Information shall be considered material in cases where the insufficiency

Information shall be considered material in cases where the insufficiency

accounting-services-in-vietnam2or inaccuracy of such information may distort significantly the financial statements, thus affecting the economic decisions of the users of the financial statements.

Materiality depends on the amount and nature of information or errors assessed in particular circumstances. The materiality of information must be examined both quantitatively and qualitatively.

Basic Requirements For Accounting

Honesty

10. Accounting information and data must be recorded and reported on the basis of adequate and objective evidences and true to the actual situation, content, nature and values of arising economic operations.

Objectivity

11. Accounting information and data must be recorded and reported according to reality, not be distorted nor falsified.

Fullness

accounting-services-in-vietnam112. All arising economic and financial operations related to the accounting period must be recorded and reported in full, not be omitted.

Timeliness

13. Accounting information and data must be recorded and reported in time, according to or ahead of prescribed schedule, without delay.

Understandability

14. Accounting information and data presented in the financial statements must be explicit and easily understandable to users. Users mean people with average knowledge about business, economics, finance and accounting. Information on complicated matters in the financial statements must be expounded in the explanation part.

Comparability

15. Accounting information and data of different accounting periods of an enterprise and of different enterprises may be comparable only when they are calculated and presented in an uniform way. In case of lack of uniformity, expositions must be given in the explanation part so that the users of the financial statements may compare information of different accounting periods, different enterprises, or between execution information and projected or planned information.

16. The accounting requirements mentioned in paragraphs 10, 11, 12, 13, 14 and 15 above must be satisfied simultaneously. For example: The honesty requirement also embraces the objectivity, timeliness, fullness, understandability and comparability requirements.