Current regulations require accounting to reflect the business activities and arising economic transactions of the enterprise in accordance with Vietnamese Accounting Standards and the current Corporate Accounting Regime.

However, in the current situation, most accountants are not applying Accounting Standards as well as Enterprise Accounting Regime for accounting but mainly rely on tax regulations to reflect on Financial Statements (FS).

1. Regulations on the duties of accountants

Pursuant to Articles 4 and 5 of the Law on Accounting, Law No. 88/2015/QH13 dated November 20, 11 clearly stipulates the duties and requirements for accountants as follows:

“Article 4. Accounting tasks

1. Collect and process accounting information and data according to the object and content of accounting work, according to accounting standards and accounting regime.
2. To inspect and supervise financial revenues and expenditures, collection, payment and debt payment obligations; inspect the management and use of assets and sources of assets; detect and prevent violations of the law on finance and accounting.
3. Analysis of accounting information and data; advise and propose solutions to the requirements of management and economic and financial decisions of the accounting unit.
4. Provide accounting information and data according to the provisions of law.

Article 5. Accounting requirements

1. Fully reflect economic and financial operations arising in accounting vouchers, accounting books and financial statements.
2. Timely and on time reporting of accounting information and data.
3. Reflecting clearly, easy to understand and accurately accounting information and data.
4. To honestly and objectively reflect the current status quo, the nature of the matter, content and value of economic and financial transactions.
5. Accounting information and data must be continuously reflected from the time it arises to the end of economic and financial activities, from its establishment to the end of the operation of the accounting unit; The accounting data of this period must continue the accounting data of the previous period.
6. Classify and arrange accounting information and data in a systematic, orderly, comparable and verifiable manner.”

2. Why do accountants care so much about tax regulations?

2.1. Due to misunderstanding about the function of Accounting and Tax Standards

Accounting standards include basic accounting regulations and methods for preparing financial statements (FS). Therefore, financial statements must be prepared and presented in accordance with the provisions of Accounting Standards and Enterprise Accounting Regime as prescribed by the Accounting Law. The preparation and presentation of financial statements must ensure that they reflect the true nature of the transaction rather than the form or name of the transaction.

A tax is a mandatory financial charge or some other type of tax imposed on a taxpayer (an individual or legal entity) that must be paid to a government entity to finance various public expenditures.

Because of such functional differences, taxes are not used to guide accountants in the preparation and presentation of financial statements, but only provide regulations for tax administration and avoid loss of tax revenue for the State. However, accountants are not familiar with Accounting Standards as a guideline for accounting, reflecting the true nature of problems arising in their work.

2.2. Due to fear of responsibility and risk of punishment

Non-compliance with regulations on financial reporting, although there are regulations and sanctions, is not yet highly deterrent. On the contrary, any tax violation will immediately be subject to sanctions, enforcement, and even affect the business's ability to operate. This leads to the accountant's mentality being affected by tax regulations when reflecting the arising transactions on the financial statements.

Any violation has sanctions, but the one that affects immediately, clearly and directly to the business is always what the business wants to avoid the most. That said, it does not mean that the accounting sanctions are not there, there are still present on the books, as the risk is still there but cannot be lost over the years.

2.3. Due to the insufficient level of interest of business managers

Managers, if they have not yet realized the role and importance of financial statements, will assign the accounting department to self-manage as long as they guarantee tax. Meanwhile, the financial statements are a mirror that honestly reflects the business situation of the enterprise, attracts investors, and enhances the position of the enterprise.

A financial statement for tax purposes is no longer a true financial statement. The information presented in the financial statements at this time is no longer the basis for managers and corporate administrators to make their business decisions, nor is it the correct information that investors want. to watch.

3. Benefits of the right mindset when doing accounting

It is not difficult at the same time to comply with the provisions of Accounting Standards and Regulations and to comply with the provisions of tax. But to do that, first of all, accountants need to clearly separate the scope and function of the Standards and Taxes.

Financial reporting while complying with both accounting and tax regulations will give businesses great peace of mind and confidence for accountants. At that time, the enterprise was really confident about the data provided to the third party, the accountant was confident about the numbers presented on the report.

Since then, enterprises are always ready for all investment opportunities, before all important decisions, before all foreign capital sources. Businesses do not waste time fiddling with the bookkeeping problem so that it is right, how to be appropriate, how to explain how to be reasonable. To get those results, it all starts with thinking right now about financial reporting and the current accounting profession.

Vietnam is a destination for many foreign investment flows. Transparency of information in financial reports, compliance with Standards, and reflection of substance over form are ways for businesses to quickly access these capital sources.