The accounting review service delivers practical value to companies through a comprehensive reconciliation of the accounting books system, source documents, and account balances with VAS standard regulations as well as the tax returns already filed. It needs to be clarified that accounting review is not a mandatory procedure under the law, but a voluntary and proactive cross-check solution. This service helps companies identify errors in accounting records and weaknesses in the accounting department’s operations, enabling them to implement appropriate corrective measures and mitigate tax compliance risks before a tax inspection by the authorities.

Performing an accounting review early is the key that helps companies proactively adjust figures while there is still time, eliminate the risk of administrative tax penalties, and at the same time avoid prolonging the audit progress of the annual financial statements. The article below presents in detail the warning signs that books need review, the standard implementation process, the method of assessing the level of tax inspection, and clearly distinguishes the difference between review and audit.

1. What Is an Accounting Review or Accounting Health Check?

In substance, accounting review is the process of in-depth examination of the entire General Ledger, detailed account ledgers, recording documents, and financial balances against the Vietnamese Accounting Standards (VAS) system, as well as consistency with the tax returns already filed. The output product of this process is a detailed findings report, accompanied by a list of proposed adjusting entries and a summary table of tax risk areas that the company needs to remediate.

Companies should proactively implement accounting review Vietnam at the following important milestones:

• The stage of preparing to close the accounting books at the end of the financial year.

• The time before an inspection by the relevant authorities, such as tax or social insurance agencies.

• When the company changes the accounting service provider (Refer to details in the article Accounting Handover Checklist).

• Before preparing the dossier to remit lawful profits to the Parent Company overseas.

• The stage of preparing for M&A transactions, restructuring, or investment exit.

2. Key Differences Between Accounting Review and Independent Audit

Clearly distinguishing between internal accounting review and independent audit helps companies use the correct service according to needs:

Comparison Criteria	Accountin Review/ Health Check	Financial Audit
Performed by	Independent accounting / tax advisory firm	Licensed independent audit firm
Core objective	Detect errors and accounting, tax risks, and adjust figures	Express an opinion on whether the financial statements are presented truly and fairly
Output	Findings report & list of adjusting entries	Official independent audit report
Can it replace the audit report?	No, it cannot replace the audit report	A mandatory legal report as prescribed

Accounting Review Is Not a Review Engagement

It needs to be clarified that the “Review of financial statements” procedure (Review Engagement) under Vietnamese Standard on Review Engagements VSRE 2400 (issued together with Circular 65/2015/TT-BTC) is a limited assurance service performed by practicing auditors. Meanwhile, the accounting review service mentioned in this article is in substance an internal review and cross-check activity aimed at detecting technical errors and optimizing figures.

These two tasks are complementary in nature: performing an internal accounting review beforehand will help the subsequent independent audit process proceed quickly, smoothly, and minimize exception opinions from the auditor to the greatest extent.

3. Signs Your Books Need an Accounting Review

During operations, when the following abnormal signs appear, companies should immediately proceed to review the accounting books system (books review before audit):

• Cash/bank deposit differences: The bank deposit account balance on the accounting books does not match exactly with the Bank Statement from the bank at the period-end closing date.

• Revenue figure inconsistency: Revenue recorded on the accounting books has differences compared with the total revenue declared on the periodic VAT tax returns without an explanatory table of the causes.

• Unreasonable receivable, payable, and inventory balances: Receivable, payable, and internal advance balances have been outstanding for a long time without reconciliation; negative inventory balances appear on the books.

• Missing expense documents: Many expense items lack valid invoices, are recorded in the wrong accounting period, or the balances of foreign-currency monetary items have not been revalued at the period-end date.

• Group report differences: Financial statement figures under VAS have large differences compared with management report figures sent to the Parent Company but lack a Reconciliation Package.
• 2026 circular transition risk: The company performs the transition of the accounting regime from Circular 200/2014/TT-BTC to Circular 99/2025/TT-BTC in 2026 but has not reviewed and accurately converted the opening balances of the accounting accounts.

Beyond the warning signs above, companies are still advised to carry out a periodic independent accounting review even when none of these symptoms are present. A proactive review uncovers hidden or potential errors that rarely surface in day-to-day operations, keeping the books accurate and audit-ready before the financial year closes.

4. The Accounting Review Process Step by Step

A standard accounting review process is performed systematically through 7 clear steps:

• Agree on scope & objectives: The two parties hold a meeting to accurately finalize the work scope, the accounting period to be reviewed, and the risk focuses that need attention.

• Collect data: The review department receives the Trial Balance, detailed account ledgers, bank statements, and all tax returns filed during the period.

• Reconcile asset & liability balances: Proceed to check and reconcile cash balances, bank deposits, receivables/payables (through debt confirmation letters), physical inventory counts, fixed assets, and depreciation/allocation schedules.

• Reconcile book figures with Tax: Review the consistency between general ledger data and VAT tax returns, provisional Corporate Income Tax returns, Personal Income Tax returns, and Foreign Contractor Tax (FCT) returns.

• Examine expenses & Related-party transactions: Review the conditions for deductible expenses when calculating Corporate Income Tax, the legality of documents, and check transactions arising with related parties.

• Prepare the report & Propose adjustments: Issue a detailed findings report, clearly analyze the causes of errors, the level of risk, and prepare the list of proposed adjusting entries.

• Perform figure adjustments: After the Board of Directors approves, the accounting department proceeds to record the additional adjusting entries and file supplementary tax returns (if adjusted tax obligations arise).

4. How Ready Are Your Books for Audit?

To assess the level of readiness of the books before the independent audit period, companies can use the Checklist below:

• Accounting books have been completed and officially closed.

• All receivable/payable and bank deposit balances have been reconciled and debt confirmation letters have been issued.

• Full cash count, inventory, and fixed asset count minutes are available as of 31/12.

• Fixed asset depreciation schedule and prepaid expense allocation schedule are prepared accurately.

• The Transfer Pricing Documentation set and declaration appendices have been completed.

• The audit document request list (PBC List – Provided by Client List) is prepared and ready.

Based on the reconciliation results, the books usually fall into one of three levels:

• Ready: books have been closed, balances have been reconciled, and the PBC list is sufficient; can be handed over immediately to the auditor.

• Needs minor adjustments: some recording errors or missing reconciliations remain; adjusting entries are needed before the auditor enters.

• Needs reconstruction of books for certain periods: errors are repeated across multiple periods or source documents are missing; the books of the affected periods must be reconstructed.

Note for FDI companies: According to regulations, foreign-invested companies are required to have their annual financial statements audited and to submit the audited reports within 90 days from the end of the financial year. Therefore, companies should perform the accounting review 1 to 2 months before the audit firm enters work in order to ensure progress.

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6. Accounting Review Services at Vina TPT

The Accounting Review (Accounting Health Check )service at Vina TPT is specifically designed to bring absolute peace of mind to the company’s management before audit periods and tax inspections:

• Perform the review according to the standard 7-step process, issue a detailed findings report accompanied by bilingual technical explanations (English – Vietnamese / Japanese).

• Directly support the company in performing the book-closing adjusting entries after approval; support preparation of the PBC document set and work directly with the independent audit team.

• Integrate the Tax Health Check package to comprehensively screen risks arising from VAT, Corporate Income Tax, Personal Income Tax, and Foreign Contractor Tax obligations.

Performing accounting review is the optimal method that helps companies proactively detect errors and control tax risks through reconciliation of books, documents, and returns, while at the same time raising the level of readiness for the annual financial statement audit period.

Please send the most recent Trial Balance so that we can provide a proposed review scope and detailed implementation roadmap before the audit period!

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In a volatile business environment, the general trend among foreign investors is to prioritize flexible outsourced operating solutions. Besides traditional specialized areas such as tax advisory or accounting, back office services are increasingly trusted by FDI companies in order to convert the fixed costs of salaries, insurance and recruitment for in-house operating staff into variable costs based on actual needs.

By outsourcing administrative tasks such as issuing e-invoices, reviewing contracts, preparing bank transfer orders or storing vouchers and records, a company optimizes its organizational resources. This article analyzes in detail what makes up a package of back office support for FDI companies, the benefits of reducing compliance risks, and the method for choosing a suitable service scope.

1. What Back Office Services Cover in Vietnam

Back office services are understood as a chain of administrative, corporate secretarial and legal compliance tasks. Although these tasks do not directly generate revenue, they play the role of the backbone that helps a company operate lawfully, maintain continuity and meet the prescribed deadlines.

Basically, a comprehensive back office services Vietnam package includes 03 core groups of tasks:

• Corporate Secretarial: Managing legal records and internal decisions, and complying with the Law on Enterprises.
• Office Administration: Managing vouchers, issuing invoices, supporting bank transactions and storing documents.
• Compliance Filings & Liaison: Submitting periodic reports and working directly with the competent state authorities.

Service scope note: Accounting – Tax and Payroll management are separate specialized areas, and are not within the scope of an ordinary administrative back office package. (Companies can also refer to Vina TPT’s accounting service and read the article FDI Accounting in Vietnam to understand the specific accounting obligations of FDI companies.)

2. Corporate Secretarial Tasks

Corporate secretarial work ensures that the company’s internal legal system is always standardized and fully compliant with the regulations of the Law on Enterprises:

• Drafting and managing the system of Meeting Minutes and Resolutions of the Members’ Council / Board of Directors and the General Meeting of Shareholders; updating the Register of Members / Register of Shareholders in line with the actual situation.
• In-depth advice on the rights and obligations of investors and the legal representative based on the Law on Enterprises and the company’s Charter.
• Drafting and managing internal governance documents such as Appointment Decisions, Notices, Authorizations and simple commercial/service contracts.
• Reviewing, checking the terms and tracking the validity progress of sales and purchase contracts and office/asset lease contracts.
• Carrying out the procedures to register changes to enterprise registration information (changes of shareholders/members, legal representative, increase/decrease of charter capital, change of head office address).
• Registering and notifying the company seal samples and managing the digital signature (USB Token / Digital Certificate).

As a result, every decision of the Members’ Council, the Board of Directors or the General Meeting of Shareholders is fully recorded, consistent with the registered records and ready to be provided when a state authority or partner requests it.

3. Office Administration Tasks for FDI Companies

Office administration work is designed to standardize the flow of vouchers and support the daily financial transactions of FDI companies:

• Collecting, classifying, checking the validity of and organizing the system of input invoices (office rental costs, utilities, service suppliers); issuing output e-invoices according to business needs.
• Preparing payment orders on the e-banking system (Internet Banking) for monthly operating expenses, salary expenses, Social Insurance contributions and taxes payable (the company retains the final approval right before the money is transferred).
• Receiving, checking vouchers and preparing expense reimbursement files for employees under the internal financial regulations.
• Managing clerical work, receiving and delivering mail, parcels and express-delivery documents.
• Systematically managing and storing both hard copies and soft copies of reimbursement files, personnel files and legal files; carrying out digitization and translation of documents upon request.

The company remains the final approver of every payment; the service provider only prepares the orders and records so that payments are made on time and with the proper vouchers. This separation helps the company save time on paperwork while keeping control of its cash flow.

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4. Compliance Filings and Liaison with Authorities

Fulfilling compliance reporting obligations on time helps the company limit the risks of administrative violations:

• Preparing and submitting periodic reports to state management authorities according to the legal schedule: the Report on the Implementation of the Investment Project on the National Investment Information System and periodic statistical reports).
• Advising on setting up the set of vouchers and storage records needed to ensure tax compliance; working closely with the accounting department to provide figures promptly.
• Representing the company in transactions and explanatory meetings with specialized authorities such as the Department of Finance and the Management Board of Industrial Parks / Export Processing Zones (IP/EPZ); applying for new or updating operating licenses and certificates.
• Tracking and updating the Compliance Calendar and proactively sending reminders to the Board of Directors before important deadlines.

When reporting deadlines are tracked on a common calendar and reminded in advance, the management does not have to remember each deadline of each authority on its own.

5. What Back Office Services Help Your Company Optimize

Applying an outsourced back office solution brings many strategic benefits that help improve the company’s competitiveness:

• Optimizing operating costs: Converting fixed costs (salary, social insurance, recruitment costs, training for full-time administrative staff) into flexible variable costs based on the actual scope of work incurred.
• Saving management time: Freeing the management and the sales team from repetitive administrative work, helping them focus resources on market development activities and generating revenue.
• Limiting legal risks: Records and reports are handled by a team that understands the law, helping limit the risk of late filing, document errors or administrative penalties.
• Maintaining the continuity of the organization: Ensuring that the workflow runs smoothly without interruption even when there are changes in internal personnel. The record system is stored in a standardized way and is easy to look up during audits or tax inspections.
• Flexibly adjusting the scale: The company can easily expand or reduce the scope of work used at each stage of development of the investment project.

6. How to Choose the Right Back Office Services Package

Depending on the organizational model and the operating stage, a company can choose a service package with a suitable scope of work:

6.1. Newly Established FDI Company

• Context: The company has just received the Enterprise Registration Certificate (ERC) and needs to complete its initial organization.
• Recommended scope: Register the seal sample, set up the digital signature, prepare the Register of Members, issue the initial internal governance regulations, and set up a standardized record and voucher storage system from the first day of operation.

6.2. Company Without an Admin Team

• Context: The company wants to keep a lean staff structure and does not set up a separate Administration – Human Resources department.
• Recommended scope: Outsource all 03 groups of tasks as a full package: Corporate Secretarial, Office Administration and legal Compliance Reporting.

6.3. Company with an In-House Admin

• Context: The company already has in-house administrative staff handling basic office tasks.
• Recommended scope: Outsource on a supplementary modular basis for complex areas requiring high expertise: in-depth Corporate Secretarial work, periodic compliance reports and representation when working with state management authorities.

Note when choosing a provider: The company should clarify criteria such as the working language, the commitment to filing deadlines, the data security policy, the main point of contact (Single Point of Contact), and the payment approval process. 

7. Back Office Services at Vina TPT

Vina TPT provides a comprehensive back office services solution, acting as a single point of contact that handles the full package of Corporate Secretary, Office Administration, and Legal Compliance tasks. Companies can easily integrate the back office package with Vina TPT’s Accounting and Payroll services to create a synchronized operational management system.

• With more than 20 years of practical experience accompanying more than 500 corporate clients, we clearly understand the common bottlenecks that FDI companies face when handling administration and compliance themselves: missing documents, missed filing deadlines, or work interruptions when internal staff resign. From this understanding, we build deadline tracking processes and clear task assignment so that work runs stably.
• Transparent quotations and clear definition of the work scope before implementation, so that the company knows which tasks are performed by Vina TPT and which tasks are handled by the internal department.
• When using the service, companies optimize the fixed costs of full-time administrative staff, reduce the risk of late or incorrect document submission, and free up management time to focus on business activities. Documents are stored systematically and are easy to retrieve during audits or inspections, while work is not interrupted when there are changes in internal personnel.

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“Does changing the accounting service provider mid-year delay the company’s next tax filing period?” The answer is definitely no, provided that the transition is managed tightly through a clear handover list (accounting handover checklist). In practice, delays or discrepancies in figures in the next filing period usually stem from handing over incomplete original records, failing to finalize opening balances, or failing to determine a specific cut-off date between the parties.

This article compiles a detailed accounting handover checklist by group of key records. The content focuses entirely on the technical handover of figures and documents, helping the company maintain continuity and on-time compliance in the following filing periods when it makes the decision to change accounting firm Vietnam.

1. When to Plan the accounting handover checklist

To ensure the transition runs smoothly and does not interrupt tax obligations, the company needs to proactively plan the timeline early:

• Determine the cut-off date: The ideal cut-off point is right after the tax obligations of a periodic filing period (end of month or end of quarter) have been completed and paid. This clearly allocates legal responsibility for the figures already filed between the former firm and the new firm.
• Handle the peak period (finalization season, January–March): If the accounting firm is changed right during the period of preparing Financial Statements and annual tax finalization, the company must agree in writing on which party will bear the main responsibility for completing the Financial Statements and finalizing Corporate Income Tax/Personal Income Tax for the previous financial year.
• Notice period and handover roadmap: The company sends the termination notice within the period committed to in the current service contract. The handover roadmap should run for 2 to 4 weeks before the official cut-off date so that the parties have enough time to count, reconcile and hand over the records.
• Official handover record: The entire list of documents and vouchers and the account balances at the cut-off date must be recorded in detail in a Handover Record confirmed by the parties.

2. Accounting Handover Checklist: Books and Records

The list of accounting books and figures to be handed over consists of two core parts: electronic data and the original legal vouchers.

a. Books and Financial Data

The former accounting firm is obliged to export and hand over all accounting data up to the cut-off date:

• The General Ledger, the Detail Ledgers of accounts and the Trial Balance up to the cut-off date.
• The complete set of Financial Statements of previous years (including the audited version where an independent audit is mandatory).
• Backup files of the data in the accounting software or a complete data export in Excel format.
• The fixed asset register and depreciation schedule, the prepaid expense allocation schedule (Account 242), and the inventory summary and detail schedule of receipts, issues and balances.
• A list of all of the company’s bank accounts together with the reconciliation of deposit balances at the cut-off date.

b. Source Documents and Contracts

Source documents are an important legal basis for explanations when the tax authority carries out an inspection or audit:

• The set of input source documents, output invoices, receipt vouchers, payment vouchers, and bank debit and credit advices.
• All economic contracts (sales and purchase, service provision, loan agreements and asset lease contracts) together with acceptance and liquidation minutes.

Legal note on storage: Under Article 12 of Decree 174/2016/NĐ-CP, the company’s Legal Representative is responsible for managing and storing accounting books, Financial Statements and accounting vouchers for a minimum of 10 years. Therefore, all original documents must be stored centrally at the company’s premises, and the service provider should not hold the originals long-term.

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3. Tax Files and Filing History

The filing history and tax files are the foundation for the new accounting firm to continue performing tax obligations in accordance with regulations:

• Periodic tax returns: All VAT returns, Personal Income Tax returns, provisional Corporate Income Tax returns and Foreign Contractor Tax (FCT) returns filed over the periods.
• Annual finalization files: Corporate Income Tax finalization returns and Personal Income Tax finalization returns of past years, together with the related-party transaction information appendices (if any).
• Payment documents: Payment receipts to the state budget, and confirmation notices of outstanding or overpaid tax from the tax authority.
• In-depth files: Files proving Corporate Income Tax incentives, the schedule tracking loss carry-forwards over the years, and the most recent tax inspection/audit minutes of the tax authority (if any).
• Confirmation of period status: A document clearly confirming which accounting/tax periods have been closed and which are still open.

The new firm should reconcile the figures in the returns already filed with the books at the cut-off date. If differences are found, they need to be added to the list of open items for immediate handling, rather than being discovered only at the finalization period.

4. Access Rights to Transfer (accounting handover checklist)

The transfer of access rights to electronic management systems needs to be carried out in parallel to ensure the security and the company’s control:

• Electronic tax account: Receive the login information and change the password immediately after the handover is completed.
• Digital signature (USB Token / Digital Certificate): The digital signature is a legal asset owned by the company and must be kept directly at the company.
• E-invoice account: Hand over the administrator rights of the e-invoice system and the rights to issue/adjust/replace invoices, together with the list of invoices that are wrong or awaiting handling.
• E-banking view rights (Internet Banking): Hand over view-only access to look up balances and transaction history, if it was previously granted to the former accounting firm.
• Social insurance and investment reporting accounts: Receive the electronic social insurance filing account. For FDI companies, the accounts on the National Investment Information System and the statistical reporting system must also be recovered and received.
• Revoking access rights: Revoke all access rights, permissions and passwords of the former service provider immediately after the cut-off handover date.

5. Payroll, Social Insurance and Labor Records (accounting handover checklist)

Labor and payroll records are directly related to deductible expenses when calculating Corporate Income Tax and to employees’ Personal Income Tax obligations:

• Payroll sheets, labor contracts and decisions on salary adjustments/appointments.
• The social insurance unit code, the list of employee increases/decreases and the registration records of dependents.
• Written authorizations for employees’ Personal Income Tax finalization (if any).
• Valid Work Permits and Temporary Residence Cards (TRC) of foreign personnel.
• Periodic labor utilization reports (6-month and annual) already submitted to the labor management authority.

For foreign personnel, the validity of the Work Permit and the Temporary Residence Card should be checked at the time of handover so that the accountant knows the upcoming renewal dates. The payroll and social insurance records should also be reconciled with the number of employees actually working at the company.

6. Open Items and Handover Minutes

Outstanding items that have not been handled need to be listed transparently so that the new accounting firm can take them over and follow up on their resolution:

• A list of customer/supplier balances not yet reconciled, internal advances not yet settled, or invoices/documents still missing.
• Files, explanation documents or tax refund requests awaiting an official response from the tax authority.
• The schedule for tracking the filing and payment deadlines of the next filing period.
• Handover Minutes: The record must state in detail the list of records, the opening account balances handed over, and the lawful confirming signatures of the company’s Representative, the former service provider and the new service provider.

Each outstanding item should state the person in charge, the deadline for handling and the related documents. This list is attached to the handover record so that the parties can follow it together until completion.

7. How Vina TPT Takes Over Your Books

The process of taking over books at Vina TPT is standardized to protect the interests of the company:

• Reviewing the list before takeover: Vina TPT sends the company a detailed accounting handover checklist before the cut-off date, and proactively reconciles the opening balances taken over with the data in the tax returns already filed.
• Proposing an Accounting Review: If the former books are found to have many errors or inconsistent figures, we will propose an in-depth accounting review solution (please refer to the article Accounting Review in Vietnam for more details).
• Ensuring the schedule & bilingual reports: The first tax filing period right after the handover is submitted on time, and the company receives a bilingual reporting system so that the management can follow the situation.

Conclusion

Using a standardized accounting handover checklist helps the company control all financial books, tax files, electronic access rights, payroll – social insurance data and outstanding tasks when changing service providers. This careful preparation ensures that the company’s tax compliance runs continuously and with legal safety. When each group of records is counted and confirmed in the handover record, the new accounting firm can take over the work right from the first filing period.

Please send us the planned date for changing your accounting firm to receive a list of files to prepare under the accounting handover checklist and a free sample Handover Record, together with a takeover roadmap that fits your company’s filing schedule!

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In multinational group structures, the parent company overseas frequently requires subsidiaries in Vietnam to provide a standardized financial data package (Reporting Package) in order to perform full-group financial statement consolidation. However, depending on the ownership structure and actual control rights, some companies located in Vietnam are also required to prepare their own consolidated financial statements under local law.

This article provides an overview to help FDI managers and founders clearly understand the nature of consolidated financial statements, accurately determine the cases in which consolidated reporting is mandatory in Vietnam, and master the key groups of data and intercompany transactions that need to be prepared for the Parent Company.

1. When a Company Must Prepare Consolidated Financial Statements

In accounting substance, consolidated financial statements are prepared when a company (Parent Company) holds control over one or more other companies (subsidiaries). Control is defined as the power to govern the financial and operating policies of the company in order to obtain economic benefits, usually associated with holding more than 50% of voting rights or having actual control rights under agreement.

Practical examples to avoid confusion:

• Case where consolidated financial statements are mandatory in Vietnam: Company A in Vietnam owns 80% of the capital contribution/shares in Company B (manufacturing) in Vietnam. Company A is required to prepare consolidated financial statements for the A-B group.

• Cases that are NOT subject to consolidation:

• Only associate investment: A company in Vietnam contributes only 30% of capital to another company and does not have control. The company only accounts for the investment using the equity method on its separate financial statements and does not prepare consolidated financial statements.

• Two companies under the same individual owner: Two independent legal entities established under the same individual’s name (Sister companies) that do not have a direct parent-subsidiary ownership relationship. Both companies only prepare separate financial statements.

• FDI company in Vietnam with no subsidiaries: A 100% FDI company in Vietnam has a parent company overseas, but the company itself in Vietnam does not own any other subsidiaries. In this case, the company in Vietnam only prepares separate financial statements under domestic regulations and prepares a Reporting Package to send to the Group; it does not prepare consolidated financial statements in Vietnam.

2. What Consolidated Financial Statements Require from a Vietnam Subsidiary

Technically, preparing consolidated financial statements is the process of combining the separate financial statements of the Parent Company and the subsidiaries, while eliminating all intercompany transactions and balances in order to present the entire group as a single economic entity.

For a subsidiary in Vietnam that does not own any other subsidiaries, the company only needs to prepare separate financial statements under Vietnamese Accounting Standards — VAS (applied under Circular 99/2025/TT-BTC), complete independent audit, and convert the data into the Reporting/Consolidation Package required by the Parent Company.

When a Vietnamese Company Must Prepare Consolidated Financial Statements

In cases where a company in Vietnam acts as the Parent Company (owning subsidiaries), the preparation of consolidated financial statements must strictly comply with VAS 25 and Circular 202/2014/TT-BTC (as amended and supplemented by Circular 43/2026/TT-BTC, applicable to financial years beginning on or after 01 January 2026).

A parent company in Vietnam is exempt from preparing consolidated financial statements when it simultaneously meets all of the conditions prescribed in Clause 2, Article 5 of Circular 202/2014/TT-BTC:

• It is not a public-interest entity.
• It is not state-owned.
• It is a subsidiary of another company and has obtained written consent from all shareholders/capital-contributing members not to prepare consolidated financial statements.
• Its equity instruments or debt instruments are not publicly traded on the market.
• Its parent company has already issued publicly available consolidated financial statements under accounting standards.

Legal note: Consolidated financial statements of FDI companies must be independently audited. The deadline for submitting consolidated financial statements is no later than 90 days from the end of the financial year (as prescribed in Article 6 of Circular 202/2014/TT-BTC and current amending documents).

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3. What the Parent Usually Asks For

When serving global consolidation work, the Parent Company overseas usually requires the Vietnam subsidiary to provide a financial data package that includes the following key components:

• Trial Balance: Mapped and standardized according to the Group’s Chart of Accounts.

• VAS financial statement set: The separate financial statement set that has been fully closed and independently audited in Vietnam.

• Reconciliation & Mapping schedule: A reconciliation of differences between VAS accounting policies and the accounting policies applied by the Group (usually IFRS or US GAAP standards).

• Related-party transaction schedule: A detailed list of all transactions arising with the Parent Company and sister companies within the same Group.

4. Intercompany Balances to Reconcile First

The review and reconciliation of intercompany balances (intercompany reconciliation) is a prerequisite condition that enables the Parent Company to perform elimination entries during consolidation. The Vietnam subsidiary needs to review and finalize figures with related parties for the following line items:

• Intercompany balances: Receivables (AR) and Payables (AP) with the Parent Company and companies within the same group.

• Capital and loan transactions: Intercompany loans, borrowings, and corresponding interest expense/income arising during the period.

• Revenue and cost of goods sold: Internal sales revenue, internal service revenue, and management fees paid to the Group.

• Unrealized gains/losses: Profits arising from internal sales of fixed assets or inventories that have not yet been sold to independent third parties.

• Dividends: Dividends declared payable or dividends received from subsidiaries/associates.

Technical requirement: The parties must agree on the foreign exchange conversion rate, issue Intercompany Confirmation letters, and ensure that corresponding balances match 100% so that they are fully eliminated to zero when elimination entries are made.

5. Other Data the Consolidation Pack Needs

In addition to basic accounting figures, the consolidation reporting package sent to the Parent Company also requires the following in-depth analytical data:

• Fixed assets: Detailed fixed asset register, depreciation method, and depreciation schedule for adjustment under group policies.

• Inventories: Detailed quantity and value of inventories purchased from internal companies that have not yet been sold to the market, together with calculation of Deferred Tax arising from the elimination of unrealized profits (under VAS 17 / IAS 12).

• Provisions: Detailed schedule of provisions for doubtful receivables, inventory write-downs, and warranty provisions already recognized.

• Key notes: Detailed explanation of the nature of line items with significant movements during the financial year.

6. When to Lock the Numbers

To ensure compliance with the Group’s global reporting timeline, the Vietnam subsidiary should follow a standardized four-step book-closing roadmap:

• Step 1: Complete the VAS accounting close and prepare the domestic Trial Balance.
• Step 2: Perform intercompany balance and transaction reconciliation with the Group’s accounting department.
• Step 3: Prepare and send the draft Reporting Package to the Parent Company’s Finance Department for review.
• Step 4: Only perform additional adjusting entries after receiving official confirmation from the Parent Company.

Note: The Group usually requires the Reporting Package to be submitted within 1 – 2 months after the end of the financial year, which is significantly earlier than the 90-day financial statement submission deadline in Vietnam.

7. How Vina TPT Prepares the Consolidation Pack

Vina TPT provides comprehensive advisory and support solutions for FDI companies in preparing consolidated reports and standardizing the Reporting Package:

• Data standardization: Directly prepare the Trial Balance, perform intercompany reconciliation, and accurately map the VAS chart of accounts to the Group’s Chart of Accounts.

• Bilingual explanatory reports: Prepare analysis schedules and explain in detail the differences between VAS standards and Group regulations in English/Japanese/Chinese.

• In-depth consolidated financial statement preparation: For companies in Vietnam that act as the Parent Company, Vina TPT provides a full consolidated financial statements preparation service that fully complies with Circular 202/2014/TT-BTC and Circular 43/2026/TT-BTC.

Conclusion

The process of preparing consolidated financial statements requires the Vietnam subsidiary to proactively close the VAS books on time, accurately reconcile all intercompany transactions, and convert standardized data according to the Parent Company’s requirements.

Please send the Parent Company’s Reporting Guideline so that Vina TPT’s specialist team can analyze and send you the data preparation checklist completely free of charge.

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