Annual accounting requirements in Vietnam

All enterprises operating in Vietnam are required to apply the Vietnamese Accounting Standards and Systems (VAS). The VAS applies to all private Vietnamese companies as well as state-owned companies.

The basic set of financial statements prepared under VAS is comprised of (i) balance sheet, (ii) income statement, (iii) cash flow statement and (iv) notes to the financial statements.

Company financial statements must be prepared and audited annually. After that, the audited financial statements are required to be filed with the Provincial Tax Office, Ministry of Planning and Investment and General Statistics Office. Audited financial statements have to be filed within 90 days after the financial year end.

For a newly registered company, if the period from the incorporation date to the nearest financial year end is less than 90 days, such period will be included in the following reporting year.

Companies need to engage a licensed independent audit firm (no later than 30 days before the financial year end) to sign off audit engagement contracts.

Vietnam is expected to adopt International Financial Reporting Standards (IFRS) in 2017 in its efforts to improve transparency and increase comparability. It is planned that between 2017 and 2020, some IFRS standards will be chosen to be used in practice, and then will become applicable for some companies from 2020. From 2023 to 2025, all Vietnam firms will have to apply these new standards.

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