Accounting system in Vietnam
In 2002, Law on Corporate Accounting and Audit and Accounting Profession was established and it became the base of accounting system. In 2003, government ordinance of National Accounting Council and government ordinance of Kampuchea Institute of Certified Public Accountants and Auditors were promulgated and the subject of setting standards and audit or supervisor became definite.
Economic Financial Office manages national Accounting Council (NAC) and NAC has a right to revise or make the rules or standards related accounting. On the other hand, Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA) is a private group and it makes accounting industry organizing and supervises the work of accounting to keep high quality.
It is not stipulated in the Accounting Act. In general, the taxation period is from January 1st to December 31st. But it is also possible to acquire permission of Taxation Office to use a tax year except calendar year.
Commonly the materials of accounting are written in Khmer. For foreign companies, it can be prepared in English but it is necessary to attach the translation in Khmer.
Accounting booking and vouchers are required to keep for 10 years from the end of current period.
The making of financial statements must be finished within 3 months from the closing day.
In 2002, according to the IFRS, Vietnam Accounting Standards is promulgated by NAC. And in 2009, except Small-Medium-Enterprises all of the corporations in Vietnam should use IFRS and the translation to Khmer of IFRS was developed. In 2012, the IFRS should be applicable for financial, insurance and listed companies. And other companies are recognized to apply SEMs accounting standards.