CHAPTER 1: ENVIONMENT & THEORETICAL STRUCTURE OF

FINANCIAL ACCOUNTING

1. FINANCIAL REPORTING STANDARDS

Concepts, principles, and procedures were developed to ensure high-quality

financial reporting to meet the needs of users.

A FRAMEWORK => STANDARDS ON SPECIFIC ACCOUNTING OBJECTIVES =>

STANDARDS ON PRESENTING FINANCIAL STATEMENTS

Sets of accounting standards:

- IFRS ( INTERNATIONAL FINANCIAL REPORTING STANDARDS)

- GAAP – U.S ( GENERALLY ACCEPTED ACCOUNTING PRINCIPLES)
- VAS ( VIETNAMESE ACCOUNTING STANDARDS)
2. STANDARDS’ HISTORY

In 1973, IASC ( International Accounting Standards Comittee) was formed, which is

issued IAS and SIC interpretation. IASC reorganized itself in 2001 and created a new
Standard- setting body called IASB, issued IFRS ( to replace some expired IAS) and
IFRIC interpretation ( to replace SIC interpretation)

Include 40 standards ( 16 new IFRSs and 24 old valid IAS)+ interpretation +

( conceptual framework)

 Principle- based ( dựa theo quy tắc – 2 hướng )

VAS was issued from 2000-2005 by VN MOF based on old IAS ( valid IAS and
expired IAS) – include 26 standard + regime ( chế độ kế toán)

 Rule- based ( dựa theo quy định – 1 hướng)

- Financicak reporting in VAS order
1. Statement of financial position
2. Income statement
3. Statement of cash flows
4. Notes to the financial statements ( include Statement changes in Equity )
3. The legal environment of Vietnamese accounting
3.1. Accounting Law ( in 2015) – the highest legal document – National Assembly (có
hiệu lực 1/1/2007) – ( Nghị định 174/ 2016/ NĐ- CP Quy định chi tiết 1 số điều
của AL )
3.2. Accounting Standard VAS (2000-2005) – Ministry of Finance (Department of
Accounting and Auditing Regulations) – 26 VAS – gồm 3 nhóm chung
- Nhóm thứ nhất : Chuẩn mực chung (VAS 01) – qui định và hướng dẫn các nguyên
tắc và yêu cầu kế toán cơ bản, các yếu tố và ghi nhận các yếu tố của BCTC
- Nhóm thứ hai : Chuẩn mực kế toán cụ thể- liên quan đến các yếu tố của BCTC :
assets, liability, share- capital, Rev., other earnings (gains) and Exp.
VAS 02 HÀNG TỒN KHO
VAS 03 TÀI SẢN CỐ ĐỊNH HỮU HÌNH
VAS 04 TÀI SẢN CỐ ĐỊNH VÔ HÌNH
VAS 05 BẤT ĐỘNG SẢN ĐẦU TƯ
VAS 06 THUÊ TÀI SẢN
KẾ TOÁN CÁC KHOẢN ĐẦU TƯ
VAS 07
VÀO CÔNG TY LIÊN KẾT
THÔNG TIN TÀI CHÍNH VỀ CÁC
VAS 08
KHOẢN VỐN GÓP LIÊN DOANH
ẢNH HƯỞNG CỦA VIỆC THAY
VAS 10
ĐỔI TỶ GIÁ HỐI ĐOÁI
VAS 11 HỢP NHẤT KINH DOANH
DOANH THU VÀ THU NHẬP
VAS 14
KHÁC
VAS 15 HỢP ĐỒNG XÂY DỰNG
VAS 16 CHI PHÍ ĐI VAY
THUẾ THU NHẬP DOANH
VAS 17
NGHIỆP
CÁC KHOẢN DỰ PHÒNG, TÀI
VAS 18
SẢN VÀ NỢ TIỀM TÀNG
VAS 19 HỢP ĐỒNG BẢO HIỂM
- Nhóm thứ ba: chuẩn mực kế toán liên quan đến việc lập BCTC
VAS 21 TRÌNH BÀY BCTC
TRÌNH BÀY BỔ SUNG BCTC CỦA
VAS 22 CÁC NGÂN HÀNG VÀ CÁC TỔ
CHỨC TƯƠNG TỰ
CÁC SỰ KIỆN PHÁT SINH SAU
VAS 23
NGÀY KẾT THÚC KỲ KẾ TOÁN

VAS 24 BÁO CÁO LƯU CHUYỂN TIỀN TỆ

BÁO CÁO TÀI CHÍNH HỢP NHẤT
VAS 25 VÀ KẾ TOÁN KHOẢN ĐẦU TƯ
VÀO CÔNG TY CON
THÔNG TIN VỀ CÁC BÊN LIÊN
VAS 26
QUAN
VAS 27 BCTC GIỮA NIÊN ĐỘ
VAS 28 BÁO CÁO BỘ PHẬN
THAY ĐỔI CHÍNH SÁCH KẾ
VAS 29 TOÁN, ƯỚC TÍNH KẾ TOÁN VÀ
CÁC SAI SÓT
VAS 30 LÃI TRÊN CỔ PHIẾU
3.3. Accounting regime (2014) – Ministry of Finance ( Circular on guiding of
Accounting Standard)
1. The method of preparing and presenting the consolidated financial statements
-Cir. 202/2014/TT-BTC – principle matching
2. The accounting regime of enterprises

- Cir. 200/2014/TT-BTC

1. Detailed guideline of all ledger Accounts

2. Financial statements regulations
3. Financial statements forms
4. Accounting voucher
 Cir. 75/2015/TT-BTC, Cir. 53/2016/TT-BTC

3. The accounting regime of small and medium enterprises Cir.133/2016/TT-

BTC

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4. The accounting regime of super small enterprises Cir 132/2018/TT-BTC

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4. Ethics of Accounting
- Integrity

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- Objectivity

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- Professional Competence and Due Care

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- Confidentiality

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- Professional behaviour
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5. Accounting Principles from VAS 01

5.1. Accrual accounting basis- related to assets, liabilties, owners’ equity, revenues
and cost must be recorded in accounting books at the time they arise, not at the
time of actual receipt or payment of cash equivalents.
 Financial Statement ( FS) made on the basis of accrual shall reflect the financial
status of enterprises in the past, at present and in the future.

EX. Receivables, payables.

Rev. is recognized when earned => receivables if uncollected

Exp. are recognized when incurred => payable if unpaid (regardless of cash)

5.2. Going concern (assumption)

Financial statements must be made on the basis of the assumption that enterprises
are operating continuously and will continue business activities normally in the
near future, i.e., they have no intention or are not compelled to cease operation or
to substantially downscale their operation in at least one year. Where reality
differs from the going `
5.3. Cost – Historical Cost
Assets must be recognized based on historical cost. The historical cost of an asset
shall be calculated according to the cash amount or cash equivalent already paid
or to be paid, or according to the reasonable value of the asset at the time the asset
is recognized. The assets’ historical costs must not be modified unless required by
specific accounting standards.
Example: cost of inventory = purchase price + delivery inwards
(delivery outwards is a current expenses in the period)
Assets vs Expenses: future expenses vs current expenses
5.4. Matching ( expense recognition)
 The recognition of revenues and that of costs must match. When a revenue is
recognized, a corresponding expense related to the effort of making such revenue
must be recognized.
1. Deferrals (hoãn lại)
1.1. Prepaid Exp.: Exp. paid in cash before they are used or consumed – liabilty
1.2. Unearned Rev.: Cash received before services are performed.
2. Accruals (dồn tích)
2.1. Accrued Rev.: Rev. for services performed but not yet received in cash or
recorded.
2.2. Accrued Exp.: Exp. incurred but not yet paid in cash or recorded.
5.5. Consistency
The accounting policies and methods selected by enterprises must be applied
consistently within at least one accounting year. Where appear changes in the
selected accounting policies or methods, the reasons for and impacts of such
changes must be presented in the explanations of financial statements.
For instance: inventory calculation method (FIFO, average cost…)
5.6. Prudence
Prudence means the examination, consideration and anticipation needed to
establish accounting estimates under uncertain conditions. The prudence principle
requires that:
a/ The allowance must be determined, but not be too large;
b/ The values of assets and incomes are not overestimated;
c/ The values of liabilities and costs are not underestimated;
d/ Revenues and incomes shall be recognized only when there are solid evidences
of the possibility of obtaining economic benefits, while costs must be recognized
when there are evidences of the possibility of arising costs.
5.7. Materiality
Information shall be considered material in cases where the insufficiency or
inaccuracy of such information may distort significantly the financial statements,
thus affecting the economic decisions of the users of the financial statements.
 Materiality depends on the amount and nature of information or errors assessed in
particular circumstances. The materiality of information must be examined both
quantitatively and qualitatively .
6. Các yêu cầu cơ bản của kế toán
1. Trung thực (honest)

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2. Khách quan (objective)

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3. Đầy đủ ( completeness)

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4. Kịp thời ( Timeliness)

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5. Dễ hiểu ( understandability)

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6. Có thể so sánh ( comparability) ( include or related with consistency)

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7. Measurement
1. Historical cost

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 2. Curremt cost

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3. Net reliazable value

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4. Present value

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5. Fair value

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