Accounting Law 2015 and regulations on financial reporting upon dissolution.

Accounting Law 2015 This is the most important legal document regulating the financial activities of businesses in Vietnam until 2026. For entities undergoing dissolution or bankruptcy procedures, compliance with regulations on final financial reporting is mandatory to fulfill their obligations to the state. This article provides a detailed look at accounting principles, the final accounting period, and the responsibilities of businesses during the cessation of operations in accordance with current legal regulations.

Legal validity of the 2015 Accounting Law and its guiding documents.

The Accounting Law 2015 (No. 88/2015/QH13) was passed by the National Assembly on November 20, 2015, and officially came into effect on January 1, 2017. This law completely replaces the 2003 version to meet the needs of international economic integration and standardize financial reporting standards in Vietnam towards greater transparency and modernity.

As of 2026, the 2015 Accounting Law remains in effect and serves as the highest legal basis for all record-keeping and bookkeeping activities of accounting entities. However, to implement the law in detail, the Government and the Ministry of Finance have issued a system of accompanying sub-laws to guide specific situations such as separation, merger, or dissolution.

Below is a summary of important implementing guidelines that businesses need to consult when applying the 2015 Accounting Law.

Note after the table: Businesses need to update the Ministry of Finance's amended and supplementary circulars from time to time to ensure that the accounting accounts and financial reporting forms are not outdated.

Regulations on the final accounting period according to the Accounting Law 2015

According to Article 12 of the 2015 Accounting Law, the accounting period of an entity is usually determined by the calendar year or the 12-month fiscal year. However, when a business decides to dissolve, merge, or go bankrupt, the concept of a final accounting period will be applied to finalize all financial data before closing its tax identification number.

Correctly identifying the final accounting period according to the 2015 Accounting Law helps accountants make accurate closing entries. Units should pay particular attention to the following rules.

• The final accounting period is calculated from the start date of the accounting year to the date before the date stated on the decision to dissolve or officially cease operations.
• The final accounting period date must coincide exactly with the notification from the competent state authority regarding the cessation of operations.
• In cases where the last accounting period is shorter than 90 days, the entity may consolidate it with the previous year's accounting period to prepare a single financial statement as stipulated in Clause 4, Article 12 of the 2015 Accounting Law, but the total period must not exceed 15 months.

Principles of financial reporting upon dissolution under the Accounting Law 2015

When a business is no longer able to continue operating, standard accounting principles undergo significant changes to reflect its liquidation value. Article 6 of the 2015 Accounting Law clearly stipulates that assets and liabilities should be valued at fair value instead of cost at the time of preparing the liquidation report.

This change aims to protect the legitimate rights of creditors, shareholders, and stakeholders. The core principles required by the 2015 Accounting Act include:.

• Convert all items currently recorded at cost to net realizable value or fair value to facilitate asset disposal.
• Ensuring honesty and objectivity, no potential debts or unfulfilled financial obligations to the state budget are permitted.
• Reclassify all long-term assets as short-term assets for the purpose of this report, which is to allow for immediate liquidation and settlement during the dissolution process.

Procedure for preparing dissolution financial statements according to the Accounting Law 2015

The process of preparing financial statements when ceasing operations requires meticulous attention to detail and close coordination between the accounting department and management. This process usually begins immediately after the official meeting minutes regarding the cessation of business operations are issued.

To ensure that financial statements accurately reflect the situation in accordance with the spirit of the 2015 Accounting Law, accountants need to strictly follow the steps below.

• Conduct an inventory of assets: Compare the balances of cash, bank deposits, inventory, and existing fixed assets in warehouses and offices.
• Accounts Reconciliation: Send reconciliation statements to all customers and suppliers to confirm the exact amount of receivables and payables, down to the last cent.
• Closing the accounting books: Performing journal entries to transfer revenue and expenses and determine the final business results up to the date stated in the dissolution decision.
• Prepare a complete set of financial statements: Complete the Balance Sheet, Income Statement, and Notes to the Financial Statements under conditions where the entity is not a going concern.

In more complex situations, businesses may turn to others. business dissolution consulting services To receive in-depth legal and technical support.

Documentation and signatures required for reports according to the Accounting Law 2015.

Accounting records during dissolution serve as the highest legal evidence for the Tax authorities to finalize the settlement and complete the procedures for closing the tax code. Therefore, these documents must be fully completed in accordance with the strict regulations from Articles 16 to 19 of the 2015 Accounting Law.

A properly formatted set of accounting records, in accordance with the 2015 Accounting Law, requires not only accurate figures but also valid signatures and verifications.

• The final financial report must bear the original signatures of the preparer, the chief accountant (or person in charge of accounting), and the legal representative of the entity.
• For businesses that outsource accounting services, the person named as chief accountant on the reports must be an employee of the service provider holding a legally valid professional certificate as stipulated in the 2015 Accounting Law.
• All seals used on settlement documents must be clear, unaltered, and match the seal mẫu officially registered with the competent authority.

Deadline for submitting dissolution reports according to the Accounting Law 2015

Delays in submitting dissolution financial statements can lead to heavy administrative penalties that deplete the company's liquidation assets. The 2015 Accounting Law and its penalty decrees clearly state specific deadlines for entities to strictly comply with.

Accountants should note the following deadlines and locations for submitting documents.

• Deadline for submitting documents: No later than 45 days from the date of the dissolution or cessation of operations decision from the competent authority.
• Reporting locations: Financial reports must be submitted simultaneously to the directly managing Tax authority, the Statistics agency, and the Department of Planning and Investment where the business license was issued.
• Application submission method: Businesses should prioritize submitting applications through the electronic portal system to obtain proof of submission time and avoid future legal disputes.

Maintain accounting records in accordance with the Accounting Law 2015.

Many business owners often make the mistake of assuming that after dissolution, they can destroy all their accounting records. However, according to Article 41 of the 2015 Accounting Law, the obligation to retain records continues for many years after a business ceases to exist to facilitate inspections.

The regulations regarding the preservation of records after the dissolution of an entity are detailed in the Accounting Law 2015 as follows.

• Minimum retention period: 10 years for accounting documents, accounting books, and financial reports used for management and auditing by the accounting unit.
• Responsibility for record keeping: The legal representative of the entity at the time of cessation of operations is responsible for organizing and paying for the archiving of documents.
• Storage location: Documents may be stored at professional storage centers or a secure location determined by the representative, and the tax authorities must be notified.

Common accounting errors when dissolving a business.

During the implementation of the 2015 Accounting Law, many businesses still made elementary mistakes that prolonged the dissolution process and incurred unnecessary additional costs.

To ensure a smooth exit from the market, accountants need to carefully review the following areas where errors frequently occur.

• Failure to properly process outstanding invoices: Many businesses forget to cancel invoices or fail to submit the final invoice usage report.
• Unpaid wages and social insurance contributions will result in your financial statements being rejected by the tax authorities, preventing you from registering a tax identification number.
• Discrepancies between periods: A very common error is when the opening balance of the dissolution report does not match the closing balance of the previous year's report.
• Lack of inventory evidence: The failure to conduct a physical inventory of assets on the closing date renders the financial statements ineligible according to the 2015 Accounting Law.

For any further questions regarding the procedures, please feel free to contact us. contact information to receive timely assistance.

Conclusion regarding the application of the 2015 Accounting Law during dissolution.

Mastering and accurately applying the regulations of the 2015 Accounting Law is not only a legal obligation but also the optimal solution for businesses to protect their rights when ceasing operations. A transparent and legally compliant set of financial reports will help the dissolution process proceed quickly, minimizing administrative and financial risks for those in charge. In the context of increasingly stringent laws in 2026, thorough preparation of accounting records is the final step in affirming the professionalism and responsibility of an economic entity to the community and the state.

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Content is moderated by: Mr. Le Hoang Tuyen – Founder & CEO of Man, CPA Vietnam Auditors With over 30 years of experience in accounting, auditing, and financial consulting...