Proposing 2 policies to amend and supplement the Law on Accounting

In order to amend and supplement the Law on Accounting, the draft proposes two policies including:

Policy 1: Removing difficulties, contributing to promoting production and business activities of enterprises

The policy objective is to promote foreign investment, contribute to creating conditions for upgrading the stock market, achieving the goal of Vietnam being recognized as a market economy; stabilize the macro-economy, control inflation, promote growth and implement the National Assembly's Resolution on combating global tax erosion; Support the development of small, medium and micro enterprises; Reduce time and costs for accounting work of units; Improve transparency and compliance with financial reporting of large-scale units; prevent and combat money laundering.

The policy contents include: Applying International Accounting Standards (IFRS) and building a legal framework for applying IFRS in Vietnam.

Amending and supplementing regulations on supporting the development of small and medium-sized enterprises by allowing the application of a simple accounting regime, aiming mainly at tax management to suit the capacity, reduce costs and time for accounting work at the unit, and improve the unit's operational efficiency;

The solution is to amend and supplement Clause 19, Article 3 in the direction of clarifying the concept of Accounting Standards including International Standards and Vietnamese Standards.

To implement IFRS application in Vietnam, it is proposed that the Ministry of Finance specify the subjects, scope, roadmap, forms and methods of applying international accounting standards.

Allowing units with the need and ability to apply IFRS will contribute to achieving the following goals: Stabilizing the macro economy, controlling inflation, promoting growth because applying IFRS is one of the factors to be upgraded by international institutions to the stock market and be internationally recognized as a market economy;

Seize the opportunity to attract foreign investment because large FDI enterprises such as Samsung, LG, Panasonic, the Association of European Enterprises, the United States... all wish to apply IFRS;

Help Vietnamese enterprises such as Vinfast and Viettel easily list on international markets and enterprises such as PVN and EVN... easily access capital from international financial markets.

Promote decentralization and delegation of authority in the field of accounting

Draft proposal for Policy 2. Promote decentralization, delegation of authority, and improve State management capacity in the field of accounting; Enhance the responsibility of leaders; ensure consistency and compliance with other provisions of law.

Accordingly, the draft amends and supplements regulations clarifying the functions and tasks of State management in the accounting field of the Ministry of Finance; amends and supplements regulations on decentralization and delegation of powers, clarifying the functions and tasks of State management in the accounting field of other ministries and branches; amends and supplements regulations on decentralization and delegation of powers and clarifying the responsibilities of the State Bank; amends and supplements regulations on decentralization and delegation of powers, clarifying the functions of State management of provincial People's Committees.

Supplementing the responsibilities of heads of units in the public sector when performing the following tasks: Signing accounting books, financial reports, preserving and storing accounting documents, and organizing the accounting apparatus at the unit.

Supplementing regulations to protect the legitimate rights and interests of accountants.

The Ministry of Finance said that the reason for choosing the policy is to more clearly define the authority and responsibility of the Ministry of Finance in promulgating the Professional Ethics Standards on Accounting, the Accounting Regime and other legal documents on accounting. In addition, there is a basis for assigning specialized management ministries and branches the authority to guide the accounting regime, ensuring that it is suitable for the specific characteristics of the activities, but still ensuring compliance with the system of standards prescribed by the Ministry of Finance. This helps to centralize State management activities but also decentralize appropriately so that general policies can be implemented to ensure feasibility and effectiveness.

Lan Phuong