Materials below are only for reference
THE MINISTRY OF FINANCE No: 244/2009/TT-BTC | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness Ha Noi, day 31 month 12 year 2009 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CIRCULAR AMENDING AND SUPPLEMENTING THE ENTERPRISE ACCOUNTING REGIME THE MINISTRY OF FINANCE Pursuant to the June 17, 2003 Accounting Law; Chapter I GENERAL PROVISIONS Article 1. Scope of regulation This Circular guides accounting applicable to enterprises in all fields and of all economic sectors nationwide. Article 2. Accounting regime applicable to foreign contractors Foreign organizations and individuals conducting production and business on the basis of contracts, agreements or commitments with
Vietnamese organizations or individuals (referred to as foreign contractors) and having permanent establishments in Vietnam shall
implement accounting under the Accounting Law, the system of accounting standards and the enterprise accounting regime of Vietnam.
If they do not need to make any revision or supplementation, they are not required to register the applied accounting regime with
the Ministry of Finance and should only notify this to local tax agencies with which they have registered tax payment. Article 3. Submission of financial statements by enterprises in export processing zones, industrial parks and hi-tech parks Enterprises (both domestic and foreign - invested) based in export processing zones, industrial parks or hi-tech parks shall, in addition
to submitting annual financial statements to concerned agencies under the financial statement regime issued together with Decision
No. 15/2006/QD-BTC, submit annual financial statements to the management boards of export processing zones, industrial parks or hi-tech
parks as requested. Chapter II ACCOUNTING MONETARY UNIT Article 4. Accounting monetary unit "Accounting monetary unit" is Vietnam dong (having the national sign "" and international sign "VND"),
used for recording accounting books and making and presenting financial statements of enterprises. An accounting unit that collects
revenues and makes expenditures mainly in foreign currency may choose a foreign currency prescribed by the Ministry of Finance as
a monetary unit for recording accounting books and making and presenting financial statements. Article 5. Selection of accounting monetary units by enterprises and organizations with foreign capital 1. Enterprises and organizations with foreign capital (collectively referred to as enterprises) that collect revenues and make expenditures
mainly in foreign currency shall, in pursuance to the Accounting Law, consider and decide to select their accounting monetary units
and take responsibility for such decision before law. Once selecting an accounting monetary unit, enterprises shall notify it to
their managing tax agencies. 2. When selecting an accounting monetary unit, enterprises must meet all the following criteria: - Such monetary unit must be mainly used in their goods sale and service provision transactions, greatly affect the selling prices
of goods and services and normally be the one used in taking decisions on selling prices of goods; - Such monetary unit must be mainly used in their purchase of goods and services and normally be the one used for computing revenues
and labor costs and purchasing materials, goods and services. 3. An enterprise whose parent company is based overseas may only use the accounting monetary unit used by its parent company when
falling into any of the following cases: - It is established mainly for the purpose of producing and processing products for its parent company, with most of raw materials
bought from and products exported and sold by its parent company; - The proportion of its operations to its parent company's or that of its business transactions conducted in the accounting monetary
unit used by its parent company is material (over 70%). Article 6. Conversion of financial statements made in the accounting monetary unit being foreign currency into Vietnam dong for submission to
state management agencies 1 Enterprises and organizations with foreign capital established and operating in Vietnam and using foreign currency as accounting
monetary unit shall concurrently make financial statements in the accounting monetary unit (foreign currency) and convert these statements
into Vietnam dong for submission to state management agencies. 2. Principle for conversion of financial statements made in an accounting monetary unit being foreign currency into Vietnam dong All items in the financial statements of enterprises (including reported and comparison data) shall be converted at the inter-bank
average exchange rate on the final date of the accounting period. If such exchange rate is not available on the final dale of the
accounting period, the inter- bank average exchange rate of the dale preceding the final day of the accounting period may be
used. Article 7. Audit of financial statements in which an accounting monetary unit being foreign currency is used Financial statements in which an accounting monetary unit being foreign currency is used must be audited. Once converted into Vietnam
dong, these statements arc not required to be audited but only need to be certified by auditors of the exchange rate used in the
conversion and the preciseness of the conversion. Article 8. Change of accounting monetary units 1. When there are major changes in managerial and business operations resulting in the accounting monetary unit used in economic transactions
failing to satisfy the criteria specified in Clause 2, Article 5. Chapter II of this Circular, enterprises may change their accounting
monetary units. The change of a monetary unit for recording accounting books to another may be effected only at the beginning of
a new accounting year. Enterprises shall notify their managing tax agencies of this change within 10 working days after the final
day of the accounting year. 2. Exchange rate applicable to items in the balance sheet upon change of the accounting monetary unit: The items in the balance sheet shall be converted into the new accounting monetary unit at the inter-bank average exchange rate on
the date of change of the accounting monetary unit. 3. Presentation of comparison information upon change of the accounting monetary unit In the first accounting period following the change of the accounting monetary unit, enterprises shall make financial statements using
the new accounting monetary unit and re-present data on comparison information (the column "Figures at beginning of year"
in the balance sheet and the column "Previous year" in the report on business results and the cash flow report),
specifically: - The column "Figures at beginning of year" in the balance sheet shall be presented based on the balance sheet made at the
beginning of a fiscal year (time of change of the accounting monetary unit) by using the inter-bank average exchange rate on the
date of change of the accounting monetary unit. - The column "Previous year" in the report on business results and the cash flow report shall be presented based on the
report on business results and the cash flow report made at the beginning of a year by using the inter-bank average exchange rate
of the year preceding the year of change of the accounting monetary unit. Article 9. Notes to the financial statements When converting financial statements (made in a foreign currency) into Vietnam dong or when changing the accounting monetary unit,
enterprises shall clearly state in the notes to the financial statements the reason for such change and impacts (if any) on financial
statements exerted by the conversion of financial statements from a foreign currency into Vietnam dong or change of the accounting
monetary unit. Chapter III GUIDANCE ON THE IMPLEMENTATION OF THE ACCOUNTING REGIME BY FOREIGN CONTRACTORS Article 10. Principles of application of the accounting regime Foreign contracts shall: 1. Base themselves on the provisions of the Accounting Law. Vietnam's enterprise accounting regime and this Circular to organize accounting
for each contract (contracting license) as a basis for contract and tax finalization with the Vietnamese State. 2. When applying Vietnam's accounting regime, they may select to apply a chart of accounts, documents, accounting books and forms
of accounting books suitable to their operation characteristics and fully meeting their and the Vietnamese State's management requirements
(particularly tax administration requirements), specifically: - In case foreign contractors pay both value-added tax and enterprise income tax by the presumption method, they shall base themselves
on Vietnam's enterprise accounting regime to select and apply appropriately a chart of accounts, documents and forms of accounting
books to meet their management requirements. - In case foreign contractors pay value-added tax by the credit method and enterprise income tax by the method of revenues minus (-)
expenses or by the presumption method, they shall select and apply accounts reflecting assets, liabilities, capital sources, revenues
and expenses and determine relevant results according to the enterprise accounting regime in order to meet the Vietnamese Slate's
tax administration requirements and their own management requirements. 3. When wishing to make supplementation or modification (of contents mentioned in Article 11 below), foreign contractors shall register
these modified or supplemented contents (enclosed with detailed explanations) and may only realize them after obtaining written approval
of the Ministry of Finance. Within 15 (working) days after receiving complete dossiers, the Ministry of Finance shall issue written
replies to registering foreign contractors. Article 11. Modified and supplemented contents of the accounting regime to be registered with the Ministry of Finance 1. Modified contents and structure of compulsory accounting documents; 2. Supplementation or modification of level-I or level-II accounts in terms of name, code and content and method of accounting particular
economic transactions that arise: 3. Modification of items in financial statements or change of the structure and method of making financial statements. Article 12. Provisions on making and submission of financial statements and audit of financial statements Foreign contractors shall make balance sheets (according to a set form) and notes to the financial statements. Those that pay value-added
tax by the credit method and enterprise income tax by the method of revenues minus (-) expenses, shall also make reports on business
results. The State encourages foreign contractors to have their financial statements audited for tax purposes (excluding those declaring
and paying tax by the presumption method). Foreign contractors shall submit their financial statements to provincial-level Tax Departments,
agencies issuing contracting permits or operation licenses, and provincial-level Statistics Offices. Chapter IV GUIDANCE ON MODIFICATION AND SUPPLEMENTATION OF METHODS OF ACOUNTING SOME OTHER ECONOMIC OPERATIONS Article 13. Accounting of expenses for share issuance 1. For joint-stock companies transformed from enterprises with 100% state capital, expenses for share issuance shall be accounted
under Circular No. 106/2008/TT-BTC of November 18, 2008, of the Ministry of Finance. 2. For joint-stock companies issuing shares and recognizing expenses directly related to share issuance, record: Debit account 4112 - Equity surplus Credit accounts 111. 112... Article 14. Accounting of increase and decrease of investment capital of owners in join-stock companies 1. Accounting of increase of investment capital of owners 1.1. General provisions: - Increase of investment capital of owners (equity) additionally guided in this Circular includes additional issuance of shares to
the public without collection of money, such as additional issuance of shares from equity surplus, from the development investment
fund, from undistributed after-tax earnings (payment of dividends in shares) and from reward and welfare funds. - In all cases of additional issuance of shares without collection of money, joint-stock companies shall carry out all procedures
provided by law. Once an additional issuance of shares is adopted by the shareholders' general meeting and approved by competent
authorities, joint-stock companies shall record it in accounting books so as to adjust their equity under the approved plan. 1.2. Accounting of specific operations: - In case a joint-stock company is allowed to additionally issue shares from its equity surplus and implement accounting based on
related accounting records and documents, record: Debit account 4112 - Equity surplus Credit account 4111 - Investment capital of owners. - In case a joint-stock company is allowed to issue bonus shares from its development investment fund, record: Debit account 414 - Development investment fund Credit account 4111 - Investment capital of owners Credit account 4112 - Equity surplus (if any). - In case a joint-stock company is allowed to issue bonus shares from undistributed after-tax earnings (paying dividends in shares),
record: Debit account 421 - Undistributed after-tax earnings Credit account 4111 - Investment capital of owners; Credit account 4112 - Equity surplus (if any). - In case a joint-stock company is allowed to additionally issue shares from its reward fund to increase investment capital of owners,
record: Debit account 3531 - Reward fund Debit account 4112 - Equity surplus (difference between selling price lower than par value, if any) Credit account 4111 - Investment capital of owners Credit account 4112 - Equity surplus (difference between selling price higher than par value - if any). 2. Accounting of decrease of investment capital of owners In all cases of decrease of investment capital of owners, joint-stock companies shall carry out all procedures as provided by law.
Once adopted by the shareholders' general meeting and approved by competent authorities, joint-stock companies shall record it in
accounting books so as to adjust their equity under the approved plan. Cases of decrease of investment capital of owners (equity
capital), such as redemption and cancellation of fund shares; and cancellation of fund shares comply with Decision No. 15/2006/QD-13TC
of March 20, 2006, of the Minister of Finance. Article 15. Accounting in case investors receive shares from the increase of investment capital of owners by join-stock companies 1. When investors receive additional shares without having to pay any money since joint-stock companies use equity surplus, funds
of owners' capital and undistributed after-tax earnings (dividing dividends in shares) in order to increase investment capital of
owners, investors shall only monitor the increased quantity of shares on the notes to the financial statements without recognizing
the value of received shares, financial revenues and increase of the value of investments in joint-stock companies. 2. The provisions of Clause 1 of this Article apply from the financial year 2010 on. Article 16. Accounting of recognition of revenues from management charges To add account 5118- Other revenues. This account shall be used to reflect such revenues as management charges paid by subordinate units and revenues other than revenues
from sale of goods, sale of semi-finished products, provision of services, government grants and price subsidies, and revenues
from real estate investment dealings. Periodically, superior units shall recognize revenues from management charges paid by subordinates. Accountants shall record: Debit account 131 - Receivables from customers (management charges collected from subsidiaries) Debit account 136 - Internal receivables (management charges collected from member companies, subordinate units) Debit accounts 111. 112 (if cash is collected at once) Credit account 5118 - Other revenues Article 17. Accounting of unemployment insurance To add account 3389 - Unemployment insurance This account shall be used to reflect the situation of deduction and payment of unemployment insurance contributions for employees
in a unit under the unemployment insurance law. Enterprises shall open detailed accounting books to separately monitor and finalize
unemployment insurance. Structure and contents of account 3389 -Unemployment insurance Debit side: Unemployment insurance amounts already paid to the unemployment insurance fund-managing agency. Credit side: - Deduction of unemployment insurance contributions as production, business expenses - Deduct ion of unemployment insurance contributions from workers' and employees' salaries. Balance on the Credit side: Deducted unemployment insurance contributions not yet paid to the unemployment insurance fund-managing
agency. Method of accounting some major economic operations - Periodically deducting unemployment insurance contributions as production, business expenses, record: Debit accounts 622. 627, 641, 642... Credit account 338 - Other payables (3389). - Calculating unemployment insurance amounts subtracted from workers' and employees' wages, record: Debit account 334 - Payables to employees Credit account 338 - Other payables (3389). - When paying unemployment insurance contributions to the unemployment insurance fund-managing agency, record: Debit account 338 - Other payables (3389) Credit accounts 111, 112. Article 18. Accounting of reward and welfare funds 1. To change the code of account 431 - Reward and welfare funds - To change the code of account 431 - Reward and welfare funds into account 353 - Reward and welfare funds; - To change the code of account 4311 -Reward fund into account 3531 - Reward fund; - To change the code of account 4312 -Welfare fund into account 3532 - Welfare fund: - To change the code of account 4313 -Reward fund used for fixed assets acquisition into account 3533 - Reward fund used for fixed
assets acquisition. The structure, contents and method of accounting of account 353 - Reward and welfare funds are unchanged compared to account 431. 2. To add account 3534 - Reward fund for the company's management and executive board To move the content reflecting the reward fund for the company's management and executive board from account 418 - Other funds of
owners' capital to account 3534 - Reward fund for the company's management and executive board. The method of accounting the reward
fund for the company's management and executive board on account 3534 is similar to that stipulated for account 418. Article 19. Accounting of the scientific and technological development fund To add account 356 - Scientific and technological development fund This account shall be used to reflect the existing amount and situation of increase and decrease of the scientific and technological
development fund of an enterprise. This fund may be used only for scientific and technological investments in Vietnam. Accounting of this account should respect the following provisions: - The formation and use of this fund must comply with law. - This fund shall be accounted as enterprise management expenses to determine business results in a period. Annually, enterprises
shall determine by themselves their scientific and technological funds under law and make reports on the formation and use of these
funds, and declare the level and amount of money used for the formation in enterprise income tax finalization declarations. Such
report shall be submitted together with enterprise income tax finalization declarations. Structure and content of account 356 -Scientific and technological development fund: Debit side: - Expenses from the fund. - Decrease of the fund already used for fixed assets acquisition when calculating depreciation of fixed assets, residual value of
fixed assets upon sale, liquidation, expenses for liquidation fiom fixed assets acquired from this fund. - Decrease of the fund already used for fixed assets acquisition when fixed assets acquired from this fund are shifted to serve production,
business purposes. Credit side: - Deductions for forming I lie fund as enterprise management expenses. - Proceeds from the liquidation and sale of fixed asses acquired from the fund used for fixed assets acquisition. Credit side balance: The remaining scientific and technological development fund of the enterprise at the end of the reporting period Account 356 - Scientific and technological development fund, has two secondary accounts: Account 3561 - Scientific and technological development fund, reflecting the existing amount and situation of formation and use of
the fund: Account 3562 - Scientific and technological development fund used for fixed assets acquisition, reflecting the existing fund and the
situation of increase and decrease of the fund used for fixed assets acquisition (scientific and technological development fund already
used for fixed assets acquisition). Method of accounting some major economic operations - In a year, when making deductions to form the scientific and technological development fund, record: Debit account 642 - Enterprise management expenses Credit account 356 - Scientific and technological development fund. - When spending the fund for scientific and technological research and development objectives of the enterprise, record: Debit account 356 - Scientific and technological development fund. Debit account 133 - Creditable value-added tax (if any) Credit accounts 111, 112, 331... - When investing in and procuring fixed assets from the scientific and technological development fund used for scientific and technological
research and development purposes, record: Debit account 211. 213 (historical costs) Debit account 133 - Creditable value-added tax (if any) Credit accounts 111, 112, 331... Concurrently record: Debit account 3561 - Scientific and technological development fund Credit account 3562- Scientific and technological development fund used for fixed assets acquisition - At the end of an accounting period, calculate the depreciation of fixed assets invested in or formed with the scientific and technological
development fund used for scientific and technological research and development purposes, record: Debit account 3562 - Scientific and technological development fund used for fixed assets acquisition Credit account 214 - Depreciation of fixed assets. - When liquidating or selling fixed assets invested in and procured with the scientific and technological development fund. + Record the decrease of fixed assets liquidated and sold: Debit account 3562 - Scientific and technological development fund used for fixed assets acquisition (residual value) Debit account 214 - Depreciation of fixed assets (depreciated value) Credit accounts 211, 213. + Record the proceeds from the liquidation and sale of fixed assets: Debit accounts 111, 112 and 131 Credit account 3561 - Scientific and technological development fund Credit account 3331- Payable valued-added tax (33311). + Record expenses directly related to the liquidation and sale of fixed assets: Debit account 3561 - Scientific and technological development fund Debit account 133 - Creditable valued-added tax Credit accounts 111, 112, 331. - When fixed assets acquired from the scientific and technological development fund arc shifted to serve production and business upon
completion of the process of scientific and technological research and development, accountants shall record: Debit account 3562 - Scientific and technological development fund used for fixed assets acquisition (residual value of acquired fixed
assets not yet fully depreciated) Credit account 711 - Other incomes. From the time fixed assets are shifted to serve production and business, their depreciation shall be included in production and business
costs according to the current enterprise accounting regime. Article 20. Accounting of internally consumed products, goods and services Internally consumed products, goods and services are those produced or provided by a business establishment and used or consumed within
the establishment, excluding those used for continuing its production and business process. The determination of creditable value-added
tax, payable value-added tax and the declaration of value-added tax and enterprise income tax comply with tax laws. - If products, goods and services subject to payment of value-added tax by the credit method are used internally for the production
and trading of goods and the provision of services which are subject to payment of value-added tax by the credit method, when delivering
them for internal use, accountants shall reflect revenues from the sale of goods for internal use according to their production costs
or costs of goods sold, and record: Debit accounts 623, 627, 641, 642 (production costs or costs of goods sold) Credit account 512 - Revenues from internal sale of goods. Concurrently, accountants shall declare value added tax for products, goods and services already internally used, and record: Debit account 133 - Creditable value-added tax Credit account 3331 - Payable value-added tax (33311). - If products, goods and services subject to payment of value-added tax by the credit method are used internally for the production
and trading of goods and the provision of services which are not subject to value-added tax or are subject to payment of value-added
tax by the direct method, when delivering them for internal use, accountants shall reflect revenues from the sale of goods for internal
use according to their production costs or costs of goods sold, and record: Debit accounts 623, 627, 641, 642... (production costs or costs of goods plus (+) output value-added tax) Credit account 512 - Revenues from internal sale of goods (production costs or costs of goods) Credit account 3331 - Payable value-added tax (33311). Article 21. Additional guidance on the method of accounting differences resulting from the re-valuation of assets when parent companies contribute
non-monetary assets as capital to subsidiaries When a parent company contribute inventories or fixed assets as capital to a subsidiary (rather than payment upon enterprise acquisition
in business consolidation transactions), it shall recognize the difference between the book value (for inventories) or residual value
(for fixed assets) and the valuated value of contributed assets, which are re-valuated by the involved parties, as other incomes
or other expenses. The subsidiary, when receiving the assets contributed as capital by the parent company, shall record the increase
of investment capital of owners and received assets using the price agreed upon by the parties. - In case the book value (for inventories) or the residual value (for fixed assets) contributed as capital is smaller than the value
re-valuated by the parties, accountants shall reflect the difference resulting from the asset re-valuation as other incomes, and
record: Debit account 221 - Investment in subsidiaries Debit account 214 - Depreciation of fixed assets Credit accounts 211, 213, 217 (if fixed assets or invested real estate are contributed as capital) Credit accounts 152, 153, 155 and 156 (if inventories are contributed as capital) Credit account 711 - Other incomes (increase difference resulting from asset re-valuation). - In case the book value or the residual value of assets contributed as capital is larger than the value re-valuated by the parties,
accountants shall reflect the difference resulting from the asset revaluation into other expenses, and record: Debit account 221 - Investment in subsidiaries Debit account 214 - Depreciation of fixed assets Credit account 811 - Other expenses (decrease difference resulting from re-valuation) Credit accounts 211, 213, 217 (if fixed assets or invested real estate are contributed as capital) Credit accounts 152, 153, 155 and 156 (if inventories arc contributed as capital). Article 22. Guidance on modification and .supplementation of accounting methods for some transactions between joint-venture capital contributors
and jointly controlled business establishments To modify and supplement accounting methods when joint-venture capital contributors contribute non-monetary assets as capital to jointly
controlled business establishments or sell goods to these establishments as follows: 1. On separate financial statements of joint-venture capital contributors 1.1. In case joint-venture capital contributors contribute non-monetary assets as capital to jointly controlled business establishments When contributing non-monetary assets as capital (inventories, fixed assets...) to jointly controlled business establishments, contributors
shall recognize the whole difference between there-valuated value (agreed upon by the parties) larger than the book value of contributed
non-monetary assets as other incomes, and record: - In case the re-valuated value of inventories contributed as capital is larger than the book value, record: Debit account 222 - Contributed joint-venture capital (re-valuated value) Credit account 152, 153, 155, 156 and 611 (book value) Credit account 711 - Other incomes (difference between the re-valuated value larger than the book value of supplies and goods contributed
as capital). - In case the re-valuated value of fixed assets contributed as capital is larger than the book value: Debit account 222 - Contributed joint-venture capital (re-valuated value) Debit account 214 - Depreciation of fixed assets (depreciated value) Credit accounts 211, 213 and 217 (historical cost) Credit account 711 - Other incomes (difference between the re-valuated value larger than the book value of fixed assets contributed
as capital). In case the re-valuated value (agreed upon by the parties) of non-monetary assets contributed as joint-venture capital is smaller
than the book value, accountants shall comply with the provisions of the current enterprise accounting regime. 1.2. In case joint-venture capital contributors sell inventories and fixed assets to jointly controlled business establishments - Revenues, cost of goods sold, other incomes, other expenses arising from the sale by joint-venture capital contributors of inventories
and fixed assets to jointly controlled business establishments shall be accounted according to the current enterprise accounting
regime. - At the end of a period, accountants shall carry over all revenues and other incomes arising from the sale by joint-venture capital
contributors of inventories and fixed assets to jointly controlled business establishments (without deferring the benefit amount
corresponding to their ownership rate in jointly controlled business establishments), and record: Debit account 511- Revenues from the sale of goods and provision of services Debit account 711- Other incomes Credit account 911- Determination of business results. 2. On consolidated financial statements of joint-venture capital contributors 2.1. In case of contributing inventories as capital to or sell inventories to jointly controlled business establishments a/ Recognize unrealized revenues corresponding to earnings of the joint-venture capital contributors arising from the transaction
of contributing inventories as capital or selling inventories in a period. At the end of the period, when making consolidated financial statements, joint-venture capital contributors shall base themselves
on the value of inventories contributed as capital or sold (at a profit) to jointly controlled business establishments in the period
but the latter have not yet sold these goods to independent third parties, joint-venture capital contributors shall reflect the deferment
and recognize as unrealized revenues the earnings from the contribution as capital or sale of inventories corresponding to their
benefit amount in the joint ventures. Adjustment entries shall be made on the summary table of adjusted items as follows: - In case of contributing inventories as capital at a profit: Debit Other revenues (deferred earnings from the contribution of inventories as capital corresponding to the benefit amount in the
joint venture) Credit Unrealized revenues. - In case of selling inventories at a profit: Debit Revenues from the sale of goods and provision of services (deferred earnings from the sale of inventories corresponding to the
benefit amount in the joint venture) Credit Unrealized revenues. b/ When jointly controlled business establishments sell inventories (contributed as capital or sold by joint-venture capital contributors)
to third parties in the subsequent period: - Recognize unrealized revenues at the beginning of the period: On the basis of unrealized earnings related to inventories not yet
sold by the jointly controlled business establishment to a third party at the end of the previous period, accountants shall recognize
as unrealized revenue the deferred earnings corresponding to the benefit amount in the joint venture at the beginning of the period: Debit Undistributed after-tax earnings (unrealized earnings at the beginning of the period) Credit Unrealized revenues. - Recognize earnings realized in the period: On the basis of inventories already sold by the jointly controlled business establishment
to a third party in the period, accountants shall carry over the unrealized revenues to revenues from the sale of goods and provision
of services or other incomes for determining business results in the period: Debit Unrealized revenues Credit Revenues from the sale of goods and provision of services (for sale of inventories) Credit Other revenues (for inventories contributed as capital). c/ Adjusting impacts of deferred enterprise income tax: - Recognize the deferred tax asset as a result of recognizing unrealized revenues arising from the transaction of contributing inventories
as capital or selling inventories to the jointly controlled business establishment in the period: At the end of an accounting period, when making consolidated financial statements, accountants shall base themselves on unrealized
revenues recognized in the period to recognize the deferred tax asset arising in the period: Debit Deferred enterprise income tax asset Credit Deferred enterprise income tax expense. - Recognize the deferred income tax asset as a result of recognizing unrealized revenues at the beginning of the period: On the basis
of unrealized revenues at the beginning of the period, accountants shall recognize the deferred tax asset at the beginning of the
period: Debit Deferred income tax asset Credit Undistributed after-tax earnings. - Return of the deferred tax asset as a result of the carry-over of unrealized revenues arising in the period in the reports on business
results: On the basis of unrealized revenues carried over to revenues from the sale of goods and provision of services or other incomes
when the jointly controlled business establishment sells goods to a third party in the period, accountants shall return the deferred
tax asset corresponding to the unrealized revenues changed to realized ones in the period: Debit Deferred enterprise income tax expense Credit Deferred income tax asset. 2.2. In case of contributing fixed assets as capital or selling fixed assets to jointly controlled business establishments a/ Recognizing unrealized revenues corresponding to the earnings of joint-venture capital contributors from the transaction of contributing
fixed assets as capital or selling fixed assets in a period At the end of the period, when making consolidated financial statements, joint-venture capital contributors shall base themselves
on the unrealized earnings arising from the transaction of contributing fixed assets as capital or selling them (at a profit) to
jointly controlled business establishments in the period and the duration of fixed asset depreciation applied by the jointly controlled
business establishments. They shall reflect the deferment and recognize as unrealized revenues the earnings from the contribution
as capital or sale of fixed assets corresponding to their earnings in the joint ventures. Adjustment entries shall be made on the
summary table of adjusted items as follows: Debit Other incomes (deferred earnings from the contribution of fixed assets as capital corresponding to the benefit amount in the
joint venture) Credit Unrealized revenues. b/ When jointly controlled business establishments depreciate fixed assets contributed as capital by or bought from joint-venture
capital contributors in the subsequent period: - Recognize unrealized revenues at the beginning of a period: On the basis of the unrealized earnings related to fixed assets which
the jointly controlled business establishment has received as capital contribution or bought in the previous period, accountants
shall recognize as unrealized revenues the deferred earnings corresponding to the benefit amount in the joint venture at the beginning
of the period. Debit Undistributed after-tax earnings (unrealized earnings at the beginning of the period) Credit Unrealized revenues. - Recognize earnings already realized in a period: On the basis of the period of fixed asset depreciation applied by jointly controlled
business establishments, accountants shall gradually allocate unrealized revenues into other incomes for determining business results
in the period: Debit Unrealized revenues Credit Other incomes. c/ Adjusting impacts of deferred enterprise income tax: - Recognize the deferred tax asset as a result of recognizing unrealized revenues arising from the transaction of contributing fixed
assets as capital or selling fixed assets to the jointly controlled business establishment in the period: At the end of an accounting period, when making consolidated financial statements, accountants shall base themselves on unrealized
revenues recognized in the period to recognize the deferred tax asset arising in the period: Debit Deferred enterprise income lax asset Credit Deferred enterprise income tax expense. - Recognize the deferred income lax asset as a result of recognizing unrealized revenues at the beginning of the subsequent period:
()n the basis of unrealized revenues at the beginning of the period, accountants shall recognize the deferred tax asset at the beginning
of the period: Debit Deferred income tax asset Credit Undistributed after-tax earnings. - Return of the deferred tax asset as a result of the allocation of unrealized revenues arising in the period in the reports on business
results: On the basis of unrealized revenues allocated to other incomes when the jointly controlled business establishment depreciates
the fixed assets in the period, accountants shall return the deferred lax asset corresponding to the unrealized revenues changed
to realized ones in the period: Debit Deferred enterprise income tax expense Credit Deferred income tax asset. Article 23. Guidance on supplementation of accounting methods for the re-valuation of assets and conversion of the balance on accounting books,
presentation of financial statements upon transformation of enterprise ownership 1. Cases of transformation of enterprises with 100% stale capital into joint-stock companies Enterprises shall practice accounting under Circular No. 106/2008/TT-BTC of November 18, 2008, of the Ministry of Finance guiding
accounting work upon transformation of enterprises with 100%' state capital into joint-stock companies. 2. Cases of transformation into other forms of enterprise ownership 2.1. Accounting of re-valuation of assets In case enterprises are allowed to re-valuate their value al the time of transformation under law. accountants shall recognize differences
resulting from the re-valuation as other incomes or other expenses, recording: - For increases from the re-valuation of assets, record: Debit related accounts Credit account 711 - Other incomes - For decreases from the re-valuation of assets, record: Debit account 811 - Other expenses Credit related accounts. Incomes liable to enterprise income tax and reasonable expenses for deducting enterprise income tax shall be determined under the
enterprise income tax law. 2.2. Conversion of the balance on accounting books and presentation of financial statements When transforming their form of ownership, enterprises shall close accounting books and make financial statements under law. In the
first accounting period after transformation, enterprises shall record accounting books and present financial statements on the following
principles: - For accounting books reflecting assets, liabilities and owners' capital: All the balances of assets, liabilities and owner capital
on accounting books of the old enterprise shall be recognized as arising figures on accounting books of the new enterprise. The line
for recording the balance at beginning of period on accounting books of the new enterprise has no data. - For balance sheets: All the balances of assets, liabilities and owners' capital taken over from the old enterprise before transformation
shall be recognized as newly arising figures of the new enterprises and presented in the column "Year-end figures." The
column "Figures at beginning of year" has no data. - For reports on business results: To present only data from the time of transformation to the end of the first reporting period in
the column "Current year." The column "Previous year" has no data. - For reports on cash How: To present only data from the time of transformation to the end of the first reporting period in the column
"Current year." The column "Previous year" has no data. Article 24. Modification of the second pan-System of financial statements of the enterprise accounting regime promulgated together with Decision
No. 15/200C/QD-BTC of March 20, 2006, of the Minister of Finance 1. Modifying and supplementing some items in the balance sheet - To change the code of the item "Reward and welfare funds"- code 431 in the balance sheet into code 323 in the balance
sheet. Data to be recorded in this item arc the Credit balance on account 353- Reward and welfare funds" in the ledger or ledger
log. - To add the item "Unrealized revenues" -code 338 in the balance sheet. This item reflects revenues unrealized at the time
of reporting. Data to be recorded in this item are the Credit balance in account 3387- Unrealized revenues, in the detailed accounting
book of account 3387. - To change the item "Pre-payment by buyers"- code 313 in the balance sheet. This item reflects total sums of money prepaid
by buyers for assets, goods, invested real estate and services at the time of reporting. This item does not reflect unrealized revenues
(including revenues received in advance). Data to be recorded in this item are the Credit balance on account 131- Receivables from
customers, opened for each customer in the detailed accounting book of account 131. - To add the item "Scientific and technological development fund"- Code 339 in the balance sheet. This item reflects the
scientific and technological development fund not yet used at the reporting time. Data to be recorded in this item are the Credit
balance on account 356-Scientific and technological development fund, in the accounting book of account 356. - To add the item "Enterprise reorganization support fund" - Code 422 in the balance sheet. This item reflects the enterprise
reorganization support fund not yet used at the reporting time. Data to be recorded in this item are the Credit balance on account
417- Enterprise reorganization support fund, in the accounting book of account 417. 2. Modifying and supplementing notes to the financial statements 2.1. When using foreign currency for recording accounting books, making and presenting financial statements, an enterprise shall convert
its financial statements into Vietnam dong under the guidance in Chapter II of this Circular. When explaining financial statements,
for items with figures at beginning of year, arising in the year and at year end. if there are exchange rate differences resulting
in the figures at beginning of year (converted at the exchange rate at the beginning of period) added (or subtracted) by figures
arising in the year (converted at the exchange rate on the date of transaction) compatible with year-end figures (converted at the
period-end exchange rate), additional information should be given on these exchange rate differences directly related to the explained
item. 2.2. Modifying and supplementing Point 2 "Short-term financial investments"- Section V-Notes to the financial statement,
as follows:
2.3. Modifying and supplementing Point 13 "Other long-term investments"- Section V- Notes to the financial statement to
elaborate on item 250 on the balance sheet as follows:
Chapter V ORGANIZATION OF IMPLEMENTATION Article 25. This Circular takes effect 45 days from the date of its signing. Other relevant accounting matters not guided in this Circular comply
with the enterprise accounting regime promulgated together with Decision No. 15/2006/QD-BTC of March 20, 2006, of the Minister of
Finance. The accounting regime of construction and installation units promulgated together with Decision No. 1864/1998/QD-BTC of
December 120, 1998, of the Ministry of Finance; provisions on accounting applicable to enterprises and organizations with foreign
capital in Circulars No. 55/2002/TT-BTC of June 26, 2002, and No. 122/2004/TT-BTC of December 22, 2004, are no longer valid. Article 26. Corporations and companies applying extraordinary accounting regimes promulgated under separate circulars or approved by the Ministry
of Finance shall guide and revise these regimes in compliance with this Circular. Article 27. Ministries and branches and People's Committees. Finance Departments and Tax Departments of provinces and centrally run cities shall guide enterprises in implementing this Circular. Any problems arising in the course of implementation should be reported to the Ministry of Finance for study and settlement. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||