Legal Knowledge

Asset Stocktaking When Converting Ownership Form: Rules

Rate this article

1. Must an accounting unit converting its ownership form take stock of assets as prescribed?

Under Article 40 of the Law on Accounting 2015 (as amended and supplemented by Law No. 56/2024/QH15) on asset stocktaking:

(1) Asset stocktaking is the weighing, measuring and counting of quantities; confirming and assessing the quality and value of assets and capital sources existing at the time of stocktaking, to check and compare with figures in accounting books.

(2) An accounting unit must take stock of assets in the following cases:

– At the end of the annual accounting period;

– When the accounting unit is divided, separated, consolidated, merged, dissolved, terminates operations, goes bankrupt, or is sold or leased;

– When the accounting unit converts its type or ownership form;

– When fire, flood or other extraordinary damage occurs;

– When assets are revalued under decisions of competent state authorities;

– Other cases as prescribed by law.

(3) After taking stock of assets, the accounting unit must prepare a consolidated stocktaking report. Where there is a difference between actual stocktaking figures and figures recorded in accounting books, the accounting unit must determine the cause and reflect the difference and handling results in the accounting books before preparing financial statements.

(4) Stocktaking must truly reflect assets and sources of asset formation. The person preparing and signing the consolidated stocktaking report is responsible for the stocktaking results.

Accordingly, where an accounting unit converts its ownership form, it must take stock of assets as prescribed by law.

2. How are accounting documents preserved and archived?

Under Article 41 of the Law on Accounting 2015 (as amended and supplemented by Law No. 56/2024/QH15) on the preservation and archiving of accounting documents:

(1) Accounting documents must be fully and safely preserved by the accounting unit during use and archiving.

(2) Where accounting documents are temporarily seized or confiscated, there must be a record accompanied by photocopies of such documents; where accounting documents are lost or destroyed, there must be a record accompanied by photocopies or confirmations.

(3) Accounting documents must be archived within 12 months from the end of the annual accounting period or the completion of accounting work.

(4) The legal representative of the accounting unit is responsible for organizing the preservation and archiving of accounting documents.

(5) Accounting documents must be archived for the following periods:

– At least 05 years for accounting documents used for the accounting unit’s management and operation, including accounting vouchers not directly used for book entries and financial statements;

– At least 10 years for accounting vouchers directly used for book entries and financial statements, accounting books and annual financial statements, unless otherwise prescribed by law;

– Permanently for accounting documents of historical value or significant economic, security or national defense importance.

(6) The Government specifies in detail each type of accounting document to be archived, the archiving periods, the starting point for calculating archiving periods under Clause 5 of this Article, archiving places and procedures for destroying archived accounting documents.

3. How is accounting work regulated when converting ownership form?

Under Article 47 of the Law on Accounting 2015 (as amended and supplemented by Law No. 56/2024/QH15) on accounting work when converting type or ownership form:

“Article 47. Accounting work when converting type or ownership form

1. An accounting unit converting its type or ownership form must perform the following:

a) Close accounting books, take stock of assets, determine unpaid debts and prepare financial statements;

b) Hand over all assets and unpaid debts, prepare a handover record and make book entries according to the handover record;

c) Hand over all accounting documents to the post-conversion accounting unit.

2. The post-conversion accounting unit opens accounting books and makes book entries based on the handover record in accordance with this Law.”

Notes on applying current legal provisions

This article belongs to the General Knowledge group and is presented for reference, helping readers understand the legal issue at a general level before preparing dossiers or conducting transactions.

Legal provisions may change depending on time, locality, dossier type and specific circumstances. Where it is necessary to determine the exact legal basis applicable to your dossier, you should contact ANT Legal’s lawyers at 0966.475.966 for verification and advice before proceeding.

Common risks to note

  • Applying legal documents that have been amended, supplemented or replaced.
  • Preparing incomplete dossiers, documents or evidence.
  • Misunderstanding conditions, procedures, time limits or competent authority.
  • Signing, submitting dossiers or conducting transactions without fully assessing legal risks.

How can ANT Legal help?

ANT Legal assists with reviewing specific situations, checking dossiers, determining the applicable legal basis, advising on handling plans and representing clients before individuals, organizations or competent authorities when necessary.

For quick advice, you may contact our lawyers at 0966.475.966.

Related articles

ANT Legal