The Ministry of Finance has just issued Decision 1676/QD-BTC announcing 5 Vietnamese public accounting standards, phase 1, effective from September 1, 2021. This decision is to implement the plan of the "Project on announcing the public accounting standard system" approved together with Decision No. 1299/QD-BTC dated July 31, 2019 of the Minister of Finance.
The publication and implementation of the public standard system is expected to bring many benefits to international integration activities, as well as improve the confidence of investors, economic and financial institutions in Vietnam and around the world.
After being promulgated, Vietnam's public accounting standard system will be the basis for promulgating the accounting regime applicable to entities in the public sector that perform accounting work, prepare financial statements, and provide useful information for the management, inspection and supervision of resources belonging to the State, especially in unifying data of public accounting units. The application of regulations in accordance with common practice as a basis to guide accrual accounting appropriately for public accountants, and at the same time create conditions to promote economic integration and attract resources externally, improving the quality and operational efficiency of public accounting units.
According to Decision 1676/QD-BTC, 5 Vietnamese public accounting standards in phase 1 were approved, including:
Vietnamese Public Accounting Standard No. 01 "Presentation of financial statements" in Appendix 01;
Vietnamese Public Accounting Standard No. 02 "Statement of cash flows" in Appendix 02;
Vietnamese Public Accounting Standard No. 12 "Inventories" in Appendix 03;
Vietnamese Public Accounting Standard No. 17 "Real Estate, Plant and Equipment" in Appendix 04;
Vietnamese Public Accounting Standard No. 31 "Intangible assets" in Appendix 05.
In this Decision, the Minister of Finance assigned the Director of the Department of Management and Supervision of Accounting and Auditing, based on the contents of the promulgated public accounting standards, to study and submit to the competent authorities for additions and amendments of accounting regimes applicable to public sector accounting units and relevant legal documents, in accordance with current regulations on public financial mechanism and state budget, and submit to the Minister of Finance The Circular guides the accounting regime applicable to units in each field of operation according to an appropriate roadmap.
At the same time, coordinate with relevant units, continue to study public accounting standards according to the plan stated in Decision No. 1299/QD-BTC dated July 31, 2019 of the Minister of Finance on the approval of public accounting standards. approve the Project on announcing the system of public accounting standards in Vietnam and submit it to the Minister of Finance for publication of subsequent standards.
Heads of relevant units under and under the Ministry of Finance, based on their assigned functions and tasks, research, train and disseminate the contents of Vietnam's public accounting standards, and apply good, suitable practices as a basis for proposing and advising the Ministry on the reform of mechanisms and policies in the public sector of Vietnam.