In particular, the approval of 5 Vietnamese public accounting standards in phase 3 stated in the attached appendices includes:
– Vietnam Public Accounting Standard No. 03 “Accounting policies, changes in accounting estimates and errors” (Appendix I);
– Vietnam Public Accounting Standard No. 04 “Effects of exchange rate changes” (Appendix II);
– Vietnam Public Accounting Standard No. 19 “Provisions, contingent liabilities and contingent assets” (Appendix III);
– Vietnam Public Accounting Standard No. 32 “Service Franchise Agreement – Licensor” (Appendix IV);
– Vietnam Public Accounting Standard No. 43 “Leases” (Appendix V).
For example, Vietnam Public Accounting Standard No. 03 “Accounting policies, changes in accounting estimates and errors” clearly states:
In cases where there are no legal documents or Vietnamese public accounting standards specifically regulating a transaction or event, unit leaders must develop their own accounting policies. Accounting policies must provide information relevant to the accountability and decision-making needs of report users, presenting reliably the entity’s financial position, results of operations and cash flows. in accordance with the law, meeting the requirements of understandability, timeliness, comparability and verifiability, taking into account limitations on information in financial reports for general purposes and the balance between these qualitative characteristics.
According to the above regulations, when developing accounting policies, unit leaders must refer to and consider the possibility of applying information sources in the following order:
– Regulations and instructions in Vietnamese legal documents and public accounting standards refer to similar and related issues;
– Definitions and criteria for recognition and valuation of assets, liabilities, revenues, and expenses are presented in the Conceptual Framework for General Purpose Financial Reporting in the Public Sector.
