24/05/2015 11:06 GMT+7 Email Print Like 0

Minister stresses the need to revise Accounting Law

Hanoi, May 23 (VNA) - Reporting to the 13th National Assembly on May 22, Finance Minister Dinh Tien Dung stressed the need to revise the Accounting Law to build a complete legal framework that would hold relevant bodies responsible for abiding by international regulations and standards of accounting.

"It is essential to increase the quality of our accounting practices, satisfying requirements for socio-economic development in the context of a state-managed market economy, and for national integration into the world," Dung told NA deputies on the third sitting day of the ninth session.

"The revision and supplementation of the law will facilitate the management and supervision of the State, business community, investors and the people."

A general assessment of the law's progress since it took effect on January 1, 2004, shows that the law has developed into a highly enumerated piece of legislation, bearing quite a few highly technical and practical guidelines.

"The Law provides a fundamental legal framework for accounting activities, contributing to and enhancing management efficiency and effectiveness of financial resources," said Chairman of the NA's Finance and Budget Committee, Phung Quoc Hien, who presented a report examining the amendment proposals for the current accounting law.

Despite its success, Hien's report highlighted numerous shortcomings that need remedying. Accounting regulations remain incomplete and financial management and accounting regimes have not worked in tandem.

The report indicates that the country's rapidly changing business environment, the opening of the market and international integration require that finance and accounting mechanisms and policies be quickly adjusted.

Hien recommended that the proposed changes include articles specifying the process of making State financial reports, detailing the value of State accounting information and spelling out the proper use of State accounting information.

NA deputies will discuss the amendments to the Accounting Law on May 29 and June 10. If approved, the amended law would take effect on July 1, 2016.