dong.

3. Method for converting foreign currency financial statements to Vietnamese Dong

a) When converting foreign currency financial statements to Vietnamese Dong, the enterprise must convert the indicators of the financial statements according to the following principles:

- Assets and liabilities are converted to Vietnamese Dong based on the average inter-bank buying and selling rate of the commercial bank where the enterprise frequently conducts transactions at the end of the accounting period;

- Shareholders' equity (contributed capital, capital surplus, other capital, bond conversion options) is converted to Vietnamese Dong based on the actual transaction rate on the date of capital contribution;

- Revaluation gains or losses are converted to Vietnamese Dong based on the actual transaction rate on the revaluation date;

- Undistributed post-tax profit and reserves derived from undistributed post-tax profit generated in each period are converted to Vietnamese Dong by calculating according to the items of the Income Statement. Remaining undistributed post-tax profit must be converted to Vietnamese Dong based on the book rate of the undistributed post-tax profit item;

- Items belonging to the Income Statement and Cash Flow Statement are converted to Vietnamese Dong based on the actual transaction rate at the time of transaction occurrence. If the average exchange rate of the accounting period approximates the actual transaction rate at the time of transaction occurrence (the difference does not exceed the spot exchange rate spread as prescribed by the State Bank of Vietnam), the average exchange rate of the accounting period may be applied (if chosen).

b) Accounting treatment of exchange differences arising from the conversion of foreign currency financial statements to Vietnamese Dong.

Exchange differences arising from the conversion of foreign currency financial statements to Vietnamese Dong are recorded under the "Exchange Differences" indicator within the shareholders' equity section of the Financial Position Report.

c) When converting foreign currency financial statements to Vietnamese Dong, the enterprise must clearly disclose in the Notes to the Financial Statements the impacts on the financial statements resulting from the conversion of financial statements from foreign currency to Vietnamese Dong.

Article 7. Accounting organization and accounting work at affiliated units of enterprises

1. An affiliated unit is a dependent unit as prescribed by business law.

2. The enterprise has the responsibility to organize the accounting structure and decides on accounting work for affiliated units in accordance with the characteristics of production and business activities, management requirements of the enterprise itself, and not contrary to the provisions of the law.

3. The organization of the accounting structure and accounting recording work at affiliated units of enterprises shall be carried out as follows:

a) The enterprise has the right to delegate to affiliated units the recording of capital provided by the enterprise to the affiliated unit as payable debt or owner's equity, recording or non-recording of revenue, cost when circulating products, goods, services among internal stages, regardless of the form of accounting vouchers (invoices or internal circulation vouchers), consistent with the model and management requirements of the enterprise's production and business activities;

b) The enterprise has the right to delegate to affiliated units the preparation of Financial Statements or not to prepare Financial Statements. However, the Financial Statement of the enterprise submitted to competent authorities or disclosed according to regulations must include financial information of both the headquarters and affiliated units of the enterprise, regardless of whether the enterprise delegates or does not delegate the preparation of Financial Statements to affiliated units.

Chapter II

ACCOUNTING VOUCHERS 

Article 8. General Provisions on Accounting Vouchers

Accounting vouchers of enterprises must be implemented in accordance with the provisions of the Accounting Law, guiding documents of the Accounting Law, and documents amending, supplementing, or replacing it.

Article 9. System of Accounting Voucher Formats

1. Enterprises refer to and apply the system of accounting voucher formats set forth in Appendix I attached hereto.

2. In cases where it is necessary to adapt to the characteristics of production and business activities and management requirements, enterprises may design additional or modify, supplement accounting voucher formats compared to the guidance formats in Appendix I attached hereto. When designing additional or modifying, supplementing accounting voucher formats, enterprises must ensure compliance with the provisions of Article 16 of the Accounting Law and must fully, timely, truthfully, transparently reflect assets and sources of funds of the enterprise, easy to check, control, and reconcile.

When designing additional or modifying, supplementing accounting voucher formats, enterprises have the responsibility to issue Accounting Recording Regulations (or equivalent documents) regarding the modified and supplemented contents as a basis for implementation. The regulation must clearly state the necessity of such modifications and supplements and the enterprise's responsibilities under the law regarding the modified and supplemented contents.

In cases where enterprises do not design additional or modify, supplement accounting voucher formats, they shall apply the system of accounting vouchers guided in Appendix I attached hereto.

3. Where enterprises generate vouchers subject to other laws, accounting vouchers must be prepared in accordance with the provisions of those laws.

Article 10. Establishment, signing, and control of accounting vouchers

1. All economic and financial transactions related to the business activities of enterprises must establish accounting vouchers. An accounting voucher shall be established only once for each economic and financial transaction.

2. The establishment and signing of accounting vouchers shall be carried out in accordance with the Accounting Law, guiding documents of the Accounting Law, guidance provided in this Circular, and other amending, supplementing, or replacing documents.

3. The classification of signatures on accounting vouchers of enterprises must comply with legal provisions, management requirements, internal governance regulations to ensure strict control, asset safety, and capital sources of the enterprise, and to determine the responsibility of individuals involved.

4. The Chief Accountant (or a person authorized by the Chief Accountant) shall not sign on behalf of the management or operational personnel of the enterprise on accounting vouchers, except where otherwise provided by law.

Chapter III

ACCOUNTS

Article 11. System of accounting accounts

1. Enterprises shall apply the system of accounting accounts set forth in Appendix II issued together with this Circular to record accounting entries for economic transactions occurring at the enterprise.

2. In cases where it is necessary to adapt to the characteristics of production and business operations and management requirements, enterprises may amend, supplement the names, numbers, structures, and contents reflected in the accounting accounts guided in Appendix II issued together with this Circular. Such amendments and supplements must ensure classification and systematization of arising transactions according to their economic content, without duplication of objects, compliance with accounting principles as prescribed, and without altering or affecting the indicators and information presented in Financial Statements.

When amending, supplementing the names, numbers, structures, and contents reflected in the accounting accounts, enterprises have the responsibility to issue Accounting Regulation (or equivalent documents) regarding the amended and supplemented contents as a basis for implementation. The regulation must clearly state the necessity of such amendments and supplements and the enterprise's responsibilities under the law for the amended and supplemented contents.

In cases where enterprises do not amend or supplement the names, numbers, structures, and contents reflected in the accounting accounts, they shall apply the system of accounting accounts guided in Appendix II issued together with this Circular.

3. This Circular only provides guidance on the content and methods of accounting for certain main economic transactions. In cases where enterprises have economic transactions that have not been guided in this Circular, enterprises shall base their actions on the nature and content of the economic transactions, the Accounting Law, guiding documents of the Accounting Law, Vietnamese Accounting Standards, and the principles provided in this Circular.

Chapter IV

ACCOUNTING LEDGERS 

Article 12. Accounting Books

1. The accounting books of enterprises must be implemented strictly in accordance with the Accounting Law, guiding documents of the Accounting Law, and other amending, supplementing, or replacing documents.

2. Enterprises may refer to and apply the accounting book formats set forth in Appendix III issued together with this Circular.

In cases where it is necessary to adapt to the characteristics of production and business operations and management requirements, enterprises may design additional or amend, supplement accounting book formats compared to the formats guided in Appendix III issued together with this Circular. When designing additional or amending, supplementing accounting book formats, enterprises must ensure compliance with the provisions of Articles 1, 2, 3, and 4 of Article 24 of the Accounting Law and must reflect fully, promptly, truthfully, transparently, easily verifiable, and reconcilable assets and capital sources of the enterprise.

When designing additional or amending, supplementing accounting book formats, enterprises have the responsibility to issue Accounting Regulation (or equivalent documents) regarding the amended and supplemented contents as a basis for implementation. The regulation must clearly state the necessity of such amendments and supplements and the enterprise's responsibilities under the law for the amended and supplemented contents.

In cases where enterprises do not design additional or amend, supplement accounting book formats, they shall apply the accounting book formats guided in Appendix III issued together with this Circular.

Article 13. Opening, Recording, and Closing Accounting Books

1. Opening: Accounting books must be opened at the beginning of the accounting year. For newly established enterprises, accounting books must be opened from the date of establishment.

2. Recording: Enterprises must record accounting books based on accounting vouchers according to the provisions of the Accounting Law and related amending, supplementing, or replacing documents. Accounting books must be recorded promptly, clearly, and fully in accordance with the contents of the books. Information and figures recorded in accounting books must be accurate and truthful, consistent with accounting vouchers.

3. Closing: Enterprises must close accounting books at the end of the accounting period to prepare Financial Statements and in other cases as prescribed by law.

Chapter V

FINANCIAL STATEMENTS 

Article 14. Purpose of Financial Statements

1. Financial statements are used to provide information about the financial status, business results, and cash flows of the enterprise, meeting the management requirements of the enterprise's owners, competent authorities, and the needs of users of financial statements in making economic decisions. Financial statements must provide information about an enterprise regarding:

a) Assets;

b) Accounts payable;

c) Shareholders' equity;

d) Revenue, other income, production and business expenses, and other expenses;

đ) Profit, loss, and distribution of business results;

e) Cash flows.

2. In addition to the information stipulated in Clause 1 of this Article, enterprises must also provide additional information in the "Explanation of Financial Statements" to further explain the indicators reflected in the financial statements and the accounting policies applied to record economic transactions, prepare, and present financial statements of the enterprise.

Article 15. Period for Preparing Financial Statements

1. Annual Financial Statement Preparation Period: Enterprises must prepare annual financial statements in accordance with the provisions of the Accounting Law.

2. Mid-Year Financial Statement Preparation Period: Mid-year financial statements include quarterly financial statements (including quarter IV) and semi-annual financial statements (six-month financial statements).

3. Other Financial Statement Preparation Periods

a) Enterprises prepare financial statements for other accounting periods (such as monthly financial statements, etc.) as required by law, by the parent company, or by the owner.

b) Enterprises that are divided, merged, consolidated, converted to another type of enterprise, dissolved, or declared bankrupt must prepare financial statements at the time of division, merger, consolidation, conversion to another type of enterprise, dissolution, or bankruptcy as prescribed by law.

Article 16. Objectives and Responsibilities for Preparing Financial Statements

1. Objectives for Preparing Financial Statements

All enterprises in all sectors and economic components must prepare full annual financial statements in accordance with Appendix IV issued together with this Circular. The preparation of mid-year financial statements and financial statements for other accounting periods shall be carried out in accordance with relevant laws or management requirements of the unit. If relevant laws require enterprises to prepare mid-year financial statements but do not specify the type of mid-year financial statement, enterprises may choose to prepare either a full or summarized mid-year financial statement.

2. Enterprises with subordinate units must consolidate the financial information of the headquarters and subordinate units into the enterprise's financial statements, excluding all internal transactions between the headquarters and subordinate units or among subordinate units. In this case, the headquarters and subordinate units of the enterprise are not required to prepare their own financial statements, except where otherwise required by law.

3. The preparation and presentation of consolidated annual financial statements and consolidated mid-year financial statements shall be carried out in accordance with the law on consolidated financial statements.

4. The preparation and signing of financial statements shall be carried out in accordance with the Accounting Law, guiding documents for the Accounting Law, and related amending, supplementing, or replacing documents. In cases where enterprises hire accounting service businesses to perform services for preparing and presenting financial statements and acting as chief accountants, the preparer and chief accountant sections of the enterprise's financial statements must clearly state the accounting service practitioner's license number and the name of the accounting service provider as prescribed.

Article 17. Financial Reporting System of Enterprises

1. The financial reporting system includes:

- Financial Position Report;

- Business Results Report;

- Cash Flow Statement;

- Notes to Financial Statements;

2. Annual Financial Reports:

a) Annual Financial Reports for enterprises meeting the going concern assumption include:

b) Annual Financial Reports for enterprises not meeting the going concern assumption include:

3. Interim Financial Reports include:

a) Full Interim Financial Reports, including:

b) Condensed Interim Financial Reports, including:

4. The formats of Annual Financial Reports and Interim Financial Reports (full and condensed) are provided in Appendix IV issued together with this Circular. Indicators without data are exempted from being presented on Financial Statements, enterprises shall renumber the items continuously within each section but shall not change the "Indicator Code".

Article 18. Amending and Supplementing Financial Statements

1. Enterprises apply the Financial Reporting System set out in Appendix IV issued together with this Circular to prepare and present Financial Statements of the entity.

In cases where it is necessary to adapt to the characteristics of production and business activities and management requirements, enterprises may supplement additional indicators of Financial Statements guided in Appendix IV issued together with this Circular. Such supplementation must comply with the provisions of Clause 1 and 2 of Article 29 of the Accounting Law and follow the principles of preparing and presenting Financial Statements guided in this Circular. Enterprises must explain on Financial Statements about the contents supplemented compared to the Financial Statement formats guided in Appendix IV issued together with this Circular.

When supplementing additional indicators of Financial Statements, enterprises have the responsibility to issue Accounting Regulations (or equivalent documents) regarding the supplementary contents to serve implementation purposes. The regulations must clearly state the necessity of such supplementation and the enterprise's responsibilities under the law regarding the supplementary contents.

If enterprises do not supplement additional indicators of Financial Statements, they shall apply the Financial Statement formats guided in Appendix IV issued together with this Circular.

2. In cases where enterprises have specific characteristics leading to inability to supplement or need to amend the indicators of Financial Statements guided in Appendix IV issued together with this Circular, they shall report to the Ministry of Finance for guidance on preparing and presenting Financial Statements.

Article 19. Requirements for Information Presented on Financial Statements

1. Information presented on Financial Statements must reflect truthfully and reasonably the financial position, business results, cash flows, and other financial information of enterprises. The information on Financial Statements must ensure completeness, objectivity, and absence of errors.

- Information is considered complete when Financial Statements include all necessary information to help users understand the nature, form, and risks of transactions and events. For certain items, completeness also requires additional descriptions of information about quality, factors, and situations that may affect the quality and nature of the item.

- Objective information is information presented without bias, ensuring neutrality, accuracy with reality, free from distortion, and not altering the degree of impact of financial information in favor of or against the interests of Financial Statement users.

- Absence of errors means Financial Statements do not omit, mistake, or fraudulently describe phenomena, choose, apply, and provide reporting information. Absence of errors does not mean absolute accuracy in all aspects. An estimate presentation is considered error-free if the nature and limitations of the estimation process are clearly explained and described, and there are no errors in selecting appropriate figures during the estimation process.

2. Financial information must be suitable to help Financial Statement users predict, analyze, and make economic decisions.

3. Financial information must be fully disclosed on all significant aspects. Information is considered significant if its omission or error could materially misstate Financial Statements, affecting the economic decisions of Financial Statement users. The level of significance depends on the size or nature or both the size and nature of the omissions or errors evaluated in specific circumstances.

4. Information must ensure verifiability, timeliness, and understandability.

5. Financial information must be consistently presented, comparable between accounting periods and among enterprises. When enterprises change the principles of preparing and presenting Financial Statements from meeting the going concern assumption to not meeting it or vice versa, enterprises must disclose in the Notes to Financial Statements the nature, figures, and reasons for reclassifying comparative indicators and items of Financial Statements to ensure comparability with the current period (unless this cannot be done).

Article 20. Principles for the Preparation and Presentation of Financial Statements of Enterprises to Meet the Going Concern Assumption

1. The preparation and presentation of financial statements must comply with the provisions of Accounting Standard No. 21 - Presentation of Financial Statements and other relevant Vietnamese Accounting Standards. Important information must be explained to help readers understand the true financial situation of the enterprise.

2. Financial statements must reflect the economic substance of transactions and events rather than their legal form (substance over form).

3. Assets shall not be recorded at a value higher than the recoverable amount; liabilities shall not be recorded at a value lower than the obligation to pay.

4. Classification of assets and liabilities: Assets and liabilities on the Balance Sheet must be presented as short-term and long-term, with items arranged in descending order of liquidity.

a) An asset is classified as short-term if it falls under any of the following circumstances:

(i) The enterprise expects to recover the asset or plans to sell or use the asset within a normal operating cycle;

(ii) The enterprise holds the asset primarily for trading purposes;

(iii) The enterprise expects to recover the asset within a period of up to 12 months from the end of the accounting period;

(iv) The asset is cash or cash equivalents, except when such an asset is prohibited from being exchanged or used to settle a liability due more than 12 months from the end of the accounting period.

Assets that are not classified as short-term according to the above guidance shall be classified as long-term assets.

b) A liability is classified as short-term if it falls under any of the following circumstances:

(i) The enterprise expects to settle the liability within a normal operating cycle;

(ii) The enterprise holds the liability primarily for business purposes;

(iii) The liability is due for settlement within a period of up to 12 months from the end of the accounting period;

(iv) The enterprise does not have the right to defer the obligation to settle the liability (such as loans, borrowed funds, finance leases due for payment, including cases where the liability will be settled by issuing capital instruments at the option of the counterparty) at any time within a period of up to 12 months from the end of the accounting period.

Liabilities (such as accounts payable to suppliers, employee expenses payable, and other expenses payable for business operations) that are part of working capital used in a normal operating cycle must be classified as short-term liabilities even if the enterprise has an obligation to settle these liabilities within a period exceeding 12 months from the end of the accounting period.

Liabilities that are not classified as short-term according to the above guidance shall be classified as long-term liabilities.

For short-term liabilities classified as such, if the following events occur between the end of the accounting period and the date of issuance of the financial statements, these events are subsequent events that do not require adjustment:

- Agreement to extend a short-term liability to a long-term liability;

- Rectification of breaches in agreements concerning long-term liabilities; and

- Creditors granting a grace period to rectify breaches in agreements concerning long-term liabilities of at least 12 months after the end of the accounting period.

At the same time, the enterprise must disclose these subsequent events in the Notes to the Financial Statements in accordance with the regulations.

c) In the case where the enterprise chooses to classify assets and liabilities when presenting the Balance Sheet according to a normal operating cycle, the enterprise must explain the expected recovery or payment value within a period of more than 12 months for each line item of assets and liabilities when these items include expected recovery or payment values:

(i) within 12 months from the end of the accounting period, and

(ii) more than 12 months from the end of the accounting period.

At the same time, the normal operating cycle applied to classify assets and liabilities of the enterprise must be consistent. For enterprises with an indeterminate normal operating cycle, the enterprise's operating cycle is still considered to be 12 months.

d) When preparing financial statements, the enterprise must reclassify long-term assets and liabilities from the previous period as short-term assets and liabilities in this period if, from the end of the accounting period, those assets or liabilities meet the conditions for short-term assets or short-term liabilities as stipulated in points a and b of this clause, except for cases that are not subject to reclassification according to the guidance in this Circular.

5. Assets and liabilities must be presented separately. The enterprise may only offset assets and liabilities when they relate to the same party, have a quick turnover, a short maturity, arise from similar transactions and events.

6. Revenue, income, and related direct expenses for generating such revenue and income must be presented in accordance with appropriate principles and ensure prudence. The Income Statement and Cash Flow Statement reflect revenue, income, expenses, and cash flows of the reporting period. If significant errors in the financial statements of previous periods are discovered, they must be retrospectively adjusted in accordance with the regulations.

7. In the case where the enterprise has affiliated units, the enterprise's financial statements must consolidate financial information from both the headquarters and affiliated units, internal balances of the Balance Sheet, revenues, expenses, unrealized gains, and losses arising from internal transactions must all be eliminated.

Article 21. Principles for Preparing and Presenting Financial Statements when Changing Accounting Periods

When changing accounting periods, for example, if a business changes its accounting period from the calendar year to another period within the calendar year, the business must close its accounting books, prepare financial statements according to the following principles:

1. The change in accounting periods must comply with the provisions of the Accounting Law. When changing the annual accounting period, the enterprise must prepare separate financial statements for the interim period between the two accounting periods of the old fiscal year and the new fiscal year.

2. For the Financial Position Statement: All balances of assets, liabilities, and equity at the end of the accounting period before the change are recorded as the opening balance of the new accounting period and presented in the "Beginning of Year" column.

3. For the Income Statement and Cash Flow Statement for the accounting period from the end of the previous accounting period to the date of changing the accounting period: Data from the end of the previous accounting period to the date of changing the accounting period are presented in the "Current Period" column. The "Prior Period" column presents corresponding data from the previous accounting period or twelve months' data on the Financial Statements of the immediately preceding fiscal year.

4. The enterprise must clearly explain:

a) The reasons for changing the end date of the annual accounting period;

b) Corresponding figures for comparison presented in the Income Statement, Cash Flow Statement, and the relevant section of the Notes to the Financial Statements, where the "Prior Period" figures on the Income Statement and Cash Flow Statement of this period are from the twelve-month fiscal year immediately preceding, the enterprise must explain the non-comparability of information in the reporting period with comparative period information in accordance with Vietnamese Accounting Standard No. 21 - Presentation of Financial Statements.

Article 22. Principles for Preparing and Presenting Financial Statements when Changing Business Forms

When changing business forms, enterprises must close their accounting books and prepare financial statements in accordance with the law. In the first accounting period after changing the business form, the enterprise must record in the accounting books and present financial statements according to the following principles:

1. For accounting records reflecting assets, liabilities, and equity: All balances of assets, liabilities, and equity on the accounting records of the old enterprise before the change are recorded as the opening balance on the accounting records of the new enterprise.

2. For the Financial Position Statement: All balances of assets, liabilities, and equity inherited from the old enterprise before the change are recorded as the opening balance of the new enterprise and presented in the "Beginning of Year" column.

3. For the Income Statement and Cash Flow Statement: Data from the date of change to the end of the first reporting period are presented in the "Current Period" column. The "Prior Period" column presents cumulative data from the beginning of the reporting year to the date of changing the business form, and the enterprise must clearly explain the reasons for the non-comparability of information in the reporting period with comparative period information in accordance with Vietnamese Accounting Standard No. 21 - Presentation of Financial Statements.

Article 23. Principles for preparing and presenting Financial Statements when merging, splitting, consolidating, or integrating enterprises

1. General principles

a) In the case of enterprise integration

a1) When integrating enterprises, the enterprises (the enterprise receiving integration, the enterprise being integrated) must comply with the provisions of the Enterprise Law and other relevant laws.

a2) The determination of the net asset value that the enterprise receiving integration receives from the enterprise being integrated shall be carried out as follows:

(i) In the case where the enterprise integration transaction satisfies business operations as defined in Accounting Standard Vietnam No. 11 - Business Combination simultaneously with the enterprise integration being carried out between enterprises under common control, the enterprise receiving integration shall record in its accounting books the assets and liabilities received from the enterprise being integrated according to their book values on the separate financial statements of the enterprise being integrated at the time of integration.

(ii) In the case where the enterprise integration transaction satisfies business operations as defined in Accounting Standard Vietnam No. 11 - Business Combination simultaneously with the enterprise integration being carried out between enterprises not under common control, the enterprise receiving integration shall record the assets and liabilities received from the enterprise being integrated according to the purchase method as stipulated in Accounting Standard Vietnam No. 11 - Business Combination.

(iii) In the case where the enterprise integration transaction does not satisfy business operations as defined in Accounting Standard Vietnam No. 11 - Business Combination, the enterprise receiving integration shall record the assets and liabilities received from the enterprise being integrated as if purchasing a group of assets or net assets.

a3) Determining the cost to implement the enterprise integration transaction

(i) In the case where the enterprise receiving integration uses investments in subsidiaries, joint ventures, associates, other investments, or pays additional money, or uses non-monetary assets such as inventory, fixed assets, investment real estate, etc., or issues capital instruments to pay other investors when implementing the enterprise integration transaction, the determination of the value of these investments, non-monetary assets, or issued capital instruments of the enterprise receiving integration shall be carried out as follows:

- In the case where the enterprise integration transaction satisfies business operations as defined in Accounting Standard Vietnam No. 11 - Business Combination: The determination of the value of the non-monetary assets exchanged, the liabilities already incurred, and the capital instruments issued to implement the enterprise integration transaction shall be carried out as guided in Accounting Standard Vietnam No. 11 - Business Combination.

- In the case where the enterprise integration transaction does not satisfy business operations as defined in Accounting Standard Vietnam No. 11 - Business Combination: The enterprise receiving integration shall use the fair value of the assets and receivables received on the exchange date as the preferred value to determine the payment value of the non-monetary assets taken away or capital instruments issued for the enterprise integration transaction. If the fair value of the assets and receivables received on the exchange date cannot be determined or is not reliable, it shall be based on the fair value of the assets taken away to carry out the enterprise integration transaction or the value proven by other evidence and calculations to be more reliable. Any difference (if any) between the issue price of the shares and the par value of the shares shall be reflected in the surplus capital. Any difference (if any) between the fair value and the book value of inventory, fixed assets, investment real estate, etc., shall be recorded in the current period's operating results similar to the sale or exchange transactions of these assets.

If the payment price is determined collectively for multiple non-monetary assets exchanged, based on the understanding of both parties on the transaction date, the enterprise receiving integration shall determine the selling price for each asset taken away and exchanged systematically (such as allocation based on book value, fair value of the assets taken away and exchanged on the exchange date, etc.).

Both parties must comply with the relevant legal regulations in determining the value of non-monetary assets taken away to implement the enterprise integration transaction. A revaluation of the book value of non-monetary assets taken away to implement the enterprise integration transaction can only be conducted when there is solid and reliable evidence proving that the market value of these non-monetary assets at the time of taking away differs from their book value. The parties involved in the enterprise integration transaction and related parties shall bear legal responsibility for intentionally mispricing or incorrectly determining the value of non-monetary assets taken away to implement the enterprise integration transaction.

(ii) The enterprise receiving integration must stop recognizing the assets that the unit must take away or spend to implement the enterprise integration transaction, such as investments in subsidiaries, joint ventures, associates, other investments, issuance of capital instruments, cash, non-monetary assets, or other benefits, etc., according to their book values on the separate financial statements of the enterprise receiving integration. This book value is determined by deducting loss provisions from the original cost or by subtracting accumulated depreciation from the original cost of fixed assets, investment real estate.

a4) Accounting principles for the difference between the cost to implement the enterprise integration transaction (value of assets or benefits that the enterprise receiving integration must give up or decrease) and the net asset value received from the enterprise being integrated in the case where the enterprise integration transaction satisfies business operations as defined in Accounting Standard Vietnam No. 11 - Business Combination:

(i) In case the merger transaction is carried out between parties under common control, the difference between the transaction merger fee price and the book value of net assets on the individual financial statements of the merged enterprise shall be fully recorded in Account 4118 - Other Capital and periodically transferred to Account 421 - Undistributed Profit After Tax on the accounting books of the receiving enterprise within a period not exceeding ten years, starting from the date of enterprise merger according to the straight-line method or another more reasonable method.

(ii) In case the merger transaction is carried out between parties not under common control, the difference between the transaction merger fee price and the fair value of net assets that can be determinedshall be entitled to be grantedon the individual financial statements of the merged enterprise shall be accounted for as trade advantages or disadvantages arising from the business combination transaction in accordance with Vietnam Accounting Standard No. 11 - Business Combinations.

a5) In the case of enterprise mergers involving internal transactions related to the purchase and sale of goods, services, fixed assets, etc., after receiving the net assets of the subsidiary, the parent company must eliminate these internal transactions before preparing and presenting the individual financial statements of the parent company for the accounting period during which the enterprise merger takes place.

a6) The determination of tax liabilities related to internal transactions involving the purchase and sale of goods, services, fixed assets, etc., during enterprise mergers shall be carried out in accordance with tax laws. Deferred corporate income tax related to temporary differences between the net asset value and the tax base of net assets (which may arise due to unrealized gains/losses from internal transactions) shall be recorded by the receiving enterprise in accordance with Vietnam Accounting Standard No. 17 - Corporate Income Tax.

a7) For cases of enterprise mergers that do not fall under the above situations, enterprises shall base their accounting entries on the principles stipulated in the Vietnam Accounting Standards system, the guidelines provided in this Circular, and the nature of the merger transaction to ensure appropriate accounting treatment.

b) As for the case of division, separation, or consolidation of enterprises

b1) When dividing, separating, or consolidating enterprises, the enterprises (new enterprises and enterprises being divided, separated, or consolidated) must comply with the provisions of the Enterprise Law and other relevant laws.

b2) The determination of the net asset value received by new enterprises from enterprises being divided, separated, or consolidated shall be carried out as follows:

(i) In the case of enterprise consolidation:

- If the consolidation transaction satisfies the definition of a business combination as defined in Vietnam Accounting Standard No. 11 - Business Combinations and the consolidation is carried out between enterprises under common control, the new enterprise shall record in its accounting books the assets and liabilities received from the consolidated enterprise at their book values on the individual financial statements of the consolidated enterprise at the time of consolidation.

- If the consolidation transaction satisfies the definition of a business combination as defined in Vietnam Accounting Standard No. 11 - Business Combinations and the consolidation is carried out between enterprises not under common control, the new enterprise shall record the assets and liabilities received from the consolidated enterprise according to the purchase method as specified in Vietnam Accounting Standard No. 11 - Business Combinations.

- If the consolidation transaction does not satisfy the definition of a business combination as defined in Vietnam Accounting Standard No. 11 - Business Combinations, the enterprise shall record the assets and liabilities received from the consolidated enterprise as if purchasing a group of assets or net assets.

(ii) In the case of enterprise division or separation: The new enterprise shall record in its accounting books the net asset value received from the divided or separated enterprise at their book values on the individual financial statements of the divided or separated enterprise at the time of division or separation.

b3) In the case where new enterprises issue capital instruments to carry out division, separation, or consolidation transactions, the new enterprise shall use the fair value of the assets and liabilities received on the date of exchange as the priority value to determine the fair value of the capital instrument, except when determining the value of the issued capital instrument for the purpose of calculating the merger fee in business combinations, the enterprise shall follow the guidance provided in Vietnam Accounting Standard No. 11 - Business Combinations. If the fair value of the assets and liabilities received on the date of exchange cannot be determined or is not reliable, the fair value of the capital instrument is the market price quoted on the stock exchange. If there is no market price for the capital instrument, it shall be based on the value proven to be more reliable through other evidence and calculations. The difference between the issue price of the shares and their par value shall be reflected in the share premium.

b4) For cases of division, separation, or consolidation of enterprises that do not fall under the above situations, enterprises shall base their accounting entries on the principles stipulated in the Vietnam Accounting Standards system, the guidelines provided in this Circular, and the nature of the division, separation, or consolidation transaction to ensure appropriate accounting treatment.

c) The division, separation, consolidation, or merger of state-owned enterprises, if there are different provisions from the principles stipulated in this Article, shall be carried out in accordance with the laws applicable to state-owned enterprises.

2. The accounting records and preparation of financial statements of the involved enterprises when dividing, separating, consolidating, or merging enterprises shall be carried out according to the following principles:

a) Regarding the accounting records reflecting assets, liabilities, and equity:

a1) The portion of asset value, liabilities, and equity received from the absorbed enterprise shall be recorded as arising during the period on the accounting books of the absorbing enterprise. The opening balance line of assets, liabilities, and equity on the accounting books of the absorbing enterprise shall not change.

a2) The portion of asset value, liabilities, and equity received from the consolidated enterprise shall be recorded as arising during the period on the accounting books of the new enterprise. The opening balance line of assets, liabilities, and equity on the accounting books of the new enterprise shall have no figures.

a3) The portion of asset value, liabilities, and equity on the accounting books of the divided enterprise transferred to the new enterprise shall be recorded as arising on the accounting books of the new enterprise. The opening balance line of assets, liabilities, and equity on the accounting books of the new enterprise shall have no figures.

a4) The portion of asset value, liabilities, and equity of the separated enterprise transferred to the new enterprise shall be recorded as arising on the accounting books of the new enterprise. The opening balance line of assets, liabilities, and equity on the accounting books of the new enterprise shall have no figures. The opening balance line of assets, liabilities, and equity on the accounting books of the separated enterprise shall not change.

b) As for the Financial Position Report:

b1) The portion of asset value, liabilities, and equity received from the absorbed enterprise shall be consolidated by the absorbing enterprise and presented in the "End-of-Year" column of the Financial Position Report. The "Beginning-of-Year" column of the absorbing enterprise shall not change.

b2) The portion of asset value, liabilities, and equity received from the consolidated enterprise shall be consolidated by the new enterprise and presented in the "End-of-Year" column of the Financial Position Report. The "Beginning-of-Year" column of the new enterprise shall have no figures.

b3) The portion of inherited asset value, liabilities, and equity of the divided or separated enterprise shall be consolidated by the new enterprise and presented in the "End-of-Year" column of the Financial Position Report. The "Beginning-of-Year" column of the new enterprise shall have no figures. The "Beginning-of-Year" column of the separated enterprise shall not change.

c) As for the Income Statement and Cash Flow Statement:

c1) The absorbing enterprise shall only record and present the financial data of the absorbed enterprise in its own Income Statement and Cash Flow Statement from the absorption date to the end of the reporting period in the "Current Year" column. The "Prior Year" column of the absorbing enterprise shall not change.

c2) The new enterprise shall only present financial data from the division, separation, or consolidation date to the end of the first reporting period in the "Current Year" column. The "Prior Year" column of the new enterprise shall have no figures. The separated enterprise shall no longer record and present the financial data of the separated enterprise from the separation date to the end of the reporting period.

Article 24. Principles for Preparing and Presenting Financial Statements when the Enterprise Does Not Meet the Going Concern Assumption

1. When preparing and presenting Financial Statements, the enterprise must consider signs that it does not meet the going concern assumption of the entity. An enterprise is considered not to be operating continuously if it expects to be liquidated, bankrupted, cease operations, or significantly reduce its scale of operation within a period of up to twelve months from the end of the accounting period. The enterprise must disclose information about its continuous operation status when there are significant uncertainties that may cast substantial doubt on its ability to continue as a going concern.

2. In certain cases below, the enterprise can still be considered to be operating continuously and therefore does not need to prepare and present Financial Statements based on not meeting the going concern assumption:

- Changing the form of business, including the privatization of a state-owned enterprise into a joint-stock company;

- Being divided, separated, consolidated, or absorbed by another enterprise;

- Converting an enterprise (subsidiary) into a direct unit (branch) or vice versa.

3. When not meeting the going concern assumption, the enterprise must still prepare the following complete Financial Statements:

4. If the going concern assumption is no longer appropriate at the end of the accounting period, the enterprise must reclassify long-term assets and long-term liabilities as short-term assets and short-term liabilities, respectively, while the enterprise must reassess all assets and liabilities, except where a third party inherits rights over assets or obligations over liabilities at book value. The enterprise must record in the accounting books at the reassessed value before preparing the Financial Position Report.

5. The enterprise does not need to reassess assets and liabilities if a third party inherits rights over assets or obligations over liabilities under specific circumstances such as:

a) Each specific item of assets is guaranteed or secured for recovery by another party for the dissolved or bankrupt entity at book value and the recovery occurs before the entity officially ceases operations;

b) Each specific item of liabilities is guaranteed or secured for payment by a third party for the dissolved or bankrupt entity, and the dissolved or bankrupt entity only has the obligation to repay the third party at book value.

6. The revaluation shall be carried out for each type of asset and liability at the end of the accounting period according to the following principles:

a) For assets:

- Inventories, biological assets, long-term production costs, unfinished long-term business operations, equipment, materials, and long-term replacement parts shall be valued and recorded at the lower of cost or recoverable net amount;

- Tangible fixed assets, intangible fixed assets, investment real estate, and unfinished construction costs shall be valued and recorded at the lower of remaining book value or recoverable amount (the net realizable value minus estimated disposal costs). In the case of finance leased fixed assets with mandatory purchase clauses, they shall be revalued and recorded similarly to owned fixed assets; if returned to the lessor, they shall be revalued and recorded based on the remaining lease liability to the lessor;

- Trading securities shall be valued and recorded at fair value;

- Held-to-maturity investments, receivables, investments in subsidiaries, associates, and joint ventures, and other items shall be valued and recorded at the lower of carrying amount or recoverable amount (net selling price minus estimated selling costs);

b) For liabilities: If there is a written agreement between the parties regarding the amount payable, the revaluation shall be based on the agreed amount. In the absence of a specific agreement, the following shall apply:

- Monetary liabilities shall be revalued and recorded at the higher of carrying amount or the present value of the settlement amount as stipulated in the contract;

- Financial instrument liabilities shall be revalued and recorded at the higher of carrying amount or fair value of the financial instrument;

- Inventory liabilities shall be revalued and recorded at the higher of carrying amount or purchase cost (including directly related costs) or production cost of inventory;

- Fixed asset liabilities shall be revalued and recorded at the higher of carrying amount or purchase cost (including directly related costs) or remaining book value of the fixed asset;

c) Foreign currency monetary items shall be revalued at the average interbank buying and selling exchange rate applicable to the commercial bank where the enterprise regularly conducts transactions at the end of the accounting period. For balances of demand deposits in foreign currencies, enterprises must revalue them at the average interbank buying and selling exchange rate applicable to the commercial bank where the demand deposit account is opened;

7. Accounting methods for certain items when the going concern assumption is not met:

a) Provisions or impairment losses on assets shall be directly reduced from the carrying amount of the asset, without establishing provisions in Account 229 - Impairment Loss Provision;

b) Depreciation or impairment losses on fixed assets and investment real estate shall be directly reduced from the carrying amount of the asset, without using Account 214 - Depreciation of Fixed Assets to reflect accumulated depreciation;

8. When the going concern assumption is no longer appropriate, the enterprise must address the following financial issues:

- Pre-provisioning expenses for anticipated future losses should be recognized in determining operating results if the likelihood of such losses is reasonably certain and the loss amount can be reliably estimated; current liabilities should be recognized even if full documentation is not yet available (such as contractor's quantity acceptance certificates), provided payment is certain;

- Any cumulative revaluation surplus in equity shall be transferred to other income (if a gain) or other expense (if a loss);

- Any cumulative foreign exchange differences reflected in the financial statements shall be fully transferred to financial revenue (if a gain) or financial expense (if a loss);

- Unallocated deferred costs shall be fully recognized as part of the relevant production and business costs for the period, similar to the recognition method for ongoing enterprises;

- The parent company shall cease recognizing goodwill in consolidated financial statements, and unallocated goodwill shall be immediately recognized as management expense;

- Any gains or losses from revaluations of assets and liabilities after offsetting with established provisions shall be recognized in financial revenue, other income, or financial expense, depending on the specific item, similar to the recognition method for ongoing enterprises;

9. When preparing financial statements, if the going concern assumption is no longer appropriate, the enterprise must provide detailed explanations about its ability to generate cash and pay liabilities, and equity to shareholders, while reclassifying comparative figures in the first financial statement period where the going concern assumption is not met (unless this is not feasible) to ensure comparability with the reporting period and must disclose the nature, figures, and reasons for the reclassification. If it is not possible to reclassify corresponding comparative figures, the enterprise must clearly explain and justify why the information in the reporting period cannot be compared with the comparative period information, specifically as follows:

- The amount that can be recovered from the liquidation or sale of assets and the recovery of receivables;

- The ability to pay liabilities in priority order, such as paying government budget debts, employee debts, loans, supplier debts, etc.;

- The ability to pay equity holders, for listed companies, the ability of each share to receive a certain amount of money must be clearly disclosed;

- The time frame for settling liabilities and equity.

- Reasons for inability to compare information between the reporting period and the comparative period: In the previous period, the enterprise prepared Financial Statements based on the principle of satisfying the going concern assumption, but for the reporting period, the enterprise anticipates being dissolved, bankrupted, ceasing operations, or significantly reducing its scale of activities, thus presenting Financial Statements based on the principle of not satisfying the going concern assumption.

Article 25. Deadline for Submitting Financial Statements

Enterprises must submit annual Financial Statements to the competent authority no later than 90 days from the end of the accounting year.

Parent companies and holding companies must specify the deadline for submitting Financial Statements by subsidiaries and subordinate units for consolidation or aggregation of Financial Statements in accordance with current laws and management requirements.

For enterprises where relevant laws stipulate submission of Financial Statements for other accounting periods (quarterly, semi-annual...), the deadlines for these Financial Statements shall be implemented according to the relevant laws.

Article 26. Recipient of Financial Statements

1. The submission of Financial Statements by enterprises to the competent authority must be carried out in accordance with relevant laws.

2. For enterprises required by law to have their Financial Statements audited, when submitting Financial Statements to the competent authorities, they must attach the audit report as prescribed.

3. In cases where the Financial Statements of enterprises are stored in the National Enterprise Registration Information System, the recipients of the Financial Statements of enterprises are required to provide information about the Financial Statements of enterprises in accordance with the provisions of the law.

Article 27. Publicizing Financial Statements

1. Publicizing Financial Statements refers to the enterprise's disclosure of information about Financial Statements through one or more forms of publicizing as stipulated in Clause 3 of this Article to enable users such as shareholders, creditors, suppliers, investors, etc., to access the information contained in the Financial Statements of the enterprise.

2. Recipients of Publicized Information

Recipients of publicized Financial Statements are entities that are entitled to receive disclosed information about Financial Statements of enterprises in accordance with the Law on Enterprises and other related laws.

3. Forms of Publicizing

- Publishing in printed form: This is a method where the Financial Statements of the enterprise are printed into booklets to provide information to entities entitled to receive disclosed information in accordance with the Enterprise Law and other related laws. The enterprise must store this printed material as accounting documents of the enterprise.

- Written notification: This is a method where the enterprise sends a written notice accompanied by the Financial Statements of the enterprise to entities entitled to receive disclosed information about the Financial Statements of the enterprise in accordance with the Law on Enterprises and other related laws.

- Posting: This is a method where the Financial Statements of the enterprise are publicly posted at the headquarters of the enterprise to provide information to entities entitled to receive disclosed information about the Financial Statements of the enterprise in accordance with the Law on Enterprises and other related laws.

- Publishing on the enterprise’s website: This is a method where the Financial Statements of the enterprise are published on the enterprise’s website, clearly indicating the link to the Financial Statements of the enterprise.

- Other methods as prescribed by relevant laws.

4. The content and deadline for publicizing Financial Statements shall be implemented in accordance with the Accounting Law and related amendments, supplements, and replacements.

5. For enterprises required by law to have their Financial Statements audited, when publicizing Financial Statements, they must attach the audit report as prescribed.

Chapter VI

IMPLEMENTATION 

Article 28. Provisions on the use of accounting software

1. Enterprises may use accounting software to perform accounting work in accordance with the provisions of this Circular. The accounting software selected by the enterprise for use must meet at least the following professional and operational requirements regarding accounting:

a) Accounting processes and operations established on the software must ensure compliance with the regulations of accounting laws, tax laws, and other related laws, without changing the nature, principles, methods of accounting, and information and figures presented in accounting books and financial statements as prescribed.

b) Processing of accounting procedures and related information and figures must ensure accuracy and appropriateness, without duplication. When corrections are made, records of entries in the accounting books must be retained according to chronological order.

c) Information and data on the accounting software must ensure confidentiality and security and must comply with the regulations of laws on confidentiality and information security. The information system established must have the ability to warn or prevent intentional intervention that changes recorded information and figures.

d) Provide complete and timely output information and data as required by competent authorities and users of data and information.

đ) Possess the capability to connect or be ready to connect with related software when performing accounting tasks (electronic invoice software, digital signatures, etc.).

e) Possess the capability to upgrade, modify, and supplement in accordance with changes in accounting laws, tax laws, and other related laws.

2. Enterprise managers, chief accountants/accounting supervisors, and relevant persons must be responsible for the accuracy and honesty of accounting information and figures provided from accounting software.

Article 29. Conversion of balances on accounting books

1. Enterprises shall convert balances of the following accounts:

- Enterprises shall base on the balances of Detailed Accounts 111, 112, 113, 121, 153, 154, 156, 211, 212, 213 to transfer details in accordance with the management requirements of the enterprise (if applicable).

- Enterprises participating in capital contributions but not being the accountants for joint venture contracts, if at the time this Circular takes effect the joint venture contract has not ended, shall base on the detailed balance of Account 138 - Other Receivables (detailed value of capital contributed to the joint venture contract without joint control) to convert the balance to Account 2281 - Investment in Other Units in accordance with the nature and status of the enterprise in the joint venture contract as guided by this Circular.

- Enterprises shall base on the detailed amount of Account 2413 - Major Repairs of Fixed Assets regarding costs for upgrading and improving fixed assets that have not yet been completed to transfer to Account 2414 - Upgrading and Improving Fixed Assets.

- Enterprises shall base on the credit balance of Account 338 - Other Payables regarding dividends and profits payable to transfer to Account 332 - Dividends and Profits Payable.

- Enterprises shall base on the balance of Account 441 - Basic Construction Fund and the balance of Account 466 - Capital Formed into Fixed Assets to transfer to Account 4118 - Other Capital.

2. Other contents reflected in detail on related accounts that differ from this Circular must be adjusted in accordance with the provisions of this Circular.

Article 30. Transitional Provisions

1. Enterprises shall apply the following principles when there is a change in accounting policies:

a) In cases where enterprises must implement changes in accounting policies due to the first application of legal provisions or Vietnamese Accounting Standards and Accounting Regulations which have specific conversion guidelines (retrospective adjustment method, simple retrospective adjustment method, or non-retrospective adjustment method), they must follow those guidelines. Among them:

- The retrospective adjustment method or non-retrospective adjustment method shall be implemented in accordance with the provisions of Vietnamese Accounting Standard No. 29 - Changes in Accounting Policies, Estimates, and Errors.

- The simple retrospective adjustment method is a method that does not restate comparative figures from the first period affected but calculates cumulative effects at the beginning of the first accounting period of applying new accounting policies and adjusts corresponding asset and liability items to undistributed post-tax profit or other equity items at the beginning of the first accounting period of applying new accounting policies.

b) In cases where enterprises must implement changes in accounting policies due to the first application of legal provisions or Vietnamese Accounting Standards and Accounting Regulations which do not require retrospective adjustment or simple retrospective adjustment, the non-retrospective adjustment method for such accounting policies may be applied.

c) In cases where enterprises voluntarily change accounting policies, they must apply retrospective adjustment for such changes in accounting policies.

2. Enterprises that are investors purchasing bonds with accrued discounts or premiums, if at the time this Circular takes effect the bonds have not reached their maturity date, may choose to apply the retrospective adjustment method or simple retrospective adjustment method as guided in Clause 1 of this Article to account for bond discounts or premiums arising when purchasing bonds for the first financial report applying this Circular.

3. In cases where enterprises have exchange rate differences arising when converting accounting currency from Vietnamese Dong to another accounting currency and vice versa, which have been reflected in the credit or debit balance of Account 412 - Revaluation Gains and Losses and presented on the Balance Sheet, the credit or debit balance of Account 412 - Revaluation Gains and Losses shall be transferred to Account 421 - Undistributed Post-Tax Profit (Account 4211) simultaneously, while clearly presenting in the Notes to Financial Statements the reasons and impacts on the Financial Statements.

4. In case enterprises are currently implementing the advance deduction of major repair costs for fixed assets but when this Circular takes effect, the major repair activities for fixed assets have not been carried out, enterprises shall not continue to implement the advance deduction of major repair costs for fixed assets. When the major repair activities for fixed assets are carried out, enterprises shall transfer the actual incurred major repair costs for fixed assets with the amount already deducted in advance. The difference between the amount of advance-deducted major repair costs and the actual incurred costs shall be gradually allocated to production and business expenses for each period.

Article 31. Implementation Provisions

1. This Circular takes effect from January 1, 2026 and applies to fiscal years starting on or after January 1, 2026. This Circular replaces Circulars No. 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance guiding the accounting regulations for enterprises (except for the cases provided for in Clause 2 of Article 4 of this Circular), Circular No. 75/2015/TT-BTC dated May 18, 2015 of the Ministry of Finance amending and supplementing Article 128 of Circular No. 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance, Circular No. 53/2016/TT-BTC dated March 21, 2016 amending and supplementing some Articles of Circular No. 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance, and Circular No. 195/2012/TT-BTC dated November 15, 2012 guiding accounting regulations applicable to project owners.

2. Contents related to the accounting of state-owned enterprise shareholding reform guided at Clauses 3.11, 3.12 of Article 21; Clause 3.3 of Article 35; Points h, i of Clause 3 of Article 38; Point c of Clause 5 of Article 40; Point c of Clause 3.1, Point d of Clause 3.2, Point e of Clause 3.3, Point d of Clause 3.4 of Article 45; Points k, l, m of Clause 3 of Article 47; Point l of Clause 3 of Article 54; Clauses 3.2, 3.9 of Article 57; Point đ of Clause 3 of Article 62; Point p of Clause 3 of Article 63; Clause 3.13 of Article 67; Article 71; Point g of Clause 3 of Article 74; Point d of Clause 3 of Article 77; Clauses 3.15, 3.16 of Article 92; Point m of Clause 3 of Article 93; Point d of Clause 3 of Article 94 of Circular No. 200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance guiding the accounting regulations for enterprises shall continue to be implemented until replaced by another document.

Small and medium-sized enterprises, non-state-owned institutions, and other accounting units may choose to apply this Circular for accounting purposes in accordance with their specific production and business characteristics and management requirements. When applying this Circular, units must consistently implement it for a minimum of one fiscal year. If an enterprise changes its accounting system, it must restate comparative figures and information similar to when changing accounting policies, and explain the reasons and impacts of such changes in the financial statement notes as prescribed.

4. Ministries, sectors, People's Committees, Provincial Departments of Finance, Taxation Departments of Provinces and centrally-administered cities have the responsibility to guide enterprises in implementing this Circular. During implementation, if there are difficulties, they are requested to report to the Ministry of Finance for research and resolution.