VI What are the principles for preparing financial statements when changing the currency unit in accounting according to Circular 99/2025/TT-BTC? What are the subjects and responsibilities for preparing financial statements as stipulated in Circular 99/2025/TT-BTC? Let’s explore this further with Pham Consult!
Principles for preparing financial statements when changing the currency unit in accounting according to Circular 99/2025/TT-BTC?
Based on Clause 2, Article 5 of Circular 99/2025/TT-BTC, the principles for preparing financial statements when changing the accounting currency are as follows:
(1) In the first accounting period after the change, the enterprise shall convert the balances of items in the accounting books and the Statement of Financial Position to the new accounting currency according to the average transfer buying and selling exchange rate (which is the average of the transfer buying and selling exchange rates) of the commercial bank where the enterprise regularly conducts transactions (the commercial bank with which the enterprise has a higher frequency or value of transactions than other parties) on the date of the change in the accounting currency.
(2) For comparative information (previous period column) on the Statement of Income and the Statement of Cash Flows, the enterprise shall apply the average transfer buying and selling exchange rate of the commercial bank where the enterprise regularly conducts transactions from the period immediately preceding the period of change.
(3) Enterprises must present in the Notes to the Financial Statements the reasons for changing the accounting currency unit and when there are effects on the Financial Statements due to the change in accounting currency unit.
What are the subjects and responsibilities for preparing Financial Statements as stipulated in Circular 99/2025/TT-BTC?
Based on Article 16 of Circular 99/2025/TT-BTC, the subjects and responsibilities for preparing Financial Statements are as follows:
(1) Subjects for preparing Financial Statements
Enterprises in all fields and economic sectors must prepare annual Financial Statements in full form as prescribed in Appendix IV issued with Circular 99/2025/TT-BTC.
The preparation of interim Financial Statements and Financial Statements for other accounting periods shall be carried out in accordance with relevant laws or the management requirements of the unit.
(2) In cases where, according to relevant laws, an enterprise is required to prepare interim financial statements but those laws do not specify the type of interim financial statements, the enterprise may choose to prepare interim financial statements in full or summarized form.
(2) Enterprises with subsidiaries must consolidate both the financial information of the head office and the subsidiaries into the enterprise’s financial statements on the basis of excluding all internal transactions between the head office and the subsidiaries or between the subsidiaries themselves. In this case, the head office and the subsidiaries of the enterprise are not required to prepare their own financial statements, except where required by other laws.
(3) The preparation and presentation of consolidated annual financial statements and consolidated interim financial statements shall be carried out in accordance with the provisions of the law on consolidated financial statements.
(4) The preparation and signing of Financial Statements shall be carried out in accordance with the provisions of the 2015 Accounting Law, the guiding documents of the 2015 Accounting Law, and any amendments, supplements, or replacements.
In cases where an enterprise hires an accounting service business to perform the service of preparing and presenting Financial Statements, or the service of acting as chief accountant, the section for the preparer and chief accountant on the enterprise’s Financial Statements must clearly state the number of the accounting service license of the professional and the name of the accounting service provider as prescribed.
What are the principles for preparing and presenting Financial Statements from 2026 when changing the accounting period?
According to Article 21 of Circular 99/2025/TT-BTC, when changing the accounting period, for example, a business changing its accounting period from a calendar year to a different calendar year, the business must close its accounting books and prepare financial statements according to the following principles:
(1) The change of the accounting period must comply with the provisions of the Accounting Law. When changing the accounting period, the business must prepare separate financial statements for the period between the two accounting periods of the old and new fiscal years.
(2) For the Statement of Financial Position: The entire balance of assets, liabilities, and equity at the end of the accounting period before the conversion is recorded as the opening balance of the new accounting period and presented in the “Beginning Balance” column.
(3) For the Statement of Income and the Statement of Cash Flows for the accounting period from the end of the old accounting period to the time of the change of accounting period: the data from the end of the old accounting period to the time of the change of accounting period is presented in the “This Period” column. The “Previous Period” column presents the corresponding data in the previous accounting period or the data of 12 months in the Financial Statements of the immediately preceding fiscal year.
(4) The enterprise must clearly explain:
– Reasons for changing the end date of the accounting year;
– The corresponding figures for comparison are presented in the Statement of Income, the Statement of Cash Flows, and the relevant Notes to the Financial Statements. If the “Previous Period” figures in the Statement of Income and the Statement of Cash Flows for this period are from the 12 months of the immediately preceding financial year, the enterprise must explain the incomparability between the information of the reporting period and the information of the comparative period as prescribed by Vietnamese Accounting Standard No. 21 – Presentation of Financial Statements.
