What are the specific regulations for the upcoming accounting period in 2025? Including
1. What is an accounting period?
Pursuant to Clause 14, Article 3 of the 2015 Accounting Law, an accounting period is a period of time determined from the time the accounting unit begins to record accounting books to the time the accounting book is completed, the accounting books are closed to prepare financial statements.
2. Specific regulations on the 2025 accounting period
Pursuant to Article 12 of the 2015 Accounting Law, the accounting period in 2025 is specifically regulated as follows:
(i) The accounting period includes the annual accounting period, the quarterly accounting period, the monthly accounting period and is regulated as follows:
– The annual accounting period is 12 months, calculated from the beginning of January 1 to the end of December 31 of the calendar year. Accounting units with specific organizational and operational characteristics are allowed to choose an annual accounting period of 12 full months according to the calendar year, starting from the beginning of the 1st day of the first month of this quarter to the end of the last day of the last month of the previous quarter of the following year and must notify the financial authority and tax authority.
– The quarterly accounting period is 03 months, calculated from the beginning of the 1st day of the first month of the quarter to the end of the last day of the last month of the quarter.
– The monthly accounting period is 01 month, calculated from the beginning of the 1st day to the end of the last day of the month.
(ii) The accounting period of a newly established accounting unit is stipulated as follows:
– The first accounting period of a newly established enterprise is calculated from the beginning of the date of being granted the Certificate of Enterprise Registration to the end of the last day of the annual accounting period, the quarterly accounting period, the monthly accounting period as prescribed in paragraph (i) above.
– The first accounting period of another accounting unit is calculated from the beginning of the effective date of the decision to establish the accounting unit to the end of the last day of the annual accounting period, the quarterly accounting period, the monthly accounting period as prescribed in paragraph (i) above.
(iii) When an accounting unit is divided, consolidated, merged, converted into a type or form of ownership, dissolved, terminated, or bankrupt, the last accounting period is calculated from the beginning of the annual accounting period, the quarterly accounting period, or the monthly accounting period as prescribed in paragraph (i) above to the end of the day before the effective date of the decision to divide, consolidate, merge, convert into a type or form of ownership, dissolve, terminate, or bankrupt the accounting unit.
(iv) In case the first or last annual accounting period is shorter than 90 days, it is allowed to be added to the next annual accounting period or added to the previous annual accounting period to calculate into one annual accounting period; The first annual accounting period or the last annual accounting period must be shorter than 15 months.
Specific regulations on the 2025 accounting period (Illustrative photo – Source from the Internet)
3. Accounting principles
Pursuant to Article 6 of the 2015 Accounting Law, the accounting principles in 2025 are implemented as follows:
(i) The value of assets and liabilities is initially recorded at original cost. After initial recording, for certain types of assets or liabilities whose values fluctuate frequently according to market prices and whose values can be reliably re-determined, they are recorded at fair value at the end of the financial reporting period.
(ii) The selected accounting regulations and methods must be applied consistently during the annual accounting period; in case of changes in the selected accounting regulations and methods, the accounting unit must explain in the financial statements.
(iii) The accounting unit must collect and reflect objectively, fully, truthfully and in the correct accounting period in which the economic and financial transactions arise.
(iv) Financial statements must be prepared and submitted to competent authorities in a complete, accurate and timely manner. Information and figures in the financial statements of accounting units must be made public in accordance with the provisions of Articles 31 and 32 of the 2015 Accounting Law.
(v) Accounting units must use methods of asset valuation and allocation of revenues and expenditures carefully, without distorting the results of economic and financial activities of the accounting unit.
(vi) The preparation and presentation of financial statements must ensure that they reflect the true nature of the transaction rather than the form or name of the transaction.
(vii) State agencies, organizations and public service units using the state budget, in addition to implementing the above provisions, must also perform accounting according to the state budget index.
