Hello Lawnet. I want to learn about accounting regimes of microfinance institutions. What are regulations on correction of accounting books of microfinance institutions in Vietnam? Thank you!
- In order to meet administrative requirements, the State Bank of Vietnam (hereinafter referred to as SBV) shall decide on tier-2 and tier-3 accounts which can be used after receipt of the written consent from the Ministry of Finance.
- In case where SBV needs to supplement or modify tier-1 accounts in terms of names, codes and contents of their entries in order to record particular economic transactions, the written consent from the Ministry of Finance must be sought.
Pursuant to Article 84 of the Circular 05/2019/TT-BTC (takes effect from 01/04/2019) stipulating regulations on correction of accounting books of microfinance institutions in Vietnam as follows:
- Whenever errors contained in accounting books are discovered, they must be corrected by using the method in compliance with regulations enshrined in the Law on Accounting.
- In case where errors have been found previous accounting periods, microfinance institutions must make retroactive adjustments in accordance with the accounting standard “Changes in accounting policies, accounting estimation and errors.
Above are regulations on correction of accounting books of microfinance institutions in Vietnam.
Best regards!