{"id":20949,"date":"2026-05-05T16:53:49","date_gmt":"2026-05-05T09:53:49","guid":{"rendered":"https:\/\/brochure.crowevietnam.vn\/en\/?post_type=insight&#038;p=20949"},"modified":"2026-05-07T10:32:49","modified_gmt":"2026-05-07T03:32:49","slug":"circular-no-99-2025-tt-btc","status":"publish","type":"insight","link":"https:\/\/brochure.crowevietnam.vn\/en\/insights\/circular-no-99-2025-tt-btc\/","title":{"rendered":"Insights &#8211; Circular No. 99\/2025\/TT-BTC"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"20949\" class=\"elementor elementor-20949\" data-elementor-post-type=\"insight\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2d705cf e-flex e-con-boxed e-con e-parent\" data-id=\"2d705cf\" data-element_type=\"container\" data-e-type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-a31d374 e-con-full e-flex e-con e-child\" data-id=\"a31d374\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-bed9e33 elementor-widget elementor-widget-text-editor\" data-id=\"bed9e33\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Insights<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eaef3ec elementor-widget__width-initial elementor-widget-mobile__width-inherit elementor-widget elementor-widget-heading\" data-id=\"eaef3ec\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Circular No. 99\/2025\/TT-BTC<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f70eee2 elementor-widget elementor-widget-text-editor\" data-id=\"f70eee2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Crowe Vietnam has compiled and analyzed Circular No. 99\/2025\/TT-BTC to help businesses understand the latest updates and ensure accurate application in their accounting and financial operations.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-6886d7d e-flex e-con-boxed e-con e-parent\" data-id=\"6886d7d\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-32f8b5d e-con-full e-flex e-con e-child\" data-id=\"32f8b5d\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-82a4b38 elementor-widget elementor-widget-html\" data-id=\"82a4b38\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t\t\r\n        <link rel=\"stylesheet\" href=\"\/en\/wp-content\/themes\/astra-child\/Module\/book_1_1_0\/sass\/book_1_1_0.min.css?v=12\">\r\n\t\t<section class=\"book_1_1_0\">\r\n                <div class=\"book_1_1_0__menu\">\r\n                    <div class=\"book_1_1_0__menuTitle\" id=\"groupcircular-99\">Content <img decoding=\"async\" src=\"\/wp-content\/themes\/astra-child\/Module\/book_1_1_0\/images\/arrow.svg\" alt=\"arrow\" \/><\/div>\r\n                    <ul class=\"book_1_1_0__menuContent\" id=\"menucircular-99\"><\/ul>\r\n                <\/div>\r\n                <div class=\"book_1_1_0__line\">\r\n                    <div class=\"book_1_1_0__content\" id=\"contentcircular-99\"><\/div>\r\n                <\/div>\r\n        <\/section>\r\n        <script src=\"\/en\/wp-content\/themes\/astra-child\/Module\/book_1_1_0\/js\/book_1_1_0.min.js?v=15\"><\/script>\r\n        <script>\r\n            bookTab2(\"circular-99\", \"20949\", \"menucircular-99\", \"contentcircular-99\", \"groupcircular-99\", \"circular-99\");\r\n        <\/script>\r\n        \r\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-326eae9 e-flex e-con-boxed e-con e-parent\" data-id=\"326eae9\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-ef5b110 e-con-full e-flex e-con e-child\" data-id=\"ef5b110\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-3c1012f elementor-widget elementor-widget-heading\" data-id=\"3c1012f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Latest insights<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0812bba elementor-grid-3 elementor-grid-tablet-2 elementor-grid-mobile-1 elementor-posts--thumbnail-top elementor-posts__hover-gradient elementor-widget elementor-widget-posts\" data-id=\"0812bba\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;cards_columns&quot;:&quot;3&quot;,&quot;cards_columns_tablet&quot;:&quot;2&quot;,&quot;cards_columns_mobile&quot;:&quot;1&quot;,&quot;cards_row_gap&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:35,&quot;sizes&quot;:[]},&quot;cards_row_gap_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;cards_row_gap_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"posts.cards\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-posts-container elementor-posts elementor-posts--skin-cards elementor-grid\" role=\"list\">\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-20949 insight type-insight status-publish has-post-thumbnail hentry insight_categories-accounting\" role=\"listitem\">\n\t\t\t<div class=\"elementor-post__card\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/circular-no-99-2025-tt-btc\/\" tabindex=\"-1\" ><div class=\"elementor-post__thumbnail\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1000\" height=\"750\" src=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2026\/05\/insights-circular-no-99-2025-tt-btc.jpg\" class=\"attachment-full size-full wp-image-20950\" alt=\"Insights - Circular No. 99\/2025\/TT-BTC\" srcset=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2026\/05\/insights-circular-no-99-2025-tt-btc.jpg 1000w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2026\/05\/insights-circular-no-99-2025-tt-btc-300x225.jpg 300w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2026\/05\/insights-circular-no-99-2025-tt-btc-768x576.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/div><\/a>\n\t\t\t\t<div class=\"elementor-post__badge\">Accounting<\/div>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/circular-no-99-2025-tt-btc\/\" >\n\t\t\t\tInsights &#8211; Circular No. 99\/2025\/TT-BTC\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"elementor-post__read-more-wrapper\">\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/circular-no-99-2025-tt-btc\/\" aria-label=\"Read more about Insights &#8211; Circular No. 99\/2025\/TT-BTC\" tabindex=\"-1\" >\n\t\t\tView details \u00bb\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-post__meta-data\">\n\t\t\t\t\t<span class=\"elementor-post-date\">\n\t\t\t05\/05\/2026\t\t<\/span>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-4569 insight type-insight status-publish has-post-thumbnail hentry insight_categories-accounting\" role=\"listitem\">\n\t\t\t<div class=\"elementor-post__card\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ifrs-10\/\" tabindex=\"-1\" ><div class=\"elementor-post__thumbnail\"><img decoding=\"async\" width=\"800\" height=\"600\" src=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-10.webp\" class=\"attachment-full size-full wp-image-16571\" alt=\"IFRS 10 - Consolidated Financial Statements\" srcset=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-10.webp 800w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-10-300x225.webp 300w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-10-768x576.webp 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/div><\/a>\n\t\t\t\t<div class=\"elementor-post__badge\">Accounting<\/div>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ifrs-10\/\" >\n\t\t\t\tIFRS 10 &#8211; Consolidated Financial Statements\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"elementor-post__read-more-wrapper\">\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ifrs-10\/\" aria-label=\"Read more about IFRS 10 &#8211; Consolidated Financial Statements\" tabindex=\"-1\" >\n\t\t\tView details \u00bb\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-post__meta-data\">\n\t\t\t\t\t<span class=\"elementor-post-date\">\n\t\t\t25\/03\/2024\t\t<\/span>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-4566 insight type-insight status-publish has-post-thumbnail hentry insight_categories-accounting\" role=\"listitem\">\n\t\t\t<div class=\"elementor-post__card\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ifrs-3\/\" tabindex=\"-1\" ><div class=\"elementor-post__thumbnail\"><img decoding=\"async\" width=\"800\" height=\"600\" src=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-3.webp\" class=\"attachment-full size-full wp-image-16574\" alt=\"IFRS 3 \u2013 Business Combinations\" srcset=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-3.webp 800w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-3-300x225.webp 300w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-3-768x576.webp 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/div><\/a>\n\t\t\t\t<div class=\"elementor-post__badge\">Accounting<\/div>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ifrs-3\/\" >\n\t\t\t\tIFRS 3 \u2013 Business Combinations\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"elementor-post__read-more-wrapper\">\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ifrs-3\/\" aria-label=\"Read more about IFRS 3 \u2013 Business Combinations\" tabindex=\"-1\" >\n\t\t\tView details \u00bb\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-post__meta-data\">\n\t\t\t\t\t<span class=\"elementor-post-date\">\n\t\t\t25\/03\/2024\t\t<\/span>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-4562 insight type-insight status-publish has-post-thumbnail hentry insight_categories-accounting\" role=\"listitem\">\n\t\t\t<div class=\"elementor-post__card\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ias-28\/\" tabindex=\"-1\" ><div class=\"elementor-post__thumbnail\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"600\" src=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IAS-28.webp\" class=\"attachment-full size-full wp-image-16576\" alt=\"IAS 28 - Investments in Associates and Joint Ventures\" srcset=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IAS-28.webp 800w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IAS-28-300x225.webp 300w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IAS-28-768x576.webp 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/div><\/a>\n\t\t\t\t<div class=\"elementor-post__badge\">Accounting<\/div>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ias-28\/\" >\n\t\t\t\tIAS 28 &#8211; Investments in Associates and Joint Ventures\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"elementor-post__read-more-wrapper\">\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ias-28\/\" aria-label=\"Read more about IAS 28 &#8211; Investments in Associates and Joint Ventures\" tabindex=\"-1\" >\n\t\t\tView details \u00bb\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-post__meta-data\">\n\t\t\t\t\t<span class=\"elementor-post-date\">\n\t\t\t25\/03\/2024\t\t<\/span>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-4556 insight type-insight status-publish has-post-thumbnail hentry insight_categories-accounting\" role=\"listitem\">\n\t\t\t<div class=\"elementor-post__card\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ias-27\/\" tabindex=\"-1\" ><div class=\"elementor-post__thumbnail\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"600\" src=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IAS-27.webp\" class=\"attachment-full size-full wp-image-16580\" alt=\"IAS 27 - Separate Financial Statements\" srcset=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IAS-27.webp 800w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IAS-27-300x225.webp 300w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IAS-27-768x576.webp 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/div><\/a>\n\t\t\t\t<div class=\"elementor-post__badge\">Accounting<\/div>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ias-27\/\" >\n\t\t\t\tIAS 27 &#8211; Separate Financial Statements\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"elementor-post__read-more-wrapper\">\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ias-27\/\" aria-label=\"Read more about IAS 27 &#8211; Separate Financial Statements\" tabindex=\"-1\" >\n\t\t\tView details \u00bb\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-post__meta-data\">\n\t\t\t\t\t<span class=\"elementor-post-date\">\n\t\t\t25\/03\/2024\t\t<\/span>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-4550 insight type-insight status-publish has-post-thumbnail hentry insight_categories-accounting\" role=\"listitem\">\n\t\t\t<div class=\"elementor-post__card\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ifrs-16\/\" tabindex=\"-1\" ><div class=\"elementor-post__thumbnail\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"600\" src=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-16.webp\" class=\"attachment-full size-full wp-image-16582\" alt=\"IFRS 16 - Leases\" srcset=\"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-16.webp 800w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-16-300x225.webp 300w, https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/uploads\/2024\/03\/IFRS-16-768x576.webp 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/div><\/a>\n\t\t\t\t<div class=\"elementor-post__badge\">Accounting<\/div>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ifrs-16\/\" >\n\t\t\t\tIFRS 16 &#8211; Leases\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"elementor-post__read-more-wrapper\">\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/brochure.crowevietnam.vn\/en\/insights\/ifrs-16\/\" aria-label=\"Read more about IFRS 16 &#8211; Leases\" tabindex=\"-1\" >\n\t\t\tView details \u00bb\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-post__meta-data\">\n\t\t\t\t\t<span class=\"elementor-post-date\">\n\t\t\t25\/03\/2024\t\t<\/span>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-55e97f7 e-flex e-con-boxed e-con e-parent\" data-id=\"55e97f7\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t<div class=\"elementor-element elementor-element-389fc03 e-con-full e-flex e-con e-child\" data-id=\"389fc03\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c7d1494 elementor-widget elementor-widget-heading\" data-id=\"c7d1494\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Our services<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-752bc7b elementor-widget elementor-widget-text-editor\" data-id=\"752bc7b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Does your business need to ensure its financial statements comply with Vietnamese or International accounting standards? Are you seeking a reliable accounting partner to support your financial management, from full outsourcing to enhancing the efficiency of your in-house team? 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details<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Insights Circular No. 99\/2025\/TT-BTC Crowe Vietnam has compiled and analyzed Circular No. 99\/2025\/TT-BTC to help businesses understand the latest updates and ensure accurate application in their accounting and financial operations. Latest insights Our services Does your business need to ensure its financial statements comply with Vietnamese or International accounting standards? Are you seeking a reliable [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":20950,"comment_status":"open","ping_status":"open","template":"elementor_header_footer","meta":{"_acf_changed":false,"content-type":"","site-sidebar-layout":"no-sidebar","site-content-layout":"","ast-site-content-layout":"full-width-container","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"insight_categories":[121],"class_list":["post-20949","insight","type-insight","status-publish","has-post-thumbnail","hentry","insight_categories-accounting"],"acf":{"group_admin_control":["show"],"group_admin":["show_module_main"],"group_page_field":{"":null,"header_custom":null,"body_custom":[{"acf_fc_layout":"book_1_1_0","book_list":[{"acf_fc_layout":"book_layout","book_id":"circular-99","book_list":[{"book_title":"Overview of Circular No. 99\/2025\/TT-BTC","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-1.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-1-active.png","book_content":"Circular No. 99\/2025\/TT-BTC (\"Circular 99\"), issued by the Ministry of Finance on October 27, 2025, marks a landmark shift in the corporate accounting regime in Vietnam. Building upon the foundation of Circular No. 200\/2014\/TT-BTC, Circular 99 is not merely a technical update or amendment; it represents a strategic restructuring of accounting philosophy. It moves toward international convergence, offering greater flexibility and aligning more closely with the needs of corporate financial management.\r\n\r\nThis publication provides a comprehensive overview of Circular 99, establishing the groundwork for an in-depth analysis of key changes in the subsequent sections.\r\n<p style=\"text-align: center;\"><strong>*** Please click on the tabs below to view the corresponding details ***<\/strong><\/p>\r\n[faq_1_0_0 id=\"circular-99-1\"]"},{"book_title":"Enterprise Autonomy in Adjusting the Chart of Accounts","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-2.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-2-active.png","book_content":"One of the most prominent features reflecting the spirit of \"increased decentralization and empowerment\" in Circular No. 99\/2025\/TT-BTC (Circular 99) is its approach to enterprise autonomy regarding the <strong>Chart of Accounts<\/strong>. Under the framework of Circular No. 200\/2014\/TT-BTC (Circular 200), enterprises primarily \"adjusted within a predefined framework\", meaning they could further detail existing accounts but found it difficult to alter the fundamental structure. In contrast, Circular 99 has significantly expanded this flexible space.\r\n\r\nAccordingly, enterprises are permitted to modify or supplement the names, symbols, structures, and recording content of accounting accounts, subject to specific conditions and responsibilities. It can be said that Circular 99 has transformed the Chart of Accounts from a \"largely fixed\" framework into a tool that can be designed to fit the practicalities of each enterprise, provided it does not distort the information presented in the Financial Statements. Empowerment comes with responsibility, and Circular 99 clearly embodies this principle.\r\n<p style=\"text-align: center;\"><strong>*** Please click on the tabs below to view the corresponding details ***<\/strong><\/p>\r\n[faq_1_0_0 id=\"circular-99-2\"]"},{"book_title":"The Accounting Chart of Accounts under Circular 99","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-3.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-3-active.png","book_content":"Circular 99 marks a landmark shift in the corporate accounting regime, as the Chart of Accounts (CoA) is no longer approached with a \"one-size-fits-all\" mindset. Instead of merely serving as a technical list for bookkeeping, the CoA under Circular 99 is designed to more closely reflect the economic substance of transactions, enhance transparency, and expand autonomy for enterprises in organizing their internal accounting.\r\n\r\nThis change directly impacts how enterprises recognize, track, and present financial information. Consequently, finance and accounting departments cannot simply \"update the list of accounts\"; they must proactively review and restructure their entire existing chart of accounts to align with the new philosophy of Circular 99.\r\n<p style=\"text-align: center;\"><strong>*** Please click on the tabs below to view the corresponding details ***<\/strong><\/p>\r\n[faq_1_0_0 id=\"circular-99-3\"]"},{"book_title":"Accounting Vouchers and Ledgers under Circular 99","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-4.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-4-active.png","book_content":"Circular No. 99\/2025\/TT-BTC (\"Circular 99\") does not only change the Chart of Accounts but also extends enterprise autonomy to two other pivotal components of the accounting system: <strong>accounting vouchers and accounting ledgers<\/strong>. These are the two critical links that directly determine the quality of input data and the ability to form reliable financial information in the Financial Statements.\r\n\r\nCompared to Circular 200, the foundational principles remain consistent with the Law on Accounting. However, the approach in Circular 99 is markedly more flexible: enterprises are empowered to design, modify, and supplement templates for vouchers and ledgers to suit their operational characteristics and management needs, provided they ensure that information is recorded truthfully, promptly, and fully, with the capacity for inspection and reconciliation.\r\n\r\nThe key point is this: f<strong>lexibility does not mean discretion<\/strong>. Every adjustment must be documented through I<strong>nternal Accounting Regulations<\/strong> (or equivalent documents), clarifying the scope of application, the basis for adjustment, and the enterprise's legal responsibility.\r\n<p style=\"text-align: center;\"><strong>*** Please click on the tabs below to view the corresponding details ***<\/strong><\/p>\r\n[faq_1_0_0 id=\"circular-99-4\"]"},{"book_title":"Key Changes in Circular 99 Compared to Circular 200","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-5.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-5-active.png","book_content":"Circular 99 marks a profound shift in the system of accounting principles and guidance compared to Circular 200. While Circular 200 was built on a relatively fixed framework with limited choices regarding accounting methods, Circular 99 embodies a transition toward a \"flexible but controlled\" philosophy.\r\n\r\nSpecifically, Circular 99 expands the options for applicable exchange rates, clarifies the initial recognition value of assets, and adds guidance for various specialized transactions such as biological assets, investment properties, and expenses pending allocation. Simultaneously, it removes certain capitalization mechanisms that no longer align with economic substance. These adjustments aim to ensure that accounting information reflects reality more accurately, enhancing transparency and comparability across enterprises.\r\n\r\nHowever, with greater autonomy comes a higher demand for accounting discipline. Enterprises are not merely granted choices in methods; they must establish clear accounting policies, apply them consistently, and provide full disclosures in the Financial Statement Notes. In this context, correctly understanding and implementing the new features of Circular 99 is a mandatory requirement rather than a technical option.\r\n\r\nTo clarify the extent of change brought by Circular 99, the following sections analyze specific principles and accounting instructions, comparing them directly with Circular 200. This thematic approach helps enterprises accurately identify areas requiring updates and shape their accounting system adjustments accordingly.\r\n<p style=\"text-align: center;\"><strong>*** Please click on the tabs below to view the corresponding details ***<\/strong><\/p>\r\n[faq_1_0_0 id=\"circular-99-5\"]"},{"book_title":"Preparation and Presentation of Financial Statements","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-6.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-6-active.png","book_content":"<strong>From the Going Concern Assumption to the Liquidation Basis: A Fundamental Shift<\/strong>\r\n\r\nCircular 99 does not merely replace Circular 200 regarding the chart of accounts and accounting techniques. At a deeper level, Circular 99 reflects a fundamental restructuring of accounting thinking, particularly in the preparation and presentation of Financial Statements (FS). While Circular 200 operated primarily on the \"normal business operations\" assumption, Circular 99 designs, for the first time, a complete accounting framework for the scenario where an enterprise is no longer a going concern a scenario prevalent in practice but previously lacking systematic treatment.\r\n\r\nEstablishing two parallel bases for FS preparation going concern and non-going concern demonstrates that Circular 99 has shifted from an \"operational accounting\" mindset to an \"economic reality reflecting\" mindset, even in worst-case scenarios. To fully understand the impact of Circular 99, these two FS preparation bases must be viewed as two entirely different measurement reference systems, rather than just a difference in presentation format.\r\n<p style=\"text-align: center;\"><strong>*** Please click on the tabs below to view the corresponding details ***<\/strong><\/p>\r\n[faq_1_0_0 id=\"circular-99-6\"]"},{"book_title":"Notes to the Financial Statements","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-7.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-7-active.png","book_content":"<p style=\"text-align: center;\"><strong>*** Please click on the tabs below to view the corresponding details ***<\/strong><\/p>\r\n[faq_1_0_0 id=\"circular-99-7\"]"},{"book_title":"Accounting Currency","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-8.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-8-active.png","book_content":"Circular 99 clarifies and details the criteria for determining the accounting currency compared to Circular 200, aiming to converge closer with the concept of Functional Currency under international practices (IAS 21).\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Regulations under Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Key Changes compared to Circular 200<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Criteria for Determining Accounting Currency<\/strong><\/td>\r\n<td style=\"width: 39%;\">The accounting currency is the primary currency used in the following transactions:\r\n\r\n1. Selling goods, providing services, and collecting cash from customers.\r\n2. Paying operating expenses.\r\n3. Mobilizing financial resources (issuing debt or equity instruments).\r\n4. Retaining\/accumulating funds.\r\n\r\nIf still undetermined, additional factors are considered, including: The currency used to mobilize financial resources and the currency regularly generated from business operations and retained.<\/td>\r\n<td style=\"width: 39%;\">Details the criteria for determining the accounting currency, particularly emphasizing the currency's role in core transactions and fund retention. This provides enterprises with a more solid legal basis when selecting a non-VND accounting currency.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Changing the Accounting Currency<\/strong><\/td>\r\n<td style=\"width: 39%;\">Enterprises are not permitted to change their accounting currency unless there is a major change in management and business operations leading to material changes in underlying transactions, events, and conditions.\r\n\r\n<strong>Timing:<\/strong> The change can only be implemented at the beginning of a new accounting year.<\/td>\r\n<td style=\"width: 39%;\">Removes the requirement that the enterprise must notify the direct managing tax authority of the change in accounting currency within 10 working days from the end of the accounting year (which was required under Circular 200).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>FS Preparation Principles Upon Change<\/strong><\/td>\r\n<td style=\"width: 39%;\">1. <strong>Opening Balances (Assets &amp; Liabilities):<\/strong> Converted to the new accounting currency using the average transfer buying and selling exchange rate of the commercial bank where the enterprise regularly transacts, as of the date of the change.\r\n\r\n2. <strong>Comparative Information (Income Statement &amp; Statement of Cash Flows):<\/strong> Converted using the average transfer buying and selling exchange rate of the commercial bank where the enterprise regularly transacts, for the period immediately preceding the period of change.<\/td>\r\n<td style=\"width: 39%;\">Circular 99 clearly stipulates the use of the average transfer exchange rate for comparative information, removing Circular 200's condition of \"if the average rate approximates the actual rate,\" thereby making the application much clearer and more straightforward.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Disclosure Requirements<\/strong><\/td>\r\n<td style=\"width: 39%;\">Enterprises must present the reasons for changing the accounting currency and the impacts of this change on the Financial Statements within the Notes.<\/td>\r\n<td style=\"width: 39%;\">Enhances overall transparency and accountability.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>"},{"book_title":"Translating Financial Statements from Foreign Currency to VND","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-9.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-9-active.png","book_content":"Circular 99 has introduced notable changes regarding the translation of Financial Statements (FS) prepared in a foreign currency into Vietnamese Dong (VND) for submission to State authorities or for public disclosure.\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Item<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Applicable Exchange Rate under Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Key Changes and Impacts<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Audit Requirement for Translated FS<\/strong><\/td>\r\n<td style=\"width: 39%;\">There is no mention of a mandatory audit for FS translated from a foreign currency to VND. However, if the law requires the enterprise's FS to be audited by an independent audit firm, the audited FS is the one presented in Vietnamese Dong.<\/td>\r\n<td style=\"width: 39%;\">Reduces the administrative burden and compliance costs for enterprises.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Assets and Liabilities<\/strong><\/td>\r\n<td style=\"width: 39%;\">The average transfer buying and selling exchange rate of the commercial bank where the enterprise regularly transacts, at the end of the accounting period.<\/td>\r\n<td style=\"width: 39%;\">Circular 99 specifically mandates the use of the average transfer buying and selling exchange rate, replacing the actual transaction rate (transfer rate) required under Circular 200.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Owner's Equity<\/strong><\/td>\r\n<td style=\"width: 39%;\">The actual transaction exchange rate at the date of capital contribution (for contributed capital and share premium).<\/td>\r\n<td style=\"width: 39%;\">Both Circulars retain the principle of translating owner's equity at the exchange rate on the contribution date. Circular 99 clarifies the specific items within owner's equity.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Asset Revaluation Differences<\/strong><\/td>\r\n<td style=\"width: 39%;\">Translated to VND at the actual transaction exchange rate at the date of revaluation.<\/td>\r\n<td style=\"width: 39%;\">Both Circulars retain the principle of translating asset revaluation differences at the actual transaction exchange rate at the revaluation date.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Retained Earnings and Extracted Funds (Undistributed after-tax profit)<\/strong><\/td>\r\n<td style=\"width: 39%;\">Retained earnings and funds extracted from retained earnings generated during each period are translated to VND by calculating based on the items of the Income Statement. The remaining retained earnings balance must be translated to VND at the book exchange rate of the retained earnings item.<\/td>\r\n<td style=\"width: 39%;\">Circular 99 provides detailed guidance on the translation of retained earnings and related funds, ensuring consistency with the translation of items on the Income Statement.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Income Statement &amp; Statement of Cash Flows<\/strong><\/td>\r\n<td style=\"width: 39%;\">Translated to VND at the actual transaction exchange rate at the time the transaction occurs.\r\n\r\nIf the average exchange rate for the accounting period approximates the actual exchange rate at the transaction time (i.e., the difference does not exceed the spot exchange rate band prescribed by the State Bank of Vietnam), the average exchange rate for the period may be applied (if chosen).<\/td>\r\n<td style=\"width: 39%;\">Removes the strict \"difference not exceeding 3%\" rule for applying the average exchange rate. This increases flexibility in applying exchange rates, helping to simplify daily accounting if exchange rates are relatively stable.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Accounting for Exchange Differences on Translation<\/strong><\/td>\r\n<td style=\"width: 39%;\">Exchange differences arising from the translation of the FS are recognized in the \"Foreign exchange differences\" indicator under the owner's equity section of the Statement of Financial Position.<\/td>\r\n<td style=\"width: 39%;\">Aligns with international practice (IAS 21), which recognizes translation differences in Other Comprehensive Income (OCI) rather than in the income statement, thereby avoiding profit volatility.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;"},{"book_title":"Transition Rules and Opening Balance Adjustments","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-10.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-10-active.png","book_content":"Articles 29 and 30 of Circular 99 clearly stipulate the conversion of balances on accounting books and the transitional provisions. These are two pivotal articles acting as a technical roadmap, guiding enterprises through the transition process in a unified and principled manner while ensuring the continuity of accounting data.\r\n<p style=\"text-align: center;\"><strong>*** Please click on the tabs below to view the corresponding details ***<\/strong><\/p>\r\n[faq_1_0_0 id=\"circular-99-10\"]"},{"book_title":"Requirements for Establishing Internal Governance Regulations and Organizing Internal Control","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-11.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-11-active.png","book_content":"<p style=\"text-align: center;\"><strong>*** Please click on the tabs below to view the corresponding details ***<\/strong><\/p>\r\n[faq_1_0_0 id=\"circular-99-11\"]"},{"book_title":"Comparison of Differences Between Circular 99 and Current Corporate Income Tax (CIT) Regulations ","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-12.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-12-active.png","book_content":"<p style=\"text-align: center;\"><strong>*** Please click on the tabs below to view the corresponding details ***<\/strong><\/p>\r\n[faq_1_0_0 id=\"circular-99-12\"]"},{"book_title":"Comparing Circular 99 with IFRS","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-13.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-13-active.png","book_content":"Circular 99 was issued to guide the corporate accounting regime in Vietnam, inheriting appropriate regulations from Circular 200 and updating certain contents to overcome limitations, while simultaneously approaching international practices based on the foundation of current Vietnamese Accounting Standards (VAS).\r\n\r\nCircular 99 is considered a critical step in Vietnam's roadmap toward IFRS integration, embedding several IFRS principles into the Corporate Accounting Regime. However, Circular 99 fundamentally remains a national accounting framework, and significant differences compared to IFRS still exist. Below is a detailed comparison table between Circular 99 and the corresponding IFRS standards.\r\n<p style=\"text-align: center;\"><strong>*** Please click on the tabs below to view the corresponding details ***<\/strong><\/p>\r\n[faq_1_0_0 id=\"circular-99-13\"]"},{"book_title":"What Enterprises Need to Do When Applying Circular 99","book_info":"https:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-14.png\r\nhttps:\/\/brochure.crowevietnam.vn\/en\/wp-content\/themes\/astra-child\/Module\/book_1_0_0\/images\/number-14-active.png","book_content":"The transition from Circular 200 to Circular 99 is not merely a technical change but requires systematic preparation in terms of processes, human resources, and technology. Below are 10 specific action steps enterprises should take to ensure a smooth, accurate, and timely transition.\r\n<h4><span style=\"font-size: 18px;\">14.1. Review the Current Chart of Accounts and Accounting Books<\/span><\/h4>\r\nEnterprises need to comprehensively review their current chart of accounts and compare it with the new chart of accounts under Circular 99. Identifying which accounts are renamed (15 accounts), newly added (17 accounts), or eliminated (49 accounts) will help enterprises proactively adjust their accounting software, accounting processes, and books. This is the foundational step to ensure data consistency and avoid discrepancies when entering the first accounting period under the new circular.\r\n<h4><span style=\"font-size: 18px;\">14.2. Update Internal Accounting Policies<\/span><\/h4>\r\nEvery enterprise has its own specific business operations and organizational structure; therefore, internal accounting policies must be reviewed and adjusted to align with the new regulations. This includes revenue recognition principles, expense classification, allocation norms, asset and tool classification criteria, depreciation periods and methods, as well as provisioning principles. Standardizing internal accounting policies early will help the enterprise operate synchronously and consistently with the new regulations from day one.\r\n<h4><span style=\"font-size: 18px;\">14.3. Check the Adaptability of Accounting Software<\/span><\/h4>\r\nCircular 99 introduces significant adjustments to the account structure, accounting principles, and financial statement templates. Enterprises need to work early with their accounting software providers to update to a compatible version, ensuring that accounting, closing, and reporting functions operate accurately without data errors or template misalignments. This is a high-risk area if enterprises are complacent or delay. Enterprises should conduct testing in a simulated environment before official implementation.\r\n<h4><span style=\"font-size: 18px;\">14.4. Familiarize with the New Financial Reporting and Disclosure System<\/span><\/h4>\r\nSeveral indicators in the financial statements will change in terms of nomenclature, presentation placement, or require more detailed disclosures compared to Circular 200. The accounting department needs to carefully study the new templates, identify which indicators directly affect the enterprise's operations, and thereby prepare a plan to collect the necessary data well before the reporting period. Pay special attention to the enhanced disclosure requirements regarding accounting policies, accounting judgments, and complex transactions.\r\n<h4><span style=\"font-size: 18px;\">14.5. Conduct Internal Training for the Accounting Team<\/span><\/h4>\r\nNot only the Chief Accountant but all personnel in the accounting department, from general accountants and detailed accountants to data entry clerks\u2014must thoroughly grasp the changes in Circular 99. Enterprises should organize internal training sessions, thematic workshops, or issue detailed guidance documents to ensure the entire team shares the same understanding and unified execution processes. Investing in personnel training will help minimize errors and increase efficiency during the transition phase.\r\n<h4><span style=\"font-size: 18px;\">14.6. Engage Early with Auditors and Tax Authorities<\/span><\/h4>\r\nWorking proactively with independent auditors and direct managing tax officers helps the enterprise clearly understand the practical application of the new regulations, especially for complex items like long-term contract revenue recognition, cost allocation, determining the cost of goods sold, or related-party transactions. Discussing and aligning viewpoints from the outset will minimize the need for subsequent adjustments or explanations, ensuring compliance with both accounting and tax regulations.\r\n<h4><span style=\"font-size: 18px;\">14.7. Update Accounting-Related Internal Control Processes<\/span><\/h4>\r\nAs the chart of accounts, accounting principles, and reporting templates change, internal control processes such as voucher approval, debt reconciliation, periodic checks, and reporting must also be reviewed and updated accordingly. A clear and rigorous internal control system will help the enterprise mitigate the risks of errors and fraud, ensuring reliable financial information, which is especially crucial during the transition phase when employees are still familiarizing themselves with the new regulations.\r\n<h4><span style=\"font-size: 18px;\">14.8. Review Contracts, Vouchers, and Archiving Processes<\/span><\/h4>\r\nThe methods for recognizing revenue, expenses, exchange rates, payables\/receivables, and other transactions under Circular 99 may differ from current practices under Circular 200. Accountants need to review current contract templates, accounting vouchers, and invoices to ensure their content, format, and archiving requirements comply with the new regulations. This not only prevents legal disputes or complications but also ensures transparency and auditability.\r\n<h4><span style=\"font-size: 18px;\">14.9. Prepare a Plan for Opening Balance Conversion<\/span><\/h4>\r\nPrior to January 1, 2026 (the effective date of Circular 99), enterprises must close their 2025 accounting books, reconcile ending balances, and prepare a detailed conversion table mapping the old chart of accounts (Circular 200) to the new chart of accounts (Circular 99). This is the most critical step to ensure that data carried over to the 2026 financial year is seamless, accurate, and reconcilable. Enterprises should prepare an account mapping table in advance and test the conversion process on actual data.\r\n<h4><span style=\"font-size: 18px;\">14.10. Develop a Comprehensive Transition Plan and Clearly Assign Responsibilities<\/span><\/h4>\r\nEnterprises need to establish a detailed roadmap with specific timelines for each task: upgrading accounting software, converting the chart of accounts, standardizing vouchers and contracts, conducting internal training, system testing, and official deployment. The Chief Accountant should act as the central coordinator (project manager), working closely with the IT department, internal audit, the legal department, and executive management to ensure timelines are met and arising issues are addressed promptly. A clear plan with specific milestones will help the entire organization move in the same direction and achieve a successful transition.\r\n<h4><span style=\"font-size: 18px;\">Conclusion<\/span><\/h4>\r\nThe transition from Circular 200 to Circular 99 is a major project for the accounting department and the entire enterprise. Thorough, systematic, and early preparation will help the enterprise avoid unnecessary risks, ensure legal compliance, and elevate the quality of financial information. Circular 99 is not just a set of technical rules but an opportunity for enterprises to modernize their accounting systems, enhance governance capabilities, and move closer to international accounting standards."}]}]},{"acf_fc_layout":"faq_1_0_0","faq_list":[{"acf_fc_layout":"faq_layout","faq_id":"circular-99-1","faq_list":[{"faq_title":"1.1. Objectives of Issuance - Redefining the Role of Accounting in Enterprises","faq_content":"Circular 99 was introduced against the backdrop of a rapidly evolving business environment, increasingly diverse economic transactions, and rising demands for financial transparency. The core objective of this Circular extends beyond replacing an outdated document; it aims to reshape the corporate accounting system toward information standardization, enhancing the quality of Financial Statements and providing more effective support for internal governance.\r\n\r\nConsequently, accounting data must not only present a \"true and fair view\" but also be useful for decision-making. Accounting is positioned in its rightful role as the \"<strong>language of business,<\/strong>\" rather than just a compliance-driven tool for recording transactions.\r\n\r\nA notable feature of Circular 99 is the shift in regulatory approach: instead of imposing rigid technical requirements, the Circular expands decentralization and empowerment within accounting operations, granting enterprises greater autonomy. Many previously prescriptive and restrictive regulations have been streamlined, reducing administrative procedures and allowing businesses the latitude to organize accounting systems tailored to their specific operational characteristics.\r\n\r\nThe system of accounting vouchers, ledgers, and the chart of accounts is no longer bound by mandatory templates. Enterprises are empowered to design these flexibly, provided that the information presented in the Financial Statements remains consistent, reliable, and reflects the economic substance of transactions. This emphasis on Financial Statements underscores the clear orientation of Circular 99: accounting must serve financial transparency, risk management, and decision support, rather than merely ensuring formalistic compliance."},{"faq_title":"1.2. Scope of Regulation - Covering the Entire Accounting Operational Structure","faq_content":"Circular 99 comprehensively regulates the corporate accounting system, ranging from source documents and the chart of accounts to bookkeeping principles and the preparation and presentation of Financial Statements. Compared to previous regimes, the voucher and ledger system is designed with a more \"open\" approach, allowing enterprises to choose suitable models as long as they ensure completeness, consistency, and auditability.\r\n\r\nThe chart of accounts continues to serve as the \"backbone\" of corporate accounting but is applied more flexibly, free from predefined, restrictive molds. Regarding Financial Statements, Circular 99 maintains the principles of truthfulness and fairness while emphasizing the role of core economic information in assessing the financial health and operational performance of the enterprise.\r\n\r\nA critical point to note is that Circular 99 only regulates the <strong>accounting sub-system<\/strong>; the determination of tax obligations remains subject to prevailing tax laws. While accounting and taxation are closely linked, they are not identical. Enterprises must clearly distinguish between these two systems to ensure full regulatory compliance."},{"faq_title":"1.3. Applicable Subjects","faq_content":"Circular 99 is designed for the majority of enterprises in Vietnam, with a clear and identifiable scope:\r\n<ul>\r\n \t<li><strong>Mandatory application<\/strong>: For enterprises across all sectors and economic components.<\/li>\r\n \t<li><strong>Credit institutions and foreign bank branches<\/strong>: Continue to follow accounting guidance from the State Bank of Vietnam due to their specialized operational nature.<\/li>\r\n \t<li><strong>Small and Medium Enterprises (SMEs), non-public entities, and other accounting units<\/strong>: May choose to apply Circular 99 if deemed appropriate.<\/li>\r\n<\/ul>\r\nGeneral business entities are the group directly impacted and must prepare for the transition starting from the fiscal year beginning in 2026. Specialized units, even if they have the option to apply it, are encouraged to consider early adoption to avoid delays in data standardization and reporting system upgrades."},{"faq_title":"1.4. Effectiveness - A Non-Deferrable Transition Milestone","faq_content":"This Circular takes effect from <strong>January 1, 2026<\/strong>, and applies to fiscal years beginning on or after January 1, 2026. Simultaneously, Circular 99 officially supersedes the following documents: Circular No. 200\/2014\/TT-BTC, Circular No. 75\/2015\/TT-BTC, Circular No. 53\/2016\/TT-BTC, and Circular No. 195\/2012\/TT-BTC. This necessitates a comprehensive and non-deferrable transition for enterprises currently applying the old accounting regimes."},{"faq_title":"1.5. Practical Significance - Specific Impacts on Enterprises and the Financial System","faq_content":"The greatest significance of Circular 99 lies not just in regulatory changes, but in the shift in how enterprises operate and record financial information. The Circular creates a more flexible accounting environment where businesses can select organizational methods that fit their business models. This ensures that accounting data reflects reality more accurately and reduces information distortion caused by \"following templates.\"\r\n\r\nA flexible accounting system not only improves transaction processing speed but also enhances the quality of output information, particularly in Financial Statements, the core documentation for investors, banks, auditors, and Executive Boards in assessing corporate risks and potential. When information becomes more transparent and consistent, financial oversight is strengthened, and strategic decisions are made on a foundation of more reliable data.\r\n\r\nFrom a macroeconomic perspective, Circular 99 contributes to the formation of a unified and highly comparable financial database among enterprises, as well as between the domestic and regional markets. This is a vital foundation for supporting international integration, capital attraction, <strong>Mergers and Acquisitions (M&amp;A)<\/strong> activities, and preparing for the further advancement of Vietnamese enterprises."},{"faq_title":"1.6. Relationship between Circular 99, the Law on Accounting, and VAS","faq_content":"Within the accounting legal framework, Circular 99 serves as the detailed guidance for implementing the <strong>Law on Accounting<\/strong>, translating legislated principles into specific practical instructions for enterprises. The Law on Accounting acts as the \"framework,\" while Circular 99 is the \"tool\" for implementing that framework in practice; therefore, all provisions of the Circular must comply with and not contradict the Law on Accounting.\r\n\r\nFurthermore, Circular 99 is built upon the foundation of <strong>Vietnamese Accounting Standards<\/strong> (VAS). While VAS stipulates the principles for recognition and presentation, Circular 99 guides how to apply these principles to specific accounting transactions. The provisions in Circular 99 should be viewed in the context of the ongoing refinement of the Vietnamese Accounting Standards system, following a roadmap toward convergence with international practices (International Financial Reporting Standards - IFRS). Many contents in Circular 99 are developed based on direct or indirect references to current accounting standards, while exhibiting increasing compatibility with the approaches of international standards expected to be researched, issued, or updated in the future. In this context, Circular 99 serves as a crucial transitional step, ensuring consistency with the current standard framework while creating a practical foundation for the future implementation of new accounting standards.\r\n\r\nIn summary:\r\n<ul>\r\n \t<li><strong>VAS<\/strong> is the foundational principle.<\/li>\r\n \t<li><strong>The Law on Accounting<\/strong> is the legal framework.<\/li>\r\n \t<li><strong>Circular 99<\/strong> is the practical tool that helps enterprises transform accounting principles into a specific and effective operational system.<\/li>\r\n<\/ul>"}]},{"acf_fc_layout":"faq_layout","faq_id":"circular-99-2","faq_list":[{"faq_title":"2.1. From \"Application within a Framework\" (Circular 200) to \"Proactive Design\" (Circular 99)","faq_content":"Under Circular 200, enterprises were granted a certain degree of flexibility. Specifically, they could open level-2 or level-3 sub-accounts for those not detailed in the standard Chart of Accounts. This detailing served internal management requirements but still had to comply with the content, structure, and accounting methods of the corresponding general accounts prescribed by the accounting regime.\r\n\r\nCircular 99 goes a step further. It allows enterprises to modify and supplement the <strong>names, symbols, structures, and recording content<\/strong> of the accounts guided in Appendix II. The objective is to ensure the Chart of Accounts more closely reflects the operational characteristics and governance requirements of each specific enterprise. This approach signifies a shift in perspective: regulatory authorities provide the framework of principles and orientation, while enterprises are proactive in designing an accounting system that aligns with their actual operations.\r\n\r\nThe key differences are:\r\n<ul>\r\n \t<li><strong>Under Circular 200<\/strong>: Enterprises \"applied within a fixed mold.\"<\/li>\r\n \t<li><strong>Under Circular 99<\/strong>: Enterprises are permitted to redesign the structure of the Chart of Accounts, provided they remain grounded in accounting principles and the Financial Statement framework.<\/li>\r\n<\/ul>"},{"faq_title":"2.2. Conditions for Modifying or Supplementing Accounting Accounts","faq_content":"Circular 99 does not grant authority unconditionally. The right to modify or supplement the Chart of Accounts must be exercised within clear boundaries.\r\n\r\nFirst, adjustments must ensure that transactions are classified and systematized according to their <strong>true economic substance<\/strong> without overlapping subjects. An enterprise may change the name, symbol, or accounting content of an account, but it must not allow the same transaction to be \"hidden\" under multiple different accounts or blur the boundaries between accounting objects.\r\n\r\nSecond, enterprises must strictly adhere to <strong>accounting principles<\/strong>. Autonomy does not permit the creation of accounts with accounting treatments that contradict the nature of the transaction or distort the principles of recognition and presentation. Accounts may be new in form, but they must not \"bend\" accounting logic.\r\n\r\nMost importantly, modifications or supplements must <strong>not alter or affect the items and information presented in the Financial Statements<\/strong>. This is the fundamental limit of the autonomy mechanism. Enterprises can be flexible at the organizational level of bookkeeping, but the final destination, the line items on the Financial Statements must still fully comply with the requirements regarding content, structure, and presentation methods as prescribed. In other words, enterprises are allowed to change the \"path of recording\" but cannot change the \"destination\" on the Financial Statements."},{"faq_title":"2.3. Responsibility to Issue Internal Accounting Regulations","faq_content":"A key requirement of Circular 99 is that when an enterprise modifies or supplements its Chart of Accounts, it must <strong>issue Internal Accounting Regulations<\/strong> (or an equivalent document) regarding these adjustments.\r\n\r\nAutonomy, therefore, does not equate to arbitrary flexibility or application based on \"implicit understanding\" within the accounting department. The issuance of these regulations is the foundation for ensuring consistency in bookkeeping between accountants and across accounting periods. It also provides a basis for future inspection, control, and reconciliation, including internal audits, independent audits, and state regulatory oversight.\r\n\r\nFrom a governance perspective, this requirement forces enterprises to upgrade their internal accounting capacity: moving beyond mere transaction recording to building, operating, and maintaining an accounting system with clear rules, guided documentation, and auditability."},{"faq_title":"2.4. Extending Autonomy to Accounting Ledgers and Financial Statements","faq_content":"Circular 99 does not stop at customizing the Chart of Accounts; it extends the scope of flexibility to <strong>accounting ledgers and source documents<\/strong>. Accordingly, enterprises are permitted to design additional forms or modify and supplement ledger templates compared to the guidance in Appendix III of this Circular. This is conditional upon compliance with Article 24 of the Law on Accounting: reflecting information fully, timely, truthfully, and transparently; being easy to inspect and control; and allowing for the reconciliation of the enterprise's assets and capital.\r\n\r\nWhen designing or modifying ledger templates, enterprises must also issue Internal Accounting Regulations (or equivalent documents) as a basis for implementation. Thus, autonomy over books and records is not about discretionary application but must be standardized within an internal control framework.\r\n\r\nFurthermore, while Circular 99 allows flexibility in the regime of vouchers, books, and accounts, it maintains the regulatory focus on the information presented in the Financial Statements. Enterprises may adjust how data is recorded, analyzed, and synthesized, but the final result must be a set of Financial Statements that fully complies with regulations on line items, content, and presentation methods.\r\n\r\nIn this context, adding line items or reports for internal management is appropriate. Enterprises can design additional management reports or internal disclosures to dive deeper into accounting data, provided these additions do not alter, contradict, or obscure mandatory items on the statutory Financial Statements."},{"faq_title":"2.5. Effectively Utilizing Autonomy within the Compliance Framework","faq_content":"For finance and accounting heads, the issue is not merely listing the rights granted, but rather how to transform that autonomy into an effective management tool. Autonomy under Circular 99 is only truly valuable when it stems from <strong>actual management needs<\/strong> rather than superficial changes.\r\n\r\nThe design of the Chart of Accounts and accounting ledgers should start with the question of what the enterprise needs to analyze and control for instance, by product, project, contract, or region. Each account or subsidiary ledger must have a clear scope of reflection, with no overlap, and must be easily controlled and aligned with the requirement to \"classify by economic substance without overlapping subjects\" set by Circular 99.\r\n\r\nEvery change to accounts, books, or vouchers must be documented through Internal Accounting Regulations. Without this step, autonomy can easily become a risk, particularly during personnel transitions or during inspections and audits. Simultaneously, all adjustments must be reverse-reviewed from the perspective of the Financial Statements to ensure that the presented items still fully comply with content and presentation regulations.\r\n\r\nCircular 99 does not merely allow \"adding detailed sub-accounts\" as before; it empowers enterprises to proactively <strong>redesign the system of accounts, ledgers, and vouchers<\/strong> based on governance needs. However, this right comes with clear responsibilities: do not distort the nature of transactions, do not alter Financial Statement information, and ensure control through a unified internal accounting framework. Circular 99 opens the door to autonomy, but it is the enterprise that decides whether that autonomy becomes a management advantage or a compliance risk."}]},{"acf_fc_layout":"faq_layout","faq_id":"circular-99-3","faq_list":[{"faq_title":"3.1. The Chart of Accounts under Circular 99: From Detailing to Flexible Redesign","faq_content":"Under Circular 200, the flexibility of an enterprise was largely limited to opening level-2 or level-3 sub-accounts to serve internal management needs, while the foundational structure of the CoA remained virtually unchanged.\r\n\r\nCircular 99 goes significantly further by allowing enterprises to modify <strong>the names, symbols, structures, and recording content<\/strong> of accounting accounts. however, this authority comes with disciplined conditions: transactions must be classified correctly according to their economic substance, there must be no overlapping subjects, the information presented in the Financial Statements must not be distorted, and all changes must be documented through Internal Accounting Regulations.\r\n\r\nIn short, Circular 200 allowed for detailing, while Circular 99 allows for redesigning, albeit within a clear framework of control."},{"faq_title":"3.2. Core Changes from Circular 200 to Circular 99","faq_content":"The table below summarizes the key changes in the accounting chart of accounts between Circular 200 and Circular 99, reflecting the shift in classification logic and the approach to economic substance.\r\n\r\n<strong>Renaming of Accounts:<\/strong>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 12%; text-align: center;\"><strong>Account No.<\/strong><\/td>\r\n<td style=\"width: 28%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 28%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 32%; text-align: center;\"><strong>Notes<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">112<\/td>\r\n<td style=\"width: 28%;\">Bank deposits<\/td>\r\n<td style=\"width: 28%;\">Demand deposits<\/td>\r\n<td style=\"width: 32%;\" rowspan=\"14\">The renaming of accounts under Circular 99 aims to clarify the economic substance and recognition methods rather than just reflecting form or traditional bookkeeping habits. The new names emphasize the timing of recognition, allocation principles, and scope of use (e.g., expenses\/revenue pending allocation, demand deposits), while aligning more closely with international accounting terminology and logic. Consequently, the CoA becomes more consistent and transparent but requires enterprises to review their accounting policies and financial statement presentation.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">155<\/td>\r\n<td style=\"width: 28%;\">Finished goods<\/td>\r\n<td style=\"width: 28%;\">Products<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">158<\/td>\r\n<td style=\"width: 28%;\">Goods in tax-suspension warehouse<\/td>\r\n<td style=\"width: 28%;\">Materials and supplies in tax-suspension warehouse<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">2413<\/td>\r\n<td style=\"width: 28%;\">Major repairs of fixed assets<\/td>\r\n<td style=\"width: 28%;\">Periodic repair and maintenance of fixed assets<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">242<\/td>\r\n<td style=\"width: 28%;\">Prepaid expenses<\/td>\r\n<td style=\"width: 28%;\">Expenses pending allocation<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">244<\/td>\r\n<td style=\"width: 28%;\">Pledges, mortgages, deposits, and collateral<\/td>\r\n<td style=\"width: 28%;\">Deposits and collateral<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">337<\/td>\r\n<td style=\"width: 28%;\">Payments according to planned progress of construction contracts<\/td>\r\n<td style=\"width: 28%;\">Payments according to progress of construction contracts<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">3387<\/td>\r\n<td style=\"width: 28%;\">Unearned revenue<\/td>\r\n<td style=\"width: 28%;\">Revenue pending allocation<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">4112<\/td>\r\n<td style=\"width: 28%;\">Share premium<\/td>\r\n<td style=\"width: 28%;\">Capital surplus<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">419<\/td>\r\n<td style=\"width: 28%;\">Treasury shares<\/td>\r\n<td style=\"width: 28%;\">Reacquired own shares<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">4211<\/td>\r\n<td style=\"width: 28%;\">Undistributed post-tax profit of previous years<\/td>\r\n<td style=\"width: 28%;\">Accumulated undistributed post-tax profit until the end of previous year<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">6232<\/td>\r\n<td style=\"width: 28%;\">Raw materials and materials costs<\/td>\r\n<td style=\"width: 28%;\">Materials costs<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">6272<\/td>\r\n<td style=\"width: 28%;\">Raw materials and materials costs<\/td>\r\n<td style=\"width: 28%;\">Materials costs<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">6412<\/td>\r\n<td style=\"width: 28%;\">Raw materials, materials, and packaging costs<\/td>\r\n<td style=\"width: 28%;\">Materials and packaging costs<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<strong>Addition of New Accounts:<\/strong>\r\n<table style=\"border-collapse: collapse; width: 100%; height: 1036px;\" border=\"1\">\r\n<tbody>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; text-align: center; height: 59px;\"><strong>Account No.<\/strong><\/td>\r\n<td style=\"width: 28%; text-align: center; height: 59px;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 28%; text-align: center; height: 59px;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 32%; text-align: center; height: 59px;\"><strong>Notes<\/strong><\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">1383<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Special consumption tax on imports<\/td>\r\n<td style=\"width: 32%; height: 977px;\" rowspan=\"16\">The addition of new accounts in Circular 99 aims to fill accounting gaps that Circular 200 did not cover, particularly in biological assets, agriculture, and tax obligations. These accounts reflect an approach based on asset life cycles, exploitation purposes, and the nature of obligations, aligning more clearly with international practices such as <strong>IAS 41 (Agriculture)<\/strong> and the context of integration, including the <strong>Global Minimum Tax<\/strong>. Through this, Circular 99 enhances transparency and practical relevance while placing higher demands on an enterprise's analytical capacity and accounting policies.<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">215<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Biological assets<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">2151<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Livestock for periodic products<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">21511<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Immature livestock for periodic products<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">21512<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Mature livestock for periodic products<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">215121<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Historical cost<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">215122<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Accumulated depreciation<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">2152<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Livestock for one-time products<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">2513<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Seasonal crops or crops for one-time products<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">2414<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Fixed asset upgrades and renovations<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">2295<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Provision for impairment of biological assets<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">332<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Dividends and profits payable<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">6275<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Taxes, fees, and charges<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">6415<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Taxes, fees, and charges<\/td>\r\n<\/tr>\r\n<tr style=\"height: 59px;\">\r\n<td style=\"width: 12%; height: 59px;\">82111<\/td>\r\n<td style=\"width: 28%; height: 59px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 59px;\">Current CIT expenses per CIT Law<\/td>\r\n<\/tr>\r\n<tr style=\"height: 92px;\">\r\n<td style=\"width: 12%; height: 92px;\">82112<\/td>\r\n<td style=\"width: 28%; height: 92px;\">N\/A<\/td>\r\n<td style=\"width: 28%; height: 92px;\">Additional CIT expenses per Global Minimum Tax regulations<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<strong>Removal of Detailed Sub-accounts:<\/strong>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 12%; text-align: center;\"><strong>Account No.<\/strong><\/td>\r\n<td style=\"width: 28%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 28%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 32%; text-align: center;\"><strong>Notes<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 12%;\">1111<\/td>\r\n<td style=\"width: 28%;\">Vietnamese currency<\/td>\r\n<td style=\"width: 28%;\">Removed<\/td>\r\n<td style=\"width: 32%;\" rowspan=\"48\">The removal of detailed accounts in Circular 99 represents a shift from account-code-based accounting to accounting based on transaction substance and recognition principles. Form-based enumerative accounts are eliminated to reduce mechanical bookkeeping, forcing enterprises to focus on the purpose of holding, measurement methods, allocation, and presentation according to accounting policies. This is a clear step toward IFRS logic, increasing flexibility but requiring higher professional competence in accounting organization.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1112<\/td>\r\n<td>Foreign currencies<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1113<\/td>\r\n<td>Monetary gold<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1121<\/td>\r\n<td>Vietnamese currency<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1122<\/td>\r\n<td>Foreign currencies<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1123<\/td>\r\n<td>Monetary gold<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1131<\/td>\r\n<td>Vietnamese currency<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1132<\/td>\r\n<td>Foreign currencies<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1212<\/td>\r\n<td>Bonds<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1218<\/td>\r\n<td>Other securities and financial instruments<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1385<\/td>\r\n<td>Receivables from equitization<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1531<\/td>\r\n<td>Tools and instruments<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1532<\/td>\r\n<td>Returnable packaging<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1534<\/td>\r\n<td>Spare parts<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1557<\/td>\r\n<td>Real estate finished goods<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1611<\/td>\r\n<td>Project expenditures - previous year<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>1612<\/td>\r\n<td>Project expenditures - current year<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>2121<\/td>\r\n<td>Tangible fixed assets - finance lease<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>2122<\/td>\r\n<td>Intangible fixed assets - finance lease<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>2131<\/td>\r\n<td>Land use rights<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>2132<\/td>\r\n<td>Publishing rights<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>2133<\/td>\r\n<td>Copyrights, patents<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>2134<\/td>\r\n<td>Trademarks<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>2135<\/td>\r\n<td>Computer software<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>2136<\/td>\r\n<td>Licenses and franchise licenses<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>2138<\/td>\r\n<td>Other intangible fixed assets<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>3341<\/td>\r\n<td>Payables to employees<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>3348<\/td>\r\n<td>Payables to other laborers<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>34311<\/td>\r\n<td>Bond face value<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>34312<\/td>\r\n<td>Bond discount<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>34313<\/td>\r\n<td>Bond premium<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>417<\/td>\r\n<td>Enterprise reorganization assistance fund<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>4131<\/td>\r\n<td>Exchange rate differences from revaluation of foreign currency items<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>4132<\/td>\r\n<td>Exchange rate differences in pre-operating stage<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>441<\/td>\r\n<td>Capital for construction in progress<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>461<\/td>\r\n<td>Project funding source<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>4611<\/td>\r\n<td>Project funding source - previous year<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>4612<\/td>\r\n<td>Project funding source - current year<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>466<\/td>\r\n<td>Funding source for fixed assets<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>5111<\/td>\r\n<td>Revenue from sale of goods<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>5112<\/td>\r\n<td>Revenue from sale of finished goods<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>5113<\/td>\r\n<td>Revenue from service rendering<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>5114<\/td>\r\n<td>Revenue from subsidies and price subsidies<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>5117<\/td>\r\n<td>Revenue from investment property business<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>5118<\/td>\r\n<td>Other revenue<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>6111<\/td>\r\n<td>Purchase of raw materials and materials<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>6112<\/td>\r\n<td>Purchase of goods<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>631<\/td>\r\n<td>Production cost<\/td>\r\n<td>Removed<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>"},{"faq_title":"3.3. Impact on Enterprises: Updating is a Mandatory Requirement, Not an Option","faq_content":"The changes in the Chart of Accounts under Circular 99 are not merely categorical; they directly impact daily accounting operations. Enterprises are required to review their entire current chart of accounts, clearly identifying new accounts, abolished accounts, and renamed accounts, while simultaneously developing a plan for migrating balances from the old system to the new one.\r\n\r\nAlongside this is the requirement to update accounting software, adjust internal bookkeeping documents, and retrain the accounting team on how to recognize transactions under the new system. If the transition is executed methodically, enterprises will gain access to a chart of accounts that is clearer, more coherent, and more reflective of economic substance, thereby enhancing the quality of information in the Financial Statements.\r\n\r\nConversely, slow updates or incorrect transitions can lead to data discrepancies, disrupt data comparability between periods, and even cause presentation errors in the Financial Statements. As Circular 99 takes effect across the board from the 2026 fiscal year, early preparation is no longer an advantage - it is a mandatory requirement to ensure compliance and the stability of the accounting system."}]},{"acf_fc_layout":"faq_layout","faq_id":"circular-99-4","faq_list":[{"faq_title":"4.1. Accounting Vouchers: Greater Flexibility Requiring Internal Regulations","faq_content":"The shift in the philosophy of managing accounting vouchers becomes clear when comparing Circular 99 and Circular 200 within the same framework.\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 26%; text-align: center;\"><strong>Circular No. 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 26%; text-align: center;\"><strong>Circular No. 99\/2025\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 26%; text-align: center;\"><strong>Notes<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>General regulations on accounting vouchers<\/strong><\/td>\r\n<td style=\"width: 26%;\">Accounting vouchers must comply with the Law on Accounting, guiding documents, and any amendments or replacements.<\/td>\r\n<td style=\"width: 26%;\">(Same as Circular 200)<\/td>\r\n<td style=\"width: 26%;\">Maintains a consistent foundational principle from Circular 200 to Circular 99.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Autonomy in designing and modifying voucher templates<\/strong><\/td>\r\n<td style=\"width: 26%;\">Enterprises may design their own voucher templates to suit operational characteristics and management needs but must ensure all primary contents required by the Law on Accounting.<\/td>\r\n<td style=\"width: 26%;\">To suit operational characteristics and management needs, enterprises may design new templates or modify\/supplement the guided templates in Appendix I. Modified templates must comply with Article 16 of the Law on Accounting and reflect information fully, promptly, truthfully, transparently, and auditably.<\/td>\r\n<td style=\"width: 26%;\">Circular 99 emphasizes information standards and control capacity.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Mandatory internal control<\/strong><\/td>\r\n<td style=\"width: 26%;\">No specific mandatory requirement for a separate Internal Accounting Regulation for voucher modifications.<\/td>\r\n<td style=\"width: 26%;\">Enterprises must issue Internal Accounting Regulations (or equivalent documents) for any modifications. The regulation must state the necessity of the change and the enterprise's legal responsibility.<\/td>\r\n<td style=\"width: 26%;\">Adds a mandatory layer of control via \"Internal Accounting Regulations.\"<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Vouchers subject to other specialized laws<\/strong><\/td>\r\n<td style=\"width: 26%;\">No specific regulation for this case.<\/td>\r\n<td style=\"width: 26%;\">For vouchers subject to other specialized laws, enterprises must comply with those specific legal regulations.<\/td>\r\n<td style=\"width: 26%;\">Provides a basis for handling specialized vouchers (investment, credit, import-export, etc.).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Preparation, signing, and control<\/strong><\/td>\r\n<td style=\"width: 26%;\">Follow the Law on Accounting and guiding documents.<\/td>\r\n<td style=\"width: 26%;\">Follow the Law on Accounting and guiding documents.<\/td>\r\n<td style=\"width: 26%;\">No major changes in principles.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nAs shown in the comparison, Circular 99 does not change the fundamental principles of accounting vouchers: compliance with the Law on Accounting remains the minimum and consistent standard. However, the crucial difference lies in the level of proactivity granted to enterprises. Businesses are no longer just \"using\" guided templates; they can design voucher structures that better align with their actual operational logic, provided they ensure completeness, truthfulness, transparency, and traceability.\r\n\r\nThe mandatory requirement to issue Internal Accounting Regulations when adjusting voucher templates should not be viewed as a mere administrative procedure. In reality, this is the \"control layer\" that helps maintain consistency in transaction recording, limiting the risk of standard deviations between individuals, departments, or different accounting periods.\r\n\r\nAnother notable update is the regulation for vouchers governed by specialized laws. In fields such as investment, credit, construction, or international trade, where vouchers are highly technical and carry significant legal risks, Circular 99 establishes a clear principle: if a transaction is governed by a specialized law, the accounting voucher must follow that law. This approach helps enterprises avoid confusion when handling specialized transactions while increasing the consistency of accounting records during audits or inspections.\r\n\r\nOverall, Circular 99 not only expands the right to adjust voucher templates but also sets higher requirements for <strong>control capacity and accountability<\/strong>. Enterprises have more flexibility, but the framework must be clear; they can customize, but the input data must be \"clean\" and fully auditable."},{"faq_title":"4.2. Accounting Ledgers: The Right to Redesign Templates for Corporate Governance Purposes","faq_content":"If vouchers are the starting point for data, accounting ledgers are where data is accumulated, systematized, and transformed into line items on the Financial Statements. Therefore, flexibility in voucher design naturally necessitates a review and adjustment of the accounting ledger system.\r\n\r\nBelow is a comparison of core points between Circular 200 and Circular 99 regarding ledgers:\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 26%; text-align: center;\"><strong>Circular No. 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 26%; text-align: center;\"><strong>Circular No. 99\/2025\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 26%; text-align: center;\"><strong>Notes<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>General regulations on ledgers<\/strong><\/td>\r\n<td style=\"width: 26%;\">Ledgers must comply with the Law on Accounting and guiding documents.<\/td>\r\n<td style=\"width: 26%;\">(Same as Circular 200)<\/td>\r\n<td style=\"width: 26%;\">Circular 99 maintains the basic principles and requires compliance with the Law on Accounting.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Autonomy in designing and modifying ledger templates<\/strong><\/td>\r\n<td style=\"width: 26%;\">Enterprises may design their own ledger templates to suit operational characteristics and management needs but must ensure primary contents required by the Law on Accounting.<\/td>\r\n<td style=\"width: 26%;\">Enterprises refer to and apply the ledger templates in Appendix III. They may design new or modify\/supplement these templates to suit operations, provided they comply with Clauses 1, 2, 3, and 4 of Article 24 of the Law on Accounting.<\/td>\r\n<td style=\"width: 26%;\">Circular 99 reinforces transparency, traceability, and ease of inspection.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Mandatory internal control<\/strong><\/td>\r\n<td style=\"width: 26%;\">No specific mandatory requirement for a separate Internal Accounting Regulation for ledger modifications.<\/td>\r\n<td style=\"width: 26%;\">Enterprises must issue Internal Accounting Regulations regarding modified or supplemented ledger contents to serve as a basis for implementation.<\/td>\r\n<td style=\"width: 26%;\">Adds a mandatory control layer via \"Internal Accounting Regulations.\"<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Bookkeeping (Recording)<\/strong><\/td>\r\n<td style=\"width: 26%;\">Based on vouchers, recorded promptly, clearly, and fully. Data must be accurate and truthful compared to vouchers.<\/td>\r\n<td style=\"width: 26%;\">(Same as Circular 200)<\/td>\r\n<td style=\"width: 26%;\">No major changes in principles.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nLike accounting vouchers, Circular 99 does not alter the fundamental principles of bookkeeping under the Law on Accounting but upgrades the control mechanism through the mandatory requirement to issue Internal Accounting Regulations when designing or modifying ledger templates.\r\n\r\nThe core value of this approach lies in balance: enterprises can customize ledgers to reflect data flows that match operational reality, yet they must ensure traceability across periods, departments, and control layers. When a ledger system is well-designed and disciplined, the process of recording, reconciling, and closing the books becomes more coherent, reducing data errors, shortening the time to prepare Financial Statements, and supporting effective auditing.\r\n\r\nIn other words, flexibility in ledger design is only truly meaningful when it is translated into <strong>consistency and the ability to audit data to its source<\/strong>."},{"faq_title":"4.3. Accounting Treatments under Circular 99: Flexible in Design, Strict in Data","faq_content":"Circular 99 expands the right to design vouchers and ledgers but does not change the core principle of accounting: every entry must be based on valid vouchers, and information in the ledgers must be complete, truthful, accurate, and reconcilable. This ensures that input data (vouchers) and output data (ledgers \u2013 Financial Statements) are not distorted during the accounting process.\r\n\r\nFrom an operational perspective, the impact is evident across five key areas:\r\n<ul>\r\n \t<li><strong>Customization<\/strong>: Greater flexibility in designing and operating the accounting system to suit the business model.<\/li>\r\n \t<li><strong>Accountability<\/strong>: Increased responsibility, as every change must be documented by a written Accounting Regulation.<\/li>\r\n \t<li><strong>Compliance Review<\/strong>: Enterprises must review and update all voucher and ledger templates according to Circular 99.<\/li>\r\n \t<li><strong>System Synchronization<\/strong>: Software systems, internal processes, and implementation guidelines need synchronous adjustment to avoid data discrepancies.<\/li>\r\n \t<li><strong>Data Integrity<\/strong>: Information quality must be guaranteed at a high level, transparent, truthful, and fully auditable.<\/li>\r\n<\/ul>\r\nIn other words, Circular 99 does not make accounting \"easier\", it only makes it <strong>smarter and more disciplined.<\/strong>\r\n\r\nIn summary, Circular 99 expands autonomy in the design of vouchers and ledgers but does not loosen information discipline. Flexibility only adds value when accompanied by control, and the <strong>Internal Accounting Regulation<\/strong> is the mechanism that ensures that balance."}]},{"acf_fc_layout":"faq_layout","faq_id":"circular-99-5","faq_list":[{"faq_title":"5.1. Transaction Exchange Rates for Cash and Receivables Accounts","faq_content":"Regulations on exchange rates for cash and receivables directly affect the recorded value of current assets and exchange differences during the period. Based on the principles established in Circular 200 (as amended by Circular 53\/2016\/TT-BTC), Circular 99 does not change the fundamental accounting nature of exchange rates but standardizes their application, expands the options for book exchange rates, and clarifies the treatment and disclosure mechanisms for transactions involving cash and receivables.\r\n\r\nThe comparison table below highlights the technical inheritance and differences between the two regulatory systems. The exchange rate applied to cash accounts is one of the most notable changes in Circular 99, particularly as it expands the definition of actual transaction rates and clarifies the principles for selecting book rates compared to Circular 200. These adjustments directly impact the recording of foreign currency transactions, year-end revaluations, and the enterprise's business results.\r\n<h2>Comparison of Foreign Currency Accounting Regulations Between Circular 200 and Circular 99<\/h2>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Foreign currency conversion principles upon transaction<\/strong><\/td>\r\n<td style=\"width: 39%;\">- <strong>Debit side of Cash:<\/strong> Actual transaction exchange rate.\r\n- <strong>Credit side of Cash:<\/strong> Weighted average book rate or actual transaction exchange rate.<\/td>\r\n<td style=\"width: 39%;\">- <strong>Debit side of Cash:<\/strong> Actual transaction exchange rate.\r\n- <strong>Credit side of Cash:<\/strong> Enterprises may choose between the actual transaction exchange rate or the book exchange rate.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Accounts Receivable (Account 131)<\/strong><\/td>\r\n<td style=\"width: 39%;\">- <strong>Debit side of A\/R:<\/strong> Actual transaction rate (buying rate of the commercial bank where the customer is designated to pay).\r\n- In case of advances from customers: When recognizing revenue, the Debit side of A\/R uses the specific identification book rate.\r\n- <strong>Credit side of A\/R:<\/strong> Specific identification book rate (or mobile weighted average rate or actual transaction rate).\r\n- Settlement of advances: The Debit side of A\/R uses the specific identification book rate.<\/td>\r\n<td style=\"width: 39%;\">- <strong>Debit side of A\/R:<\/strong> Actual transaction exchange rate.\r\n- <strong>Credit side of A\/R:<\/strong> Actual transaction rate or book rate (except for customer advance transactions).\r\n- In case of advances to suppliers: Upon receiving goods\/services, the corresponding portion uses the actual transaction rate at the time of the advance.\r\n- Settlement of advances: The Debit side of A\/R uses the book rate.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Definition of \"Actual Transaction Exchange Rate\"<\/strong><\/td>\r\n<td style=\"width: 39%;\">The foreign currency buying rate of the commercial bank where the enterprise frequently transacts, or an approximate rate (within a \u00b11% margin of the average transfer rate on the transaction date).<\/td>\r\n<td style=\"width: 39%;\">The average transfer rate of the commercial bank where the enterprise frequently transacts, or an approximate rate (within a \u00b11% margin of the average transfer rate on the transaction date).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Definition of \"Book Exchange Rate\"<\/strong><\/td>\r\n<td style=\"width: 39%;\">Mentions weighted average rate for the Credit side of cash. Two types:\r\n\r\n- <strong>Specific identification:<\/strong> The rate at the time of transaction or year-end revaluation for each subject.\r\n- <strong>Mobile weighted average:<\/strong> Used for the Credit side of cash, determined by dividing total value on the Debit side by the quantity of currency on hand.<\/td>\r\n<td style=\"width: 39%;\">Two types:\r\n\r\n- <strong>Specific identification:<\/strong> The rate at each transaction occurrence (if not yet revalued) or the rate from the previous year-end revaluation (if already revalued).\r\n- <strong>Weighted average:<\/strong> Determined based on the average of values converted to the accounting currency using actual rates for the Debit side of cash, receivables, and other assets, divided by the opening quantity and quantity increases during the period. This rate can be determined at period-end or at the time of payment (detailed guidance applicable to cash, receivables, payables, etc.).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Year-end Revaluation<\/strong><\/td>\r\n<td style=\"width: 39%;\">- Revalued at the actual transaction rate (buying rate of the commercial bank where the enterprise transacts).\r\n- <strong>Bank deposits:<\/strong> Buying rate of the bank where the account is held.\r\n- <strong>Monetary gold:<\/strong> Buying price announced by the State Bank of Vietnam (SBV) or authorized gold dealers.<\/td>\r\n<td style=\"width: 39%;\">- Revalued at the average transfer rate of the commercial bank where the enterprise frequently transacts.\r\n- <strong>Demand deposits:<\/strong> Average transfer rate at the bank where the account is held.\r\n- <strong>Monetary gold:<\/strong> Buying price announced by the SBV or reference buying price from authorized gold dealers.\r\n- <strong>No revaluation<\/strong> for the portion of debt already covered by a provision for bad debts.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Handling Exchange Differences<\/strong><\/td>\r\n<td style=\"width: 39%;\">- All differences are recognized in financial income\/expenses upon occurrence.\r\n- Special case: 100% State-owned enterprises with national key projects track differences in Account 413 and allocate them once operational.\r\n- No capitalization into construction-in-progress.<\/td>\r\n<td style=\"width: 39%;\">- All differences arising during the period and from year-end revaluation are recognized immediately in financial income\/expenses.\r\n- No capitalization into construction-in-progress.\r\n- The Income Statement presents only the net amount between exchange gains and losses at period-end.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Financial Statement Notes<\/strong><\/td>\r\n<td style=\"width: 39%;\">Enterprises must clearly disclose the choice of exchange rates and ensure the principle of consistency.<\/td>\r\n<td style=\"width: 39%;\">Enterprises must clearly disclose the accounting policy regarding exchange rates and apply it consistently throughout the accounting year.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nIn terms of core principles, Circular 99 does not alter the foreign currency conversion foundation established in Circular 200. Enterprises still apply the actual transaction rate upon occurrence, and exchange differences are recognized immediately in financial income or expenses and cannot be capitalized. These principles remain consistent across Circular 200, Circular 53, and Circular 99.\r\n\r\nHowever, the key differences should be viewed as an evolutionary progression. For <strong>Cash accounts<\/strong>, Circular 200 originally mandated the weighted average book rate for the Credit side. Circular 53 provided the first measure of flexibility by allowing a choice between the weighted average book rate or the actual transaction rate. Circular 99 inherits and standardizes this, placing the choice within a clear accounting policy framework requiring consistent application and full disclosure.\r\n\r\nFor <strong>Receivables<\/strong>, Circular 99 simplifies the logic of Circular 200 and Circular 53. It adopts a more principle-based approach: the Debit side uses the actual transaction rate, while the Credit side offers a choice between the actual transaction rate or the book rate (excluding customer advances). This simplification reduces the risk of mechanical interpretation without changing the substance of recognition.\r\n\r\nA more distinct feature of Circular 99 is the <strong>standardization of definitions<\/strong>. While Circular 53 paved the way for using approximate rates (\u00b11%), Circular 99 consolidates terminology into \"average transfer rate\" or \"approximate rate,\" significantly reducing complexity for enterprises with high-frequency foreign currency transactions.\r\n\r\nRegarding presentation, while previous regulations focused on recognition, Circular 99 adds a requirement to present the <strong>net amount of exchange gains and losses<\/strong> on the Income Statement. This shift helps users of Financial Statements focus on the net impact of exchange rate fluctuations rather than fragmented technical entries. Additionally, the rule prohibiting revaluation of receivables already covered by bad debt provisions ensures prudence and prevents \"double-counting\" exchange differences for debts where recovery risk is already reflected.\r\n\r\nIn summary, Circular 99 represents the final refinement of a series of adjustments. The primary difference lies in standardization, simplification, and enhanced accountability, while core principles for cash and receivables remain largely intact."},{"faq_title":"5.2 Initial Recognition for Trading Securities","faq_content":"Compared to Circular 200, Circular 99 marks a significant shift in the approach to <strong>trading securities<\/strong>: moving from a cost-based model to a <strong>fair value model<\/strong> at the time of initial recognition. This is not merely a technical bookkeeping adjustment; it directly impacts the value of financial assets on the Balance Sheet and financial expenses on the Income Statement, clearly demonstrating a trend toward IFRS convergence.\r\n\r\nThe following is a detailed comparison:\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Initial Recognition Principle<\/strong><\/td>\r\n<td style=\"width: 39%;\">Recognized at cost, which includes purchase price + directly related costs such as brokerage fees, transaction fees, taxes, bank charges, etc.<\/td>\r\n<td style=\"width: 39%;\">Recognized at the fair value of the consideration paid at the time the transaction occurs.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Treatment of Directly Related Transaction Costs<\/strong><\/td>\r\n<td style=\"width: 39%;\">Transaction costs are capitalized into the historical cost of the trading securities.<\/td>\r\n<td style=\"width: 39%;\">Transaction costs are expensed directly to financial expenses in the period.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Timing of Recognition<\/strong><\/td>\r\n<td style=\"width: 39%;\">Recognized when the investor gains ownership, specifically:\r\n- Listed securities: Order matching time (T+0).\r\n- Unlisted securities: Time of official legal ownership.<\/td>\r\n<td style=\"width: 39%;\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Reclassification Post-Initial Recognition<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulations.<\/td>\r\n<td style=\"width: 39%;\">During the holding period, trading securities cannot be reclassified as held-to-maturity investments and vice versa.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nIn essence, Circular 99 is not simply a technical update of Circular 200; it reflects a distinct shift in accounting philosophy for trading securities. While Circular 200 was built on a cost-centered foundation viewing trading securities similarly to \"financial inventory\" where purchase costs are capitalized and profits are only recognized upon realization Circular 99 shifts focus to the value at the transaction date and the timely reflection of market risks.\r\n\r\nThe fact that Circular 99 no longer emphasizes capitalizing transaction costs into the asset value suggests a viewpoint that purchase costs are an expense of investment activities for the period, not a part of the financial instrument's economic value. This clarifies the quality of information regarding investment performance. Simultaneously, this approach reduces the \"lag\" in identifying losses through revaluation and provision mechanisms, increasing transparency, especially for enterprises with frequent trading activities. It can be said that while maintaining the Vietnamese accounting framework, Circular 99 has significantly closed the gap with modern financial accounting logic, laying a solid foundation for future IFRS conversion."},{"faq_title":"5.3 Initial Recognition for Held-to-Maturity (HTM) Investments","faq_content":"For <strong>held-to-maturity investments<\/strong>, Circular 99 essentially maintains the accounting model of Circular 200 by continuing to apply the cost principle. However, the difference lies in the level of detail and standardization: Circular 99 clarifies how to determine cost in various scenarios that Circular 200 did not fully address, particularly investments with prepaid interest, discounts, or premiums.\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Initial Recognition Principle<\/strong><\/td>\r\n<td style=\"width: 39%;\">Recognized at cost: Purchase price + directly related costs (brokerage, transaction, information, taxes, bank fees, etc.).<\/td>\r\n<td style=\"width: 39%;\">Recognized at purchase price + directly related costs (if any). Detailed as follows:\r\n\r\n- <strong>Prepaid interest case:<\/strong> Initial Value = Face Value - Prepaid Interest - Discount (if any) + Premium (if any).\r\n\r\n- <strong>Periodic or post-paid interest case:<\/strong> Initial Value = Face Value - Discount (if any) + Premium (if any).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Classification and Presentation<\/strong><\/td>\r\n<td style=\"width: 39%;\">Classified by remaining maturity from the end of the accounting period:\r\n- &lt; 12 months \u2192 current asset.\r\n- \u2265 12 months \u2192 long-term asset.<\/td>\r\n<td style=\"width: 39%;\">Classified by remaining maturity from the end of the accounting period:\r\n- \u226412 months \u2192 current asset.\r\n- &gt; 12 months \u2192 long-term asset.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nThe comparison table shows that Circular 99 has shifted the focus from the \"pure cost\" approach of Circular 200 to an approach closer to the financial substance of debt instruments. By detailing initial value determination based on cash flow structures (prepaid, periodic, or post-paid interest), the separation of face value, prepaid interest, discounts, and premiums from the start helps reflect the actual yield of the investment more accurately than simply recording the total initial purchase cost.\r\n\r\nFurthermore, despite the minor change in the classification threshold (\u2264 12 months vs. &lt; 12 months), Circular 99 has clarified the criteria for presentation, contributing to consistency and comparability between enterprises, especially for portfolios maturing close to the 12-month mark."},{"faq_title":"5.4 Effective Interest Rate (EIR) for Held-to-Maturity Investments","faq_content":"While Circular 200 primarily approached interest recognition for HTM investments using nominal interest rates and cash-flow-based bookkeeping, Circular 99 marks a major advancement by officially introducing the Effective Interest Rate (EIR) method into the corporate accounting framework. The addition of this method not only clarifies the amortization of discounts and premiums but also restructures interest tracking to align more closely with the economic substance of financial instruments.\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Discount\/Premium Amortization Principle<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulation on EIR amortization; interest is usually recorded at the nominal rate using intermediate accounts like 3387 or 138.<\/td>\r\n<td style=\"width: 39%;\">Enterprises can choose between straight-line or Effective Interest Rate (EIR) amortization, applied consistently per Vietnamese Accounting Standards.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Determining EIR<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific guidance.<\/td>\r\n<td style=\"width: 39%;\">EIR is determined based on the nominal interest rate, discount\/premium, and investment purchase costs.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Floating Interest Rate Accounting<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific guidance.<\/td>\r\n<td style=\"width: 39%;\">Detailed guidance:\r\n- If rate updates offset the discount\/premium: amortize until the next rate reset date.\r\n- If not offset: amortize over the full life of the instrument.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Recording Premium Greater than Nominal Interest<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulation.<\/td>\r\n<td style=\"width: 39%;\">The portion of amortized premium exceeding periodic nominal interest is recognized as a financial expense.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Specific Bookkeeping Method<\/strong><\/td>\r\n<td style=\"width: 39%;\">- Prepaid interest: Record in Account 3387, periodically transfer to 515.\r\n- Post-paid interest: Record in Account 138 \/ Credit 515.<\/td>\r\n<td style=\"width: 39%;\">- Discontinue use of Account 3387 and Account 138 for this purpose.\r\n- Entire investment and interest are tracked via Account 128.\r\n- Detailed guidance for both methods (Straight-line and EIR) from purchase to maturity.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Transitional Provisions<\/strong><\/td>\r\n<td style=\"width: 39%;\">No transitional regulations.<\/td>\r\n<td style=\"width: 39%;\">Allows enterprises to choose retrospective or simplified retrospective adjustment for bonds with unamortized discounts\/premiums at the effective date for the first applying period.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nThe official recognition of the EIR method reflects a change in accounting mindset: from recording interest based on cash flow form to allocating benefits and costs based on the <strong>actual economic value<\/strong> of the investment throughout its lifecycle. This method allows enterprises to fully reflect the impact of discounts, premiums, and purchase costs rather than focusing solely on periodic nominal interest.\r\n\r\nNotably, the removal of intermediate accounts (3387 and 138) for interest tracking simplifies the chart of accounts, centralizing all investment and interest tracking into Account 128. This reduces data fragmentation and limits discrepancy risks when managing multiple parallel investments."},{"faq_title":"5.5 Inventory Valuation Methods","faq_content":"Compared to Circular 200, Circular 99 does not change the foundational inventory valuation methods but has expanded them to better suit modern business practices, especially in retail and manufacturing. Additionally, Circular 99 adjusts the classification of goods purchased with unclear usage purposes to more accurately reflect the economic substance of the asset.\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Inventory Valuation Methods (Outward &amp; Ending)<\/strong><\/td>\r\n<td style=\"width: 39%;\">One of the following:\r\n- Specific Identification\r\n- Weighted Average\r\n- FIFO\r\n- Retail Method (allowed for specialized units like supermarkets).<\/td>\r\n<td style=\"width: 39%;\">One of the following:\r\n- Specific Identification\r\n- Weighted Average\r\n- FIFO\r\n- <strong>Retail Method<\/strong> (official for high-volume, fast-moving retail with similar margins).\r\n- <strong>Standard Cost<\/strong> (for manufacturing): based on normal usage of materials, labor, and overhead. These must be reviewed and adjusted regularly to current conditions.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Regulation for Goods Purchased for both Resale and Production<\/strong><\/td>\r\n<td style=\"width: 39%;\">If purpose is not clearly distinguished: Record in <strong>Account 156 \u2013 Goods.<\/strong><\/td>\r\n<td style=\"width: 39%;\">If purpose is not clearly distinguished: Record in <strong>Account 152 \u2013 Raw Materials &amp; Supplies.<\/strong><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nThe most notable change in Circular 99 is the expansion of valuation methods. Formally establishing regulations for <strong>Retail Method and Standard Cost<\/strong> allows enterprises to choose a valuation method that matches their actual operational model, particularly for industries with high turnover or standardized production processes.\r\n\r\nFurthermore, the shift in recording goods with undifferentiated purposes from Account 156 to Account 152 highlights the orientation of Circular 99: emphasizing the intended use of the asset rather than its initial form. This change directly impacts the inventory structure on the Balance Sheet and requires enterprises to review their material\/goods classification processes right from the procurement stage.\r\n\r\nOverall, Circular 99 does not mandate that enterprises change their inventory valuation methods; instead, it expands the available options while simultaneously heightening requirements for appropriateness and consistency. The selection of a specific method will significantly influence the Cost of Goods Sold (COGS), ending inventory value, and net income, thereby directly impacting financial ratios and strategic management decisions."},{"faq_title":"5.6. Conditions for Recognition of Fixed Assets (FA) ","faq_content":"<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Conditions for FA recognition<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific detailed regulation; general principle applied: direct costs to bring the asset to its ready-for-use state are capitalized into the historical cost. Useful life must be from 1 year or more.<\/td>\r\n<td style=\"width: 39%;\">Estimated useful life must be over 1 year. No specific detailed regulation; general principle applied: direct costs to bring the asset to its ready-for-use state are capitalized into the historical cost.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nIn principle, Circular 99 inherits the fixed asset accounting principles from Circular 200, except for clarifying the useful life condition in a stricter direction. It requires the estimated useful life to be <strong>over 12 months<\/strong> (instead of \"from 1 year or more\" as previously stated). This adjustment has a practical impact on the scope of fixed asset recognition, especially for assets with short lifecycles or those on the borderline between fixed assets and tools\/instruments."},{"faq_title":"5.7. Purchasing Fixed Assets with Accompanying Products or Spare Parts","faq_content":"In practice, purchasing fixed assets along with equipment, products, or replacement spare parts is a common occurrence. However, under Circular 200, these cases were not specifically guided, leading to significant differences in interpretation and application among enterprises. Circular 99 has added clearer guidance, helping enterprises accurately determine the historical cost of fixed assets and clearly distinguish between accompanying assets with independent value and specialized standby spare parts.\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Recognition principle for FA purchased with equipment\/spare parts<\/strong><\/td>\r\n<td style=\"width: 39%;\">When purchasing FA, if accompanying equipment\/spare parts are received (to prevent breakdowns), the accountant must determine and record the products\/spare parts separately based on fair value. If they meet FA criteria, record as FA; otherwise, record as inventory. Historical cost of FA = total value - value of accompanying parts.<\/td>\r\n<td style=\"width: 39%;\">When purchasing FA with accompanying equipment\/spare parts, enterprises may choose the more appropriate method:\r\n\r\n- Allocate based on the fair value of both the main FA and accompanying assets;\r\n- Determine the fair value of accompanying assets to deduct from the historical cost of the main FA.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Specialized Standby Spare Parts<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulation; general principle applied: direct costs to bring FA to ready-for-use state are capitalized.<\/td>\r\n<td style=\"width: 39%;\">For specialized standby spare parts used only in connection with the main FA: Do not record value separately, but maintain detailed tracking ledgers and disclose in the Financial Statement Notes.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Impact on FA Historical Cost<\/strong><\/td>\r\n<td style=\"width: 39%;\">In practice, often capitalizes the entire purchase value (including accompanying parts) into the FA historical cost.<\/td>\r\n<td style=\"width: 39%;\">May allocate or exclude the value of accompanying assets from the FA historical cost; specialized standby parts are not recorded in the historical cost.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Disclosure Requirements<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific disclosure requirement for assets accompanying FA.<\/td>\r\n<td style=\"width: 39%;\">Mandatory disclosure in the Financial Statement Notes for specialized standby equipment and spare parts.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nAccording to Circular 99, when purchasing fixed assets with accompanying equipment or spare parts, enterprises must base their determination on the nature of the accompanying assets to establish the historical cost of the main asset. The Circular allows enterprises to choose one of two methods suited to the transaction reality: allocating the purchase price based on the fair value of both the main asset and the accompanying parts, or identifying the fair value of the parts separately to exclude them from the main asset's cost. The choice of method must ensure a reasonable reflection of the recorded asset value and be applied consistently.\r\n\r\nCompared to Circular 200, Circular 99's regulations are more flexible in determining historical cost, as they are not limited to a single treatment but allow for an appropriate measurement method that reflects the <strong>economic substance<\/strong> of the transaction.\r\n\r\nFor specialized standby equipment and spare parts used only in connection with a specific fixed asset, Circular 99 stipulates that they are not recognized as independent assets and are not included in the historical cost of the main asset. Instead, enterprises are required to maintain detailed tracking ledgers and provide full disclosure in the Financial Statement Notes. This is a departure from Circular 200, which lacked specific regulations on tracking and disclosing this type of accompanying asset.\r\n\r\nThe important advancement of Circular 99 is the standardization of accounting treatments for fixed asset purchases with accompanying items\u2014a significant gap in Circular 200. Allowing for fair value allocation or exclusion prevents the \"inflation\" of historical costs when accompanying products or equipment have significant value and can be used independently. For specialized standby parts, Circular 99 adopts a prudent approach: not inflating the asset's value while ensuring that information about standby assets is not \"hidden\" from the financial reporting system.\r\n\r\nOverall, the new regulations ensure that accounting reflects the true economic nature of fixed asset procurement while setting higher standards for internal accounting policies, detailed tracking, and information transparency."},{"faq_title":"5.8. Purchasing Fixed Assets and Investment Properties (IP) on Deferred or Installment Payment","faq_content":"Compared to Circular 200, Circular 99 does not change the foundational principle of determining historical cost based on the <strong>cash price<\/strong> at the time of purchase. However, it significantly clarifies and expands the treatment of deferred or installment interest, particularly in connection with <strong>Vietnamese Accounting Standard (VAS) 16 - Borrowing Costs<\/strong>. Additionally, Circular 99 adds specific accounting guidance for Investment Properties and enhances disclosure requirements in the Financial Statements.\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Principle for determining Historical Cost of FA\/IP<\/strong><\/td>\r\n<td style=\"width: 39%;\">Historical cost is the cash price at the time of purchase + direct costs until the asset is ready for use (excluding refundable taxes).<\/td>\r\n<td style=\"width: 39%;\">Historical cost is the cash price + direct costs until the asset is capable of operating in the manner intended by management (excluding refundable taxes).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Treatment of deferred\/installment interest<\/strong><\/td>\r\n<td style=\"width: 39%;\" colspan=\"2\">Deferred or installment interest is recognized as financial expenses in each period or capitalized in accordance with VAS 16 \u2013 Borrowing Costs (if eligible criteria are met).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Condition for separating interest<\/strong><\/td>\r\n<td style=\"width: 39%;\">No clear regulation on mandatory separation.<\/td>\r\n<td style=\"width: 39%;\">- If the contract clearly specifies interest: Separate the interest for each period per the contract.\r\n- If not clearly specified and the term is over 12 months: Mandatory separation of interest.\r\n- If the term is \u2264 12 months: Separation is not mandatory; can be bundled into historical cost.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Accounting for IP on deferred payment<\/strong><\/td>\r\n<td style=\"width: 39%;\">Recognition:\r\nDr 217 - Investment Property (cash price)\r\nDr 242 - Prepaid Expenses (deferred interest)\r\nDr 133 - Input VAT\r\nCr 331 - Payables to SuppliersPeriodic interest:\r\nDr 635 - Financial Expenses\r\nCr 242 - Prepaid Expenses<\/td>\r\n<td style=\"width: 39%;\">Recognition:\r\nDr 217 - Investment Property (cash price)\r\nDr 133 - Input VAT (if any)\r\nCr 111, 112, 331...Periodic interest:\r\nDr 635 - Financial Expenses\r\nCr 331 - Payables to Suppliers<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Financial Statement Notes<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulation.<\/td>\r\n<td style=\"width: 39%;\">Mandatory disclosure of deferred\/installment interest incurred in each period.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nUnder Circular 200, the historical cost of fixed assets and investment properties was determined by the cash price at the time of purchase, plus direct costs. For deferred payments, the interest was recognized as financial expenses or capitalized if it met VAS 16 criteria. Circular 200 did not mandate the separation of interest in all cases nor did it require specific disclosures for this interest in the financial statements.\r\n\r\nCircular 99 essentially inherits Circular 200's principles but adjusts the terminology to emphasize the milestone of \"the asset being capable of operating in the manner intended by management,\" thereby clarifying when the capitalization of historical costs ends. The central change in Circular 99 lies in standardizing interest treatment to clearly separate the <strong>asset value from the financing element<\/strong> of the purchase.\r\n\r\nAccording to Circular 99, if the contract specifies interest, the enterprise must separate and record it based on the period it arises. If the contract is silent but the term exceeds 12 months, separation is mandatory. Only for terms under 12 months is separation optional. For Investment Properties, Circular 99 simplifies technical bookkeeping by recording the asset at cash price and recognizing periodic interest directly as financial expenses and a corresponding payable. This reflects the economic substance of interest arising from delayed payments more clearly.\r\n\r\nFurthermore, Circular 99's new requirement for full disclosure of periodic interest in the financial statements enhances transparency, helping users distinguish between the asset's cost and the financing costs incurred from the deferred payment arrangement."},{"faq_title":"5.9. Accounting for Assets Received from Support, Sponsorship, and Gifts","faq_content":"In practice, receiving assets through support, sponsorship, or as gifts (either in cash or non-monetary form) is relatively common, particularly in investment projects, support programs, strategic partnerships, or corporate restructurings. However, under Circular 200, the recording of these assets lacked unified guidance, leading to significant differences in classification between income and equity. Circular 99 addresses this by establishing clearer recognition principles tied to requirements from competent authorities and enhancing transparency in financial reporting.\r\n\r\nThe following table provides a detailed comparison:\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular No. 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular No. 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Recognition Principles<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulation. Generally recorded in Other Income (Account 711) or Equity (Account 411) depending on the nature and purpose.<\/td>\r\n<td style=\"width: 39%;\">Distinguishes between two cases:\r\n\r\n- If competent authorities require an increase in owner's investment capital: Record in <strong>Equity<\/strong> (Account 411 - Owner's Investment Capital (4118)).\r\n\r\n- Other cases: Record as <strong>Other Income.<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Initial Valuation of Assets Received<\/strong><\/td>\r\n<td style=\"width: 39%;\">For non-monetary gifted assets, usually recorded at fair value, but lacks detailed guidance on determination methods.<\/td>\r\n<td style=\"width: 39%;\">If valuation information is unavailable, the enterprise determines value based on:\r\n\r\n- Market price;\r\n- Value determined by the enterprise\u2019s Asset Valuation Council; or\r\n- Value from a professional valuation organization.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Disclosure Requirements<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulation.<\/td>\r\n<td style=\"width: 39%;\">Mandatory disclosure in the Financial Statements regarding the basis for determining the value of non-monetary assets received from support, sponsorship, or gifts.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nThe core change in Circular 99 lies in standardizing the criteria to differentiate between income and equity for such assets. Instead of allowing subjective interpretation based on \"economic substance,\" Circular 99 focuses on specific requirements from competent authorities. This approach significantly reduces the risk of misclassification a matter that directly affects profit, equity, and key financial ratios while improving comparability between enterprises and accounting periods.\r\n\r\nSimultaneously, the addition of valuation bases for non-monetary assets and mandatory disclosure requirements reflects Circular 99\u2019s consistent orientation toward transparency and auditability, especially for non-cash transactions. This necessitates that enterprises upgrade their valuation processes, strengthen documentation, and establish consistent accounting policies for assets received without consideration."},{"faq_title":"5.10. Biological Assets","faq_content":"For enterprises in agriculture, forestry, and animal husbandry, biological assets are a core asset group. However, for a long time, there was no dedicated accounting framework, leading to fragmented bookkeeping in inventory or fixed assets, which blurred the economic substance of biological transformation. Circular 99 marks a significant shift by establishing a dedicated system of concepts, classifications, accounts, and accounting principles for biological assets, aligning with international practices, particularly the lifecycle management and biological transformation approach in <strong>IAS 41<\/strong>. Within the Vietnamese Accounting Standards framework, Circular 99 creates a fundamental change from Circular 200 and establishes a foundation for transparent and standardized financial information in agriculture.\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular No. 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular No. 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Concepts and Scope<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific concept of \"Biological Assets\" or related terms like biological transformation, agricultural activity, or agricultural products. These are typically accounted for as inventory or fixed assets.<\/td>\r\n<td style=\"width: 39%;\">Introduces full definitions:\r\n\r\n- <strong>Biological Assets (BA):<\/strong> Living animals or plants managed by the enterprise through biological transformation.\r\n\r\n- <strong>Biological Transformation:<\/strong> Processes of growth, degeneration, production, and procreation.\r\n\r\n- <strong>Agricultural Activity:<\/strong> Management of BA transformation for sale or harvest.\r\n\r\n- <strong>Agricultural Product:<\/strong> Product harvested from BA.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Accounting Accounts<\/strong><\/td>\r\n<td style=\"width: 39%;\">No dedicated accounts. Recorded in existing accounts like 152 (Materials), 155 (Finished goods), or 211 (Tangible fixed assets).<\/td>\r\n<td style=\"width: 39%;\">New Account 215 - Biological Assets.\r\n- 2151: Livestock for periodic products.\r\n- 2152: Livestock for one-time products.\r\n- 2153: Crops for seasonal or one-time products.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Classification of BA<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific classification.<\/td>\r\n<td style=\"width: 39%;\">Classified into:\r\n\r\n- <strong>Bearer\/Working Assets:<\/strong> Tangible Fixed Assets (Account 211) (e.g., circus animals, zoo animals).\r\n\r\n- <strong>Livestock for periodic products:<\/strong> Similar to Fixed Assets but recorded in Account 215.\r\n\r\n- <strong>Livestock for meat\/one-time products:<\/strong> Cost of BA (Account 215).\r\n\r\n- <strong>Seasonal\/One-time crops:<\/strong> Cost of BA (Account 215).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Costing Principles<\/strong><\/td>\r\n<td style=\"width: 39%;\">General inventory or fixed asset principles.<\/td>\r\n<td style=\"width: 39%;\">- All direct purchase and care costs are capitalized into the cost of the BA.\r\n- For new BA born\/produced from mother BA: Cost includes current period care costs plus depreciation of the mother BA.\r\n- Costs that do not increase future economic benefits (e.g., new species research) are expensed in the period.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Depreciation and Allocation<\/strong><\/td>\r\n<td style=\"width: 39%;\">Only if classified as fixed assets. No specific guidance for others.<\/td>\r\n<td style=\"width: 39%;\">- For livestock for periodic products, depreciation starts at maturity, similar to fixed assets.\r\n- Cost allocation for mother vs. offspring BA must be based on management requirements and economic benefit recovery methods, applied consistently.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Impairment Provisioning<\/strong><\/td>\r\n<td style=\"width: 39%;\">General inventory\/fixed asset rules.<\/td>\r\n<td style=\"width: 39%;\">At period-end, if there is evidence of impairment or NRV is lower than carrying value, the enterprise must record an impairment provision in Cost of Goods Sold (COGS). Process is similar to inventory provisioning.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Current\/Non-current Classification<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulation.<\/td>\r\n<td style=\"width: 39%;\">- <strong>Livestock for periodic products:<\/strong> Non-current asset.\r\n- <strong>One-time products\/seasonal crops:<\/strong> Current asset if harvested within 12 months; otherwise, non-current.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Harvest\/Sale Bookkeeping<\/strong><\/td>\r\n<td style=\"width: 39%;\">No dedicated guidance.<\/td>\r\n<td style=\"width: 39%;\">- If transferred for processing: Dr 152, 154... \/ Cr 215.\r\n- If sold immediately: Dr 632 (COGS) \/ Cr 215 and Dr 111, 112, 131 (Revenue) \/ Cr 511.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nThe core change in Circular 99 is the formal recognition of biological assets as an independent accounting group. The addition of the conceptual framework, classification, and Account 215 helps clearly identify the economic substance of agricultural activities. Circular 99 also standardizes costing: care costs are only capitalized when directly linked to future economic benefits and must be reasonably allocated.\r\n\r\nFurthermore, the depreciation of periodic-product livestock upon maturity and the impairment mechanism for biological assets allow Financial Statements to fully reflect the unique risks of the agricultural sector, factors previously obscured. Finally, detailed disclosure requirements ensure transparency regarding asset structure, accounting methods, and the volatility of biological activities."},{"faq_title":"5.11. Investment Property (IP) ","faq_content":"Investment properties are high-value, long-held assets heavily impacted by classification, depreciation, cost capitalization, and revenue recognition decisions. While Circular 99 does not fundamentally change the cost-based accounting model for IP, it significantly standardizes and details the principles for recognition, measurement, impairment handling, complex contracts, and disclosure.\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular No. 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular No. 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Definition and Scope<\/strong><\/td>\r\n<td style=\"width: 78%;\" colspan=\"2\">Investment Property (IP) refers to land use rights, buildings, or infrastructure held to earn rentals or for capital appreciation, rather than for use in the production or supply of goods or services, for administrative purposes, or for sale in the ordinary course of business.\r\n\r\n<strong style=\"font-size: 18px; font-family: inherit;\">Exclusions (Cases not classified as Investment Property):<\/strong>\r\n\r\nReal estate held for sale or being constructed\/developed for sale; owner-occupied property; and real estate currently under construction or development for future use as Investment Property.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Initial Historical Cost<\/strong><\/td>\r\n<td style=\"width: 78%;\" colspan=\"2\">The historical cost of Investment Property (IP) comprises all costs (cash or cash equivalents) paid by the enterprise or the fair value of other considerations given to acquire the asset as of the date of purchase or completion of its construction.\r\n\r\nNon-capitalizable costs: Unnecessary initial costs, costs incurred when the IP is first put into operation, and abnormal amounts of wasted raw materials, labor, or other resources incurred during the construction of the investment property.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Deferred\/Installment Purchase<\/strong><\/td>\r\n<td style=\"width: 39%;\">Historical cost is the cash price at the time of purchase plus any directly attributable costs incurred up to the point the asset is brought into its ready-for-use state (excluding refundable taxes).\r\n\r\nThe difference between the deferred payment price and the cash price is recognized in Account 242 and charged to financial expenses over the payment term, unless such difference is capitalized into the historical cost of the Investment Property as prescribed by the Accounting Standard on \"Borrowing Costs.\"<\/td>\r\n<td style=\"width: 39%;\">The historical cost of Fixed Assets (FA) and Investment Properties (IP) is determined based on the cash purchase price of the FA or IP plus (+) directly attributable costs included in the historical cost up to the point the asset is in a state capable of operating in the manner intended by the enterprise (excluding refundable taxes). Deferred or installment interest is recognized as financial expenses in each period or capitalized in accordance with Vietnamese Accounting Standard No. 16 - Borrowing Costs.\r\n<ul>\r\n \t<li><strong>In cases where deferred or installment interest is specifically stated in the contract<\/strong>: The enterprise must rely on the contract to determine and separate the interest portion for each period.<\/li>\r\n \t<li><strong>In cases where deferred or installment interest is not specifically stated in the contract and the deferred or installment term exceeds 12 months<\/strong>: The enterprise is mandatory required to separate the deferred or installment interest portion. Accordingly, the enterprise must determine the implicit interest rate and the interest portion for recognition and accounting based on the difference between the deferred\/installment price and the cash purchase price of the FA or IP.<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Depreciation<\/strong><\/td>\r\n<td style=\"width: 78%;\" colspan=\"2\">Depreciation must be recognized for leased Investment Properties (including during periods of temporary vacancy); depreciation is not recognized for Investment Properties held for capital appreciation (except in cases where the Investment Property is currently being leased).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Treatment of Value Decrease for Investment Property (IP) Held for Capital Appreciation<\/strong><\/td>\r\n<td style=\"width: 39%;\">In cases where there is certain evidence indicating that Investment Property (IP) has decreased in value relative to its market value and the amount of decrease is reliably determined, the enterprise is permitted to write down the historical cost of the IP and recognize the impairment loss in the Cost of Goods Sold (similar to the provisioning for real estate inventory).<\/td>\r\n<td style=\"width: 39%;\">Where there is firm evidence indicating that Investment Property (IP) has decreased in value relative to its market value and the amount of the decrease is reliably measured, the enterprise is permitted to write down the historical cost of the IP and recognize the impairment loss in the Cost of Goods Sold (similar to the provisioning for real estate inventory).\r\n\r\nAt the end of subsequent accounting periods, if there is firm and reliable evidence that the value decrease of the IP no longer exists, the enterprise is permitted to write up the historical cost of the IP and reduce the Cost of Goods Sold by an amount not exceeding the previously recorded write-down and not exceeding the original historical cost of the IP.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Purpose Change<\/strong><\/td>\r\n<td style=\"width: 78%;\" colspan=\"2\">The transfer from owner-occupied property to investment property, or from investment property to owner-occupied property or inventory, shall only be made when there is a change in the purpose of use. Such reclassification does not change the carrying amount or the historical cost of the asset.\r\n\r\nWhen an enterprise decides to sell an investment property without a period of repair, renovation, or upgrade, the enterprise continues to record it as investment property in Account 217 until the property is sold, without reclassifying it to inventory.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Lease Revenue &amp; Complex Contracts<\/strong><\/td>\r\n<td style=\"width: 39%;\">Prepaid lease payments are systematically recognized as investment property lease revenue in each period throughout the lease term.<\/td>\r\n<td style=\"width: 39%;\">In cases where an enterprise leasing Investment Property (IP) receives lease payments in advance for multiple periods, the recognition of lease service revenue shall be carried out based on the principle of allocating the prepaid rent over the lease term.\r\n\r\nFor contracts involving multiple elements (such as sale and lease, or other obligations), the various components of the performance contract must be separated, and the basis for recognition must be clearly disclosed (approaching the approach of IFRS 15 \u2013 Revenue from Contracts with Customers regarding distinct performance obligations).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Disposal Gain\/Loss<\/strong><\/td>\r\n<td style=\"width: 39%;\">Gains or losses arising from the sale or disposal of Investment Property (IP) are determined as the difference between the disposal proceeds and the carrying amount of the asset plus any directly attributable selling costs. These gains or losses are presented on a net basis in the Income Statement for the period.\r\n\r\nIn the case of a sale on a deferred payment basis, revenue is initially recognized at the cash price (the price excluding VAT for enterprises applying the VAT deduction method). The difference between the total consideration to be paid and the cash price is recognized as unearned interest income.<\/td>\r\n<td style=\"width: 39%;\">Gains or losses arising from the sale of Investment Property (IP) are determined as the difference between the revenue and the directly attributable selling costs plus the carrying amount of the IP. These gains or losses are presented on a net basis in the Income Statement for the period.\r\n\r\nIn the case of a sale of IP on a deferred or installment payment basis, the revenue from the sale is recognized at the cash price (the selling price excluding VAT for enterprises applying the VAT deduction method). Periodically, the enterprise recognizes the deferred or installment interest as financial income in each period. Information regarding the deferred or installment interest from the sale of IP must be tracked in detail in the accounting books and disclosed in the Financial Statements (including total interest receivable, interest collected, and the remaining interest balance).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Subsequent expenditures after initial recognition<\/strong><\/td>\r\n<td style=\"width: 39%;\" colspan=\"2\">Subsequent expenditures incurred after the initial recognition of Investment Property (IP) shall be capitalized into the historical cost of the IP if they meet the capitalization criteria or are included in the enterprise's obligations for necessary costs to be incurred to bring the IP to its ready-for-use state.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Financial Statement Notes<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific details are specified.<\/td>\r\n<td style=\"width: 39%;\">Circular 99 requires detailed disclosure regarding the increase and decrease of Investment Property (IP), covering both IP for lease and IP held for capital appreciation, classified by land use rights, buildings, buildings and land use rights, and infrastructure.\r\n\r\nDisclosures must include the ending carrying amount of IP used as collateral or pledged as security, IP that has been fully depreciated but remains in use for leasing, and a list of individual IP assets valued at 10% or more of the total Investment Property value.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nAccording to Circular 99, investment property continues to be defined as land use rights, buildings, and infrastructure held to earn rentals or for capital appreciation, rather than for use in normal production or business activities or for sale. The scope and classification of investment property remain fundamentally unchanged compared to Circular 200.\r\n\r\nThe initial historical cost of investment property is still determined based on the total costs incurred by the enterprise or the fair value of other considerations given to acquire the asset up to the time of purchase or completion of construction. Non-capitalizable costs also see no significant changes compared to previous regulations.\r\n\r\nThe central adjustment of Circular 99 lies in the purchase of investment property via deferred or installment payment methods. The Circular clarifies the requirement to separate the interest component from the historical cost: if the contract explicitly specifies interest, it is recognized per the contract; if not explicitly specified and the payment term exceeds 12 months, it is mandatory to determine and separate the interest based on the cash price and the implicit interest rate.\r\n\r\nPrinciples regarding depreciation, impairment treatment, and changes in the purpose of use for investment property are generally maintained. Leased investment property must still be depreciated, while investment property held for capital appreciation is not subject to depreciation.\r\n\r\nRegarding lease revenue and multi-element contracts, Circular 99 continues to apply the principle of allocating prepaid rent over the lease term. However, in cases where an investment property lease contract includes additional services or obligations, the enterprise must consider the nature of each element to determine the portion of revenue attributable to the investment property lease and the portion related to other elements, thereby applying appropriate recognition policies. The Circular does not require the adoption of the performance obligation separation or transaction price allocation models as found in IFRS 15, but it emphasizes the responsibility to perform contract analysis and provide clear disclosures on the basis for recognition for complex contracts.\r\n\r\nIn the case of selling investment property, gains or losses are determined on a net basis. If sold via deferred or installment payment methods, the sales revenue is determined at the cash price, while the deferred interest is recognized progressively as financial income and must be tracked and disclosed in detail.\r\n\r\nFinally, Circular 99 introduces requirements for more detailed disclosure of investment property in the financial statements to enhance transparency compared to Circular 200."},{"faq_title":"5.12. Provision for Asset Impairment","faq_content":"<strong>Provision for asset impairment<\/strong> is a vital accounting tool used to promptly reflect the risks of asset value decline and the uncollectibility of investments and receivables. Compared to Circular 200, Circular 99 not only inherits foundational principles but also expands the scope of provisions, detailing the methods for determining and handling losses, particularly for bad debts, held-to-maturity (HTM) investments, and biological assets. These changes enhance transparency while simultaneously placing higher demands on an enterprise's professional judgment and tracking systems.\r\n\r\nThe following table provides a detailed comparison:\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular No. 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular No. 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Types of Asset Impairment Provisions<\/strong><\/td>\r\n<td style=\"width: 39%;\">Includes:\r\n- Provision for devaluation of trading securities;\r\n- Provision for loss on long-term financial investments;\r\n- Provision for bad debts;\r\n- Provision for devaluation of inventory.<\/td>\r\n<td style=\"width: 39%;\">Includes:\r\n- Provision for devaluation of trading securities;\r\n- Provision for loss on investments in other entities (excluding trading securities);\r\n<strong>- Provision for bad debts;<\/strong>\r\n- Provision for devaluation of inventory;\r\n<strong>- Provision for loss on biological assets.<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>General Principles for Making Provisions<\/strong><\/td>\r\n<td style=\"width: 39%;\" colspan=\"2\">Provisions are made when there is evidence of asset impairment or low recoverability.\r\n\r\nEnterprises do not have to revalue assets\/liabilities if a third party inherits the rights\/obligations.\r\n\r\nIf the \"going concern\" assumption is not met, impairment is recorded directly as a decrease in the asset's carrying value (not through Account 229).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Provision for Bad Debts (Aging-based)<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulations on fixed provision rates based on the period of overdue.<\/td>\r\n<td style=\"width: 39%;\">Circular 99 specifies provision rates for overdue receivables as follows:\r\n<ul>\r\n \t<li>30% of the value for debts overdue from 6 months to under 1 year.<\/li>\r\n \t<li>50% of the value for debts overdue from 1 year to under 2 years.<\/li>\r\n \t<li>70% of the value for debts overdue from 2 years to under 3 years.<\/li>\r\n \t<li>100% of the value for debts overdue from 3 years or more.<\/li>\r\n<\/ul>\r\n<strong>Specialized Provisioning for Telecommunications and Retail<\/strong>\r\n\r\nFor enterprises providing telecommunications services or retail goods, specifically regarding receivables for telecommunications charges, information technology, post-paid television, and installment\/deferred retail sales to individual debtors, the provision rates for overdue payments are accelerated:\r\n<ul>\r\n \t<li>30% of the value for receivables overdue from 3 months to under 6 months.<\/li>\r\n \t<li>50% of the value for receivables overdue from 6 months to under 9 months.<\/li>\r\n \t<li>70% of the value for receivables overdue from 9 months to under 12 months.<\/li>\r\n \t<li>100% of the value for receivables overdue from 12 months or more.<\/li>\r\n<\/ul>\r\nFor receivables that are not yet due for payment but for which the enterprise has evidence indicating that the economic organization has gone bankrupt, initiated bankruptcy proceedings, or fled its place of business; the debtor is being prosecuted, detained, tried, or is serving a sentence by legal authorities, or is suffering from a terminal illness or has deceased; or where the debt has been submitted for enforcement but cannot be executed because the debtor has fled their place of residence; or where the debt has been the subject of a lawsuit for collection but the case has been suspended or for other reasons, the enterprise shall estimate the expected irrecoverable loss (up to a maximum of the carrying amount recorded in the accounting books) to establish a provision for bad debts.\r\n\r\nIn cases where the enterprise possesses more reliable evidence or a more appropriate method for determining the recoverable amount of the receivable, it may apply that method to determine the provision for bad debts.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Provision for Held-to-Maturity (HTM) Investments<\/strong><\/td>\r\n<td style=\"width: 39%;\">For investees that are parent companies, the basis for the investor to make a provision for impairment of investments in other entities is the Consolidated Financial Statements of that parent company. For investees that are independent enterprises without subsidiaries, the basis for the investor to make a provision for impairment of investments in other entities is the Financial Statements of that investee.\r\n\r\nAccount 2292 - Provision for impairment of investments in other entities: This account reflects the recognition or reversal of a provision due to the investee incurring losses, which leads to the investor's potential loss of capital. Account 2293 - Provision for doubtful debts: This account reflects the recognition or reversal of the provision for doubtful receivables and held-to-maturity investments.<\/td>\r\n<td style=\"width: 39%;\">The provision is made when there is evidence that a part or the whole of the enterprise's held-to-maturity investment may not be recoverable.\r\n\r\nRecorded in account 2292.\r\n\r\nAccount 2292 - Provision for impairment of investments in other entities: This account reflects the recognition or reversal of the provision for impairment of investments in other entities.\r\n\r\nAccount 2293 - Provision for doubtful debts: This account reflects the recognition or reversal of the provision for doubtful debts.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Provision for impairment of biological assets<\/strong><\/td>\r\n<td style=\"width: 39%;\">Not regulated.<\/td>\r\n<td style=\"width: 39%;\">The provision is recognized when there is evidence that the net realizable value is lower than the original cost of the biological assets. The accounting for the recognition and reversal of the provision for impairment of biological assets is carried out similarly to the enterprise's inventory.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Accounting for provision expenses<\/strong><\/td>\r\n<td style=\"width: 39%;\">- Provision for devaluation of trading securities: Recorded in financial expenses (Account 635).\r\n- Provision for impairment of long-term financial investments: Recorded in financial expenses (Account 635).\r\n- Provision for doubtful debts: Recorded in general and administrative expenses (Account 642).\r\n- Provision for devaluation of inventory: Recorded in cost of goods sold (Account 632).<\/td>\r\n<td style=\"width: 39%;\">Maintain the principles under Circular 200, and add supplementary guidance:\r\n\r\nProvision for impairment of biological assets: Recorded in cost of goods sold (Account 632).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Treatment upon write-off of bad debts<\/strong><\/td>\r\n<td style=\"width: 39%;\">When writing off a bad debt, the portion for which a provision has been made is offset against Account 229. The remaining balance (if any) is recorded in general and administrative expenses.<\/td>\r\n<td style=\"width: 39%;\">For receivables that are determined as unlikely to be recovered or unrecoverable, which the enterprise decides to write off. Based on the write-off decision, record:\r\n\r\nDebit Accounts 111, 112, 331, 334... (the portion to be compensated by organizations or individuals)\r\n\r\nDebit Account 229 - Provision for impairment of assets (2293) (the provisioned portion)\r\n\r\nDebit Account 642 - General and administrative expenses (the portion included in expenses)\r\n\r\nCredit Accounts 131, 138,..\r\n\r\nAt the same time, the enterprise must open a detailed ledger to monitor the written-off bad debts in accordance with regulations.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Financial Statement Notes<\/strong><\/td>\r\n<td style=\"width: 39%;\">General requirements, lacking detail.<\/td>\r\n<td style=\"width: 39%;\">Require more detailed disclosures on the reasons for the recognition\/reversal and related information.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nIn general principle, Circular 99 essentially inherits the approach of Circular 200: an enterprise only makes a provision when there is evidence that an asset is impaired or unlikely to be recovered; in case the enterprise does not meet the going concern assumption, the impairment is directly written down against the carrying amount of the asset, not recognized through a provision account. This principle is applied consistently to all types of assets.\r\n\r\nThe core difference of Circular 99 lies in expanding the scope of assets subject to provision consideration. Besides the familiar provision groups, Circular 99 for the first time adds a provision for impairment of biological assets, which is made when the net realizable value is lower than the original cost under the asset devaluation provision mechanism, similar to inventory. This addition reflects the specific risks of agricultural operations and completes the accounting framework for enterprises with biological assets \u2013 a matter entirely unmentioned in Circular 200.\r\n\r\nRegarding the provision for doubtful debts, Circular 99 does not create a new provision rate framework, but directly inherits the quantitative provision mechanism based on overdue periods stipulated in Circular 48\/2019\/TT-BTC. Accordingly, the provision rates of 30% \u2013 50% \u2013 70% \u2013 100% based on debt age continue to be applied consistently, including specific regulations for industries with high credit risk such as telecommunications and retail. Unlike Circular 48 \u2013 which was issued in the context of cost and tax management, Circular 99 integrates this provision mechanism directly into the accounting system and Notes to the Financial Statements, thereby elevating the provision framework from a cost management requirement to a mandatory accounting policy that must be disclosed.\r\n\r\nA notable advancement is that Circular 99 does not limit enterprises to making provisions solely based on predetermined rates, but allows the application of a method based on reliable evidence when the recoverable amount is lower than the level determined by the overdue period. This approach represents a shift towards an evidence-based approach, while creating room for enterprises with good risk management systems to reflect credit risks more closely to reality.\r\n\r\nFor held-to-maturity investments, Circular 99 clarifies the principle of making a provision when there is evidence showing that a part or the whole of the investment may not be recoverable, thereby shifting the evaluation focus from the holding intention to the ability to recover future cash flows. This approach is more consistent with the credit nature of debt instruments and loans.\r\n\r\nPlaced in correlation with IFRS 9- Financial Instruments, Circular 99 has not yet applied the Expected Credit Loss (ECL) model and also does not require the stratification of assets according to risk stages. However, expanding the provision scope (including biological assets), combined with the provision mechanism based on overdue periods and allowing the use of more reliable evidence, shows a clear convergence in the mindset of recognizing losses earlier when risks increase, instead of only recognizing them when the losses have fully materialized.\r\n\r\nCircular 99 can be seen as an intentional transitional step: both enhancing provision discipline and the transparency of financial statements, while better reflecting the actual economic risks, and simultaneously suiting the system and data capabilities of Vietnamese enterprises, before moving towards more complex expected loss models in the future."},{"faq_title":"5.13 Construction in progress","faq_content":"Construction in progress (CIP) is an area involving a high degree of judgment, extended durations, and is prone to the risk of incorrect cost capitalization. Compared to Circular 200, Circular 99 does not change the core accounting nature of CIP but more strictly standardizes the capitalization conditions, the scope of recognized costs, and the requirements for information transparency, thereby tightening the discipline in recognizing the value of assets formed from construction investments.\r\n\r\nBelow is the detailed comparison table:\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content of comparison<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>General principles on cost capitalization<\/strong><\/td>\r\n<td style=\"width: 39%;\">Capital construction investment costs are all necessary costs for new construction, repair, upgrade, renovation, expansion, or technical re-equipping of works in accordance with the law on construction investment cost management.<\/td>\r\n<td style=\"width: 39%;\">Maintain the above principles, but emphasize that only costs directly related to the capital construction investment activities of Fixed Assets (FA) and Investment Properties (IP) (which are necessary and unavoidable costs when carrying out capital construction investment activities) and where the investment and construction process of the in-progress asset is not abnormally interrupted due to delayed implementation or falling behind schedule compared to the expected construction time,... are capitalized into the value of the FA, IP.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Accounting for borrowing costs<\/strong><\/td>\r\n<td style=\"width: 39%;\">Borrowing costs directly related to the loan (other than interest payable), such as appraisal, auditing, loan documentation preparation, loan arrangement fees,... are recorded in financial expenses. Borrowing interest is capitalized if it meets the conditions under Vietnamese Accounting Standard No. 16 - Borrowing costs.<\/td>\r\n<td style=\"width: 39%;\">Borrowing costs other than interest are capitalized if they arise from a separate loan for the investment, construction of in-progress assets and satisfy VAS 16. In case of borrowing to invest in subsidiaries, joint ventures, or associates, they are not capitalized.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Completed projects without approved settlement<\/strong><\/td>\r\n<td style=\"width: 39%;\">Record an increase in the historical cost of FA based on the provisional price for depreciation, then adjust according to the approved settlement price.<\/td>\r\n<td style=\"width: 39%;\">Recording an increase in the historical cost of FA based on the provisional price must be based on the actual costs incurred and the estimated costs certain to be expended to acquire the FA. Then adjust according to the approved settlement price.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Cancelled or impaired projects<\/strong><\/td>\r\n<td style=\"width: 39%;\">When an investment project is cancelled or impaired, the enterprise must liquidate and recover the incurred costs of the project. The difference between the actual incurred investment costs and the proceeds from liquidation is recognized in other expenses or determines the compensation responsibility of organizations and individuals for recovery.<\/td>\r\n<td style=\"width: 39%;\">Maintain the principles but add specific journal entries according to the decision of the competent authority:\r\n- Debit Accounts 111, 112 (Proceeds from project liquidation)\r\n- Debit Account 138 - Other receivables (Amount to be compensated by organizations, individuals)\r\n- Debit Account 811 - Other expenses (Amount included in other expenses)\r\n- Credit Account 241 - Construction in progress.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Repair and maintenance of FA<\/strong><\/td>\r\n<td style=\"width: 39%;\">- Routine repair: Recorded directly into production and business expenses in the period.\r\n- Periodic major repair: Can pre-accrue major repair expenses or allocate to prepaid expenses.\r\n- Upgrade, renovation increasing capacity or extending useful life: Recorded as an increase in historical cost of FA.<\/td>\r\n<td style=\"width: 39%;\">Maintain the principles, except:\r\n\r\n- Periodic repair and maintenance: Enterprises are allowed to record in Account 242 (Prepaid expenses) and periodically allocate to production and business expenses of the FA using department, except where a provision for environmental restoration is made.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Perennial plants yielding periodic products<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulations. Related costs are usually capitalized into the FA historical cost when the plant begins to yield products.<\/td>\r\n<td style=\"width: 39%;\">For perennial plants yielding periodic products qualifying as FA (tea, coffee, rubber, pepper, fruit trees,...), the costs of land clearing, soil preparation, planting, tree care,... during the capital construction period (before the mature stage, starting to yield initial harvests) are reflected in Account 241 - Construction in progress. When the perennial plants yielding periodic products mature and begin to yield products, the enterprise transfers from Account 241 - Construction in progress to Account 211 - Tangible FA.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>IP formed from capital construction<\/strong><\/td>\r\n<td style=\"width: 39%;\" colspan=\"2\">Accumulate costs in Account 241, transfer to Account 217 upon completion.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Subsequent costs of IP after initial recognition<\/strong><\/td>\r\n<td style=\"width: 39%;\">Recognized as period expenses, unless they increase future economic benefits.<\/td>\r\n<td style=\"width: 39%;\">Upgrade and renovation costs satisfying the capitalization conditions or the purchase price of the asset including the enterprise's obligations to bear the necessary costs to be incurred to bring the IP to a working condition as intended by the enterprise are accumulated in Account 241 and then transferred to increase the historical cost of IP.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Accounting accounts<\/strong><\/td>\r\n<td style=\"width: 39%;\">Account 241 \u2013 Construction in progress.<\/td>\r\n<td style=\"width: 39%;\">Use Account 241 - Construction in progress, with 4 sub-accounts:\r\n- Account 2411 - FA procurement\r\n- Account 2412 - Capital construction\r\n- Account 2413 - Periodic repair and maintenance of FA\r\n- Account 2414 - FA upgrade and renovation<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Presentation and disclosures<\/strong><\/td>\r\n<td style=\"width: 39%;\">Presented on the Balance Sheet under the line item \"Construction in progress\".<\/td>\r\n<td style=\"width: 39%;\">Presented on the Financial Statements under the item \"Construction in progress\" within the \"Long-term work in progress\" section.\r\n\r\nRequire detailed disclosures for projects accounting for 10% or more of the total CIP value, including: Procurement, Capital construction, Periodic repair and maintenance, FA upgrade and renovation.\r\n\r\nNeed to clearly state the basis for revaluation; if revaluation is not possible, explain the reasons.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nCompared to Circular 200, Circular 99 does not expand the scope of CIP capitalization but sets out clearer \"disciplinary conditions\" for the costs permitted to be recognized. The focus of the change lies in linking capitalization with the continuity, necessity, and the ability to generate economic benefits in the future, instead of relying solely on the fact that the costs have been incurred.\r\n\r\nThe detailed breakdown of Account 241, the elimination of the pre-accrual mechanism for major repairs, the clarification of determining the provisional price, and the standardized treatment of cancelled projects show that Circular 99 aims to reduce the room for arbitrary judgment, while increasing the capacity for post-audit control. For enterprises with large, long-term investment projects, Circular 99 forces a review of their capitalization policies, project progress, cost records, and detailed tracking systems, if they do not want to face the risk of retrospective adjustments and qualified audit opinions."},{"faq_title":"5.14 Prepaid expenses","faq_content":"Prepaid expenses (Account 242) is an area that was used quite broadly in Vietnamese accounting practice to \"spread\" large expenditures over multiple periods. Circular 99 does not change the core concept of prepaid expenses, but strongly restructures the scope permitted for recognition, narrowing down expenditures that are period costs in nature and simultaneously raising the requirements for judgment and transparent presentation on the financial statements compared to Circular 200.\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content of comparison<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>General principles<\/strong><\/td>\r\n<td style=\"width: 39%;\">Account 242 is used to reflect actual incurred expenses but relating to the production and business results of multiple accounting periods.<\/td>\r\n<td style=\"width: 39%;\">Account 242 reflects actual incurred expenses, including both prepaid and non-prepaid expenses, but relating to the production and business results of multiple accounting periods.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Recognized items<\/strong><\/td>\r\n<td style=\"width: 39%;\">Items recognized as prepaid expenses include:\r\n- Enterprise establishment costs, staff training costs, advertising costs incurred during the pre-operating stage of a newly established enterprise, research stage costs, relocation costs.\r\n- Business goodwill upon equitization of state-owned enterprises (SOEs).\r\n- Interest on deferred\/installment purchase of assets, prepaid borrowing costs or bond interest paid immediately upon issuance.\r\n- Other incurred costs generating future economic benefits for the enterprise.<\/td>\r\n<td style=\"width: 39%;\">Significantly narrow the scope, focusing on items directly tied to the use of assets and multi-period production and business activities, such as:\r\n\r\n- Costs of leasing infrastructure, operating lease of FA incurred to serve multi-period production and business.\r\n- Insurance purchase costs and expenditures paid lump-sum by the enterprise for multiple accounting periods.\r\n- Tools, implements, reusable packaging, items for rent relating to business activities in multiple accounting periods.\r\n- Periodic repair and maintenance costs of FA relating to business activities in multiple accounting periods[TT1] [TN2], except where the enterprise leasing the asset has the obligation to repair, maintain, and restore to bring the asset back to its original condition.\r\n- The difference where the selling price is lower than the carrying amount of FA in a sale and leaseback transaction that is a finance lease.\r\n- The difference where the selling price is lower than the fair value of FA in a sale and leaseback transaction that is an operating lease.\r\n- Goodwill arising from a business combination that does not result in a parent-subsidiary relationship (purchase of net assets), except for business combinations under common control.\r\n- Other prepaid expenses not satisfying the conditions for FA, e.g., other costs incurred relating to multiple periods, fees for reading documents on natural resource and mineral exploitation.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Allocation period and method<\/strong><\/td>\r\n<td style=\"width: 39%;\">Stipulate the allocation period for certain specific cases (e.g., maximum of 3 years for enterprise establishment costs, staff training, pre-operating advertising, research costs, relocation costs).<\/td>\r\n<td style=\"width: 39%;\">Enterprises self-determine the allocation method and criteria based on the nature and extent of benefits of each type of expense.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Periodic repair and maintenance costs of FA<\/strong><\/td>\r\n<td style=\"width: 39%;\">- Major repair costs of FA are reflected in Account 2413 - Major repair of FA.\r\n- In case of routine repairs, charged directly to production and business expenses in the period.<\/td>\r\n<td style=\"width: 39%;\">Periodic repair and maintenance costs of FA relating to business activities in multiple accounting periods are recognized in Account 242 - Prepaid expenses. When the periodic repair and maintenance work is completed, transfer the costs from Account 2413 - Periodic repair and maintenance of FA to Account 242. Periodically, calculate and allocate to production and business expenses in each period.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Accounting for goodwill<\/strong><\/td>\r\n<td style=\"width: 39%;\">Business goodwill upon equitization of SOEs is tracked in Account 242 and allocated.<\/td>\r\n<td style=\"width: 39%;\">Goodwill arising from a business combination that does not result in a parent-subsidiary relationship (purchase of net assets), except for business combinations under common control, is recognized in Account 242 - Prepaid expenses.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Presentation on Financial Statements<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulations on separately presenting short-term &amp; long-term prepaid expenses on the Financial Statements.<\/td>\r\n<td style=\"width: 39%;\">When presenting the Financial Statements, separate short-term and long-term prepaid expenses and do not reclassify from long-term to short-term prepaid expenses.\r\n\r\nRequire detailed disclosures by each expense item for both short-term and long-term.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nCompared to Circular 200, Circular 99 clearly demonstrates the orientation to narrow the \"buffer\" role of Account 242, eliminating expenditures of a start-up, training, promotional, or research nature which are essentially period costs. Instead, prepaid expenses are mainly limited to items directly tied to the use of assets, contracts, or economic obligations spanning multiple periods, where economic benefits are gradually consumed over time.\r\n\r\nRegarding repair and maintenance costs of FA, Circular 99 does not expand the scope of allocated costs compared to Circular 200, but standardizes the accounting technique. Routine repair and maintenance costs aimed at maintaining FA in normal operating condition are still recognized directly into production and business expenses in the period. Specifically for periodic repair and maintenance according to technical requirements, Circular 99 allows accumulating costs in Account 241 during the execution phase and, upon completion, transferring to Account 242 for gradual allocation into the subsequent benefiting periods. This approach replaces the mechanism of pre-accruing repair costs under Circular 200, but does not change the boundary between period costs, allocated costs, and capitalized costs.\r\n\r\nThe removal of predetermined allocation timeframes and the requirement to clearly separate short-term and long-term prepaid expenses show that Circular 99 is not loosening, but shifting the focus to professional judgment and accounting policy responsibility. Enterprises are forced to review the entire portfolio of expenses pending in Account 242, adjust those items that no longer meet the recognition criteria, and simultaneously build a consistent and explainable allocation basis.\r\n\r\nOverall, Circular 99 returns prepaid expenses to their proper role: a tool reflecting the allocation of benefits over time, instead of a means of profit regulation between accounting periods as in previous application practices."},{"faq_title":"5.15 Revenue","faq_content":"Revenue is not only the most important indicator on the Income Statement but also the area involving the highest degree of professional judgment in the entire enterprise accounting system. The transition from Circular 200 to Circular 99 marks a significant turning point in the philosophy of revenue recognition in Vietnam. If Circular 200 still places its focus on the legal form and the point of transaction completion in the traditional sense, then Circular 99 has taken a considerable step forward: approaching revenue through the lens of the economic substance of the contract and the true role of the enterprise in the value chain, thereby demonstrating a clear convergence with the spirit of IFRS 15 - Revenue from Contracts with Customers.\r\n\r\nThe content below will deeply analyze the core changes between the two circulars and evaluate the degree of convergence of Circular 99 with IFRS 15, thereby helping enterprises and accountants better prepare for the transition period.\r\n\r\nBelow is the detailed comparison table:\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content of comparison<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 200\/2014\/TT-BTC<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99\/2025\/TT-BTC<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Matching principle<\/strong><\/td>\r\n<td style=\"width: 39%;\">Revenue and expenses that generate that revenue must be recognized simultaneously according to the matching principle.<\/td>\r\n<td style=\"width: 39%;\">Revenue and expenses relating to the generation of that revenue (including expenses of the period generating the revenue and expenses of previous periods or accrued expenses but relating to the revenue of that period) must be recognized simultaneously according to the matching principle.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Conditions for recognizing sales revenue<\/strong><\/td>\r\n<td style=\"width: 39%;\">Emphasizes the transfer of risks and rewards, lack of continuing managerial involvement\/control, revenue determined relatively certainly; has detailed regulations on the right to return goods.<\/td>\r\n<td style=\"width: 39%;\">Maintains the core conditions but removes detailed regulations on the right to return goods.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Distinguishing principal - agent<\/strong><\/td>\r\n<td style=\"width: 39%;\">No regulations.<\/td>\r\n<td style=\"width: 39%;\">Regulates the definition &amp; method to identify the entity directly providing goods, services (principal) and the intermediary entity (agent).\r\n\r\nThe agent's revenue is recognized as the commission entitled to from the sales transaction.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Items excluded from revenue<\/strong><\/td>\r\n<td style=\"width: 39%;\">Excludes indirect taxes, surcharges the enterprise is not entitled to, amounts collected on behalf of agents.<\/td>\r\n<td style=\"width: 39%;\">Expands to include amounts the enterprise collects on behalf to pay third parties (humanitarian donations, payments on behalf of partners...).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Revenue from asset leasing received in advance<\/strong><\/td>\r\n<td style=\"width: 39%;\">Allocate the rental amount received in advance over the lease term or recognize the entire unearned revenue lump-sum immediately in case the lease term accounts for over 90% of the asset's useful life if all the following conditions are met: the lessee has no right to a refund of the amount paid, the amount received in advance accounts for over 90% of the total estimated rental revenue within 12 months from the lease commencement, risks and rewards attached to ownership have been transferred to the lessee, and the value of the leasing activity can be estimated relatively fully.<\/td>\r\n<td style=\"width: 39%;\">Maintain the principles, while requiring the separation of components if the contract has multiple elements (sale, lease, ...) and detailed disclosures.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Real estate sales revenue of investors<\/strong><\/td>\r\n<td style=\"width: 39%;\">- For works, work items where the enterprise is the investor, the enterprise is not allowed to recognize real estate sales revenue according to the Construction Contract Accounting Standard and is not allowed to recognize revenue for amounts collected in advance from customers based on progress. The recognition of real estate sales revenue must satisfy all 5 conditions simultaneously.\r\n\r\n- No regulations regarding the case where the enterprise is a real estate business investor that has not yet gathered full dossiers, documents on costs directly related to the real estate investment and construction but has incurred real estate transfer revenue, it is allowed to pre-accrue a portion of the costs to provisionally calculate the cost of goods sold for the real estate handed over to customers.<\/td>\r\n<td style=\"width: 39%;\">Maintain the principles, but add:\r\n\r\n- For works that are tourist apartments (condotels), office-tel apartments or similar products under the current laws on real estate business: The enterprise bases on the substance of the contract terms regarding the term, rights and obligations of the parties in the contract; relevant Vietnamese accounting standards and the corporate accounting regime to identify each sales component, lease component, financing component (if any), ... in that contract, applying an accounting policy suitable to the characteristics and substance of the transaction as the basis for recognizing revenue corresponding to each component. Simultaneously, the enterprise must disclose on the Financial Statements the accounting policy, the substance of the contract (rights and obligations of the parties) and the accounting treatment that the enterprise assesses as most appropriate.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Construction contract revenue<\/strong><\/td>\r\n<td style=\"width: 39%;\">Recognized based on progress or volume completed, depending on contract terms.<\/td>\r\n<td style=\"width: 39%;\">The principle for recognizing and determining construction contract revenue remains similar to Circular 200.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>State subsidy and price support revenue<\/strong><\/td>\r\n<td style=\"width: 39%;\">Subsidy, price support revenue is the amount officially notified by the State, or actually subsidized, price-supported.<\/td>\r\n<td style=\"width: 39%;\">Subsidy, price support revenue is the subsidy, price support amount entitled to.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Regarding construction management fees<\/strong><\/td>\r\n<td style=\"width: 39%;\">For enterprises assigned to manage investment and construction projects using State budget capital or Government bonds, local bonds, in case of preparing project management cost estimates according to State regulations on construction investment using State budget capital, the project management funding reimbursed by the State budget is not accounted for as revenue but recorded as a reduction in project management expenses.<\/td>\r\n<td style=\"width: 39%;\">For enterprises assigned to manage investment and construction projects using State budget capital or Government bonds, local bonds, in case of preparing project management cost estimates according to State regulations on construction investment using State budget capital, the project management funding paid by the State budget is not accounted for as revenue or expenses of the enterprise but accounted for as amounts collected and paid on behalf.\r\n\r\nIn case the project enterprise by nature is only an entity acting on behalf of investors to carry out project management work as stipulated in the contract, paying construction, consulting, site clearance contracts,... for contractors and accumulating investment and construction costs of works, work items to settle the entire funding as well as hand over the completed works, work items to the investor, the project enterprise is not allowed to recognize the project funding received from investors or from loans as the enterprise's revenue but must recognize it as other payables, other amounts to be remitted (collected on behalf - paid on behalf).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Accounting for revenue<\/strong><\/td>\r\n<td style=\"width: 39%;\">Journal entries recognizing sales, service revenue under Account 511.<\/td>\r\n<td style=\"width: 39%;\">Basic journal entries unchanged.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Notes to the Financial Statements<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific regulations on disclosing revenue from transactions selling tourist apartments, office-tel apartments.<\/td>\r\n<td style=\"width: 39%;\">In case the enterprise incurs revenue from transactions selling tourist apartments, office-tel apartments or similar products, it must disclose on the Financial Statements the accounting policy, the substance of the contract (rights and obligations of the parties) and the accounting recognition method that the enterprise assesses as most appropriate.\r\n\r\nDisclose the term, characteristics, value,... to identify, recognize revenue corresponding to each sales component, lease component, financing component.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<strong>Matching principle: expanding the scope, without changing the substance<\/strong>\r\n\r\nThe matching principle between revenue and expenses is the foundation of accrual accounting and plays an important role in ensuring the faithful representation of the Income Statement. Circular 200 stipulates that revenue and the expenses that generate that revenue must be recognized simultaneously. However, in practice, this regulation is often interpreted in a narrow sense: only expenses incurred in the same period as the revenue are considered to satisfy the matching principle.\r\n\r\nCircular 99 has intentionally clarified and expanded the scope of this principle. Under the new regulations, revenue and expenses relating to the generation of that revenue not only include expenses of the current period, but also include expenses of previous periods or accrued expenses but relating to the revenue of that period. This clarification does not create a new principle, but aims to adjust the understanding and application in practice.\r\n\r\nFor example, warranty costs relating to products sold in the current period, even if actually incurred in subsequent periods, must still be recognized immediately in the sales period as a provision, because these are costs tied directly to the recognized revenue. Similarly, expenses incurred in previous periods but qualifying for recognition as prepaid expenses can be allocated to the expenses of the current period, if that expense has a direct relationship with the revenue of the period and fully meets the current accounting regulations.\r\n\r\nThis approach demonstrates an emphasis on the economic relationship between revenue and expenses, but Circular 99 still maintains the traditional accounting technical framework and has not yet shifted to the contract asset or performance obligation model like IFRS 15.\r\n\r\n<strong>Conditions for recognizing sales revenue: increasing the role of judgment<\/strong>\r\n\r\nBasically, Circular 99 retains the five conditions for recognizing sales revenue stipulated in Circular 200, including the transfer of the majority of risks and rewards, no continuing managerial involvement\/control, revenue determined relatively certainly and related costs can be determined.\r\n\r\nA notable difference is that Circular 99 no longer maintains the detailed descriptive guidance on the right of return like Circular 200. Under Circular 200, revenue recognition in cases where contracts have a return clause was specifically guided, including estimating the rate of returned goods based on past experience and related factors. The omission of these detailed guidelines in Circular 99 does not mean the right of return no longer affects revenue recognition.\r\n\r\nOn the contrary, Circular 99 approaches the issue at a more principled level, considering the right of return as a factor to be considered when assessing the condition \"revenue is determined relatively certainly\". Accordingly, the enterprise needs to base on the substance of the rights and obligations in the contract to evaluate the reliability of the revenue. In case the right of return is significant or cannot be estimated reliably, the enterprise should consider deferring revenue recognition or only recognizing revenue to the extent it can be determined certainly, in accordance with the revenue recognition conditions under current regulations.\r\n\r\nCompared to IFRS 15, Circular 99 has not yet applied the mechanism of variable consideration and the constraining revenue principle to avoid having to make downward adjustments in the future. However, both share a common principle: revenue should only be recognized when there is a reliable basis. The approach of Circular 99 therefore reduces the mechanical nature of the regulations, while requiring accountants to consider and exercise more judgment when recognizing revenue, but still within the framework of current revenue recognition conditions.\r\n\r\n<strong>Distinguishing between Principal and Agent: A Structural Change<\/strong>\r\n\r\nOne of the notable changes in Circular 99 is the introduction of the principle to distinguish between a principal and an agent. Previously, Circular 200 did not have specific and clear regulations on this issue, leading many enterprises to tend toward recognizing revenue at gross value for the entire transaction without fully distinguishing their actual role in the supply chain. This could lead to revenue being presented higher than its actual value and failing to accurately reflect the economic substance of business activities.\r\n\r\nThrough the regulations distinguishing between principal and agent, Circular 99 emphasizes that revenue must reflect the portion of economic benefits that the enterprise actually controls and is entitled to. Accordingly, when an enterprise controls the goods or services before they are transferred to the customer and bears primary responsibility for providing those goods or services, the enterprise recognizes revenue at the gross value of the transaction. Conversely, if the enterprise only acts as an intermediary, arranging for a third party to provide goods or services to the customer, its revenue only includes the commission or service fee earned.\r\n\r\nIn essence, this logic is similar to the principal\u2013agent approach in IFRS 15. However, Circular 99 only stops at providing general principles regarding the control of goods and services, without requiring enterprises to perform detailed analysis based on specific indicators like IFRS 15, such as primary responsibility for contract fulfillment, inventory risk, pricing latitude, or credit risk.\r\n\r\nTherefore, the assessment of the principal or agent role under Circular 99 is principle-based and consistent with the level of complexity of the Vietnamese accounting framework. Nevertheless, this regulation is still clear enough to limit the recognition of gross revenue that does not reflect economic substance, especially in sectors such as e-commerce, travel and tourism, real estate brokerage, and digital service platforms.\r\n\r\n<strong>Amounts Excluded from Revenue and the Concept of \"Collection and Payment on Behalf\"<\/strong>\r\n\r\nCircular 99 clarifies the treatment of cases where an enterprise collects money from customers but does not derive an economic benefit from it, including payments made on behalf of third parties. Circular 200 previously stipulated that indirect taxes, surcharges not entitled to the enterprise, and funds collected by an agent on behalf of a principal are not to be included in revenue. Building on this foundation, Circular 99 continues to emphasize the accounting of amounts collected by an enterprise to pay third parties\u2014for example, humanitarian donations collected through the enterprise or payments made on behalf of business partners.\r\n\r\nThe focus of the regulation does not lie in specific examples, but rather in the applied accounting principle: only funds associated with economic benefits that the enterprise is actually entitled to may be recognized as revenue. In cases where the enterprise merely acts as an intermediary collecting and paying on behalf of another party, with no right to use or benefit from that cash flow, these receipts and payments must be accounted for as \"collections and payments on behalf\" (recorded as payables or liabilities) instead of being recognized as the enterprise's own revenue and expenses.\r\n\r\nThis approach is consistent with the principal\u2013agent distinction logic and is fully aligned with IFRS, as IFRS also prohibits the recognition of revenue for intermediary cash flows.\r\n\r\n<strong>Revenue from Asset Leasing and Multiple-Element Arrangements: Component Analysis Without IFRS Price Allocation<\/strong>\r\n\r\nRegarding revenue from asset leasing, Circular 99 fundamentally inherits the principles of Circular 200, whereby upfront lease payments are gradually allocated to revenue over the lease term. In cases where the lease term accounts for over 90% of the asset's useful life, enterprises have the option to recognize the entire upfront revenue at once if the following conditions are simultaneously met: the lessee has no right to a refund of the amount paid; the upfront amount accounts for over 90% of the total expected lease revenue within 12 months from the commencement of the lease; the risks and rewards associated with ownership have been transferred to the lessee; and the value of the lease operation can be estimated relatively fully.\r\n\r\nA notable new point is that Circular 99 emphasizes the requirement to analyze contracts in cases where a contract includes multiple elements or distinct components, such as a combination of goods sales, asset leasing, or a financing component. In these cases, enterprises need to consider the nature of each component and clearly disclose the accounting policies applied to each part in the financial statements.\r\n\r\nCompared to Circular 200 which did not specifically mention multiple-element contracts this is a step forward in terms of analytical requirements and information transparency. However, Circular 99 only stops at requiring the identification and separation of components, without requiring the application of complex measurement techniques such as identifying separate performance obligations or allocating the transaction price based on stand-alone selling prices like IFRS 15. Under IFRS 15, the transaction price in a contract with multiple performance obligations must be allocated to each obligation on the basis of its stand-alone selling price, even if this price must be estimated. Therefore, Circular 99's approach can be seen as converging with IFRS 15 at the level of contract analysis mindset and transparency requirements, while still retaining the current technical accounting framework in Vietnam.\r\n\r\n<strong>Real Estate Revenue and Complex Contracts: Converging with IFRS at a Conceptual Level<\/strong>\r\n\r\nThe real estate sector involves a high degree of complexity in revenue recognition, especially for hybrid products such as tourist apartments (condotels) or office-stay apartments (officetels). These products often simultaneously encompass selling, leasing, and financing elements within the same contract, making revenue determination difficult.\r\n\r\nUnder Circular 200, enterprises acting as real estate developers are not permitted to apply the construction contract standard and cannot recognize revenue for advance payments collected according to project schedules. Revenue from the sale of real estate is only recognized when all five revenue recognition conditions are simultaneously satisfied, similar to the ordinary sale of goods. However, Circular 200 lacked specific guidance for real estate products with a hybrid nature.\r\n\r\nCircular 99 retains these revenue recognition principles but simultaneously emphasizes the requirement to analyze the substance of contracts for products such as condotels, officetels, or similar offerings. Enterprises must base their analysis on contract terms regarding the duration, rights, and obligations of the parties, in conjunction with relevant Vietnamese Accounting Standards, to identify and separate the selling component, leasing component, and financing component within the contract, thereby applying the appropriate accounting policy for each component.\r\n\r\nFurthermore, Circular 99 requires enterprises to clearly disclose in their financial statements the nature of the contracts, the applied accounting policies, and the selected accounting bases. This requirement aims to enhance transparency and help users of financial statements understand the enterprise's revenue recognition logic.\r\n\r\nIt should be noted that Circular 99 does not change the real estate revenue recognition model under Circular 200, nor does it adopt the five-step model of IFRS 15. However, the emphasis on analyzing contract substance and the requirement for detailed disclosures indicate that Circular 99 converges with the spirit of IFRS 15 at a principled level, particularly the \"substance over form\" principle, while still maintaining the current technical accounting framework in Vietnam.\r\n\r\n<strong>Project Management Fees Using State Capital: From Expense Reduction to Collection and Payment on Behalf<\/strong>\r\n\r\nA notable change in Circular 99 relates to the accounting treatment of management fees for construction investment projects using state budget capital, government bonds, or local bonds. Under Circular 200, project management funding reimbursed by the state budget was not recognized as revenue but was accounted for as a reduction in project management expenses.\r\n\r\nCircular 99 adjusts this approach to better reflect the economic substance of the transaction. Accordingly, project management funding paid by the state budget is not recognized as the enterprise's revenue or expense, but must be accounted for as collections and payments on behalf. This treatment is appropriate in cases where an enterprise is assigned to perform project management tasks but is not the actual project owner, acting merely as a representative performing management and payment tasks under authorization.\r\n\r\nThis principle also applies to project enterprises that, in essence, only act on behalf of investors to manage projects, make payments to construction contractors, consultants, and for site clearance, and aggregate costs for final settlement before handing them back to the project owner. In these cases, funds received from the project owner or from borrowed capital are not recognized as revenue, but are reflected as other payables (collections and payments on behalf).\r\n\r\nThis treatment is consistent with the general orientation of Circular 99, whereby revenue is only recognized when the enterprise actually generates and enjoys economic benefits; it does not apply to funds where the enterprise acts solely as an intermediary or representative.\r\n\r\nOverall, Circular 99 does not create a revolutionary change in revenue accounting techniques, but it does bring about a significant shift in the accounting mindset. Compared to Circular 200, Circular 99 requires accountants to have a deeper understanding of contracts, the enterprise's role, and the actual flow of economic value generated. The areas of convergence with IFRS 15 in Circular 99 are clearly grounded in the Circular's wording and are limited to a directional level, without imposing the full IFRS model. This very prudence ensures that Circular 99 remains feasible within Vietnam's practical context while serving as an important stepping stone for the roadmap toward integration with international standards in the future."},{"faq_title":"5.16 Accounting for the Global Minimum Tax (GMT)","faq_content":"Circular 99, for the first time, establishes a specialized accounting account - <strong>Account 82112 (Additional corporate income tax expense under global minimum tax regulations) - <\/strong>to reflect the top-up tax obligation arising under the Global Minimum Tax (GMT) mechanism in Vietnam, based on the implementation of Resolution 107\/2023\/QH15.\r\n\r\nAccordingly, enterprises within the scope of application must separately recognize the top-up tax incurred when the effective tax rate in Vietnam falls below the 15% minimum, ensuring the accurate reflection of tax obligations in accordance with the OECD's Global Anti-Base Erosion (GloBE) standards. The addition of this specialized account not only helps to separate current corporate income tax (CIT) from the GMT top-up tax but also enhances transparency, traceability, and data reconciliation when preparing financial statements, finalizing taxes, and working with regulatory authorities.\r\n\r\n<strong>The GMT accounting mechanism is guided by a two-layer model:<\/strong>\r\n<ul>\r\n \t<li><strong>The first layer<\/strong> reflects the tax obligation to the State through Account 3334 (Corporate income tax payable). All top-up taxes incurred during the period are aggregated here, regardless of which constituent entity within the group the obligation belongs to.<\/li>\r\n \t<li><strong>The second layer<\/strong> reflects intra-group allocation relationships through Account 1388 (Intercompany receivables) and Account 3388 (Intercompany payables). This approach ensures that the top-up tax expense is allocated according to its economic substance to each relevant constituent entity, while the filing obligation remains centralized at a single focal point.<\/li>\r\n<\/ul>\r\n<strong>Entries for the Filing Entity<\/strong>\r\n\r\nFor the <strong>constituent entity responsible for filing<\/strong>, when determining the estimated top-up tax payable for the period, the entity simultaneously records two journal entries:\r\n\r\n<strong>Entry 1: Recognizing the top-up tax expense &amp; obligation to the State<\/strong>\r\n<ul>\r\n \t<li>Debit: Account 82112 \u2013 GMT top-up tax expense (the entity's portion)<\/li>\r\n \t<li>Debit: Account 1388 \u2013 Intercompany receivables (the portion allocated to other entities)<\/li>\r\n \t<li>Credit: Account 3334 \u2013 CIT payable<\/li>\r\n<\/ul>\r\n<strong>Entry 2: Recognizing deferred tax assets (if there are temporary differences)<\/strong>\r\n<ul>\r\n \t<li>Debit: Account 243 \u2013 Deferred tax assets<\/li>\r\n \t<li>Credit: Account 8212 \u2013 Deferred tax income<\/li>\r\n<\/ul>\r\nGMT can create temporary differences when the top-up tax is estimated in the current period but will be officially determined and actually paid in the tax period according to regulations. Account 243 is recognized to reflect the corresponding deferred tax, following the Vietnamese accounting logic regarding the difference between the carrying amount and the tax base.\r\n\r\nWhen finalizing according to the official tax return, if the actual tax amount is greater or less than the recognized amount, the enterprise must adjust directly to Account 82112 and Account 1388 accordingly. This treatment ensures that the tax expense is reflected accurately according to the actual amount payable for the filing year, avoiding hanging differences into the next period. Upon payment to the state budget, the enterprise decreases Account 3334 and simultaneously reverses the previously recognized deferred tax asset (<strong>Debit 8212 \/ Credit 243<\/strong>), indicating that the temporary difference has been realized.\r\n\r\n<strong>Entries for the Non-Filing Entity<\/strong>\r\n\r\nFor a <strong>constituent entity not responsible for filing<\/strong>, upon receiving the allocation notification, the entity simultaneously records two journal entries:\r\n\r\n<strong>Entry 1: Recognizing the top-up tax expense<\/strong>\r\n<ul>\r\n \t<li>Debit: Account 82112 \u2013 GMT top-up tax expense (the allocated portion)<\/li>\r\n \t<li>Credit: Account 3388 \u2013 Intercompany payables (obligation to the filing entity)<\/li>\r\n<\/ul>\r\n<strong>Entry 2: Recognizing deferred tax assets (if there are temporary differences)<\/strong>\r\n<ul>\r\n \t<li>Debit: Account 243 \u2013 Deferred tax assets<\/li>\r\n \t<li>Credit: Account 8212 \u2013 Deferred tax income<\/li>\r\n<\/ul>\r\nUpon payment to the filing entity, the payable is settled. At the end of the period, the top-up tax expense is transferred to Account 911 to determine the business results.\r\n\r\n<strong>Managerial Implications<\/strong>\r\n\r\nFrom a managerial perspective, GMT is not merely an accounting entry. It can directly impact the profit after tax of each legal entity, internal performance evaluations, and even financial covenants with banks. At the same time, the deferred tax asset recognized under this mechanism can easily become a material point in an audit. Therefore, enterprises should not view this solely as a compliance requirement; instead, they need to prepare a calculation model and a sufficiently rigorous control mechanism from the outset to avoid the risk of major adjustments in the official filing year."}]},{"acf_fc_layout":"faq_layout","faq_id":"circular-99-6","faq_list":[{"faq_title":"6.1. Preparation and Presentation of FS on a Going Concern Basis","faq_content":"<strong>The Going Concern Assumption: The Foundation of the Entire Measurement Logic<\/strong>\r\n\r\nWhen an enterprise meets the going concern assumption, Circular 99 fully inherits the spirit of Vietnamese Accounting Standard (VAS) No. 21 \u2013 Presentation of Financial Statements. Financial statements are prepared on the assumption that the enterprise will continue to operate in the foreseeable future, with no intention or obligation to dissolve, go bankrupt, or significantly curtail the scale of its operations.\r\n\r\nImportantly, the going concern assumption is not merely a presentation condition, but the foundation governing the entire accounting measurement approach. On this basis, assets are recognized based on their ability to generate future economic benefits, rather than their recoverable amount upon liquidation; expenses are allocated over the periods benefited; and impairment losses are only recognized when there is objective evidence of impairment, rather than immediately recognizing all potential risks. In other words, accounting under the going concern status allows an enterprise to \"spread\" risks over time, rather than being forced to reflect them instantaneously.\r\n\r\n<strong>The Quality of Financial Information and the Central Role of the Notes<\/strong>\r\n\r\nCircular 99 continues to emphasize the requirement that FS must present fairly and reasonably the financial position, financial performance, and cash flows of the enterprise. However, a key difference is that Circular 99 places the Notes to the Financial Statements at the center of information transparency, rather than treating them as a supplementary technical section.\r\n\r\nIn the context of increasingly complex transactions, quantitative information in the primary statements is no longer sufficient to fully reflect risks and uncertainties. Circular 99 therefore requires enterprises to clearly disclose the nature of transactions, material assumptions, risks, and significant accounting estimates. The principle of materiality is emphasized throughout: information capable of influencing the economic decisions of users must not be obscured by aggregation or superficial presentation.\r\n\r\n<strong>Classification of Assets and Liabilities and the Approach to Liquidity Risk<\/strong>\r\n\r\nUnder going concern conditions, Circular 99 requires assets and liabilities to be classified as current and non-current based on the normal operating cycle, the 12-month timeframe, and the actual rights and obligations of the enterprise.\r\n\r\nThe progressive aspect lies in Circular 99 compelling enterprises to reclassify when the underlying substance has changed, rather than maintaining a \"formally stable\" presentation as before. This approach helps the FS more closely reflect liquidity risk and cash flow pressure, rather than merely showing the nominal asset-capital structure. In reality, many enterprises have a \"beautiful\" capital structure on their reports but harbor significant payment risks; Circular 99 creates a mechanism that forces these risks to be more clearly presented on the FS.\r\n\r\n<strong>Substance Over Form: The Overarching Principle of Circular 99<\/strong>\r\n\r\nThe principle of substance over form continues to be a pillar in Circular 99, especially as this document expands and details many complex transactions such as multi-component revenue, sale and leaseback, financial contracts, or specialized real estate. In this context, FS preparation is no longer a mechanical exercise but requires increasingly high professional judgment from the accounting department and the Board of Directors."},{"faq_title":"6.2. Preparation and Presentation When the Enterprise Does Not Meet the Going Concern Assumption","faq_content":"<strong>When is an enterprise no longer considered a going concern?<\/strong>\r\n\r\nCircular 99 introduces, for the first time, a clear framework to determine when an enterprise does not meet the going concern assumption. An enterprise is considered not a going concern when it is expected to be dissolved, go bankrupt, cease business operations, or significantly curtail the scale of its operations within 12 months from the end of the accounting period. At the same time, Circular 99 also clarifies cases that do not result in the loss of the going concern assumption, such as the transformation of enterprise type or organizational restructuring.\r\n\r\nThis clear distinction is of particular importance, because incorrectly determining the going concern assumption means the entire Financial Statements (FS) are prepared on a flawed foundation, a risk that could lead to a qualified or adverse audit opinion.\r\n\r\n<strong>An Entirely Different Financial Reporting System<\/strong>\r\n\r\nWhen an enterprise no longer meets the going concern assumption, Circular 99 requires the full preparation of FS but following a separate template and measurement logic. The focus is no longer on future operating performance, but rather on the current ability to recover assets and settle obligations.\r\n\r\nA fundamental difference is the reclassification of all assets and liabilities as current, along with the revaluation of all assets and liabilities, except where a third party inherits the rights or obligations at their book value. Here, Circular 99 has completely shifted the FS preparation logic from the \"going concern assumption\" to \"recoverability and settlement capacity in a liquidation context.\" The revaluation is not merely formal but must be recorded directly in the accounting books before preparing the Statement of Financial Position.\r\n\r\n<strong>Elimination of \"Intermediary Accounts\"<\/strong>\r\n\r\nA series of systemic changes are applied by Circular 99 when the enterprise is not a going concern. Asset impairment losses are no longer reflected through Account 229 but are directly reduced from the asset's carrying value. Depreciation or impairment of fixed assets and investment properties do not pass through Account 214 but directly reduce the historical cost. Unallocated prepaid expenses are entirely charged to expenses in the current period.\r\n\r\nGoodwill on the consolidated financial statements is no longer recognized; the unallocated portion is immediately charged to general and administrative expenses. Accumulated asset revaluation differences are transferred to other income or other expenses; accumulated exchange rate differences are entirely transferred to financial income or expenses.\r\n\r\nThe logic behind these regulations is very clear: when the enterprise has no operating future, \"gradual allocation\" or \"suspending risks\" is no longer meaningful. Circular 99 forces the FS to immediately and fully reflect economic losses, rather than spreading them over time as it would under the going concern status.\r\n\r\n<strong>The Notes \u2013 The Center of Transparency and Governance Responsibility<\/strong>\r\n\r\nIn the FS of a non-going concern enterprise, the notes are no longer a technical explanation but become a comprehensive description of the enterprise's viability. The enterprise must disclose in detail its cash-generating ability, debt settlement capacity, events and conditions leading to significant doubt about its ability to continue as a going concern, management's plans, material uncertainties, as well as the comparability of financial information.\r\n\r\nFrom the perspective of FS users, this section provides the most complete picture of the enterprise's existential risks.\r\n\r\nCircular 99 has established a dual-state framework for the preparation and presentation of Financial Statements, faithfully reflecting both when the enterprise operates normally and when it faces the risk of cessation. In particular, the regulations for enterprises not meeting the going concern assumption represent a shift from historical cost accounting thinking to accounting based on economic reality and liquidation capacity. This is not just a technical change, but a fundamental elevation of standards in financial transparency, risk management, and accountability within the Vietnamese corporate accounting system."}]},{"acf_fc_layout":"faq_layout","faq_id":"circular-99-7","faq_list":[{"faq_title":"7.1. Purpose and General Principles","faq_content":"Circular 99 fully inherits the purpose and general principles of the Notes to the Financial Statements from Circular 200. Accordingly, the Notes are an integral part of the financial statements, designed to explain and supplement information for line items presented in the Statement of Financial Position, the Statement of Comprehensive Income, and the Statement of Cash Flows.\r\n\r\nIn essence, Circular 99 does not change the role of the Notes, nor does it set a new objective. However, compared to Circular 200, Circular 99 more clearly emphasizes the requirement that the Notes must fully reflect the true economic substance of transactions, material accounting judgments, and uncertainties that significantly affect the understanding and comparability of the financial statements. This approach aims to enhance the level of transparency and the usability of information, while remaining within the current Vietnamese accounting framework."},{"faq_title":"7.2. General Information about the Enterprise","faq_content":"Regarding general information, Circular 99 inherits Circular 200's basic requirements concerning legal form, operating industry, accounting period, currency, and the basis of financial statement preparation. However, Circular 99 expands the scope of required disclosures to more fully reflect the enterprise's operational characteristics.\r\n\r\nSpecifically, the enterprise must disclose the number of employees at the end of the financial year or the average number of employees during the year, while providing comparative information against the previous period. If the number of employees at the end of the period fluctuates significantly compared to the annual average, the enterprise needs to present appropriate information so that users of the financial statements can accurately understand the scale and changes in human resources.\r\n\r\nFurthermore, Circular 99 requires enterprises to evaluate and clearly state the comparability of financial statement information between periods. When indicators are no longer comparable, the enterprise must explain the reasons for instance, due to changes in accounting policies, restructuring, changes in the operating model, or changes in the scope of consolidation. This specific requirement was not clearly stipulated in Circular 200 and clearly demonstrates a shift toward enhanced accountability and explanation."},{"faq_title":"7.3. Applied Accounting Policies and Accounting Judgments","faq_content":"Circular 200 required the disclosure of major accounting policies, but in practice, this often resulted in a mere checklist. Circular 99 does not necessarily expand the list of accounting policies to be disclosed, but it clarifies and elevates the presentation requirements for policies that have a material impact on the recognition and measurement of items in the financial statements.\r\n\r\nThe focal point of this change lies in the requirement to more clearly disclose policies involving a high degree of judgment. This includes policies related to exchange rates and monetary gold, principles for recognizing and treating exchange rate differences, provisioning policies, and policies for recognizing revenue, expenses, and corporate income tax. For transactions containing financing elements or items requiring discounted cash flows, the enterprise must clearly present the valuation principles, calculation bases, and assumptions used, helping readers understand the economic substance of these items.\r\n\r\nAdditionally, in cases where the enterprise does not meet the going concern assumption, both Circulars require the application of accounting policies suitable to the actual circumstances. Building on Circular 200, Circular 99 clarifies the scope of required disclosures, including identifying the circumstances triggering the non-going concern status, policies for reclassifying long-term assets and liabilities to short-term, and the principles for measuring and presenting items on the Statement of Financial Position in this context. While it expands the list of items to be reviewed and requires clearer presentation, Circular 99 does not invent a new set of policies; rather, it demands the consistent application of established principles under non-going concern conditions.\r\n\r\nOverall, under Circular 99, the Notes must not only state \"which standards the enterprise applies\" but must also help users understand why the numbers are recorded that way and what factors could change those numbers in the future."},{"faq_title":"7.4. Disclosures for Items on the Statement of Financial Position","faq_content":"Circular 99 inherits the item-by-item disclosure structure for assets and equity from Circular 200 but expands the requirements regarding the level of detail and explanatory nature of the information, while clarifying the scope of disclosure for certain material items. The focus of the change is not on adding many new items, but on requiring enterprises to clarify the economic substance, legal rights and obligations, as well as constraints and risks associated with each material item.\r\n<ul>\r\n \t<li><strong>Cash and Cash Equivalents<\/strong>: Beyond presenting the ending balance, Circular 99 requires enterprises to separately disclose demand or term deposits with restricted use, including the value and the reason for the restriction (e.g., legal constraints, contract conditions, or collateral obligations). Simultaneously, for deposits at individual banks that account for a material proportion (typically 10% or more), the enterprise must detail the amounts by counterparty to help users assess liquidity and concentration risk.<\/li>\r\n \t<li><strong>Materiality Thresholds<\/strong>: For other items on the Statement of Financial Position, Circular 99 establishes clear disclosure principles based on materiality. Material items often determined by a threshold of 10% or more of the total corresponding indicator must be disclosed in greater detail regarding their structure, nature, and factors affecting their carrying amount. This applies to items previously presented very briefly under Circular 200, such as biological assets, prepaid expenses, dividends and profits payable, the Global Minimum Tax, as well as current and deferred corporate income tax expenses.<\/li>\r\n \t<li><strong>Environmental Restoration Provisions<\/strong>: A significant expansion in Circular 99 is the requirement to clearly disclose legal obligations and estimates related to environmental restoration provisions. Enterprises must present the legal basis giving rise to the obligation, the method for determining the provision value, and the key assumptions used, particularly for obligations related to site clearance, restoration, or handover. Compared to Circular 200, this is more specific and highly binding regarding the level of explanation.<\/li>\r\n \t<li><strong>Off-Balance Sheet Leased Assets<\/strong>: Circular 99 requires enterprises to disclose the total future minimum lease payments by term, while providing information on the quantity, type, characteristics, nature, and lease term of each type or group of leased assets at the end of the accounting period. This helps users more fully evaluate economic obligations not directly reflected on the balance sheet.<\/li>\r\n \t<li><strong>Assets Held in Custody, Consignment, or Trust<\/strong>: Circular 99 clarifies and specifies disclosure requirements here. Enterprises must present not only the value and reasons for restricted funds or assets but also provide basic information about the assets or goods held for custody, processing, or consignment (including quantity, type, specifications, and quality). If operating in logistics or as an agent, the enterprise must disclose related rights, obligations, risks, and reasons if full detailed information cannot be provided. Pledged or mortgaged assets, as well as surplus assets discovered during inventory counts, must also be clearly presented regarding asset type, term, related parties, and legal status.<\/li>\r\n \t<li><strong>Deferred\/Installment Payment Transactions<\/strong>: Regarding the purchase or sale of assets on deferred or installment terms, Circular 99 requires detailed disclosure of the number of installment periods, total interest payable\/receivable, interest paid\/collected during the period, and outstanding interest at the end of the period. This clarifies the financing element embedded in the asset's purchase or sale price, helping users understand how payment terms impact cash flows and financial results in subsequent periods.<\/li>\r\n<\/ul>\r\nIn summary, Circular 99 strengthens the requirements to clarify the substance, constraints, and risks associated with material items on the Statement of Financial Position, thereby elevating the transparency and usability of financial information."},{"faq_title":"7.5. Disclosures for Items on the Income Statement","faq_content":"Circular 99 retains the overall structure of the Income Statement (Statement of Comprehensive Income) under Circular 200 but adjusts the classification and disclosure of certain indicators to more clearly reflect the substance of investment and non-recurring activities, particularly concerning investment properties.\r\n\r\nA significant change is the addition of the line item \"<strong>Gain\/loss from the sale and disposal of investment properties<\/strong>\" and the requirement to present it on a <strong>net basis<\/strong>. Accordingly, revenue from the sale and disposal of investment properties is not presented within the revenue from sales of goods and provision of services; simultaneously, the carrying amount and expenses related to the sale and disposal of investment properties are not reflected in the cost of goods sold, but are used to determine the net gain or loss from this activity under a separate line item. Circular 99 requires enterprises to detail this gain\/loss indicator, including: revenue from the sale\/disposal; the carrying amount of the investment property at the time of sale\/disposal; disposal expenses; and the resulting gain or loss. Separating and fully disclosing these elements helps users of financial statements clearly distinguish results from ordinary business operations from those arising from asset investment activities.\r\n\r\nCorresponding to this addition, Circular 99 removes the disclosure requirements for certain items from aggregate indicators. Specifically, for total revenue from sales and services, enterprises no longer disclose multi-period unearned revenue from asset leasing and revenue from the sale\/disposal of investment properties. These are now presented and disclosed under separate items appropriate to the nature of the transactions.\r\n\r\nFor <strong>cost of goods sold<\/strong> (COGS), Circular 99 requires the exclusion of the carrying amount and disposal costs of investment properties, while adding disclosure content related to the provision for impairment of biological assets, if any. This presentation ensures that COGS only reflects costs associated with ordinary business operations, preventing profit margins from being distorted by investment or abnormal factors.\r\n\r\nOverall, Circular 99's adjustments to the Income Statement notes do not change the profit determination principles compared to Circular 200, but they increase transparency by reclassifying and more clearly disclosing the sources of profit generation. Thereby, users of the financial statements can more accurately assess the quality of earnings and the extent to which business results depend on non-recurring transactions."},{"faq_title":"7.6. Disclosures for Items on the Statement of Cash Flows","faq_content":"Circular 99 retains the principles for preparing and presenting the Statement of Cash Flows under Circular 200 but significantly expands supplementary disclosure requirements to enhance the ability to assess the enterprise's cash flow quality and liquidity risk.\r\n\r\nFirst, Circular 99 requires enterprises to detail the value and reasons for each item of <strong>cash and cash equivalents<\/strong> held but <strong>restricted from use<\/strong> due to legal regulations or other binding constraints. The disclosure must go beyond mere balances to clarify the nature and duration of the restrictions, thereby assisting users in assessing the enterprise's liquidity and cash flow management. This was not clearly stipulated in Circular 200 and is crucial for evaluating actual liquidity.\r\n\r\nFurthermore, Circular 99 adds a separate disclosure item for transactions involving the <strong>purchase and disposal of subsidiaries<\/strong> during the reporting period. Enterprises must provide information to clarify the impact of these transactions on cash flows, helping users distinguish cash flows from ordinary operations from those related to restructuring or investments.\r\n\r\nA fundamentally expansive point is the clarification of disclosure requirements related to the <strong>going concern assumption<\/strong> when the Board of Directors identifies events or conditions that may cast significant doubt on the enterprise's ability to continue as a going concern. In such cases, the enterprise must fully present the key events or conditions causing the doubt, management's plans and measures to address those risks, and any material uncertainties management is aware of. Based on this, the enterprise must provide a clear conclusion from management on whether a material uncertainty exists related to the going concern ability, serving as a basis for users to evaluate the recoverability of assets and the settlement of liabilities in the normal course of business. Compared to Circular 200, this requirement is more specific and demands a higher level of accountability, rather than just stopping at the reporting assumption.\r\n\r\nAdditionally, Circular 99 adds separate disclosure requirements for <strong>significant accounting assumptions and estimates<\/strong>. Enterprises must present the nature of the assumptions or estimation uncertainties, the reasons and items potentially affected, an assessment of the likelihood of different scenarios, and management's planned measures or solutions to mitigate adverse impacts should the uncertainty materialize in the subsequent financial year.\r\n\r\nOverall, Circular 99's additional requirements for the Statement of Cash Flows and related notes indicate a direction toward strengthening disclosures regarding liquidity risk, cash generation capacity, and the going concern assumption, thereby significantly enhancing the informational value of the financial statements for users."},{"faq_title":"7.7. Other Disclosure Requirements","faq_content":"The \"Other Disclosures\" section in Circular 99 is clarified and expanded in scope, level of detail, and accountability compared to Circular 200. Enterprises must disclose <strong>events occurring after the reporting period<\/strong>, commitments and <strong>contingent liabilities<\/strong>, as well as significant accounting assumptions and estimates capable of leading to material adjustments in subsequent accounting periods.\r\n\r\nStrengthening disclosure requirements for these areas contributes to enhancing the enterprise's accountability, especially in a context where financial statement users are increasingly focused on risks, uncertainties, and future financial prospects, rather than solely on indicators recognized at the reporting date."}]},{"acf_fc_layout":"faq_layout","faq_id":"circular-99-10","faq_list":[{"faq_title":"10.1. Conversion of Balances on Accounting Books (Article 29)","faq_content":"<h4><span style=\"font-size: 18px;\">10.1.1. Purpose and Significance<\/span><\/h4>\r\nConverting balances on the accounting books is the first and most crucial step in the initial application of Circular 99. The purposes of this conversion are to:\r\n<ul>\r\n \t<li>Ensure the continuity of accounting information when transitioning from the old accounting regime to the new one.<\/li>\r\n \t<li>Accurately reflect the economic substance of transactions in accordance with the new regulations.<\/li>\r\n \t<li>Create a foundation for preparing the first Financial Statements under Circular 99 that are comparable with prior periods.<\/li>\r\n<\/ul>\r\n<h4><span style=\"font-size: 18px;\">10.1.2. Specific Conversion Cases<\/span><\/h4>\r\nAccording to Article 29, enterprises must convert the balances for the following accounts:\r\n\r\n<strong>a) Converting account details according to management requirements:<\/strong> Enterprises base the conversion on the balances of detailed accounts 111 (Cash on hand), 112 (Demand deposits), 113 (Cash in transit), 121 (Trading securities), 153 (Tools and supplies), 154 (Work in progress), 156 (Merchandise), 211 (Tangible fixed assets), 212 (Intangible fixed assets), and 213 (Finance lease fixed assets) to align the details with the enterprise's internal management needs. This regulation grants enterprises the autonomy to organize the detailing of accounting accounts to suit their specific industry characteristics and internal management requirements. This is a positive change, encouraging greater self-reliance in accounting practices.\r\n\r\n<strong>b) Business Cooperation Contracts (BCC) without joint control:<\/strong>\r\n\r\nFor enterprises acting as contributing parties but not the accounting party for a BCC, if the BCC has not concluded by the effective date of Circular 99, the enterprise must:\r\n<ul>\r\n \t<li>Use the detailed balance of Account 138 \u2013 Other receivables (specifically the value of capital contributed to the BCC without joint control).<\/li>\r\n \t<li>Transfer this balance to Account 2281 \u2013 Capital investments in other entities. This adjustment helps accurately reflect the enterprise's substance and status in the BCC according to the new guidance in Circular 99.<\/li>\r\n<\/ul>\r\n<strong>c) Upgrades and improvements of fixed assets:<\/strong> Enterprises use the detailed balance of Account 2413 \u2013 Major repairs of fixed assets for the uncompleted costs of upgrading and improving fixed assets and transfer it to Account 2414 \u2013 Upgrades and improvements of fixed assets. This adjustment clearly distinguishes between major repair activities and upgrade\/improvement activities, two types of activities with different natures and accounting treatments.\r\n\r\n<strong>d) Dividends and profits payable:<\/strong> Enterprises use the detailed Credit balance of Account 338 \u2013 Other payables relating to dividends and profits payable and transfer it to Account 332 \u2013 Dividends and profits payable. Separating dividends and profits payable into a distinct account facilitates better tracking and management of the enterprise's obligations to its owners.\r\n\r\n<strong>e) Capital investment funds and funds forming fixed assets:<\/strong> Enterprises use the balance of Account 441 \u2013 Capital construction investment funds and the balance of Account 466 \u2013 Funds forming fixed assets and transfer them to Account 4118 \u2013 Other capital. This is a significant change in the equity structure, simplifying the classification of capital sources and better aligning with practical corporate management.\r\n<h4><span style=\"font-size: 18px;\">10.1.3. General Principle for Other Detailed Contents<\/span><\/h4>\r\nUnder Clause 2, Article 29, if other contents currently detailed in relevant accounts differ from Circular 99, they must be adjusted to comply with the provisions of this Circular. This principle applies broadly to all accounts, ensuring the enterprise's entire accounting system fully adheres to the new regulations."},{"faq_title":"10.2. Transitional Provisions (Article 30)","faq_content":"<h4><span style=\"font-size: 18px;\">10.2.1. Framework for Changing Accounting Policies<\/span><\/h4>\r\nArticle 30 establishes the basic framework for handling changes in accounting policies when applying Circular 99. Enterprises must clearly distinguish between three adjustment methods: retrospective adjustment, modified retrospective adjustment, and prospective adjustment.\r\n\r\n<strong>a) Applying specific transitional guidance:<\/strong> If an enterprise must change an accounting policy due to the initial application of legal regulations, Vietnamese Accounting Standards (VAS), or accounting regimes that provide specific transitional guidance (requiring retrospective, modified retrospective, or prospective application), it must follow that specific guidance.\r\n<ul>\r\n \t<li><strong>Retrospective or prospective adjustment methods<\/strong> are applied according to VAS 29 \u2013 Changes in Accounting Policies, Accounting Estimates and Errors.<\/li>\r\n \t<li><strong>The modified retrospective adjustment method<\/strong> does not restate comparative figures from the earliest affected period; instead, it calculates the cumulative effect as of the first day of the accounting period in which the new policy is first applied, adjusting the corresponding asset and liability items against retained earnings (undistributed after-tax profit) or other equity items.<\/li>\r\n<\/ul>\r\n<strong>b) Applying prospective adjustment when no specific regulation exists:<\/strong> If an enterprise must change an accounting policy due to initial application but there is no requirement for retrospective or modified retrospective adjustment, the enterprise is permitted to apply the prospective adjustment method for that policy. Prospective application means applying the new accounting policy to transactions and events occurring from the date of the change, without restating prior period figures.\r\n\r\n<strong>c) Voluntary changes require retrospective application:<\/strong> If an enterprise voluntarily changes an accounting policy, it must apply the change retrospectively. This regulation ensures prudence and transparency when an enterprise proactively alters its accounting policies.\r\n<h4><span style=\"font-size: 18px;\">10.2.2. Treatment of Bond Discounts and Premiums<\/span><\/h4>\r\nFor enterprises acting as investors purchasing bonds that generate discounts or premiums, if the bonds have not reached maturity by the effective date of Circular 99, the enterprise may choose to apply the retrospective or modified retrospective adjustment method to account for the discounts and premiums arising from the bond purchase in the first Financial Statements applying Circular 99. This provision provides flexibility for enterprises to handle bond accounting using the effective interest rate method required by Circular 99.\r\n<h4><span style=\"font-size: 18px;\">10.2.3. Treatment of Exchange Rate Differences upon Changing the Accounting Currency<\/span><\/h4>\r\nIf an enterprise has foreign exchange differences arising from translating the accounting currency from VND to another currency (or vice versa) that are reflected in the Credit or Debit balance of Account 412 \u2013 Asset revaluation differences and presented on the Balance Sheet, the enterprise must:\r\n<ul>\r\n \t<li>Transfer the Credit or Debit balance of Account 412 to Account 421 \u2013 Undistributed after-tax profit (Account 4211).<\/li>\r\n \t<li>Simultaneously, clearly disclose the reasons and the impacts on the Financial Statements within the Notes. This regulation resolves the issue of recognizing exchange rate differences incorrectly under the old rules, returning them to their proper place within equity.<\/li>\r\n<\/ul>\r\n<h4><span style=\"font-size: 18px;\">10.2.4. Treatment of Accrued Major Repair Expenses for Fixed Assets<\/span><\/h4>\r\nIf an enterprise is currently accruing major repair expenses for fixed assets but the major repair activities have not been performed by the time Circular 99 takes effect:\r\n<ul>\r\n \t<li>The enterprise stops accruing major repair expenses.<\/li>\r\n \t<li>When the major repair activities are actually performed, the enterprise offsets the actual incurred costs against the previously accrued amount.<\/li>\r\n \t<li>The difference between the previously accrued amount and the actual incurred costs is gradually amortized into production and business expenses of each subsequent period. This is a crucial change, aligning with international trends that prohibit provisioning for future expected operational costs.<\/li>\r\n<\/ul>"},{"faq_title":"10.3. Comparison of Adjustment Methods under VAS 29","faq_content":"To better understand the adjustment methods stipulated in Article 30, it is necessary to refer to Vietnamese Accounting Standard (VAS) No. 29 on Changes in Accounting Policies, Accounting Estimates and Errors:\r\n<h4><span style=\"font-size: 18px;\">10.3.1. Retrospective Application Method<\/span><\/h4>\r\nRetrospective application is applying a new accounting policy to transactions, other events, and conditions as if that policy had always been applied. Specifically:\r\n<ul>\r\n \t<li>Adjusting the opening balance of each affected component of equity for the earliest prior period presented.<\/li>\r\n \t<li>Restating the comparative amounts for each prior period presented.<\/li>\r\n \t<li>Presenting the adjusted comparative figures in the Financial Statements.<\/li>\r\n<\/ul>\r\nThis method ensures the highest degree of comparability between periods, providing users of financial statements with a consistent view of the enterprise's financial position and business performance.\r\n<h4><span style=\"font-size: 18px;\">10.3.2. Modified Retrospective Approach (Simplified Retrospective)<\/span><\/h4>\r\nThis is a simplified version of retrospective application that does not require restating comparative figures from the earliest affected period, but only requires:\r\n<ul>\r\n \t<li>Calculating the cumulative effect as of the first day of the accounting period in which the new accounting policy is initially applied.<\/li>\r\n \t<li>Adjusting the corresponding asset and liability items against retained earnings (undistributed after-tax profit) or other equity items on the first day of the accounting period applying the new accounting policy.<\/li>\r\n<\/ul>\r\nThis method is suitable in cases where restating all comparative figures is impracticable or prohibitively expensive.\r\n<h4><span style=\"font-size: 18px;\">10.3.3. Prospective Application Method<\/span><\/h4>\r\nProspective application of a change in accounting policy means:\r\n<ul>\r\n \t<li>Applying the new accounting policy to transactions, other events, and conditions occurring after the date as at which the policy is changed.<\/li>\r\n \t<li>Recognizing the effect of the change in the current and future periods affected by the change.<\/li>\r\n \t<li>Not restating the figures of prior periods.<\/li>\r\n<\/ul>\r\nThis method is the simplest and most cost-effective, but it inevitably reduces comparability between reporting periods."}]},{"acf_fc_layout":"faq_layout","faq_id":"circular-99-11","faq_list":[{"faq_title":"11.1. Overview of Governance and Internal Control Requirements ","faq_content":"Circular 99 marks an important shift from \"compliance accounting\" to \"controlled autonomous accounting\" through Article 3 on Internal Governance and Control Work. This is not merely a technical accounting regulation, but a modern governance philosophy: enterprises are granted higher autonomy in organizing their accounting work, but concurrently must bear the responsibility of building a robust internal control system.\r\n\r\nAccording to Clause 2, Article 3, enterprises are responsible for establishing their own internal governance regulations (or equivalent documents) and organizing internal controls to clearly delineate the rights, obligations, and responsibilities of departments and individuals involved in the creation, execution, management, and control of incurred economic transactions. This is now a mandatory requirement, no longer just a recommendation as in the past."},{"faq_title":"11.2. Areas of Granted Autonomy","faq_content":"<h4><span style=\"font-size: 18px;\">11.2.1. Modifying the Chart of Accounts<\/span><\/h4>\r\nUnder Article 11 of Circular 99, enterprises have the right to modify and supplement the names, account numbers, structure, and reflective content of accounting accounts to suit their operational characteristics. This is a major step forward compared to Circular 200, as enterprises are no longer restricted by a rigid chart of accounts framework.\r\n\r\nFor example, a technology company can create separate detailed accounts to track R&amp;D expenses by individual projects, or a real estate company can design detailed accounts for each urban area or building. However, this autonomy comes with responsibility: the enterprise must issue an Internal Accounting Regulation (or equivalent document) covering these modifications and additions. The regulation must clearly explain the reasons for the modifications, recognition principles, and new accounting methods, ensuring that the economic substance of the accounting information is not altered. This creates transparency and consistency in accounting records, serving as a basis for auditors, tax authorities, and relevant stakeholders to understand and evaluate the enterprise's accounting system.\r\n<h4><span style=\"font-size: 18px;\">11.2.2. Adding Financial Statement Indicators<\/span><\/h4>\r\nClause 2, Article 19 of Circular 99 allows enterprises to add indicators to the Financial Statements to meet internal management requirements or the needs of stakeholders such as banks and investors. The condition is that this must ensure compliance with the principles of preparing and presenting Financial Statements, without causing misunderstanding or distorting information.\r\n\r\nIn practice, an enterprise might add an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) indicator to reflect the profitability of core operations, or a Net Debt indicator to show actual solvency after deducting cash. The enterprise must also issue an Internal Accounting Regulation specifying the necessity of the addition, the calculation formula, and taking legal responsibility for the added contents. This ensures that supplementary indicators are not arbitrary but have a clear legal and operational logic.\r\n<h4><span style=\"font-size: 18px;\">11.2.3. Designing Accounting Processes on Software<\/span><\/h4>\r\nArticle 28 of Circular 99 regarding the use of accounting software reflects the practical reality that most enterprises today use software for accounting. Enterprises have the right to design accounting processes and operations within the software to suit their specific characteristics, provided they ensure compliance with accounting and tax laws and do not alter the fundamental substance, principles, and methods of accounting.\r\n\r\nA critical requirement is that the system must ensure security, safety, and the ability to warn against or prevent intentional interventions that alter recorded accounting information and data. This means the software needs features such as clear user authorization, comprehensive audit trails (action logs), period-end closing locks, and a periodic data backup mechanism. Enterprises should note that utilizing accounting software does not exempt them from the responsibility of complying with legal regulations regarding vouchers, books, and financial statements.\r\n<h4><span style=\"font-size: 18px;\">11.2.4. Self-Designing and Modifying Templates and Forms<\/span><\/h4>\r\nArticle 9 allows enterprises to modify and supplement accounting voucher templates, and Article 12 permits the modification of accounting book templates, as long as mandatory regulatory contents are met. This autonomy is particularly useful for enterprises with specialized operations or those in emerging sectors like e-commerce, fintech, and digital technology.\r\n\r\nHowever, all modifications must be documented in the Internal Accounting Regulation with clear explanations of the rationale and implementation methods. Enterprises must ensure that the modified templates still meet all mandatory elements of an accounting voucher under Article 8, and the mandatory indicators of accounting books to serve inspection, supervision, and auditing purposes."},{"faq_title":"11.3. Core Contents of Internal Governance Regulations","faq_content":"<h4><span style=\"font-size: 18px;\">11.3.1. Delineating Authority and Responsibility<\/span><\/h4>\r\nInternal governance regulations must clearly define the roles, authority, and responsibilities of each management level and position within the economic transaction processing workflow. The fundamental principle is the segregation of duties (SoD) to avoid conflicts of interest and prevent fraud. Specifically, a single individual should not simultaneously hold the functions of: approving transactions, executing transactions, recording accounting entries, and performing reconciliations\/checks.\r\n\r\nFor example, in the procurement and payment process: the purchasing department has the right to select suppliers and negotiate prices but must obtain approval from competent management; the warehouse department receives goods and conducts independent quality checks; the accounting department recognizes the payment obligation based on valid vouchers; and the finance department executes the payment only after full reconciliation. This mechanism creates cross-checking control points, helping to detect errors or fraud early.\r\n<h4><span style=\"font-size: 18px;\">11.3.2. Process for Controlling Economic Transactions<\/span><\/h4>\r\nAccording to Clause 1, Article 3, the creation, execution, management, and control of incurred economic transactions must comply with the law and relevant policy mechanisms. The regulations need to establish standard operating procedures (SOPs) for each critical transaction type, such as cash receipts and disbursements, bank payments, purchasing, sales, inventory management, fixed assets, and receivables\/payables management.\r\n\r\nEach process must clearly specify: conditions for initiating the transaction, the initiator, the approver based on value thresholds, required documentation, processing timelines, accounting recognition methods, and reconciliation\/checking mechanisms. For instance, the cash payment process should dictate: maximum cash-on-hand limits, cash count timing, cash safeguarding methods, payment authority by threshold, attached vouchers, and daily reconciliation between the cashbook and actual physical cash. These detailed rules help prevent risks of loss, misappropriation, and misuse of funds.\r\n<h4><span style=\"font-size: 18px;\">11.3.3. Monitoring and Reporting Mechanisms<\/span><\/h4>\r\nAn internal control system cannot be effective without timely monitoring and reporting mechanisms. The regulations should establish periodic checkpoints, such as daily cash reconciliations, weekly bank statement reconciliations, monthly or quarterly physical inventory counts, annual fixed asset physical counts, and periodic debt confirmations with customers and suppliers.\r\n\r\nAdditionally, there must be an exception reporting mechanism when abnormal transactions or data are detected, such as spending exceeding budgets, overdue debts, negative inventory balances, or transactions lacking documentation. The reporting system must ensure that information is conveyed promptly to the right person with the authority to act, while also including a whistleblower protection mechanism to encourage employees to report misconduct without fear of retaliation.\r\n<h4><span style=\"font-size: 18px;\">11.3.4. Risk Management and Response<\/span><\/h4>\r\nInternal governance regulations must include a periodic risk assessment process to identify risks that could affect the enterprise's assets, financial information, and operations. Common risks include: internal fraud risk, accounting misstatement risk, asset loss risk, data security risk, non-compliance risk, and liquidity risk.\r\n\r\nFor each identified risk, the enterprise must assess its severity and likelihood of occurrence, and then establish appropriate control measures. For example, to mitigate payment fraud risk, the enterprise could apply a two-signature rule for large payments, use bank tokens instead of physical stamps and paper signatures, and separate the payment initiation function from the approval function. The regulations must also stipulate the responsibility for monitoring and reviewing the effectiveness of these risk control measures."},{"faq_title":"11.4. Roadmap for Development and Implementation","faq_content":"<h4><span style=\"font-size: 18px;\">11.4.1. Preparation Phase<\/span><\/h4>\r\nThe enterprise should establish a Steering Committee for drafting the Regulations, including representatives from key departments: accounting, finance, internal control, legal, and operational units. The first step is a comprehensive review of the current system to identify strengths to leverage and weaknesses to address. This review can be based on the COSO (Committee of Sponsoring Organizations of the Treadway Commission) framework\u2014a globally recognized internal control model comprising five components: control environment, risk assessment, control activities, information and communication, and monitoring activities.\r\n\r\nOnce a comprehensive overview is established, the Steering Committee must define the scope and objectives of the Regulations: whether they apply company-wide or to specific departments, which areas to focus on, and prioritizing the most critical risks. Simultaneously, it is necessary to research industry best practices and reference the regulations of similar enterprises to learn from their experiences. However, the committee must avoid blindly copying without tailoring the rules to the enterprise's specific characteristics.\r\n<h4><span style=\"font-size: 18px;\">11.4.2. Drafting and Finalization Phase<\/span><\/h4>\r\nThe drafting of the Regulations must adhere to the principles of being clear, specific, easy to understand, and feasible. Avoid using vague or overly technical language that makes it difficult for readers to comprehend. The structure of the Regulations typically includes: an introduction (purpose and scope of application), general provisions (principles and definitions), specialized sections (for each control area), and appendices (attached forms and detailed guidelines).\r\n\r\nOnce a draft is available, broad feedback should be solicited from relevant departments, especially from those who will directly implement the rules. Constructive feedback helps identify illogical points, impractical rules, or loopholes that could be exploited. This process also builds consensus and commitment from various departments, facilitating a smoother implementation later. The finalized Regulations must be submitted to the Board of Directors (BOD) or the Board of Management for official approval and promulgation via a formal Decision.\r\n<h4><span style=\"font-size: 18px;\">11.4.3. Implementation and Maintenance Phase<\/span><\/h4>\r\nFollowing promulgation, the most crucial task is training and communication to ensure everyone thoroughly understands and complies with the Regulations. The training program should be tailored to the audience: a general overview for all employees regarding the spirit and broad principles, and in-depth training for heavily impacted departments concerning the specific procedures related to their daily work. It is advisable to compile a concise, easily searchable manual providing practical examples so employees can easily understand and apply the rules.\r\n\r\nMaintaining the effectiveness of the Regulations requires continuous oversight through internal audits, compliance assessments, and gathering feedback from implementers. The enterprise needs to establish a periodic review mechanism (at least annually) to update the Regulations in response to changes in legislation, operational scale, or the business environment. Any amendments to the Regulations must follow the proper procedures and be promptly communicated to all relevant parties."},{"faq_title":"11.5. Relationship with Internal Accounting Regulations","faq_content":"It is necessary to clearly distinguish between the <strong>Internal Governance Regulations<\/strong> and the <strong>Internal Accounting Regulations<\/strong> (Accounting Policies Manual).\r\n\r\nThe Internal Governance Regulations have a broader scope, encompassing the enterprise's entire control system over economic transactions, including non-accounting aspects. Meanwhile, the Internal Accounting Regulations focus strictly on the technical issues of recognizing, measuring, and presenting accounting information.\r\n\r\nHowever, these two sets of regulations are closely linked and mutually reinforcing. The Internal Governance Regulations establish the overarching framework for decentralization, authorization, and control, while the Internal Accounting Regulations specify the accounting principles and methods to be applied. Some content may overlap between the two, such as the voucher approval process or the authority to adjust accounting books. In such cases, the enterprise can choose to: state the general rule in the Governance Regulations and detail it in the Accounting Regulations; or define it fully in one document and cross-reference it in the other.\r\n\r\nFor small enterprises with limited resources, it may be viable to develop a single, consolidated regulation combining both components, provided it meets all the requirements stipulated in Circular 99. However, for large enterprises, particularly listed companies or those with complex structures, it is highly recommended to separate the two regulations for easier management and targeted updates."},{"faq_title":"11.6. Mistakes to Avoid","faq_content":"Many enterprises fall into typical traps when drafting these Regulations for the first time.\r\n<ol>\r\n \t<li><strong>Being Overly Vague<\/strong>: The most common mistake is creating regulations that are too generic, using ambiguous phrases like \"must ensure\" or \"must comply\" without specifying what to ensure or how to comply. Such regulations may look comprehensive on paper but are unimplementable in practice because employees do not know exactly what actions to take.<\/li>\r\n \t<li><strong>Lack of \"Tone at the Top\"<\/strong>: The second mistake is a lack of commitment and role-modeling from Top Management. If the Board of Directors themselves do not adhere to the Regulations, for example, frequently requesting irregular cash disbursements or bypassing control steps due to \"urgent\" or \"special\" reasons, employees will similarly disregard the rules.<\/li>\r\n \t<li><strong>Inadequate Training<\/strong>: Failing to train employees properly results in them being unaware of or misunderstanding the rules, leading to incorrect compliance or outright non-compliance.<\/li>\r\n \t<li><strong>The \"Drawer Syndrome\":<\/strong> The final mistake is finalizing the Regulations and simply locking them in a drawer. Without monitoring implementation and failing to update the rules when changes occur, the Regulations quickly become obsolete and lose all practical value.<\/li>\r\n<\/ol>"}]},{"acf_fc_layout":"faq_layout","faq_id":"circular-99-12","faq_list":[{"faq_title":"12.1. Overview of Accounting and Tax Differences","faq_content":"One of the core principles of the modern financial system is the clear separation between accounting purposes (fairly presenting the financial position) and tax purposes (serving state budget collection management).\r\n\r\nCircular 99 (effective from the 2026 financial year) continues to push for integration with International Financial Reporting Standards (IFRS), for example, applying revenue recognition principles closer to IFRS 15 (introducing the concept of transfer of control), while the Corporate Income Tax Law No. 67\/2025\/QH15 (effective from October 1, 2025, applicable for the 2025 tax period) retains many distinct regulations.\r\n\r\nThis divergence leads to temporary differences (which can reverse in the future) and permanent differences (which do not reverse) between accounting profit before tax and taxable income. Consequently, enterprises must make appropriate adjustments on their CIT finalization returns while simultaneously recognizing deferred income tax in accordance with Vietnamese Accounting Standard No. 17 (VAS 17)."},{"faq_title":"12.2. General Principles for Handling Differences","faq_content":"When discrepancies arise between accounting under Circular 99 and CIT regulations, enterprises should handle them following these three basic steps:\r\n<ul>\r\n \t<li>Step 1: Accounting Compliance Prepare the financial statements entirely in accordance with Circular 99 and relevant Vietnamese Accounting Standards to ensure a true and fair view of the financial position and business performance.<\/li>\r\n \t<li>Step 2: Tax Compliance<\/li>\r\n<\/ul>\r\nPerform upward or downward adjustments to the accounting profit before tax on the CIT finalization return (typically via Appendix 03-1A\/TNDN or related appendices) to accurately determine taxable income under the CIT Law.\r\n<ul>\r\n \t<li>Step 3: Deferred Tax Recognition For temporary differences, the enterprise must recognize deferred tax assets (Account 243) or deferred tax liabilities (Account 347) per VAS 17, to accurately reflect the long-term impact on future tax obligations.<\/li>\r\n<\/ul>\r\nProperly handling these differences not only helps avoid the risk of tax arrears and late payment penalties but also ensures transparent financial statements that better support management decisions. In practice, items such as provisions, depreciation, or revenue recognition are typically the largest sources of differences that accountants must pay special attention to."},{"faq_title":"12.3. Detailed Analysis by Area","faq_content":"<h4><span style=\"font-size: 18px;\">12.3.1. Revenue Recognition<\/span><\/h4>\r\n<strong>Under Circular 99:<\/strong> Revenue recognized only includes revenue incurred during the reporting period and must be transferred to determine business results at the end of the accounting period; revenue accounts do not have an ending balance. Account 511 \u2013 Revenue from sales and provision of services is used to reflect revenue incurred during the period, including sales of goods, provision of services, state subsidies\/price supports, and other revenue.\r\n<ul>\r\n \t<li><strong>Sales of goods:<\/strong> Revenue is recognized only when the enterprise has transferred the significant risks and rewards of ownership to the buyer, retains neither continuing managerial involvement nor effective control over the goods, the revenue can be measured reliably, it is probable that the economic benefits will flow to the enterprise, and related costs can be measured reliably.<\/li>\r\n \t<li><strong>Provision of services:<\/strong> The enterprise only recognizes revenue when the outcome of the transaction can be estimated reliably based on the stage of completion at the reporting date and incurred costs, provided the customer no longer has the right to return the service.<\/li>\r\n \t<li><strong>Construction contracts:<\/strong> If the outcome can be estimated reliably, revenue is recognized based on the stage of completion, regardless of the timing of invoicing or cash collection. Customer advances are not recognized as revenue until all recognition criteria are fully met.<\/li>\r\n<\/ul>\r\n<strong>Under current CIT regulations:<\/strong> Taxable revenue is determined based on the time the tax obligation arises, which is tied to the transfer of ownership or right to use goods, the completion of service provision, and the statutory time of invoicing.\r\n<ul>\r\n \t<li>Specifically, for the sale of goods, revenue is determined at the time ownership or the right to use is transferred to the buyer, regardless of whether payment has been collected.<\/li>\r\n \t<li>For service provision, revenue is determined when the service is completed or at the time the service invoice is issued.<\/li>\r\n \t<li>For services or construction and installation contracts executed over multiple periods, taxable revenue is based on the volume of work completed and accepted, and the invoice issued according to the contract.<\/li>\r\n<\/ul>\r\nTherefore, taxable revenue is tightly coupled with invoicing, acceptance, and the completion of supply obligations, leading to the potential for temporary differences compared to accounting revenue.\r\n<h4><span style=\"font-size: 18px;\">12.3.2. Provision for Asset Impairment and Losses<\/span><\/h4>\r\n<strong>Under Circular 99 (Accounting Regulations):<\/strong> Enterprises are required to make provisions for asset losses to prudently reflect the potential impairment value of assets and payable obligations at the reporting date. These provisions include:\r\n<ul>\r\n \t<li><strong>Provision for decline in value of inventory:<\/strong> Made when the net realizable value (NRV) is lower than the historical cost.<\/li>\r\n \t<li><strong>Provision for impairment of financial investments:<\/strong> Applies to trading securities and long-term financial investments (including investments in other entities and held-to-maturity investments when there is evidence of impairment or uncollectibility).<\/li>\r\n \t<li><strong>Provision for doubtful debts:<\/strong> Determined based on recoverability, considering the overdue payment period and related evidence.<\/li>\r\n \t<li><strong>Provision for impairment of biological assets:<\/strong> Made similarly to inventory when the NRV is lower than the historical cost.<\/li>\r\n<\/ul>\r\nThe making or reversal of provisions is performed at the reporting date based on reliable evidence, recognizing only the difference compared to the existing balance.\r\n\r\n<strong>Under CIT Law No. 67\/2025\/QH15 (effective Oct 1, 2025) and guiding Decree 320\/2025\/ND-CP:<\/strong> Expenses for making provisions are only treated as deductible expenses when determining taxable income if they strictly comply with tax regulations on provisions. <em>(Note: Although CIT Law 67\/2025\/QH15 is in effect, detailed guiding documents replacing Circular 48\/2019\/TT-BTC have not yet been issued; thus, enterprises temporarily refer to Circular 48\/2019 until new documents are available)<\/em>. Specifically, acceptable provisions include:\r\n<ul>\r\n \t<li><strong>Inventory provision:<\/strong> When the historical cost is higher than the net realizable value, supported by documents proving ownership.<\/li>\r\n \t<li><strong>Investment provision:<\/strong> When there is evidence of impairment at the annual reporting date (primarily applicable to trading securities and certain domestic investments).<\/li>\r\n \t<li><strong>Doubtful debt provision:<\/strong> For overdue debts or debts with evidence of uncollectibility, accompanied by a complete legal dossier.<\/li>\r\n \t<li><strong>Warranty provision for products, goods, services, and construction works:<\/strong> Based on commitments or contracts.<\/li>\r\n<\/ul>\r\nThe making and reversal must be performed at the time of preparing the annual financial statements, supported by complete and legal dossiers\/vouchers. Provisions that do not comply with regulations or lack proper documentation will be treated as non-deductible expenses.\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Type of Provision<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Regulations under Circular 99 (Accounting)<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>CIT Regulations (Law 67\/2025\/QH15 &amp; Decree 320\/2025\/ND-CP)<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Provision for devaluation of trading securities<\/strong><\/td>\r\n<td style=\"width: 39%;\">Provided when the market price is lower than the book value (based on the market price if listed; or the issuer's actual losses if unlisted). The reversal or additional provision of the difference at the end of the period is recorded as financial expenses.<\/td>\r\n<td style=\"width: 39%;\">Deductible if provided in accordance with the Ministry of Finance's guidelines (under Circular 48\/2019: based on listed market prices, calculated separately for each security). Incorrect provisions or excess amounts are non-deductible (Clause 5, Article 10, Decree 320).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Provision for impairment of investments in other entities <\/strong><em>(including long-term investments, subsidiaries\/associates, and held-to-maturity investments)<\/em><\/td>\r\n<td style=\"width: 39%;\">Provided based on the investee's financial statements, market price (if available), actual losses, or evidence of uncollectibility. The reversal or additional provision of the difference at the end of the period is recorded as financial expenses. For held-to-maturity investments: provided only when there is evidence of uncollectibility.<\/td>\r\n<td style=\"width: 39%;\">Deductible if compliant with regulations (Circular 48\/2019 covers trading securities and general financial investment losses; it does not explicitly mention held-to-maturity investments\u2014these may be non-deductible without specific guidance). Incorrect provisions are non-deductible (Clause 5, Article 10, Decree 320).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Provision for doubtful debts<\/strong><\/td>\r\n<td style=\"width: 39%;\">Provided for overdue debts or debts not yet due but unlikely to be recovered (e.g., bankruptcy, absconding). Rates: 30% (overdue from 6 months to under 1 year), 50% (1 to under 2 years), 70% (2 to under 3 years), 100% (\u2265 3 years); specifically for telecom\/retail: starting from 3 months. The reversal or additional provision of the difference at the end of the period is recorded as general and administrative expenses. Alternative methods may be used if supported by reliable evidence.<\/td>\r\n<td style=\"width: 39%;\">Deductible if compliant with regulations (Circular 48\/2019: applies similar ratios, requires a dossier proving the debt is doubtful, and legal vouchers). Non-deductible if unproven (no contract, no documented recovery efforts) or if it violates regulations (Clause 5, Article 10, Decree 320).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Provision for decline in value of inventory<\/strong><\/td>\r\n<td style=\"width: 39%;\">Provided when the net realizable value (NRV) is lower than the historical cost, calculated for each type of inventory. The reversal or additional provision of the difference at the end of the period is recorded as the cost of goods sold. (In accordance with VAS 02).<\/td>\r\n<td style=\"width: 39%;\">Deductible if compliant with regulations (Circular 48\/2019: similarly requires NRV &lt; historical cost, legal vouchers, and proof of ownership). Incorrect provisions are non-deductible (Clause 5, Article 10, Decree 320).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Provision for impairment of biological assets<\/strong><\/td>\r\n<td style=\"width: 39%;\">Similar to inventory: provided when the net realizable value is lower than the historical cost. The reversal or additional provision of the difference at the end of the period is recorded as the cost of goods sold.<\/td>\r\n<td style=\"width: 39%;\">Not explicitly mentioned as a separate category; it may be treated similarly to inventory (deductible if it meets Circular 48\/2019 requirements for inventory provisions). Incorrect provisions are non-deductible (Clause 5, Article 10, Decree 320).<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h4><span style=\"font-size: 18px;\">12.3.3. Foreign Exchange Differences<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Comparison Criteria<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Regulations under Circular 99 (Corporate Accounting Regime)<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>CIT Regulations (Law No. 67\/2025\/QH15 &amp; Decree 320\/2025\/ND-CP)<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Definition of Foreign Exchange Differences<\/strong><\/td>\r\n<td style=\"width: 39%;\">Foreign exchange differences arise from translating the same quantity of foreign currency into the accounting currency (VND) at different times. This includes differences from actual foreign currency transactions, the period-end revaluation of monetary items denominated in foreign currencies, and the translation of financial statements from a foreign currency to VND. Monetary items denominated in foreign currencies include cash, bank deposits, cash in transit, receivables\/payables, loans\/borrowings, and foreign currency deposits\/margins\/escrows (excluding advances\/prepaid expenses and unearned revenue unless there is uncertainty regarding their recovery\/refund in foreign currency).<\/td>\r\n<td style=\"width: 39%;\">Foreign exchange differences arise from translating monetary items denominated in foreign currencies (cash, deposits, cash in transit, receivables\/payables) using exchange rates at different times. The Law focuses on differences arising during the period from actual transactions and differences from revaluation at the end of the tax period to determine taxable income or deductible expenses. It does not address differences from translating financial statements, as the tax objective is to determine taxable income based on actual transactions and revaluations.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Treatment of Exchange Differences from Actual Transactions (Incurred during the period)<\/strong><\/td>\r\n<td style=\"width: 39%;\">Exchange differences arising from actual foreign currency transactions (buying, selling, exchanging, settling) are immediately recognized as financial income (Account 515 - exchange gain) or financial expenses (Account 635 - exchange loss). The applicable rate is the actual transaction exchange rate (average transfer buying\/selling rate or an approximate rate at the frequently transacted commercial bank, with a variance not exceeding +\/-1% to avoid material impact) or the book exchange rate (specific identification or moving weighted average, depending on management characteristics). Exchange differences cannot be capitalized into the value of work-in-progress assets.<\/td>\r\n<td style=\"width: 39%;\">Exchange differences arising during the period from actual transactions (e.g., collecting receivables or settling foreign currency payables) are included in taxable income (if a gain) or deductible expenses (if a loss), depending on the substance of the transaction. For foreign currency receivables\/loans arising during the period, the difference is determined between the exchange rate at the time of debt recovery and the initial recognition rate, and is included in taxable income or deductible expenses. Differences not directly related to core business operations will be included in financial income or expenses when determining taxable income.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Treatment of Exchange Differences from Period-End Revaluation<\/strong><\/td>\r\n<td style=\"width: 39%;\">At the end of the accounting period, monetary items denominated in foreign currencies are revalued using the exchange rate at the end of the period (average transfer buying and selling exchange rate of the frequently transacted commercial bank). The resulting differences are recognized on a net basis in the income statement (gains to Account 515, losses to Account 635), and can be offset without necessarily using Account 413 for temporary recording. This recognition aims to prudently and fairly reflect the financial position and is not capitalized into assets. Enterprises must disclose the applied exchange rate accounting policy in the financial statements.<\/td>\r\n<td style=\"width: 39%;\">At the end of the tax period, differences from revaluation are excluded from taxable income or deductible expenses if they relate to cash, bank deposits, cash in transit, or foreign currency receivables, to avoid taxing unrealized exchange rate fluctuations. However, for foreign currency payables, revaluation exchange gains are included in taxable income, and exchange losses are deducted when calculating taxable income (treated as deductible expenses).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Treatment of Exchange Differences from FS Translation<\/strong><\/td>\r\n<td style=\"width: 39%;\">Exchange differences arising from translating financial statements prepared in a foreign currency into VND are recognized in the owner's equity section of the statement of financial position (via Account 413 - Foreign exchange differences). Assets\/liabilities are translated at the average transfer buying\/selling rate at the end of the period; owner's equity at the actual transaction rate on the contribution date; revaluation differences at the revaluation date rate; retained earnings and income statement\/cash flow items at the actual rate or average rate for the period (if approximate). Enterprises must disclose the impact of this translation.<\/td>\r\n<td style=\"width: 39%;\">The CIT Law does not specifically regulate differences from financial statement translation, as the tax purpose focuses on taxable income from actual business operations in Vietnam. Taxable income is calculated in VND based on the prescribed exchange rate at the time the transaction occurs or at the end of the tax period. There is no mechanism to recognize these differences in owner's equity for tax purposes; adjustments are only made to correctly determine taxable income under Vietnamese principles.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Impact on Profit Before Tax \/ Taxable Income and Deferred Tax Recognition<\/strong><\/td>\r\n<td style=\"width: 39%;\">Exchange differences from transactions and revaluations (excluding FS translation) directly affect profit before tax on the income statement, potentially creating temporary differences between accounting profit and taxable income. Enterprises must recognize deferred tax assets (Account 243) or deferred tax liabilities (Account 347) in accordance with VAS 17 if the temporary differences are deductible or taxable in the future, using the current tax rate and assessing the probability of having future taxable income.<\/td>\r\n<td style=\"width: 39%;\">Actual exchange differences and those from the revaluation of payables affect taxable income, but differences from the revaluation of cash, deposits, and receivables are excluded, creating temporary differences compared to accounting. Enterprises must adjust taxable income up\/down on the CIT finalization return (e.g., excluding gains\/losses from revaluing receivables). Deferred tax is not recognized for tax purposes, but the enterprise must still comply with VAS 17 for financial reporting, leading to dual adjustments between accounting and tax.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Other Considerations and Main Differences<\/strong><\/td>\r\n<td style=\"width: 39%;\">Circular 99 emphasizes consistency and transparency, allowing enterprises to choose the appropriate exchange rate (actual or book rate) provided it has no material impact, and requires clear disclosure. Exchange differences are not capitalized, aligning with the prudence principle and IFRS integration. Compared to Circular 200, Circular 99 clarifies the exclusion of overdrafts from deposits, the management of margin deposits, and does not mandate the use of Account 413 for temporary difference recording.<\/td>\r\n<td style=\"width: 39%;\">Law 67\/2025 focuses on preventing abuse and securing state revenue, excluding unrealized differences from cash\/receivables to avoid \"phantom\" taxes, while allowing the deduction of losses from payables. Enterprises need complete documentary evidence to substantiate actual differences during tax finalization.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>"}]},{"acf_fc_layout":"faq_layout","faq_id":"circular-99-13","faq_list":[{"faq_title":"13.1. Revenue Recognition \u2013 Circular 99 and IFRS 15","faq_content":"<h4><span style=\"font-size: 18px;\">13.1.1. Revenue Recognition Principles<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 15<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Core Principle<\/strong><\/td>\r\n<td style=\"width: 39%;\">Revenue is the economic benefit gained that increases the enterprise's owner's equity, excluding additional contributions from shareholders. Revenue is recognized at the time the transaction occurs, when it is certain\/probable that economic benefits will be received, and is measured at the fair value of the consideration received or receivable, regardless of whether the cash has been collected or will be collected.<\/td>\r\n<td style=\"width: 39%;\">Core principle: An entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Recognition Model<\/strong><\/td>\r\n<td style=\"width: 39%;\">Does not explicitly outline a specific step-by-step model, but rather establishes specific conditions for recognition.<\/td>\r\n<td style=\"width: 39%;\">To recognize revenue under IFRS 15, an entity applies the following five steps:\r\n<ol>\r\n \t<li>Identify the contract(s) with a customer.<\/li>\r\n \t<li>Identify the performance obligations in the contract.<\/li>\r\n \t<li>Determine the transaction price.<\/li>\r\n \t<li>Allocate the transaction price to the performance obligations in the contract.<\/li>\r\n \t<li>Recognize revenue when (or as) the entity satisfies a performance obligation.<\/li>\r\n<\/ol>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h4><span style=\"font-size: 18px;\">13.1.2. Conditions for Recognizing Revenue from Sales of Goods<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 15<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Sales Conditions<\/strong><\/td>\r\n<td style=\"width: 39%;\">The enterprise only recognizes revenue from the sale of goods when all the following conditions are simultaneously satisfied:\r\n<ul>\r\n \t<li>The enterprise has transferred the significant risks and rewards of ownership of the products or goods to the buyer;<\/li>\r\n \t<li>The enterprise retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;<\/li>\r\n \t<li>The amount of revenue can be measured reliably;<\/li>\r\n \t<li>It is probable that the economic benefits associated with the transaction will flow to the enterprise;<\/li>\r\n \t<li>The costs incurred or to be incurred in respect of the transaction can be measured reliably.<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td style=\"width: 39%;\">An entity recognizes revenue when (or as) it satisfies a performance obligation by transferring a promised good or service to a customer (i.e., when the customer obtains control of that good or service).\r\n\r\nControl of an asset refers to the ability to direct the use of, and obtain substantially all of the remaining benefits from, the asset. Control includes the ability to prevent other entities from directing the use of, and obtaining the benefits from, an asset (Paragraph 33).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Primary Focus<\/strong><\/td>\r\n<td style=\"width: 39%;\">Transfer of risks and rewards + No longer retaining control.<\/td>\r\n<td style=\"width: 39%;\">The customer obtains control.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<blockquote><strong>Commentary:<\/strong> Circular 99 incorporates the concept of \"control\" in revenue recognition (demonstrating convergence with IFRS 15); however, it still retains the traditional \"transfer of risks and rewards\" language from previous Vietnamese accounting regulations (VAS 14).<\/blockquote>\r\n<h4><span style=\"font-size: 18px;\">13.1.3. Revenue Recognition Over Time<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 15<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Revenue from Provision of Services<\/strong><\/td>\r\n<td style=\"width: 39%;\">The enterprise only recognizes revenue from the provision of services when all the following conditions are simultaneously satisfied:\r\n<ul>\r\n \t<li>The amount of revenue can be measured reliably;<\/li>\r\n \t<li>It is probable that the economic benefits associated with the transaction will flow to the enterprise;<\/li>\r\n \t<li>The stage of completion of the transaction at the reporting date can be measured reliably;<\/li>\r\n \t<li>The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td style=\"width: 39%;\">Criteria for recognizing revenue over time:\r\n\r\nControl is transferred over time if one of the following criteria is met:\r\n<ul>\r\n \t<li>The customer simultaneously receives and consumes the benefits provided by the entity\u2019s performance as the entity performs.<\/li>\r\n \t<li>The entity\u2019s performance creates or enhances an asset that the customer controls as the asset is created or enhanced.<\/li>\r\n \t<li>The entity\u2019s performance does not create an asset with an alternative use to the entity, and the entity has an enforceable right to payment for performance completed to date.<\/li>\r\n<\/ul>\r\nRecognizing revenue at a point in time:\r\n\r\nIf none of these criteria are met, the entity recognizes revenue at a point in time when the customer obtains control of the good or service.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Construction Contracts<\/strong><\/td>\r\n<td style=\"width: 39%;\">Revenue from construction contracts is recognized under 1 of 2 cases:\r\n<ul>\r\n \t<li>In cases where the construction contract stipulates that the contractor is paid according to a planned schedule, when the outcome of the construction contract can be estimated reliably, contract revenue is recognized by reference to the stage of completion determined by the contractor itself at the financial reporting date.<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td style=\"width: 39%;\">Applies the \"over time\" recognition criteria if 1 of the 3 conditions above is met. IFRS 15 does not distinguish between construction contracts versus sales of goods\/services; rather, it applies a unified principle regarding performance obligations.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<blockquote><strong>Commentary:<\/strong> Circular 99 still maintains a distinct, separate approach for construction contracts (inheriting from older standards), whereas IFRS 15 applies the exact same conceptual framework to all types of contracts.<\/blockquote>\r\n<h4><span style=\"font-size: 18px;\">13.1.4. Distinguishing Principal and Agent<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 15<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Principal<\/strong><\/td>\r\n<td style=\"width: 39%;\">An enterprise acts as a principal providing goods or services to a customer if it has control over the specific goods or services before transferring them to the customer. However, the enterprise might not necessarily control a specific good or service if it only holds legal ownership or the right to use it for a brief period before transferring that ownership or right to the customer.<\/td>\r\n<td style=\"width: 39%;\">An entity is a principal if it controls the specified good or service before that good or service is transferred to a customer. (Paragraph B35)\r\n\r\nWhen another party is involved in providing goods or services to a customer, the entity shall determine whether the nature of its promise is a performance obligation to provide the specified goods or services itself (i.e., the entity is a principal) or to arrange for those goods or services to be provided by the other party (i.e., the entity is an agent). (Paragraph B34)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Agent<\/strong><\/td>\r\n<td style=\"width: 39%;\">An enterprise acts as an agent if its performance obligation is to arrange and organize for a third party to provide specific goods or services. An enterprise acting as an agent will not control factors such as the selling price or quality of the specific goods or services provided to the customer.\r\n\r\nIn this case, the enterprise's revenue from sales and services is the commission or the amount the enterprise is entitled to through arranging for the third party to provide those goods or services directly to the customer.<\/td>\r\n<td style=\"width: 39%;\">An entity acting as an agent does not control the specified good or service provided by another party before that good or service is transferred to the customer. (Paragraph B36).\r\n\r\nIf another party is involved in providing goods or services to a customer, the entity determines whether the nature of its promise is to provide the specified goods or services itself (i.e., the entity is a principal) or to arrange for those goods or services to be provided by the other party (i.e., the entity is an agent). (Paragraph B34A)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Indicators<\/strong><\/td>\r\n<td style=\"width: 39%;\">Circular 99 does not list specific indicators.<\/td>\r\n<td style=\"width: 39%;\">Indicators that help an entity determine whether it is a principal or an agent include:\r\n<ul>\r\n \t<li>Primary responsibility for fulfilling the promise to provide the specified good or service;<\/li>\r\n \t<li>Inventory risk before the specified good or service has been transferred to a customer or after transfer of control to the customer;<\/li>\r\n \t<li>Discretion in establishing the price for the specified good or service.<\/li>\r\n<\/ul>\r\nThe indicators may be more or less relevant to the assessment of control depending on the nature of the specified good or service and the terms and conditions of the contract, and different indicators may provide more persuasive evidence in different contracts. (Paragraph B37A)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Revenue Recognition<\/strong><\/td>\r\n<td style=\"width: 39%;\">In this case, the enterprise's revenue from sales and services is the commission or the amount the enterprise is entitled to through arranging for the third party to provide those goods or services directly to the customer. (Agent)<\/td>\r\n<td style=\"width: 39%;\">An entity acting as a principal recognizes revenue in the gross amount of consideration to which it expects to be entitled.\r\n\r\nAn entity acting as an agent recognizes revenue in the amount of any fee or commission to which it expects to be entitled.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<blockquote><strong>Commentary:<\/strong> This represents a major point of similarity between Circular 99 and IFRS 15. Circular 99 has fully absorbed the fundamental \"principal vs. agent\" concept from IFRS 15, representing a significant modernization of the Vietnamese accounting framework.<\/blockquote>\r\n<h4><span style=\"font-size: 18px;\">13.1.5. Determining the Transaction Price<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 15<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Determining the Value<\/strong><\/td>\r\n<td style=\"width: 39%;\">Revenue is measured reliably (a general condition; lacks detailed guidance on variable consideration).<\/td>\r\n<td style=\"width: 39%;\">The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.\r\n\r\nIf the consideration promised in a contract includes a variable amount, an entity shall estimate the amount of consideration to which the entity will be entitled in exchange for transferring the promised goods or services to a customer.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Exchange Rate<\/strong><\/td>\r\n<td style=\"width: 39%;\">In cases where an enterprise earns revenue from sales and services in a foreign currency, it must translate the foreign currency into the accounting currency at the actual transaction exchange rate at the time the economic transaction occurs.\r\n\r\nIf an advance payment is received from a customer in a foreign currency, the revenue corresponding to the advance amount is translated into the accounting currency at the actual transaction exchange rate at the time the advance was received.<\/td>\r\n<td style=\"width: 39%;\">If the consideration is in a foreign currency, an entity shall translate the promised amount of consideration into its functional currency using the exchange rate at the date the revenue is recognized for that amount of consideration.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Deferred or Installment Sales<\/strong><\/td>\r\n<td style=\"width: 39%;\">In the case of deferred or installment sales, revenue is determined based on the immediate cash payment price (spot cash price).<\/td>\r\n<td style=\"width: 39%;\"><strong>Significant financing component<\/strong>\r\n\r\nAn entity shall adjust the promised amount of consideration for the effects of the time value of money if the timing of payments agreed to by the parties to the contract (either explicitly or implicitly) provides the customer or the entity with a significant benefit of financing the transfer of goods or services to the customer.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<blockquote><strong>Commentary:<\/strong> Circular 99 provides a simpler regulation regarding deferred or installment sales (recording at the immediate cash payment price), whereas IFRS 15 requires a more complex calculation to adjust for the time value of money by identifying a significant financing component.<\/blockquote>\r\n<h4><span style=\"font-size: 18px;\">13.1.6. Allocating the Transaction Price to Multiple Performance Obligations<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 15<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Multiple-Element Contracts<\/strong><\/td>\r\n<td style=\"width: 39%;\">An economic contract may include multiple transactions; the enterprise must identify these transactions to apply the appropriate revenue recognition conditions.\r\n\r\nRevenue must be recognized in accordance with its substance rather than its legal form or the name of the transaction, and must be allocated to the obligations to provide goods and services.<\/td>\r\n<td style=\"width: 39%;\">A performance obligation is a promise in a contract to transfer a good or service to the customer.\r\n\r\nGoods or services are capable of being distinct if they can be separated from other promises in the contract, and the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer.\r\n\r\nAn entity shall allocate the transaction price to each performance obligation on a relative stand-alone selling price basis of each distinct good or service promised in the contract.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Example of Bundled Services<\/strong><\/td>\r\n<td style=\"width: 39%;\">In cases where an enterprise sells goods accompanied by an obligation to provide after-sales services (beyond normal warranty terms), the enterprise must separately recognize the revenue from the sale of goods and the revenue from the provision of services.<\/td>\r\n<td style=\"width: 39%;\">If a contract includes more than one promised good or service, an entity shall account for each promised good or service as a performance obligation only if it is distinct.\r\n\r\nAn entity shall allocate the transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<blockquote><strong>Commentary:<\/strong> Both Circular 99 and IFRS 15 require analyzing contracts and allocating values to multiple obligations. However, IFRS 15 is much more detailed regarding the specific methodology of allocation based on relative stand-alone selling prices.<\/blockquote>\r\n<h4><span style=\"font-size: 18px;\">13.1.7. Customer Loyalty Programs<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 15<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Accounting Principles<\/strong><\/td>\r\n<td style=\"width: 39%;\"><strong>b) Accounting principles:<\/strong>\r\n<ul>\r\n \t<li>At the time of selling goods or providing services, the seller must separately determine the fair value of the goods or services to be provided for free or the discount amount for the buyer when the buyer meets the program's conditions.<\/li>\r\n \t<li>Revenue is recognized as the total receivable or collected amount minus the fair value of the free goods\/services or the discount amount. The value of the free goods\/services or discount is recorded as Unearned Revenue (Account 3387).<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td style=\"width: 39%;\">Customer loyalty programs are addressed in IFRS 15 through the concept of customer options for additional goods or services.\r\n\r\n<strong style=\"font-size: 18px; font-family: inherit;\">When it creates a performance obligation:<\/strong>\r\n\r\nWhen a customer is granted an option to acquire additional goods or services for free or at a discount, that option gives rise to a performance obligation in the contract only if the option provides a material right to the customer that it would not receive without entering into that contract.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Treatment When Conditions Are Met<\/strong><\/td>\r\n<td style=\"width: 39%;\">When the buyer meets the program's conditions, the unearned revenue is treated as follows:\r\n<ul>\r\n \t<li>If the seller directly provides the free goods\/services or discounts to the buyer: The unearned revenue corresponding to the fair value of the free goods\/services or discount is recognized as sales\/service revenue when the buyer has received the free goods\/services or discount according to the program.<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td style=\"width: 39%;\"><strong>Revenue recognition:<\/strong>\r\n\r\nIf the option provides a material right to the customer, the customer in effect pays in advance for future goods or services, and the entity recognizes revenue when those future goods or services are transferred or when the option expires.\r\n\r\n<strong>Option does not create an obligation:<\/strong>\r\n\r\nIf the customer has the option to acquire an additional good or service at a price that would reflect the stand-alone selling price for that good or service, that option does not provide the customer with a material right.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<blockquote><strong>Commentary:<\/strong> Circular 99 approaches customer loyalty programs via the traditional mechanism of Account 3387 (Unearned Revenue \/ Deferred Revenue) based on fair value. IFRS 15 approaches it conceptually by evaluating whether the customer option represents a \"material right.\"<\/blockquote>\r\n<h4><span style=\"font-size: 18px;\">13.1.8. Disclosures<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 15<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Disclosure Requirements<\/strong><\/td>\r\n<td style=\"width: 39%;\">Circular 99 includes disclosure requirements in Appendix IV but does not require the same level of specific, granular detail regarding revenue as IFRS 15.<\/td>\r\n<td style=\"width: 39%;\">The objective of the disclosure requirements in IFRS 15 is for an entity to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.\r\n\r\nAn entity shall disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.\r\n\r\nAn entity shall disclose information about its performance obligations in contracts with customers, including a description of all of the following:\r\n<ul>\r\n \t<li>When the entity typically satisfies its performance obligations;<\/li>\r\n \t<li>Significant payment terms;<\/li>\r\n \t<li>The nature of the goods or services;<\/li>\r\n \t<li>Obligations for returns, refunds, and other similar obligations;<\/li>\r\n \t<li>Types of warranties and related obligations. (Paragraph 119)<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<blockquote><strong>Commentary:<\/strong> IFRS 15 has highly detailed disclosure requirements regarding performance obligations, significant judgments, and practical expedients. Circular 99's approach to disclosures is much simpler and more aggregated.<\/blockquote>\r\n<h4><span style=\"font-size: 18px;\">13.1.9. Summary of Similarities and Differences<\/span><\/h4>\r\n<strong>Similarities:<\/strong>\r\n<ul>\r\n \t<li><strong>Principal \/ Agent Distinction:<\/strong> Circular 99 has fully absorbed this concept from IFRS 15, utilizing nearly identical language.<\/li>\r\n \t<li><strong>Recognition by Performance Obligation:<\/strong> Both frameworks require analyzing the contract and allocating revenue based on distinct supply obligations.<\/li>\r\n \t<li><strong>Customer Loyalty Programs:<\/strong> Both require the separate recognition and allocation of revenue for customer loyalty\/reward programs.<\/li>\r\n \t<li><strong>Promotional Goods:<\/strong> Both require analyzing the economic substance of the transaction and allocating revenue accordingly.<\/li>\r\n<\/ul>\r\n<strong>Differences:<\/strong>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Aspect<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 15<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Recognition Model<\/strong><\/td>\r\n<td style=\"width: 39%;\">No explicit step-by-step model.<\/td>\r\n<td style=\"width: 39%;\">Specific 5-step model.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Recognition Criteria<\/strong><\/td>\r\n<td style=\"width: 39%;\">Transfer of risks and rewards + control.<\/td>\r\n<td style=\"width: 39%;\">Transfer of control.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Construction Contracts<\/strong><\/td>\r\n<td style=\"width: 39%;\">Retains a separate approach specifically for construction contracts.<\/td>\r\n<td style=\"width: 39%;\">Applies the unified general framework to all contracts, including construction.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Variable Consideration<\/strong><\/td>\r\n<td style=\"width: 39%;\">No detailed guidance provided.<\/td>\r\n<td style=\"width: 39%;\">Detailed guidance on estimation methods and the constraint on variable consideration.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Installment Sales<\/strong><\/td>\r\n<td style=\"width: 39%;\">Recognized at the immediate cash selling price (simplified approach).<\/td>\r\n<td style=\"width: 39%;\">Requires adjustment if the contract contains a significant financing component.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Stand-alone Selling Price<\/strong><\/td>\r\n<td style=\"width: 39%;\">Not specifically mentioned or defined.<\/td>\r\n<td style=\"width: 39%;\">Strictly requires allocation based on relative stand-alone selling prices.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Disclosures<\/strong><\/td>\r\n<td style=\"width: 39%;\">Simpler, more aggregated requirements.<\/td>\r\n<td style=\"width: 39%;\">Highly detailed, extensive disclosure requirements.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<strong>Overall Assessment:<\/strong> Circular 99 has successfully adopted several crucial principles from IFRS 15 most notably the principal\/agent distinction and the fundamental concept of control acting as a major stepping stone. However, it still retains certain historical specificities (like separate rules for construction contracts) and intentional simplifications (like the treatment of time value of money) to ensure feasibility within the practical context of Vietnam."},{"faq_title":"13.2. Comparison Table of Financial Instruments under Circular 99 and IFRS 9","faq_content":"Circular 99 does not yet have detailed and comprehensive regulations on accounting for financial instruments under the IFRS 9 model. It largely maintains the basic approach from Circular 200 with only minor adjustments.\r\n\r\nHowever, in the context of global integration, Vietnamese enterprises (especially banks, financial institutions, and listed companies) need to clearly understand the differences between current local practices and the international standard IFRS 9 to prepare for future adoption.\r\n<h4><span style=\"font-size: 18px;\">13.2.1. Classification and Measurement of Financial Instruments<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 9<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Classification Model<\/strong><\/td>\r\n<td style=\"width: 39%;\">Circular 99 lacks detailed regulations on the classification of financial instruments. Classification is primarily based on the intent of holding:\r\n<ul>\r\n \t<li>Trading securities (Account 121)<\/li>\r\n \t<li>Held-to-maturity investments (Account 128)<\/li>\r\n \t<li>Other long-term investments (Account 228)<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td style=\"width: 39%;\">Financial assets are classified based on the business model for managing them and their contractual cash flow characteristics.\r\n\r\nIn essence, if:\r\n<ul>\r\n \t<li>The financial asset is a simple debt instrument like a loan;<\/li>\r\n \t<li>The objective of the business model holding it is to collect its contractual cash flows (and generally not to sell the asset);<\/li>\r\n \t<li>Those contractual cash flows represent solely payments of principal and interest;<\/li>\r\n<\/ul>\r\nthen the financial asset is measured at amortized cost.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Three Measurement Categories<\/strong><\/td>\r\n<td style=\"width: 39%;\">Circular 99 does not explicitly prescribe these three measurement categories.<\/td>\r\n<td style=\"width: 39%;\">IFRS 9 prescribes three measurement categories for financial assets:\r\n<ul>\r\n \t<li><strong>Amortized Cost (AC):<\/strong> For simple debt instruments held to collect contractual cash flows (solely principal and interest), where the business model is \"hold to collect\".<\/li>\r\n \t<li><strong>Fair Value through Other Comprehensive Income (FVOCI):<\/strong> For debt instruments held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets.<\/li>\r\n \t<li><strong>Fair Value through Profit or Loss (FVPL):<\/strong> Any financial asset not held in one of the two aforementioned business models is measured at fair value through profit or loss.<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>SPPI Test<\/strong><\/td>\r\n<td style=\"width: 39%;\">Circular 99 does not feature the concept of the SPPI test (Solely Payments of Principal and Interest).<\/td>\r\n<td style=\"width: 39%;\">To be classified at AC or FVOCI, a financial asset must pass the SPPI test: the contractual cash flows must be Solely Payments of Principal and Interest on the principal amount outstanding.\r\n\r\nIf it fails this condition, the asset must automatically be measured at FVPL.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h4><span style=\"font-size: 18px;\">13.2.2. Provision for Impairment \/ Loss of Financial Assets<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 9<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Impairment Model<\/strong><\/td>\r\n<td style=\"width: 39%;\">When there is any indication that receivables might not be partially or fully recovered, or when the enterprise is actually unable to recover all or part of customer receivables, the enterprise must make a provision for doubtful debts guided under Account 229 - Provision for asset losses. Circular 99 still applies the incurred loss model, making provisions only when there is objective evidence of impairment\/loss.<\/td>\r\n<td style=\"width: 39%;\">IFRS 9 applies the Expected Credit Loss (ECL) model instead of the incurred loss model. Entities (especially banks) are required to recognize ECL at all times, taking into account past events, current conditions, and forecast information, and to update the recognized ECL amount at each reporting date.\r\n\r\nThe ECL model is forward-looking, rather than only recognizing losses after they have occurred, aiming to recognize potential financial difficulties more promptly and proactively.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Timing of Recognition<\/strong><\/td>\r\n<td style=\"width: 39%;\">Recognized when there is objective evidence of impairment (e.g., customer bankruptcy, severe payment delinquency, significant financial difficulty).<\/td>\r\n<td style=\"width: 39%;\">ECL is recognized immediately upon initial recognition of the financial asset; there is no need to wait for an actual loss event to occur.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>3-Stage Model<\/strong><\/td>\r\n<td style=\"width: 39%;\">Circular 99 does not have a 3-stage model.<\/td>\r\n<td style=\"width: 39%;\">The IFRS 9 ECL model operates on a three-stage approach for financial assets, reflecting different levels of credit risk:\r\n<ul>\r\n \t<li><strong>Stage 1: 12-month ECL<\/strong> \u2013 Used upon initial recognition of financial instruments or existing assets whose credit risk has not increased significantly.<\/li>\r\n \t<li><strong>Stage 2: Lifetime ECL (Not credit-impaired)<\/strong> \u2013 If there is a Significant Increase in Credit Risk (SICR) since initial recognition, but the asset is not credit-impaired.<\/li>\r\n \t<li><strong>Stage 3: Lifetime ECL (Credit-impaired)<\/strong> \u2013 When a financial asset becomes credit-impaired.<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Simplified Approach<\/strong><\/td>\r\n<td style=\"width: 39%;\">No provisions for a simplified approach.<\/td>\r\n<td style=\"width: 39%;\">IFRS 9 requires the application of a simplified approach for trade receivables and contract assets that do not contain a significant financing component.\r\n\r\nUnder this simplified approach, entities always measure the loss allowance at an amount equal to lifetime ECL.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h4><span style=\"font-size: 18px;\">13.2.3. Trade Receivables<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 9<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Initial Recognition<\/strong><\/td>\r\n<td style=\"width: 39%;\">The Debit side of receivable accounts applies the actual transaction exchange rate. When there is any indication that receivables might not be recovered, the enterprise must make a provision for doubtful debts.<\/td>\r\n<td style=\"width: 39%;\">At initial recognition, an entity shall measure a financial asset or financial liability at its fair value plus or minus (in the case of a financial asset or liability not at fair value through profit or loss) transaction costs that are directly attributable to the acquisition or issue of the financial asset or liability.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Provision for Receivables<\/strong><\/td>\r\n<td style=\"width: 39%;\">When preparing Financial Statements, enterprises must classify receivables by remaining maturity up to the reporting date to identify overdue and doubtful debts, and make provisions accordingly.\r\n\r\nClassification is based on aging:\r\n<ul>\r\n \t<li>Not yet due<\/li>\r\n \t<li>Overdue under 1 year<\/li>\r\n \t<li>Overdue from 1 to 2 years<\/li>\r\n \t<li>Overdue from 2 to 3 years<\/li>\r\n \t<li>Overdue over 3 years<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td style=\"width: 39%;\">For trade receivables using the simplified approach, it is generally accepted that a basic provision matrix is sufficient.\r\n\r\nThe provision matrix calculates lifetime ECL by:\r\n<ul>\r\n \t<li>Segmenting receivables based on different credit loss patterns;<\/li>\r\n \t<li>Applying historical loss rates adjusted with forward-looking information to each segment.<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h4><span style=\"font-size: 18px;\">13.2.4. Held-to-Maturity Investments<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 9<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Definition<\/strong><\/td>\r\n<td style=\"width: 39%;\">Account 128 - Held-to-maturity investments: Reflects investments that the enterprise has the positive intent and ability to hold to maturity, such as:\r\n<ul>\r\n \t<li>Term deposits<\/li>\r\n \t<li>Government bonds<\/li>\r\n \t<li>Corporate bonds<\/li>\r\n \t<li>Bills<\/li>\r\n \t<li>Loans<\/li>\r\n \t<li>Other held-to-maturity investments<\/li>\r\n<\/ul>\r\nInvestments not classified as liabilities, loans held to maturity with fixed or determinable payments and a fixed maturity if the enterprise does not intend or have the ability to hold them for trading purposes to earn a profit.<\/td>\r\n<td style=\"width: 39%;\">A financial asset is measured at amortized cost if both of the following conditions are met:\r\n<ul>\r\n \t<li>The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows.<\/li>\r\n \t<li>The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI test).<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Measurement<\/strong><\/td>\r\n<td style=\"width: 39%;\">Measured at historical cost (purchase price + directly attributable costs).\r\n\r\nWhen the enterprise may not recover a part or all of the held-to-maturity investments, or when there is objective evidence indicating the enterprise may suffer a loss, it must make an investment loss provision.<\/td>\r\n<td style=\"width: 39%;\">Measured at amortized cost using the effective interest method:\r\n<ul>\r\n \t<li>Amortized cost = Initial amount - Principal repayments \u00b1 Cumulative amortization - Expected credit loss allowance.<\/li>\r\n \t<li>Interest income = Gross carrying amount \u00d7 Effective interest rate.<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h4><span style=\"font-size: 18px;\">13.2.5. Trading Securities<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 9<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Definition<\/strong><\/td>\r\n<td style=\"width: 39%;\">Account 121 - Trading securities: Reflects the existing value and fluctuations of securities purchased and held by the enterprise for trading purposes to earn short-term price differences.\r\n\r\nEnterprises are not permitted to reclassify trading securities to the held-to-maturity or other long-term investment categories, and vice versa.<\/td>\r\n<td style=\"width: 39%;\"><strong>Fair Value through Profit or Loss (FVPL)<\/strong> - Any financial asset not held in one of the two aforementioned business models (AC or FVOCI) is measured at FVPL.\r\n\r\nWhen, and only when, an entity changes its business model for managing financial assets, it must reclassify all affected financial assets.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Measurement<\/strong><\/td>\r\n<td style=\"width: 39%;\">Trading securities are recognized at historical cost (purchase price + related purchase costs).\r\n\r\nAt the end of the accounting period: Make a provision for devaluation of trading securities if the market value is lower than the historical cost.<\/td>\r\n<td style=\"width: 39%;\">Measured at fair value.\r\n\r\nAll changes in fair value are recognized directly in Profit or Loss.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h4><span style=\"font-size: 18px;\">13.2.6. Equity Instruments<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Content<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 9<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Classification<\/strong><\/td>\r\n<td style=\"width: 39%;\">Circular 99 lacks clear regulations on equity instruments. They are typically classified into:\r\n<ul>\r\n \t<li>Trading securities (if the trading intent is short-term)<\/li>\r\n \t<li>Long-term investments (Accounts 221, 222, 228)<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td style=\"width: 39%;\">For investments in equity instruments (shares), IFRS 9 permits an entity to make an irrevocable election at initial recognition to present subsequent changes in fair value in Other Comprehensive Income (OCI) instead of profit or loss.\r\n\r\nIf the FVOCI election is not made, equity instruments are measured at FVPL by default.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Dividends<\/strong><\/td>\r\n<td style=\"width: 39%;\">Dividends are recognized as financial income (Account 515) when the right to receive the dividend is established.<\/td>\r\n<td style=\"width: 39%;\">For equity instruments classified as FVOCI, dividends are still recognized in profit or loss, but fair value changes are recognized in OCI and are never reclassified (recycled) to profit or loss upon disposal.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<h4><span style=\"font-size: 18px;\">13.2.7. Overview Comparison Summary<\/span><\/h4>\r\n<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 22%; text-align: center;\"><strong>Aspect<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>Circular 99<\/strong><\/td>\r\n<td style=\"width: 39%; text-align: center;\"><strong>IFRS 9<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Classification Model<\/strong><\/td>\r\n<td style=\"width: 39%;\">Based on holding intent (trading vs. held-to-maturity).<\/td>\r\n<td style=\"width: 39%;\">Based on the business model + cash flow characteristics (SPPI test).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Number of Measurement Categories<\/strong><\/td>\r\n<td style=\"width: 39%;\">Not clearly defined; relies primarily on historical cost and lower of cost or market.<\/td>\r\n<td style=\"width: 39%;\">3 categories: AC, FVOCI, FVPL.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Impairment Model<\/strong><\/td>\r\n<td style=\"width: 39%;\">Incurred Loss - Recognized only when there is objective evidence of loss.<\/td>\r\n<td style=\"width: 39%;\">Expected Credit Loss (ECL) - Recognized immediately, forward-looking.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Impairment Stages<\/strong><\/td>\r\n<td style=\"width: 39%;\">No staging.<\/td>\r\n<td style=\"width: 39%;\">3-stage model (12-month ECL, Lifetime ECL non-impaired, Lifetime ECL impaired).<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Reclassification<\/strong><\/td>\r\n<td style=\"width: 39%;\">Prohibited from reclassifying between trading and other groups.<\/td>\r\n<td style=\"width: 39%;\">Required\/Permitted only when the business model changes.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Equity Instruments<\/strong><\/td>\r\n<td style=\"width: 39%;\">No specific guidance.<\/td>\r\n<td style=\"width: 39%;\">Irrevocable election available for FVOCI presentation.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Forward-looking Information<\/strong><\/td>\r\n<td style=\"width: 39%;\">Not required.<\/td>\r\n<td style=\"width: 39%;\">Mandatory consideration of forecast information when estimating ECL.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 22%;\"><strong>Simplified Approach<\/strong><\/td>\r\n<td style=\"width: 39%;\">None.<\/td>\r\n<td style=\"width: 39%;\">Simplified approach available (and often required) for short-term trade receivables.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>"},{"faq_title":"13.3. Other Differences Between Circular 99 and IFRS","faq_content":"<table style=\"border-collapse: collapse; width: 100%;\" border=\"1\">\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 14.057%; text-align: center;\"><strong>Comparison Area<\/strong><\/td>\r\n<td style=\"width: 34.3835%; text-align: center;\"><strong>Regulations under Circular 99 (based on VAS)<\/strong><\/td>\r\n<td style=\"width: 30.1067%; text-align: center;\"><strong>IFRS Regulations<\/strong><\/td>\r\n<td style=\"width: 60.4528%; text-align: center;\"><strong>Key Differences<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 14.057%;\"><strong>Leases (IFRS 16)<\/strong><\/td>\r\n<td style=\"width: 34.3835%;\">Classifies leases into finance leases (recognizing assets and liabilities if significant risks and rewards are transferred) and operating leases (recognizing expenses on a straight-line basis over the lease term).\r\n\r\nFinance leases use Account 212 (Finance lease fixed assets) and Account 341 (Finance lease liabilities). Circular 99 retains the classification approach of VAS 17, with some flexibility in contract assessment but no fundamental changes.<\/td>\r\n<td style=\"width: 30.1067%;\">IFRS 16 applies a single lessee accounting model for most leases (except for short-term leases under 12 months or leases of low-value assets): recognizing a right-of-use (ROU) asset and a lease liability from the commencement of the contract, using the interest rate implicit in the lease or the lessee's incremental borrowing rate.\r\n\r\nIt does not distinguish between finance and operating leases, focusing instead on the control of the leased asset.<\/td>\r\n<td style=\"width: 60.4528%;\">Circular 99 maintains the dual classification model (similar to the old IAS 17), not requiring the recognition of lease liabilities and ROU assets for long-term operating leases.\r\n\r\nThis leads to larger off-balance-sheet financing and less accurately reflects the actual financial obligations compared to IFRS 16. It also lacks regulations on implicit discount rates and variable lease adjustments.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 14.057%;\"><strong>Biological Assets (IAS 41)<\/strong><\/td>\r\n<td style=\"width: 34.3835%;\">Biological assets (Account 215) are recognized at historical cost less depreciation and provision for impairment when the net realizable value is lower than the historical cost, similar to inventory.\r\n\r\nCircular 99 adds a separate account but does not mandate fair value measurement unless a reliable active market exists.<\/td>\r\n<td style=\"width: 30.1067%;\">IAS 41 requires the measurement of all biological assets at fair value less costs to sell at each reporting period, with changes recognized in profit or loss (except for consumable biological assets attached to fixed assets).<\/td>\r\n<td style=\"width: 60.4528%;\">Circular 99 prioritizes the cost model, only allowing fair value if it is reliable.\r\n\r\nThis results in more stable book values but reflects less actual market fluctuation compared to the mandatory fair value requirement of IAS 41.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 14.057%;\"><strong>Investment Property (IAS 40)<\/strong><\/td>\r\n<td style=\"width: 34.3835%;\">Investment property (Account 217) allows an enterprise to choose either the cost model (less depreciation) or the fair value model (changes through profit or loss), but the chosen model must be applied consistently to the entire portfolio.\r\n\r\nCircular 99 retains VAS 05 with similar options.<\/td>\r\n<td style=\"width: 30.1067%;\">IAS 40 allows choosing the cost model or fair value model for the entire portfolio, with fair value changes recognized in profit or loss; if the cost model is chosen, the fair value must be disclosed.<\/td>\r\n<td style=\"width: 60.4528%;\">Circular 99 is similar regarding model choices but lacks the mandatory disclosure requirement for fair value if the cost model is used.\r\n\r\nIt also provides less guidance on model transitions or reclassifications to\/from fixed assets compared to IAS 40.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 14.057%;\"><strong>Presentation of Financial Statements (IAS 1)<\/strong><\/td>\r\n<td style=\"width: 34.3835%;\">The financial reporting system consists of 4 main statements:\r\n<ul>\r\n \t<li>Statement of Financial Position (name changed from Balance Sheet)<\/li>\r\n \t<li>Income Statement<\/li>\r\n \t<li>Statement of Cash Flows<\/li>\r\n \t<li>Notes<\/li>\r\n<\/ul>\r\nClassifies short\/long-term assets\/liabilities based on liquidity; requires expanded disclosures on accounting policies and material estimates.\r\n\r\nCircular 99 increases flexibility to add indicators and omit non-occurring ones.<\/td>\r\n<td style=\"width: 30.1067%;\">IAS 1 requires fair presentation and consistency, explicitly including a separate Statement of Changes in Equity, detailed financial risk disclosures, and the classification of assets\/liabilities based on the operating cycle or liquidity.<\/td>\r\n<td style=\"width: 60.4528%;\">Circular 99 does not require a separate Statement of Changes in Equity (this information is usually combined within the Notes) and provides fewer details on Other Comprehensive Income (OCI) and financial risks compared to IAS 1.\r\n\r\nHowever, Circular 99 did update the statement names to align with international terminology.<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 14.057%;\"><strong>Foreign Exchange Differences (IAS 21)<\/strong><\/td>\r\n<td style=\"width: 34.3835%;\">Differences from foreign currency transactions are recognized immediately in profit or loss (Account 515\/635); period-end revaluations use the average bank rate, with the net value recognized in business results.\r\n\r\nDifferences from translating FS in foreign currencies are recorded in equity (Account 413). Circular 99 allows more flexible exchange rates, permitting the use of an approximate rate (a margin of \u00b11% compared to the average buying\/selling rate at the transaction date) for the actual transaction rate.<\/td>\r\n<td style=\"width: 30.1067%;\">IAS 21 distinguishes the functional currency; transaction differences are recorded in profit or loss; translation differences are recorded in OCI (classified as items that will or will not be reclassified subsequently to profit or loss).<\/td>\r\n<td style=\"width: 60.4528%;\">Circular 99 is fundamentally similar but does not classify OCI in detail and provides less guidance on determining complex functional currencies, leading to a simpler treatment of translation differences compared to IAS 21.<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>"},{"faq_title":"13.4. Handling Differences Between Circular 99 and IFRS: Steps for Conversion Adjustments to Prepare IFRS Financial Statements ","faq_content":"Converting Financial Statements from Circular 99 to IFRS requires enterprises to perform IFRS Conversion Adjustments - a systematic process to adjust data to comply with IFRS principles while simultaneously ensuring compliance with local regulations for tax and internal management purposes.\r\n\r\nThis conversion process is based on the VAS-IFRS convergence roadmap proposed by the Ministry of Finance, with Circular 99 serving as a crucial transitional step. The differences between Circular 99 and IFRS can make the Financial Statements lengthier and significantly increase the disclosure burden.\r\n\r\n<strong>Recommendations<\/strong>: It is highly recommended that enterprises utilize the presentation templates under IAS 1 for parallel reporting and actively consult with independent auditors to ensure strict compliance and avoid material misstatements during the transition."}]}]}],"sidebar_custom":null,"site_custom":null}},"_links":{"self":[{"href":"https:\/\/brochure.crowevietnam.vn\/en\/wp-json\/wp\/v2\/insight\/20949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brochure.crowevietnam.vn\/en\/wp-json\/wp\/v2\/insight"}],"about":[{"href":"https:\/\/brochure.crowevietnam.vn\/en\/wp-json\/wp\/v2\/types\/insight"}],"author":[{"embeddable":true,"href":"https:\/\/brochure.crowevietnam.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/brochure.crowevietnam.vn\/en\/wp-json\/wp\/v2\/comments?post=20949"}],"version-history":[{"count":5,"href":"https:\/\/brochure.crowevietnam.vn\/en\/wp-json\/wp\/v2\/insight\/20949\/revisions"}],"predecessor-version":[{"id":21099,"href":"https:\/\/brochure.crowevietnam.vn\/en\/wp-json\/wp\/v2\/insight\/20949\/revisions\/21099"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brochure.crowevietnam.vn\/en\/wp-json\/wp\/v2\/media\/20950"}],"wp:attachment":[{"href":"https:\/\/brochure.crowevietnam.vn\/en\/wp-json\/wp\/v2\/media?parent=20949"}],"wp:term":[{"taxonomy":"insight_categories","embeddable":true,"href":"https:\/\/brochure.crowevietnam.vn\/en\/wp-json\/wp\/v2\/insight_categories?post=20949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}