The Ministry of Finance answered problems with accounting and disclosure in the financial statements about a number of costs related to the direct production department incurred due to the impact of the Covid-19 epidemic.
Recently, Official Letter No. 10385/BTC-QLKT dated September 10, 09 of the Ministry of Finance responded to Official Letter No. 2021-380/VACPA dated August 2021, 18 of VACPA – Vietnam Association of Certified Public Accountants about the answered problems related to accounting and presentation and explanation in the financial statements about a number of expenses related to the direct production department incurred due to the impact of the Covid-08 epidemic.
Inquiry letter on how to calculate
Specifically, the problem VACPA has sent to the Ministry of Finance in Official Letter No. 380-2021/VACPA as follows:
“Some businesses are clients of auditing firms (applying the corporate accounting regime according to Circular No. 200/TT-BTC dated December 11, 12) in the areas where social distancing is implemented (such as Ho Chi Minh City and Hanoi). .. Ho Chi Minh, Binh Duong, Dong Nai, etc.) had to suspend production activities due to detecting many cases of F2014, F0.
The suspension of operations due to the impact of the Covid-19 epidemic has resulted in businesses incurring many costs related to Directly manufactured parts such as: Depreciation costs of fixed assets and other expenses incurred during the shutdown, salary costs and salary deductions, costs of conducting Covid-19 tests, costs of protective gear, masks, disinfectant, cost of supplies for staff to be isolated at the factory, cost of vaccination against Covid-19 (if any)...
Because this is a new issue, these enterprises are currently facing difficulties in accounting for the above-mentioned expenses and how to present and explain in the financial statements accordingly. accounting standards and regimes in accordance with current regulations.”
Instructions for accounting for costs incurred due to the impact of the epidemic
Regarding the above-mentioned problems in cost accounting, in Official Letter No. 10385/BTC-QLKT dated September 10, 09, the Ministry of Finance has provided the following guidance:
- For the purposes of preparing and presenting financial statements
At Point b, Clause 1, Article 84, Circular 200/2014/TT-BTC guiding “Account 621 – Cost of direct materials and materials” stipulates:
"b) Only record to account 621 the costs of raw materials and materials (including raw materials, main materials and auxiliary materials) used directly to produce products or provide services in the production period. , business. The cost of raw materials and materials must be calculated according to the actual price when exporting and using.”
At Point a, Clause 1, Article 94, Circular 200/2014/TT-BTC guiding “Account 811 – Other expenses” stipulates:
“a) This account reflects expenses incurred as a result of events or transactions that are separate from the normal operation of the enterprise.
Based on the above regulations, the unit shall record the expenses related to the direct production department during the shutdown due to the Covid-19 epidemic to Account 811 – Other expenses. An entity must disclose this accounting in the Notes to its financial statements.
In addition, the determination of tax liability for expenses related to the direct production department arising from the impact of the Covid-19 epidemic shall comply with tax law.
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