VI Financial Statements in Vietnam 2026: 6 Checks Before Year-End Closing
Preparing financial statements in Vietnam 2026 requires businesses to review more than the figures recorded in their general ledgers. For enterprises applying the corporate accounting regime under Circular No. 99/2025/TT-BTC, the reporting process also involves verifying the applicable accounting framework, recognition principles, chart of accounts, account balances and supporting disclosures.
For foreign-invested enterprises (FDIs), financial reporting is particularly important when reconciling the financial information of a Vietnamese subsidiary with the reporting requirements of its overseas parent company. Expenses recorded in the wrong accounting period or unreconciled intercompany balances may create significant differences during financial consolidation.
This article outlines six practical checks businesses should consider before finalising their financial statements in Vietnam in 2026. It also distinguishes statutory accounting requirements from recommended internal control procedures. These six checks are practical recommendations, not a mandatory checklist separately prescribed by the Ministry of Finance.
1. Legal Framework for Financial Statements in Vietnam 2026
On 27 October 2025, the Ministry of Finance issued Circular No. 99/2025/TT-BTC, providing guidance on the Corporate Accounting Regime in Vietnam.
Under Clause 1, Article 31, the Circular takes effect on 1 January 2026 and applies to financial years beginning on or after that date. It replaces Circular No. 200/2014/TT-BTC, dated 22 December 2014, and the related instruments specified in its effective-date provisions.
An important distinction concerns businesses whose financial year does not follow the calendar year.
The effective date of 1 January 2026 does not automatically require every enterprise with an ongoing financial year to change its accounting regime in the middle of that year.
According to guidance issued by the Ministry of Finance’s accounting and auditing supervisory authority, an enterprise with a financial year running from 1 October 2025 to 30 September 2026 begins applying Circular No. 99 from its subsequent financial year, running from 1 October 2026 to 30 September 2027.
Businesses should therefore verify the beginning of their financial year rather than relying solely on the calendar year when determining the applicable accounting framework.
Circular No. 99 provides guidance on accounting documents, accounts, bookkeeping, and the preparation and presentation of financial statements for enterprises within its scope.
Entities applying other accounting regimes under separate regulations must review the relevant scope, accounting framework and transitional provisions.
Importantly, corporate tax obligations continue to be determined under the applicable tax legislation. Accounting recognition alone does not establish the amount of tax payable.
2. Six Checks Before Closing Financial Statements in Vietnam 2026
Before finalising financial statements in Vietnam 2026, businesses should establish a structured review process covering their accounting records, transaction documentation and financial reporting disclosures.
2.1. Confirm the Financial Year and Applicable Accounting Regime
Before processing year-end adjustments, the accounting department should confirm the beginning and ending dates of the financial year and identify the accounting regime applicable to the enterprise.
For businesses whose financial year follows the calendar year, a financial year beginning on 1 January 2026 falls within the application period of Circular No. 99, provided the enterprise is within the Circular’s scope.
Businesses with a different financial year must examine the transitional provisions under Article 31.
This review should also cover the company’s documented accounting policies, changes in recognition methods and procedures for approving accounting adjustments.
Where changes may affect the consistency of financial reporting, supporting explanations should be retained for review by the Chief Accountant and management.
2.2. Reconcile Opening Balances and Transitional Accounting Data
Financial statements in Vietnam 2026 should be prepared using reliable opening balances and properly reconciled accounting records.
The accounting team should compare approved closing balances from the previous financial year with the opening balances recorded for the current reporting period.
Particular attention should be given to adjustments made after an external audit, tax finalisation or management review.
Any differences should be identified, investigated and documented.
When transitioning to an account structure or reporting presentation under Circular No. 99, preparing a mapping schedule between the previous and new accounts can be a useful internal control measure.
However, businesses should not assume that every account requires modification or that all historical figures must be restated solely because a new Circular has been issued.
Each adjustment should be supported by the applicable accounting requirements and the economic substance of the underlying transaction.
2.3. Review Supporting Documents and Cut-Off Procedures
Accurate financial reporting requires transactions to be recognised in the appropriate accounting period.
Accounting teams should review transactions occurring close to the reporting date, including supplier invoices received after year-end, goods delivered but not yet invoiced, services received but not yet paid for, and revenue that has not met the applicable recognition conditions.
The review should be based on supporting documents such as contracts, delivery records, transportation documents, acceptance certificates and relevant accounting policies.
Practical example
Assume a company receives consulting services in December 2026 but does not receive the supplier’s invoice until January 2027.
The accounting department must assess the underlying obligation, the date on which the services were performed and whether an accrual or other recognition treatment is required under the applicable accounting rules.
The expense should not automatically be transferred to the following financial year simply because the invoice was issued or received in January.
For financial statements in Vietnam 2026, an effective year-end cut-off review helps identify transactions that may otherwise be recorded in the wrong reporting period.
2.4. Reconcile Cash, Receivables, Payables and Intercompany Balances
Before preparing financial statements, businesses should reconcile cash balances with physical cash counts and bank balances with bank statements.
Trade receivables and payables should be checked against customer and supplier confirmations or other relevant transaction records.
Employee advances, internal balances and intercompany transactions should also be reconciled with their detailed accounting schedules.
For foreign-invested enterprises, transactions with parent companies and related parties frequently involve foreign currencies and may be recorded in both Vietnamese accounting systems and group reporting platforms.
Accounting departments should retain documentation supporting exchange rates, recognition dates and foreign currency measurement methods under the applicable accounting regime.
Differences between Vietnamese statutory accounts and group financial reporting should be identified and classified.
Such differences should not automatically be treated as accounting errors, as they may arise from differences in reporting frameworks or consolidation adjustments.
Nevertheless, material differences should be supported by clear reconciliation schedules and explanations.
2.5. Review Inventories, Assets and Accrued Expenses
For manufacturing and distribution businesses, inventories, work in progress, fixed assets and tools or equipment can significantly affect the financial results reported at year-end.
Before closing the accounts, accounting teams should coordinate with warehouse and operations departments to reconcile inventory counts and investigate significant discrepancies.
The review should also consider slow-moving inventory, idle assets and any provisions that may be required when the relevant legal and accounting conditions are satisfied.
Accrued expenses, warranty obligations, employee bonuses and other potential liabilities should be assessed based on their economic substance, measurability and supporting documentation.
The objective is to prevent businesses from recording expenses solely on the basis of internal estimates without adequate accounting evidence.
This check is particularly relevant when the enterprise has significant year-end accruals or complex inventory valuation processes.
2.6. Check Consistency Across Financial Statements and Notes
After preparing a preliminary year-end closing, the accounting department should reconcile information across the main financial statements and their accompanying notes.
Depending on the reporting requirements under the applicable regime, this includes the Statement of Financial Position, Statement of Business Results, Statement of Cash Flows and Notes to the Financial Statements.
The review should examine whether opening and closing balances, cash flows, reported profits and movements in equity are logically consistent.
Significant fluctuations should be explained using appropriate accounting records and supporting documentation.
Before financial statements in Vietnam 2026 are submitted for approval, businesses should consider conducting an independent review involving the preparer, reviewer and approving manager.
A record of adjustments identified during the review should also be maintained.
3. Practical Example: A Company with a Non-Calendar Financial Year
Consider a hypothetical company operating in Vietnam whose financial year begins on 1 October and ends on 30 September.
The company currently applies the corporate accounting regime in effect before Circular No. 99.
Its financial year runs from 1 October 2025 to 30 September 2026.
Because this financial year began before 1 January 2026, the company does not automatically switch to Circular No. 99 halfway through the reporting period merely because the Circular has taken effect.
Instead, its following financial year, beginning on 1 October 2026 and ending on 30 September 2027, falls within the application period of Circular No. 99, provided the company is subject to the Circular.
A suitable transition plan may include reconciling balances as of 30 September 2026, preparing the applicable chart of accounts, reviewing accounting policies for the new financial year, assigning responsibilities for data conversion and documenting differences arising during the transition.
This is a hypothetical illustration of the effective-date principle.
The accounting treatment for a particular enterprise must still be determined by reference to its accounting records, applicable regulations and any relevant guidance issued by the competent authorities.
4. Common Mistakes Businesses Should Avoid
One significant mistake when preparing financial statements in Vietnam 2026 is assuming that Circular No. 99 applies immediately to every financial year simply because it became effective on 1 January 2026.
Businesses may also encounter problems when transitioning account balances without reconciliation, omitting expenses that belong to the reporting period or recording adjustments without adequate explanations.
From an internal control perspective, relying on one person to both prepare and independently review the entire financial reporting package may make errors more difficult to identify.
Another important distinction concerns accounting profit and taxable income.
These figures are not necessarily identical.
When preparing tax declarations and finalisation documents, businesses must make the necessary adjustments under the applicable tax regulations rather than treating accounting profit as the amount on which corporate income tax is automatically calculated.
The quality of financial statements therefore depends not only on bookkeeping accuracy but also on a clear understanding of the differences between accounting and tax requirements.
5. Frequently Asked Questions About Financial Statements in Vietnam 2026
Does Circular No. 99 apply to a financial year running from 1 October 2025 to 30 September 2026?
According to the official guidance issued by the Ministry of Finance, a financial year beginning before 1 January 2026, as in this example, is not required to adopt Circular No. 99 partway through that reporting period.
The Circular applies from the subsequent financial year beginning on 1 October 2026, where the enterprise falls within its scope.
Are businesses legally required to follow the six checks described in this article?
No.
The six checks are recommended internal review procedures based on common accounting and financial reporting risks.
Mandatory obligations must be determined under the Law on Accounting, Circular No. 99 and other regulations applicable to the enterprise.
Do audited financial statements replace corporate tax finalisation obligations?
No.
Financial statements and corporate tax finalisation documents serve different purposes.
Businesses must comply separately with the applicable financial reporting, auditing and tax administration requirements.
An external audit does not automatically eliminate the need to prepare and submit required tax documentation.
6. How PHAM CONSULT Can Support Businesses
PHAM CONSULT provides accounting, tax advisory and compliance support services for businesses operating in Vietnam.
When preparing financial statements in Vietnam 2026, businesses may seek professional assistance with reviewing accounting records, reconciling account balances, examining adjusting journal entries and coordinating financial reporting procedures.
The scope of assistance depends on the services agreed upon between PHAM CONSULT and the client.
For foreign-invested enterprises preparing reports under both Vietnamese regulations and overseas parent-company requirements, establishing a structured closing schedule can help improve reporting coordination.
Businesses may also consider maintaining reconciliation checklists and supporting explanations before the end of their financial year.
For additional information, see PHAM CONSULT’s related article on internal accounting controls:
Internal Accounting Controls in Vietnam 2026
Visit PHAM CONSULT to learn more about its professional services.
Legal References and Official Sources
- Circular No. 99/2025/TT-BTC, issued by the Ministry of Finance on 27 October 2025, providing guidance on the Corporate Accounting Regime, particularly Articles 1, 3, 11 and 31.Official publication: https://congbao.chinhphu.vn/van-ban/thong-tu-so-99-2025-tt-btc-46529.htm
- Ministry of Finance guidance dated 14 January 2026 concerning the application of Circular No. 99 to a financial year running from 1 October 2025 to 30 September 2026.Source: https://portal.mof.gov.vn/hoidapcstc/home/cthoidap/159102
- Ministry of Finance – New Regulations on the Corporate Accounting Regime.Source: https://www.mof.gov.vn/tin-tuc-tai-chinh/tin-chinh-sach-tai-chinh/quy-dinh-moi-ve-che-do-ke-toan-doanh-nghiep
Disclaimer: The information provided in this article and on the PHAM CONSULT website is intended for general informational purposes only. It does not constitute legal, tax, accounting, payroll or other professional advice for any specific situation. Legal requirements and their application may vary depending on the circumstances, available documentation and applicable regulations. Please contact PHAM CONSULT for professional guidance tailored to your needs before making decisions or taking action based on this information.
