Some positive changes in the administrative accounting regime towards the approach of international public accounting standards

Abstract

The new administrative accounting system, issued under the Circular No 107/2017/TT-BTC dated 10/10/2017 of the Minister of Finance (Circular 107), takes effect from 01/01/2018, replacing the administrative accounting system issued under Decision No 19/2006/QD-BTC dated 30/03/2006 of the Minister of Finance (Decision 19) and Circular No 185/2010/TT-BTC dated 15/11/2010 (Circular 185) amending and supplementing a number of contents of Decision 19. After more than 2 years of implementation, the new administrative accounting system shows the outstanding advantages of detail, transparency, science and approach to international public accounting standards. The initial results have been effective in compatibility and meeting the requirements of financial mechanism renovation according to Decree No 16/2015/ ND-CP, in accordance with the provisions of the laws promulgated in 2015 (Law Accounting 2015, Budget Law 2015 ...). The content of changes in administrative accounting system under Circular 107 has inherited the advantages and overcome limitations of administrative accounting system issued under Decision 19 and Circular 185 and satisfies the requirements of the integration trend in the field of public accounting in Vietnam, perfecting and gradually approaching international public accounting standards. In the context of the article, the content focuses on analyzing a number of positive changes of the administrative accounting system issued under Circular 107 and also has directional suggestions with the expectation of the administrative accounting system of Vietnam is getting better and closer to international public accounting standards following the current integration trend.