2.2 The Accounting Legal Framework for Vietnamese SMEs
Vietnamese accounting system is influenced by continental European system in general and French accounting in particular. InVietnam, the Ministry of Finance (a state agency) is an organization responsible for issuing legal documents in accounting. The legal framework regulating the accounting practices of SMEs include: Accounting Law and guiding the implementation of Decree Law; The system of accounting standards and the standards guidelines; and accounting regime. Vietnamese SMEs are required to comply with these domestic GAAP developed by the national regulator. However, the proportion of businesses fully complied in practice is rather low. The Vietnamese GAAP are based on historical cost criterion and fair value is only used in a few cases.