{"id":999980141,"date":"2026-03-06T09:12:06","date_gmt":"2026-03-06T02:12:06","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999980141"},"modified":"2026-06-03T23:31:28","modified_gmt":"2026-06-03T16:31:28","slug":"year-end-exchange-rate-differential-assessment","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/","title":{"rendered":"Guidelines for assessing year-end exchange rate differences according to Circular 200."},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Job <\/span><b>year-end exchange rate differential assessment<\/b><span style=\"font-weight: 400;\"> This is not just a purely accounting practice, but also directly affects the integrity of financial statements and corporate income tax risks. Discrepancies in determining closing exchange rates or classifying currency items can distort P&amp;L ratios, impacting board decision-making. This article provides... <\/span><b>Guidelines for assessing year-end exchange rate differences<\/b><span style=\"font-weight: 400;\"> In-depth training based on Circular 200, integrating risk management thinking and modern Record-to-Report (R2R) process automation solutions.<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#Ban_chat_cua_viec_danh_gia_chenh_lech_ty_gia_hoi_doai_cuoi_ky\" >The nature of evaluating end-of-period exchange rate differences.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#Cac_khoan_muc_tien_te_bat_buoc_danh_gia_lai_ty_gia_cuoi_nam\" >Monetary items that require year-end exchange rate revaluation.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#Ty_gia_giao_dich_thuc_te_dung_de_danh_gia_lai_so_du_ngoai_te\" >The actual exchange rate used to revalue foreign currency balances.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#Hach_toan_lai_lo_chenh_lech_ty_gia_danh_gia_lai_cuoi_nam\" >Accounting for year-end exchange rate gains and losses from revaluation.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#Phan_biet_chenh_lech_ty_gia_trong_ke_toan_va_quyet_toan_thue\" >Distinguishing between exchange rate differences in accounting and tax settlement.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#FAQ_%E2%80%93_Giai_dap_thac_mac_ve_chenh_lech_ty_gia_hoi_doai\" >FAQ \u2013 Frequently Asked Questions about Exchange Rate Differences<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#1_Co_duoc_bu_tru_lai_va_lo_chenh_lech_ty_gia_khi_danh_gia_lai_khong\" >1. Is it possible to offset gains and losses due to exchange rate differences during revaluation?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#2_Ty_gia_mua_hay_ban_duoc_dung_cho_khoan_phai_thu\" >2. Which exchange rate, the buying or selling rate, is used for accounts receivable?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#3_Khoan_dat_coc_bang_ngoai_te_co_phai_danh_gia_lai_khong\" >3. Do deposits denominated in foreign currency need to be revalued?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#4_Danh_gia_lai_ty_gia_hang_thang_co_bat_buoc_khong\" >4. Is a monthly reassessment of the exchange rate mandatory?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#5_Lo_ty_gia_danh_gia_lai_co_duoc_chia_co_tuc_khong\" >5. Are exchange rate losses from revaluation eligible for dividend distribution?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#6_Lam_sao_de_lay_ty_gia_tu_dong_cho_500_cong_ty_con\" >6. How can I automatically get exchange rates for 500 subsidiary companies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#7_Chung_tu_can_thiet_khi_danh_gia_lai_ty_gia_la_gi\" >7. What documents are needed when re-evaluating exchange rates?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/year-end-exchange-rate-differential-assessment\/#Ket_luan_Tu_nghiep_vu_ke_toan_den_quan_tri_rui_ro_ty_gia_chu_dong\" >Conclusion: From accounting practices to proactive exchange rate risk management<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Ban_chat_cua_viec_danh_gia_chenh_lech_ty_gia_hoi_doai_cuoi_ky\"><\/span><b>The nature of evaluating end-of-period exchange rate differences.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to Circular 200\/2014\/TT-BTC, <\/span><b>Assessing end-of-period exchange rate differences<\/b><span style=\"font-weight: 400;\"> This is the process of updating the value of monetary items denominated in foreign currencies according to the actual exchange rate on the date of the financial statement. The goal is to accurately reflect the value of assets and liabilities as of December 31st, thereby determining... <\/span><b>Year-end revaluation exchange rate difference<\/b><span style=\"font-weight: 400;\"> or unrealized losses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">CFOs need to distinguish between two core concepts:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Realized exchange rate differences: arise upon payment or <a href=\"https:\/\/bizzi.vn\/thu-hoi-cong-no-la-gi-quy-trinh-thu-hoi-cong-no-hieu-qua-cho-doanh-nghiep\/\">debt collection<\/a> during the period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unrealized exchange rate differences: arise when <\/span><b>year-end exchange rate differential assessment<\/b><span style=\"font-weight: 400;\"> for the remaining balance.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If not done correctly <\/span><b>How to assess exchange rate differences at the end of the period<\/b><span style=\"font-weight: 400;\">Furthermore, the financial statements would violate the principle of fair and true representation. More importantly, EBITDA and EPS could be distorted, misrepresenting the company&#039;s valuation in the eyes of investors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From a management perspective, exchange rate fluctuations are a market risk. A year-end review helps CFOs measure the actual level of FX exposure still visible on the balance sheet.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cac_khoan_muc_tien_te_bat_buoc_danh_gia_lai_ty_gia_cuoi_nam\"><\/span><b>Monetary items that require year-end exchange rate revaluation.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to Circular 200, businesses only need to implement <\/span><b>year-end exchange rate differential assessment<\/b><span style=\"font-weight: 400;\"> This applies to monetary items only, not non-monetary items.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Popular accounts that need to be reassessed include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">1112 \u2013 Foreign currency cash<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">1122 \u2013 Foreign currency bank deposits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">131 \u2013 Accounts receivable in foreign currency<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">331 \u2013 Amounts payable to foreign currency suppliers<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">A point of confusion is the use of &quot;prepayments to the seller&quot; or &quot;prepayments from the buyer.&quot; If this is a guarantee for contract performance and not a purely monetary payment, then it does not fall under this category. <\/span><b>Assessing end-of-period exchange rate differences<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Below is a quick reference table for settlement purposes:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Account<\/b><\/td>\n<td><b>Item type<\/b><\/td>\n<td><b>Is there a review?<\/b><\/td>\n<td><b>Applicable exchange rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1112<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Cash<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Have<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buying rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1122<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Deposits<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Have<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buying rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">131<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Accounts Receivable<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Have<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Buying rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">331<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Payable<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Have<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Selling rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">152\/156<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Inventory<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Are not<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not applicable<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">211<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Fixed assets<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Are not<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Not applicable<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">In practice, reviewing foreign currency balances is often time-consuming if a company has many subsidiaries. When using Bizzi ARM\/AP, foreign currency accounts payable data is categorized from the outset, streamlining the process. <\/span><b>year-end exchange rate differential assessment<\/b><span style=\"font-weight: 400;\"> Reduce manual processing volume by 80\u201390%.<\/span><\/p>\n<figure id=\"attachment_999980142\" aria-describedby=\"caption-attachment-999980142\" style=\"width: 624px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-999980142 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam-1.jpg\" alt=\"year-end-exchange-rate-difference-assessment 3\" width=\"624\" height=\"211\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam-1.jpg 624w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam-1-300x101.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam-1-18x6.jpg 18w\" sizes=\"(max-width: 624px) 100vw, 624px\" \/><figcaption id=\"caption-attachment-999980142\" class=\"wp-caption-text\">Monetary items that require year-end exchange rate revaluation.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Ty_gia_giao_dich_thuc_te_dung_de_danh_gia_lai_so_du_ngoai_te\"><\/span><b>The actual exchange rate used to revalue foreign currency balances.<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">According to Circular 200, the exchange rate used to assess year-end exchange rate differences is the buying or selling rate of the commercial bank where the enterprise regularly conducts transactions on December 31st.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Applicable principles:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Assets (Debit) \u2192 use the buying rate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Credit \u2192 use the selling exchange rate<\/span><\/li>\n<\/ul>\n<p><b>Calculation formula: Revaluation value = Original currency balance x Exchange rate on December 31st<\/b><\/p>\n<p><span style=\"font-weight: 400;\">A common risk is using the State Bank&#039;s &quot;central exchange rate&quot; instead of the actual buying\/selling rate of the transacting bank. This can lead auditors to require a complete readjustment of the end-of-period exchange rate difference valuation entries.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bizzi Bot automatically collects the closing exchange rate on December 31st from the business bank, saves electronic evidence (Audit Trail), and synchronizes the data. <a href=\"https:\/\/bizzi.vn\/top-phan-mem-erp-ke-toan\/\">ERP software<\/a>This is especially important when a business has hundreds of subsidiary units.<\/span><\/p>\n<p><strong><em>See more content about <a href=\"https:\/\/bizzi.vn\/mau-quy-che-tai-chinh-doanh-nghiep\/\">Principles for determining exchange rates<\/a><\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Hach_toan_lai_lo_chenh_lech_ty_gia_danh_gia_lai_cuoi_nam\"><\/span><strong>Accounting for year-end exchange rate gains and losses from revaluation.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The year-end exchange rate difference assessment is carried out through account 413 \u2013 Exchange Rate Differences.<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\">Formula for determining the difference: <\/span><span style=\"font-weight: 400;\">FX Difference=Balance\u00d7(Closing Rate\u2212Book Rate)<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\">Examples of exchange rate differences:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company still owes $100,000.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Book exchange rate: 23,500<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exchange rate on December 31st: 24,000<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Difference: 100,000 \u00d7 (24,000 \u2013 23,500) = 50,000,000 VND<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This is an unrealized exchange rate loss and is recorded in account 413. At the end of the year, the profit\/loss balance will be transferred to account 515 or 635.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A key point for CFOs to note: year-end exchange rate gains from revaluation do not generate actual cash flow but still affect after-tax profit. On the Cash Flow Statement (indirect method), this amount must be adjusted when determining cash flow from operating activities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/bizzi.vn\/epm-la-gi\/\">EPM<\/a> Performance management solutions can automate year-end closing entries and separate realized and unrealized profit\/loss on the management dashboard.<\/span><\/p>\n<figure id=\"attachment_999980143\" aria-describedby=\"caption-attachment-999980143\" style=\"width: 940px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999980143 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam-2.jpg\" alt=\"year-end-exchange-rate-difference-assessment 3\" width=\"940\" height=\"528\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam-2.jpg 940w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam-2-300x169.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam-2-768x431.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam-2-18x10.jpg 18w\" sizes=\"(max-width: 940px) 100vw, 940px\" \/><figcaption id=\"caption-attachment-999980143\" class=\"wp-caption-text\">A key point for CFOs to note is that year-end exchange rate gains from revaluation do not generate actual cash flow but still affect after-tax profit.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Phan_biet_chenh_lech_ty_gia_trong_ke_toan_va_quyet_toan_thue\"><\/span><strong>Distinguishing between exchange rate differences in accounting and tax settlement.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The major difference between accounting and taxation lies in how unrealized gains and losses are handled.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to corporate income tax regulations:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exchange rate losses from the revaluation of liabilities are deductible expenses.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exchange rate gains from the revaluation of cash and receivables are not included in taxable income.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This creates a temporary difference and gives rise to deferred income tax. If the CFO fails to reconcile accounting profit and taxable income, the business may:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Overpayment of taxes due to failure to exclude unrealized interest.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Subject to retroactive tax collection due to incorrect recording of deductible losses.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"FAQ_%E2%80%93_Giai_dap_thac_mac_ve_chenh_lech_ty_gia_hoi_doai\"><\/span><b>FAQ \u2013 Frequently Asked Questions about Exchange Rate Differences<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The section below expands on common real-world scenarios that arise when <\/span><b>year-end exchange rate differential assessment<\/b><span style=\"font-weight: 400;\"> and analysis from the CFO&#039;s perspective \u2013 where the focus is not only on accurate accounting but also on managing tax risks, cash flow, and consolidated reporting.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Co_duoc_bu_tru_lai_va_lo_chenh_lech_ty_gia_khi_danh_gia_lai_khong\"><\/span><b>1. Is it possible to offset gains and losses due to exchange rate differences during revaluation?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Yes. According to Circular 200, when implementing <\/span><b>Assessing end-of-period exchange rate differences<\/b><span style=\"font-weight: 400;\">Businesses record profits\/losses in account 4131 \u2013 Exchange rate differences from year-end revaluation. At the time of preparing the annual financial statements, accountants offset the debit and credit balances of account 4131 before transferring them to account 515 (financial revenue) or 635 (financial expenses).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, CFOs need to be aware of two layers of control:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">Firstly, the offsetting is only carried out within a certain scope. <\/span><b>unrealized difference<\/b><span style=\"font-weight: 400;\"> Amounts arising from the year-end revaluation cannot be offset against differences realized during the period.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Secondly, although accounting offsets apply, unrealized profits may need to be excluded during corporate income tax settlement. Without separate tracking, businesses can easily make mistakes when preparing the B4 adjustment appendix.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In terms of management, the CFO should require the R2R system to automatically separate realized and unrealized profit\/loss instead of manually compiling them in Excel \u2013 this is a common mistake many businesses make. <\/span><b>Guidelines for assessing year-end exchange rate differences<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Ty_gia_mua_hay_ban_duoc_dung_cho_khoan_phai_thu\"><\/span><b>2. Which exchange rate, the buying or selling rate, is used for accounts receivable?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Accounts receivable are assets, so the following should be applied. <\/span><b>buying rate<\/b><span style=\"font-weight: 400;\"> of the commercial bank where the business regularly conducts transactions as of December 31st. <\/span><span style=\"font-weight: 400;\">The accounting logic is as follows: when a business has the right to receive foreign currency, if it converts it to VND, it will sell that foreign currency to the bank. Therefore, using the buying exchange rate is consistent with the principle of prudence.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A common mistake is that accountants use the wrong selling exchange rate for all items. The consequence is that assets are recorded at higher prices than they actually are, creating an artificial increase in profits. <\/span><b>year-end exchange rate differential assessment<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For corporations with multiple banks involved in transactions, the CFO needs to implement a policy to select a single, unified reference bank to avoid audit risks related to consistency.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Khoan_dat_coc_bang_ngoai_te_co_phai_danh_gia_lai_khong\"><\/span><b>3. Do deposits denominated in foreign currency need to be revalued?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The answer depends on the nature of the item. <\/span><span style=\"font-weight: 400;\">If the deposit is intended to secure the performance of a contract and will be deducted from the value of the property or goods in the future, this is <\/span><b>non-monetary items<\/b><span style=\"font-weight: 400;\">According to Circular 200, this is not implemented. <\/span><b>Assessing end-of-period exchange rate differences<\/b><span style=\"font-weight: 400;\"> for this item.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Conversely, if the deposit is actually a recoverable deposit or escrow in a specific foreign currency, it is a monetary item and must be revalued.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In practice, misclassifying the nature of a deposit during a tax audit is a common mistake. CFOs should require accountants to retain the original contract and payment terms to prove the nature of the deposit when audited by the tax authorities.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Danh_gia_lai_ty_gia_hang_thang_co_bat_buoc_khong\"><\/span><b>4. Is a monthly reassessment of the exchange rate mandatory?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Not mandatory under Vietnamese accounting regulations. Businesses are only required to comply. <\/span><b>year-end exchange rate differential assessment<\/b><span style=\"font-weight: 400;\"> when preparing the annual financial statements.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, for businesses with significant foreign currency debt or USD loans, the CFO should take proactive steps. <\/span><b>Assessing end-of-period exchange rate differences<\/b><span style=\"font-weight: 400;\"> on a monthly or quarterly basis to control profit fluctuations and bank covenants. <\/span><span style=\"font-weight: 400;\">In particular, if EBITDA and EPS are strongly affected by exchange rate fluctuations, regular monitoring helps management make more accurate forecasts instead of being &quot;shocked&quot; at the end of the year.<\/span><\/p>\n<figure id=\"attachment_999980145\" aria-describedby=\"caption-attachment-999980145\" style=\"width: 660px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999980145 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam.jpg\" alt=\"year-end-exchange-rate-difference-assessment 3\" width=\"660\" height=\"404\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam.jpg 660w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam-300x184.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2026\/03\/danh-gia-chenh-lech-ty-gia-cuoi-nam-18x12.jpg 18w\" sizes=\"(max-width: 660px) 100vw, 660px\" \/><figcaption id=\"caption-attachment-999980145\" class=\"wp-caption-text\">A common mistake is that accountants use the wrong selling exchange rate for all items.<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"5_Lo_ty_gia_danh_gia_lai_co_duoc_chia_co_tuc_khong\"><\/span><b>5. Are exchange rate losses from revaluation eligible for dividend distribution?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">No. Magnetic hole <\/span><b>Year-end revaluation exchange rate difference<\/b><span style=\"font-weight: 400;\"> or unrealized losses reduce undistributed after-tax profits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Enterprise Law, only realized profits, after allocating sufficient funds, can be distributed as dividends. Distributing dividends based on profits that already include unrealized profits carries the risk of violating the law.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is why CFOs need to clearly analyze the \u201cquality of earnings\u201d\u2014that is, whether profits come from operating activities or from exchange rate fluctuations.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_Lam_sao_de_lay_ty_gia_tu_dong_cho_500_cong_ty_con\"><\/span><b>6. How can I automatically get exchange rates for 500 subsidiary companies?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">For a conglomerate, manually collecting exchange rates poses a significant internal control risk.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The solution is to use an EPM or RPA system to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Automatically retrieve closing exchange rates from the bank&#039;s website.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Retain audit trail evidence.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Synchronize with SAP\/Oracle ERP<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Normalize data for consolidated reports.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">As a result, the process <\/span><b>How to assess exchange rate differences at the end of the period<\/b><span style=\"font-weight: 400;\"> This is implemented consistently across the system, significantly reducing the risk of discrepancies when consolidating financial statements.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"7_Chung_tu_can_thiet_khi_danh_gia_lai_ty_gia_la_gi\"><\/span><b>7. What documents are needed when re-evaluating exchange rates?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">To ensure legal compliance during implementation. <\/span><b>year-end exchange rate differential assessment<\/b><span style=\"font-weight: 400;\">Businesses need to be fully prepared:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First, a detailed statement of the original currency balance for each account (1112, 1122, 131, 331\u2026).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Secondly, the bank&#039;s exchange rate announcement as of December 31st (printed from the website with the access date).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Third, the accounting voucher records the revaluation and transfer entries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fourth, a reconciliation statement between accounting profit and taxable income if there is a difference requiring adjustment.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">CFOs should standardize this checklist in the R2R process to ensure that each accounting period has sufficient supporting documentation for tax audits or inspections.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan_Tu_nghiep_vu_ke_toan_den_quan_tri_rui_ro_ty_gia_chu_dong\"><\/span><b>Conclusion: From accounting practices to proactive exchange rate risk management<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><b>Year-end exchange rate differential assessment<\/b><span style=\"font-weight: 400;\"> It&#039;s not just a closing procedure, but a tool for measuring exchange rate risk and protecting the integrity of financial reporting. Proper implementation is crucial. <\/span><b>How to assess exchange rate differences at the end of the period<\/b><span style=\"font-weight: 400;\"> According to Circular 200, this helps businesses:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accurately reflect the value of the asset and \u00a0\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Avoid misrepresenting earnings and EPS.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Minimize corporate income tax risks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Increase transparency before audits.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">However, for businesses with numerous foreign exchange transactions, manual processing is almost no longer suitable. Integrating automated R2R, exchange rate collection, debt classification, and journal entry transfer through the Bizzi ecosystem helps CFOs shift from &quot;passive recording&quot; to &quot;active exchange rate risk management.&quot;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In an environment of increasingly volatile exchange rates, technology is no longer an option\u2014it&#039;s a necessity\u2014for securing sustainable profits.<\/span><\/p>\n<p><em><strong>To receive personalized advice and try out Bizzi&#039;s features, book an appointment here: <a href=\"https:\/\/bizzi.vn\/dang-ky-dung-thu\/\">https:\/\/bizzi.vn\/dang-ky-dung-thu\/<\/a><\/strong><\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>Evaluating year-end exchange rate differences is not just a purely accounting task; it also directly affects\u2026<\/p>","protected":false},"author":56,"featured_media":999980144,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[54],"tags":[],"class_list":["post-999980141","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-so-tay-ke-toan"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999980141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999980141"}],"version-history":[{"count":1,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999980141\/revisions"}],"predecessor-version":[{"id":999980146,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999980141\/revisions\/999980146"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999980144"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999980141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999980141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999980141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}