Accounting regime for small and medium enterprises according to Circular 133/2016 / TT-BTC

CIRCULARS

INSTRUCTIONS ON ACCOUNTING MODE OF SMALL AND MEDIUM ENTERPRISES

Pursuant to the Accounting Law No. 88 / 2015 / QH13 dated 20 tháng 11 năm 2015;

Pursuant to the Decree No. 215 / 2013 / ND-CP dated 13 / 12 / 2013 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Accounting and Auditing Regime Department,

The Minister of Finance promulgates a Circular guiding the accounting regime for small and medium enterprises.

Chapter I

GENERAL RULES

Article 1. Scope

This Circular guides the principles of bookkeeping, preparation and presentation of financial statements of small and medium-sized enterprises, not applicable to the determination of tax obligations of enterprises to the State budget.

Article 2. Subject of application

1. This Circular applies to small and medium-sized enterprises (including micro-enterprises) in all fields and all economic sectors in accordance with the law on support for small and medium-sized enterprises, except for small and medium enterprises. State-owned enterprises, enterprises in which more than 50% of charter capital is owned by the State, public companies in accordance with the law on securities, cooperatives and unions of cooperatives as prescribed in the Law on Cooperatives. .

2. Small and medium-sized enterprises in specific fields such as electricity, oil and gas, insurance, securities, etc. have been promulgated or approved by the Ministry of Finance to apply specific accounting regimes.

Article 3. General principles

1. Small and medium-sized enterprises can choose to apply the corporate accounting regime promulgated in accordance with Circular No. 200/2014/TT-BTC dated December 22, 12 of the Ministry of Finance and amendments and supplements. supplement or replace, but must be notified to the tax authority managing the business and must be done consistently in the fiscal year. In case of conversion back to applying the accounting regime for small and medium-sized enterprises according to this Circular, it must be done from the beginning of the fiscal year and must be reported back to the tax office.

2. Small and medium-sized enterprises shall base themselves on accounting principles, contents and structure of accounting accounts specified in this Circular to reflect and account arising economic transactions in accordance with their characteristics. operations and management requirements of the unit.

3. In case the enterprise has changes in the fiscal year that lead to it being no longer subject to the provisions of Article 2 of this Circular, this Circular shall be applied until the end of the current fiscal year and must be applied. using the accounting regime in accordance with the provisions of law from the next financial year.

Article 4. Application of accounting standards

Small and medium enterprises shall comply with the accounting regime promulgated in accordance with this Circular and relevant Vietnamese Accounting Standards, except for the following Vietnamese Accounting Standards:

Article 5. Currency in accounting

“Accounting currency” is Vietnam Dong (the national symbol is “đ”; the international symbol is “VND”) used to record the accounting books, prepare and present the financial statements of the enterprise. Karma. In case the accounting unit mainly collects and spends in foreign currencies, and meets the criteria specified in Article 6 of this Circular, it may choose a foreign currency as the currency unit for recording in accounting books.

Article 6. Selection of currency in accounting

1. Enterprises whose main activities of revenue and expenditure are in foreign currencies shall, based on the provisions of the Law on Accounting, consider and decide on the selection of a currency unit in accounting and take responsibility for such decision before the law. the law. When choosing a currency in accounting, the enterprise must notify the tax authority directly managing it.

2. Currency in accounting is the monetary unit:

a) Mainly used in sales transactions, providing services of the unit, having a great influence on the selling price of goods and providing services, usually the currency used to list prices. sell and get paid; and

b) Used mainly in the purchase of goods and services, which greatly affects the cost of labor, raw materials and other production and business costs, usually the currency used to pay for those costs.

3. The following factors are also considered and provide proof of currency in the entity's accounting:

a) The currency used to mobilize financial resources (such as issuing stocks and bonds);

b) A currency that is regularly obtained from business activities and stored.

4. Currency in accounting reflects transactions, events and conditions related to the unit's operations. Once the accounting currency is determined, the unit must not be changed unless there is a material change in those transactions, events and conditions.

Article 7. Conversion of financial statements to Vietnam Dong

1. Enterprises using a currency other than Vietnam Dong as their accounting currency, the legal financial statements for publication to the public and submission to the competent authorities in Vietnam are the Financial Statements. The financial statements are presented in Vietnam Dong. In case an enterprise is required to have its financial statements audited, the financial statements submitted to the State management agency and disclosed to the public must be audited.

2. The conversion of financial statements into Vietnam Dong shall comply with the provisions of Article 78 of this Circular.

3. When converting financial statements to Vietnam Dong, enterprises must clearly disclose in the Notes to the Financial Statements the effects (if any) on the Financial Statements resulting from the conversion of the Financial Statements to the Financial Statements. Vietnamese Dong.

Article 8. Change in accounting currency

When there is a major change in management and business activities resulting in the accounting currency used in economic transactions no longer satisfying the criteria in Clauses 2 and 3, Article 6 of this Circular, the Business can change the currency in accounting. A change from one accounting currency to another is made only at the beginning of the new accounting period.

Enterprises must notify the tax authority directly managing the change of currency in accounting no later than 10 working days from the date of changing the currency unit.

Article 9. Rights and responsibilities of enterprises for the organization of accounting at dependent accounting units without legal status (referred to as dependent accounting units)

1. Enterprises are responsible for organizing the accounting apparatus and accounting decentralization in dependent accounting units in accordance with their operation characteristics and management requirements and not contrary to the provisions of law.

2. The enterprise that decides on the accounting at the dependent accounting unit shall organize its own accounting apparatus for:

a) The recognition of business capital granted by the enterprise: The enterprise shall decide the dependent accounting unit to record it as a liability or equity;

b) For transactions of buying, selling, transferring internal products, goods and services, the recognition of revenue and cost at each dependent accounting unit shall be decided by the enterprise, regardless of form of accounting vouchers (invoices or internal circulation vouchers).

In case the rotation of products, goods and services between internal stages essentially creates added value in products, goods and services, the enterprise should record revenue and cost of goods at different locations. dependent accounting unit.

c) The accounting decentralization at the dependent accounting unit: Depending on the model of centralized or distributed accounting organization, the enterprise may assign the dependent accounting unit to reflect the undistributed profit after tax. or only reflect revenue and expenses.

Article 10. Registration for amendments to the accounting regime

1. For the accounting account system

a) In case an enterprise needs to add a level 1, level 2 account or modify a level 1 or level 2 account in terms of names, symbols, contents and accounting methods for specific arising economic operations, the written approval of the Ministry of Finance prior to implementation.

b) Enterprises can open more level 2 accounts and level 3 accounts for those accounts that do not have the regulations on level 2 accounts, level 3 accounts in the list of prescribed corporate accounting accounts. in Appendix 1 issued together with this Circular to serve the management requirements of enterprises without having to ask the Ministry of Finance for approval.

2. For Financial Statements

a) Small and medium-sized enterprises shall base themselves on the forms and contents of the financial statements in Appendix 2 issued with this Circular to detail the (available) criteria of the financial reporting system. in accordance with the characteristics of production, business and management requirements of each unit.

b) In case the enterprise needs to add new or amend the form, the names and contents of items of the financial statements must be approved in writing by the Ministry of Finance before implementation.

3. For vouchers and accounting books

a) The accounting vouchers are of the manual type (optional), the enterprise is allowed to design the accounting voucher form by itself in accordance with the operation characteristics and management requirements of the unit but must ensure the following contents. main content and must ensure to provide information in accordance with the provisions of the Law on Accounting and guiding documents of the Law on Accounting.

b) All forms of accounting books (including Ledgers and Diary books) are in the manual type (optional). Enterprises must comply with the provisions of the Law on Accounting and guiding documents of the Law on Accounting. Enterprises may design their own forms of accounting books and cards in accordance with operational characteristics and management requirements, but must ensure that information is presented fully, clearly, easily for inspection and control.

Chapter II

ACCOUNTING ACCOUNTS

Article 11. Principles of money accounting

1. Accountants must open accounting books to record daily continuously in the order of receipts, expenditures, import and export of all kinds of money and calculate the balance of funds and each account at the Bank at all times. for ease of checking and comparison.

2. Money deposited by organizations and individuals at the enterprise shall be managed and accounted as the enterprise's money.

3. When collecting and paying cash, there must be receipts and payment slips and full signatures in accordance with regulations on accounting vouchers. When accounting for bank deposits, there must be a Debit note, a Credit note or a bank statement.

4. Accountants must keep track of money in original currency. When transactions in foreign currencies arise, accountants must convert foreign currencies into the accounting currency (accounting currency) according to the following principles:

– The Debiter of money accounts applies the actual exchange rate;

– The Holder of the money accounts is selected to apply the weighted average book-to-date rate or the actual transaction rate.

The determination of the weighted average bookkeeping exchange rate and the actual exchange rate shall comply with the provisions of Article 52 of this Circular.

5. In case the enterprise uses the actual exchange rate to account the creditor of the cash accounts, the exchange rate difference arising in the period is recognized simultaneously at the time of payment or periodically. depending on the characteristics of business operations and management requirements of the enterprise. At the same time, if at the end of the accounting period:

- If the cash accounts have no balance in original currency, the enterprise must transfer all exchange rate differences arising in the period into financial income or financial expenses of the reporting period.

– Cash accounts with balances in original currency must be re-evaluated according to the provisions of Article 52 of this Circular.

6. At the time of preparation of financial statements in accordance with law, enterprises must re-evaluate foreign currency balances according to the average transfer rate at the end of the period of the commercial bank where the enterprise regularly conducts transactions.

The determination of the average transfer rate and handling of exchange rate differences due to re-evaluation of cash accounts in foreign currencies shall comply with the provisions of Article 52 of this Circular.

Article 12. Account 111 – Cash

1. Accounting principles

a) This account is used to record the income, expenditure and cash balance in the enterprise's fund, including: Vietnamese currency, foreign currency. Only reflected in Account 111 “Cash” the amount of Vietnam currency, foreign currency actually imported, exported, and in stock.

b) When entering and exiting the cash fund, there must be a receipt, a payment slip and full signatures of the recipient, the deliverer, the person authorized to allow the entry and exit of the fund, etc. in accordance with the regulations on accounting documents. . In some special cases, a fund entry and exit order must be attached.

c) The cash fund accountant must be responsible for opening the cash fund accounting book, recording daily continuously according to the order in which the receipts, expenditures, cash in and out, and calculate the balance of the fund at every time.

d) The cashier is responsible for managing and entering and exiting the cash fund. Every day, the cashier must inventory the actual cash balance, compare the cash book data and the cash accounting book. If there is a difference, the accountant and the treasurer must check again to determine the cause and recommend measures to handle the difference.

2. Structure and contents of Account 111 – Cash

Debtor:

– The amount of money in Vietnam, foreign currency into the fund;

- Excess amount of Vietnamese currency or foreign currency in the fund discovered during inventory;

- Exchange rate difference due to revaluation of cash balance in foreign currency at the reporting time (in case the foreign currency rate increases compared to the recorded rate).

Yes Party:

– Amounts of money in Vietnam and foreign currencies released to the fund;

- Amount of money in Vietnam, foreign currency shortage detected during inventory;

– Exchange rate difference due to revaluation of cash balance in foreign currency at the reporting time (in case the foreign currency rate decreases compared to the recorded rate).

Debit side balance:

Cash balances in Vietnam and foreign currencies at the reporting time.

Account 111 – Cash, has 2 tier 2 accounts:

– Account 1111 – Vietnamese currency: Reflecting the situation of revenue, expenditure and inventory of Vietnamese money in the cash fund.

– Account 1112 – Foreign currency: Reflecting revenue, expenditure, exchange rate difference and foreign currency balance in cash fund according to the value converted into currency recorded in accounting books.

Article 13. Account 112 – Bank deposits

1. Accounting principles

a) This account is used to record the current amount and the increase or decrease in demand deposits at the enterprise's bank. The basis for accounting on Account 112 – Bank deposits are Credit notes, Debit notes or bank statements enclosed with original documents (payment authorization, collection authorization, transfer check, security check). spend,…).

b) When receiving the documents sent by the bank, the accountant must check and compare with the original documents attached. If there is a discrepancy between the data on the enterprise's accounting books, the data in the original voucher and the data on the bank's voucher, the enterprise must notify the bank for the same comparison, verification and handling. timely. At the end of the month, if the reason for the difference cannot be determined, the accountant will record according to the bank's data on the Debit note, Credit note or statement. The difference (if any) is recorded to the debit side of Account 138 “Other receivables” (1381) (if the accounting figures are larger than the bank's data) or to the credit side of Account 338 "Other payables and payables". ” (3381) (if the accountant's data is smaller than the bank's). Next month, continue to check, compare and determine the cause to adjust the book data.

c) To organize detailed accounting of the deposit amount according to each account at each bank to facilitate checking and comparison.

d) A bank overdraft is not recorded on a bank deposit account but is reflected similarly to a bank loan.

2. Structure and contents of Account 112 – Bank deposits

Debtor:

– The amount of money in Vietnam, foreign currency deposited in the bank;

– Exchange rate difference due to revaluation of bank deposit balance in foreign currency at the reporting time (in case the foreign currency rate increases compared to the recorded rate).

Yes Party:

– The amount of money in Vietnam, foreign currency withdrawn from the bank;

- Exchange rate difference due to revaluation of bank deposit balance in foreign currency at the reporting time (in case the foreign currency exchange rate decreases compared to the recorded exchange rate).

Debit side balance:

The amount of money in Vietnam, foreign currency currently deposited at the bank at the time of reporting.

Account 112 – Bank deposit, has 2 tier 2 accounts:

– Account 1121 – Vietnamese currency: Reflects the amount deposited, withdrawn and currently deposited at the bank in Vietnam Dong.

– Account 1122 – Foreign currency: Reflects the amount of money deposited, withdrawn and currently deposited at the bank in foreign currencies of all kinds converted into the accounting currency.

Article 14. Account 121 – Trading securities

1. Accounting principles

a) This account is used to record the purchase, sale and payment of securities in accordance with the law, held for trading purposes (including securities with a maturity of more than 12 months of purchase, sold for profit). Trading securities include:

- Stocks and bonds listed on the stock market;

– Securities and other financial instruments.

This account does not reflect investments held to maturity, such as: Loans under escrow between two parties, bank deposits, bonds, commercial papers, bills, promissory notes, etc. to the due date.

b) Trading securities must be recorded in the accounting books at their historical cost, including: Purchase price plus (+) purchase costs (if any) such as brokerage, transaction, information provision, taxes, and fees. bank fees and charges. The original price of trading securities is determined according to the fair value of the payments at the time the transaction occurs. The time to recognize trading securities is the time when investors have ownership rights, specifically as follows:

– Listed securities are recorded at the time of order matching (T+0);

– Unlisted securities are recognized at the time of official ownership in accordance with the law.

c) At the end of the accounting year, if the market value of trading securities is lower than the original price, an allowance is made for a decrease in the value of trading securities.

d) Enterprises must fully and promptly record incomes from trading securities investment activities. In case of receiving investment interest including accumulated investment profit before repurchasing such investment, this profit must be allocated. Only recognized as financial income is the profit portion of the periods after the enterprise buys this investment. Interest accrued before the enterprise repurchases the investment is recorded as a decrease in the value of the investment itself.

When investors receive additional shares without having to pay due to the use of shareholding companies, equity funds and undistributed after-tax profit (share dividends) To issue additional shares, investors only track the number of additional shares on the notes to the financial statements, do not recognize the value of received shares, do not recognize revenue from financial activities and do not recognize. increase the value of your investment in a joint stock company.

dd) In all cases of stock swap, the value of shares must be determined according to the fair value at the date of exchange. The difference (if any) between the fair value of the shares received and the carrying amount of the shares exchanged is accounted for as financial income (if profit) or financial expense (if any). hole). The fair value of shares is determined as follows:

– For shares of a listed company, the fair value of the shares is the closing price listed on the stock market at the date of exchange. In case the stock market is not traded at the date of exchange, the fair value of shares is the closing price of the previous trading session adjacent to the date of exchange.

– For unlisted shares traded on UPCOM, the fair value of shares is the closing trading price on UPCOM at the exchange date. In case the UPCOM exchange is not traded on the exchange date, the fair value of the shares is the closing price of the previous trading session adjacent to the exchange date.

– For other unlisted shares, the fair value of the shares is the price agreed upon by the parties under the contract or the book value at the time of exchange.

e) The accountant must open a detailed book to monitor in detail each code, each type of trading securities that the enterprise is holding (for each type of securities; for each object, par value, actual purchase price, each type of securities). type of currency used for investment, etc.).

g) When liquidating, transferring and selling trading securities (calculated according to each type of securities), the cost of trading securities is determined according to the weighted average method or first-in, first-out method. Selling expenses of securities are recorded in financial expenses in the period. Profit or loss upon liquidation or sale of trading securities is recorded in financial income or financial expenses in the reporting period.

h) At the end of the accounting year, the enterprise must re-evaluate all trading securities which are monetary items of foreign currency origin at the average closing exchange rate of the commercial bank where the enterprise regularly has money. transaction. The determination of the average transfer rate and handling of exchange rate differences due to the re-evaluation of trading securities that are monetary items denominated in foreign currencies shall comply with the provisions of Article 52 of this Circular.

2. Structure and contents of Account 121 – Trading securities

Debtor: Value of trading securities purchased.

Yes Party: Book value of trading securities when sold.

Debit side balance: Value of trading securities at the reporting time.

Article 15. Account 128 – Held-to-maturity investment

1. Accounting principles

a) This account is used to record the current amount and the increase and decrease of investments held to maturity (other than trading securities) such as: term deposits with banks. term (including bonds, bills, promissory notes), held-to-maturity loans for the purpose of earning periodic interest, and other held-to-maturity investments.

This account does not reflect debt instruments held for the purpose of trading for profit (reflected in Account 121 – Trading securities).

b) Investments held to maturity must be recorded in the accounting books at cost, including: Purchase price plus (+) purchase costs (if any) such as brokerage, transaction, and information provision costs. information, taxes, fees and bank charges.

c) The accountant must open a detailed book to monitor each investment held to maturity according to each term, each object, each type of currency, each quantity... When preparing financial statements, accountants shall base themselves remaining maturities (less than 12 months or 12 months or more from the reporting date) to present as short-term or long-term assets.

d) The enterprise must fully and promptly record revenue from financial activities arising from investments such as interest on deposits, interest on loans, profits and losses upon liquidation or sale of held investments. date due…

dd) Enterprises must fully and promptly record incomes from investment activities held to maturity. In case of receiving investment interest including accumulated investment profit before repurchasing such investment, this profit must be allocated. Only recognized as financial income is the profit portion of the periods after the enterprise buys this investment. Interest accrued before the enterprise repurchases the investment is recorded as a decrease in the value of the investment itself.

e) For hold-to-maturity investments other than loans, accountants must assess the recoverability. Where there is solid evidence that part or all of the investment may not be recovered, the accountant must record the loss in financial expenses in the period. Where the amount of loss cannot be reliably determined, the investment may not be recorded as a reduction but must disclose in the financial statements the recoverability of the investment.

g) At the time of preparing the financial statements, accountants must re-evaluate all held-to-maturity investments that are classified as monetary items denominated in foreign currencies at the average transfer rate at the end of the year. period of the bank where the business regularly conducts transactions.

The determination of the average transfer rate and handling of exchange rate differences due to re-evaluation of monetary items denominated in foreign currencies shall comply with the provisions of Article 52 of this Circular.

2. Structure and contents of Account 128 – Held-to-maturity investments

Debtor:

The value of investments held to maturity increases.

Yes Party:

The value of investments held to maturity decreases.

Debit side balance:

Value of held-to-maturity investments available at the reporting time.

Account 128 – Hold-to-maturity investment has 2 tier 2 accounts:

– Account 1281 – Term deposit: Reflects the increase, decrease and the available amount of time deposit.

– Account 1288 – Other investments held to maturity: Reflects the increase, decrease and the available amount of other investments held to maturity such as preferred shares that the seller must repurchase at a certain time in the future, commercial paper, bonds and held-to-maturity loans.

Article 16. Principles of accounting for receivables

1. Receivables are tracked in detail according to the receivable period, receivable object, type of receivable currency and other factors according to the management needs of the enterprise.

2. The classification of receivables as receivables from customers, internal receivables and other receivables is done according to the following principles:

a) Receivables from customers include trade receivables arising from purchase and sale transactions, such as: Receivables from sales, service provision, liquidation or sale of assets ( Fixed assets, investment real estate, financial investments) between the enterprise and the buyer (an entity independent of the seller, including units in which the enterprise invests capital). This receivable includes the receivables from export sales of the entrusting party with customers through the entrusting party;

b) Internal receivables include receivables between superior units and subordinate units without legal status, dependent accounting (hereinafter referred to as dependent accounting units).

c) Other receivables include receivables of non-commercial nature, unrelated to purchase and sale transactions, such as:

– Receivables that generate revenue from financial activities, such as: receivables from loan interests, deposits, dividends and distributed profits;

– Payments on behalf of third parties are entitled to receive back; Amounts that the entrusting party must collect on behalf of the entrusting party;

– Non-commercial receivables such as loans of non-monetary assets, receivables from fines, compensation, pending assets…

3. When preparing financial statements, accountants base on the remaining term of receivables to classify as long-term or short-term. Receivables items of the Financial Statement also include amounts recorded in accounts other than accounts receivable, such as: Loans are recorded in Account 1288; Deposits and deposits are recorded in Account 1386, advances are recorded in Account 141… The determination of provisions for doubtful receivables is based on items classified as short-term receivables. , long-term financial position statement.

4. For receivables in foreign currencies, enterprises must monitor in detail the receivables according to each type of original currency, each debtor and follow the following principles:

– When receivable debts arise (Debit side of accounts receivable), accountants must convert them into the currency of accounting books according to the actual exchange rate at the time of arising.

Particularly in case of receiving money in advance from the buyer in foreign currency, when the conditions for revenue and income recognition are met, the Debiter of Account 131 corresponding to the amount received in advance is recorded at the actual book exchange rate named at advance payment time.

– When collecting receivables (the party with the Accounts Receivable), the enterprise may choose the weighted average bookkeeping rate of the receivables for each debtor or the actual transaction rate at debt collection time.

Particularly in case of advance receipt from the buyer, the party with Account 131 shall apply the actual exchange rate at the time of receiving the advance.

5. In case the enterprise uses the actual exchange rate to account the creditor's accounts receivable, the exchange rate difference arising in the period is recognized immediately at the time of transaction or recognition. periodically depending on the characteristics of production and business activities and management requirements of the enterprise. At the same time, if at the end of the accounting period:

- If the accounts receivable have no balance in original currency, the enterprise must transfer all foreign exchange differences arising in the period into financial income or financial expenses of the reporting period.

- Receivable accounts with balance in original currency must be re-evaluated according to the provisions of Article 52 of this Circular.

6. At the time of preparation of the financial statements, the enterprise must re-evaluate the receivables which are monetary items of foreign currency origin at the average ending transfer rate of the commercial bank where the enterprise regularly has money. transaction.

The determination of the average transfer rate and handling of exchange rate differences due to re-evaluation of receivables which are monetary items of foreign currency origin shall comply with the provisions of Article 52 of this Circular.

7. Receivables which are monetary items of foreign currency origin, if they are difficult to recover at the end of the period, must still make provision for doubtful debts as prescribed.

Article 17. Account 131 – Receivables from customers

1. Accounting principles

a) This account is used to record receivables and the payment of receivables of the enterprise to customers in terms of proceeds from the sale of products, goods, investment real estate, fixed assets, financial investments, Service Provider. This account is also used to record the receivables of the construction contractor and the principal about the completed construction work volume. Cash collection transactions are not reflected in this account.

b) Receivables from customers need to be accounted for in detail for each object, each item of receivable, detailed collection period (over 12 months or no more than 12 months from the time of making the report). and record each payment. Receivables are customers who have economic relations with the enterprise in terms of purchasing products, goods, or providing services, including fixed assets, investment real estate, and financial investments.

c) The export entrusting party shall record in this account the receivables from the export entrusting party for the proceeds of export sales such as normal sales and service provision transactions.

d) In the detailed accounting of this account, the accountant must classify debts, types of debts that can be paid on time, bad debts or unrecoverable debts, in order to have a basis for determining the number of debts. make provision for doubtful debts or take measures to deal with uncollectible debts. Loss of bad debts after deducting the provision made is recognized in administrative expenses in the reporting period. Bad debts that have been dealt with when they are recovered shall be accounted into other incomes.

dd) In the relationship of selling products, goods, or providing services as agreed between the enterprise and the customer, if the delivered products, goods, fixed assets, investment property or services provided are not as agreed upon in the contract. In an economic contract, the buyer can request the enterprise to reduce the selling price or return the delivered goods.

2. Structure and contents of Account 131 – Receivables from customers

Debtor:

– Amounts receivable from customers arising during the period when selling products, goods, investment real estate, fixed assets, services, financial investments;

– The excess amount returned to the customer;

– Re-evaluate the receivables from customers which are monetary items of foreign currency origin at the time of preparation of financial statements (in case the foreign currency rate increases compared to the recorded exchange rate).

Yes Party:

– The amount the customer has paid;

– Amount received in advance, prepaid by customers;

- Sales discount deducted from customer's receivable;

- Turnover of sold goods returned by buyers (with or without VAT);

– Amount of payment discount and trade discount for the buyer;

– Re-evaluate receivables from customers which are monetary items of foreign currency origin at the time of preparation of financial statements (in case the foreign currency exchange rate decreases compared to the recorded exchange rate).

Debit side balance:

Amounts still due from customers.

This account may have a Credit balance: Credit balance reflects the amount received in advance or the amount collected is more than the amount receivable from customers in detail for each specific object. When preparing the statement of financial position, the detailed balance for each receivable of this account must be taken to record both items on the side “Assets” and the side “Capital resources”.

Article 18. Account 133 – Deductible VAT

1. Accounting principles

a) This account is used to record the deductible, deducted and deductible input VAT amounts of the enterprise.

b) Accountants must separately account deductible input VAT and non-deductible input VAT. In case it is not possible to separately account 15, the input VAT amount shall be recorded to Account 133. At the end of the period, the accountant must determine the deductible and non-deductible VAT amounts in accordance with tax laws. VAT.

c) The non-deductible input VAT shall be included in the value of the purchased property, the cost of goods sold or production and business expenses, depending on each specific case.

d) The determination of input VAT to be deducted, declared, finalized and paid must comply with the provisions of the law on VAT.

2. Structure and contents of Account 133 – Deductible VAT

Debtor:

Amount of input VAT to be deducted.

Yes Party:

- Amount of input VAT deducted;

- Transfer of non-deductible input VAT;

- Input VAT on supplies and goods purchased but returned, discounted, reduced prices;

– The amount of input VAT has been refunded.

Debit side balance:

The input VAT amount is still deductible, the input VAT amount is refunded but the state budget has not yet refunded.

Account 133 – Deductible VAT, has 2 level 2 accounts:

– Account 1331 – Deductible VAT on goods and services: Reflects deductible input VAT on supplies, goods and services purchased from outside used in the production and trading of goods and services subject to VAT calculated by the tax credit method.

– Account 1332 – Deductible VAT of fixed assets: Reflect input VAT of the process of investment, purchase of fixed assets, investment real estate used in production and business activities of goods and services subject to VAT calculated by the deduction method tax.

Article 19. Account 136 – Internal receivables

1. Accounting principles:

a) This account is used to record receivables and receivables payment status of the enterprise (superior unit) with its dependent accounting unit (subordinate unit) or between other units. accountants are dependent on each other. The subordinate units are dependent accounting units but have accounting work organization such as branches, factories, factories, etc.

b) Internal receivables recorded in account 136 include:

- In superior units:

+ Capital, fund or funding assigned or granted to subordinates;

+ Amounts payable by subordinates to their superiors according to regulations;

+ Amounts collected by subordinates;

+ Expenses already paid and paid to subordinates;

+ Amounts assigned to subordinate units to carry out the volume of internal contracts and receive back the value of internal contracts;

+ Other current receivables.

- In subordinate units, dependent accounting:

+ Amounts granted by superior units but not yet received;

+ Value of products, goods and services transferred to superior units or other internal units for sale;

+ Revenue from selling goods and providing services to internal units;

+ Amounts collected by superior units or other internal units;

+ Expenses paid and paid on behalf of superior units and other internal units;

+ Other current internal receivables.

c) Account 136 must make detailed accounting for each subordinate unit with payment relationship and separately monitor each internal receivable. Enterprises need to take measures to urge the final settlement of internal receivables in the accounting period.

d) At the end of the accounting period, it is required to check, compare and confirm the arising number and balance of Account 136 “Internally receivable”, Account 336 “Internal payable” with each related subordinate unit. for each payment content. Clearing by each item of each dependent accounting subordinate or other internal unit, and at the same time clearing on 2 Accounts 136 “Internal receivables” and Account 336 “Payables”. internal” (according to the details of each object). When comparing, if there is a difference, the cause must be found and adjusted in time.

2. Structure and contents of Account 136 – Internal receivables

Debtor:

- Amount of business capital assigned to subordinate units;

– Amounts paid for or paid on behalf of superior units or other internal units;

- Amounts payable by superior units, amounts payable by subordinate units;

- Amounts of money that the subordinate unit must collect from the superior;

- Amounts receivable from the sale of products, goods and services between internal units;

– Other internal receivables.

Yes Party:

- Recovery of capital and funds in subordinate units;

– Amounts collected from internal receivables;

– Clearing receivables and payables internally with the same object.

Debit side balance: Receivable debts from internal units.

Account 136 – Internal receivables, there are 2 level 2 accounts:

– Account 1361 – Working capital in affiliated units: This account is only opened at the superior unit to reflect the existing business capital in the subordinate accounting units assigned by the superior unit.

– Account 1368 – Other internal receivables: Reflects all other receivables between internal entities other than working capital in the affiliated entity.

Article 20. Account 138 – Other receivables

1. Accounting principles

1.1. This account is used to record receivables outside the scope reflected in Account 131 – Receivables from customers, Account 136 – Internal receivables and payment of these receivables, including the following main contents:

- The value of the missing property has been discovered but the cause has not been determined and must be handled;

- Receivables for material compensation caused by individuals and groups (inside and outside the enterprise) such as loss or damage of supplies, goods, capital, etc. have been handled for compensation;

– Loans with non-monetary assets to other parties (if they are lent in cash, they must be recorded as loans on account 1288);

- Expenses for capital construction investment, production and business expenses but not approved by competent authorities must be recovered;

– Expenses that must be recovered, such as payments by the import and export entrustee to the import and export entrustee for bank fees, customs assessment fees, transportation fees, loading and unloading fees, and other expenses. taxes,...

– Interest on loans, dividends, profits receivable from financial investment activities;

- The amount or value of assets that the enterprise pledges, mortgages, deposits or deposits at other enterprises and organizations in economic relations as prescribed by law;

– Receivables other than the above.

1.2. Accounting principles for mortgages, mortgages, deposits and deposits:

a) Money and assets pledged or pledged as collateral must be closely monitored and promptly recovered upon the expiry of the term of pledge, mortgage, deposit or deposit. In case the deposit or deposit the enterprise is entitled to receive but is past due for recovery, the enterprise is entitled to make a provision like for bad debts.

b) Enterprises must keep detailed records of pledges, mortgages and deposits by type, subject, term and original currency. When preparing the financial statements, amounts with remaining maturities of less than 12 months are classified as short-term assets; Those with remaining maturities of 12 months or more are classified as long-term assets.

c) For assets given as pledge, mortgage, escrow or security deposit, the recorded prices are recorded in the enterprise's accounting books. When exporting a non-monetary asset to pledge, write at any price, when it is received, record at that price. Assets mortgaged by certificates of ownership (such as real estate) are not recorded as a decrease in assets, but are recorded in details in the accounting books (details of assets being mortgaged) and disclosed in the financial statements. .

d) In case there are deposits or deposits in cash or cash equivalents entitled to receive back in foreign currency, they must be re-evaluated according to the average transfer rate at the end of the period of the commercial bank where the enterprise regularly has money. transaction.

1.3. In principle, in any case of detecting a lack of property, the cause and the offender must be traced to take specific handling measures. Only record to Account 1381 cases where the cause of lack, loss or damage of assets of the enterprise has to be handled pending. In case the reason for the shortage of assets has been identified and the handling record has been obtained within the period, it shall be recorded in the relevant accounts, not through Account 1381.

The value of inventory that is lost or lost (except for the loss in the norm during the purchasing process is accounted for in the inventory value) after deducting the compensation amount, which is accounted into the cost of goods sold.

The value of pending assets for the remaining value of the missing fixed assets through inventory, after deducting compensation from relevant organizations and individuals, shall be accounted into other expenses of the enterprise.

1.4. Loss of other bad debts after deducting the provision already made is accounted into the enterprise's administrative expenses.

2. Structure and contents of Account 138 – Other receivables

Debtor:

– Value of missing assets pending settlement;

- Receivables from individuals and groups (inside and outside the enterprise) for the lack of assets, the cause clearly identified and the record of immediate handling;

- Receivables from loan interest, deposit interest, dividends, profit distributed from financial investment activities;

– Payments on behalf of third parties to be recovered, other receivable debts;

- The value of the pledged property or the amount of money deposited or deposited;

- Re-evaluate other receivables which are monetary items of foreign currency origin (in case the foreign currency rate increases compared to the recorded exchange rate).

Yes Party:

- Transfer the missing asset value to relevant accounts according to the decision stated in the handling record;

– Amounts collected on other receivables;

– The value of the pledged property or the amount of the deposit or deposit received or paid;

– Deduction (penalty) from the deposit, the deposit is included in other expenses;

- Re-evaluate other receivables which are monetary items of foreign currency origin (in case the foreign currency exchange rate decreases compared to the recorded exchange rate).

Debit side balance:

Other receivables have not yet been collected.

This account may have a Credit balance: Credit balance reflects more receivables than receivables (in individual cases and in details of each specific entity).

Account 138 – Other receivables, there are 3 tier 2 accounts:

– Account 1381 – Pending pending assets: Reflecting the value of the missing property, the cause of which has not been determined yet, pending a decision on handling.

– Account 1386 – Mortgage, mortgage, deposit, deposit: Reflects the amount or value of assets that the enterprise pledges, deposits or deposits at other enterprises and organizations in economic relations as prescribed by law.

– Account 1388 – Other receivables: Reflects receivables of the enterprise outside the scope of receivables recorded in Accounts 131, 133, 136, 1381, 1386 such as: Receivables of dividends, profits and interests; Receivables for compensation due to loss of money and property;

Article 21. Account 141 – Advance

1. Accounting principles

a) This account is used to record advances made by the enterprise to employees in the enterprise and the payment of such advances.

b) An advance is a sum of money or supplies assigned by an enterprise to an advance recipient to perform an approved production or business task or to settle a certain job. The advance recipient must be an employee working at the enterprise. For regular advance recipients (in the material supply, administration and administration departments) they must be appointed in writing by the Director (General Director).

c) The advance recipient (individual or collective) must be responsible to the enterprise for the amount received and may only use the advance in accordance with the approved purpose and work contents. If the amount received in advance is unused or not used up, it must be returned to the fund. The advance recipient may not transfer the advance amount to another person for use.

When completing and finishing the assigned work, the advance recipient must make an advance payment table (enclosed with original documents) to pay in full and completely (in each installment) the amount of advance received. , the amount of the used advance and the difference between the amount received and the used amount (if any). If the advance is not used up, if it is not returned to the fund, it must be deducted from the salary of the advance recipient. In case the enterprise spends more than the amount received in advance, the enterprise will make an additional payment for the missing amount.

d) The advance payment of the previous period must be completely paid before receiving the advance for the next period. The accountant must open a detailed accounting book to monitor each advance recipient and fully record the situation of advance receipt and payment for each advance.

2. Structure and contents of Account 141 – Advance

Debtor:

The money and materials have been advanced to the employees of the enterprise.

Yes Party:

– Advances have been paid;

– The amount of advance used is not exhausted, re-enter the fund or deducted from salary;

– The materials that have been used in advance are not fully re-entered into the warehouse.

Debit side balance:

Unpaid advance amount.

Article 22. Principles of inventory accounting

1. The inventory account group is used to reflect the current value and changes in inventory of the enterprise (if the enterprise performs inventory accounting by the regular declaration method) or is used to reflect the value of inventory at the beginning and end of the accounting period of the enterprise (if the enterprise makes inventory accounting according to the periodic inventory method).

2. Inventories of an enterprise are assets purchased for production or for sale in the normal production and business period, including:

– Purchased goods are on the way;

- Raw materials, materials;

- Tools;

– Work in progress;

– Finished products;

- Goods;

- Goods for sale.

3. Products, goods, supplies, assets received for custody, consignment, entrusted import and export, processing... that are not under the ownership and control of the enterprise shall not be reflected. is inventory.

4. Inventory accounting must comply with the provisions of the Accounting Standard "Inventories" when determining the original cost of inventory, the method of calculating the inventory value, and determining the net realizable value. available, make provision for devaluation of inventory and recognize expenses.

5. Principles of determining the original cost of inventories are specified for each type of supplies and goods, according to the source of formation and the time of price calculation.

6. Non-refundable taxes are included in the value of inventories such as: Input VAT on non-deductible inventories, excise tax, import tax, and environmental protection tax payable upon arrival. purchase inventory.

– Trade discounts and rebates received after purchasing inventories (including violations of economic contracts) must be allocated to inventories in stock, sold and used goods for products. business production, basic construction for appropriate accounting:

+ If the inventory is still in stock, write down the value of the inventory;

+ If the inventory has been sold, write down the cost of goods sold;

+ If the inventory has been used for capital construction, write down capital construction expenses.

– Discounts paid when purchasing inventory are recorded in financial income.

7. When selling inventories, the original cost of sold inventories is recorded as production and business expenses in the period in accordance with the recognized revenue related to them and in accordance with the nature of the transaction. In case of exporting inventory for promotion or advertisement, the following principles shall be followed:

a) In case inventory is exported for promotion or advertisement without collecting money, without other conditions such as having to buy products, goods, etc., the value of inventory shall be recorded to selling expenses. (details of promotional and advertising goods);

b) In case of exporting inventory for promotion and advertising, but customers are only allowed to receive promotional and advertising goods with other conditions such as having to buy products and goods (for example, buying 2 products and getting free gifts). 1 product, etc.), the accountant must allocate the proceeds to calculate the revenue for both promotional goods, the value of promotional goods shall be included in the cost price (in this case, the nature of the transaction is a reduction in the sale price). .

c) In case of using inventory as gifts for employees, which are covered by bonus and welfare funds or pay salaries to employees, the accountants record revenue and cost costs like normal sales transactions. The value of donated inventory is recorded as a reduction in the reward and welfare fund.

d) The discount paid to customers when selling inventory is recorded in financial expenses.

8. When determining the value of inventories exported in a period, enterprises shall apply one of the following methods:

a) Method of calculation according to the nominal price: The method of calculation according to the nominal price is applied based on the actual value of each purchase of purchased goods and each product produced, so it is only applicable to enterprises. have few stable items or items and identify the entry price details of each inventory lot.

b) Weighted average method: According to the weighted average method, the value of each type of inventory is calculated according to the average value of each type of inventory at the beginning of the period and the value of each type of inventory purchased. or produced during the period. The average value can be calculated for each period or after each imported shipment, depending on the specific conditions of each enterprise.

c) First-in, first-out (FIFO) method: The first-in, first-out method is based on the assumption that the value of inventory purchased or produced first is sold out first and the remaining inventory value. The ending balance is the value of inventory purchased or produced near the end of the period. According to this method, the value of inventory is calculated according to the price of the goods in stock at the beginning of the period or near the beginning of the period, the value of the ending inventory is calculated according to the price of the goods in stock at the end of the period. or near the end of the period in stock.

Each inventory valuation method has its own advantages and disadvantages. The level of accuracy and reliability of each method depends on the management requirements, qualifications, professional capacity and equipment level with calculation tools and information processing facilities of the enterprise. At the same time, it also depends on preservation requirements, complexity of types, specifications and fluctuations of materials and goods at the enterprise.

9. For inventory purchased in foreign currency, the inventory purchase price must be based on the actual transaction exchange rate for recognition. In case the enterprise advances money to the seller, the value of inventory corresponding to the advance amount is recorded at the actual exchange rate at the time of advance, the value of inventory corresponds to the amount of the advance. The remaining cash is recognized at the actual exchange rate at the time of inventory recognition.

Accounting for inventory related to transactions in foreign currencies and handling of exchange rate differences shall comply with the provisions of Article 52 of this Circular.

10. At the end of the accounting year, if it is deemed that the value of inventories cannot be fully recovered due to damage, obsolescence, reduced selling prices, or an increase in finishing or selling expenses, a decrease in price must be recorded. cost of inventories equals the net realizable value of the inventory. Net realizable value is the estimated selling price of inventories in the normal course of business, less (-) the estimated costs of perfecting the products and the estimated costs necessary to sell them. they.

Depreciation of inventories to net realizable value is made by making provision for devaluation of inventories. An allowance for devaluation of inventories is made as the difference between the cost of inventories and their net realizable value.

Loss or damage to inventory due to damage or obsolescence that cannot be recovered after deduction of provision for devaluation of inventories (if any) is recorded in cost of goods sold in the period. .

All differences between the provision for devaluation of inventories to be made at the end of this accounting period are larger than the allowance for devaluation of inventories made at the end of the previous accounting period, and the Inventories, after deducting (-) compensation for personal liability and unallocated overhead, are recognized in cost of goods sold in the period. In case the provision for devaluation of inventories made at the end of this accounting period is smaller than the provision for devaluation of inventories made at the end of the previous accounting period, the smaller difference must be reversed and recorded as a decrease in cost of goods. sales during the period.

11. The inventory accountant must simultaneously make detailed accounting of both the value and the kind according to each item, type and specification of materials and goods according to each management and use location, always ensuring the integrity of the inventory. match, both in value and in kind, between the reality of materials and goods and the general and detailed accounting books.

If excess inventory is detected during inventory, if it is determined to be from another enterprise, an increase in inventory corresponding to other payables shall not be recorded.

12. In an enterprise, only one of two methods of inventory accounting can be applied: the regular declaration method or the periodical inventory method. The selection of inventory accounting method to be applied at the enterprise must be based on the characteristics, nature, quantity and type of materials and goods and management requirements for appropriate application and must be performed consistently during the accounting period.

Inventory accounting methods.

a) Regular declaration method: Regular declaration method is a method of regularly, continuously and systematically monitoring and reflecting on the situation of import, export and inventory of supplies and goods in accounting books. In the case of applying the regular declaration method, the inventory accounting accounts are used to reflect the current number, the increase or decrease in the amount of materials and goods. Therefore, the book value of inventory can be determined at any point in the accounting period.

At the end of the accounting period, based on the actual inventory data, compare and contrast with the inventory data on the accounting books. In principle, the actual inventory must always match the inventory in the accounting books. If there is a difference, it is necessary to find the cause and have solutions to handle it in a timely manner. The regular declaration method is usually applied to manufacturing enterprises (industry, construction, etc.) and commercial enterprises dealing in items of great value such as machinery, equipment, technical goods, etc. High Quality…

b) Periodic inventory method:

Periodic inventory method is an accounting method based on actual inventory results to reflect the value of ending inventory of materials and goods in the general accounting book and from that to calculate the value of goods. , materials exported during the period according to the formula:

– According to the method of periodic inventory, all movements of materials and goods (inventory, warehousing) are not tracked and reflected in the inventory accounting accounts. The value of supplies and goods purchased and stocked during the period is tracked and reflected in Account 611 “Purchase”.

- Inventory of supplies and goods is carried out at the end of each accounting period to determine the actual value of materials and goods in stock, the value of materials and goods out of stock in the period (consumption for production). or sold) as the basis for recording in the accounting books of Account 611 “Purchase”. Thus, when applying periodic inventory method, inventory accounting accounts are only used at the beginning of the accounting period (to carry forward the opening balance) and at the end of the accounting period (to reflect the actual value of the inventory). ending inventory).

- Periodic inventory method is usually applied in enterprises that have many types of goods and materials with very different specifications and designs, low value, goods and materials used or sold regularly. Retail store…). The method of periodic inventory of inventory has the advantage of being simple, reducing the workload of accounting. But the accuracy of the value of materials and goods used and sold is affected by the quality of management at warehouses, counters, and yards.

13. The classification of inventory as supplies or equipment or spare parts depends on the business characteristics of the enterprise.

14. Costs of transportation and preservation of inventories incurred in the process of purchasing goods or continuing in the production and processing process shall be recorded in the cost of inventories. Cost of transporting and preserving inventory related to the consumption of inventory shall be included in selling expenses.

Article 23. Account 151 – Purchased goods in transit

1. Accounting principles

a) This account is used to record the value of goods and supplies (raw materials, materials; tools, tools; goods) purchased from outside but still under the ownership of the enterprise at the end of the period. are still in transit, at the port or yard, or have arrived at the enterprise but are waiting for the receipt of the warehouse.

b) Goods and supplies that are considered to be under the ownership of the enterprise but have not yet been warehoused, including:

- Goods and supplies purchased from outside have paid or have been accepted for payment but are still in the seller's warehouse, at the port or yard or in transit;

– Goods and supplies purchased from outside have arrived at the enterprise but are waiting for testing and receipt for warehousing.

c) Accounting for goods purchased in transit is recorded on Account 151 according to the historical cost principle.

d) Every day, when receiving a purchase invoice but the goods have not been delivered to the warehouse, the accountant has not yet recorded the book, but compares it with the economic contract and saves the invoice in a separate file: “The goods are on the way. ".

During the period, if goods are brought to the warehouse, the accounting records based on the warehouse receipt and purchase invoice directly into Accounts 152 “Raw materials and materials”, Account 153 “Tools and tools”, account 156 “Tools and tools”. Account XNUMX “Goods”.

dd) If the goods have not arrived at the end of the period, the purchase invoice shall be recorded in Account 151, “Purchased goods are on the way”. Accountants must open details to track purchased goods in transit according to each type of goods, supplies, each shipment, and each economic contract.

2. Structure and content reflected in Account 151 – Purchases in transit

Debtor:

- Value of purchased goods and supplies on the way;

- Carrying forward the actual value of purchased goods and supplies in transit at the end of the period (in case the enterprise records inventories according to the 26-period periodic inventory method).

Yes Party:

- Value of purchased goods and supplies on the way and have been stored in warehouses or delivered directly to customers;

- Carrying forward the actual value of purchased goods and supplies in transit at the beginning of the period (in case the enterprise accounts for inventories by the periodic inventory method).

Debit side balance: Value of goods and supplies purchased but still on the way (not yet returned to the enterprise's warehouse).

Article 24. Account 152 – Raw materials and materials

1. Accounting principles

a) This account is used to record the current value and the increase or decrease in raw materials and materials in the enterprise's warehouse. Raw materials and materials of enterprises are labor objects purchased from outside or processed by themselves for production and business purposes of enterprises. Raw materials and materials reflected in this account are classified as follows:

– Raw materials, main materials: These are raw materials and materials that, when involved in the production process, constitute the physical entity, the main entity of the product. Therefore, the concept of raw materials and main materials is associated with each specific manufacturing enterprise. In commercial and service enterprises, the concept of main materials and auxiliary materials is not set forth. Raw materials and main materials also include semi-finished products purchased from outside for the purpose of continuing the production and manufacturing process.

- Auxiliary materials: These are materials that, when participating in the production process, do not constitute the main entity of the product but can be combined with the main materials to change the color, taste, appearance, and quality. of the product or to facilitate the normal manufacturing process of the product, or to serve the needs of technology, engineering, preservation and packaging; service for the labor process.

- Fuel: These are things that provide heat in the production and business process, creating conditions for the production of products to take place normally. Fuel can exist in liquid, solid and gaseous states.

- Substitute materials: These are the materials used to replace and repair machinery, equipment, means of transport, tools, production tools, etc.

– Basic construction materials and equipment: Materials and equipment used for basic construction work. For basic construction equipment, including equipment that needs to be installed or not, tools, tools and structural objects used to be installed in basic construction works.

b) Accounting for import, export and inventory of raw materials and materials on Account 152 must be performed according to the principle of historical cost. Contents of original prices of raw materials, materials are determined depending on each source of import.

- Original price of raw materials and materials purchased from outside, including: The purchase price stated on the invoice, non-refundable taxes, costs of transportation, loading and unloading, preservation, classification, insurance, etc., raw materials and materials from the place of purchase to the warehouse of the enterprise or business. costs of purchasing officers, costs of independent purchasing department, other costs directly related to the purchase of raw materials and the amount of natural loss in the norm (if any):

+ In case VAT on imported goods is deductible, the value of purchased raw materials is recorded at the purchase price exclusive of VAT.

+ In case VAT on imported goods is not deductible, the value of purchased raw materials includes VAT.

- Original price of raw materials, self-processed materials, including: Actual prices of raw materials for processing and processing costs.

- Original price of raw materials and materials outsourced for processing, including: Actual prices of raw materials and materials outsourced for processing, costs of transporting materials to and from the processing place to the enterprise, and outsourcing costs.

– Original price of raw materials received for joint venture capital contribution, shares is the value agreed upon by the parties to the joint venture.

c) Calculation of the value of raw materials, materials out of stock in the period, is done by one of the following methods:

– Actual actual price method;

– Weighted average method after each entry or at the end of the period;

- First-in, first-out method.

Which valuation method the enterprise chooses, must ensure consistency throughout the accounting year.

d) Detailed accounting of raw materials and materials must be made according to each warehouse, each type, each group, type of raw material and materials. In case an enterprise uses the accounting price in the detailed accounting of import and export of raw materials and materials, at the end of the accounting period, the difference between the actual price and the accounting price of raw materials must be calculated for calculation. the actual cost of raw materials, exported materials used in the period according to the following formula:

dd) Not recorded in this account for raw materials not under the ownership of the enterprise such as raw materials received for custody, raw materials received for processing, raw materials received from the import and export entrustment party. …

2. Structure and contents of Account 152 – Raw materials and materials

Debtor:

- Actual value of raw materials and materials in stock due to purchase from outside, self-manufacturing, outsourcing, processing, capital contribution or other sources;

- Value of raw materials, excess materials discovered during inventory;

- Carrying forward the actual value of raw materials and materials in stock at the end of the period (in case the enterprise accounts for inventory by the periodic inventory method).

Yes Party:

- Actual value of raw materials and materials exported from warehouses used in production, business, for sale, outsourced processing or used for capital contribution;

- The value of raw materials and materials returned to the seller or discounted for purchased goods;

- Trade discounts are enjoyed when buying raw materials and materials;

- Value of lost and lost raw materials and materials discovered during inventory;

- Carrying forward the actual value of raw materials and materials in stock at the beginning of the period (in case the enterprise accounts for inventory by the periodic inventory method).

Debit side balance:

Actual value of raw materials and materials in stock at the end of the period.

Article 25. Account 153 – Tools and instruments

1. Accounting principles

a) This account is used to record the current value and the increase or decrease of tools and instruments of the enterprise. Tools and instruments are labor materials that do not meet the standards on value and duration of use prescribed for fixed assets. Therefore, tools and instruments are managed and accounted for as raw materials. According to current regulations, the following labor documents, if they do not meet the criteria for recognition of fixed assets, are recorded as tools and instruments:

- Scaffolding, formwork, tools, specialized mounting tools for construction production;

- Packages sold with goods are charged separately, but in the process of preserving goods transported on the road and stored in warehouses, the value of wear and tear is calculated to gradually deduct the value of the packaging;

- Tools and utensils made of glass, crockery and porcelain;

- Management means, office supplies;

– Clothes and shoes used for working, …

b) Accounting for import, export and inventory of tools and instruments on Account 153 is done at cost. The principle of determining the original cost of inventory of tools and tools is the same as that of raw materials (see explanation in Account 152).

c) Calculation of the value of tools and tools out of stock is also done by one of the following three methods:

– First In – First Out method;

– Actual actual price method;

– Weighted average method after each entry or at the end of the period.

d) Detailed accounting of tools and instruments must be made according to each warehouse, each type, each group, each type of tool and tool. Output tools and instruments used for production, business or lease must be tracked in kind and their value in detailed accounting books according to the place of use, the lessee and the person responsible for the material. For tools and instruments of great value and rarity, special preservation methods are required.

dd) For tools and implements of small value when exported for production and business, the entire amount must be recorded once in production and business expenses.

e) In case the tools, tools, packages are rotated, used or leased out related to production and business activities for many accounting periods, they shall be recorded to Account 242 “Expenses prepaid” and gradually allocated to cost of goods sold or production and business expenses according to each use department.

2. Structure and contents of Account 153 – Tools and instruments

Debtor:

- Actual value of tools, tools imported from warehouse, purchased from outside, homemade, outsourced processing, received capital contribution;

- Value of rental tools and tools to be re-entered into the warehouse;

- Actual value of redundant tools and instruments discovered during inventory;

- Carrying forward the actual value of the tools and supplies in stock at the end of the period (in case the enterprise accounts for the inventory using the periodic inventory method).

Yes Party:

- Actual value of tools and instruments out of stock used for production, business, lease or capital contribution;

– Trade discounts are enjoyed when buying tools and instruments;

- Value of tools, tools returned to the seller or discounted by the seller;

- Value of tools, missing tools discovered during inventory;

- Carrying forward the actual value of the tools and supplies in stock at the beginning of the period (in case the enterprise accounts for the inventory using the periodic inventory method).

Debit side balance: Actual value of tools and supplies in inventory at the end of the period.

Article 26. Account 154 – Production and business in progress

1. Accounting principles

a) This account is used to record the total cost of production and business in service of calculating the cost of products and services in the inventory-accounting enterprise by the regular declaration method. In enterprises that account for inventories using the periodic inventory method, Account 154 only reflects the actual value of products and services in progress at the beginning and at the end of the period.

b) Account 154 “Production and business in progress” records production and business expenses incurred in the period; production and business costs of the volume of products and services completed in the period; costs of production and business in progress at the beginning and end of the period of main and auxiliary production and business activities and outsourced processing in manufacturing enterprises or in service businesses. Account 154 also reflects production and business costs of production, processing, or service provision activities of commercial enterprises, if these types of activities are organized.

c) Production and business expenses recorded on Account 154 must be detailed according to the location where the costs are incurred (workshops, production departments, production teams, construction sites,...); by type, product group, or product detail, division; by type of service or by each service stage.

d) Production and business expenses recorded in Account 154 include the following expenses:

- Cost of direct materials and materials;

- Direct labor costs;

– Expenses for using construction machines (for construction and installation activities);

- General production costs.

dd) Costs of raw materials, materials, labor costs in excess of the normal level and fixed production overheads that are not allocated shall not be included in the inventory value but must be included in the cost of goods sold of the period. accountant.

e) At the end of the period, allocate fixed manufacturing overhead and variable manufacturing overhead to the processing cost for each product unit according to the actual costs incurred.

g) Failing to record into Account 154 the following expenses:

- Selling expenses;

- Enterprise Cost Management;

- Financial expenses;

- Other costs;

– Corporate income tax expenses;

- Expenses for capital construction investment;

– Expenses to be covered by other sources.

2. How to apply Account 154 in the industry

a) Account 154 “Expenses of production and business in progress” applied in the industry is used to collect, aggregate production costs and calculate product costs of production workshops or divisions, product manufacturing. For manufacturing enterprises that outsource outsourcing, processing, providing labor and services to outside parties or serving the production of products, the costs of these activities are also recorded in the Account. 154.

b) Only the following expenses are recorded in Account 154:

- Cost of direct materials and materials for the production and manufacture of products;

– Direct labor costs for the production and manufacture of products;

- General production costs directly serving the production and manufacturing of products.

c) Account 154 in industrial production enterprises is recorded in detail by location where costs are incurred (workshop, production division), by type, product group, product, or division details. product.

d) The difference between the cost of trial production and the amount recovered from the liquidation or sale of trial production products shall be recorded as an increase or decrease in the value of capital construction.

3. Method of application of Account 154 in the agricultural sector

a) Account 154 “Expenses of production and business in progress” applied in the agricultural sector is used to collect total production costs and calculate product costs of farming, product processing or service activities. agricultural service. This account must be accounted for in detail by agribusiness (cultivation, livestock, processing, etc.), by location where costs are incurred (workshop, production team, ...) types of seedlings and each type of product, each product or service.

b) Actual production cost of agricultural products is determined at the end of the harvest season or at the end of the year. Products harvested in any year will calculate the cost in that year, which means that the cost will be spent this year, but the next year, when the products are harvested, the next year will calculate the cost.

c) For the cultivation industry, expenses must be accounted in detail according to 3 types of trees:

- Short-term crops (rice, potatoes, cassava,...);

- Plants are harvested once and many times (pineapple, banana, ...);

– Perennial plants (tea, coffee, rubber, pepper, fruit trees, ...).

For crops that grow 2 or 3 crops in a year, or are planted this year, harvested next year, or have both a new planting area and an area of ​​care and harvest in the same year, etc. must be based on the actual situation to record and clearly reflect the costs of this crop with another, of this area with another area, of the previous year with this year and next year, etc.

d) Do not record in this account expenses for reclamation, new planting and care of perennial trees in the construction period, selling expenses, administrative expenses, financial operating expenses and other expenses. .

dd) In principle, production costs of crop production are recorded in detail to the Debit side of Account 154 "Costs of production and business in progress" according to each expense collection object. For some types of expenses related to many accounting objects, or related to many cases or periods, they must be reflected in separate accounts and then allocated to the cost of related products. Important factors such as: Cost of irrigation, cost of land preparation and new planting in the first year of crops once, harvested many times (this cost is not part of capital construction investment), ...

e) On the same cultivated area, if two or more types of short-term agricultural crops are intercropped, the costs incurred directly related to which type of tree shall be collected separately for that type of tree (such as: Seeds and seeds). seeds, costs of planting, harvesting, ...), costs incurred in common for many types of plants (costs of plowing, irrigation, etc.) are collected separately and distributed to each type of tree according to the sown area. planted, or according to a suitable criterion.

g) For perennial plants, the process from land preparation, planting and tending to the beginning of production (collecting, divination) is accounted for as the process of capital construction investment to form fixed assets. expenses in Account 241 "Construction in progress". Expenses for perennial orchards in the production and business process include costs for care and harvesting.

h) When accounting for livestock production costs on Account 154, it is necessary to pay attention to the following points:

- The cost of livestock production must be detailed for each type of livestock production (such as raising cattle, raising pigs, etc.), for each group or each type of cattle and poultry;

- Baby animals of basic or fat-raised herds born after separating from their mothers may open separate detailed monitoring books according to actual costs;

– For basic animals, when they are eliminated, they will be converted into large and fat-raised animals, which shall be recorded to Account 154 according to the residual value of the basic animals;

– Objects for calculating cost in the livestock industry are: 1 kg of fresh milk, 1 standard cow, the cost of 1 kg of meat increases, the cost of 1 kg of live meat, the cost of 1 day/animal, etc.

i) The cost of raw materials, direct labor costs that are above the normal level, and fixed general production costs that are not allocated are not included in the product cost but are included in the cost of goods sold of the company. accounting period.

4. Method of application of Account 154 in the service industry

a) Account 154 “Expenses of production and business in progress” applies to service businesses such as: transportation, postal services, tourism, services, etc. This account is used to collect information. costs (raw materials, direct materials, direct labor, manufacturing overhead) and calculate the cost of the volume of services performed.

b) For the transport industry, this account is used to collect costs and calculate the cost of road transport (car, tram, transport by other rudimentary means...) railway transport, waterway, airway, pipeline transport, etc. Account 154 applicable to the transportation industry must be opened in detail for each type of activity (passenger transport, freight transport, ...) according to each business. business or service business.

c) During the transportation process, the tires are worn out at a faster rate than the front end, so they often have to be replaced many times, but the value of the replacement tires is not included in the transportation cost immediately after being used. but must be allocated gradually in each period. Therefore, every period, auto transport enterprises are entitled to advance the cost of tires and tubes to the transport cost (payable costs) according to the provisions of the current financial regime.

d) The part of the cost of raw materials, materials, direct labor that is above the normal level and the part of fixed general production costs that are not allocated shall not be included in the cost of products but shall be included in the cost of goods sold. sales for the accounting period.

dd) For tourism business, this account is opened in detail according to each type of activity such as: tour guide, hotel business, tourist transport business, etc.

e) In the hotel business, Account 154 must open details for each type of service such as food service, room service, entertainment services, other services (laundry, ironing, cutting, etc.) hair, telegraph, sports, etc.).

5. Method of application of Account 154 in the construction industry

a) For construction and installation business activities, only the method of accounting for inventories according to the method of regular declaration shall be applied, not the method of accounting for inventories according to the periodic inventory method, so the 154 is used to collect costs of production and business, serving the calculation of production costs of industrial construction products and services of construction and installation enterprises.

b) The cost of direct materials, direct materials and direct labor costs in excess of the normal level shall not be included in the cost of construction works but shall be recorded in the cost of goods sold of the accounting period.

c) This account in the Construction industry can be tracked in detail according to the following activities:

- Build: Used to collect costs, calculate production costs of construction products and reflect the value of work in progress at the end of the period;

- Other products: Used to collect costs, calculate production costs of other products and reflect the value of other work in progress at the end of the period (finished products, construction components,...);

- Service: Used to collect costs, calculate service costs and reflect the cost of services in progress at the end of the period;

- Cost of construction warranty: Used to collect warranty costs for construction and installation works actually incurred in the period and value of construction and unfinished warranty works at the end of the period.

d) The collection of production costs and calculation of construction and installation product costs must be based on each work, work item and cost item specified in the construction and installation estimate, including:

- Cost of materials;

- Labor costs;

- Expenses for using construction machines;

- General expenses.

Particularly, general costs are collected as "Construction and installation" costs: Only general costs incurred at the contractor team or construction site are included. The management expenses of construction and installation enterprises (which are part of the general expenses) are collected on the Debit side of Account 642 "Business administration expenses". This cost will be transferred to the Debit side of Account 911 “Determination of business results” to participate in the cost of all construction products completed and sold during the period.

dd) Real estate construction investors use this account to collect costs for construction of finished real estate products. In case real estate is built for multiple purposes (for office, for rent or for sale, for example, a mixed-use apartment building), the following principles must be followed:

– If there are sufficient grounds to separately account or determine the proportion of the cost of construction of real estate for sale (finished real estate products) and the cost of construction of real estate for lease or office use ( Fixed assets or investment properties) must be recorded separately in Account 154, the cost of construction of finished real estate products. Construction cost of fixed assets or investment property is recorded separately in Account 241 – Construction in progress.

– In case it is not possible to separately account or determine the proportion of construction costs for finished components of real estate, fixed assets or investment real estate, the accounting costs incurred directly related to the investment shall be recorded. construction investment on account 241. When the work or project is completed, handed over and put into use, the accountants shall base on the actual way of using assets to transfer the construction investment costs in accordance with the nature of the project. each asset class.

e) The provision for warranty expenses for construction and installation works shall be accounted into production and business expenses in each period, after the warranty period expires, if the reserved warranty amount is larger than the actual incurred costs, the increase shall be recorded. other income for the period. Otherwise, it shall be recorded in cost of goods sold in the period.

g) The costs of the construction contract cannot be recovered (for example: Not legally enforceable such as in doubt as to its validity, or the contract cannot be enforced by the customer. services…) must be recognized immediately as cost of goods sold in the period.

h) Revenues from the sale of surplus raw materials and materials and the liquidation of construction machinery and equipment at the end of construction contracts are recorded as a reduction in production and business expenses.

i) Accounting for direct materials:

- Direct materials and materials cost items include: Actual value of main materials, auxiliary materials, components or loose parts, circulating materials participating in constituting the construction product entity. , install or assist in the implementation and completion of the construction and installation volume (excluding auxiliary materials for machinery, construction vehicles and materials included in the general cost).

- Principles of accounting for direct materials and materials items: Raw materials and materials used for the construction of any work item must be directly calculated for the product of that work item on the basis of original documents according to the number actual quantity used and at actual ex-warehousing price (weighted average price; First-in, first-out, actual named price).

- At the end of the accounting period or when the work is completed, inventory the remaining materials at the place of production (if any) to record the deduction of the cost of raw materials and materials directly exported for the work.

- In the fact that the actual production and installation does not allow direct cost of raw materials and materials for each work or work item, the enterprise may apply the method of allocating materials to the users. according to reasonable criteria (proportion with consumption norms of raw materials, materials, ...).

k) Calculating expenses for using construction machines:

– The item of expenses for using construction machines includes: Expenses for construction machines to carry out the volume of construction and installation work by machines. Construction machinery is a type of machine directly serving construction and installation. Those are machines that are powered by steam, diesel, gasoline, electricity, etc. (including machines for construction and installation).

– Expenses for using construction machines include: recurrent costs and temporary costs. Regular expenses for the operation of construction machines, including: Costs of labor to operate the machine, service the machine,...; Cost of materials; Tools and equipment cost; Depreciation expenses of fixed assets; Expenses for services purchased from outside (small repair costs, electricity, water, car insurance, machinery,...); Other expenses in cash.

– Temporary expenses for the operation of construction machines, including: Expenses for major repair of construction machines (overhaul, overhaul, etc.) are not eligible to record an increase in the original cost of construction machines; Temporary construction costs for construction machines (tents, shacks, pedestals, railway tracks, etc.). The temporary cost of the machine may be incurred first (recorded to the Debit side of Account 242) and then gradually allocated to Debit to Account 154 “Work in progress"; Or incurred later, but must be included in production and construction costs in the period (due to the actual use of construction machinery in the period). In this case, the expense must be deducted in advance, credit to Account 352 “Reservation for payables”, Debit to Account 154, detailing the cost of using construction machines.

l) Accounting for the item of general production costs:

General production costs reflect the production costs of the team and construction site, including: Salary of workshop management staff, construction team and team; The deductions for social insurance, health insurance, unemployment insurance, occupational accident insurance and trade union fees are calculated according to the prescribed ratio on the salary payable of employees using construction machines and laborers. managers of workshops, groups and teams; Depreciation of fixed assets shared for team activities and other expenses related to team activities, etc.

6. Structure and contents of Account 154 – Production and business in progress

Debtor:

- Costs of direct materials, direct materials, direct labor costs, costs of using construction machines, manufacturing overheads incurred in the period related to product production and service performance costs. ;

– Costs of direct materials, direct materials, direct labor costs, costs of using construction machines, general production costs incurred in the period related to the cost of construction products or construction costs. construction and installation according to internal contract prices;

- Carrying forward the cost of production and business in progress at the end of the period (in case the enterprise accounts for inventories according to the periodic inventory method).

Yes Party:

– Actual production cost of finished products, which are stored, transported for sale, consumed internally or used immediately in construction activities;

- Cost of production of finished construction and installation products, partially handed over, or sold in whole during the period; or handed over to the main contractor for construction and installation (superior or internal); or the cost of finished construction and installation products waiting for consumption;

– Actual cost of completed service volume provided to customers;

- Value of recovered scrap, value of damaged products that cannot be repaired;

- Value of raw materials, materials and processed goods that have been re-entered into the warehouse;

– Reflecting the cost of raw materials, labor costs exceeding the normal level are not included in the value of inventory but must be included in the cost of goods sold of the accounting period. For enterprises that produce to order, or enterprises with a long product production cycle, the accounting period has recorded the fixed general production cost to account 154 until the product is completed. Fixed production overheads that are not included in the inventory value must be recorded in the cost of goods sold (Cr 154, Dr 632);

- Carrying forward the cost of production and business in progress at the beginning of the period (in case the enterprise accounts for inventory using the periodic inventory method).

Debit side balance: Unfinished production and business expenses at the end of the period.

Article 27. Account 155 – Finished products

1. Accounting principles

a) This account is used to record the current value and fluctuations of finished products of the enterprise. Finished products are products that have finished processing, manufactured by the enterprise's production departments or outsourced, and have been tested in accordance with technical standards and stored in warehouses.

In the entrustment export transaction, this account is only used at the entrusting party, not at the entrusting party (the party receiving the custody).

b) Finished products produced by the main and secondary production divisions of the enterprise must be evaluated according to the production cost (original price), including: Cost of raw materials, direct materials, costs direct labor, manufacturing overhead and other costs directly attributable to the production of the product.

c) The following costs are not included in the original price of finished products:

- Cost of raw materials, materials, labor costs and other production and business expenses incurred above the normal level;

- Costs of transportation and preservation of inventory, minus costs of transportation and preservation of inventories necessary for the next production process and costs of preservation during the purchase process;

- Selling expenses;

- Enterprise Cost Management.

d) Finished products outsourced for processing are assessed according to the actual cost of processing, including: Costs of direct materials, materials, outsourcing costs and other directly related costs. to the machining process.

dd) Calculation of the value of finished goods shipped from stock is done by one of three methods: the actual actual price method; Weighted average method after each entry or at the end of the period; First In - First Out method.

e) In case the enterprise accounts for inventory by the regular declaration method, if the daily accounting details of the daily import and export of finished goods are recorded at the accounting prices (which can be the planned cost or the import price of the finished goods). warehouses are uniformly regulated). At the end of the period, the accountant must calculate the actual cost of finished goods in stock and determine the coefficient of difference between the actual cost and the accounting price of the finished product (including the difference of the finished product at the beginning of the period) as a basis. determine the actual cost of finished goods imported and exported in the period (using the calculation formula mentioned in the explanation of Account 152 "Raw materials").

g) Detailed accounting of finished products must be done according to each warehouse, each type, group, and type of finished product.

2. Structure and contents of Account 155 – Finished Products

Debtor:

- Value of finished goods in stock;

- Value of surplus finished products when taking inventory;

- Carrying forward the actual value of finished goods in stock at the end of the period (in case the enterprise accounts for inventory using the periodic inventory method).

Yes Party:

- Actual value of finished goods shipped;

– Value of finished products lacking when taking inventory;

- Carrying forward the actual value of finished goods in stock at the beginning of the period (in case the enterprise accounts for inventory using the periodic inventory method).

Debit side balance: Actual cost of finished goods inventory at the end of the period.

Article 28. Account 156 – Goods

1. Accounting principles

a) This account is used to record the current value and the increase or decrease in goods of the enterprise, including goods in warehouses, stalls, and real estate goods. Goods are materials and products purchased by enterprises for the purpose of selling (wholesale and retail). In case the purchased goods are used both for sale and for production and business without clearly distinguishing between the two purposes of resale or use, they will still be recorded in Account 156 “Goods”.

In entrustment import and export transactions, this account is only used at the entrusting party, not at the entrusting party (the party receiving the custody).

b) The following cases are not reflected in Account 156 “Goods”:

- Goods are sold on behalf of, or kept on behalf of, other businesses;

– Raw materials, tools and tools purchased for production and business activities (record in Account 152 “Raw materials” or Account 153 “Tools and tools”);

– Finished products produced by the enterprise (record to Account 155 “Finished products”).

c) Accounting for import, export and inventory of goods on Account 156 is recorded according to the historical cost principle. Original price of purchased goods, including: purchase price, purchasing costs (transportation, loading and unloading, preservation of goods from the place of purchase to the enterprise warehouse, insurance costs, etc.), import tax, consumption tax especially, environmental protection tax (if any), VAT on imported goods (if not deductible). In case an enterprise buys goods for resale but for some reason it is necessary to process, preliminarily process, refurbish, and selectively classify to increase the value or sellability of the goods, the purchase value including processing and pre-processing costs.

– The original price of purchased goods is calculated according to each source of import.

- To calculate the value of goods out of stock, accountants can apply one of the following methods:

+ First-in-first-out method;

+ The actual actual price method;

+ Weighted average method after each entry or at the end of the period.

– Some special units (for example, supermarkets or similar) may apply the technique of determining the value of ending inventory using the retail price method. According to this method, the ex-warehousing value of goods is determined based on the selling price of the inventory minus the profit margin (determined by the enterprise) in a reasonable percentage. This percentage takes into account that items may be discounted to less than their original selling price. Typically, each retail division will use its own average percentage.

– The cost of purchasing goods in the period can be accounted directly to the cost of inventories or allocated to goods consumed in the period and goods in stock at the end of the period. The selection of criteria for allocation of costs for purchasing goods depends on the specific situation of each enterprise, but must be done on the principle of consistency.

d) In case of purchase of goods received together with replacement products, goods and spare parts (in case of damage), accountants must determine and record separately the products, goods and spare parts according to their value. reasonable. The value of warehoused goods is the price minus the value of products, goods, equipment and spare parts.

dd) Detailed accounting of goods must be made according to each warehouse, each type and each group of goods.

e) In case the enterprise is a commercial distributor, it is entitled to receive goods (without paying) from the manufacturer to advertise and promote for customers to buy goods from the manufacturer or distributor.

– When receiving goods from the manufacturer (without paying) used for promotion and advertising for customers, enterprises must keep track of the details of the quantity of goods in their internal management system and explain in the Presentation. Financial statements for goods received and quantities used to promote buyers.

– At the end of the promotion program, if the unused promotional goods are not returned to the manufacturer, the accountant shall record the value of the non-returned promotional goods as other income.

2. Structure and contents of Account 156 – Goods

Debtor:

– Purchase value of goods according to the purchase invoice (including non-refundable taxes);

– Cost of purchasing goods;

– Value of outsourced goods (including purchase price and processing cost);

- The value of the sold goods returned by the buyer;

- Value of goods discovered in excess during inventory;

– Value of real estate purchased or transferred from investment property;

- Carrying forward the value of inventory at the end of the period (in case the enterprise accounts for inventory using the periodic inventory method).

Yes Party:

- Value of goods released from warehouse for sale, delivery to agents or to dependent accounting units; outsource processing or use for production and business;

– Purchasing expenses allocated to goods sold in the period;

– Trade discount for purchased goods;

– Discounts on purchased goods are enjoyed;

- Value of goods returned to the seller;

- The value of goods found to be lacking during the inventory;

– Value of real estate sold or converted into investment property, owner-occupied property or fixed assets;

- Carrying forward the value of inventory at the beginning of the period (in case the enterprise accounts for inventory using the periodic inventory method).

Debit side balance: Original cost of inventory.

Article 29. Account 157 – Goods sent for sale

1. Accounting principles

a) Goods consigned for sale reflected in Account 157 are made according to the original cost principle. Only reflect to Account 157 “Consignment for sale” the value of goods and finished products sent to customers, agents, consignments, completed services and handed over to customers under business contracts. or orders, but not yet determined to have been sold (not yet counted as sales revenue in the period for goods, finished goods, and services provided to customers).

b) Goods and finished products reflected on this account are still under the ownership of the enterprise, the accountant must open a detailed book to monitor each type of goods, finished products, and each shipment from the time they are dispatched to the time they are shipped. identified as sold.

c) Do not reflect to this account the cost of shipping, loading and unloading, etc. to pay for the customer. Account 157 can open details to track each type of goods, finished products sent for sale, and services provided to each customer, to each agency receiving agent.

2. Structure and contents of Account 157 – Goods for sale

Debtor:

- Value of goods and finished products sent to customers, agents or consignments;

– Value of services provided to customers but not yet determined to be sold;

– At the end of the closing period, the value of goods and finished products sent for sale has not been determined to be sold at the end of the period (in case the enterprise accounts for inventory using the periodic inventory method).

Yes Party:

- The value of goods and finished products sent for sale or services provided is determined to be sold;

– Value of goods, finished products and services returned by customers;

- At the beginning of the closing period, the value of goods, finished products sent for sale or services provided has not been determined to be sold at the beginning of the period (in case the enterprise accounts for inventory using the periodic inventory method).

Debit side balance:

The value of goods, finished products, and services provided have not been determined to be sold in the period.

Article 30. Accounting principles for fixed assets, investment real estate and capital construction in progress

1. Fixed assets, investment real estate and capital construction in progress must be monitored, settled, managed and used in accordance with current law.

2. Accountants must track in detail the source of fixed assets in order to appropriately allocate depreciation according to the following principles:

- For fixed assets formed from loans or equity in service of production and business, depreciation shall be included in production and business expenses;

- For fixed assets formed from welfare funds, science and technology development funds, depreciation is recorded as a decrease in those funds.

3. Accountants classify fixed assets and investment properties according to their use purposes. Where an asset is used for many purposes, for example a mixed-use building that is used for both office and rental purposes and partly for sale, the accountant must estimate the fair value of the property. each part to be properly recognized for its intended use.

- Where a material part of an asset is used for a specific purpose different from the use purpose of the remaining parts, accounting may classify the whole according to the degree of materiality. assets according to that material part;

- In case there is a change in the use function of parts of the asset, the accountant may reclassify the asset according to the purpose of use according to regulations on each related asset.

4. Accounting for fixed assets, investment real estate and capital construction investment costs related to foreign currencies shall comply with the provisions of Article 52 of this Circular.

Article 31. Account 211 – Fixed assets

1. Accounting principles:

This account is used to record the current value and the increase or decrease in historical cost of all tangible fixed assets, intangible fixed assets owned by the enterprise and finance lease fixed assets.

1.1. Fixed assets are labor materials expressed in material or immaterial form, meeting the fixed asset standards as prescribed (Unless there are separate regulations for some specific assets).

a) Tangible fixed assets are assets in physical form that are held by an enterprise to be used for production, business or other activities in accordance with the recognition criteria for tangible fixed assets.

Tangible assets have an independent structure or many separate asset parts linked together into a system to perform one or a number of certain functions, if any part is missing, the The whole system cannot be operated, if all four criteria below are simultaneously satisfied, it is considered as a fixed asset:

- It is probable that future economic benefits will be derived from the use of the asset;

– The historical cost of assets must be determined reliably;

- Have a period of use from 1 year or more;

- Valid according to current regulations.

Where a system consists of many individual asset parts linked together, in which each component part has a different useful life and if a certain part is missing, the whole system can still perform its function. Its main activities, but due to the requirements of management and use of fixed assets, requires separate management of each asset part and each part of that asset if the same four criteria of fixed assets are satisfied. is treated as an independent tangible fixed asset.

For working animals or for products, if each animal simultaneously satisfies the four criteria of fixed assets, it is considered a tangible fixed asset.

For perennial orchards, if each piece of orchard, or tree simultaneously satisfies the four criteria of fixed assets, it is also considered a tangible fixed asset.

b) Intangible fixed assets are assets that have no physical form but can be determined, which are held by enterprises for use in production, business, service provision or leased to other entities and are suitable for use by enterprises. with the recognition criteria of intangible fixed assets.

When an intangible asset is simultaneously satisfied with 4 criteria specified at point a above, it is considered as an intangible asset.

c) Financial lease fixed assets

Finance lease: A form of lease in which the lessor transfers substantially all the risks and rewards of ownership of the asset to the lessee. Ownership of the property is transferable at the end of the lease term.

– Cases that often lead to a finance lease are:

+ The lessor transfers ownership of the property to the lessee at the end of the lease term;

+ At the commencement of the lease, the lessee has the option to buy back the leased asset at an estimated price lower than the fair value at the end of the lease term;

+ The minimum lease term must account for the majority of the economic life of the asset, even if there is no transfer of ownership;

+ At the commencement of the lease, the present value of the minimum lease payments constitutes (equivalent to) the fair value of the leased asset;

+ The leased property is of a specialized type that only the lessee can use without any major changes or repairs.

– A lease agreement is considered a finance lease if it meets at least one of the following three (3) conditions:

+ If the lessee cancels the contract and compensates the lessor for losses related to the contract cancellation;

+ Income or loss resulting from the change in the fair value of the residual value of the leased asset attached to the lessee;

+ The lessee has the ability to continue to sub-lease the asset after the expiration of the lease contract with a rent lower than the market rent. Particularly in the case of a lease that is a land use right, it is usually classified as an operating lease.

Financial lease fixed assets are fixed assets that are not yet owned by the enterprise but the enterprise has the obligations and responsibilities to manage and use them as the assets of the enterprise.

1.2. Value of fixed assets is recorded in Account 211 at cost. Accountants must keep track of the historical cost of each type and each fixed asset. Depending on the source of formation, the historical cost of fixed assets is determined as follows:

1.2.1. Tangible fixed assets

a) The historical cost of tangible fixed assets due to procurement includes: purchase price (except for trade discounts and rebates), taxes (excluding refundable taxes) and directly related expenses. The next step is to bring the asset into a ready-to-use state such as site preparation costs, initial shipping and handling costs, installation and commissioning costs (minus (-) product recalls , trial run scrap), specialist costs and other directly attributable costs. Interest expense incurred when purchasing completed fixed assets (fixed assets that can be used immediately without going through the process of installation, commissioning and construction investment) are not capitalized into the cost of fixed assets.

– Historical cost of tangible fixed assets purchased and paid for by deferred payment method: is the purchase price paid immediately at the time of purchase plus directly related costs up to the time of putting the asset into ready-to-use state. excluding refundable taxes). The difference between the purchase price of deferred payment and the purchase price of immediate payment is gradually allocated to production and business expenses according to the payment term.

– Historical cost of fixed assets being real estate: When purchasing real estate, the unit must separate the value of land use rights and assets on land according to the provisions of law. The value of assets on land is recorded as tangible fixed assets; The value of land use rights shall be accounted as intangible fixed assets or prepaid expenses, depending on the case according to the provisions of law.

b) Historical cost of tangible fixed assets formed by the completion of capital construction investment

- Historical cost of fixed assets by the method of contract assignment: is the final settlement price of the construction work as prescribed, other directly related costs and registration fee (if any). For fixed assets that are working animals or for products or perennial orchards, the historical cost is all actual expenses spent on that animal or garden from the time of formation until the date of establishment. put into operation, use and other directly related costs.

- Self-constructed or self-produced tangible fixed assets:

The original cost of self-constructed tangible fixed assets is the settlement value of the work when it is put into use. In case the fixed asset has been put into use but has not yet been settled, the enterprise shall base on the actual construction investment cost to record an increase in the historical cost of the fixed asset according to the provisional price. After the capital construction investment capital settlement is approved, if there is a difference compared to the temporarily calculated fixed asset value, the accounting will adjust the increase or decrease to the original cost of the fixed asset.

The original cost of self-manufactured tangible fixed assets is the actual cost of the tangible fixed assets plus (+) direct costs related to bringing the fixed assets to a ready-for-use state.

– In both cases above, the historical cost of the fixed asset includes installation and trial running costs minus the value of products recovered during the trial run and trial production. Enterprises are not allowed to include in the historical cost of tangible fixed assets internal profits and unreasonable expenses such as wasted raw materials, materials, labor or other expenses used in excess of the normal level during the period. build sequence or self-manufacture.

c) The historical cost of a tangible fixed asset purchased in the form of an exchange for a dissimilar tangible fixed asset or another asset, is determined according to the fair value of the received tangible fixed asset or the fair value of the given asset. change, after adjusting for additional payments or cash equivalents plus costs directly attributable to bringing the asset to its intended use (excluding refundable taxes).

The historical cost of a tangible fixed asset purchased in the form of an exchange for a similar tangible fixed asset, or which can be formed by being sold in exchange for ownership of a similar asset (similar assets are assets with similar uses). same line of business and of equivalent value). In this case no gain or loss is recognized during the exchange. The original cost of the fixed asset received is equal to the residual value of the exchanged fixed asset.

d) The historical cost of the allocated or transferred tangible fixed assets includes: The residual value in the accounting books of the fixed assets at the issuing enterprise, the transferring enterprise or the value according to the actual assessment of the Assignment Council. receive or organize a professional valuation in accordance with the law and directly related costs such as transportation, loading and unloading, costs of upgrading, installation, testing, registration fees (if any)... the receiver of the property must pay up to the time of putting the fixed asset into a state of readiness for use.

dd) The historical cost of tangible fixed assets received as capital contribution or in return is the value agreed upon by founding members and shareholders, or agreed upon by the enterprise and the capital contributor, or determined by a professional organization. price as prescribed by law and approved by founding members and shareholders.

e) Historical cost of fixed assets due to excess detection, sponsorship, donation or donation: is the value according to the actual assessment of the forwarding council or professional valuation organization; Expenses that the receiver must pay up to the time of putting the fixed asset into a state of readiness for use such as: Cost of transportation, loading and unloading, installation, test run, registration fee (if any).

1.2.2. Financial lease fixed assets

a) The historical cost of a finance lease fixed asset is recognized at the fair value of the leased asset or the present value of the minimum lease payment (in case the fair value is higher than the present value of the leased asset). minimum lease payments) plus the initial direct costs incurred in connection with the finance lease. If input VAT is deductible, the present value of the minimum rental payment does not include the amount of VAT payable to the lessor.

When calculating the present value of the minimum rental payment for a lease, a business can use the implicit interest rate, the rate of interest stated in the lease, or the marginal rate of return. lessee's loan.

b) The input VAT on non-deductible financial leased assets is recorded as follows:

– If input VAT is paid once at the time of recording the leased property, the historical cost of the leased asset includes VAT;

– If input VAT is paid in each period, it shall be recorded in production and business expenses in the period in accordance with the item of depreciation expense of the financial leased asset.

c) The financial lease debt recorded in Account 3412 does not include input VAT.

d) The value of fixed assets under operating lease is not recorded in this account.

1.2.3. Intangible fixed assets

The historical cost of an intangible fixed asset is the total cost that an enterprise has to spend to acquire an intangible fixed asset by the time it is put into use as expected.

a) Historical cost of intangible fixed assets due to immediate payment, purchase in the form of deferred payment, installment payment, purchase in the form of exchange, intangible fixed assets given, donated, donated or received as capital contribution to the joint venture , receive back the contributed capital, due to the discovery of excess…. is determined as specified at Point 1.2.1 Tangible fixed assets.

b) Intangible fixed assets formed from the exchange and payment of documents related to capital ownership of the entity, the historical cost of its fixed assets is the fair value of issued instruments related to the ownership rights of the entity. equity ownership of the entity.

c) The historical cost of an intangible fixed asset that is a land use right is the amount paid to obtain a lawful land use right (including expenses paid to the transferring organization or individual or expenses for compensation and ground clearance). , ground leveling, registration fee…) or as agreed upon by the parties when contributing capital. The determination of intangible fixed assets as land use rights must comply with relevant laws.

d) For actual costs incurred related to the deployment stage of intangible fixed assets: If the implementation results are deemed to satisfy the definition and recognition criteria of intangible fixed assets, the costs of the implementation phase is collected in Account 241 “Construction in progress” (2412). At the end of the implementation phase, the costs of forming the historical cost of intangible fixed assets in the implementation phase must be transferred to the debit side of account 2113 "Intangible fixed assets", if not eligible for recognition as intangible fixed assets, all actual costs incurred shall be transferred to production and business expenses in the period or allocated according to the provisions of law.

dd) Expenses incurred to bring future economic benefits to the enterprise, including: establishment costs, staff training costs, advertising expenses incurred in the period before the new enterprise's operation. establishment, relocation expenses are recorded as production and business expenses in the period according to current regulations.

e) Expenses related to intangible assets that have been recognized by the enterprise as an expense to determine business results in the previous period shall not be re-recorded to the historical cost of intangible fixed assets.

g) Trademarks, trade names, issuance rights, customer lists and similar items formed within the enterprise are not recognized as intangible fixed assets.

1.3. The calculation and depreciation of fixed assets shall comply with the provisions of current law.

For financial lease fixed assets, periodically, the lessee is responsible for calculating and depreciating fixed assets into production and business expenses depending on the division using the fixed asset on the basis of applying the depreciation policy. Depreciation is consistent with the depreciation policy of assets of the same type under its ownership. If it is not certain that the lessee will acquire title to the leased asset at the end of the lease term, the leased asset will be depreciated over the lease term if the lease term is shorter than the useful life of the leased asset.

1.4. Expenses related to intangible fixed assets incurred after initial recognition must be recorded as production and business expenses in the period, unless the following two conditions are simultaneously satisfied, an increase in the historical cost of intangible fixed assets shall be recorded. :

– Expenses that are likely to cause the fixed asset to generate future economic benefits more than the initially assessed performance level;

– Costs can be reliably determined and associated with specific intangible fixed assets.

Particularly for costs incurred after initial recognition related to externally purchased assets such as trademarks, issuance rights, customer lists and similar items are always recorded as expenses. production and business in the period.

1.5. In case of purchasing fixed assets including houses and architectural objects attached to land use rights, the value of houses and architectural objects must be separately determined to be recorded in the historical cost of tangible fixed assets (account 2111) and the value of the right to buy fixed assets. land use to record in historical cost of intangible fixed assets (Account 2113)

1.6. Enterprises only change the historical cost of fixed assets according to the provisions of the current financial mechanism.

1.7. All cases of increase or decrease of fixed assets must make a record of delivery and receipt, a record of liquidation of fixed assets and must follow the prescribed procedures.

1.8. Fixed assets must be tracked in detail for each fixed asset recording object, according to each type of fixed asset and the location of storage, use and management of fixed assets on the "Fixed Assets Book", specifically:

– Tangible fixed assets, including: buildings, structures, machinery, equipment, means of transmission, transmission, management equipment and tools, perennial plants, working animals and for products, fixed assets other tangible.

– Intangible fixed assets, including: Issuing rights; Copyright, patent; Brand; Software; Licenses and franchises; Other intangible fixed assets.

1.9. A decrease in fixed assets of an enterprise due to sale, liquidation, loss, discovery of a shortage during inventory, transfer to another enterprise, dismantling of one or several parts, etc. In all cases of reduction of fixed assets, the plan The accountant must complete the procedures, correctly determine the losses and income (if any). Based on relevant documents, accountants shall record books on a case-by-case basis as follows:

– In case of sale of fixed assets used for production and business: Fixed assets for sale are usually fixed assets that are not needed or are found to be inefficient in use. When selling fixed assets, they must complete all necessary procedures as prescribed by law.

Liquidated fixed assets are damaged fixed assets that cannot be continued to be used, fixed assets that are technically backward or not suitable for production and business requirements. When having liquidated fixed assets, the enterprise must issue a liquidation decision and set up a council for liquidation of fixed assets. The Fixed Asset Liquidation Council is responsible for organizing the liquidation of fixed assets in accordance with the prescribed order and procedures and making a "Minute on liquidation of fixed assets".

Based on the minutes of liquidation and documents related to the receipts and expenditures of the liquidation of fixed assets, accounting records are recorded as in the case of sale of fixed assets.

1.10. Any case of excess or shortage of fixed assets must be traced to the cause. Based on the "Minutes of inventory of fixed assets" and conclusions of the Inventory Council to make accurate and timely accounting, according to each specific reason:

a) Fixed assets discovered in excess:

– If fixed assets are discovered in excess due to being left out of the books (not yet recorded), the accountant must base on the fixed asset records to record the increase in fixed assets on a case-by-case basis.

- If the excess detected fixed assets are identified as fixed assets of other enterprises, they must immediately notify the enterprise that owns such assets. In the meantime, accountants must base themselves on inventory documents, temporarily monitor and keep them.

- If the owner of the excess fixed asset cannot be identified, an increase in other income shall be recorded according to the fair value of the asset.

b) Fixed assets found to be deficient must be traced to the cause, identified responsible person and handled according to regulations.

Based on the approved "Minutes of handling shorted fixed assets" and fixed asset records, accountants must determine the historical cost and amortization value of such fixed assets as a basis for recording a decrease in fixed assets and material handling of the remaining value of such fixed assets. Fixed assets. It is up to the processing decision to account for the relevant accounts.

2. Structure and contents of Account 211 – Fixed assets

Debtor:

– The historical cost of fixed assets increases due to purchase, exchange of fixed assets, completion of construction, handover and putting into use, capital contribution from joint venture units, donations, aid…

– Adjustment to increase the historical cost of fixed assets due to construction, installation, retrofit or renovation or upgrading, due to re-evaluation.

Yes Party:

– The historical cost of fixed assets decreases due to transfer to another entity, exchange for fixed assets, sale, liquidation or capital contribution to another entity…

– The historical cost of fixed assets decreases due to the removal of one or several parts due to re-evaluation to reduce the historical cost.

Debit side balance:

Historical cost of current fixed assets at the end of the period in the enterprise.

Account 211 – Fixed assets has 3 level 2 accounts:

– Account 2111 – Tangible fixed assets: Used to reflect the current value and fluctuations of all tangible fixed assets owned by the enterprise at cost.

– Account 2112 – Financial lease fixed assets: Used to record the historical cost of the long-term leased fixed assets of the enterprise under the finance lease method.

- Account 2113 – Intangible fixed assets: Used to reflect the current value and fluctuations of all intangible fixed assets under the ownership of the enterprise at cost.

Article 32. Account 214 – Depreciation of fixed assets

1. Accounting principles

a) This account is used to record the increase, decrease in depreciation value and accumulated depreciation value of fixed assets and investment real estate (IP) in the course of use due to depreciation of fixed assets and investment properties. and other increases and decreases in depreciation of fixed assets and investment properties.

b) In principle, all fixed assets and investment real estate used for lease of enterprises related to production and business (including unused, unused, awaiting liquidation) must be depreciated according to regulations. current. Depreciation of fixed assets used in production and business and depreciation of investment properties shall be accounted into production and business expenses in the period; Depreciation of fixed assets and investment properties that have not been used, are not needed, or are awaiting liquidation shall comply with current law provisions. For fixed assets used for welfare purposes, it is not required to depreciate and calculate the cost of production and business, but only calculate the depreciation of fixed assets and account for the decrease in the source of such fixed assets.

c) Based on the provisions of law and management requirements of the enterprise to choose one of the methods of calculating and depreciating depreciation according to the provisions of law suitable for each fixed asset and investment property in order to stimulate the development. production and business, ensuring quick, complete and appropriate capital recovery in line with the enterprise's ability to cover costs.

The depreciation method applied to each fixed asset and investment property must be consistent and can be changed when there is a significant change in the method of recovering economic benefits of the fixed asset and investment property.

d) Depreciation period and method of depreciation of fixed assets must be reviewed at least at the end of each financial year. If the estimated useful life of an asset differs significantly from previous estimates, the amortization period should be changed accordingly. The method of depreciation of fixed assets is changed when there is a significant change in the method of estimating recovery of economic benefits of fixed assets. In this case, depreciation expense must be adjusted for the current year and subsequent years and must be disclosed in the financial statements.

dd) For fixed assets that have been fully depreciated (with full capital recovered) but are still used in production and business activities, they are not allowed to continue to depreciate. For fixed assets that have not been fully depreciated (not yet fully recovered) but are damaged and need to be liquidated, the causes and responsibilities of collectives and individuals to handle compensation and the remaining value of the fixed assets must be determined. Not yet recovered or not compensated must be compensated with the proceeds from the liquidation of the fixed asset itself, the compensation amount decided by the business leaders. If the proceeds from liquidation and compensation are not enough to cover the remaining value of the unrecovered fixed assets, or the value of the lost fixed assets, the remaining difference is considered a loss on liquidation of fixed assets and recorded in expenses. is different.

e) For intangible fixed assets, it must depend on the effective time to depreciate from the time the fixed asset is put into use (according to contracts, commitments or decisions of competent authorities).

g) For financial lease fixed assets, in the course of use, the lessee must depreciate during the lease period according to the contract and calculate it into production and business expenses, ensuring full capital recovery.

h) For investment property for operating lease, it must be depreciated and recorded in the cost of goods sold in the period. Enterprises can rely on owner-occupied properties (fixed assets) of the same type to estimate the depreciation period and determine the depreciation method of investment property. In case the investment property is held for an increase in price, the enterprise does not depreciate it but determines the loss due to a decrease in value. When there is solid evidence that the investment property price increases again, the enterprise may increase the historical cost of the investment property but not exceed the original cost of the investment property.

2. Structure and contents of account 214 – Depreciation of fixed assets

Debtor: Depreciation value of fixed assets and investment real estate decreases due to liquidation, sale, transfer of fixed assets, transfer to dependent accounting units, investment capital contribution to other units, etc.

Yes Party: Depreciation value of fixed assets, investment property increases due to depreciation of fixed assets, investment real estate, etc.

Credit balance: Accumulated depreciation of existing fixed assets and investment properties at the end of the period in the enterprise.

Account 214 – Depreciation of fixed assets, there are 4 tier 2 accounts:

– Account 2141 – Depreciation of tangible fixed assets: Reflects the depreciation value of tangible fixed assets in the course of use due to depreciation of fixed assets and other increases and decreases in depreciation of tangible fixed assets.

– Account 2142 – Depreciation of financial lease fixed assets: Reflects the depreciation value of the finance lease fixed asset during its use due to depreciation of the finance lease fixed asset and other increases and decreases in depreciation of the finance lease fixed asset.

– Account 2143 – Depreciation of intangible fixed assets: Reflects the depreciation value of intangible fixed assets in the course of use due to depreciation of intangible fixed assets and other increases and decreases in depreciation of intangible fixed assets.

– Account 2147 – Depreciation of investment property: This account reflects the value of depreciation of the investment property during the operating lease and other increases and decreases in the depreciation of the investment property.

Article 33. Account 217 – Investment real estate

1. Accounting principles

1.1. This account is used to record the current amount and the increase or decrease in investment property of the enterprise at cost, which is tracked in detail by each object similar to fixed assets. Investment real estate includes: The right to use land, house or part of a house or the whole house and land, infrastructure held by the owner or lessee of the asset under a financial lease for the purpose of profiting from lease or wait for a price increase without having to:

– Use in the production, supply of goods or services or use for management purposes; or

- Selling in the normal production and business period.

1.2. This account is used to record the value of real estate that is eligible to be recognized as investment property. Not reflected in this account the value of real estate purchased for sale in the normal course of business or built for sale in the near future, owner-occupied property, real estate in the process of construction, etc. unfinished construction for future use in the form of investment property.

Investment property is recognized as an asset that must simultaneously satisfy the following two conditions:

– It is certain that future economic benefits will be obtained;

The historical cost must be determined reliably.

1.3. Investment properties are recognized in this account at cost. The historical cost of an investment property is all expenses (cash or cash equivalents) spent by the enterprise or the fair value of other amounts exchanged to obtain the investment property by the time of purchase or construction of the investment property is completed. there.

– Depending on each case, the historical cost of the investment property is determined as follows:

+ The historical cost of the purchased investment property includes the purchase price and costs directly related to the purchase, such as: consulting service fees, registration fees and other related transaction costs, etc.

+ In case of purchase of investment property with payment by deferred payment method, the historical cost of the investment property is recorded at the purchase price paid immediately at the time of purchase. The difference between the purchase price of deferred payment and the purchase price of immediate payment is charged to financial expenses according to the payment term, unless such difference is included in the historical cost of the investment property;

+ The historical cost of self-constructed investment property is the actual cost and directly related costs of the investment property up to the date of completion of the construction work;

– The following costs are not included in the historical cost of the investment property:

+ Initial costs (except where these costs are necessary to bring the investment property into a ready-to-use state);

+ Expenses for putting the investment property into operation for the first time before the investment property reaches its expected normal operating state.

1.4. Expenses related to investment property incurred after initial recognition must be recognized as production and business expenses in the period, unless this expense is likely to cause the investment property to generate economic benefits in the future. futures more than the initially assessed operating level, the historical cost of investment property is recorded as an increase.

1.5. During the operating lease, the investment property must be depreciated and recorded in the cost of goods sold in the period (including during the lease period). Enterprises can rely on owner-occupied properties of the same type to estimate the depreciation period and determine the depreciation method of investment property.

– In case the enterprise recognizes revenue for the entire amount received in advance from the lease of investment property, the accountant must fully estimate the cost price corresponding to the recognized revenue (including the pre-calculated depreciation amount). ).

The cost of investment property for lease includes: Depreciation of investment property and other directly related costs to the lease, such as: Outsourcing service costs, salary costs for employees directly managing the property. properties for lease, depreciation expenses of ancillary works serving the leasing of investment real estate.

1.6. Enterprises do not depreciate investment property held for price increase. Where there is solid evidence that the investment property has declined in value from the market value and the impairment can be measured reliably, the enterprise is assessed to reduce the cost of the investment property and record the loss in cost of goods. sale (similar to the provision for real estate).

1.7. For investment properties that are purchased but must be built, renovated or upgraded before being used for investment purposes, the value of the property, procurement costs and costs for the construction and renovation process Investment property upgrade is reflected in Account 241 "Construction in progress". When the process of construction, renovation and upgrading is completed, the cost of the completed investment property must be determined to be transferred to account 217 “Investment properties”.

1.8. The change from owner-occupied property to investment property or from investment property to owner-occupied property or inventory is only when there is a change in the purpose of use as in the following cases:

– Investment property is converted into owner-occupied property when the owner begins to use the property;

– Investment property turns into inventory when the owner starts to develop it for the purpose of selling;

– The property used by the owner is converted into investment property when the owner terminates the use of such property and when the other party leases it to operate;

– Inventory turns into investment property when the owner begins to lease it to another party;

– Construction real estate will be converted into investment real estate when the construction phase is completed, handed over and put into investment.

The conversion of the use purpose between the investment property and the owner-occupied property or inventory does not change the carrying amount of the converted asset and does not change the historical cost of the property in determining valuation or to prepare financial statements.

1.9. When the enterprise decides to sell an investment property without the repair, renovation and upgrading period, the enterprise will continue to record it as investment property on account 217 “Investment property” until such investment property is sold without transferring. into inventory.

1.10. Revenue from the sale of investment property is recognized as the selling price exclusive of VAT (in the case of an enterprise paying VAT calculated by the deduction method) or the total payment price (in the case of an enterprise paying VAT by the deduction method). direct method). In case of sale by the method of deferred payment, the revenue is initially determined according to the immediate selling price. The difference between the total amount payable and the immediate selling price is recognized as unrealized interest revenue.

1.11. Record reduction of investment property in the following cases:

– Change of use purpose from investment property to inventory or owner-occupied property;

- Sale and liquidation of investment real estate;

At the end of the financial lease term, return the investment property to the lessor.

1.12. Enterprises build a portfolio of investment properties held for lease or waiting for price appreciation and implement a policy of depreciation or loss determination consistently during the financial year.

2. Structure and contents of Account 217 – Investment properties

Debtor: Original cost of investment property increased during the period.

Yes Party: The cost of investment property decreased during the period.

Debit side balance: Existing historical cost of investment property at the end of the period.

Article 34. Account 228 – Capital contribution to other entities

1. Accounting principles

1.1. This account is used to record capital contribution investments in other entities and the recovery of capital contributions in other entities of the enterprise.

Investments contributed as capital in other units of the enterprise include:

a) Capital contributions to joint ventures and associates:

– This account is used to record all capital contributed to joint ventures and associates; the situation of recovery of investment capital in joint ventures and associations. This account does not reflect transactions in the form of a business cooperation contract without a legal entity.

– A joint venture company is established by joint venture capital contributors having joint control over the financial and operating policies and is an independent accounting entity. The joint venture company must organize its own accounting work in accordance with current accounting laws, be responsible for controlling assets, liabilities, revenue, other income and development expenses. born in your unit. Each joint venture capital contributor is entitled to a portion of the joint venture's performance results as agreed in the joint venture contract.

– An investment is classified as an investment in an associate when the investor holds directly or indirectly from 20% to less than 50% of the voting rights of the investee without other agreement or the investor has significant influence over the investee.

- When the investor no longer has joint control, the investment in the joint venture must be reduced; When there is no longer significant influence or the percentage of voting rights holdings on the investee is not guaranteed according to the ratio specified above, the investment in the associate must be recorded as a decrease.

– Expenses directly related to the sale or liquidation of investments in joint ventures and associates are recognized as financial expenses in the period in which they are incurred.

- When liquidating, transferring, selling or recovering capital contributions to joint ventures or associates, based on the recovered asset value, the contributed capital shall be recorded as a decrease in the amount of contributed capital. The difference between the fair value of the recoverable and the carrying amount of the investment is recognized as financial income (if profit) or finance expense (if loss).

b) Other investments: Includes investments in equity instruments of another entity but without joint control, without significant influence over the investee, and other investments such as gold and silver. , precious metals and gems are not classified as inventory.

1.2. Investment fees are stated at cost, including purchase price plus (+) costs directly related to the investment (if any), such as: Transaction, brokerage, consulting, audit, fees, taxes and banking fees... In case of investment with non-monetary assets, the cost of the investment is recognized at the fair value of the non-monetary asset at the time of arising.

1.3. In case the investor repurchases the capital contribution in the joint venture or associate: At the acquisition date, the investor determines and reflects the cost of the investment in the joint venture or associate, including: at the date of exchange of assets exchanged, liabilities incurred or assumed, and equity instruments issued by the acquirer in exchange for joint control in the joint venture, and significant influence in the associate plus (+) the costs directly related to the acquisition of the capital contribution in the joint venture or associate.

1.4. Investments can be made in the following forms:

a) Investment in the form of capital contribution to another entity (funded by the investee): In this form, the assets of the capital contributor are recognized in the statement of financial position of the contributed party. .

b) Investment in the form of buying back the contributed capital in another entity (buying back the owner's capital): In this form, the property of the buyer (investor, transferee of contributed capital) is transferred. to the seller (the transferor of the contributed capital) which is not recognized in the statement of financial position of the issuer of the equity instrument (the investee).

1.5. When making investments in non-monetary assets, investors must base on the form of investment to apply appropriate accounting methods, specifically:

a) If the investment is in the form of capital contribution with non-monetary assets, the investor must re-evaluate the assets used for capital contribution on the basis of agreement. The difference between the carrying amount or the carrying amount and the revaluation value of the asset contributed as capital is accounted for as other income or other expense.

b) If the investment is in the form of buying back the capital contribution of another entity and paying the transferor of the capital with non-monetary assets:

– If the non-monetary asset used for payment is inventory, the investor must account it as the transaction of selling inventory in the form of barter (recognizing revenue, cost of inventory to be exchanged). in exchange for the purchased capital);

- If the non-monetary assets used for payment are fixed assets or investment real estate, the investor must make accounting such as transactions of selling fixed assets, investment real estate (recording revenue, other income, cost price, other expenses...);

– If the non-monetary assets used for payment are investments in equity instruments (shares) or debt instruments (bonds, receivables…) of other entities, investors must account as transactions of liquidation and sale of investments (recognition of profits and losses in financial income or financial expenses).

1.6. The accountant must open a detailed book to track each investment in another entity for each subject. The time to record capital contributions to other entities is the time when investors officially have ownership rights, specifically as follows:

– Listed securities are recorded at the time of order matching (T+0);

– Unlisted securities, investments in other forms are recognized at the time of official ownership in accordance with the law.

1.7. Investors must fully and promptly account the dividends and profits distributed in the separate financial statements at the time of receiving the right to receive them. Dividends and profits distributed in some cases are accounted as follows:

a) Dividends and profits distributed in cash or non-monetary assets for the period after the date of investment shall be accounted into revenue from financial activities at their fair value at the date of receipt;

b) Dividends and profits distributed in cash or non-monetary assets for the period prior to the date of investment are not accounted into revenue from financial activities but reduced in value of the investment.

c) In case of receiving stock dividends, the following principles shall be followed: only the number of shares received shall be monitored in the notes to the financial statements, no increase in investment value and financial income shall be recorded. .

1.8. Cost of financial investments upon liquidation or sale is determined by the weighted average method for investments in each object.

1.9. When preparing the financial statements, the enterprise must determine the value of the lost investment in order to make provision for the loss of investment in other entities.

2. Structure and contents of Account 228 – Capital contribution to other entities:

Debtor:

– The amount of capital contributed to the joint venture has increased to the joint-controlled business establishment;

– The original cost of the investment in the associate increases;

- The value of other investments increases.

Yes Party:

- The amount of capital contributed to the joint venture in the joint-controlled business establishment decreases due to the withdrawal or transfer, resulting in the loss of joint control over the investee;

– The original cost of the investment in the associate decreases due to the return of the investment capital or the receipt of benefits other than the shared profit;

– The original cost of the investment in the associate decreases due to the sale or liquidation of all or part of the investment and no longer has significant influence on the investee;

- The value of other investments decreased.

Debit side balance:

– Amount of capital contributed to joint ventures in joint-controlled business establishments remaining at the end of the period;

– The original cost of the investment in the associate currently held at the end of the period;

– Value of other investments available at the end of the period.

Account 228 – Investment to contribute capital to other entities, has 2 tier 2 accounts:

– Account 2281 – Investment in joint ventures and associates: Reflect the entire capital contributed to joint ventures and associates; the return of investment capital in joint ventures and associates.

– Account 2288 – Other investments: Reflects the available value and fluctuations in increases or other investments such as gold, silver, precious metals… are not classified as inventory.

Article 35. Accounting for business cooperation contract transactions

1. Accounting principles

1.1. Business cooperation contract (BCC) is a contractual agreement between two or more parties to jointly carry out economic activities without forming an independent legal entity. This activity may be jointly controlled by the partners under the joint venture agreement or controlled by one of the participating parties.

1.2. BCC can be done in the form of jointly building assets or cooperating in several business activities. The parties involved in the BCC can agree to share revenue, share products or share after-tax profits.

1.3. In all cases, when receiving money, assets of other parties contributing to BCC activities, the receiving party must account it as a liability, not recognized in equity.

1.4. For BCC in the form of jointly controlled assets

a) Assets jointly controlled by the parties to the joint venture are those acquired, constructed, and used for the purposes of the joint venture and to the benefit of the parties to the joint venture. in accordance with the Joint Venture Agreement. Joint venture parties are recognized in their financial statements as part of the value of jointly controlled assets.

b) Each party to a joint venture shall receive products or revenues from the use and exploitation of jointly controlled assets and bear a portion of the costs incurred as agreed in the contract.

c) The parties to the joint venture must open detailed accounting books on the same system of their accounting books to record and reflect in their financial statements the following contents:

– The capital contribution to jointly controlled assets, classified according to the nature of the assets;

– Liabilities arising separately from each party contributing capital to the joint venture;

– The share of liabilities arising jointly with other venture capital contributors from the joint venture's activities;

– Incomes from the sale or use of the share of the products divided by the joint venture together with the share of expenses incurred from the activities of the joint venture;

– Expenses incurred in connection with capital contribution to the joint venture.

For fixed assets and investment real estate, when contributed as capital to the BCC and not transferred from the capital contributor to the joint ownership of the parties, the receiver of the property shall keep track of it as an asset to keep, not record the increase in assets and owner's contributed capital; The asset contributor does not record a decrease in assets in the accounting books, but only tracks the details of the location, location and place of the asset.

For fixed assets and investment real estate contributed as capital with the ownership transfer from the capital contributing party to common ownership, in the process of building jointly controlled assets, the party bringing the contributed assets must record a decrease in the assets in the capital contribution book. accounting and recognition of asset value in construction in progress. After the jointly controlled assets are completed, handed over and put into use, based on the value of the divided assets, the parties shall record an increase in their assets in accordance with the intended use.

1.5. For BCC as a jointly controlled business

a) Business cooperation contract in the form of jointly controlled business activities is joint venture activities without establishing a new business establishment. Joint venture parties have obligations and enjoy benefits as agreed in the contract. The activities of the joint venture contract are performed by the capital contributors together with other normal business activities of each party.

b) The business cooperation contract stipulates that expenses incurred separately for jointly controlled business activities shall be borne by each joint venture party. For general expenses (if any), based on the agreements in the contract to be divided among the capital contributors.

c) The joint venture parties must open accounting books to record and reflect in their financial statements the following contents:

– Assets contributed to the joint venture capital and under the control of the joint venture capital contributor;

– Accounts payable;

- Dividend revenue from the sale of goods or provision of services by the joint venture;

- Expenses to be borne.

d) When a joint venture incurs common expenses, it must open an accounting book to record and collect all such common expenses. Periodically, based on the agreements in the joint venture contract on the allocation of common expenses, the accountant shall make a table of general cost allocation, certified by the joint venture parties, and assign one copy to each party to keep (the original). ). The table of distribution of general expenses together with legal original documents is the basis for each joint venture to account for the general expenses allocated from the contract.

dd) Where the joint venture contract stipulates the division of products, periodically as agreed in the joint venture contract, the joint venture parties must make a product division table for the capital contributors and have the quantity confirmed by the parties. Product specifications are divided from the contract, each party keeps one copy (the original). Every time a product is actually delivered, the joint venture parties must make a product delivery note (or delivery note). The product delivery note is the basis for the joint venture parties to record and monitor the accounting books and is the basis for contract liquidation.

e) In case BCC incurs common expenses and revenue that the contracting parties must bear or enjoy, the parties to the joint venture must comply with the same accounting regulations as in the case of business activities. jointly controlled business.

1.6. In case BCC divides profit after tax

a) BCC shares after-tax profits, usually BCC in the form of jointly controlled or single-party activities. In case BCC divides after-tax profit, the parties must appoint a party to accounting all transactions of BCC, record revenue and expenses, separately monitor BCC's business results and finalize taxes. When deciding to sign the BCC in this form, the parties must consider the risks that may be borne by:

– Some expenses are not fully accounted as taxable expenses because there is no transfer of assets between the parties, for example:

+ Depreciation costs of some fixed assets will not be accepted by the tax authority because the party participating in the BCC does not carry out the procedures for transferring ownership to the party performing the accounting and tax finalization for the BCC;

+ Some expenses of the parties are not accepted by the tax authorities because the input invoices do not bear the name of the accountant and tax finalizer of BCC;

+ Some expenses incurred at the BCC party cannot be transferred to the tax accountant and finalization party due to legal barriers, for example, the BCC party has an invoice to pay land use levy but the law does not allow it. allows the party to incur land use levy costs for the accounting and finalization of land lease tax, so the cost of land rental is not included in BCC's expenses.

Policy risks:

+ The accountant and tax finalizer for BCC may incur accumulated losses, but the results of BCC activities alone are profitable. In this case, instead of offsetting the profit from BCC with the loss of other activities, the enterprise still has to pay CIT on BCC; If BCC has a loss but other activities are profitable, the enterprise may not be able to offset the loss corresponding to the share in the BCC;

+ For other parties, if the fixed assets are put into use for BCC's operations, it may not be possible to calculate the depreciation expense which is a deductible expense at the enterprise because it is not used for production and business activities at the enterprise. (doesn't match the revenue of other activities).

b) Where the BCC stipulates the distribution of profit after tax, the party performing the accounting and tax finalization must base on the nature of the contract to make appropriate accounting according to the following principles:

– In case BCC stipulates that other parties participating in BCC are entitled to a fixed profit that does not depend on the business results of the contract, although the legal form of the contract is BCC, the essence of the contract is is rental property. In this case, the accounting and tax finalization party is actually the party with the right to operate and govern the activities of BCC, must apply the lease accounting method for the contract, record the payables to the parties. Another is the cost to determine business results in the period, specifically:

+ Record all revenue, expenses and profit after tax of BCC on its income statement;

+ Record all of BCC's profit after tax in the item "Undistributed profit after tax" of the financial statement.

+ Other parties recognize rental income from BCC.

– In case BCC stipulates that other parties in BCC are only entitled to share profits if BCC's operating results are profitable and at the same time suffer losses, then although BCC's legal form is to share profits after tax, The essence of BCC is to divide revenue and expenses, the parties usually have the right, conditions and ability to jointly control the operation and cash flow of BCC. The accountant and tax finalizer must apply the revenue division BCC accounting method to record revenue, expenses and business results in the period, and at the same time provide proof of tax settlement to other parties. specific:

+ Record in the income statement the revenue, expenses and profit corresponding to the share as agreed by BCC; The tax finalizer shall provide copies of records and documents on the fulfillment of obligations to the state budget of the BCC to the parties in the BCC to serve the tax finalization of other parties in the BCC;

+ Undistributed after-tax profit of the statement of financial position only includes the corresponding profit after tax of each beneficiary.

+ Other parties are recorded in the income statement, the portion of revenue and expense corresponding to their share from the BCC, and report to the tax authority on the fact that this revenue and expense has been realized. tax liability as a basis for adjusting the payable CIT amount.

1.7. The difference between the value of contributed capital and the fair value of the assets received is recognized in other income or other expenses.

Article 36. Account 229 – Provision for property loss

1. Accounting principles

1.1. This account is used to record the current amount and the increase or decrease in provisions for property loss, including:

a) Provision for devaluation of trading securities: is the provision for loss in value that may occur due to devaluation of securities held by the enterprise for trading purposes.

b) Provision for loss of investment in other entities: is the provision for loss due to the loss of the enterprise receiving the investment capital, leading to the investor's possibility of losing capital or the provision due to the decrease in value of the investments. investment.

– For investments in joint ventures, associates, investors only make provisions when the joint ventures or associates suffer losses, leading to the investor's possibility of losing capital according to current regulations.

– For an investment that the investor holds for a long time (not classified as a trading security) and the investor does not hold control, there is no significant influence over the investee, the preparation of a Rooms are made as follows:

+ For an investment in listed shares or the fair value of the investment can be determined reliably, the provision is based on the market value of the shares (similar to the provision for diminution in value of trading securities). );

+ For investments whose fair value cannot be determined at the reporting time, provision is made based on the investee's loss (allowance for investment losses in other entities).

c) Provision for bad debts: is the provision for the value of receivables and accounts of similar nature, which are difficult to recover.

d) Provision for devaluation of inventories: is the provision for devaluation of inventories when there is a decrease in net realizable value compared to the original cost of inventories.

1.2. Principles of accounting for provision for devaluation of trading securities

a) The enterprise is entitled to make provision for possible loss of value when there is solid evidence that the market value of securities held by the enterprise for trading purposes has decreased. compared to book value.

b) Conditions, grounds and levels for setting up or reversing provisions comply with the provisions of law.

c) The setting up or reversal of provision for devaluation of trading securities is made at the time of preparation of the financial statements:

– If the amount of provision to be made this year is higher than the balance of provision recorded in the accounting books, the enterprise shall make additional deductions for that difference and record it in financial expenses in the period.

– If the amount of provision to be made this year is lower than the balance of the provision made in the previous year that has not been used up, the enterprise shall reverse the difference and record a reduction in financial expenses.

1.3. Principles of accounting for provision for loss of investments in other entities

a) For the invested entity being the parent company, the basis for the investor to make provision for investment loss in another entity is the consolidated financial statements of that parent company. For invested units that are independent enterprises without subsidiaries, the basis for the investor to make provision for loss of investment in other entities is the financial statement of such investee.

b) The setting up and reversal of provision for loss of investments in other entities is made at the time of preparation of the financial statements for each investment according to the following principles:

– If the amount of provision to be made this year is higher than the balance of provision recorded in the accounting books, the enterprise shall make additional deductions for that difference and record it in financial expenses in the period.

– If the amount of provision to be made this year is lower than the balance of the provision made in the previous year that has not been used up, the enterprise shall reverse the difference and record a reduction in financial expenses.

c) Loss of investments in other entities, after offsetting with the provision made, is recorded in financial expenses in the reporting period.

1.4. Principles of accounting for provision for bad debts:

a) When preparing financial statements, enterprises determine bad debts and other amounts similar in nature to receivables that are not recoverable in order to set up or reverse the provision for receivables. hard-earned revenue.

b) An enterprise makes provision for bad debts when:

- Overdue receivables stated in economic contracts, debt covenants, contractual commitments or debt commitments, which the enterprise has claimed many times but has not yet collected, even if there is no margin the debt reconciliation or the debtor does not sign for the debt or absconds or goes missing. The determination of the overdue period of a receivable that is determined to be bad for which provision is made is based on the principal repayment period according to the original purchase and sale contract, excluding the debt extension between the parties. beside.

– Receivables that are not yet due for payment but the debtor has fallen into bankruptcy or is undergoing procedures for dissolution, missing or absconding.

c) Conditions and grounds for making provision for bad debts: Comply with current law provisions.

d) The setting up or reversal of provision for doubtful debts is made at the time of preparation of the financial statements.

– In case the provision for doubtful debts made at the end of this accounting period is larger than the balance of provision for doubtful debts recorded in the accounting books, the larger difference is recorded as an increase in provision and an increase in expenses. business management fees.

– In case the provision for doubtful debts made at the end of this accounting period is smaller than the balance of the provision for doubtful debts recorded in the accounting books, the smaller difference shall be reversed and recorded as a decrease in the provision and recorded in the accounting books. reduce business administration costs.

e) For bad receivables that have persisted for many years, the enterprise has tried all methods to collect the debt but still cannot collect the debt and determines the debtor is really insolvent, the enterprise shall write off bad debts from the accounting books. The write-off of bad debts must comply with the provisions of law and the enterprise's charter. This debt is tracked in the corporate governance system and presented in the notes to the financial statements. If, after the debt has been written off, the enterprise can reclaim the settled debt, the collected debt will be recorded in account 711 “Other income”.

g) For losses on receivables, if provision has been made for bad debts, the enterprise shall use the provision for bad debts already set up to compensate, if the provision already made If the establishment is not enough to cover the losses, the remaining losses shall be included in the administrative expenses of the enterprise.

1.5. Accounting principles for inventory devaluation

a) Enterprises must make provision for devaluation of inventories when there are reliable evidences of impairment of net realizable value compared to the original cost of inventories. Provision is an amount anticipated in advance to include in production and business costs the part of the value that is lower than the book value of inventory and is intended to compensate for actual losses caused by the material. Investments, products, and inventories are reduced in price.

b) Provision for devaluation of inventories is made at the time of preparation of financial statements. The provision for devaluation of inventories must be made in accordance with current regulations.

c) The provision for devaluation of inventories must be calculated according to each type of inventory materials, goods and products. For services in progress, the provision for devaluation of inventories must be calculated for each type of service with a separate price.

d) Net realizable value of inventory is the estimated selling price of the inventory in the normal production and business period minus (-) the estimated cost of completing the product and the estimated cost. necessary for their sale.

dd) When preparing the financial statements, based on the quantity, original cost, and net realizable value of each type of supplies, goods, and services in progress, determine the provision for decrease in value. inventory price to be established:

– In case the provision for devaluation of inventories to be made at the end of this accounting period is larger than the provision for devaluation of inventories recorded in the accounting books, the larger difference is recorded as an increase in provision and an increase in value. capital goods sold.

– In case the provision for devaluation of inventories that must be made at the end of this accounting period is smaller than the provision for devaluation of inventories recorded in the accounting books, the smaller difference shall be reversed and recorded as a decrease in the provision and recorded in the accounting records. reduce cost of goods sold.

e) For inventory losses, if provision has been made for devaluation of inventories, the enterprise shall use the provision for devaluation of inventories already made to compensate, if the provision already made If the loss is not enough to cover the loss, the remaining loss will be included in the cost of goods sold.

g) Enterprises do not make provision for devaluation of inventories for raw materials, tools and tools used for capital construction investment or production of products if the products they contribute to make up will be sold at a price equal to or higher than the production cost of the product.

2. Structure and contents of Account 229 – Provision for property loss

Debtor:

– Reversing the difference between the amount of provision for loss of assets that must be made in this period is smaller than the amount of provision made in the previous period that has not been used up;

– Offsetting the loss value of assets from the provision made.

Yes Party:

Provisions for property loss are made at the time of preparation of the financial statements.

Credit balance: Amount of provision for loss of existing assets at the end of the period.

Account 229 – Provision for property loss has 4 tier 2 accounts

Account 2291 – Allowance for devaluation of trading securities: This account reflects the setting up or reversal of provision for devaluation of trading securities.

Account 2292 – Provision for investment loss in other entities: This account reflects the situation of setting up or reversing the provision because the enterprise receiving the investment capital suffers a loss leading to the investor's possibility of losing capital or the provision due to the decrease in the value of the investments.

Account 2293 – Provision for bad debts: This account reflects the setting up or reversal of provisions for receivables and amounts of a similar nature to receivables which are likely to be uncollectible.

Account 2294 – Provision for devaluation of inventories: This account reflects the setting up or reversal of provision for devaluation of inventory.

Article 37. Account 241 – Construction in progress

1. Accounting principles

a) This account reflects the cost of implementing capital construction investment projects (including costs of new fixed assets purchase, new construction or repair, renovation, expansion or technical re-equipment) and form of settlement of capital construction investment projects in enterprises that conduct fixed asset procurement, capital construction investment, and major repair of fixed assets.

The investment in capital construction and major repair of fixed assets of the enterprise can be carried out by contracting or self-employment. In enterprises conducting capital construction investment by do-it-yourself method, this account also reflects costs incurred during construction, installation and repair.

b) Expenses for implementation of capital construction investment projects are all necessary expenses for new construction or repair, renovation, expansion or technical re-equipment, determined according to current regulations. must be consistent with the objective factors of the market in each period and comply with regulations on capital construction investment management. Construction investment costs, including:

- Construction costs;

– Equipment costs;

– Cost of compensation, support and resettlement;

- Project management costs;

- Construction investment consulting costs;

- Other costs.

Account 241 is opened in detail for each work, work item and in each work item, it must be recorded in detail each content of capital construction investment costs and tracked cumulatively from the time of commencement to the date of construction. works, work items have been completed, handed over and put into use.

c) When investing in capital construction, construction and installation costs, equipment costs are usually calculated directly for each work; Project management and other costs are often shared. The investor must calculate and allocate project management costs and other costs to each work according to the following principles:

– If the project management costs and other costs directly related to each work can be determined separately, they shall be calculated directly for that work;

– Project management costs and general costs related to many works that cannot be directly calculated for each work, the unit is entitled to allocate according to the criteria most appropriate to each project.

d) Repair, maintenance and maintenance expenses for fixed assets in normal operation are accounted directly into production and business expenses in the period. For fixed assets that must be repaired, maintained or maintained periodically according to technical requirements without increasing the value of the assets, the enterprise is entitled to make provision for payables and calculate in advance into production and business expenses to have a source of funding or are gradually allocated according to regulations when the repair and maintenance work arises.

dd) Real estate construction investors use this account to collect expenses for construction of fixed assets or investment properties. In case the real estate is built for multiple purposes (for office, for rent or for sale, for example, a mixed-use apartment building), the accountant still collects the costs incurred directly related to the construction of the property. construction investment on account 241. When the work or project is completed, handed over and put into use, the accountants shall base on the actual way of using assets to transfer the construction investment costs in accordance with the nature of the project. of each asset class.

e) For construction in progress that must be paid to the contractor in foreign currency: Construction in progress is recorded at the actual exchange rate at the time the construction work is completed, accepted and put into use. . In case the enterprise makes an advance to the contractor in a foreign currency, the construction in progress cost corresponding to the advance amount is recorded at the actual exchange rate at the time of advance, the construction in progress cost is corresponding to the amount of the advance. The remaining amount is recorded at the actual exchange rate at the time the construction work is completed, accepted and put into use.

g) Exchange rate differences arising from capital construction investment in the period before operation or when the enterprise has come into operation (including new investment or expansion investment) are calculated. immediately included in financial income (if profit) or financial expense (in case of loss) at the time of arising.

h) In case the investment project is cancelled, the enterprise must liquidate and recover the costs incurred by the project. The difference between the actual investment costs incurred and the proceeds from the liquidation shall be recorded to other expenses or determine the compensation liability of the organization or individual for recovery.

i) Other costs incurred such as capitalized interest expense, bidding cost (after offsetting with the proceeds from the sale of bids), cost of dismantling and returning the site (after compensating) minus the recoverable scrap) is charged to construction in progress.

k) In case the trial production does not produce products, the entire trial run cost shall be accounted into the construction in progress cost; In case trial production activities create trial production products, all costs of trial run with load to produce trial products are collected on account 154 – Costs of production, business in progress, parts the difference between the cost of trial production and the proceeds from the sale of the trial production is accounted for in construction in progress.

Account 241 – Construction in progress, there are 3 tier 2 accounts:

– Account 2411 – Purchase of fixed assets: Reflects fixed asset procurement costs and the settlement of fixed assets procurement costs in case they have to be installed and tested before they are put into use (including buying new or used fixed assets). If the purchase of fixed assets must be invested and retrofitted to be usable, all costs of procurement, installation and retrofitting are also reflected in this account.

– Account 2412 – Basic construction: Reflecting capital construction investment costs and settlement of capital construction investment. This account is opened in detail for each work, work item (according to each object of assets formed through investment) and in each asset object, it is required to monitor in detail each content of capital construction investment expenses.

– Account 2413 – Major repair of fixed assets: Reflects the cost of major repair of fixed assets and the settlement of major repair costs of fixed assets. In case of regular repair of fixed assets, it is not recorded in this account but directly into production and business expenses in the period.

2. Structure and contents of Account 241 – Construction in progress

Debtor:

– Expenses for capital construction investment, procurement and major repair of fixed assets (tangible fixed assets and intangible fixed assets);

– Expenses for purchasing investment real estate (in case there is a need for a construction investment phase);

– Investment capital construction investment real estate;

– Expenses for major renovation, upgrading and repair of fixed assets and investment real estate.

Yes Party:

- Value of fixed assets formed through capital construction investment, completed procurement and put into use;

– Value of investment real estate formed through completed capital construction investment;

– The value of the rejected works and other approved expenses will be transferred when the final settlement is approved;

- Transfer expenses for renovation, upgrading and major repair of fixed assets and investment properties incurred after initial recognition to relevant accounts when finalization is approved.

Outstanding balance:

- Expenses for construction investment projects and major repair of fixed assets, unfinished investment real estate;

- Value of construction works and major repair of fixed assets, investment real estate completed but not yet handed over and put into use or the final settlement has not been approved;

- Value of investment real estate under construction.

Article 38. Account 242 – Prepaid expenses

1. Accounting principles

a) This account is used to record actual expenses incurred but related to the results of production and business activities of many accounting periods and the transfer of these expenses to production and business expenses of the accounting periods. after.

b) The contents are reflected as prepaid expenses, including:

– Prepaid expenses for infrastructure lease, operating lease of fixed assets (land use rights, factories, warehouses, offices, shops and other fixed assets) serving production and business for many next period maths.

- Expenses for setting up an enterprise, training and advertising expenses incurred in the period before the operation of great value shall be allocated according to the provisions of current law;

- Insurance costs (fire and explosion insurance, vehicle owner's civil liability insurance, body insurance, property insurance, ...) and fees that businesses buy and pay once for multiple accounting periods;

– Tools, instruments, rotating packaging, rental equipment related to business activities in many accounting periods;

– Prepaid loan interest for many accounting periods;

- Expenses for repair of fixed assets incurred once with a large value, the enterprise does not make advance deductions for large repair costs of fixed assets allocated in accordance with current law;

– Research expenses and expenses for the implementation phase do not meet the criteria for recognition as intangible fixed assets if they are gradually amortized according to the provisions of current law;

– Other prepaid expenses for business activities of many accounting periods.

c) Calculation and allocation of prepaid expenses into production and business expenses in each accounting period must be based on the nature and extent of each type of expense to select a reasonable method and criteria.

d) Accountants must keep track of each prepaid expense in detail for each prepayment period incurred, allocated to the cost objects of each accounting period and the remaining amount not yet allocated to expenses. .

dd) For prepaid expenses in foreign currency, if at the time of making the report there is solid evidence that the seller is unable to provide the goods or services and the enterprise will surely receive the payment back. Prepayments in foreign currencies are considered monetary items denominated in foreign currencies and must be re-evaluated at the average transfer rate of the commercial bank where the enterprise regularly conducts transactions at the reporting time.

The determination of the average transfer rate and handling of exchange rate differences due to re-evaluation of prepaid expenses which are monetary items of foreign currency origin shall comply with the provisions of Article 52 of this Circular.

2. Structure and contents of Account 242 – Prepaid expenses

Debtor: Prepaid expenses incurred during the period.

Yes Party: Prepaid expenses have been included in production and business expenses in the period.

Debit side balance: Prepaid expenses have not been included in production and business expenses in the period.

Article 39. Principles of accounting for liabilities

1. Liabilities are monitored in detail according to their payable terms, payable objects, payable currency types and other factors according to the management needs of the enterprise.

2. The classification of payables as trade payables, internal payables and other payables shall be made according to the following principles:

a) Trade payables include trade payables arising from purchases of goods, services and assets. This payable includes payables when importing through entrustment recipients (in entrusted import transactions);

b) Internal payables include payables between superior units and subordinate units under dependent accounting;

c) Other payables include non-commercial payables, unrelated to transactions of buying, selling or providing goods and services:

– Payables related to financial expenses, such as interest payable, dividends and profit payable, financial investment operating expenses;

– Accounts payable on behalf of a third party; Amounts of money the trustee receives from related parties for payment as specified in the import-export entrustment transaction;

– Non-commercial payables such as payables due to borrowing non-monetary assets, fines, compensation, excess property pending settlement, payables of social insurance, health insurance, unemployment insurance, occupational accident insurance, etc. KPCCD…

3. When preparing financial statements, accountants base on the remaining term of payables to classify as long-term or short-term.

4. With respect to payables in foreign currencies, enterprises must keep detailed records of payables in each type of currency and each payer and comply with the following principles:

– When liabilities arise (the party has accounts payable), accountants must convert them into the currency of accounting books at the actual exchange rate at the time of arising.

Particularly in case of cash advance to the seller in foreign currency, when recording the value of purchased assets or incurred expenses, the creditor of Account 331 corresponding to the advance amount is recorded at the actual book rate. name at the time of advance.

– When paying payables (Debit side of Accounts Payable), enterprises can choose the weighted average bookkeeping exchange rate for each payer or the actual exchange rate at the time of debt repayment.

Particularly in case of advance payment to the seller, the Debiter of Account 331 shall apply the actual exchange rate at the time of advance.

– In case the enterprise uses the actual exchange rate to account the debit side of accounts payable, the exchange rate difference arising in the period is recognized immediately at the time of transaction or recognition. period depending on the characteristics of production and business activities and management requirements of the enterprise.

– At the time of preparing the financial statements, the enterprise must re-evaluate the payables which are monetary items of foreign currency origin according to the average exchange rate at the end of the period of the commercial bank where the enterprise regularly conducts transactions. Translate.

The determination of the average transfer rate and the handling of exchange rate differences due to the re-evaluation of payables which are monetary items of foreign currency origin shall comply with the provisions of Article 52 of this Circular.

Article 40. Account 331 – Payables to sellers

1. Accounting principles

a) This account is used to record the payment of debts payable by the enterprise to the seller of supplies, goods, service providers, sellers of fixed assets, investment real estate, and financial investments according to regulations. signed economic contract. This account is also used to record the payment of debts payable to the main and subcontractors for construction and installation. Do not reflect to this account the transactions of buying and paying immediately.

b) Liabilities to sellers, suppliers, construction and installation contractors need to be recorded in detail for each payable object. In details of each payable object, this account reflects the amount advanced to the seller, supplier, contractor for construction and installation but not yet received products, goods, services, construction volume. complete handover.

c) The entrusting importer shall record on this account the amount payable to the seller for the imported goods through the entrusted importer as a normal payable to the seller.

d) For supplies, goods and services that have been received or stored but have not yet been invoiced at the end of the period, the temporarily calculated price shall be used for bookkeeping and must be adjusted to the actual price upon receipt of the invoice or notice. Official price of the seller.

dd) When making detailed accounting of these amounts, the accountant must clearly and unambiguously record payment discounts, trade discounts, sales discounts of sellers and suppliers, if not already reflected in reciept.

2. Structure and contents of Account 331 – Payables to sellers

Debtor:

– Amounts paid to sellers of materials and goods, service providers, construction contractors;

– Amount of advance to the seller, supplier, contractor for construction and installation but not yet received materials, goods, services, volume of finished construction products and handed over;

– The amount the seller agrees to reduce the price of the goods or services delivered under the contract;

– Payment discount and trade discount approved by the seller for the business to reduce from the debt payable to the seller;

– The value of materials and goods are lacking or of poor quality when verifying and returning to the seller;

- Adjustment of the difference between the temporarily calculated price which is larger than the actual price of the received supplies, goods and services, upon receipt of an official invoice or price notice;

– Re-evaluate the payables to the seller which are monetary items of foreign currency origin (in case the foreign currency exchange rate decreases compared to the recorded exchange rate).

Yes Party:

– Amounts payable to sellers of materials and goods, service providers and construction contractors;

– Adjust the difference between the temporarily calculated price which is smaller than the actual price of the received supplies, goods and services, upon receipt of an official invoice or price notice;

– Re-evaluate the payables to the seller which are monetary items of foreign currency origin (in case the foreign currency rate increases compared to the recorded exchange rate).

Credit balance: The remaining amount must be paid to sellers, service providers and construction contractors.

This account may have a Debit balance: The debit balance (if any) reflects the amount advanced to the seller or the amount paid more than the amount payable to the seller according to the details of each specific object. When preparing a statement of financial position, the detailed balance of each object reflected in this account must be recorded to record two items on the side “Assets” and the side “Capital resources”.

Article 41. Account 333 – Taxes and other payables to the State

1. Accounting principles

1.1. This account is used to record the relationship between the enterprise and the State regarding taxes, fees, charges and other payable, paid and payable amounts to the State Budget in the annual accounting period.

1.2. Enterprises proactively calculate, determine and declare tax, fee, fee and other payable amounts to the State according to law; Timely reflect in accounting books the amount of tax payable, paid, deducted, refunded...

1.3. Indirect taxes such as VAT (whether by deduction or direct method), excise tax, export tax, environmental protection tax and other indirect taxes are essentially third party collection. Therefore, indirect taxes are excluded from gross revenue figures in the Financial Statements or other reports.

Enterprises can choose to record revenue and payable indirect tax amounts in the accounting books by one of two methods:

– Separate and separately record the payable indirect tax amount (including VAT payable by the direct method) right at the time of revenue recognition. According to this method, the revenue recorded in the accounting books does not include the payable indirect tax amount, which is consistent with the data on gross revenue in the financial statements and reflects the true nature of the transaction;

– Record the payable indirect tax amount by recording a decrease in the recorded revenue in the accounting books. According to this method, the revenue for indirect tax payable is only periodically recorded as a decrease, and the revenue data in the accounting books is different from the gross revenue in the financial statements.

In all cases, the item “Revenue from sales and provision of services” and the item “Revenue deductions” of the income statement do not include indirect taxes payable.

1.4. Enterprises that import or purchase domestically goods and fixed assets subject to import tax, excise tax and environmental protection tax are recorded the payable tax amount in the original price of purchased goods. In case an enterprise imports goods on a household basis but does not have the right to own the goods, for example, a transaction of temporary import for re-export for a third party, the payable import tax, excise tax, and environmental protection tax shall not be recorded in the value of the goods. recognized as other receivables.

The amount of natural resources tax payable to the state budget shall be accounted into the enterprise's production and business expenses. The payable land rent and house and land tax shall be included in the enterprise management expenses.

VAT, SCT, and environmental protection tax on products, goods and services for internal consumption, giving, giving, gifting, promotion, and advertising without collection shall be accounted into selling expenses or administrative expenses depending on the enterprise. on a case-by-case basis.

1.5. For taxes that are refunded or reduced, accountants must clearly distinguish whether the refunded or reduced tax amounts are paid at the purchase stage or payable at the sale stage, and comply with the following principles:

- Import tax, excise tax, and environmental protection paid when importing goods and services, if refunded, record a decrease in cost of goods sold (if goods are exported for sale) or decrease in inventory value (if exported or returned due to borrowing or borrowing). ...);

- Import tax, excise tax and environmental protection paid when importing fixed assets, if refunded, record a decrease in other expenses (if fixed assets are sold) or decrease in historical cost of fixed assets (if returned);

– Import tax, excise tax, and environmental protection paid when importing goods and fixed assets but the unit has no ownership rights, when being refunded, record a decrease in other receivables.

- The export tax, special excise tax, and environmental protection tax payable when selling goods or providing services but then refunded or reduced, it shall be recorded in other income.

– Refundable input VAT is recorded as a reduction in the deductible VAT amount. The reduced VAT payable is recorded in other income.

1.6. Obligations to the state budget in import and export entrustment transactions:

– In an import-export entrustment transaction (or similar transactions), the obligation to the state budget is determined to be that of the entrusting party;

– The trustee is defined as the party providing services to the entrusting party in the preparation of documents, declaration, payment and settlement with the state budget (the taxpayer on behalf of the entrusting party).

– Account 333 is only used at the entrusting party, not at the entrusting party. The trustee acting as an intermediary only reflects the amount of tax payable to the state budget as payment on account of account 3388 and reflects the right to receive the money paid on behalf of the entrusting party on account. 138. The grounds for reflecting the entrusting party's performance of obligations to the state budget are as follows:

+ When receiving the notice of payable tax amount, the entrusting party shall hand over to the entrusting party all dossiers, documents and notices of the competent authority on the payable tax amount as a basis for recognition. tax payable on account 333.

+ Based on the receipt of payment to the state budget of the trustee, the entrusting party shall reflect the decrease in the amount payable to the state budget.

1.7. The accountant must open a detailed book to track each tax, fee, fee and other payable, paid and payable amounts.

2. Structure and contents of Account 333 – Taxes and other payables to the State

Debtor:

- VAT amount already deducted in the period;

- Amount of taxes, fees, charges and other amounts already paid into the State Budget;

– The tax amount to be deducted from the payable tax amount;

- VAT amount of goods sold returned or reduced in price.

Yes Party:

– Output VAT amount and payable VAT amount on imported goods;

– Taxes, fees, charges and other amounts payable to the State Budget.

Credit balance:

Taxes, fees, charges and other amounts still payable to the State Budget.

Account 333 may have a debit balance: The debit balance (if any) of Account 333 reflects the amount of taxes and amounts already paid that are greater than the amount of taxes and amounts payable to the State, or may reflect the paid tax that is considered for exemption, reduction or withdrawal. collection but has not yet implemented the collection.

Account 333 – Taxes and other payables to the State, there are 9 level 2 accounts:

– Account 3331 – Value added tax payable: Reflects output VAT amount, VAT payable on imported goods, VAT deducted, VAT paid and payable to the State budget.

Account 3331 has 2 level 3 accounts:

+ Account 33311 – Output value-added tax: Used to reflect output VAT, deducted input VAT, VAT on returned and discounted goods, payable, paid, and outstanding VAT on products and goods. goods and services consumed during the period.

+ Account 33312 – VAT on imported goods: Used to reflect the amount of VAT on imported goods to be paid, paid, and still to be remitted into the State Budget.

– Account 3332 – Special consumption tax: Reflect the amount of special consumption tax to be paid, paid and still payable to the State Budget

– Account 3333 – Import and export tax: Reflect the amount of export tax, import tax payable, paid and still payable to the State budget.

– Account 3334 – Corporate income tax: Reflects payable, paid and still payable corporate income tax amounts to the State Budget.

– Account 3335 – Personal income tax: Reflects payable, paid and still payable personal income tax amounts to the State Budget.

– Account 3336 – Resource tax: Reflect the amount of natural resources tax payable, paid and still payable to the State budget.

– Account 3337 – Real estate tax, land rent: Reflect the payable, paid and still payable housing tax and land rent amount to the State budget.

– Account 3338 – Environmental protection tax and other taxes: Reflect the payable, paid and still payable amount to the State Budget on environmental protection tax and other taxes, such as license tax, foreign contractor tax...

Account 3338 has 2 level 3 accounts:

+ Account 33381: Environmental protection tax: Reflect the payable, paid and still payable environmental protection tax amount to the state budget;

+ Account 33382: Other taxes: Reflect the amount to be paid, paid, and still to pay other taxes. Enterprises are allowed to actively open detailed level 4 accounts for each type of tax in accordance with management requirements.

– Account 3339 – Fees, charges and other payables: Reflects payable, paid and still payable amounts of fees, charges and other payables to the State in addition to those reflected in accounts from 3331 to 3338. This account also reflects State subsidies for enterprises (if any) such as subsidies and price subsidies.

Article 42. Account 334 – Payables to employees

1. Accounting principles

This account is used to record the payables and the payment of payables to the employees of the enterprise in terms of salary, wages, bonuses, social insurance and other payables belonging to the enterprise. workers' input.

2. Structure and contents of Account 334 – Payables to employees

Debtor:

- Salaries, wages, bonuses of the nature of salary, social insurance and other payments already paid, paid or advanced to employees;

- Deductions from the employee's salary and wages.

Yes Party: Wages, wages, bonuses of salary nature, social insurance and other payables and payables to employees;

Credit balance: Wages, salaries, bonuses of a salary nature and other amounts still payable to employees.

Account 334 may have a Debit balance. The debit balance of account 334 (if any) reflects the amount paid which is larger than the amount payable for wages, salaries, bonuses and other payments to employees.

Article 43. Account 335 – Expenses payable

1. Accounting principles

a) This account is used to record payables for goods and services received from sellers in the reporting period but not yet paid due to lack of invoices or insufficient accounting records and documents. , which is recorded in production and business expenses of the reporting period.

This account also reflects payables to employees in the period such as vacation wages and production and business expenses of the reporting period that must be deducted, such as:

– Expenses during the time the enterprise stops production according to the season or season in which the enterprise can develop a plan to stop production. Accountants shall calculate in advance and account in production and business expenses in the period the expenses that will be spent during the period of cessation of production and business.

– Deducting interest expense in advance in case of loan paying interest later.

b) Accountants must distinguish payable expenses (also known as accrual expenses or accrual expenses) from provisions payable recorded on account 352 in order to recognize and present the report. financial statements appropriate to the nature of each item, specifically:

– Provisions for payables are current liabilities, but a specific payment period is usually unspecified; Expenses payable are present liabilities that are certain of the time to be paid;

– Provisions for payables are often estimated and it is not possible to determine with certainty the amount to be paid (for example, provision for warranty of products, goods, construction works); Expenses payable can be determined with certainty;

– In the Financial Statements, provisions for payables are presented separately from trade and other payables while accruals are part of trade or other payables.

- The accounting of payable expenses into production and business expenses in the period must comply with the principle of concordance between revenue and expenses incurred in the period. Payables that have not yet been incurred because goods and services have not been received, but are included in the production and business expenses of this period to ensure that when they arise, they will not cause sudden changes in production and business costs. reflected as provision payable.

c) Advances are not reflected in account 335 but are recorded as provision for payables, such as:

- Major repair costs of specific fixed assets due to cyclical major repairs, enterprises are allowed to deduct repair costs in advance for the reporting year or a number of subsequent years;

– Provision for warranty of products, goods and construction works;

– Other provisions for payables (as specified in Account 352).

d) In principle, payable expenses must be settled with the actual expenses incurred. The difference between the amount deducted and the actual cost must be reversed.

dd) The capitalization of loan interest in some specific cases as follows:

– For separate loans for the construction of fixed assets and investment real estate, the interest is capitalized even if the construction period is less than 12 months;

– Contractors do not capitalize interest when borrowing to serve the construction and construction of works and assets for customers, including the case for private loans, for example: Construction contractors borrow money for construction construction work for customers, shipbuilding companies under contract for ship owners...

2. Structure and contents of Account 335 – Expenses payable

Debtor:

– The actual payments incurred have been included in the payable expenses;

– The difference in payable expenses is larger than the actual amount of expenses recorded as a reduction in expenses.

Yes Party: Payable expenses are estimated in advance and recorded in production and business expenses.

Credit balance: Expenses payable have been included in production and business expenses but have not actually been incurred.

Article 44. Account 336 – Internal payables

1. Accounting principles

a) This account is used to record the payment of payables between the enterprise (superior unit) and its dependent cost-accounting affiliated units (subordinate units); Between dependent accounting units of the same enterprise.

In an enterprise, the classification of subordinate units for accounting purposes is based on the nature of the unit (independent or dependent accounting, legal entity or not, has a representative). before the law) regardless of the name of that unit (branch, enterprise, group, team...).

b) Internal payables recorded in account 336 “Internal payables” include payables to working capital and amounts payable to the subsidiary to the enterprise and to the subsidiary accounting unit. other belonging; Amounts payable by the enterprise to the dependent accounting unit. Accounts payable and payable can be the relationship of receiving assets, capital, current payment, household payment, ...;

c) Depending on the decentralization of management and operation characteristics, the enterprise shall decide the dependent accounting unit to record the business capital allocated by the enterprise to Account 3361 – Internal payables for business capital or Account 411 - Owner's investment capital.

d) Account 336 “Internal payables” is recorded in detail for each internal unit having payment relationship, which is tracked according to each payable and payable amount.

dd) At the end of the period, the accountant checks and compares account 136 and 336 between internal units according to each payment content to make a record of clearing with each unit as a basis for accounting. clearing on these 2 accounts. When comparing, if there is a difference, the cause must be found and corrected in time.

2. Structure and contents of Account 336 – Internal payables

Debtor:

- Amount paid to the dependent accounting unit;

- Amount paid by the dependent accounting unit to the enterprise;

– Amount of payments that internal units pay or collect on behalf of internal units;

– Offsetting receivables with payables of the same payment relationship.

Yes Party:

- Amount of business capital of the dependent accounting unit granted by the enterprise;

- Amount payable by the dependent accounting unit to the enterprise;

– Amount to be paid to the dependent accounting unit;

– Amounts payable to other internal units for payments already paid by other units and receipts for other units.

Credit balance: The amount remaining to be paid and payable to the enterprise and the units within the enterprise.

Account 336 – Internal payable, has 2 tier 2 accounts:

– Account 3361 – Internal payables for working capital: This account is only opened at the subordinate unit and does the dependent accounting to reflect the business capital assigned by the superior unit.

– Account 3368 – Other internal payables: Reflects all other payables between internal entities within the same enterprise.

Article 45. Account 338 – Other payables and payables

1. Accounting principles

a) This account is used to record the payment of payables and payables in addition to those reflected in other accounts of account group 33 (from account 331 to account 336). This account is also used to record revenue received in advance for services provided to customers.

b) The content and scope of this account's reflection include the following main transactions:

- The value of excess property has not yet determined the cause, pending the handling decision of the competent authority; Value of excess property payable to individuals and collectives (inside and outside the unit) according to the decision of the competent authority stated in the handling record, if the cause has been identified;

– Amounts deducted and paid for social insurance, health insurance, unemployment insurance, occupational accident insurance and trade union expenses;

– Deductions from the employee's salary as ordered by the court;

– Profits and dividends payable to owners;

– Borrowed or borrowed materials and goods, capital contributions received under business cooperation contracts (BCC) do not form a new legal entity;

– Receipts to be returned on behalf of the third party, amounts received by the entrusting party from the entrusting party to pay import and export taxes, VAT on imported goods and to pay on behalf of the entrusting party ;

– Amounts collected in advance from customers in many accounting periods for leasing properties, infrastructure, interests received before lending capital or buying debt instruments (referred to as revenue received in advance); Unrealized revenues and incomes.

– The difference between the selling price of deferred payment or installment payment as committed and the selling price at sight.

– Amounts received as pledges, deposits and deposits from other organizations and individuals.

– Other payables and payables such as payments to buy voluntary retirement insurance, life insurance and other supports (besides salary) for employees…

c) The accountant who receives the deposit or deposit must keep track of each customer's deposit and deposit in detail by term and by type of original currency (if any). Deposits and deposits payable with a remaining term of no more than 12 months are presented as short-term debt, and amounts with a maturity of more than 12 months are presented as long-term debt.

2. Structure and contents of Account 338 – Other payables and payables

Debtor:

- Transfer the excess property value to relevant accounts according to the decision stated in the handling record;

- Union expenses paid at the unit;

– The number of social insurance, health insurance, unemployment insurance, occupational accident and occupational accident insurance, and occupational accident and occupational disease insurance that has been submitted to the fund management agency for social insurance, health insurance, unemployment insurance and trade union funds;

- Unrealized revenue for each accounting period; return the money received in advance to the customer when not continuing to perform the asset lease;

– Amount allocated to the difference between the selling price of deferred payment or installment payment as committed and the selling price of immediate payment (deferred interest) to financial income;

– Refund of deposit receipt, deposit;

– Other paid and paid amounts;

– Re-evaluate other payables and payables which are monetary items of foreign currency origin (in case the foreign currency exchange rate decreases compared to the recorded exchange rate).

Yes Party:

– Value of excess property pending settlement (cause unknown); Value of excess property payable to individuals and collectives (inside and outside the unit) according to the decision stated in the handling record due to the immediate identification of the cause;

- Deducting social insurance, health insurance, unemployment insurance, occupational accident and accident insurance, and labor accident insurance into production and business expenses or deducted from employee's salary;

– Payments to employees for housing, electricity and water in the collective;

- Social insurance number paid to employees when paid by the social insurance agency;

– Unrealized revenue arising in the period;

- The difference between the selling price of deferred payment or installment payment as committed and the selling price at sight;

- Borrowed and borrowed materials and goods, capital contributions received under business cooperation contracts (BCC) without establishing a legal entity;

– Receivables on behalf of other units;

- The amount received as a pledge, deposit or deposit arising in the period;

– Other payables;

– Re-evaluate other payables and payables which are monetary items of foreign currency origin (in case the foreign currency rate increases compared to the recorded exchange rate).

Credit balance:

- The deducted social insurance, health insurance, unemployment insurance, occupational accident and occupational accident insurance and personal injury insurance policy has not yet been paid to the management agency or the trade union fund has been left to the unit which has not been fully spent;

- Excess discovered property value pending settlement;

- Unrealized revenue at the end of the accounting period;

- Other payables and payables;

– Amount received for deposit and unpaid deposit.

This account may have a Debit balance: The debit balance reflects the amount paid or paid more than the amount due or payable or the amount of social insurance paid to employees that has not yet been paid and the unpaid excess of the trade union fund.

Account 338 – Payables, other payables, has 8 level 2 accounts:

– Account 3381 – Excess assets pending settlement: Reflecting the value of excess property, the cause of which has not yet been determined, pending the handling decision of the competent authority. In case the cause of excess property value has been identified and a handling record is available, it shall be immediately recorded in relevant accounts, not through account 338 (3381).

– Account 3382 – Union fees: Reflect the situation of deduction and payment of trade union fees at the unit.

– Account 3383 – Social insurance: Reflect the situation of deduction and payment of social insurance in the unit.

– Account 3384 – Health insurance: Reflects the situation of deduction and payment of health insurance at the unit.

– Account 3385 – Unemployment insurance: Reflect the situation of deduction and payment of unemployment insurance at the unit.

– Account 3386 – Receive deposit, deposit: Reflects the amount received as deposits and deposits from units and individuals outside the enterprise.

– Account 3387 – Unrealized revenue: Reflects the current number and the increase or decrease in unrealized revenue of the enterprise in the accounting period. Unrealized revenue includes revenue received in advance such as: Amount prepaid by customers for one or more accounting periods for asset leasing; Interest received before lending capital; other unrealized revenues such as: the difference between the sale price of deferred payment or installment payment as committed and the price paid at sight, the amount of revenue corresponding to the value of goods and services. Do not account to this account the following:

+ Money received in advance from the buyer but the enterprise has not provided products, goods or services;

+ Unearned revenue from asset leasing and service provision for many periods (revenue received in advance is recognized only when cash is actually collected, not recorded unrealized revenue to account 131. – Receivables from customers).

– Account 3388 – Other payables and payables: Reflect other payables of the entity other than the payables already reflected in other accounts from Account 3381 to Account 3387.

Article 46. Account 341 – Loans and financial lease liabilities

1. Accounting principles

a) This account is used to record loans (including loans in the form of bond issuance), financial lease debts and the payment status of loans and financial lease debts of the enterprise.

b) Enterprises must monitor in detail the payment terms of loans and finance lease debts. Accounts with a repayment period of more than 12 months from the date of preparation of the financial statements are presented as loans and long-term financial lease liabilities. Accounts due to be paid within the next 12 months from the time of making the financial statements, the accountants present them as loans and short-term financial lease liabilities to have a payment plan.

c) When an enterprise borrows in the form of a bond issue, there may be 3 cases:

– Issuance of bonds at par (issuing price equal to par value): Is the issue of bonds at the price exactly equal to the par value of the bond.

– Issuance of bonds at a discount (the issue price is less than the par value): Is the issue of bonds at a price less than the face value of the bond. The difference between the bond issue price and the par value of the bond is called the bond discount. This usually occurs when the market interest rate is greater than the nominal interest rate of the issued bond.

- Issuance of bonds with premium (issuing price is greater than par value): Is the issue of bonds at a price greater than the par value of the bond. The difference between the bond issue price and the par value of the bond is called the bond premium… This situation usually occurs when the market interest rate is smaller than the nominal interest rate (interest recorded on the bond) of the bond. release.

When accounting for issued bonds, enterprises must record the bond discount or premium at the time of issuance and monitor the details of the bond issuance term and relevant contents:

+ Face value of bonds;

+ Discounting bonds;

+ Bond premium.

– Enterprises must monitor the discount and premium for each type of bond issued and the allocation of each discount and premium when determining borrowing costs to be included in financial expenses or capitalized in each period. specific:

+ Bond discount is gradually amortized to account for borrowing costs in each period during the bond's term;

+ Bond premiums are amortized gradually to reduce borrowing costs each period during the bond's term;

+ In case the interest expense of a bond is eligible for capitalization, the loan interest and discount or premium allocation capitalized in each period must not exceed the actual interest incurred and the percentage additional discount or extra in that period;

The discount or premium is amortized over the life of the bond on a straight-line basis.

– In case of paying interest at bond maturity, the enterprise must periodically calculate the bond interest payable each period to record it in financial expenses or capitalize on the value of unfinished assets.

– When preparing financial statements, on the statement of financial position in the payables portion, the issued bonds are recorded on a net basis (determined by the bond value at par value minus (-) discount) bonds plus (+) bond premium).

d) Borrowing expenses directly related to the loan (other than the payable loan interest), such as costs of appraisal, audit, preparation of loan documents, bond issuance costs, etc., are accounted into expenses. finance. Where these costs arise from a separate loan for the purpose of investment, construction or production of unfinished assets, they are capitalized.

dd) For finance lease liabilities, the total lease liability reflected to the Credit side of Account 341 is the total payable amount calculated using the present value of the minimum lease payments or the fair value of the lease payments. rental property.

2. Structure and contents of Account 341 – Loans and finance lease liabilities

Debtor:

- Amount of principal repayment of loans and finance lease debts;

- The principal amount of the loan or debt is reduced because it is approved by the lender or creditor;

– Additional allocation of issued bonds;

- Exchange rate difference due to revaluation of loan balance, financial lease debt is a monetary item of foreign currency origin at the end of the period (in case the foreign currency rate decreases compared to the recorded rate).

Yes Party:

- Amount of loans and financial lease debts incurred in the period;

– Amount of discount allocation for issued bonds;

- Exchange rate difference due to revaluation of loan balance, financial lease debt is a monetary item of foreign currency origin at the end of the period (in case the foreign currency rate increases compared to the recorded rate).

Credit balance: Undue balance of loans and finance lease debts.

Account 341 – Loans and financial lease debt has 2 tier 2 accounts:

Account 3411 – Loans: This account reflects the value of the borrowed money, the payment situation of the loans (including borrowing in the form of bond issuance) of the enterprise and the allocation of discount and premium for bonds.

Account 3412 – Finance lease debt: This account reflects the value of the finance lease debt and the financial lease payment status of the enterprise.

Article 47. Account 352 – Provision for payables

1. Accounting principles

a) This account is used to record existing provisions for payables, setting up and use of provisions for payables of the enterprise.

b) Provision for payables is recognized only when the following conditions are satisfied:

– The enterprise has a present obligation (legal or constructive) as a result of a past event;

– It is probable that an outflow of economic benefits will result in the payment of a debt obligation;

– Provide a reliable estimate of the amount of the obligation.

c) The recognized amount of a provision for payable is the most reasonable estimate of the amount that will be required to settle the present obligation as at the balance sheet date.

d) Provision for payables is made at the time of preparation of the financial statements. If the provision for payables to be made in this accounting period is larger than the provision for payables that have not been used up in the previous accounting period, the difference shall be recorded into production and business expenses of the next accounting period. that math. In case the provision for payables made in this accounting period is smaller than the provision for payables made in the previous accounting period that has not been used up yet, the difference must be reversed.

For the provision for payables for warranty of construction and installation works, the provision is made for each construction and installation work and is made at the end of the accounting period.

d) Only expenses related to the initially made provision for payables will be offset by such provision.

e) Provisions are not recognized for future operating losses, unless they relate to a high-risk contract and the provision for recognition is satisfied. If the enterprise has high-risk contracts, the present contractual obligation should be recognized and assessed as a provision, and the provision is made separately for each high-risk contract.

g) Provisions for payables generally include:

- Provision for product and goods warranties;

– Provision for warranty of construction works;

– Provision for other payables, including provision for severance allowance as prescribed by law, provision for periodic repair and maintenance of fixed assets (according to technical requirements), provision for payables in respect of a high-risk contract in which the required costs of the obligations relating to the contract exceed the economic benefits expected to be derived from the contract;

h) Provisions for payables for warranty of products and goods are recorded in selling expenses, provision for payables for warranty expenses for construction and installation works is recorded in production and business in progress. , provision for other payables is recognized in related expenses depending on the cost content.

i) The amount of provision payable for warranty for construction and installation works is larger than the actual costs incurred, the difference will be reversed and recorded in Account 711 “Other income”. The amount of the provision for refunds to be returned to the product warranty, goods are recorded as a reduction in selling expenses. The reverse of the other payable provision is recorded as a reduction in related expenses depending on the content of the expenses.

k) When the enterprise receives a reimbursement from a third party to pay part or all of the expenses for the provision, the reimbursement from the third party is recognized in other income.

2. Structure and contents of Account 352 – Provision for payables

Debtor:

– Record a decrease in the provision for payable when incurred expenses related to the provision that was initially made;

– Write down (reverse) the provision for payable when the enterprise is no longer subject to an economic decline because it does not have to pay the debt obligation;

– Record a decrease in provision for payables, the difference between the amount of the provision for payables payable this year is smaller than the amount of provision for payables made in the previous year that has not been fully utilized.

Yes Party: Reflects the amount of provision payable to be charged to expenses.

Credit balance: Reflects the amount of provision for payables available at the end of the period.

Account 352 has 3 level 2 accounts

– Account 3521 – Provision for warranty of products and goods: This account is used to record the provision for product and goods warranties for the quantity of products and goods that have been determined to be consumed in the period;

– Account 3522 – Provision for warranty of construction works: This account is used to record the reserve for construction warranty for works, work items completed and handed over during the period;

– Account 3524 – Provision for other payables: This account reflects provisions for other payables as prescribed by law in addition to those reflected above, such as provision for severance allowance under the provisions of the Labor Law, repair costs. Periodic maintenance, fixed assets…

Article 48. Account 353 – Bonus and welfare fund

1. Accounting principles

a) This account is used to record the current number, increase and decrease of bonus fund, welfare fund and bonus fund of the management board of the company. Bonus and welfare funds are deducted from the after-tax profits of enterprises to be used for rewarding and encouraging material benefits, serving public welfare needs, and improving and enhancing material living standards. employees' mental health.

b) The appropriation and use of bonus funds, welfare funds and bonus funds of the management board of the company must comply with the current financial policy or the decision of the owner.

c) The reward fund, welfare fund and bonus fund of the management board of the company must be accounted for in detail according to each type of fund.

d) For fixed assets invested and purchased with the welfare fund when completed and used for production and business, an increase in fixed assets shall be recorded at the same time as an increase in owner's invested capital and a decrease in the welfare fund.

dd) For fixed assets invested and purchased with the welfare fund when completed and used for cultural and welfare needs of the enterprise, an increase in fixed assets shall be recorded and at the same time transferred from the Welfare Fund (Account 3532) to the Fund. welfare for which fixed assets have been formed (account 3533). These fixed assets are not depreciated monthly, but at the end of the accounting year, depreciation of fixed assets is calculated once/year to reduce the welfare fund that has formed fixed assets.

2. Structure and contents of account 353 – Bonus and welfare fund

Debtor:

– Expenditures on bonus funds, welfare funds, bonus funds for the management board of the company;

- Reducing the welfare fund that has formed fixed assets when calculating depreciation of fixed assets or due to sale, liquidation, or detection of shortages when inventorying fixed assets;

– Invest in and purchase fixed assets with the welfare fund when completed to serve cultural and welfare needs;

- Grant bonus and welfare funds to subordinates.

Yes Party

- Deduction for setting up bonus fund, welfare fund and bonus fund for the management board of the company from profit after CIT;

- Bonus and welfare fund granted by superiors;

– The welfare fund that has formed fixed assets increases due to the investment and purchase of fixed assets by the welfare fund, which is completed and put into use for production, business or cultural and welfare activities.

Credit balance: Number of bonus and welfare funds of the enterprise.

Account 353 – Bonus and welfare fund, has 4 level 2 accounts:

– Account 3531 – Bonus fund: Reflects the current number, the situation of setting up and spending the bonus fund of the enterprise.

– Account 3532 – Welfare fund: Reflect the current number, the situation of setting up and spending the welfare fund of the enterprise.

– Account 3533 – Welfare fund with fixed assets: Reflects the current number, the increase and decrease of the welfare fund that has formed the fixed assets of the enterprise.

– Account 3534 – Bonus fund for executive management of the company: Reflects the current number, the situation of setting up and spending the bonus fund of the executive management board of the company.

Article 49. Account 356 – Science and technology development fund

1. Accounting principles

a) This account is used to record the current number, the increase or decrease of the Science and Technology Development Fund (S&T) of the enterprise. The enterprise's science and technology development fund can only be used for science and technology investment in Vietnam.

b) The Science and Technology Development Fund is accounted into the enterprise's management expenses to determine the business results in the period. The setting up and use of the Science and Technology Development Fund of the enterprise must comply with the provisions of law.

c) In case an enterprise uses the Science and Technology Development Fund to finance research and trial production, the proceeds from the sale of trial-produced products shall be offset against trial production costs according to the following principles:

- The difference between the proceeds from the sale of trial-produced products that is higher than the trial production costs shall be recorded as an increase in the Science and Technology Development Fund;

- The difference between the proceeds from the sale of trial production products and the cost of trial production is recorded as a reduction to the Science and Technology Development Fund.

d) Periodically, the enterprise shall make a report on the rate of deduction, use and settlement of the Science and Technology Development Fund and submit it to the competent authority as prescribed by law.

2. Structure and contents of Account 356 – Science and Technology Development Fund

Debtor:

– Expenditures from the Science and Technology Development Fund;

– Reduce the scientific and technological development fund that has formed fixed assets (fixed assets) when calculating depreciation of fixed assets; residual value of fixed assets upon sale or liquidation; expenses for liquidation and sale of fixed assets formed from the Science and Technology Development Fund;

– Reduce the science and technology development fund that has formed fixed assets when the fixed assets formed from the science and technology development fund are converted to serve production and business purposes.

Yes Party:

- Setting up the Science and Technology Development Fund into enterprise management expenses;

- Revenues from the liquidation and sale of fixed assets formed from the Science and Technology Development Fund that have formed fixed assets.

Credit balance: Number of existing science and technology development funds of the enterprise.

Account 356 – Science and Technology Development Fund has 2 tier 2 accounts:

– Account 3561 – Science and technology development fund: Reflect the current number and situation of setting up and spending the science and technology development fund;

– Account 3562 – Science and technology development fund that has formed fixed assets: Reflects the current number, increase and decrease of the science and technology development fund that has formed fixed assets (Science and technology development fund has formed fixed assets).

Article 50. Accounting principles for equity

1. Equity is the remaining net assets of an enterprise owned by shareholders and capital contributors (owners). Owner's equity is reflected according to each source as follows:

- Owner's contributed capital;

– Profits from business activities;

– Other items allowed to be recorded as an increase in equity.

2. The accountant does not record the contributed capital according to the charter capital on the business registration license. The amount of capital mobilized and received from the owners is always recorded according to the actual amount contributed, absolutely not according to the amount of commitment to contribute by the owners. In case the capital contribution is received by non-monetary assets, accountants must record it according to the fair value of the non-monetary assets at the date of capital contribution.

3. The receipt of capital contributions in the form of intangible assets such as copyrights, rights to exploit and use properties, trademarks, trademarks, etc. can only be made when there are specific provisions of the law or a competent authority. permission permission. When the law does not have specific provisions on this issue, capital contribution transactions with trademarks and trademarks are accounted for as property leases or franchises, whereby:

– For the party contributing capital with a brand, trademark, or trade name: The proceeds from the use of the mark or trade name by the other party are the revenue from leasing intangible assets or franchising. , no increase in the value of the investment in another entity and income or equity is recognized in proportion to the value of the investment;

– For the party receiving capital contribution in the form of a brand, trademark or trade name: The value of the brand, trademark or trade name is not recorded and an increase in equity is recorded in proportion to the value of the brand, trademark, trade name receiving capital contribution. Payments for the use of trademarks, trademarks and trade names are recorded as rental costs and franchise costs.

4. Profit distribution is done only when the enterprise has undistributed after-tax profit. Any case of paying dividends or profits to owners in excess of undistributed after-tax profits is essentially a reduction in contributed capital. amendment of business registration certificate.

Article 51. Account 411 – Owner's investment capital

1. Accounting principles

a) This account is used to record the capital currently invested by the owner and the increase or decrease in the owner's invested capital.

b) Owner's investment capital includes:

– Initial and additional capital contributions of the owners;

- Surplus equity;

- Have always been different.

c) Enterprises only record to account 4111 – “Owner’s contributed capital” according to the actual amount of capital contributed by the owner, not recorded according to commitments and receivables of the owners.

d) The enterprise must organize detailed accounting of the owner's investment capital according to each source of capital formation (such as owner's contributed capital, share capital surplus, and other capital) and keep track of details for each organization. organizations and individuals contribute capital.

dd) The enterprise records a decrease in the owner's investment capital when:

– Return capital to owners, cancel treasury shares in accordance with law;

- Dissolution, termination of operation in accordance with the law;

- Other cases as prescribed by law.

e) Determine the investor's capital contribution in foreign currency

– When the investment license stipulates that the charter capital of the enterprise is determined in a foreign currency equivalent to an amount of Vietnamese dong, the determination of the investor's capital contribution in foreign currency (excess, insufficient, sufficient) compared to charter capital) is based on the amount of foreign currency actually contributed, regardless of the conversion of foreign currency into Vietnam dong according to the investment license.

– In case the enterprise keeps accounting books, prepares and presents financial statements in accounting currency, when investors contribute capital in foreign currency according to the schedule, the accountant must apply the actual exchange rate. at each time of actual contribution to convert into accounting currency and record into owner's invested capital, share capital surplus (if any).

– During the operation, the balance of Account 411 – Owner’s investment capital is not re-evaluated in foreign currency.

g) In case of receiving capital contribution in the form of assets, an increase in the owner's investment capital must be recorded according to the revaluation price of the property accepted by the capital contributors.

h) For joint-stock companies, the share capital contributed by the shareholders is recorded at the actual price of the issue of shares, but is reflected in detail according to two separate criteria: Owner's contributed capital and capital surplus. share:

- Owner's contributed capital is reflected at par value of shares;

– Share premium reflects the difference between par value and issuance price of shares (including re-issuance of treasury shares) and can be positive surplus (if the issue price is higher than par value). or negative surplus (if the issue price is below par).

2. Structure and contents of Account 411 – Owner's investment capital

Debtor: Owner's investment decreased due to:

- Return of contributed capital to capital owners;

– Issuance of shares lower than par value;

- Dissolution, termination of business activities;

- Compensation for business losses according to the decision of the competent authority;

– Cancellation of treasury shares (for joint stock companies).

Yes Party: Owner's investment capital increases due to:

– Owners contribute capital;

– Supplementing capital from business profits, from equity funds;

– Issuance of shares higher than par value;

- The value of gifts, donations and sponsorships (after deducting payable taxes) may be recorded as an increase in the owner's investment capital according to the decision of the competent authority.

Credit balance: Investment capital of the existing owners of the business.

Account 411 – Owner's investment capital, there are 3 tier 2 accounts:

– Account 4111 – Owner’s contributed capital: This account reflects the actual capital invested by the owners according to the company's charter of the capital owners. For joint-stock companies, capital contributed from the issuance of shares is recorded in this account at par value. Account 4111 – Owner's contributed capital in a joint-stock company can be detailed into voting ordinary shares and preferred shares.

– Account 4112 – Share premium: This account reflects the difference between the issue price and par value of shares; The difference between the repurchase price of treasury shares and the re-issuance price of treasury shares (for joint-stock companies). This account can have a Credit balance or a Debit balance.

– Account 4118 – Other capital: This account reflects the amount of business capital formed by the addition of business results or by donation, donation, sponsorship, or revaluation of assets (if these amounts are allowed to be recorded as an increase or decrease in investment capital). owner's property).

Article 52. Account 413 – Exchange rate differences

1. General provisions on exchange rates and exchange rate differences

1.1. Exchange difference is the difference arising from the actual exchange or conversion of the same amount of foreign currency into the accounting currency at different exchange rates. Exchange rate differences mainly arise in the following cases:

- Actual purchase, sale, exchange and payment of economic transactions arising in foreign currency during the period;

– Re-evaluate monetary items denominated in foreign currencies at the time of preparation of the financial statements;

– Convert financial statements prepared in foreign currencies into Vietnam Dong.

1.2. Types of exchange rates (hereinafter referred to as rates) used in accounting

Enterprises with economic operations in foreign currencies must record their accounting books and prepare financial statements in a unified currency, which is Vietnam Dong or the accounting currency. The conversion of a foreign currency into an accounting currency must be based on:

– Actual exchange rate;

- Rates recorded in accounting books.

When determining tax obligations (declaring, finalizing and paying taxes), enterprises must comply with the provisions of tax law.

1.3. Principles of determining book rate:

The bookkeeping rate includes the actual actual bookkeeping rate or the weighted average book rate (weighted average exchange rate after each entry or at the end of the period).

– The actual actual book rate is the rate determined in relation to the transaction that has occurred at a particular time. The actual nominal exchange rate is applied to record in the accounting books for the Debit party the accounts receivable for the amount in foreign currency that has been advanced from the customer or for the creditor the account payable for the account receivable. advance money in foreign currency to the seller.

– The weighted average bookkeeping exchange rate is the rate determined on the basis of taking the total value (in the accounting currency) of each monetary item denominated in a foreign currency divided by the actual amount of the original currency at every time.

1.4. Principles of determining exchange rates and handling exchange rate differences:

1.4.1. For foreign currency transactions arising during the period:

a) The enterprise applies the actual exchange rate to convert it into the currency in which it is recorded in the accounting books on the following principles:

– Actual exchange rate when buying and selling foreign currencies (foreign currency trading spot contracts, forward contracts, futures contracts, options contracts, swap contracts): is the rate signed in foreign currency purchase and sale contracts between enterprises and commercial banks;

- In case the contract does not specify the payment rate, the enterprise shall use the actual exchange rate, which is approximately the average transfer rate of the commercial bank where the enterprise regularly conducts transactions. for bookkeeping.

This approximate exchange rate must ensure that the difference does not exceed +/-1% compared to the average transfer rate of the commercial bank where the enterprise regularly conducts transactions (this bank is chosen by the enterprise). . The average transfer rate can be determined daily, weekly or monthly on the basis of the average of the daily transfer buying and selling rates of the commercial bank.

Enterprises may apply the actual exchange rate which is the approximate rate for accounting books for:

+ Debiter of cash accounts; The Debiter of Accounts Receivable (except for the case of receiving advances from customers in foreign currencies, the Debiter of Account 131 shall apply the actual actual book exchange rate for the amount received in advance), the Debiter of Accounts payable when advance payment to the seller.

+ The Creditor has accounts payable (except for the case of advance payment to the seller in foreign currency, the Creditor of Account 331 shall apply the actual actual book-by-name exchange rate for the advance); Creditors have accounts receivable when receiving money from customers in advance.

+ Owner's equity account;

+ The accounts reflect revenue and other income.

Particularly in the case of selling products, goods, providing services or generating income with money received in advance from the buyer, the revenue and income corresponding to the amount received in advance shall be applied the actual exchange rate at the time of payment. pre-receipt point. The part of revenue and income corresponding to the remaining amount is recorded at the actual exchange rate at the time of revenue and income recognition.

+ The accounts reflect production, business and other expenses.

Particularly in case of allocating prepaid expenses to production and business expenses in the period, the expenses are recorded at the actual exchange rate at the time of prepayment (not applicable at the actual exchange rate at the time of prepayment). time of cost allocation).

+ Accounts reflect assets.

Particularly for the case of buying assets with cash advance to the seller, the asset value corresponding to the advance amount is applied the actual exchange rate at the time of advance, the asset value corresponds to the remaining amount. are recognized at actual exchange rates at the time of asset recognition.

The use of the actual exchange rate as the above-mentioned approximation rate must ensure that it does not materially affect the financial position and results of production and business activities of the accounting period.

b) Enterprises may choose to apply the book rate to convert into accounting currency in the following cases:

– Apply the weighted average book-to-date exchange rate to account the Credit side of cash accounts, the Credit side of accounts receivable (except for the transaction of receiving money in advance from the buyer), the Debit side of accounts payable (except minus prepayment to the seller).

+ In addition to applying the weighted average book-keeping exchange rate, enterprises can choose to apply the actual exchange rate to the accounting books for the creditor of cash accounts, the creditor of accounts receivable and the other party. Debts to accounts payable.

Foreign exchange differences arising during the period are recognized simultaneously at the time of arising or periodically in financial income or financial expenses depending on the characteristics of business operations and management requirements of the Company. enterprise.

+ In case the enterprise uses the actual exchange rate to record the creditor's cash accounts, the creditor's accounts receivable, and the debit's accounts payable in foreign currencies, if at the end of the accounting period, maths:

(+) For monetary items denominated in foreign currencies without original currency balances, the enterprise must transfer all exchange rate differences arising in the period to financial income or financial expenses of the period. report.

(+) For monetary items denominated in foreign currencies with original currency balances, the enterprise must re-evaluate at the end of the period at the weighted average carrying rate and all exchange rate differences due to the revaluation of the items. Monetary items denominated in foreign currencies shall be handled in accordance with Clause 1.4.2 of this Article.

- Apply the actual nominal exchange rate to account for:

+ The debit side of the account must collect when finalizing the money received in advance from the buyer when transferring products, goods, fixed assets, providing services to customers;

+ The Creditor must pay when finalizing the advance payment to the seller upon receipt of the seller's products, goods, services, and fixed assets.

1.4.2. The exchange rate for revaluation of monetary items denominated in foreign currencies is the average transfer rate at the end of the period of the commercial bank where the enterprise regularly conducts transactions (selected by the enterprise) at the time of preparation of the Report. financial statements.

All exchange rate differences due to revaluation of monetary items denominated in foreign currencies (in net amount after clearing amounts incurred on debit side and credit side to Account 413) are charged to financial expenses ( if loss) or financial income (if profit) to determine the results of operations.

1.4.3. Handling the exchange rate difference before the operation:

– Enterprises that have not fully allocated exchange rate difference losses of the pre-operation period (recording on account 242 before the effective date of this Circular) must carry forward all exchange rate difference losses to financial expenses to determine business results in the period.

– Enterprises that have not fully allocated the exchange rate difference profit of the pre-operation period (which is being reflected in account 3387 before the effective date of this Circular) must transfer all exchange rate difference profits into revenue from financial activities to determine business results in the period.

1.5. Principles of determining monetary items denominated in foreign currencies: These are assets recovered in foreign currencies or liabilities in foreign currencies. Monetary items denominated in foreign currencies may include:

a) Cash, cash equivalents, term deposits in foreign currencies;

b) Receivables and payables denominated in foreign currencies, except:

– Prepayments to sellers and prepaid expenses in foreign currencies. Where at the time of preparation of the financial statements there is solid evidence that the seller is unable to provide the goods or services and the enterprise will have to receive back prepayments in foreign currencies, these amounts are considered to be monetary items denominated in foreign currencies.

– Prepayments from buyers and revenue received in foreign currencies in advance. Where at the time of preparation of the financial statements there is solid evidence that the enterprise cannot provide goods and services and will have to return the advance payments in foreign currency to the buyer, these amounts are considered as monetary items denominated in foreign currencies.

c) Loans and loans in any form are entitled to be recovered or have the obligation to repay in foreign currencies.

d) Deposits, deposits and deposits are entitled to receive back in foreign currency;

dd) Deposits and deposits must be returned in foreign currency.

2. Accounting principles for exchange rate differences

a) The enterprise must also keep track of the original currency in the detailed accounting books of the following accounts: Cash, bank deposits, receivables, payables, contributed capital of the owner.

b) All exchange rate differences arising in the period are immediately reflected in financial income (if profit) or financial expense (in case of loss) of the reporting period.

c) Enterprises must re-evaluate monetary items denominated in foreign currencies according to the period-end average transfer rate of the commercial bank where the enterprise regularly conducts transactions at all times of preparing the financial statements. according to regulations of the Law.

d) Enterprises must not capitalize exchange rate differences into the value of unfinished assets.

3. Structure and contents of Account 413 – Exchange Differences

Debtor:

– Exchange rate loss due to revaluation of monetary items denominated in foreign currencies;

- Transfer of exchange rate interest into financial income.

Yes Party:

– Exchange rate gains due to revaluation of monetary items denominated in foreign currencies;

– Transfer the exchange rate loss into financial expenses.

Account 413 has no balance.

Article 53. Account 418 – Equity funds

1. Accounting principles

This account is used to record the current amount and the increase and decrease in equity funds. These funds are formed from profits after CIT. The appropriation and use of funds belonging to the equity source must comply with the current financial policies applicable to each type of enterprise or the decision of the owner.

2. Structure and contents of Account 418 – Equity funds

Debtor: Situation of spending and use of funds under the enterprise's equity.

Yes Party: Funds under equity increased because they were set aside from profit after tax.

Credit balance: Number of existing equity funds.

Article 54. Account 419 – Treasury shares

1. Accounting principles

a) This account is used to record the current value and the increase or decrease in the number of shares repurchased by a joint-stock company among the shares issued by such company to the public (referred to as shares). treasury bills).

The treasury shares held by the company are not entitled to receive dividends, have no right to vote or participate in the distribution of assets when the company is dissolved. When paying dividends on shares, treasury shares held by the company are considered unsold shares.

b) The value of treasury shares is reflected on this account at the actual repurchase price, including the redemption price and costs directly related to the repurchase of shares, such as transaction costs, information, etc.

c) At the end of the accounting period, when preparing the financial statements, the actual value of treasury shares is recorded as a decrease in Owner's invested capital on the financial position statement by recording a negative number (…).

d) This account does not reflect the value of shares purchased by the company from other joint stock companies for the purpose of holding investment.

dd) The capital value of treasury shares upon re-issuance, or when used to pay dividends, bonuses, etc., is calculated according to the weighted average method.

e) In case the company buys back shares issued by the company itself for the purpose of recovering shares to permanently cancel immediately upon purchase, the value of purchased shares is not recorded in this account but recorded as a decrease in value. directly into owner's contributed capital and share capital surplus (see instructions in account 411 – Owner's investment capital).

2. Structure and contents of account 419 – Treasury shares

Debtor: Actual value of treasury shares when purchased.

Yes Party: Actual value of treasury shares to be re-issued, dividend or canceled.

Debit side balance: Actual value of treasury shares currently held by the company.

Article 55. Account 421 – Undistributed profit after tax

1. Accounting principles

a) This account is used to record business results (profit and loss) after corporate income tax and the distribution of profits or handling of losses of the enterprise.

b) The distribution of profits from business activities of the enterprise must be clear, unambiguous and in accordance with current financial policies.

c) The business results of each financial year (previous year, this year) must be recorded in detail, and at the same time, detailed monitoring of each content of profit distribution of the enterprise (appropriation of funds, owners' investment capital, dividends, profits to shareholders, to investors).

d) When applying retrospectively due to changes in accounting policies and retrospective adjustment of material errors of previous years but only discovered this year, leading to the adjustment of the opening balance of the year undistributed profits, The accountant must increase or decrease the opening balance of account 4211 "Previous year's undistributed profit after tax" in the accounting books and increase or decrease the target "Undistributed profit after tax" on the report. financial situation.

For all businesses, when distributing profits, it is necessary to consider non-monetary items in undistributed after-tax profits that can affect cash flows and ability to pay dividends, profits of the company. businesses, such as:

– Profits from revaluation of assets used for capital contribution; due to revaluation of monetary items denominated in foreign currencies; due to revaluation of financial instruments;

– Other non-monetary items…

e) In the business cooperation contract (BCC) profit sharing, the enterprise must separately monitor the results of the BCC as a basis for profit distribution or loss distribution to the parties. The enterprise that is the party to pay and finalize CIT on behalf of the parties in the BCC only reflects the profit corresponding to its share, not the entire result of the BCC on this account unless it has control. for BCC.

g) For payable preference dividends: Enterprises must base on the nature of preferred shares to account according to the following principles:

– If preferred shares are classified as a liability, no dividend payable from undistributed after-tax profit is recognized;

– If preferred stock is classified as equity, the preferred dividend payable is accounted for in the same manner as the dividend payment of common stock.

h) Enterprises must track in the internal management system the number of taxable losses and non-taxable losses, in which:

– Taxable loss is the loss generated by deductible expenses when determining taxable income;

– Non-taxable loss is a loss caused by expenses that are not deductible when determining taxable income.

When transferring losses according to the provisions of law, enterprises are only allowed to transfer the taxable losses as a basis for deduction of tax payable in the future.

2. Structure and contents of Account 421 – Undistributed profit after tax

Debtor:

- Number of losses on business activities of the enterprise;

- Deduction for the establishment of enterprise funds;

– Divide dividends and profits to owners;

- Supplement the owner's investment capital.

Yes Party:

- Actual profit from business activities of the enterprise in the period;

– The number of losses of the subordinate is compensated by the superior;

- Handling business losses.

Account 421 can have a Debit balance or a Credit balance.

Debit side balance: Number of unresolved business losses.

Credit balance: Amount of undistributed or unused profit after tax.

Account 421 – Undistributed profit after tax, has 2 tier 2 accounts:

– Account 4211 – Undistributed profit after tax of the previous year: Reflects business results, profit distribution or loss treatment in previous years. Account 4211 is also used to record an increase or decrease in the opening balance of Account 4211 when applying retrospectively due to changes in accounting policies and retrospective adjustment of material errors of the previous year, this year is new. detect.

At the beginning of the following year, the accountant will transfer the opening balance of the year from Account 4212 "This year's undistributed profit after tax" to Account 4211 "Previous year's undistributed profit after tax".

– Account 4212 – Undistributed profit after tax this year: Reflecting the business results, profit distribution and loss handling of this year.

Article 56. Revenue accounting principles

1. Revenue is an economic benefit obtained that increases the owner's equity of the enterprise minus the additional capital contributed by shareholders. Revenue is recognized at the time of the transaction, when it is probable that the economic benefits will flow, measured at the fair value of the amounts entitled to receive, regardless of whether cash has been collected or will be collected.

2. Revenue and costs of generating such revenue must be recognized simultaneously on the matching principle. However, in some cases, the matching principle may conflict with the prudential principle in accounting, so the accountant must base on the nature of the transaction to reflect honestly and reasonably.

– An economic contract can include many transactions. Accountants must identify transactions in order to apply appropriate revenue recognition conditions.

– Revenue must be recognized in accordance with the nature rather than the form or name of the transaction and must be allocated according to the obligation to provide goods and services.

+ For example: Customers can only receive promotional goods when buying products and goods of the unit (such as buying 2 products, getting one more free), the nature of the transaction is to reduce the sale price, the product is free. to customers in the form called promotion but in essence is to sell because customers will not enjoy if they do not buy the product. In this case, the value of the product given to the customer is recorded in the cost price and the revenue corresponding to the fair value of that product must be recognized.

– For transactions that give rise to obligations of the seller now and in the future, revenue must be amortized according to the fair value of each obligation and recognized when the obligation has been fulfilled. .

3. Revenue, profit or loss is only considered unrealized if the enterprise still has the responsibility to perform future obligations (except for ordinary warranty obligations) and it is not certain that economic benefits will be obtained; The classification of profits and losses as realized or unrealized does not depend on whether cash flows have arisen or not.

Gains and losses arising from revaluation of assets and liabilities are not considered unrealized because at the time of revaluation, the entity already has a right to the asset and has a present obligation to the entity. With respect to liabilities, for example: Gains and losses arising from revaluation of assets taken to contribute capital to invest in other entities, revaluation of financial assets at fair value are all considered. is done.

4. Revenue does not include third-party receipts, for example;

- Indirect taxes (VAT, export tax, excise tax, environmental protection tax) to be paid;

– The amount of money collected by the agent selling goods on behalf of the goods owner due to agent selling;

– Additional surcharges and fees other than the unit selling price are not entitled;

- Other cases.

In case the payable indirect taxes cannot be immediately separated at the time of transaction, to facilitate the accounting work, revenue can be recorded in the accounting books, including the amount of indirect tax but periodically, the accounting must record a decrease in revenue for the payable indirect tax amount. However, when preparing financial statements, accountants are required to determine and exclude the entire payable indirect tax amount from the indicators reflecting gross revenue.

5. The time and basis for recording accounting revenue and taxable revenue may vary depending on each specific situation. Taxable turnover is only used to determine the payable tax amount as prescribed by law; The revenue recorded in the accounting books for the preparation of financial statements must comply with accounting principles and, depending on the case, not necessarily equal to the amount recorded on the sales invoice.

6. Revenue recognized only includes revenue of the reporting period. Revenue accounts have no balance. At the end of the accounting period, revenue must be transferred to determine business results.

Article 57. Account 511 – Revenue from sale of goods and provision of services

1. Accounting principles

1.1. This account is used to record the enterprise's revenue from selling goods and providing services in an accounting period of production and business activities from the following transactions and transactions:

a) Sale of goods: Sale of products manufactured by enterprises, sale of purchased goods and sale of investment real estate;

b) Service provision: Performing the work agreed upon under the contract in one accounting period, or many accounting periods, such as providing transportation services, tourism, leasing fixed assets by mode of operating lease, doing business. construction contract collection….

c) Other revenue.

1.2. Conditions for revenue recognition

a) An enterprise only recognizes sales revenue when simultaneously satisfying the following conditions:

– The enterprise has transferred the majority of risks and benefits associated with the ownership of products and goods to the buyer;

– The enterprise no longer holds the right to manage the goods as the owner or the right to control the goods;

- The revenue can be measured reliably. When the contract stipulates that the buyer is entitled to return the purchased products and goods under specific conditions, the business is only allowed to recognize revenue when those specific conditions no longer exist and the buyer cannot the right to return products and goods (except for cases where customers have the right to return goods in the form of exchange for other goods or services);

– The enterprise has or will receive economic benefits from the sale transaction;

- Determine the costs associated with the sale transaction.

b) An enterprise only recognizes revenue from service provision when the following conditions are simultaneously satisfied:

- The revenue can be measured reliably. When the contract stipulates that the buyer is entitled to return the purchased service under specific conditions, the business can only recognize revenue when those specific conditions no longer exist and the buyer is not entitled to return the service. service provided;

– The enterprise has or will receive economic benefits from the transaction of providing such services;

– Identify the work completed at the time of reporting;

– Determine the costs incurred for the transaction and the cost to complete the transaction providing that service.

1.3. In case an economic contract includes many transactions, the enterprise must identify the transactions to recognize revenue, for example:

– Where the economic contract stipulates the sale and provision of after-sales services (in addition to the normal warranty terms), the enterprise must separately record sales revenue and revenue from service provision;

- Where the contract stipulates that the seller is responsible for installing products and goods for the buyer, revenue is recognized only after the installation is completed;

– In case an enterprise is obliged to provide the buyer with free goods or services or at a discount or discount, revenue shall be recognized only from those goods or services that must be provided free of charge until upon fulfillment of its obligations to the buyer.

1.4. Net sales and service provision that the enterprise can perform in the accounting period may be lower than the revenue from sales and provision of services initially recognized due to the following reasons: Trade discount, decrease the price of goods sold to customers or returned goods (due to the failure to ensure the conditions of specifications and quality stated in the economic contract);

In case products, goods and services have been sold from previous periods, to the next period, the sale price must be discounted, sold goods are sold, or sales are returned as a decrease in revenue according to the following principles:

– If products, goods and services that have been sold from previous periods, to the next period must be reduced in price, have to be discounted for trade, or are returned but arise before the time of issuance of financial statements, the accountant must consider this as an event arising after the date of the financial statements and record a decrease in revenue in the financial statements of the reporting period.

– In case products, goods and services must be reduced in price, subject to commercial discount, or are returned after the issuance of financial statements, the enterprise shall record a decrease in revenue of the period in which they arise.

1.5. Revenue in some cases is determined as follows:

1.5.1. Revenue from sale of goods and provision of services does not include payable indirect taxes, such as VAT (including the case of payment of VAT by the direct method), excise tax, export tax, and environmental protection tax. .

In case it is not possible to immediately separate the payable indirect tax amount at the time of revenue recognition, the revenue shall be recorded including the payable tax amount and must periodically record a decrease in revenue for the payable indirect tax amount. . When preparing the income statement, the item "Revenue from sales and provision of services" and the item "Revenue deductions" do not include the amount of indirect tax payable in the period due to the nature of the indirect taxes are not considered part of revenue.

1.5.2. In case the enterprise has written a sales invoice and has collected the sales proceeds but at the end of the period has not yet delivered the goods to the buyer, the value of this goods shall not be considered as sold in the period and shall not be recorded. account 511 “Revenue from sale of goods and provision of services” but only credited to account 131 “Receivables from customers” about the amount collected from customers. When the goods are actually delivered to the buyer, they will account to account 511 “Revenue from sales and provision of services” on the value of goods delivered, pre-collected from sales, in accordance with the revenue recognition conditions.

1.5.3. In case of exporting goods for promotion or advertising, but customers are only allowed to receive promotional and advertising goods with other conditions such as having to buy products and goods (for example, buy 2 products, get 1 free). ....), the accountant must allocate the proceeds to calculate the revenue for both promotional goods, the value of promotional goods shall be included in the cost of goods sold (in this case, the nature of the transaction is a reduction in the sale price).

1.5.4. In case an enterprise has revenue from selling goods and providing services in foreign currencies and has a transaction to receive advances from customers, the revenue corresponding to the amount received in advance is recorded at the actual exchange rate. At the time of receiving the advance, the portion of revenue corresponding to the remaining amount is recognized at the actual exchange rate at the time of revenue recognition.

1.5.5. Revenue from selling real estate of an enterprise being an investor must comply with the following principles:

For works and work items in which the enterprise is the investor (including works and work items of which the enterprise is both the investor and self-constructed), the enterprise is not allowed to record revenue. sale of real estate and no revenue is recognized for the amount of money collected in advance from customers according to the progress. The recognition of revenue from real estate sales must satisfy the following five conditions simultaneously:

– The real estate has been completely completed and handed over to the buyer, the enterprise has transferred the risks and benefits associated with real estate ownership to the buyer;

– The enterprise no longer holds the right to manage the real estate as the owner of the real estate or control the real estate;

- The revenue can be measured reliably;

– The enterprise has obtained or will receive economic benefits from the sale of real estate;

– Determine the costs associated with the sale of real estate.

1.5.6. For goods sold by agents or consigned by the method of selling at the right price to enjoy commission, the revenue is the part of the sales commission that the enterprise is entitled to.

1.5.7. For import and export entrustment service activities, the revenue is the entrustment fee the unit is entitled to.

1.5.8. For the unit receiving the processing of materials and goods, the revenue is the actual processing amount to be enjoyed, excluding the value of the materials and goods received for processing.

1.5.9. In case of sale by mode of deferred payment or installment payment, the revenue is determined according to the immediate payment price;

1.5.10. Principles of revenue recognition and determination of construction contracts:

a) Revenue from a construction contract includes:

– Initial revenue recorded in the contract;

– Contract performance increases, decreases, bonuses and other payments if they are likely to change revenue, and can be reliably determined:

+ Contract revenue may increase or decrease from time to time, for example: Contractor and customer may agree on changes and requirements that increase or decrease contract revenue in the next period. according to the first approved contract; The revenue agreed in the contract with a fixed price may increase because of the increased price; Contractual revenue may be reduced because the contractor fails to comply with the schedule or does not ensure the construction quality as agreed in the contract; When a fixed-price contract stipulates a fixed price for a unit of finished product, contract revenue will increase or decrease as product volume increases or decreases.

+ Bonuses are additional payments to contractors if the contractor performs the contract to meet or exceed the requirements. The bonus is included in the revenue of the construction contract when two conditions are met: (i) It is certain to meet or exceed a number of specific standards stated in the contract; (ii) The bonus amount is reliably determined.

– Other payments received by the contractor from the customer or another party to cover costs not included in the contract price. Example: Delays caused by customers; Errors in specifications or design and disputes over changes in contract performance. The determination of additional revenue from the above payments is subject to many uncertainties and often depends on the outcome of many negotiations. Therefore, other payments are only included in construction contract revenue when:

+ The agreements have been reached, the customer will accept the compensation;

+ Other payments that are approved by the customer and can be reliably determined.

b) Record revenue from construction contracts as follows:

When the outcome of a construction contract can be reliably determined and confirmed by the customer, the revenue and costs associated with the contract are recognized in proportion to the portion of the work completed by the customer. confirmed in the period reflected on the invoice made.

c) When the outcome of a construction contract cannot be reliably estimated, then:

– Revenue is recognized only to the extent of contract costs incurred for which it is probable that reimbursement will be made;

– Contract costs are only recognized as expenses in the period when these costs have been incurred.

1.5.11. No revenue from sales or service provision is recorded for:

- Value of goods, supplies and semi-finished products delivered to outside parties for processing; Value of goods consigned for sale by the method of consignment or agent consignment (not yet determined to be sold);

– The proceeds from the sale of trial products;

– Revenues from financial activities;

- Other incomes.

2. Structure and contents of Account 511 – Sales and service provision

Debtor:

- Indirect taxes payable (VAT, SCT, export, environmental protection);

- The deduction from revenue;

– Transfer net revenue to account 911 “Determination of business results”.

Yes Party: Revenue from sale of products, goods, investment real estate and provision of services by the enterprise during the accounting period.

Account 511 has no ending balance.

Account 511 – Revenue from selling goods and providing services, has 4 level 2 accounts:

– Account 5111 – Sales of goods: This account is used to record sales and net sales of goods sold in an accounting period. This account is mainly used for trading in goods, supplies, food, etc.

– Account 5112 – Sales of semi-finished products: This account is used to record sales and net sales of the volume of products (finished products, semi-finished products) determined to be sold in an accounting period of the enterprise. This account is mainly used for physical production industries such as industry, agriculture, construction, fishery, forestry, etc.

– Account 5113 – Service provision revenue: This account is used to record the revenue and net revenue of the volume of services completed, provided to customers and determined to be sold during an accounting period. This account is mainly used for business services such as: transportation, post office, tourism, public services, scientific and technical services, accounting services, auditing, etc.

– Account 5118 – Other revenue: This account is used to record revenue from sale and liquidation of investment properties, subsidies and subsidies of the State...

Article 58. Account 515 – Revenue from financial activities

1. Accounting principles

a) This account is used to record income from interests, royalties, dividends, distributed profits and other financial incomes of the enterprise, including:

Interest: Interest on loans, interest on bank deposits, sales interest on deferred payment, installment payments, interest on investment in bonds, bills, payment discounts enjoyed for purchasing goods and services;

– Dividends and profits distributed to the period after the investment date;

- Income from investment activities, buying and selling short-term and long-term securities; Capital transfer profit upon liquidation of capital contribution investments in other entities;

– Income from other investment activities;

– Exchange rate gain arising in the period and revaluation of monetary items denominated in foreign currencies at the end of the period; profit from selling foreign currency;

- Revenues from other financial activities.

b) For trading securities, revenue is recognized as the difference between the selling price and the cost price, in which the cost price is the book value determined by the weighted average method. or first in first out, the selling price is calculated according to the fair value of the amount received. In case of buying and selling securities in the form of stock swap (the investor swaps shares A for shares of B), the accountant determines the value of the received shares at the fair value at the exchange date as follows: after:

– For the received shares being listed shares, the fair value of the shares is the closing price listed on the stock market at the exchange date. If the stock market is not traded at the date of exchange, the fair value of shares is the closing price of the previous trading session adjacent to the date of exchange.

– For the received shares are unlisted shares traded on UPCOM, the fair value of the shares is the closing price announced on UPCOM at the exchange date. In case the UPCOM exchange is not traded, the fair value of the shares is the closing price of the previous trading session adjacent to the exchange date.

- For the received shares are other unlisted shares, the fair value of the shares is the price agreed between the parties or the book value at the time of exchange or the book value at the end of the previous quarter. adjacent to the date of exchange. The book value of shares is determined according to the following formula:

c) For revenue from buying and selling foreign currencies, revenue is recorded as the profit difference between the selling price of foreign currency and the buying price of foreign currency.

d) For deposit interest: Revenue does not include deposit interest arising from the temporary investment of loans used for construction of unfinished assets.

dd) For interest receivable from loans, deferred payment and installment sales: Revenue is recognized only when it is certain to be collected and the loan principal and receivable principal is not classified as overdue. need to make a backup.

e) With respect to the investment profit received from the investment in stocks and bonds, only the profit of the periods after the enterprise repurchases this investment can be recognized as revenue arising in the period. , and investment gains received from accumulated investment profits before the enterprise repurchases such investment, the original price of such bond or stock investment shall be recorded as a decrease.

g) When an investor receives a stock dividend, the investor only tracks the increased number of shares in the notes to the financial statements, does not record the value of received shares, does not record financial income, No increase in investment value was recorded in the company.

h) The accounting of revenue from financial activities arising in connection with foreign currency shall comply with the provisions of Article 52 of this Circular.

2. Structure and contents of Account 515 – Financial income

Debtor:

- The payable VAT amount calculated by the direct method (if any);

– Transfer net financial income to account 911 – “Determination of business results”.

Yes Party: Revenues from financial activities arising during the period.

Account 515 has no ending balance.

Article 59. Principles of cost accounting

1. Expenses are amounts that reduce economic benefits, which are recognized at the time when the transaction occurs or when it is relatively certain to arise in the future, regardless of whether money has been spent or not.

2. The recognition of expenses even when the payment maturity is not yet due but there is a certainty that they will arise in order to ensure the principle of prudence and preservation of capital. The cost and the revenue it generates must be recognized simultaneously under the matching principle. However, in some cases, the matching principle may conflict with the prudential principle in accounting, so the accountant must base on the nature of the transaction to reflect honestly and reasonably.

3. Accountants must keep track of costs incurred by factors, wages, raw materials, outsourced costs, depreciation of fixed assets, etc.

4. Expenses that are not considered deductible expenses according to the provisions of the Law on CIT but have full invoices and vouchers and have been properly accounted for according to the accounting regime are not allowed to reduce accounting expenses but only adjusted in the CIT finalization to increase the payable CIT amount.

5. The expense accounts have no balance. At the end of the accounting period, all expenses incurred in the period must be transferred to determine the business results.

Article 60. Account 611 – Purchases

1. Accounting principles

a) This account is used to record the value of raw materials, materials, tools, instruments and goods purchased, warehoused or put into use during the period. Account 611 “Purchase” only applies to enterprises that account for inventory by the periodic inventory method.

b) The value of purchased raw materials, materials, tools, tools and goods recorded in account 611 "Purchase" must comply with the original cost principle.

c) In case of accounting for inventories by the periodic inventory method, the enterprise must organize an inventory of inventories to determine the quantity and value of each raw material, material, goods, product, tools and supplies in stock at the end of the accounting period to determine the value of inventory used and sold during the period.

d) Method of accounting for inventory by periodic inventory method: When purchasing raw materials, materials, tools, instruments, goods, based on purchase invoices, transportation invoices, and warehouse receipts , notice of payable import tax (or import tax receipt, ...) to record the original price of purchased goods to account 611 "Purchase". When exporting for use or selling, it is recorded only once at the end of the accounting period based on the inventory results.

dd) The accountant must open a detailed book to record the original cost of purchased inventory for each type of raw materials, materials, tools, instruments and goods.

2. Structure and contents of Account 611 – Purchases

Debtor:

- Carrying forward the original cost of goods, raw materials, materials, tools and supplies in inventory at the beginning of the period (according to the inventory results);

– Original price of goods, raw materials, materials, tools, tools, purchased during the period.

Yes Party:

- Carrying forward the original cost of goods, raw materials, materials, tools and supplies in inventory at the end of the period (according to the inventory results);

- Original cost of goods, raw materials, materials, tools and instruments used in the period or cost of goods sold and consigned for sale (not yet determined to be sold in the period);

– Original price of raw materials, materials, tools, tools, purchased goods returned to the seller or discounted.

Account 611 has no ending balance.

Article 61. Account 631 – Production cost

1. Accounting principles

a) This account is used to record the aggregate production costs and calculate the cost of products and services in industrial, agricultural and forestry production units and transport and postal service business units. electricity, tourism, hotels, etc. in the case of inventory accounting by the periodic inventory method.

b) For enterprises that record inventories by the regular declaration method, this account shall not be used.

c) Only record into account 631 the following types of production and business expenses:

- Cost of direct materials and materials;

- Direct labor costs;

– Expenses for using construction machines (for construction and installation enterprises);

- General production costs.

d) Failing to account 631 of the following expenses:

- Selling expenses;

- Enterprise Cost Management;

- Financial expenses;

- Other costs;

dd) Expenses of production and business departments in service of production and business, the value of capital goods, raw materials and materials and costs of outsourcing processing (outsourcing, or self-processing, processing) is also reflected on account 631.

e) Account 631 “Production cost” must be recorded in detail according to the place where the cost is incurred (workshop, team, production team,…) by type, product group, service…

g) For the agricultural sector, the actual cost of products is determined at the end of the crop or at the end of the year. Products harvested in any year will calculate the cost in that year, that is, the costs will be spent this year, but the next year, the products will be harvested, the next year will calculate the cost.

- For the cultivation industry, expenses must be accounted in detail according to 3 types of trees:

+ Short-day plants;

+ Plants are harvested once and harvested many times;

+ Perennial plants.

For crops that grow 2 or 3 crops in a year, either planted this year, harvested next year, or plants that have both a new planting area and an area of ​​care and harvest in the same year, etc. must be based on the actual situation to record, clearly reflect the costs of this crop with another crop, of this area with another area, of the previous year with this year and next year, etc. Not reflected in the financial statements. Clause 631 “Production cost” costs for new planting and taking care of perennial plants in the period of capital construction.

For some types of costs related to many accounting objects or related to many cases and periods, they must be tracked in detail and then allocated to the cost of each type of related product such as: : Expenses for irrigation, land preparation and new planting in the first year of one-time, multiple-harvested crops (this cost is not part of capital construction investment).

On the same cultivated area, if two or more short-term industrial crops are intercropped, the costs incurred directly related to which tree will be collected separately for that tree (such as seeds, costs, etc.) planting and harvesting) costs incurred in general for all types of plants (such as the cost of plowing, harrowing, watering, etc.) are collected separately and distributed to each type of tree according to the planted area.

For perennial plants, the work from tilling, planting, tending to starting to produce products is considered as the process of capital construction investment to form fixed assets, expenses are collected into Account 241 “Incomplete construction. spread".

- Livestock cost accounting must be monitored in detail for each livestock industry (buffalo breeding industry, pig farming industry...), by group or by type of cattle and poultry. For breeding animals, when they are eliminated and converted into large and fat reared animals, they are recorded in account 631 “Production cost” according to the residual value.

h) Account 631 “Production costs” applicable to the transport industry must be accounted in detail for each type of activity (passenger transport, freight transport...). In the process of transportation, tires are worn out at a faster rate than the depreciation of the vehicle, so they often have to be replaced many times, but the value of replacement tires is not included in the transportation cost at once when exported for replacement. , which must be deducted in advance or gradually allocated to production and business expenses on a monthly basis.

i) In hotel business, account 631 must be recorded in detail according to each type of activity such as: Food and beverage activities, room service, entertainment and other services (laundry). , ironing, haircut, telegram, massage…).

2. Structure and contents of Account 631 – Production cost

Debtor:

- Cost of production and trading of unfinished products and services at the beginning of the period;

– Actual costs of production and trading of products and services incurred in the period.

Yes Party:

– Cost of goods in stock and completed services will be transferred to account 632 “Cost of goods sold”.

– Expenses for production and trading of unfinished products and services at the end of the period will be transferred to account 154 “Expenses of production and business in progress”.

Account 631 has no ending balance.

Article 62. Account 632 – Cost of goods sold

1. Accounting principles

a) This account is used to record the capital value of products, goods, services, investment real estate; production cost of construction and installation products (for construction and installation enterprises) sold in the period. In addition, this account is also used to record expenses related to investment real estate business such as: Depreciation expenses; repair costs; the cost of leasing investment property under the operating lease mode; Cost of selling and liquidating investment property...

b) The allowance for devaluation of inventories is included in cost of goods sold on the basis of inventories and the difference between the net realizable value and the cost of inventories. When determining the volume of inventory that is subject to a decrease in value for which a provision is made, the accountant must exclude the volume of inventory that has been signed for sale (with a net realizable value not lower than the value of the contract). book) but has not yet been delivered to the customer if there is firm evidence that the customer will not abandon the performance of the contract and excludes inventories used for capital construction, the value of inventories used for produce a product that is made from these inventories whose selling price is equal to or higher than the cost of production.

c) For the value of inventory that is lost or lost, the accountant must immediately calculate it into the cost of goods sold (after deducting compensation, if any).

d) Import taxes, excise taxes, and environmental protection taxes have been included in the value of purchased goods. If these taxes are refunded when selling goods, they shall be recorded as a decrease in the cost of goods sold.

e) Expenses that are not considered deductible expenses according to the provisions of the CIT Law but have sufficient invoices and documents and have been properly accounted for according to the accounting regime shall not be recorded as a reduction in accounting expenses but only adjusted in the CIT finalization to increase the payable CIT amount.

2. Structure and contents of Account 632 – Cost of goods sold

2.1. In case the enterprise accounts for inventory according to the regular declaration method.

Debtor:

- For production and business activities, reflect:

+ Capital value of products, goods and services sold during the period.

+ Costs of raw materials, materials, labor costs in excess of the normal level and unallocated fixed general production costs are included in the cost of goods sold in the period;

+ Loss or loss of inventory after deducting compensation caused by personal liability;

+ Amount of provision for devaluation of inventories (the difference between the amount of provision for devaluation of inventories that must be made this year is larger than the amount of provision made in the previous year that has not yet been used up).

- For investment real estate business, reflect:

+ Depreciation of investment property used for operating leases during the period;

+ Expenses for repairing, upgrading and renovating investment property are not eligible to be included in the historical cost of investment property;

+ Expenses arising from the leasing of investment real estate activities during the period;

+ Residual value of investment property sold or liquidated during the period;

+ Expenses for the sale and liquidation of investment property incurred during the period;

+ Loss due to decrease in value of investment property held pending price increase;

+ Accrued expenses for real estate goods that are determined to be sold.

Yes Party:

– Transfer the cost of products, goods and services sold during the period to account 911 “Determination of business results”;

- Carrying forward all investment property business expenses incurred in the period to determine business results;

– Reversal of provision for devaluation of inventories at the end of the fiscal year (the difference between the amount of provision to be made this year is smaller than the amount made in the previous year);

- Value of returned goods;

– The refund of accrued expenses for real estate goods that are determined to be sold (the difference between the remaining prepaid expenses is higher than the actual costs incurred);

– Trade discount, sales discount received after the purchased goods have been sold;

– Adjustment to increase the historical cost of investment property held for price increase when there is solid evidence that the investment property shows signs of increasing price again;

- Import taxes, excise taxes, and environmental protection taxes have been included in the value of purchased goods, if these taxes are refunded when selling goods.

Account 632 has no ending balance.

2.2. In case the enterprise accounts for inventory by the periodic inventory method.

2.2.1. For commercial businesses

Debtor:

- Cost of goods sold during the period.

– Amount of provision for devaluation of inventories (the difference between the amount of provision to be made this year is larger than the amount made in the previous year that has not yet been used up).

Yes Party:

- Carrying forward the cost of goods sold but not yet determined to be sold;

– Reversal of provision for devaluation of inventories at the end of the fiscal year (the difference between the amount of provision to be made this year is smaller than the amount made in the previous year);

– The cost of goods sold is transferred to the debit side of Account 911 “Determination of business results”.

2.2.2. For manufacturing and service businesses

Debtor:

- Cost of finished products and services in inventory at the beginning of the period;

– Amount of provision for devaluation of inventories (the difference between the amount of provision to be made this year is larger than the amount of provision made in the previous year that has not been used up);

– Capital value of finished products, warehoused and completed services.

Yes Party:

– Transfer the cost of finished goods and services in inventory at the end of the period to Account 155 “Finished products”; Account 154 “Production and business expenses, in progress”;

– Reversal of provision for devaluation of inventories at the end of the fiscal year (the difference between the amount of provision to be made this year is smaller than the amount made in the previous year that has not yet been used up);

– Cost of goods sold and completed services carried forward is determined to be sold during the period to Account 911 “Determination of business results”.

Account 632 has no ending balance.

Article 63. Account 635 – Financial expenses

1. Accounting principles

a) This account reflects expenses for financial activities, including:

– Interest expense on loan, interest on deferred purchase, interest on lease of financial leased assets;

– Payment discount for buyers;

– Losses due to liquidation or sale of investments; transaction costs of selling securities;

– Exchange rate loss incurred during the period; Exchange rate loss due to period-end revaluation of monetary items denominated in foreign currencies; Loss of foreign currency sales;

– Amount of provision for devaluation of trading securities, provision for loss of investment in other entities;

– Other financial investment expenses;

- Other financial expenses.

b) Account 635 must be recorded in detail for each expense item. The following expenses shall not be recorded into account 635:

- Expenses for the production of products and provision of services;

- Selling expenses;

- Enterprise Cost Management;

- Real estate business expenses;

- Capital construction investment costs;

- Expenses to be covered by other funding sources;

- Other costs.

c) The accounting of financial expenses related to foreign currencies shall comply with the provisions of Article 52 of this Circular.

2. Structure and contents of Account 635 – Financial expenses

Debtor:

– Financial expenses incurred in the period;

– Making additional provision for devaluation of trading securities, provision for loss of investments in other entities (the difference between the provision to be made in this period is larger than the provision made in the previous period).

Yes Party:

– Reversal of provision for devaluation of trading securities, provision for loss of investment in other entities (the difference between the provision to be made in this period is smaller than the provision made in the previous period that has not been used up);

– Amounts recorded as a reduction in financial expenses;

– At the end of the accounting period, all financial expenses incurred in the period shall be transferred to determine the business results.

Account 635 has no ending balance.

Article 64. Account 642 – Business administration expenses

1. Accounting principles

1.1. This account is used to record business administration expenses including selling and administrative expenses:

Selling expenses include actual costs incurred in the process of selling products, goods, and providing services, including costs of offering, introducing products, advertising products, and sales commissions. , costs of product and goods warranty (except for construction and installation activities), costs of preservation, packaging, transportation, salaries of sales staff (salaries, wages, allowances, ...) , social insurance, health insurance, union funding, unemployment insurance, labor accident insurance of sales staff; cost of materials, labor tools, depreciation of fixed assets used for the sales department; outsourced services (electricity, water, telephone, fax,...); other monetary costs.

General and administrative expenses include general management expenses of the enterprise, including expenses for salaries of management department staff (salaries, wages, allowances,...); social insurance, health insurance, trade union funding, unemployment insurance of enterprise management staff; costs of office materials, labor tools, depreciation of fixed assets used for enterprise management; land rent, license tax; provision for bad debts; outsourced services (electricity, water, telephone, fax, property insurance, fire and explosion...); other monetary expenses (reception, customer conference...).

1.2. Selling and administrative expenses, which are not considered deductible expenses according to the provisions of the CIT Law, but have sufficient invoices and vouchers and have been properly accounted according to the accounting regime, are not recorded. reduce accounting costs but only adjust in the CIT finalization to increase the payable CIT amount.

1.3. Account 642 is opened in detail according to each expense content according to regulations. Depending on the management requirements of each industry and each business, account 642 can be opened in detail according to each type of expense such as selling expenses, administrative expenses. In each type of expense, details are tracked according to each cost content such as:

a) For selling expenses:

- Workers cost: Reflects payables to sales staff, staff packing, transporting, preserving products, goods, etc., including wages, mid-shift meals, wages and social insurance deductions, Health insurance, union dues, unemployment insurance, etc.

- Cost of materials, packaging: Reflect costs of materials and packaging used for the preservation and consumption of products, goods and services, such as costs of packaging materials for products, goods, costs of materials and fuel used for preserving, loading and unloading products and goods in the process of consumption, materials used for repair and preservation of fixed assets, etc. for the sales department.

Cost of tools and supplies: Reflecting the cost of tools and instruments in service of the process of consuming products and goods such as measuring instruments, calculation means, working means, etc.

- Depreciation cost of fixed assets: Reflect the depreciation expense of fixed assets in the storage and sales department, such as warehouses, stores, yards, loading and unloading vehicles, transportation, calculation, measuring, and quality testing facilities, etc.

- Maintenance cost: Used to reflect the cost of product and goods warranty. Particularly, the cost of repair and warranty of construction works is recorded in Account 154 "Cost in progress of production and business" but not in this account.

- Cost of hired services: Reflecting costs of services purchased outside for sales such as costs of outsourcing repair of fixed assets directly serving the sale stage, warehouse rent, yard rent, loading and unloading rent, transportation of products and goods for sale, commissions for sales agents, for export entrustment units, etc.

– Other monetary expenses: Reflects other cash expenses incurred in the sale of goods in addition to the above-mentioned expenses such as costs of receiving guests in the sales department, costs of introducing products, goods, promotions, advertising, sales offers, customer conference costs..

b) For enterprise administration expenses:

- Management staff expenses: Reflects payables to management staff, such as salaries, allowances, social insurance, health insurance, union dues, unemployment insurance of the Board of Directors, employees managers in departments of the enterprise.

- Cost of materials management: Reflect the cost of exported materials used for business management such as stationery… materials used for the repair of fixed assets, tools, tools, etc. (prices with or without VAT).

- Cost of office supplies: Reflect the cost of tools and office supplies used for management work (prices with or without VAT).

- Depreciation cost of fixed assets: Reflects the depreciation expense of fixed assets shared by the enterprise such as: Office buildings, warehouses, architectural objects, means of transport and transmission, management machinery and equipment used in offices, etc.

- Taxes, charges and fees: Reflect expenses on taxes, fees and charges such as license tax, land rent, etc. and other fees and charges.

- Redundancy costs: Reflects provisions for doubtful receivables and payables which are included in the enterprise's production and business expenses.

- Cost of hired services: Reflecting costs of services purchased from outside for business management; expenses for purchase and use of technical documents, patents, etc. (not meeting the criteria for recognition of fixed assets) are calculated by the method of amortization into administrative expenses; fixed asset rent, expenses paid to subcontractors.

– Other monetary expenses: Reflects other expenses under the general management of the enterprise, in addition to the above-mentioned expenses, such as: conference expenses, reception of guests, business trip expenses, transportation, expenses for female employees, etc.

1.4. For products and goods used for promotion and advertising:

- In case of producing products and goods for promotion and advertising without collecting money, without other conditions such as having to buy products and goods, the value of promotional and advertising goods shall be recorded in selling expenses. .

– In case of producing products and goods for promotion and advertising, but customers are only allowed to receive promotional and advertising goods with other conditions such as having to buy products and goods (for example, buying 2 gift 1 product, etc.), the value of promotional and advertising goods shall be recorded in the cost of goods sold (in this case, the nature of the transaction is a reduction in the sale price).

– In case an enterprise with commercial activities is entitled to receive goods (without paying) from manufacturers or distributors to advertise and promote for customers to buy goods from manufacturers or distributors:

+ When receiving goods from the manufacturer (without paying) used for promotion and advertising for customers, the distributor must track the details of the quantity of goods in their internal management system and explain it on the copy. notes to the financial statements for the goods received and the goods used to promote the buyer (such as goods held on behalf of).

+ At the end of the promotion program, if the unused promotional goods are not returned to the manufacturer, other income shall be recorded as the value of the promotional goods that do not have to be returned.

2. Structure and contents of Account 642 – Business administration expenses

Debtor:

– Business administration expenses incurred in the period;

– Provisions for doubtful debts and payables (The difference between the provision to be made in this period is larger than the provision made in the previous period that has not been used up);

Yes Party:

– Amounts recorded as a reduction in business administration expenses;

– Reversal of provision for doubtful debts, provision for payables (the difference between the provision to be made in this period is smaller than the provision made in the previous period that has not yet been used up);

– Transfer business management expenses to account 911 “Determination of business results”.

Account 642 has no ending balance.

Account 642 – Business administration expenses has 2 level 2 accounts:

– Account 6421 – Selling expenses: Reflecting actual selling expenses incurred in the process of selling products, goods and providing services in the period of the enterprise and the situation of transferring selling expenses to Account 911- Determination of business results.

– Account 6422 – Business administration expenses: Reflects general administrative expenses of the enterprise incurred during the period and the transfer of administrative expenses to Account 911 – Determination of business results.

Article 65. Account 711 – Other income

1. Accounting principles

a) This account is used to record incomes other than normal business and production activities of the enterprise, including:

- Income from sale and liquidation of fixed assets;

– The difference between the fair value of assets divided from BCC is higher than the investment cost to build the jointly controlled assets;

– Differences in profit due to revaluation of supplies, goods and fixed assets used for capital contribution to joint ventures, investments in associates and other investments;

- Taxes payable when selling goods or providing services but then being reduced or refunded (refundable export tax, VAT, SCT, and environmental protection tax payable but then reduced);

– Collect fines due to customers breaching the contract;

– Collecting third-party compensation to compensate for lost property (for example, collecting indemnified insurance premiums, business relocation compensation and the like);

- Collection of bad debts that have been written off;

– Collection of payable debts whose owners cannot be identified;

- Bonuses of customers related to the consumption of goods, products and services are not included in the revenue (if any);

- Income from gifts and gifts in cash and in kind from organizations and individuals donated to enterprises;

– The value of promotional goods is not returned to the manufacturer;

- Other incomes other than those mentioned above.

b) When it is probable that the fines for breach of contract will be collected, the accountant must consider the nature of the fines so that the accounting can be appropriate to each specific case according to the following principles:

– For the seller: All fines for breach of contract obtained from the buyer outside the contract value are recognized as other income.

- For the buyer:

+ The fine is essentially a discount of the purchase price, reducing the payment for the seller to account for the reduction of the value of the asset or payment (not accounted for in other income) unless the property is related. The agency has been liquidated and sold.

For example, when the construction contractor is behind schedule, the investor is fined the contractor accordingly, and is entitled to recover part of the money already paid to the contractor, the recovered amount is recorded as a decrease in the value of construction assets. . However, if the fine is collected after the property has been liquidated or sold, the fine will be recorded in other income.

+ Other fines are recognized as other income in the period in which they arise, for example: The buyer is entitled to refuse to receive the goods and fines the seller if the goods are not delivered on time specified in the contract, the fines receivable is recognized as other income when it is probable that it will be collected. In case the buyer still receives the goods and the fine is deducted from the payable amount, the value of the purchased goods is recorded according to the actual payable amount, the fines shall not be recorded in other income.

2. Structure and contents of Account 711 – Other income

Debtor:

- Amount of VAT payable (if any) for other incomes at enterprises paying VAT by the direct method.

– At the end of the accounting period, transfer other incomes arising in the period to account 911 “Determination of business results”.

Yes Party: Other incomes arising during the period.

Account 711 – Other income without ending balance.

Article 66. Account 811 – Other expenses

1. Accounting principles

a) This account reflects expenses incurred due to events or transactions that are separate from the normal operation of the enterprise. Other business expenses may include:

– Expenses for liquidation and sale of fixed assets (including expenses for bidding for liquidation). The proceeds from the sale of bidding documents for the liquidation and sale of fixed assets shall be recorded as a reduction in expenses for liquidation and sale of fixed assets;

– The difference between the fair value of assets divided from the BCC is smaller than the investment cost to build the jointly controlled asset;

- Remaining value of the demolished fixed asset;

- Remaining value of fixed assets liquidated or sold (if any);

- Difference in losses due to revaluation of supplies, goods and fixed assets used to contribute capital to joint ventures, associates and other investments;

- Fines payable for breach of economic contracts, fines for administrative violations;

– Other expenses.

b) Expenses that are not considered deductible expenses according to the provisions of the CIT Law but have sufficient invoices and vouchers and have been properly accounted for according to the accounting regime shall not be recorded as a reduction in accounting expenses but only adjusted in the CIT finalization to increase the payable CIT amount.

2. Structure and contents of Account 811 – Other expenses

Debtor: Other expenses incurred.

Yes Party: At the end of the period, all other expenses incurred during the period are transferred to account 911 “Determination of business results”.

Account 811 has no ending balance.

Article 67. Account 821 – Corporate income tax expenses

1. Accounting principles

a) Principles of corporate income tax cost accounting

– This account is used to record enterprise income tax expenses incurred in the year as the basis for determining the enterprise's after-tax business results in the current fiscal year.

– The corporate income tax expense recorded in this account is the payable corporate income tax amount calculated on the taxable income in the year and the current corporate income tax rate.

– Quarterly, the accountant shall base on the corporate income tax payment voucher to record the temporarily payable enterprise income tax amount into the enterprise income tax expense. At the end of the fiscal year, based on the tax finalization declaration, if the temporarily payable enterprise income tax amount in the year is smaller than the payable amount for that year, the accountant shall record the additional payable corporate income tax amount to the expenses. corporate income tax fees. In case the temporarily payable corporate income tax amount in a year is larger than the payable amount of that year, the accountant must record a reduction in corporate income tax expense as the difference between the temporarily payable corporate income tax amount in the year greater than the payable amount.

– In case of detecting non-material errors related to the payable corporate income tax of the previous years, the enterprise may account the increase (or decrease) in the payable enterprise income tax amount of the previous years to the expenses. corporate income tax of the year the error is discovered.

– For material misstatements, adjustments are made retrospectively.

– When preparing the financial statements, the accountant must transfer the incurred corporate income tax expense to account 911 – “Determination of business results” to determine the profit after tax in the accounting period.

2. Structure and contents of Account 821 – Corporate income tax expenses

Debtor:

– Corporate income tax expenses incurred in the year;

– Corporate income tax of previous years which must be additionally paid due to detection of unimportant errors of previous years is recorded as an increase in corporate income tax expense of the current year.

Yes Party:

- The actual payable enterprise income tax amount in the year is smaller than the temporarily payable enterprise income tax amount which is deducted from the recognized corporate income tax expense in the year;

– The amount of corporate income tax payable is recorded as a decrease due to detection of unimportant errors of previous years, which is recorded as a decrease in corporate income tax expense in the current year;

– The difference between corporate income tax expenses incurred in the year is greater than the amount recorded as a reduction in corporate income tax expenses in the year to account 911 – “Determination of business results”.

Account 821 – “Corporate income tax expenses” has no ending balance.

Article 68. 911 accounts – Determination of business results

1. Accounting principles

a) This account is used to identify and record the results of business and other activities of the enterprise in an accounting period. The results of business activities of an enterprise include: Results of production and business activities, financial results and other operating results.

The result of production and business activities is the difference between net revenue and cost of goods sold (including products, goods, investment real estate and services, production cost of construction products). installation, costs related to investment real estate business, such as depreciation, repair and upgrade costs, operating lease costs, liquidation costs, and investment property sales capital), selling and administrative expenses.

Financial performance is the difference between financial operating income and financial operating expenses.

– Other operating result is the difference between other income and other expenses and corporate income tax expense.

b) This account must fully and accurately reflect the business results of the accounting period. The results of business activities must be accounted for in detail by each type of activity (production, processing, trading, service, financial activities, etc.). In each type of business activity, it may be necessary to make detailed accounting for each type of product, each line of business, and each type of service.

c) Revenues and incomes transferred to this account are net sales and net income.

2. Structure and content of Account 911 – Determination of business results

Debtor:

– Capital value of products, goods, investment properties and services sold;

– Financial operating expenses, corporate income tax expenses and other expenses;

- Selling and administrative expenses;

- Profit transfer.

Yes Party:

– Net sales of products, goods, investment properties and services sold during the period;

– Revenue from financial activities, other incomes and the transfer to reduce corporate income tax expenses;

- Consolidation of losses.

Account 911 has no ending balance.

Chapter III

FINANCIAL REPORT

SECTION 1. GENERAL PROVISIONS

Article 69. Purpose of financial statements

1. Financial statements are used to provide information on the financial position, business situation and cash flows of an enterprise, to meet the management requirements of business owners, State agencies and the ownership needs. interests of users in making economic decisions. Financial statements must provide an enterprise's information about:

a) Property;

b) Liabilities;

c) Owner's equity;

d) Revenue, other income, production and business expenses and other expenses;

d) Profit, loss and distribution of business results.

2. In addition to this information, the enterprise must also provide other information in the "Notes to the Financial Statements" to further explain the items reflected in the financial statements and the accounting policies. used to recognize economic transactions, prepare and present the financial statements.

Article 70. Subjects of application, responsibility for preparation and signature on financial statements

1. Objects of preparation of annual financial statements:

The system of annual financial statements promulgated under this Circular is applicable to all types of small and medium sized enterprises in all fields, 123 all economic sectors in the country.

2. The signing of financial statements must comply with the provisions of the Law on Accounting. In case an enterprise does not prepare financial statements on its own but hires an accounting service provider to prepare financial statements, practitioners of the accounting service business units must sign and specify the number of the registration certificate. register to practice accounting services, the name of the unit providing accounting services on its financial statements.

Article 71. Financial reporting system

1. The annual financial reporting system applicable to small and medium-sized enterprises that meet the going concern assumption includes:

a) Mandatory report:

Depending on the characteristics of operations and management requirements, enterprises can choose to prepare a report of financial position according to Form No. B01b - DNN instead of Form No. B01a - DNN.

Financial statements sent to tax authorities must prepare and send additional balance sheets (Form F01 – DNN).

b) Reporting is not required but is encouraged to make:

2. The annual financial reporting system applicable to small and medium-sized enterprises that do not meet the going concern assumption includes:

a) Mandatory report:

b) Reporting is not required but is encouraged to make:

3. Compulsory annual financial reporting system applicable to microenterprises includes:

When preparing financial statements, enterprises must comply with the prescribed financial reporting form. During the application process, if necessary, enterprises can amend and supplement their financial statements to suit each field of operation and management requirements of the enterprise, but must be approved by the Ministry of Finance. in writing prior to execution.

In addition, enterprises can make other reports to serve the requirements of management, direction and administration of production and business activities of the unit.

4. The contents, methods of formulating and presenting indicators in each report are uniformly applied to small and medium enterprises.

Article 72. Requirements for information presented in financial statements

1. The information presented in the financial statements must be complete, objective, and free from errors in order to honestly and reasonably reflect the financial position, business situation and results of the enterprise.

Information is considered complete when it includes all information necessary to help users of financial statements understand the nature, form and risks of transactions and events. For some items, the full presentation must also describe additional information about the quality, factors and circumstances that may affect the quality and nature of the item.

– An objective presentation is unbiased when selecting or describing financial information. The objective presentation must ensure neutrality, not emphasize, emphasize or minimize as well as have other manipulations to change the degree of influence of financial information to be beneficial or unfavorable for users. Financial report.

– Zero error means no omission in the description of the phenomenon and no error in providing the selected and applied reporting information. Zero error does not mean that it is completely accurate in all respects, for example, it is difficult to determine whether it is accurate or inaccurate in estimating unobserved prices and values. The presentation of an estimate is considered truthful if the estimate is clearly described, the nature and limitations of the estimation process are explained, and there is no error in the selection of appropriate figures in the analysis. estimation process.

2. Financial information must be relevant to help users of the Financial Statements predict, analyze and make economic decisions.

3. Financial information must be presented in all material respects. Information is considered material where the lack of information or inaccurate information may influence the decision of users of the financial information of the reporting entity. Materiality is based on the nature and magnitude, or both, of the relevant items presented in the financial statements of a particular entity.

4. Financial information must be verifiable, timely and understandable.

5. Financial information must be presented consistently and comparable between accounting periods; Comparable between small and medium enterprises.

6. Items without figures are exempted from presentation in the Financial Statements. Enterprises are allowed to actively re-number the indicators according to the principle of continuity in each section.

Article 73. Principles for preparing and presenting financial statements of enterprises that satisfy the going concern assumption

1. Financial statements must reflect the economic nature of transactions and events rather than the legal form of such transactions and events (respecting substance over form).

2. Assets are not recognized at a higher than recoverable value; Liabilities are not recognized below the liability.

3. Classification of assets and liabilities: Assets and liabilities in the statement of financial position are presented according to decreasing liquidity or presented into short-term and long-term. Particularly, the report on financial position of micro enterprises is presented according to decreasing liquidity.

4. Where the financial position statement is presented in short-term and long-term:

In the statement of financial position, the items Assets and Liabilities must be presented separately into short-term and long-term, depending on the duration of the normal business cycle of the enterprise, specifically as follows:

a) For an enterprise with a normal business cycle of 12 months, Assets and Liabilities are classified into short-term and long-term according to the following principles:

– Assets and Liabilities that are recovered or settled within the next 12 months from the time when the report is classified as short-term;

– Assets and Liabilities that are recovered or settled 12 months or more from the reporting date are classified as long-term.

b) For enterprises with a normal business cycle longer than 12 months, Assets and Liabilities are classified into short-term and long-term according to the following conditions:

– Assets and Liabilities that are recovered or settled within a normal business cycle are classified as short-term;

– Assets and Liabilities that are recovered or settled over a period longer than a normal business cycle are classified as long-term.

In this case, the enterprise must clearly explain the defining characteristics of the normal business cycle, the average time of the normal business cycle, evidence of the business and production cycle of the enterprise as well as the industry or sector in which the business operates.

c) For businesses that, due to the nature of their operations, cannot rely on the business cycle to distinguish between short-term and long-term, the Assets and Liabilities are presented as point a of this section.

5. Assets and liabilities must be presented separately. Set off only when the assets and liabilities are related to the same object, arising from transactions and events of the same type.

6. Items of revenue, income and expenses must be presented on the principle of conformity and ensure the principle of prudence. The income statement and the statement of cash flows reflect the items of revenue, income, expenses, and cash flows for the reporting period. Revenues, incomes and expenses of previous periods that have errors that materially affect the results of operations and cash flows must be adjusted retrospectively by reporting them in the comparative column. adjusted for the reporting period. Particularly, micro-enterprises may adjust errors of previous periods in the period when errors are discovered.

Article 74. Principles for preparing and presenting financial statements of enterprises that do not meet the going concern assumption

1. When preparing and presenting financial statements, an enterprise must consider the going concern assumption. An enterprise is considered inactive if its operation term expires without application for extension of operation, is dissolved, bankrupt, or terminates its operation (a specific document must be sent to the competent authority). rights) within 12 months from the date of preparation of the financial statements. For enterprises with a normal production and business cycle of more than 12 months, it shall not exceed one normal production and business cycle.

2. In some of the following cases, an enterprise is still considered to be in continuous operation:

– The change in the form of business ownership, the change in the type of enterprise, for example transforming a limited company into a joint stock company or vice versa;

– The transformation of an independent accounting entity into an unincorporated dependent accounting entity or vice versa (for example, the transformation of a subsidiary into a branch or vice versa) is still permitted. considered to be in continuous operation.

3. When the going concern assumption is not met, an enterprise must still present its financial statements and clearly state that:

– Statement of financial position applicable to enterprises that do not meet the going concern assumption and are presented according to Form B01 – DNNKLT;

– The income statement, the statement of cash flows presented in the form B02 – DNN and B03 – DNN meet the going concern assumption;

– Notes to the financial statements apply to enterprises that do not meet the going concern assumption and are presented according to Form B09 – DNNKLT.

4. Where the assumption of going concern is no longer appropriate at the reporting time, the enterprise is not required to classify assets and liabilities into short-term and long-term but presents them according to decreasing liquidity.

5. Where the going concern assumption is no longer appropriate at the reporting time, the enterprise must reassess all assets and liabilities unless a third party inherits the right to the assets. assets or liabilities at book value. Enterprises must record in the accounting books at the re-evaluated price before preparing the statement of financial position.

5.1. Enterprises are not required to re-evaluate assets and liabilities if a third party inherits rights to assets or obligations to liabilities in some specific cases as follows:

a) In case one entity merges into another, if the merged entity commits to inherit all rights and obligations of the merged entity according to book value;

b) In case an entity is divided into other units, if the split unit commits to inherit all rights and obligations of the divided unit according to book value;

c) Each specific item of property is committed or guaranteed by another party to recover for the dissolved unit at its book value and the recovery takes place before the time when the unit officially ceases to operate;

d) Each specific liability item is committed by a third party to guarantee payment to the dissolved unit and the dissolved entity is only obliged to pay back to that third party at the book value. book;

5.2. The revaluation is carried out for each type of asset and liability according to the following principles:

(a) With respect to property:

– Inventories are valued at the lower of cost and net realizable value at the reporting date;

– Tangible fixed assets, intangible fixed assets, investment properties are valued at the lower of their residual value and recoverable value at the reporting time (which is the liquidation price minus estimated liquidation costs). count). For financial lease fixed assets, if there is a provision for compulsory redemption, they shall be re-evaluated similarly to the fixed assets of the enterprise. lease;

– Construction in progress is valued at the lower of book value and recoverable value at the reporting time (which is the liquidation price minus estimated disposal costs);

Trading securities are valued at fair value. The fair value of listed securities or securities on the UPCOM exchange is determined as the closing price of the trading session at the reporting date (or the immediately preceding session if the market is not trading on the reporting date);

– Investments and capital contributions to other entities are recognized at the lower of the carrying amount and recoverable value at the reporting time (saleable price less estimated selling expenses);

– Held-to-maturity investments, receivables are measured at actual recoverable amounts.

b) For payables: In case there is a written agreement between the parties on the payable amount, re-evaluate according to the agreed number. In the absence of a specific agreement, the following shall be followed:

– Cash payables are revalued at the higher of the book value of the liability and the value of the prepaid debt as stipulated in the contract;

– A financial asset that is revalued at the higher of the carrying amount of the liability and the fair value of the financial asset at the reporting date;

– Inventory liabilities are revalued at the higher of the carrying amount of the liability and the purchase price (plus directly attributable costs) or the cost of production of the inventory at the reporting date. report;

– Liabilities with fixed assets are revalued at the higher of the book value of the liability and the purchase price (plus directly related costs) or the residual value of the fixed asset at the reporting time.

c) Monetary items denominated in foreign currencies are revalued at the average closing exchange rate of the commercial bank where the enterprise regularly transacts at the reporting time as if the enterprise meets the operating assumptions. continuous motion.

6. Accounting method for some asset items when the enterprise does not meet the going concern assumption:

a) The provisioning or assessment of property loss is recorded as a direct decrease in the carrying value of the asset, no provision is made in Account 229 – “Provision for loss of assets”;

b) Depreciation or loss recognition of fixed assets and investment properties is recorded as a direct decrease in the carrying value of assets, without using Account 214 to record accumulated depreciation.

7. When the going concern assumption is no longer appropriate, an enterprise must deal with the following financial issues:

– Make an expense accrual to determine business results for expected future losses if the probability of loss is relatively certain and the amount of the loss can be estimated reliably. trust; Recognition of current obligations for payables even in the absence of sufficient documents (such as minutes of acceptance of the contractor's volume..) but payment is certain;

– For exchange rate differences that are cumulatively reflected in the statement of financial position (such as exchange rate differences arising from the conversion of financial statements into Vietnam Dong), the enterprise transfers all into financial income (if profit) or financial expense (if loss);

– Prepaid expenses that have not been fully allocated, such as goodwill arising from business combinations that do not lead to parent-subsidiary relationship, tools and equipment, business establishment costs, expenses in the implementation phase… are recorded as a whole reduction to account for the expenses in the period. Particularly, prepayment expenses related to asset lease and prepayment of loan interest are calculated and allocated to match the remaining actual prepayment period until officially shutting down;

– Differences in profit and loss upon revaluation of assets and liabilities after clearing against the provision made (if any) are recognized in financial income, other income or expenses. financial, and other expenses, depending on the specific item, are similar to the recognition of the enterprise that meets the going concern assumption.

8. Where the going concern assumption is no longer appropriate at the reporting time, the enterprise must disclose in detail its ability to generate cash and pay its liabilities and equity to shareholders and explain the reasons for the incompatibility between the information of the reporting period and the information of the comparative period, specifically:

- Amounts recoverable from the liquidation, sale of assets, recovery of receivables;

– Ability to pay debts in order of priority, such as the ability to pay debts to the State budget, repay debts to employees, repay loans and debts to suppliers;

– Ability to pay to owners, for joint stock companies, it is necessary to clearly disclose how much money each share will receive;

- Time to make payment of liabilities and owner's equity.

– Reason for not comparing the information of the reporting period and the comparative period: Because the previous period, the enterprise presented its financial statements on the principle that the enterprise meets the going concern assumption. Because the enterprise is about to dissolve, go bankrupt, terminate its operation under a decision of a competent authority (specify the name of the agency, the decision number) or the Board of Directors intends in writing (number, date of , month, year) should the financial statements for the reporting period be presented using a different accounting principle (does not meet the going concern assumption).

Article 75. Principles of preparation and presentation of financial statements when changing an accounting period

When changing an accounting period, for example changing an accounting period from a calendar year to an accounting period other than a calendar year, an enterprise must close its accounting books and prepare financial statements according to the following principles:

1. The change of an accounting period must comply with the provisions of the Law on Accounting. When changing the annual accounting period, the accountant must prepare separate financial statements for the period between the two accounting periods of the old fiscal year and the new fiscal year.

Example: Enterprise has an accounting period of 2014 according to the calendar year. In 2015, enterprises change to apply the annual accounting period starting from 1/4 of the previous year to March 31 of the following year, the enterprise must prepare financial statements for the period from January 3, 1 to March 1, 2015. 31.

2. For the statement of financial position: The entire balance of assets, liabilities and equity of the accounting period before the conversion is recorded as the opening balance of the new accounting period and presented to shown in the column “First number of the year”.

3. For the income statement and the statement of cash flows: The data from the time of change of the accounting period to the end of the first reporting period is presented in the column “This period”, the column ““ previous period” presents the figures for the previous 12 months equivalent to the current year.

Example: Following the above example, when presenting the column “Previous period” in the income statement starting from April 1, 4 and ending on March 2015, 31, the enterprise must present data for the period from April 3, 2016 to March 1, 4.

Article 76. Principles of preparation and presentation of financial statements when converting the form or form of enterprise ownership

When converting the form of ownership or the type of enterprise, it is required to close the accounting books and prepare financial statements in accordance with the law. In the first accounting period after the conversion, the enterprise must record in accounting books and present financial statements according to the following principles:

1. For accounting books reflecting assets, liabilities and owners' equity: The entire balance of assets, liabilities and equity in the old enterprise's accounting books is recorded as balance. the beginning of the period in the accounting books of the new enterprise.

2. For the statement of financial position: The entire balance of assets, liabilities and inherited equity of the old enterprise before the conversion is recorded as the opening balance of the new enterprise and is presented in the column “First number of the year”.

3. For the income statement and the statement of cash flows: The data from the time of conversion to the end of the first reporting period is presented in the column “This period”, the column “Previous period” present the data in the column “This period” of the report of the preceding period. The enterprise must present in the notes to the financial statements the reason why the data in the "previous period" column cannot be compared with the data in the "this period" column (if any).

Article 77. Principles of preparation and presentation of financial statements upon division, separation, consolidation or merger of enterprises

1. An accounting unit that is divided, split or consolidated into a new accounting unit must perform accounting tasks in accordance with the Law on Accounting. The new accounting unit shall perform the accounting work for the first accounting period according to the following principles:

- For accounting books reflecting assets, liabilities and owners' equity: All assets, liabilities and equity of the divided, split or consolidated accounting unit shall be recorded as follows: recognized as the arising number of the new accounting unit.

– For the statement of financial position: The column “First number of the year” of the new accounting unit has no data and this issue must be clearly stated in the notes to the financial statements.

– For the income statement and the statement of cash flows: Only data from the time of division, separation, consolidation to the end of the reporting period is presented in the column “This period”. The column “Previous period” has no data and must be clearly stated in the notes to the financial statements.

2. When merging accounting units, the merging accounting units must perform accounting tasks according to the provisions of the Law on Accounting. The merged accounting unit shall perform accounting work on the following principles:

– For accounting books reflecting assets, liabilities and owner's equity: All assets, liabilities and equity in the accounting books of the merged accounting unit are recorded as arising during the period of the merged entity. The opening balance of the merged accounting unit remained unchanged.

– For the statement of financial position: All assets, liabilities and equity of the merged accounting unit are consolidated and presented in the column “End of the year” of the accounting unit. merger settlement. The column "First number of the year" of the accounting unit that receives the merger remains the same.

– For Income Statement and Cash Flow Statement: All figures on the income statement and cash flow statement of the merged entity are summarized in the column “This period” of the merged entity and must be disclosed in the Notes to the financial statements.

Article 78. Currency used to prepare financial statements when publicizing and submitting to State management agencies in Vietnam

1. Financial statements used for public disclosure and submission to State management agencies in Vietnam must be presented in Vietnam Dong. In case an enterprise prepares its financial statements in a foreign currency, it must convert the financial statements into Vietnam Dong and, when disclosing it to the public and submitting it to the State management agencies in Vietnam, the financial statements must be converted into Vietnamese Dong. The main currency in Vietnam Dong must be attached to the financial statements in foreign currency. Financial statements used to determine the tax liability of an enterprise shall comply with the provisions of tax law.

2. Methods of converting financial statements made in foreign currencies into Vietnam Dong for information disclosure to the public and submission to State management agencies:

a) When converting financial statements prepared in foreign currencies into Vietnam Dong, accountants must convert the items of the financial statements according to the following principles:

– Assets and liabilities are converted into Vietnam Dong according to the average transfer rate at the end of the period of the commercial bank where the enterprise regularly conducts transactions;

- Equity (owner's contributed capital, share capital surplus, other capital) shall be converted into Vietnam Dong at the actual exchange rate at the date of capital contribution;

– Undistributed after-tax profits, funds extracted from undistributed after-tax profits are converted into Vietnam Dong by calculating according to the items of the income statement;

- Paid profits and dividends are converted into Vietnam Dong at the actual exchange rate at the date of payment of profits and dividends;

– Items in the income statement and the statement of cash flows are converted into Vietnam Dong at the actual exchange rate at the time of transaction or the average annual transfer rate ( case if the average rate is approximately the actual transaction rate).

b) Accounting method for exchange rate difference due to conversion of financial statements into Vietnam Dong.

Exchange differences arising when converting the financial statements into Vietnam Dong are recorded on the entry “Exchange differences” – Under the equity portion of the Financial Statements.

Article 79. Principles for making financial statements when changing currency units in accounting

1. When changing the accounting currency, at the first period since the change, the accountant shall convert the balance of the accounting book into the new accounting currency according to the average transfer rate of the bank. commercial goods where the enterprise regularly has transactions at the time of changing the accounting currency.

2. When presenting comparative information (the previous period column) on the income statement and the statement of cash flows of the period in which there is a change in the accounting currency, the exchange rate shall be applied. average transfer for the period preceding the period of change.

3. When changing the accounting currency, the enterprise must clearly state in the notes to the financial statements the reason for the change in the accounting currency and the effects (if any) on the financial statements. due to a change in the accounting currency.

Article 80. Responsibilities, time limits for making and submitting financial statements

1. Responsibilities, deadlines for making and sending financial statements:

a) All small and medium enterprises must prepare and send annual financial statements within 90 days from the end of the fiscal year to relevant agencies as prescribed.

b) In addition to making annual financial statements, enterprises can make monthly and quarterly financial statements to serve the requirements of management and administration of production and business activities of enterprises.

2. The place to receive the annual financial statements is specified as follows:

Enterprises submit annual financial statements to tax authorities, business registration offices and statistical offices.

Enterprises (including domestic enterprises and foreign-invested enterprises) having their head office located in export processing zones, industrial parks and high-tech zones shall, in addition to submitting annual financial statements to the establishments, According to regulations (tax authorities, business registration offices, statistical offices) must also submit annual financial statements to the Management Boards of export processing zones, industrial parks and high-tech zones if required.

SECTION 2. CONTENTS AND METHODS OF FINANCIAL STATEMENT OF SMALL AND SME ENTERPRISE

Article 81. Guidelines for preparation and presentation of financial statements

1. General information about the business

In the annual financial statements, enterprises must present the following general information:

– Name and address of the business;

– The end of the accounting period;

- The date of the financial statements;

– Currency used to record accounting books;

– The currency used in the preparation and presentation of financial statements.

2. Prepare and present the Financial Statements

2.1. Basis of preparation of the financial position report

- Based on the general accounting books;

- Based on detailed accounting books and cards or detailed summary tables;

– Based on the previous year's financial statement (to present the first column of the year).

2.2. Contents and methods of setting targets in the report on the financial position of the enterprise

2.2.1. For enterprises meeting the going concern assumption (see form B01a – DNN)

a) Property

– Cash and cash equivalents (Entry 110)

This entry reflects all cash on hand, demand deposits in banks and cash equivalents existing of the enterprise at the reporting time.

The data to be recorded in this entry is the total debit balance of accounts 111, 112, the detailed debit balance of Account 1281 (details of deposits with original term not exceeding 3 months) and Account 1288 (details of items that qualify as cash equivalents).

In addition, during the preparation of the statement, if it is found that the items reflected in other accounts satisfy the definition of cash equivalents, the accountants are allowed to present them in this entry. Cash equivalents may include: Bank promissory notes, treasury bills, etc.

Amounts previously classified as cash equivalents but overdue and not yet recovered must be presented in other entries, consistent with the content of each item.

When analyzing financial ratios, in addition to cash equivalents presented in this entry, accountants may consider cash equivalents including those with residual maturity of less than 3 months from the reporting date. (but with an original maturity of more than 3 months) is easily convertible to a known amount of money and is subject to no risk of conversion.

– Financial investment (Entry 120)

Is an aggregate entry reflecting the total value of financial investments (after deducting provision for loss of financial investments) of the enterprise at the reporting time, including: Trading securities, held-to-maturity investments and equity investments in other entities.

Financial investments reflected in this entry do not include investments presented in the entry “Cash and cash equivalents” (Entry 110) and loan receivables already presented in item “Other receivables” (Entry 134).

Code 120 = Code 121 + Code 122 + Code 123 + Code 124.

+ Trading securities (Entry 121)

This entry reflects the value of securities and other financial instruments held for trading purposes at the reporting time (holding for the purpose of waiting for price appreciation to sell for profit). This entry may include financial instruments that are not securitized, such as commercial papers, forward contracts, swaps, etc., held for trading purposes.

The data to record in this entry is the debit balance of Account 121.

+ Held-to-maturity investment (Entry 122)

This entry reflects held-to-maturity investments at the reporting time, such as term deposits, bonds, commercial paper and other debt securities. This entry does not include held-to-maturity investments presented in “Cash and cash equivalents” (Entry 110), and loan receivables presented in this entry. in the item “Other receivables” (Entry 134).

The data to be recorded in this entry is the detailed debit balance of accounts 1281, 1288.

+ Investing capital in other entities (Entry 123)

This entry reflects investments in joint ventures, associates and other investments.

The data to record in this entry is the debit balance of Account 228.

+ Provision for financial investment loss (Entry 124)

This entry reflects provision for devaluation of trading securities and provision for loss of investments in other entities at the reporting time.

The data to be recorded in this entry is the Credit balance of accounts 2291 and 2292 and is recorded in negative numbers in the form of parentheses (…).

– Receivables (Entry 130)

Is an aggregate entry reflecting the entire value of receivables at the reporting time, such as: Receivables from customers, prepayments to sellers, working capital in affiliated units, other receivables, financial outstanding assets pending settlement after deducting provision for doubtful debts.

Code 130 = Code 131 + Code 132 + Code 133 + Code 134 + Code 135 + Code 136.

+ Receivables from customers (Entry 131)

This entry reflects the amount receivable from customers at the reporting time.

The data to be recorded in this entry is based on the total detailed debit balance of Account 131 opened for each customer.

+ Prepayment to the seller (Entry 132)

This entry reflects the amount prepaid to the seller to purchase assets or services but have not yet received the assets or services at the reporting time.

The data for this entry is based on the total detailed debit balance of Account 331 opened by each seller.

+ Working capital in affiliated units (Entry 133)

This entry is only recorded in the financial position statement of the superior unit, reflecting the amount of business capital assigned to dependent accounting units. When preparing the consolidated financial statement of the whole enterprise, this entry is offset with the entry "Internal payables for working capital" (Entry 317) or the entry "Contributing capital of the owner" (Entry 411) on the report of financial position of the dependent accounting units, detailing the capital received by the superior unit.

Data to be recorded in this entry is based on the debit balance of Account 1361.

+ Other receivables (Entry 134)

This entry reflects other receivables at the reporting time, such as: Internal receivables other than business capital; receivables from loans, receivables from payments; receivables from profits, distributed dividends and advances; mortgages, deposits, escrow deposits, temporary loans, etc., which the enterprise is entitled to recover.

When the superior unit prepares the consolidated financial position report with the dependent accounting subordinate, other internal receivables in this entry are offset against other internal payables in the entry "Payables". other” (Entry 315) on the statement of financial position of the dependent accounting units.

The data to be recorded in this entry is the detailed debit balance of accounts 1288 (loans receivable), 1368, 1386, 1388, 334, 338, 141.

+ Pending pending assets (Entry 135)

This entry reflects shortfalls and losses of unknown causes pending at the reporting time.

The data to record in this entry is the debit balance of Account 1381.

+ Provision for bad debts (Entry 136)

This entry reflects the provision for doubtful receivables at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 2293 and is recorded in negative numbers in the form of parentheses (…).

– Inventory (Entry 140)

Is a general entry reflecting the entire current value of inventories of all kinds in reserve for the production and business process of the enterprise (after deducting the provision for devaluation of inventories) at the reporting time.

Code 140 = Code 141 + Code 142.

+ Inventory (Entry 141)

This entry reflects the total value of inventory owned by the enterprise at the reporting time.

The data to be recorded in this entry is the debit balance of accounts 151, 152, 153, 154, 155, 156, 157.

+ Provision for devaluation of inventories (Entry 142)

This entry reflects the provision for devaluation of inventories at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 2294 and is recorded in negative numbers in the form of parentheses (…).

– Fixed assets (Entry 150)

Is a general entry reflecting the entire residual value of fixed assets at the reporting time.

Code 150 = Code 151 + Code 152.

+ Original price (Entry 151)

This entry reflects all historical costs of fixed assets at the reporting time.

The data to record in this entry is the debit balance of Account 211.

+ Accumulated depreciation (Entry 152)

This entry reflects the total depreciated value of fixed assets accumulated at the reporting time.

Data to be recorded in this entry is the Credit balance of accounts 2141, 2142, 2143 and is recorded in negative numbers in the form of parentheses (…).

– Investment real estate (Entry 160)

Is an aggregate entry reflecting the entire residual value of investment properties at the reporting time.

Code 160 = Code 161 + Code 162.

+ Original price (Entry 161)

This entry reflects the entire historical cost of investment properties at the reporting time after deducting losses due to decline in value of investment properties held for price appreciation.

The data to reflect on this entry is the debit balance of Account 217.

+ Accumulated depreciation (Entry 162)

This entry reflects the total accumulated depreciation of investment properties used for rental at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 2147 and is recorded in negative numbers in the form of parentheses (…).

– Construction in progress (Entry 170)

This entry reflects the entire value of fixed assets being purchased, capital construction investment costs, major repair costs of unfinished or completed fixed assets that have not been handed over or put into use. at the time of reporting.

The data to record in this entry is the debit balance of Account 241.

– Other assets (Entry 180)

Is an aggregate entry reflecting the total value of other assets at the reporting time, such as deductible VAT and other assets at the reporting time.

Code 180 = Code 181 + Code 182.

+ Value added tax is deducted (Entry 181)

This entry reflects the deductible VAT amount and the refundable VAT amount at the reporting time.

The data to record in the entry “VAT deductible” is based on the debit balance of Account 133.

+ Other assets (Entry 182)

This entry reflects the total value of other assets at the reporting time, such as prepaid expenses, taxes and other overpaid amounts to the State.

The data for this entry is based on the detailed debit balance of Accounts 242, 333.

– Total assets (Entry 200)

Is a general entry reflecting the total value of existing assets of the enterprise at the reporting time.

Code 200 = Code 110 + Code 120 + Code 130 + Code 140 + Code 150 + Code 160 + Code 170 + Code 180.

b) Liabilities (Entry 300)

Is a general entry reflecting all payables at the reporting time.

Code 300 = Code 311 + Code 312 + Code 313 + Code 314 + Code 315 + Code 316 + Code 317 + Code 318 + Code 319 + Code 320

+ Payables to sellers (Entry 311)

This entry reflects the amount remaining to be paid to the seller at the reporting time. The data for this entry is based on the total detailed credit balance of Account 331 opened for each seller.

+ Buyer pays in advance (Entry 312)

This entry reflects the amount advanced by buyers to purchase products, goods, services, fixed assets, investment real estate and enterprises are obliged to provide at the reporting time (excluding revenue received in advance).

The data for this entry is based on the total detailed Credit balance of Account 131 opened for each customer.

+ Taxes and other payables to the State (Entry 313)

This entry reflects the total amount of money enterprises still have to pay to the State at the reporting time, including taxes, fees, charges and other payables.

The data to be recorded in this entry is based on the total detailed Credit balance of Account 333.

+ Payables to employees (Entry 314)

This entry reflects the remaining amounts payable by enterprises to employees at the reporting time. The data for this entry is based on the detailed Credit balance of Account 334.

+ Other payables (Entry 315)

This entry reflects other payables at the reporting time, such as: Expenses payable, internal payables other than payables to working capital, excess value of assets discovered for unknown reasons, Accounts payable to the social insurance agency, KPC, deposits received, deposits, unrealized revenue...

When the superior unit prepares a consolidated financial statement with the dependent accounting subordinate, other internal payables in this entry are offset against other internal receivables in the entry “Receivables other” (Entry 134) on the statement of financial position of the dependent accounting units.

Data for this entry are based on the detailed Credit balance of accounts 335, 3368, 338, 1388.

+ Loans and financial lease liabilities (Entry 316)

This entry reflects the total value of loans and debts owed by enterprises to banks, organizations, financial companies and other entities, including loans in the form of bonds and preferred shares. classified as a liability at the reporting time.

The data for this entry is based on the detailed Credit balance of Accounts 341 and 4111 (preferred shares are classified as liabilities).

+ Internal payables for working capital (Entry 317)

Depending on the operation characteristics and management model of each unit, the enterprise decentralizes and stipulates that the dependent accounting unit shall record the capital allocated by the enterprise to this entry or the target "Capital of the enterprise". owner's contribution” (Entry 411).

This entry is only presented in the statement of financial position of the subordinate unit without legal status, and reflects the amounts payable by the subordinate unit to the superior unit in terms of business capital.

The data to be recorded in this entry is based on the detailed Credit balance of Account 3361. When the superior unit prepares the consolidated financial statement of the whole enterprise, this entry is offset with the entry “Business capital.” business in affiliated units” (Entry 133) on the financial position report of the superior unit.

+ Provision for payables (Entry 318)

This entry reflects the provision for amounts expected to be payable at the reporting time, such as provision for warranty of products, goods, construction works, expenses for accrual for periodic repair of fixed assets, the cost of environmental restoration in advance… Provisions payable are often estimated, due to uncertainty about the time to be paid, the payable value and the enterprise has not yet received goods and services from the supplier.

The data for this entry is based on the Credit balance of Account 352.

+ Bonus and welfare fund (Entry 319)

This entry reflects the Bonus Fund, Welfare Fund, and Executive Management Bonus Fund which have not been used at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 353.

+ Science and technology development fund (Entry 320)

This entry reflects the unused Science and Technology Development Fund at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 356.

c) Equity (Entry 400)

Is a general indicator reflecting the business capital owned by shareholders and capital contributors, such as: Owner's contributed capital, share capital surplus, other owner's capital, profit after undistributed taxes, treasury shares, exchange rate differences.

Code 400 = Code 411 + Code 412 + Code 413 + Code 414 + Code 415 + Code 416 + Code 417

– Owner's contributed capital (Entry 411)

This entry reflects the total capital actually contributed by the owners to the enterprise (for joint stock companies, the capital contributed by shareholders at par value of shares) at the reporting time.

In the dependent accounting unit, this entry may reflect the allocated capital if the enterprise stipulates that the dependent accounting unit shall record the allocated business capital to Account 411.

The data to be recorded in this entry is the Credit balance of Account 4111.

– Share premium (Entry 412)

This entry reflects the share capital surplus at the reporting time of the joint stock company.

The data to be recorded in this entry is the Credit balance of Account 4112. If Account 4112 has a Debit balance, this entry is recorded with a negative number in the form of parentheses (…).

– Other capital of the owner (Entry 413)

This entry reflects the value of other owner's capital at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 4118.

– Treasury shares (Entry 414)

This entry reflects the current value of treasury shares at the reporting time of the joint stock company.

The data to be recorded in this entry is the debit balance of Account 419 and is recorded in negative numbers in the form of parentheses (…).

– Exchange rate difference (Entry 415)

In case the entity uses a currency other than Vietnam Dong as its accounting currency, this entry reflects the exchange rate difference resulting from the conversion of the financial statements into Vietnam Dong.

– Equity funds (Entry 416)

This entry reflects unused equity funds at the reporting time. The data to be recorded in this entry is the Credit balance of Account 418.

– Undistributed after-tax profit (Entry 417)

This entry reflects the undistributed after-tax profit (or loss) at the reporting time. The data to be recorded in this entry is the Credit balance of Account 421. In case Account 421 has a Debit balance, this entry's data is recorded in negative numbers in the form of parentheses (…).

– Total capital (Entry 500)

Is a general entry reflecting the total capital sources forming assets of the enterprise at the reporting time. Code 500 = Code 300 + Code 400.

2.2.2. For enterprises meeting the going concern assumption (See form B01b – DNN)

a) Current assets (Entry 100)

Is an aggregate entry reflecting the total value of cash and cash equivalents, short-term financial investments, short-term receivables, inventories and other short-term assets that can be sold or used in the future. period not exceeding 12 months or an ordinary business cycle of the enterprise at the reporting time.

Code 100 = Code 110 + Code 120 + Code 130 + Code 140 + Code 150.

– Cash and cash equivalents (Entry 110)

This entry reflects all cash on hand, demand deposits in banks and cash equivalents existing of the enterprise at the reporting time.

The data to be recorded in this entry is the total debit balance of accounts 111, 112, the detailed debit balance of Account 1281 (details of deposits with original term not exceeding 3 months) and Account 1288 (details of items that qualify as cash equivalents).

In addition, during the preparation of the statement, if it is found that the items reflected in other accounts satisfy the definition of cash equivalents, the accountants are allowed to present them in this entry. Cash equivalents may include: Bank promissory notes, treasury bills, etc.

Amounts previously classified as cash equivalents but overdue and not yet recovered must be presented in other entries, consistent with the content of each item.

When analyzing financial ratios, in addition to cash equivalents presented in this entry, accountants may consider cash equivalents including those with residual maturity of less than 3 months from the reporting date. (but with an original maturity of more than 3 months) is easily convertible to a known amount of money and is subject to no risk of conversion.

– Short-term financial investment (Entry 120)

Is an aggregate entry reflecting the total value of short-term financial investments (after deducting provision for devaluation of trading securities), including: Trading securities, investments held up to maturity date with remaining maturities not exceeding 12 months from the reporting time.

Short-term financial investments reflected in this entry do not include the short-term investments presented in the entry “Cash and cash equivalents” (Entry 110), receivables loans are presented in the entry “Other short-term receivables” (Entry 133).

Code 120 = Code 121 + Code 122 + Code 123.

+ Trading securities (Entry 121)

This entry reflects the value of securities and other financial instruments held for trading purposes at the reporting time (holding for the purpose of waiting for price appreciation to sell for profit). This entry may include financial instruments that are not securitized, such as commercial papers, forward contracts, swaps, etc., held for trading purposes.

The data to record in this entry is the debit balance of Account 121.

+ Provision for devaluation of trading securities (Entry 122)

This entry reflects the provision for devaluation of trading securities at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 2291 and is recorded in negative numbers in the form of parentheses (…).

+ Short-term hold-to-maturity investment (Entry 123)

This entry reflects held-to-maturity investments with remaining maturities of no more than 12 months or in a normal business and production cycle at the reporting time, such as term deposits, bonds, and bonds. bonds, commercial paper and other debt securities. This entry does not include held-to-maturity investments presented in the entry “Cash and cash equivalents” (Entry 110), loan receivables presented in this entry. Target “Other short-term receivables” (Entry 133).

The data to be recorded in this entry is the detailed debit balance of Account 1281, 1288.

– Short-term receivables (Entry 130)

Is an aggregate entry reflecting the total value of short-term receivables with remaining recoverable terms not exceeding 12 months or in a normal business cycle at the reporting time, such as: Short-term receivables customers, short-term prepayments to sellers, other short-term receivables, pending assets (after deducting provision for bad debts).

Code 130 = Code 131 + Code 132 + Code 133 + Code 134 + Code 135

+ Short-term receivables from customers (Entry 131)

This entry reflects the amount of receivables from customers with the remaining recovery period not exceeding 12 months or in a normal business cycle at the reporting time. The data to be recorded in this entry is based on the total detailed debit balance of Account 131 opened for each customer.

+ Prepayment to short-term sellers (Entry 132)

This entry reflects the amount paid in advance to the seller for the purchase of assets and services and the enterprise will receive the assets and services within a period not exceeding 12 months or in an ordinary business cycle at the time of delivery. report.

The data for this entry is based on the total detailed debit balance of Account 331 opened by each seller.

+ Other short-term receivables (Entry 133)

This entry reflects other receivables with a remaining collection period of not more than 12 months or in an ordinary business cycle at the reporting time, such as: Short-term loan receivables; short-term internal receivables other than business capital receivables from affiliated units as reflected in the entry “Business capital in affiliated units” (Entry 213); payments on behalf of; to collect profits and dividends to be distributed; Advances; mortgages, deposits, escrow deposits, temporary loans, etc., which the enterprise is entitled to recover.

When the superior entity prepares a consolidated financial position report with the dependent accounting subordinate, other short-term internal receivables in this entry are offset against other short-term internal payables in the accounting period. heading “Other short-term payables” (Entry 415) on the statement of financial position of the dependent accounting units.

The data to be recorded in this entry is the detailed debit balance of accounts 1288 (loan details), 1368, 1386, 1388, 334, 338, 141.

+ Pending pending assets (Entry 134)

This entry reflects shortfalls and losses of unknown causes pending at the reporting time. The data to be recorded in this entry is the debit balance of Account 1381.

+ Provision for short-term bad debts (Entry 135)

This entry reflects the provision for short-term bad debts at the reporting time. The data to be recorded in this entry is the detailed Credit balance of Account 2293, details of the provision for doubtful short-term receivables and is recorded in negative numbers in the form of parentheses (…).

– Inventory (Entry 140)

Is a general entry reflecting the entire existing value of inventories of all kinds in reserve for the production and business process of the enterprise (after deducting the provision for devaluation of inventories) up to the reporting time.

Code 140 = Code 141 + Code 142.

+ Inventory (Entry 141)

This entry reflects the total value of inventory owned by the enterprise that is rotated within a period not exceeding 12 months or in an ordinary business cycle at the reporting time.

The data to be recorded in this entry is the debit balance of accounts 151, 152, 153, 154, 155, 156, 157.

+ Provision for devaluation of inventories (Entry 142)

This entry reflects the provision for devaluation of inventories at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 2294 and is recorded in negative numbers in the form of parentheses (…).

– Other short-term assets (Entry 150)

Is a general entry reflecting the total value of other short-term assets with a term of less than 12 months or in a normal business cycle at the reporting time, such as deductible VAT. and other short-term assets.

Code 150 = Code 151 + Code 152.

+ Value added tax is deducted (Entry 151)

This entry reflects the deductible VAT amount and the refundable VAT amount at the end of the reporting year.

Data to be recorded in this entry is based on the debit balance of Account 133.

+ Other short-term assets (Entry 152)

This entry reflects other short-term assets with a maturity of less than 12 months at the reporting time, including short-term prepaid expenses, taxes and other receivables from the State.

The data recorded in this entry is based on the detailed debit balance of Accounts 242, 333

b) Long-term assets (Entry 200)

Is a general indicator reflecting the value of all types of assets that are not reflected in the short-term assets. Long-term assets are assets with a maturity of more than 12 months at the reporting time, such as: Long-term receivables, fixed assets, investment properties, construction in progress current assets, long-term financial investments and other long-term assets.

Code 200 = Code 210 + Code 220 + Code 230 + Code 240 + Code 250 + Code 260.

– Long-term receivables (Entry 210)

Is an aggregate entry reflecting the entire value of receivables with a recovery period of more than 12 months or more than a normal production and business cycle at the reporting time, such as: Long-term receivables from customers goods, long-term prepayments to sellers, working capital in affiliated units, other long-term receivables (after deducting provision for long-term bad debts).

Code 210 = Code 211 + Code 212 + Code 213 + Code 214 + Code 215.

+ Long-term receivables from customers (Entry 211)

This entry reflects receivables from customers with a recovery period of more than 12 months or more than a normal production and business cycle at the reporting time.

The data to be recorded in this entry is based on the total detailed debit balance of Account 131 opened for each customer.

+ Prepayment to long-term sellers (Entry 212)

This entry reflects the amount paid in advance to the seller to purchase assets and services and the enterprise will receive the assets and services for a period of more than 12 months or more than a normal production and business cycle in Vietnam. reporting time.

The data for this entry is based on the total detailed debit balance of Account 331 opened by each seller.

+ Working capital in affiliated units (Entry 213)

This entry is only recorded in the financial position statement of the superior unit, reflecting the amount of business capital assigned to dependent accounting units.

When preparing the consolidated financial statement of the whole enterprise, this entry is offset with the entry "Internal payables for working capital" (Entry 423) or the item "Owner's contributed capital" (Entry 511) on the financial position report of the dependent accounting units, detailing the capital received by the superior unit.

Data to be recorded in this entry is based on the debit balance of Account 1361.

+ Other long-term receivables (Entry 214)

This entry reflects other receivables with a remaining collection period of more than 12 months or more than a normal business cycle at the reporting time, such as: Long-term receivables from loans, long-term internal receivables other term than the internal receivables for business capital as reflected in the entry "Business capital in affiliated units" (Entry 213), receivables from payments made on behalf of; advances, pledges, deposits, deposits, loans, etc. which the enterprise is entitled to recover.

When the superior entity prepares the consolidated financial position report with the dependent accounting subordinate, the long-term internal receivables in this entry are offset against the long-term internal payables presented in item "Other long-term payables" (Entry 424) on the statement of financial position of the dependent accounting units.

The data for this entry is based on the detailed debit balance of accounts 1288 (loan details), 1368, 1386, 1388, 334, 338, 141.

+ Provision for long-term bad debts (Entry 215)

This entry reflects the provision for doubtful long-term receivables at the reporting time.

The data to be recorded in this entry is the detailed Credit balance of Account 2293, details of the provision for doubtful long-term receivables and is recorded in negative numbers in the form of parentheses (…).

– Fixed assets (Entry 220)

Is a general entry reflecting the entire residual value (Original cost minus accumulated depreciation) of fixed assets at the reporting time.

Code 220 = Code 221 + Code 222.

+ Original price (Entry 221)

This entry reflects all historical costs of fixed assets at the reporting time.

The data to record in this entry is the debit balance of Account 211.

+ Accumulated depreciation (Entry 222)

This entry reflects the total depreciated value of fixed assets accumulated at the reporting time.

Data to be recorded in this entry is the Credit balance of accounts 2141, 2142, 2143 and is recorded in negative numbers in the form of parentheses (…).

– Investment real estate (Entry 230)

Is an aggregate entry reflecting the entire residual value of investment properties at the reporting time.

Code 230 = Code 231 + Code 232.

+ Original price (Entry 231)

This entry reflects the entire historical cost of investment properties at the reporting time after deducting losses due to decline in value of investment properties held for price appreciation.

The data to reflect on this entry is the debit balance of Account 217.

+ Accumulated depreciation (Entry 232)

This entry reflects the total accumulated depreciation of investment properties used for rental at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 2147 and is recorded in negative numbers in the form of parentheses (…).

– Construction in progress (Entry 240)

This entry reflects the entire value of fixed assets being purchased, capital construction investment costs, major repair costs of unfinished or completed fixed assets that have not been handed over or put into use. .

The data to record in this entry is the debit balance of Account 241.

– Long-term financial investment (Entry 250)

Is an aggregate entry reflecting the total value of long-term financial investments (after deducting the provision for loss of investments in other entities) at the reporting time, such as: Investment in capital contribution to the entity. other, long-term held-to-maturity investments with remaining terms of more than 12 months or more than a normal business or production cycle at the reporting time.

Code 250 = Code 251 + Code 252 + Code 253.

+ Investing capital in other entities (Entry 251)

This entry reflects investments in joint ventures, associates and other investments.

The data to record in this entry is the detailed debit balance of Account 228.

+ Provision for investment loss in other entities (Entry 252)

This entry reflects the provision for loss of investments in other entities due to losses in the invested entity and the possibility of investors losing capital at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 2292 and is recorded in negative numbers in the form of parentheses (…).

+ Long-term hold-to-maturity investment (Entry 253)

This entry reflects held-to-maturity investments with a remaining term of more than 12 months or more than a normal business cycle from the reporting time, such as term deposits, bonds , commercial paper and other debt securities. This entry does not include loan receivables presented in the entry “Other long-term receivables” (Entry 214).

The data to be recorded in this entry is the detailed debit balance of accounts 1281, 1288.

– Other long-term assets (Entry 260)

This entry reflects the value of other long-term assets with a recovery period of more than 12 months or more than a normal production and business cycle at the reporting time, such as long-term prepaid expenses, receivables long-term government (if any) has not been presented in the above indicators.

Enterprises do not have to reclassify long-term prepaid expenses into short-term prepaid expenses.

The data for this entry is based on the detailed debit balance of Account 242, 333.

– Total assets (Entry 300)

Is a general entry reflecting the total value of existing assets of the enterprise at the reporting time, including short-term assets and long-term assets.

Code 300 = Code 100 + Code 200.

c) Liabilities (Entry 400)

Is a general entry reflecting all liabilities at the reporting time, including: Short-term debt and long-term debt.

Code 400 = Code 410 + Code 420.

– Short-term debt (Entry 410)

Is a general entry reflecting the total value of outstanding debts with a payment term of no more than 12 months or less than a normal production and business cycle at the reporting time, such as: Loans and debts short-term financial leases, payable to short-term sellers, short-term prepayments from buyers, taxes and other payables to the State, payables to employees, other short-term payables, provision for short-term payables... at the time of reporting.

Code 410 = Code 411 + Code 412 + Code 413 + Code 414 + Code 415 + Code 416 + Code 417 + Code 418.

+ Short-term payables to sellers (Entry 411)

This entry reflects the remaining amount to be paid to the seller with the remaining payment term not exceeding 12 months or in a normal production and business cycle at the reporting time.

The data to be recorded in this entry is based on the total detailed Credit balance of Account 331 opened for each seller.

+ Buyer pays short-term advance (Entry 412)

This entry reflects the amount advanced by buyers to purchase products, goods, services, fixed assets, investment properties and enterprises that are obliged to provide them within 12 months or within a month. normal production and business cycle at the reporting time (excluding pre-received revenue).

The data for this entry is based on the total detailed Credit balance of Account 131 opened for each customer.

+ Taxes and other payables to the State (Entry 413)

This entry reflects the total amount of money enterprises still have to pay to the State at the reporting time, including taxes, fees, charges and other payables. This entry is based on the total detailed Credit balance of Account 333.

+ Payables to employees (Entry 414)

This entry reflects the remaining amounts payable by enterprises to employees at the reporting time.

The data for this entry is based on the detailed Credit balance of Account 334.

+ Other short-term payables (Entry 415)

This entry reflects other payables with remaining payment terms not exceeding 12 months or in an ordinary production and business cycle at the reporting time, in addition to the payables already reflected in the balance sheet. other indicators, such as: Short-term payables, short-term internal payables other than internal payables for working capital, which have been reflected in the entry "Internal payables for working capital" (Code) No. 423), short-term unrealized revenue, discovered excess value of assets for unknown reasons, payables to the social insurance agency, the CPC, deposits received, short-term deposits...

When the superior entity prepares the consolidated financial statements with its dependent accounting subordinates, the short-term internal payables in this entry are offset against the short-term internal receivables presented in this entry. heading “Other short-term receivables” (Entry 133) on the statement of financial position of dependent accounting units.

Data for this entry are based on the detailed Credit balance of accounts 335, 3368, 338, 1388.

+ Short-term loans and finance lease liabilities (Entry 416)

This entry reflects the total value of loans that enterprises borrow, including loans in the form of bond issuance, which are still owed to banks, organizations, financial companies and other entities with remaining payment terms. no more than 12 months or in a normal business cycle at the reporting time.

The data for this entry is based on the detailed Credit balance of Account 341.

+ Provision for short-term payables (Entry 417)

This entry reflects the provision for amounts expected to be payable within 12 months or in the next normal production and business cycle at the reporting time, such as provision for warranty of products, goods, construction process, accrual expenses for periodic fixed asset repair, accrued environmental restoration costs... Provisions for payables are often estimated, with uncertain time and payable value. and the enterprise has not yet received goods and services from the supplier.

The data for this entry is based on the detailed Credit balance of Account 352.

+ Bonus and welfare fund (Entry 418)

This entry reflects the Bonus Fund, Welfare Fund, and Executive Management Bonus Fund which have not been used at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 353.

– Long-term debt (Entry 420)

Is a general indicator reflecting the total value of long-term debts of the enterprise, including debts with remaining payment terms of 12 months or more or over an ordinary production and business cycle at the time of writing. reports, such as: Long-term payables to sellers, long-term prepayments from buyers, internal payables for working capital, other long-term payables, long-term loans and finance leases, provision for receivables. long-term payment and science and technology development fund at the time of reporting.

Code 420 = Code 421 + Code 422 + Code 423 + Code 424 + Code 425 + Code 426 + Code 427.

+ Long-term payables to vendors (Entry 421)

This entry reflects the outstanding amount to be paid to sellers whose remaining payment term is over 12 months or more than a normal production and business cycle at the reporting time.

The data to be recorded in this entry is based on the total detailed Credit balance of Account 331 opened for each seller.

+ Buyer pays long-term advance (Entry 422)

This entry reflects the amount advanced by buyers to purchase products, goods, services, fixed assets, investment real estate and the term of the enterprise's obligation to provide is more than 12 months or more. normal production and business period at the reporting time (excluding pre-received revenue).

The data to be recorded in this entry is based on the detailed Credit balance of Account 131, which is opened for each customer.

+ Internal payables for working capital (Entry 423)

Depending on the operation characteristics and management model of each unit, the enterprise decentralizes and stipulates that the dependent accounting unit shall record the capital allocated by the enterprise to this entry or the target "Capital of the enterprise". owner's contribution” (Entry 511).

This entry is only presented in the statement of financial position of the subordinate unit without legal status, and reflects the amounts payable by the subordinate unit to the superior unit in terms of business capital.

When the superior unit prepares a consolidated financial statement of the whole enterprise, this entry is offset with the entry "Working capital in affiliated units" (Entry 213) on the financial position statement of the company. superior unit.

The data for this entry is based on the details of the Credit balance of Account 3361.

+ Other long-term payables (Entry 424)

This entry reflects other payables with remaining payment terms of more than 12 months or more than an ordinary production and business cycle at the reporting time, in addition to the payables already reflected in the financial statements. Other indicators, such as: Expenses payable, internal payables other than internal payables for business capital, long-term unrealized revenue, deposits received, long-term deposits...

When the superior entity prepares the consolidated financial statements with dependent accounting subordinates, the long-term internal payables in this entry are offset against other long-term internal receivables presented in this entry. item "Other long-term receivables" (Entry 214) on the statement of financial position of dependent accounting units.

Data for this entry are based on the detailed Credit balance of accounts 335, 3368, 338, 1388.

+ Long-term finance leases and loans (Entry 425)

This entry reflects loans and debts owed by enterprises to banks, organizations, financial companies and other entities, the value of preferred shares at par value that is required by the issuer to repurchase at a particular location. determined time in the future with a remaining payment term of more than 12 or more ordinary business cycles at the reporting time, such as: Loans from banks, financial institutions, payables on fixed assets under finance lease…

The data to be recorded in this entry is the detailed credit balance of accounts 341, 4111 (details of preferred shares classified as liabilities).

+ Provision for long-term payables (Entry 426)

This entry reflects provisions for amounts expected to be payable after 12 months or the next normal production and business cycle at the reporting time, such as provision for warranties of products, goods, construction process, provision for restructuring, accrual expenses for periodic repair of fixed assets, expenses for environmental restoration, etc. Provisions for payables are often estimated, with uncertain time to be required. payable, the value to be paid and the enterprise has not yet received the goods and services from the supplier.

The data for this entry is based on the detailed Credit balance of Account 352.

+ Science and technology development fund (Entry 427)

This entry reflects the unused Science and Technology Development Fund at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 356.

d) Equity (Entry 500)

Is a general indicator reflecting the business capital owned by shareholders and capital contributors, such as: Owner's contributed capital, share capital surplus, other owner's capital, treasury shares, equity funds, undistributed after-tax profits, exchange rate differences.

Code 500 = Code 511 + Code 512 + Code 513 + Code 514 + Code 515 + Code 516 + Code 517

– Owner's contributed capital (Entry 511)

This entry reflects the total capital actually contributed by the owners to the enterprise (for joint stock companies, the capital contributed by shareholders at par value of shares) at the reporting time.

At the dependent accounting unit, this entry may reflect the amount of capital allocated if the enterprise specifies that the dependent accounting unit is recorded in Account 411.

The data to be recorded in this entry is the Credit balance of Account 4111.

– Share premium (Entry 512)

This entry reflects the share capital surplus at the reporting time of the joint stock company.

The data to be recorded in this entry is the Credit balance of Account 4112. If Account 4112 has a Debit balance, this entry is recorded with a negative number in the form of parentheses (…).

– Other capital of the owner (Entry 513)

This entry reflects the value of other owner's capital at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 4118.

– Treasury shares (Entry 514)

This entry reflects the current value of treasury shares at the reporting time of the joint stock company.

The data to be recorded in this entry is the debit balance of Account 419 and is recorded in negative numbers in the form of parentheses (…).

– Exchange rate difference (Entry 515)

In case the entity uses a currency other than Vietnam Dong as its accounting currency, this entry reflects the exchange rate difference resulting from the conversion of the financial statements into Vietnam Dong.

– Equity funds (Entry 516)

This entry reflects unused equity funds at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 418.

– Undistributed after-tax profit (Entry 517)

This entry reflects the undistributed after-tax profit (or loss) at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 421. In case Account 421 has a Debit balance, this entry's data is recorded in negative numbers in the form of parentheses (…).

– Total capital (Entry 600)

Reflecting the total amount of capital sources forming assets of the enterprise at the reporting time.

Code 600 = Code 400 + Code 500.

2.2.3. For enterprises that do not meet the going concern assumption (see Form B01 – DNNKLT)

The presentation of the items of the Statement of Financial Status when the enterprise does not meet the going concern assumption is made in the same way as the Statement of Financial Status of the enterprise that meets the going concern assumption according to the following form. number B01a-DNN, except for the following criteria:

– Financial investment (Entry 120)

Is an aggregated entry reflecting the total value of financial investments, including: trading securities, held-to-maturity investments and capital contributions to other entities at the time of issuance. report.

Financial investments reflected in this entry do not include investments presented in the entry “Cash and cash equivalents” (Entry 110) and loan receivables already presented in item “Other receivables” (Entry 134).

Code 120 = Code 121 + Code 122 + Code 123.

– Receivables (Entry 130)

Is an aggregate entry reflecting the entire value of receivables at the reporting time, such as: Receivables from customers, prepayments to sellers, working capital in affiliated units, other receivables, financial pending product.

Code 130 = Code 131 + Code 132 + Code 133 + Code 134 + Code 135.

– Inventory (Entry 140)

This entry reflects the total value of inventory owned by the enterprise at the reporting time.

The data to be recorded in this entry is the debit balance of accounts 151, 152, 153, 154, 155, 156, 157.

– Fixed assets and investment properties (Entry 150)

Is a general entry reflecting the entire residual value (Original cost minus accumulated depreciation) of fixed assets and investment properties at the reporting time.

The data to record in this entry is the debit balance of accounts 211 and 217 minus the credit balance of account 214.

2.3. Instructions for preparing and presenting the report on business results (Form B02 – DNN)

2.3.1. Content and structure of the report:

a) The income statement reflects the business situation and results of the enterprise, including the results from the main business activities and the results from the financial and other activities of the enterprise. Karma.

b) The income statement consists of 5 columns:

– Column number 1: Reporting indicators;

– Column No. 2: Codes of corresponding indicators;

– Column 3: Numbers corresponding to the items of this report are shown in the Notes to the Financial Statements;

– Column No. 4: Total arising in the annual reporting period;

– Column number 5: Data of the previous year (for comparison).

2.3.2. Reporting basis

- Pursuant to the previous year's report on business results.

– Based on the general accounting books and detailed accounting books in the period used for accounts from class 5 to class 9.

2.3.3. Content and method of setting targets in the report on business results

– Revenue from selling goods and providing services (Entry 01)

This entry reflects the total revenue from the sale of goods, finished products, investment properties, service provision and other revenues in the reporting year. The data to be recorded in this entry is the accumulated amount arising on the Credit side of Account 511 in the reporting period.

When the superior unit makes a consolidated report with the subordinate accounting units, the revenue from sales and service provision arising from internal transactions must be eliminated.

This entry does not include indirect taxes, such as VAT (including VAT paid by the direct method), special consumption tax, export tax, environmental protection tax and other indirect taxes. .

– Sales deductions (Entry 02)

This entry reflects the sum of amounts deducted from the total revenue of sales and service provision in the year, including: Trade discounts, sales discounts, sales returns in the reporting period. fox. The data to be recorded in this entry is the total arising from the Debit side of Account 511 and the Credit side of Accounts 111, 112, 131, during the reporting period.

This entry does not include indirect taxes and fees that enterprises are not entitled to have to pay to the state budget (recorded as a decrease in revenue in the accounting book of Account 511) because these amounts are essentially revenues for the Government. water, which is not part of revenue, should not be considered as a revenue deduction.

– Net revenue from selling goods and providing services (Entry 10)

This entry reflects the revenue from the sale of goods, finished products, investment real estate, service provision and other revenue minus deductions (trade discounts, sales discounts, returned goods). in the reporting period, as the basis for calculating the business results of the enterprise.

Code 10 = Code 01 – Code 02.

– Cost of goods sold (Entry 11)

This entry reflects the total cost of goods, investment property, cost of finished products sold, volume of services provided, and other costs included in the cost of goods sold or a decrease in the cost of goods sold in the reporting period.

The data to be recorded in this entry is the accumulated amount arising on the Credit side of Account 632 in the corresponding reporting period on the Debit side of Account 911.

When the superior unit prepares a consolidated report with the subordinate accounting units, the cost of goods sold arising from internal transactions must be eliminated.

– Gross profit from sales and service provision (Entry 20)

This entry reflects the difference between the net revenue from the sale of goods, finished products, investment property and service provision and the cost of goods sold incurred during the reporting period. If this indicator data is negative, write it in parentheses (…).

Code 20 = Code 10 – Code 11.

– Revenue from financial activities (Entry 21)

This entry reflects the net financial income arising in the reporting period of the enterprise.

The data to be recorded in this entry is the accumulated amount arising from the Debit side of Account 515 for the Credit side of Account 911 during the reporting period.

When the superior unit prepares a consolidated report with the dependent accounting subordinate units, financial income arising from internal transactions must be eliminated.

– Financial expenses (Entry 22)

This entry reflects the total financial expenses, including interest payable, expenses related to copyright leasing, joint venture operation costs, etc., incurred in the reporting period of the enterprise.

The data to be recorded in this entry is the accumulated amount arising from the Credit side of Account 635 and the debit side of Account 911 in the reporting period.

When the superior unit makes a consolidated report with the subordinate accounting units, all financial expenses arising from internal transactions must be eliminated.

– Interest expense (Entry 23)

This entry reflects the payable interest expense which is included in financial expenses in the reporting period.

The data for this entry is based on detailed data on interest expense on account 635 in the reporting period.

– Business administration expenses (Entry 24)

This entry reflects the total administrative and business expenses incurred in the reporting period.

The data to be recorded in this entry is the total arising on the Credit side of Account 642, corresponding to the Debit side of Account 911 in the reporting period.

– Net profit from business activities (Entry 30)

This entry reflects the business results of the enterprise in the reporting period. This entry is calculated on the basis of gross profit from sales and service provision plus (+) Financial income minus (-) Financial expenses, business administration expenses incurred in the reporting period. fox. If this indicator data is negative, write it in parentheses (…).

Code 30 = Code 20 + Code 21 – Code 22 – Code 24.

– Other income (Entry 31)

This entry reflects other incomes, arising in the reporting period. The data for this entry is based on the total arising on the Debit side of Account 711 (after deducting other income from liquidation and sale of fixed assets) to the Credit side of Account 911 during the reporting period.

Particularly for transactions of liquidation and sale of fixed assets, the data to be recorded in this entry is the difference between the revenue from the liquidation or sale of fixed assets higher than the residual value of the fixed assets and the liquidation costs.

When the superior unit makes a consolidated report with the dependent accounting subordinate units, other incomes arising from internal transactions must be eliminated.

– Other expenses (Entry 32)

This entry reflects the total other expenses incurred in the reporting period. This entry is based on the total amount incurred on the Credit side of Account 811 “Other expenses” (after deducting other expenses from liquidation and sale of fixed assets) to the Debit side of the account. 911 during the reporting period.

Particularly for the transaction of liquidation and sale of fixed assets, the data to be recorded in this entry is the difference between the revenue from the liquidation or sale of fixed assets which is smaller than the residual value of the fixed asset and the liquidation costs.

When the superior unit makes a consolidated report with the subordinate accounting units, other expenses arising from internal transactions must be eliminated.

– Other profits (Entry 40)

This entry reflects the difference between other income (after deducting payable VAT calculated by the direct method) and other expenses incurred in the reporting period. If this indicator data is negative, write it in parentheses (…).

Code 40 = Code 31 – Code 32.

– Total accounting profit before tax (Entry 50)

This entry reflects the total accounting profit realized in the reporting year of the enterprise before deducting corporate income tax expenses from business and other activities arising in the reporting period. In case the net revenue is less than the cost of goods sold, it shall be recorded in a negative number in the form stated in parentheses (…). If this indicator data is negative, write it in parentheses (…).

Code 50 = Code 30 + Code 40.

– Corporate income tax expense (Entry 51)

This entry reflects corporate income tax expenses incurred in the reporting year. The figures for this entry are based on the total amount arising from the Credit side of Account 821 in relation to the debit side of Account 911 or on the arising number on the debit side of Account 821 corresponding with the Credit side of Account 911 in the reporting period ( In this case, the data is recorded in this indicator with negative numbers in the form of parentheses (...)).

– Profit after corporate income tax (Entry 60)

This entry reflects the total net profit (or loss) after CIT from the enterprise's activities (after deducting corporate income tax expenses) arising in the reporting year. If this indicator data is negative, write it in parentheses (…).

Code 60 = Code 50 – Code 51.

2.4. Instructions for preparing and presenting the statement of cash flows (Form B03 – DNN)

2.4.1. Principles of preparation and presentation of the statement of cash flows

2.4.1.1. Businesses are not required but encouraged to prepare a statement of cash flows. The method of preparing the statement of cash flows is guided for the most common transactions, based on the nature of each transaction to present the cash flows appropriately if there is no specific guidance in the Circular. this.

2.4.1.2. Short-term investments that are treated as cash equivalents in the cash flow statement include only short-term investments with maturities of not more than 3 months that are readily convertible to a known amount of cash and there is no risk of conversion to cash as of the acquisition date of the investment at the reporting time. For example, bank promissory notes, treasury bills, certificates of deposit, etc. have a maturity date of no more than 3 months from the date of purchase.

2.4.1.3. Enterprises must present cash flows on the Statement of Cash Flows under three categories of activities: Operating activities, investing activities, and financing activities:

– Cash flows from operating activities are cash flows arising from the principal revenue-generating activities of the enterprise and other activities that are not investing or financing activities;

- Cash flow from investing activities is cash flow arising from activities of purchasing, constructing, liquidating, selling fixed assets, investment real estate, other long-term assets, lending, making capital contribution to the entity. and other investments not classified as cash equivalents;

Cash flows from financing activities are cash flows arising from activities that cause changes in the size and structure of the enterprise's equity and debt capital.

2.4.1.4. An enterprise is entitled to present its cash flows from operating, investing and financing activities in a manner that best suits the business characteristics of the enterprise.

2.4.1.5. Cash flows arising from the following operating, investing and financing activities are reported on a net basis:

– Collect money and pay money on behalf of customers such as rent collected, paid for and returned to property owners;

– Cash collection and payment for accounts with fast turnover and short maturity such as: Buying and selling foreign currencies; Buying and selling investments; Other short-term borrowings and loans with payment terms not exceeding 3 months.

2.4.1.6. Cash flows arising from transactions in foreign currencies must be converted into accounting currencies and financial statements shall be prepared at the actual exchange rates at the time of transactions.

2.4.1.7. Investment and financial transactions that do not directly involve cash or cash equivalents are not presented in the Statement of Cash Flows, for example:

– The acquisition of assets by receiving related liabilities directly or through a finance lease;

– The conversion of debt into contributed capital of the owner.

2.4.1.8. Cash and cash equivalents at the beginning and at the end of the period, the effects of changes in foreign exchange rates, and cash equivalents in foreign currencies available at the end of the period should be presented as separate items in the financial statements. Statement of cash flows to reconcile the figures with the corresponding items on the Statement of Financial Position.

2.4.1.9. The enterprise must disclose the value and rationale of cash and cash equivalents with large closing balances held by the enterprise but not used due to legal restrictions or other constraints imposed by the enterprise. Must perform.

2.4.1.10. In case an enterprise borrows to pay directly to contractors or suppliers of goods and services (the loan is transferred directly from the lender to the contractor or supplier without transferring to the enterprise's account), Enterprises must still present on the statement of cash flows, specifically:

– Borrowed amounts are presented as cash inflows from financing activities;

– Amounts paid to suppliers of goods or services or to contractors presented as cash outflows from operating or investing activities depending on the transaction.

2.4.1.11. In case the enterprise incurs a clearing with the same object, the presentation of the cash flow statement is made on the following principles:

– If the clearing involves transactions that are classified in the same cash flow, presented on a net basis (e.g. in a barter transaction...);

– If the clearing involves transactions that are classified in different cash flows, the enterprise is not presented on a net basis but must present the value of each transaction separately (e.g. clearing). sales receivable with loans…).

2.4.2. Basis for preparing statement of cash flows

The preparation of the statement of cash flows is based on:

- Financial status report;

- Report on business results;

– Notes to the financial statements;

– Statement of cash flows for the previous period;

– Other accounting documents, such as: General accounting book, detailed accounting book of accounts “Cash”, “Deposit with bank”, General accounting book and detailed accounting book of accounts Other related accounts, spreadsheets and amortization of fixed assets and other detailed accounting documents…

2.4.3. Requirements on opening and recording accounting books for preparation of Cash Flow Statements

- Detailed accounting books of accounts receivable, payable, and inventory must be tracked in detail for each transaction to be able to present cash flows for withdrawal or payment under 3 types of activities: Business activities , investing and financing activities. For example: Payments owed to contractors related to capital construction activities are classified as cash flows from investment activities, payments owed to sellers for providing goods and services for production and business are classified as cash flow from operating activities.

– For a detailed accounting book, the accounts reflecting cash must be detailed to track the cash inflows and outflows related to 3 types of activities: Business activities, investment activities and financial activities. general basis when preparing the statement of cash flows. For example, for loan principal and interest payments to the bank, accountants must separately record interest payments as cash flows from business activities and loan principal payments as cash flows from financing activities.

– At the end of the accounting year, when preparing the statement of cash flows, the enterprise must identify short-term investments with a maturity or maturity not exceeding 3 months from the date of acquisition that satisfy the definition. are treated as cash equivalents to exclude from cash flows from investing activities. The value of cash equivalents is in the entry “Cash and cash equivalents at the end of the period” on the statement of cash flows.

2.4.4. How to prepare a statement of cash flows?

2.4.4.1. Prepare reports on cash flow targets from business activities

Cash flow from business activities reflects cash inflows and outflows related to production and business activities during the period, including cash flows related to securities held for business purposes.

Cash flows from operating activities are prepared by one of two methods: Direct method or indirect method.

2.4.4.1.1. Make a report of cash flow indicators from business activities using the direct method (Form B03 – DNN)

a) Principles of establishment:

Under the direct method, cash inflows and cash outflows from operating activities are determined and presented in the Statement of Cash Flows by analyzing and summing up the cash inflows and outflows directly. each content of revenue and expenditure from the general and detailed accounting books of the enterprise.

b) Method of setting specific targets

– Proceeds from sales, service provision and other revenues (Entry 01)

This entry is established based on the total amount received (total payment price) in the period from the sale of goods, finished products, provision of services, royalties, commissions and other revenues (such as selling securities). business securities), including amounts receivable from receivables related to transactions of sale of goods, provision of services and other revenues arising from previous periods but only in this period, and the amount advanced by the buyer of goods or services.

This entry does not include proceeds from liquidation and sale of fixed assets, investment real estate and other long-term assets, proceeds from loan recovery, capital contribution to other entities, proceeds from loan interests, dividends and distributed profits and other receipts classified as cash flows from investing activities; Proceeds from borrowing, issuing shares, receiving capital contributions from owners are classified as cash flows from financial activities.

The data for this entry are taken from the accounting books of accounts 111, 112 (collection of money), accounts receivable accounting books (details of proceeds from sales, provision of services for immediate payment of goods and services). payables), after comparing with the accounting books of accounts 511, 131 (details of revenue from sales, provision of cash collection services, the amount of receivables recovered or advance payment) during the period) or accounts 515, 121 (details of proceeds from the sale of trading securities).

– Payment to suppliers of goods and services (Entry 02)

This entry is established based on the total amount (total payment price) paid in the period due to the purchase of goods and services, payment of expenses for production and business, including the amount of money spent on purchasing goods and services. trading securities and the amount paid for payables or advances to sellers of goods and provision of services related to production and business activities.

This entry does not include money spent on procurement, investment in construction of fixed assets, investment real estate (including expenditures on purchasing raw materials to be used for capital construction), money spent on loans, investment in capital contribution to other entities and other payments are classified as cash flows from investing activities; Payments of principals and finance lease liabilities, return of contributed capital to owners, dividends and profits paid to owners and other payments are classified as cash flows from financing activities. main.

The data for this entry are taken from the accounting books of Accounts 111, 112 (for cash payments), accounts receivable and borrowings (details of loans received or receivables, transferred to other accounts). payable immediately), after comparing with the accounting books of Account 331, the accounts reflect inventory. This indicator is recorded in negative numbers in the form of parentheses (…).

– Payment to employees (Entry 03)

This entry is established based on the total amount paid to employees in the reporting period in terms of salary, wages, allowances, bonuses... that the enterprise has paid or advanced.

The data for this entry are taken from the accounting books of accounts 111, 112 (details of money paid to employees), after comparing with the accounting books of Account 334 (details of amounts paid in cash) in reporting period. This indicator is recorded in negative numbers in the form of parentheses (…).

– Interest paid (Entry 04)

This entry is prepared based on the total amount of loan interest paid in the reporting period, including interest arising in the period and immediately paid in this period, interest payable in previous periods paid in this period, prepaid loan interest in this period.

This entry does not include interest paid during the period that is capitalized into the value of unfinished assets classified as cash flows from investing activities. In case the loan interest paid in the period is both capitalized and included in financial expenses, the accountants shall base on the interest capitalization rate applied for the reporting period to determine the paid loan interest amount of the cash flow. from operating activities and cash flows from investing activities.

The data for this entry are taken from the accounting books of accounts 111, 112 (details of loan interest payments); accounting books of accounts receivable (details of interest payments from receivables) in the reporting period, after comparing with the accounting books of Accounts 335, 635, 242 and other related accounts. This indicator is recorded in negative numbers in the form of parentheses (…).

– Paid CIT (Entry 05)

This entry is made based on the total amount of CIT paid to the State in the reporting period, including the amount of CIT paid in this period, the amount of CIT owed from previous periods paid in this period and prepaid CIT amount (if any).

The data for this entry are taken from the accounting books of accounts 111, 112 (details of CIT payment), after comparing with the accounting books of account 3334. This entry is recorded with negative numbers in the form of a negative number. stated in parentheses (…).

– Other proceeds from business activities (Entry 06)

This entry is established based on the total amount of money collected from other amounts of business activities, in addition to the proceeds reflected in Code 01, such as: Proceeds from other incomes (revenues are compensated). usually, fines, bonuses and other levies…); Money collected due to tax refund; Money collected from receipt of deposit or deposit; Money recovered from deposits and deposits; Money is rewarded and supported by external organizations and individuals...

Data for this entry are taken from the accounting books of accounts 111, 112 after comparing with the accounting books of accounts 711, 133, 141, 138 and other related accounts in the reporting period. .

– Other expenses for business activities (Entry 07)

This entry is prepared based on the total amount of money spent on other items, in addition to the expenses related to production and business activities in the reporting period as reflected in Codes 02, 03, 04, 05, such as: Compensation, fines and other expenses; Payment of taxes (excluding CIT); Payment of fees, charges and land rent; Payments for social insurance, health insurance, unemployment insurance and labor insurance; Money paid to deposit, deposit; Returns of deposits, deposits, and direct payments made by the payable reserve; Money spent directly from the bonus and welfare fund; Science and Technology Development Fund; Cash paid directly from other equity funds; …

The data for this entry are taken from the accounting books of accounts 111, 112 in the reporting period, after comparing with the accounting books of accounts 811, 138, 333, 338, 352, 353, 356 and accounts other related. This indicator is recorded in negative numbers in the form of parentheses (…).

– Net cash flow from operating activities (Entry 20)

The entry “Net cash flows from operating activities” reflects the difference between the total amount of money received and the total amount of money spent from operating activities in the reporting period. The data to be recorded in this indicator is calculated as the sum of the data of the indicators from Code 01 to Code 07. If the data of this indicator is negative, write it in parentheses (…).

Code 20 = Code 01 + Code 02 + Code 03 + Code 04 + Code 05 + Code 06 + Code 07.

2.4.4.1.2. Make a report on cash flow indicators from business activities by the indirect method (Form B03 – DNN)

a. Establishment principle:

According to the indirect method, the cash inflows and outflows from operating activities are calculated and determined first by adjusting the profit before CIT of the business activities for the effects of non-cash items. in cash, changes during the period in inventories, receivables and payables from operating activities, and amounts whose cash effects are cash flows from investing activities, including:

– Non-cash expenses, such as: Depreciation of fixed assets, investment real estate, provisions, etc.

– Non-cash gains and losses, such as gains and losses on exchange rate differences, capital contribution by non-monetary assets;

– Profits and losses are classified as cash flows from investment activities, such as: Gains and losses on liquidation, sale of fixed assets and investment properties, loan interests, deposit interests, dividends and profits. profits are shared…;

– Interest expense has been recognized in the income statement for the period.

– Cash flows from operating activities are adjusted further with changes in working capital, prepaid expenses and other revenues and expenses from operating activities, such as:

+ Changes in the reporting period of inventory items, receivables and payables from business activities (except for payable loan interest, payable CIT);

+ Changes in prepaid expenses;

+ Changes in trading securities;

+ Interest on the loan already paid;

+ Paid CIT;

+ Other proceeds from business activities;

+ Other expenses from business activities.

b. Method of setting specific targets

– Profit before tax (Entry 01)

This entry is taken from the target of Total accounting profit before tax (Entry 50) on the income statement in the reporting period. If this data is negative (in case of loss), write it in parentheses (…).

– Adjustments for accounts (Entry 02)

Code 02 = Code 03 + Code 04 + Code 05 + Code 06 + Code 07 + Code 08.

+ Depreciation of fixed assets and investment property (Entry 03)

(+) In case the enterprise can separate the depreciation amount still in inventory and the amount of depreciation already included in the income statement in the period: the item "Depreciation of fixed assets and investment real estate" only includes includes the amount of depreciation already included in the income statement for the period; The indicator “Inventory increase and decrease” does not include the depreciation included in the ending inventory value (not yet determined to be consumed in the period);

(+) In case the enterprise cannot separate the depreciation amount still in inventory and the depreciation amount already included in the income statement in the period, the following principles shall be followed: Depreciation of fixed assets and investment property” includes the amount of depreciation already included in the income statement for the period plus the depreciation related to unsold inventory; The indicator “Inventory increase and decrease” includes the depreciation of fixed assets included in the ending inventory value (not yet determined to be consumed in the period).

In all cases, enterprises must exclude from the statement of digital cash flows the depreciation in the value of construction in progress, the amount of depreciation recorded as a decrease in the bonus and welfare fund that has formed fixed assets, the reduction of the development of science and technology has formed fixed assets arising in the period. This indicator data is added (+) to the target data "Profit before tax".

+ Provisions (Entry 04)

This entry reflects the effects of the setting up, reversal and use of provisions on cash flows in the reporting period. This entry is made based on the difference between the opening balance and the ending balance of provisions for asset loss (provision for devaluation of trading securities, provision for loss of investments in other entities). , provision for devaluation of inventories, provision for doubtful debts) and provision for payables in the statement of financial position.

This indicator data is added (+) to the target data "Profit before tax" if the total ending balance of provisions is greater than the total opening balance or subtracted from the target data "Earnings before tax". before tax” if the total ending balance of provisions is less than the total opening balance and is stated in negative form in parentheses (…).

+ Gain/loss on exchange rate difference due to revaluation of monetary items of foreign currency origin (Entry 05)

This entry reflects the gain (or loss) on exchange rate differences due to re-evaluation of monetary items denominated in foreign currencies, which has already been reflected in profit before tax in the reporting period. This entry is prepared based on the difference between Credit and Debit to Account 413 after comparing the accounting books of Account 515 (details of interest due to re-evaluation of monetary items of foreign currency origin) or Account 635. (details of loss due to revaluation of monetary items denominated in foreign currencies).

This indicator data is subtracted (-) from the target data "Profit before tax", if there is profit from exchange rate difference, or added (+) to the indicator "Profit before tax", if any exchange rate losses.

+ Profit/loss from investment activities (Entry 06)

This entry is based on the total profit and loss arising in the period, which is already included in profit before tax but classified as cash flow from investment activities, including:

(+) Gains and losses from the liquidation and sale of fixed assets, investment real estate, losses of investment property held for price appreciation;

(+) Gains and losses from revaluation of non-monetary assets to contribute capital or invest in other entities;

(+) Gains and losses from the sale and withdrawal of financial investments (excluding profits and losses from trading securities), such as: Investment in joint ventures and associates; Held-to-maturity investments;

(+) Loss or reversal of losses of held-to-maturity investments;

(+) Loan interest, deposit interest, dividends and distributed profit.

This entry is prepared based on the accounting books of accounts 515, 711, 632, 635, 811 and other relevant accounts (details of profit and loss are determined as cash flows from investment activities) in reporting period.

This indicator data is subtracted (-) from the indicator data "Profit before tax" if the investment activities have net profit and recorded in negative number in the form of parentheses (...); or added (+) to the item “Profit before tax”, if the investment activity has a net loss.

+ Interest expense (Entry 07)

This entry reflects interest expense recognized in the income statement in the reporting period. This entry is prepared based on the accounting book of Account 635 (details of interest expense in the reporting period) after comparing it with the entry “Interest expense” in the income statement.

This indicator data is added to the target data "Profit before tax".

+ Other adjustments (Entry 08)

This entry reflects the amount set aside or reversed for the Science and Technology Development Fund in the period. This entry is made based on the accounting book of Account 356.

This indicator data is added to the target "Profit before tax" if in the period when additional funds are set up or deducted from the target "Profit before tax" if in the period when the funds are reversed.

– Profit from business activities before changing working capital (Entry 09)

Code 09 = Code 10 + Code 11 + Code 12 + Code 13 + Code 14 + Code 15 + Code 16 + Code 17 + Code 18

+ Increase and decrease in receivables (Entry 10)

This entry is made based on the total difference between the ending balance and the beginning balance of accounts receivable (details on the part related to production and business activities), such as: Account 131, 136 , 138, 133, 141, 331 (details of prepayment to the seller) during the reporting period.

This entry does not include receivables related to investment activities, such as: Advances to construction contractors; Loan receivables (both principal and interest); Receivables on deposit interest, dividends and distributed profits; Receivables from liquidation, sale of fixed assets, investment real estate financial investments; Value of fixed assets to be pledged, mortgaged...

This indicator data is added (+) to the entry "Profit from operating activities before the change in working capital" if the sum of closing balances is smaller than the sum of opening balances. This entry will be subtracted (-) from the entry "Profit from operating activities before the change in working capital" if the sum of the ending balances is greater than the sum of the opening balances and is written in the amount of sound in the form stated in parentheses (…).

+ Increase or decrease inventory (Entry 11)

This entry is prepared based on the total difference between the ending balance and the opening balance of the inventory accounts (excluding the balance of the account “Provision for devaluation of inventories” on the basis of Excluded: Value of inventory used for capital construction investment or inventory used to exchange for fixed assets or investment real estate; Trial production costs are included in the historical cost of fixed assets formed from capital construction. inventory but the purpose of use has not been determined (for business activities or capital construction investment), the value of inventory is calculated in this entry.

In case the enterprise can separate the depreciation of fixed assets still in inventory and the amount of depreciation already included in the income statement in the period (the target "Depreciation of fixed assets and investment property" - Code 03 includes only the depreciation of fixed assets already included in the income statement in the period), this entry does not include the depreciation of fixed assets included in the ending inventory value (not yet determined to be sold or sold). in the period).

In case the enterprise cannot separate the depreciation of fixed assets still in inventory and the amount of depreciation already included in the income statement in the period (the target "Depreciation of fixed assets and investment property" - Code: 03 includes the depreciation of fixed assets related to unsold inventories), then this entry includes the depreciation of fixed assets included in the ending inventory value (not yet determined to be consumed during the period). .

This indicator data is added (+) to the entry "Profit from operating activities before the change in working capital" if the sum of closing balances is smaller than the sum of opening balances. This entry is subtracted (-) from the entry “Profit from operating activities before the change in working capital” if the sum of the ending balances is greater than the sum of the opening balances and is recorded as a negative number below. form in parentheses (…).

+ Increase or decrease in payables (Excluding interest payable and payable CIT) (Entry 12)

This entry is prepared based on the total difference between the ending balance and the opening balance of accounts payable (details on the part related to production and business activities), such as: Account 331, 333, 334, 335, 336, 338, 131 (details paid by buyer in advance).

This entry does not include the payable CIT amount (incident to account 3334), interest payable (increasing to Account 335, details of interest payable).

This entry does not include payables related to investment activities, such as: Prepayments from buyers related to the liquidation and sale of fixed assets and investment real estate; Payables related to the procurement and construction of fixed assets and investment real estate; Accounts payable for purchase of equity instruments, debt instruments and payables related to financial activities, such as: Principal payables, finance lease liabilities; Dividends and profits payable.

This indicator data is added (+) to the entry "Profit from operating activities before the change in working capital" if the sum of the ending balances is greater than the total at the beginning of the period. This entry will be subtracted (-) from the entry "Profit from operating activities before the change in working capital" if the sum of the ending balances is less than the sum of the opening balances and is written as sound in the form stated in parentheses (…).

+ Increase and decrease prepaid expenses (Entry 13)

This entry is prepared based on the total difference between the ending balance and the opening balance of Account 242 “Prepaid expenses” in the reporting period, excluding prepaid expenses related to cash flows. from investment activities, such as: Land rents that do not qualify for recognition as intangible fixed assets and capitalized interest prepayments.

This indicator data is added (+) to the item “Profit from business activities before change in working capital” if the ending balance is smaller than the opening balance. This indicator data is subtracted (-) from the target data "Profit from operating activities before the change in working capital" if the ending balance is greater than the opening balance and is recorded as a negative number in the form of stated in parentheses (…).

+ Increase or decrease in trading securities (Entry 14)

This entry is established based on the total difference between the ending balance and the opening balance of Account 121 “Trading securities” in the reporting period.

This indicator data is added (+) to the item “Profit from business activities before change in working capital” if the ending balance is smaller than the opening balance. This indicator data is subtracted (-) from the target data "Profit from operating activities before the change in working capital" if the ending balance is greater than the opening balance and is recorded as a negative number in the form of stated in parentheses (…).

+ Interest paid (Entry 15)

This entry is prepared based on the total amount of loan interest paid in the reporting period, including interest arising in the period and immediately paid in this period, interest payable in previous periods paid in this period, prepaid loan interest in this period.

This entry does not include interest paid during the period that is capitalized into the value of unfinished assets classified as cash flows from investing activities. In case the loan interest paid in the period is both capitalized and included in financial expenses, the accountants shall base on the interest capitalization rate applied for the reporting period to determine the paid loan interest amount of the cash flow. from operating activities and cash flows from investing activities.

The data for this entry are taken from the accounting books of accounts 111, 112 (details of loan interest payments); accounting books of accounts receivable (details of interest payment from receivables) in the reporting period, after comparing with the accounting books of Accounts 335, 635, 242 and other related accounts.

This indicator data is subtracted (-) from the indicator data "Business profit before changes in working capital" and recorded in negative numbers in the form of parentheses (…).

+ Paid CIT (Entry 16)

This entry is made based on the total amount of CIT paid to the State in the reporting period, including the amount of CIT paid in this period, the amount of CIT owed from previous periods paid in this period and prepaid CIT amount (if any).

The data for this entry are taken from the accounting books of accounts 111, 112 (details of CIT payment), after comparing with the accounting books of Account 3334. This entry data is subtracted (-) from Indicator data “Business profit before changes in working capital” and recorded in negative numbers in the form of parentheses (…).

+ Other proceeds from business activities (Entry 17)

This entry reflects other revenues arising from business activities other than those mentioned in Codes from 01 to 15, such as: Money awarded by external organizations and individuals, support for recording increases enterprise funds; … during the reporting period.

This entry is prepared based on the accounting books of accounts 111, 112 after comparing with the accounting books of related accounts in the reporting period. This indicator data is added (+) to the indicator data "Profit from business activities before change in working capital".

+ Other expenses for business activities (Entry 18)

This entry reflects other expenditures arising from business activities other than those mentioned in Codes 01 to 15, such as: Payments from Bonus and Welfare Fund, Science and Technology Development Fund turmeric; money to support employees according to the policy…

This entry is prepared based on the accounting books of accounts 111, 112 after comparing with the accounting books of related accounts in the reporting period. This indicator data is subtracted (-) from the indicator data "Profit from business activities before change in working capital".

– Net cash flow from operating activities (Entry 20)

The entry “Net cash flows from operating activities” reflects the difference between the total amount of money received and the total amount of money spent from operating activities in the reporting period. If this indicator data is negative, it will be recorded in the form in parentheses (…).

Code 20 = Code 01 + Code 02 + Code 09

2.4.4.2. Prepare reports on cash flow targets from investment activities

a) Principles of establishment:

– Cash flows from investing activities are prepared and presented in the Statement of Cash Flows separately from cash inflows and outflows.

– Cash flows from investing activities are prepared using the direct or adjusted direct method.

b) Method of setting specific indicators by direct method (See Form No. B03 – DNN)

– Money spent on purchase and construction of fixed assets, investment real estate and other long-term assets (Entry 21)

This entry is established based on the total amount of money actually spent to purchase and build tangible fixed assets, investment real estate, intangible fixed assets, money spent in the implementation phase that has been capitalized into intangible fixed assets, money spent on operations. investment in construction in progress, investment in real estate during the reporting period. Trial production costs after clearing with the proceeds from the sale of trial production products of fixed assets formed from capital construction activities are added to this entry (if expenditure is greater than revenue) or subtracted from this entry (if revenue is greater than revenue). greater than chi).

This entry reflects the amount actually paid to buy raw materials and assets, used for capital construction but not yet exported at the end of the period for capital construction investment; The amount advanced to the construction contractor but the volume has not been checked and accepted; The amount paid to repay the seller in the period is directly related to the purchase and investment of capital construction.

In case of purchasing raw materials and assets for common use for both production and business purposes and capital construction investment but at the end of the period, the value of raw materials and assets to be used for capital construction investment has not been determined yet. For production and business activities, the paid amount is not reflected in this entry but in cash flow from business activities.

This entry does not include the amount received for financial leases, the value of other non-monetary assets used for payment when purchasing fixed assets, investment real estate, capital construction or the value of fixed assets, investment real estate, capital construction increased during the period but not yet paid in cash. .

The data for this entry are taken from the accounting books of accounts 111, 112 (details of money spent on procurement, construction of fixed assets, investment real estate and other long-term assets, including the amount of loan interest already paid off the capital). goods), accounts receivable accounting book (details of debt collection and immediately paid for procurement and construction activities), account book of Account 3411 (details of loan amounts received and immediately remitted to the seller), Account 331 (details of advances or debt repayment to construction contractors, debt repayment to sellers of fixed assets and investment properties), after comparing with the accounting books of accounts 211, 217, 241 in the reporting period. This indicator is recorded in negative numbers in the form of parentheses (…).

– Proceeds from liquidation and sale of fixed assets, investment real estate and other long-term assets (Entry 22)

This entry is made based on the net amount received from the liquidation and sale of tangible fixed assets, intangible fixed assets and investment properties during the reporting period, including the recovery of receivables directly related to the liquidation and sale of fixed assets, investment real estate and other long-term assets.

This entry does not include revenues in non-monetary assets or amounts receivable but not yet collected in the reporting period from the liquidation and sale of fixed assets, investment properties and other long-term assets; Excluding non-monetary expenses related to the liquidation and sale of fixed assets, investment real estate and the residual value of fixed assets, investment properties due to capital contribution to joint ventures, associates or losses.

The data to be recorded in this entry is the difference between the amount received and the amount spent on the liquidation and sale of fixed assets, investment real estate and other long-term assets. The proceeds are taken from the accounting books of accounts 111, 112, after comparing with the accounting books of accounts 711, 5118, 131 (details of proceeds from liquidation and sale of fixed assets, investment real estate and other long-term assets. ) during the reporting period. The money spent is taken from the accounting books of accounts 111, 112, after comparing with the accounting books of accounts 632 and 811 (Details on liquidation and sale of fixed assets and investment properties) in the reporting period. This indicator is recorded with a negative number in the form of parentheses (…) if the actual amount collected is smaller than the actual amount spent.

– Money spent on lending, investing and contributing capital to other entities (Entry 23)

This entry is established based on the total amount of money deposited in a bank with a term of more than 3 months, money spent on loans to other parties, purchases of debt instruments of other entities (bonds, commercial papers, stocks, etc.). incentives classified as liabilities...), expenditures on capital contribution to other entities (including capital investment expenditures in the form of buying ordinary shares with voting rights, buying preference shares are classified as equity, capital contribution to joint ventures, associates, etc.) for investment purposes held to maturity in the reporting period.

This entry does not include money spent buying debt instruments which are considered cash equivalents and buying debt instruments held for business purposes (making profit from the difference in buying and selling prices); Loans, purchases of debt instruments paid with non-monetary assets or debt reversals, payments to buy shares held for business purposes; Spending on buying preferred shares classified as liabilities, investing in other entities with non-monetary assets; investment in the form of issuing shares or bonds; Convert debt instruments into contributed capital or outstanding debt.

The data for this entry are taken from the accounting books of Accounts 111, 112, after comparing with the accounting books of Accounts 128, 228, 331 in the reporting period. This indicator is recorded in negative numbers in the form of parentheses (…).

– Money recovered from loans and investments to contribute capital to other entities (Entry 24)

This target is established based on the total amount collected from the withdrawal of bank deposits with original term of more than 3 months; Recovered principals of loans, principals of bonds, preferred shares classified as liabilities and debt instruments of other entities, total amount recovered from resale or liquidation of capital investments in other entities (including receivables from sales of equity instruments from the previous period) during the reporting period.

This entry does not include proceeds from the sale of debt instruments that are considered cash equivalents and the sale of debt instruments that are classified as trading securities; Excluding the recovery of non-monetary assets or conversion of debt instruments into equity instruments of another entity, proceeds from the sale of trading securities; The amount of the investment recovered in non-monetary assets, in debt or equity instruments of another entity, or unpaid in cash.

The data for this entry are taken from the accounting books of accounts 111, 112 after comparing with the accounting books of accounts 128, 228, 131 in the reporting period.

– Loan interest, dividends and distributed profits (Entry 25)

This entry is established based on the income received from loan interests, deposit interests, bond interests, dividends and profits received from capital investment in other entities in the reporting period. This entry does not include interests and dividends received in shares or non-monetary assets.

The data for this entry is taken from the accounting books of Accounts 111 and 112 after comparing with the accounting books of Account 515.

– Net cash flow from investing activities (Entry 30)

The entry “Net cash flows from investing activities” reflects the difference between the total amount of money received and the total amount of money spent from investing activities in the reporting period. If this indicator data is negative, it is recorded in the form of parentheses (…).

Code 30 = Code 21 + Code 22 + Code 23 + Code 24 + Code 25.

2.4.4.3. Prepare reports on cash flows from financial activities

a. Establishment principle:

Cash flows from financing activities are prepared and presented in the Statement of Cash Flows separately from inflows and outflows, except where cash flows are reported on a net basis.

b. Method of setting specific indicators by direct method (See Form No. B03-DNN)

– Proceeds from issuing shares, receiving capital contribution from owners (Entry 31)

This entry is established based on the total amount of money contributed by the owners of the enterprise during the reporting period. This entry does not include loans and debts converted into capital, undistributed profits converted into contributed capital (including paying dividends in shares) or receiving capital contributions from owners by non-property assets. currency.

For joint-stock companies, this entry reflects the amount received from the issue of ordinary shares at the actual issue price, including the proceeds from the issuance of preferred shares classified as equity but does not include the proceeds from the issuance of preferred shares which are classified as a liability.

The data for this entry is taken from the accounting books of accounts 111 and 112 after comparing with the detailed accounting books of account 411 in the reporting period.

– Money to return contributed capital to owners, buy back shares of the issued enterprise (Entry 32)

This entry is established based on the total amount paid due to return of contributed capital to the owners of the enterprise in the form of cash refund or redemption of shares of the enterprise that have been issued in cash to cancel or used as treasury shares in the reporting period.

This entry does not include returns of preferred shares classified as liabilities, owner's contributed capital by non-monetary assets or use of contributed capital to offset business losses.

The data for this entry is taken from the accounting books of accounts 111, 112 after comparing with the detailed accounting books of accounts 411 and 419 in the reporting period. This indicator is recorded in negative numbers in the form of parentheses (…).

– Loan proceeds (Entry 33)

This entry is established based on the total amount of money received in the period borrowed by the enterprise, including the issuance of bonds from financial institutions, credit institutions and other entities in the reporting period. This entry does not include borrowings with non-monetary assets or finance lease liabilities.

In case of borrowing in the form of preference share issuance, this entry reflects the total amount received in the period due to the preference share issuer classified as a liability.

The data for this entry are taken from the accounting books of accounts 111, 112, accounts payable (details of loans received and payable immediately) after comparing with the detailed accounting books. Accounts 3411, 4111 and other relevant accounts during the reporting period.

– Payment of loan principal and finance lease principal (Entry 34)

This entry is prepared based on the total amount paid for the loan principal, preferred shares classified as a liability, and the total amount paid for the principal of the financial lease in the reporting period.

This entry does not include repayments of loan principals and financial lease principals with non-monetary assets or conversion of loans and finance lease principals into contributed capital.

The data for this entry are taken from the accounting books of accounts 111, 112 of accounts receivable (the part of loan repayment from receivables), after comparing with the expense accounting books. Accounts 341, 4111 in the reporting period. This indicator is recorded in negative numbers in the form of parentheses (…).

– Dividends and profits paid to owners (Entry 35)

This entry is established based on the total amount of dividends and profits paid to the owners of the business (including personal income tax paid on behalf of the owners) in the reporting period.

This entry does not include profits converted into contributed capital by owners, dividends paid in shares or paid with non-monetary assets and profits used to set aside funds.

The data for this entry is taken from the accounting books of accounts 111, 112 after comparing with the accounting books of accounts 421 and 338 (details of the amount paid for dividends and profits) in the reporting period. This indicator is recorded in negative numbers in the form of parentheses (…).

– Net cash flow from financing activities (Entry 40)

Net cash flow from financial activities reflects the difference between the total amount of money received and the total amount of money spent from financial activities during the reporting period. If this indicator data is negative, write it in parentheses (…).

Code 40 = Code 31 + Code 32 + Code 33 + Code 34 + Code 35.

2.4.4.4. Summary of cash flows during the period (See Form B03 – DNN)

– Net cash flow during the period (Entry 50)

The indicator “Net cash flow during the period” reflects the difference between the total amount of cash inflows and the total amount of money spent from three types of activities: business activities, investment activities and financial activities of the enterprise in the period. reporting period. If this indicator data is negative, write it in parentheses (…).

Code 50 = Code 20 + Code 30 + Code 40.

– Cash and cash equivalents at the beginning of the period (Entry 60)

This entry is prepared based on the data of the item “Cash and cash equivalents” at the beginning of the reporting period (Entry 110, column “First amount” on the Financial Statement).

– Impact of change in foreign currency exchange rate (Entry 61)

This entry is prepared based on the total exchange rate differences due to re-evaluation of the ending balance of cash and cash equivalents in foreign currencies (Entry 110 of the Financial Statement) at the date of this entry. the end of the reporting period.

Data for this entry are taken from the accounting books of Accounts 111, 112, 128 and related accounts (details of items satisfying the definition as cash equivalents), after comparing with the accounting books. details of account 413 in the reporting period. This entry is recorded with a positive number if there is an exchange rate gain and a negative number in the form of parentheses (…) if there is an exchange rate loss.

– Cash and cash equivalents at the end of the period (Entry 70)

This entry is prepared based on the data of the item “Cash and cash equivalents” at the end of the reporting period (Entry 110, column “Year-end amount” on the Financial Statement).

This entry is equal to the "Total" of the items Codes 50, 60 and 61 and equals the item No. 110 of the column "End of the year" on the Financial Statements of that period.

Code 70 = Code 50 + Code 60 + Code 61.

2.5. Method of preparation and presentation of notes to financial statements (See Form No. B09 – DNN)

2.5.1. Purpose of Notes to Financial Statements

a) The notes to the financial statements are an integral part of the corporate financial statements used to describe in a narrative or detailed analysis the information and data presented in the financial statements. Financial Statements, Income Statements, Cash Flow Statements as well as other necessary information.

b) The notes to the financial statements may also present other information if the enterprise deems it necessary for the fair and honest presentation of the financial statements.

2.5.2. Principles of preparation and presentation of notes to financial statements

a) When preparing financial statements, enterprises must make notes to the financial statements according to the guidance in this Circular.

b) The notes to the financial statements of the enterprise must present the following contents:

– Information about the basis for preparation and presentation of the financial statements and the specific accounting policies selected and applied to significant transactions and events;

– Provide additional information that is not presented in other financial statements, but is necessary for a true and fair presentation of the financial position and business results of the enterprise.

c) Notes to the financial statements must be presented in a systematic manner. Enterprises are allowed to actively arrange the ordinal numbers in the notes to the financial statements in the manner that best suits their characteristics according to the principle that each item in the statement of financial position, statement of income and the Statement of Cash Flows should be marked with relevant information in the Notes to the Financial Statements.

2.5.3. Basis for preparation of Notes to Financial Statements

– Based on the statement of financial position, the statement of business results, the statement of cash flows for the reporting period;

- Based on the general accounting books; Detailed accounting books and cards or relevant detailed summary tables;

– Based on the notes to the previous period's financial statements;

– Based on the actual situation of the enterprise and related documents.

2.5.4. Content and method of setting targets

2.5.4.1. Operational characteristics of the enterprise

In this section, enterprises should specify:

a) Form of capital ownership: Joint stock company, limited liability company, partnership or private enterprise.

b) Business field: Specify as industrial production, commercial business, service, construction and installation or a combination of many business fields.

c) Line of business: Specify the main business activities and characteristics of the production products or services provided by the enterprise.

d) Ordinary production and business cycle: In case the cycle lasts more than 12 months, the average production and business cycle of the industry or field shall be further explained.

dd) Characteristics of the enterprise's operations in the fiscal year that affect the financial statements: Clearly state events on the legal environment, market developments, characteristics of business operations, management, and finance. , events of merger, division, separation, change of scale, etc. have an impact on the financial statements of the enterprise.

2.5.4.2. Accounting period, currency used in accounting

a) The annual accounting period must clearly state the annual accounting period according to the calendar year starting from January 01st/… to December 01st/… If the enterprise has a different fiscal year than the calendar year, specify the start date and the end of the accounting year.

b) Currency used in accounting: clearly state Vietnam Dong or an accounting currency selected in accordance with the Law on Accounting.

2.5.4.3. Accounting standards and applicable accounting regime

Statement of Compliance with Accounting Standards and Accounting System: State whether the financial statements are properly prepared and presented and in accordance with the Accounting Standards and the Accounting System for Small and Medium Enterprises. ?

2.5.4.4. Applicable accounting policies

(1) The exchange rate applied in accounting:

– Commercial bank where the business regularly conducts transactions

– How to determine the actual exchange rate applied to transactions arising in the period and the exchange rate applied when re-evaluating monetary items denominated in foreign currencies at the end of the period.

(2) Principles of converting financial statements prepared in foreign currencies into Vietnam Dong.

(3) Principles of recognition of cash and cash equivalents: Specify on what basis cash equivalents are determined.

(4) Accounting principles for financial investments

a) For trading securities:

– Time of recognition (for listed securities, it is clearly stated that T+0 or other time)

– The carrying amount is determined to be the fair value or historical cost;

– Bases for making provision for devaluation of trading securities.

b) For loans:

– Are loans reassessed to meet the definition of monetary items denominated in foreign currencies?

– Bases for making provision for bad debts for loans.

c) For investments in joint ventures or associates (based on voting rate or other agreement):

– For joint ventures and associates purchased during the period, when is the initial recognition time?

– Principles of determining joint ventures and associates (based on the percentage of voting rights, the percentage of contributed capital or the percentage of interests);

- Bases for making provision for loss of investments in joint ventures and associates; grounds for determining loss;

d) For investments in equity instruments of other entities:

– Is the carrying amount of the investment in another entity measured at cost or another method?

- Bases for making provision for loss of investments in other entities; Financial statements to determine losses.

dd) Accounting methods for other transactions related to financial investment:

– Stock swap transactions;

- Investment transactions in the form of capital contribution;

– Transactions in the form of redemption of contributed capital;

– Accounting method for dividends paid by shares;

(4) Principles of accounting for receivables

– Criteria for classifying receivables (receivables from customers, internal receivables, other receivables)?

– Is it tracked in detail by original term, remaining term at the reporting time, original currency and each object?

– Does the revaluation of receivables meet the definition of monetary items denominated in foreign currencies?

- Method of making provision for bad debts.

(5) Principles of inventory recognition

– Principle of recognition of inventories: Specifying that inventories are recorded at cost or at net realizable value.

– Inventory valuation method: Specify which method to apply (weighted average; first-in, first-out; actual actual price or retail price method).

– Method of accounting for inventory: Specify whether to apply the perpetual inventory method or the periodic inventory method.

– Method of making provision for devaluation of inventories (Specify that the enterprise makes provision for devaluation of inventories on the basis of the larger difference between the historical cost and the net realizable value of the inventories. provision for devaluation of inventories is made according to the difference between the provision to be made this year and the provision made in the previous year that has not been used up, leading to the need to make more or reverse this year).

(6) Principles of accounting and depreciation of fixed assets, finance leased fixed assets, investment real estate

a) Accounting principles for tangible fixed assets and intangible fixed assets:

- Accounting principles, expenses incurred after initial recognition (expenses for upgrading, renovation, maintenance and repair) are recorded to historical cost or production and business expenses;

- Specify the methods of depreciation of fixed assets;

– Are other regulations on management, use and depreciation of fixed assets complied with?

b) Accounting principles for finance lease fixed assets:

- Specify how historical cost is determined;

- Specify the depreciation methods of finance lease fixed assets.

c) Accounting principles for investment properties.

– How is the cost of investment property recorded?

- Specify the methods of depreciation of investment property.

(7) Principles of accounting for liabilities

- How to classify liabilities?

– Is there tracking of liabilities by subject, original term, remaining term at the reporting time, in original currency?

– Are the liabilities re-evaluated to meet the definition of monetary items denominated in foreign currencies?

– Is there a provision for liabilities?

(8) Principles of recognition and capitalization of borrowing costs:

– Principle of recognition of borrowing costs: Specify whether borrowing costs are recognized as financial expenses in the period when they are incurred or capitalized.

– The capitalization rate used to determine the borrowing costs capitalized during the period: What is this capitalization rate?

(9) Principles of recognition of equity:

– Whether the owner's contributed capital is recognized according to the actual contributed capital; How is equity surplus recorded?

– How is undistributed profit determined?

(10) Principles and methods of recognizing revenue and other income:

– Revenue from sale of goods and provision of services: Are the conditions for revenue recognition fully complied with?

– Construction contract revenue

- Principles of revenue recognition from financial activities.

- Other income recognition principles.

(11) Principles of cost accounting:

– Cost of goods sold (whether the principle of matching with revenue is ensured; prudence is ensured, immediately recording expenses exceeding the normal level of inventory; recordings to decrease cost of goods). What is selling...)

– Financial expenses: Are interest expenses (including advance deductions) fully recorded for the reporting period?

– Business administration expenses: Are selling expenses and administrative expenses incurred in the period fully recorded; What are the adjustments to reduce selling and administrative expenses….

2.5.5. Additional information for items presented in the statement of financial position:

– In this section, the enterprise must present and analyze in detail the figures presented in the statement of financial position to help users of the financial statements better understand the content of assets and liabilities. payable and equity.

– The unit of value presented in the “Additional information for items presented in the Statement of Financial Statements” section is the unit of measure used in the Statement of Financial Statements. The data recorded in the column “At the beginning of the year” is taken from the column “End of the year” in the Notes to the previous year's financial statements. The data recorded in the column “Year-end number” is prepared on the basis of data taken from:

+ Report on financial situation this year;

+ General accounting books;

+ Detailed accounting books and cards or relevant detailed summary sheet.

– In case an enterprise applies retrospectively due to a change in accounting policy or retrospectively adjusts a material error of previous years, it must adjust the comparative figures (data in the column “First number of the year”) to ensure comparability and disclose this clearly in the notes to the financial statements. If, for some reason, the data in the column “At the beginning of the year” cannot be compared with the data in the column “End of the year”, this must be clearly stated in the Notes to the Financial Statements. .

- For items requiring explanation at fair value, in case the fair value cannot be determined, the reason must be clearly stated.

2.5.6. Additional information for items presented in the income statement:

– In this section, enterprises must present and analyze in detail the figures shown in the income statement to help users of the financial statements better understand the content of business items. revenue and expenses.

– The unit of value presented in the “Additional information for items presented in the income statement” section is the unit of measure used in the income statement. The figures recorded in the “Previous year” column are taken from the Notes to the previous year's financial statements. The data recorded in the column “This year” is prepared on the basis of data taken from:

+ Report on business results this year;

+ General accounting books;

+ Detailed accounting books and cards or relevant detailed summary sheet.

– Enterprises are allowed to actively number the order of detailed information presented in this section on the principle that it is consistent with the number cited in the income statement and to ensure ease of comparison and comparison between enterprises. periods.

– If for some reason the data in the “This year” column cannot be compared with the data in the “Previous year” column, this must be clearly stated in the Notes to the Financial Statements.

2.5.7. Additional Information for the Cash Flow Statement

– In this section, the enterprise must present and analyze the figures shown in the Statement of Cash Flows to help users better understand the factors affecting the cash flows of the enterprise during the period. .

– The unit of value presented in the “Additional information for items presented in the Statement of Cash Flows” section is the unit of measure used in the Statement of Cash Flows. The figures in the column “Previous year” are taken from the Notes to the previous year's financial statements; The data recorded in the column “This year” is prepared on the basis of data taken from:

+ This year's cash flow statement;

+ General accounting books;

+ Detailed accounting books and cards or relevant detailed summary sheet.

2.5.8. Other information

In this section, the enterprise must present other important information (if any) in addition to the information presented above in order to provide additional information if deemed necessary to help users understand the financial statements of the company. business has been presented honestly and reasonably.

SECTION 3. CONTENTS AND METHODS OF FINANCIAL STATEMENT OF SUPER SMALL ENTERPRISES

Micro enterprises shall base themselves on the annual financial statement form specified in Appendix 2 issued with this Circular and general principles to prepare and present financial statements at their units.

Article 82. Content and method of making financial statements of micro enterprises

1. Contents and method of setting criteria of the Financial Status Report (Form B01 – DNSN)

1.1. Asset

– Cash and cash equivalents (Entry 110)

This entry reflects all cash on hand, demand deposits in banks and cash equivalents existing of the enterprise at the reporting time.

The data to be recorded in this entry is the total debit balance of accounts 111, 112, the detailed debit balance of Account 1281 (details of deposits with original term not exceeding 3 months) and Account 1288 (details of items that qualify as cash equivalents).

Cash equivalents may include: Bank promissory notes, treasury bills, bank deposits with original term not exceeding 3 months...

Amounts previously classified as cash equivalents but overdue and not yet recovered must be presented in other entries, consistent with the content of each item.

– Investments (Entry 120)

Is a composite entry reflecting the total value of financial investments (after deducting provisions for financial investments), including: trading securities, investments held to maturity and investments in other entities.

Financial investments reflected in this entry do not include investments presented in the entry “Cash and cash equivalents” (Entry 110) and loan receivables already presented in the entry “Receivables” (Entry 130).

The data to be recorded in this entry is the debit balance of Accounts 121, 228 and Account 128 (after deducting financial investments classified as cash equivalents and receivables from loans). minus balance There are accounts 2291, 2292.

– Receivables (Entry 130)

Is an aggregate entry reflecting the entire value of receivables at the reporting time (after deducting provision for doubtful debts), such as: Receivables from customers, prepayments to sellers, receivables internal, receivables from loans, other receivables, pending assets, advances, deposits, escrow, etc.

The data for this entry is based on the total detailed debit balance by each debtor of accounts 131, 136, 138, 141, 334, 338, 1288 (loan details), 331 (details of loans). prepaid to the seller) after deducting the balance of Account 2293.

– Inventory (Entry 140)

Is a general entry reflecting the entire current value of inventories of all kinds in reserve for the production and business process of the enterprise (after deducting the provision for devaluation of inventories) at the reporting time.

The data to be recorded in this entry is the debit balance of accounts 151, 152, 153, 154, 155, 156, 157 after deducting the credit balance of account 2294.

– Residual value of fixed assets and investment property (Entry 150)

Is a general entry reflecting the entire residual value (original cost minus accumulated depreciation) of fixed assets and investment real estate at the reporting time.

The data to be recorded in this entry is the total debit balance of accounts 211 and 217 after deducting accumulated depreciation of fixed assets and investment properties (credit balance in Account 214).

– Other assets (Entry 160)

This entry reflects the value of assets other than those reflected in Codes 110, 120, 130, 140, 150 above such as deductible VAT, prepaid expenses, taxes and other expenses. receivables from the State, construction in progress, etc.

The data recorded in this entry is the debit balance of accounts 133, 241, 242, 333, ...

– Total assets (Entry 200)

Is a general entry reflecting the total value of existing assets of the enterprise at the reporting time.

Code 200 = Code 110 + Code 120 + Code 130 + Code 140 + Code 150 + Code 160.

1.2. Liabilities (Entry 300)

Is a general entry reflecting all payables at the reporting time.

Code 300 = Code 310 + Code 320 + Code 330 + Code 340 + Code 350 + Code 360

– Payable to the seller (Entry 310)

This entry reflects the amount remaining to be paid to the seller.

The data to be recorded in this entry is based on the total detailed Credit balance of Account 331.

– Buyer pays in advance (Entry 320)

This entry reflects the amount advanced by buyers to buy products, goods, services, fixed assets, investment real estate and enterprises are obliged to provide at the reporting time (excluding revenue received in advance). The data to be recorded in this entry is based on the detailed Credit balance of Account 131, which is opened for each customer.

– Taxes and other payables to the State (Entry 330)

This entry reflects the total amount that enterprises still have to pay to the State at the reporting time, including taxes, fees, charges and other payables.

The data to be recorded in this entry is based on the total detailed Credit balance of Account 333.

– Payables to employees (Entry 340)

This entry reflects the remaining amounts payable by enterprises to employees at the reporting time.

The data for this entry is based on the detailed Credit balance of Account 334.

– Loans payable (Entry 350)

This entry reflects the total value of loans and finance lease debts owed by the enterprise to banks, financial institutions, companies and other entities.

The data for this entry is based on the detailed Credit balance of Account 341.

– Other payables (Entry 360)

This entry reflects the value of payables other than those reflected in Codes 310, 320, 330, 340, 350 above such as: Expenses payable, internal payables, receipts. pledge, mortgage, deposit, escrow, provision for payable, unrealized revenue, excess assets pending settlement, bonus and welfare fund, science and technology development fund, payable, other payable , …

The data recorded in this entry is the Credit balance of Accounts 1388, 335, 336, 338, 352, 353, 356.

1.3. Equity (Entry 400)

Is a general indicator reflecting the business capital owned by shareholders and capital contributors, such as: Owner's investment capital, equity funds and undistributed after-tax profit, exchange rate difference, undistributed profit after tax…

Code 400 = Code 410 + Code 420 + Code 430

– Owner's investment capital (Entry 410)

This entry reflects the total amount of capital actually contributed by the owners and the surplus of share capital and other capital (if any) of the enterprise at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 411.

– Undistributed after-tax profit (Entry 420)

This entry reflects the undistributed after-tax profit (or loss) at the reporting time.

The data to be recorded in this entry is the Credit balance of Account 421. In case Account 421 has a Debit balance, this entry's data is recorded in negative numbers in the form of parentheses (…).

– Other items of equity (Entry 430)

This entry reflects the value of other items of equity other than those reflected in Codes 410 and 420 above. If this indicator data is negative, write it in parentheses (…).

The data recorded in this entry is the Credit balance of Account 418 after deducting the debit balance of Account 419.

– Total capital (Entry 500)

Reflecting the total amount of capital sources forming assets of the enterprise at the reporting time.

Code 500 = Code 300 + Code 400.

2. Content and method of setting targets of the report on business results (Form B02 – DNSN)

– Net revenue from selling goods and providing services (Entry 01)

This entry reflects the total revenue from selling goods and providing services after deducting sales deductions in the reporting period. This entry does not include indirect taxes incurred when selling goods and providing services.

The data of this entry is based on the amount arising from the debit side of Account 511 to the credit side of Account 911.

– Cost of goods sold (Entry 02)

This entry reflects the total cost of goods and investment property, the cost of finished products sold, the volume of services provided, and the expenses included in the cost of goods sold after deducting any deductions for cost of goods sold. during the reporting period.

The data to be recorded in this entry is the accumulated amount arising on the Credit side of Account 632 and on the Debit side of Account 911.

– Business administration expenses (Entry 03)

This entry reflects the total administrative and business expenses incurred in the reporting period.

The data to be recorded in this entry is the total arising on the Credit side of Account 642, corresponding to the Debit side of Account 911.

– Profit/loss from financial and other activities (Entry 04)

This entry reflects the profit or loss arising from financial and other activities in the reporting period.

The data to be recorded in this entry is the difference between the total amount arising on the Credit side of Account 515, 711 (after deducting adjustments to decrease financial income and other income) and the total amount arising from the Debit side. Account 635, 811 (after deducting adjustments to reduce financial and other expenses).

In case of loss, this indicator is recorded in negative numbers in the form of parentheses (…).

– Accounting profit before tax (Entry 05)

This entry reflects the total pre-tax accounting profit realized in the reporting period of the enterprise before deducting CIT expenses.

In case of loss, this indicator is recorded in negative numbers in the form of parentheses (…).

Code 05 = Code 01 – Code 02 – Code 03 + Code 04.

– Corporate income tax expense (Entry 06)

This entry reflects corporate income tax expenses incurred in the reporting period. The data for this entry is based on the total amount incurred by the Credit side of Account 821 corresponding to the debit side of Account 911 or based on the arising number of the debit side of Account 821 corresponding to the Credit side of Account 911 during the reporting period.

– Profit after corporate income tax (Entry 07)

This entry reflects the total net profit (or loss) after CIT from the enterprise's activities (after deducting corporate income tax expenses) arising in the reporting year.

In case of loss, this indicator is recorded in negative numbers in the form of parentheses (…).

Code 07 = Code 05 – Code 06.

3. Contents and methods of setting targets of the Notes to the financial statements (Form B09 – DNSN)

3.1. Operational characteristics of the enterprise

In this section, enterprises should specify:

a) Form of capital ownership: Joint stock company, limited liability company, partnership or private enterprise.

b) Business field: Specify as industrial production, commercial business, service, construction and installation or a combination of many business fields.

c) Line of business: Specify the main business activities and characteristics of the production products or services provided by the enterprise.

3.2. Accounting period, currency used in accounting

a) The annual accounting period must clearly state the annual accounting period according to the calendar year starting from January 01st/… to December 01st/… If the enterprise has a different fiscal year than the calendar year, specify the start date and the end of the accounting year.

b) Currency used in accounting: Specify as Vietnam Dong.

3.3. Accounting standards and applicable accounting regime

Statement of Compliance with Accounting Standards and Accounting System: State whether the financial statements are properly prepared and presented and in accordance with the Vietnamese Accounting Standards and Accounting System for Enterprises.

3.4. Additional information for items presented in the statement of financial position:

– In this section, the enterprise must present and analyze in detail the figures presented in the statement of financial position to help users of the financial statements better understand the content of assets and liabilities. payable and equity.

– The unit of measure presented in the section “Additional information to items presented in the Statement of Financial Position” is the unit of measure used in the Statement of Financial Position. The data recorded in the “At the beginning of the year” column is taken from the “End of the year” column in the Notes to the previous year's financial statements. Data recorded in the column “End of the year” is prepared on the basis of data taken from:

+ Report on financial situation this year;

+ General accounting books;

+ Detailed accounting books and cards or relevant detailed summary sheet.

– Enterprises are entitled to actively number the order of detailed information presented in this section on the principle that it is consistent with the numbers quoted from the statement of financial position and ensure ease of comparison and comparability between periods. .

3.5. Additional information for items presented in the income statement:

– In this section, enterprises must present and analyze in detail the figures shown in the income statement to help users of the financial statements better understand the content of business items. revenue and expenses.

– The unit of value presented in the “Additional information for items presented in the income statement” section is the unit of measure used in the income statement. The figures recorded in the “Previous year” column are taken from the Notes to the previous year's financial statements. The data recorded in the column “This year” is prepared on the basis of data taken from:

+ Report on business results this year;

+ General accounting books;

+ Detailed accounting books and cards or relevant detailed summary sheet.

– Enterprises are allowed to actively number the order of detailed information presented in this section on the principle that it is consistent with the number cited in the income statement and to ensure ease of comparison and comparison between enterprises. periods.

– If for some reason the data in the “Previous year” column cannot be compared with the data in the “Next year” column, this must be clearly stated in the Notes to the Financial Statements.

3.6. Other information that businesses need to disclose

In this section, the enterprise must present other important information (if any) in addition to the information presented above in order to provide additional information if deemed necessary to help users understand the financial statements of the company. business has been presented honestly and reasonably.

SECTION 4. CONTENTS AND METHODS OF MAKING BALANCE SHEET

Article 83. Contents and methods of making balance sheet of accounts (Form No. F01 – DNN)

1. Purpose: Reflect in general the increase, decrease and current situation of assets and capital of the entity during the reporting period and from the beginning of the year to the end of the reporting period. The data on the Balance Sheet is the basis for checking the recording in the general accounting books, and at the same time comparing and controlling the data recorded in the financial statements.

2. Basis and method of bookkeeping:

The account balance sheet is prepared based on the previous period's General Ledger and Balance Sheet.

Before preparing the Balance Sheet, the detailed accounting books and general accounting books must be completed; check and compare data between related books.

Data recorded in the balance sheet is divided into 2 types:

– Type of data reflecting the balances of accounts at the beginning of the period (Column 1,2- Balance at the beginning of the year), at the end of the period (columns 5, 6 Balance at the end of the year), in which accounts have Debit balance is reflected in “Debit” column, accounts with Credit balance are reflected in “Yes” column.

– The type of data reflects the arising number of accounts from the beginning of the period to the end of the reporting period (columns 3, 4 arising in the month) in which the total arising “Debits” of the accounts is reflected in column "Debit", the total amount arising "Yes" is reflected in the column "Yes" of each account.

– Columns A, B: Account numbers, account names of all Level 1 Accounts that the unit is using and a number of Level 2 Accounts to be analyzed.

– Column 1, 2- Beginning balance: Reflects the balance of the first day of the first month of the year (the balance at the beginning of the reporting year). The data to be recorded in these columns is based on the line at the beginning of the month of the first month of the year on the Ledger or on the section "The balance at the end of the year" of the balance sheet of the previous year.

– Columns 3, 4: Reflecting total arising Debit and total arising Credit of accounts in the reporting year. The data recorded in this section is based on the line "Accumulated addition from the beginning of the year" of each corresponding account on the Ledger.

– Columns 5, 6 “Year-end balance”: Reflects the balance on the last day of the reporting year. The data to be recorded in this section is based on the month-end balance of the last month of the year reported on the Ledger or calculated based on the columns of balance at the beginning of the year (columns 1, 2), numbers arising in the year (column 3, 4) on the Balance Sheet for this year. The data in columns 5 and 6 are used to prepare the next year's balance sheet.

After recording all the figures related to the accounts, a total of the Balance Sheet must be made. The figures in the Balance Sheet must ensure the following mandatory balance:

Total Debit balance (column 1), Total Credit balance (column 2), Total debit balance (column 3), Total Credit balance (column 4), Total Debit balance (column 5), Total balance Yes (column 6).

Chapter IV

FINANCIAL PAPER

Article 84. General provisions on accounting vouchers and the system of accounting voucher forms

1. Accounting vouchers applied to enterprises must comply with the provisions of the Law on Accounting, the Decree detailing a number of articles of the Law on Accounting and amendments and supplements.

2. The types of accounting vouchers in the list and forms of accounting vouchers are of the manual type. Enterprises are entitled to actively develop and design accounting voucher forms in accordance with their operational characteristics and management requirements but must meet the requirements of the Accounting Law and ensure clear principles, transparent, timely, easy to check, control and compare.

3. In case the enterprise does not develop and design its own voucher forms, the enterprise may apply the system of accounting voucher forms according to the instructions in Appendix 3 issued together with this Circular to record accounting vouchers suitable to the characteristics of production and business activities and management requirements of the enterprise.

4. Enterprises with specific economic and financial operations that are subject to regulation by other legal documents shall apply the provisions on documents in those documents.

Article 85. Making and signing accounting vouchers

1. The arising economic and financial operations related to the operation of the enterprise must make accounting vouchers. Accounting vouchers are made only once for each economic and financial operation.

2. Accounting vouchers must be made clearly, completely, timely and accurately according to the contents specified on the form. In case the accounting vouchers do not have a template, the accounting unit may design the accounting voucher form by itself but must ensure all the contents prescribed by the Law on Accounting.

3. Contents of economic and financial operations on accounting vouchers must not be abbreviated, erased or corrected; When writing, you must use a pen, numbers and words must be continuous, without interruptions, blank spaces must be crossed out. Corrected or erased vouchers have no payment value and are recorded in accounting books. When an accounting voucher is written incorrectly, it must be canceled by crossing the wrongly written voucher.

4. Accounting vouchers must be made with the required number of copies. In case of making multiple copies of accounting vouchers for an economic or financial operation, the contents of the sheets must be the same.

5. Accounting vouchers must have full signatures according to the titles specified on the vouchers. Signatures on accounting vouchers must be signed with indelible ink. Accounting vouchers must not be signed in red ink or stamped with pre-engraved signatures. Signatures on accounting vouchers of one person must be consistent. The makers, reviewers and other persons who sign on the accounting vouchers must be responsible for the contents of the accounting vouchers.

6. Enterprises that do not have the title of chief accountant must appoint a person in charge of accounting to deal with customers, banks, etc. The chief accountant's signature shall be replaced by the signature of the person in charge of accounting of that unit. . The person in charge of accounting must properly perform the responsibilities and rights prescribed for the chief accountant.

7. Signatures on accounting vouchers must be signed by a competent person or an authorized person. Persons authorized or authorized to sign vouchers are strictly prohibited from signing accounting vouchers when they have not yet recorded or have not fully recorded voucher contents according to the responsibility of the signer.

8. The decentralization of signing on accounting vouchers shall be prescribed by the General Director (Director), the legal representative of the enterprise in accordance with the law, management requirements, ensuring strict control and security. whole property.

9. Accounting vouchers for payment must be signed by persons competent to approve payments and chief accountants or authorized persons before the payment is effected. Accounting vouchers used for payment must be signed on each copy.

10. The chief accountant (or authorized person) must not sign the "authorization" of the head of the enterprise. The authorized person cannot re-authorize another person.

11. Electronic vouchers must have electronic signatures. Signatures on electronic vouchers have the same value as signatures on paper vouchers.

Article 86. Order of rotation and examination of accounting vouchers

1. All accounting vouchers made by the enterprise or transferred from outside must be gathered at the enterprise accounting department. The accounting department checks those accounting vouchers and only after examining and verifying the legality of the vouchers will they use those vouchers to record in the accounting books.

2. The order of rotation of accounting vouchers includes the following steps:

- Making, receiving and processing accounting vouchers;

- Accountants, chief accountants check and sign accounting vouchers or submit them to signers for approval according to their competence;

- Classify and arrange accounting documents, items and record accounting books;

- Store and preserve accounting documents.

3. Order of checking accounting vouchers.

- Check the clarity, truthfulness and completeness of the criteria and elements recorded on the accounting vouchers;

- Check the legitimacy of arising economic and financial operations recorded in the accounting vouchers, compare the accounting vouchers with other relevant documents;

- Check the accuracy of data and information on accounting vouchers.

4. When examining accounting vouchers, if detecting violations of the State's policies, regimes and regulations on economic and financial management, they must refuse to do so (Do not release funds, make payments, ex-warehousing,…) at the same time, immediately notify the executive manager of the enterprise for timely handling in accordance with current laws. For accounting vouchers that are not made according to procedures, contents and numbers are unclear, the person in charge of checking or recording must return them, request further procedures and adjustments after that as a basis. carrying.

Article 87. Translating accounting vouchers into Vietnamese, using, managing, printing and issuing accounting voucher forms

Accounting vouchers written in foreign languages, when used to record accounting books and prepare financial statements in Vietnam, must be translated into Vietnamese with the main contents specified in the Law on Accounting.

The accounting unit must be responsible for the accuracy and completeness of the contents translated into foreign languages ​​into Vietnamese. The document translated into Vietnamese must be attached to the original in foreign language.

Documents attached to accounting vouchers in foreign languages ​​such as contracts, documents attached to payment vouchers, investment project dossiers, final settlement reports and other relevant documents are not required to be translated. Vietnamese language unless requested by a competent State agency.

Enterprises can buy ready-made or design their own samples or print them themselves, but they must ensure the main contents of the vouchers specified in the Law on Accounting.

Documents must be preserved carefully, not to be damaged or rotten. Checks and valuable papers must be managed like money. Enterprises that use electronic vouchers for economic and financial activities and bookkeeping must comply with the provisions of legal documents on electronic documents.

Chapter IV

ACCOUNTING BOOK AND FORM OF ACCOUNTING

Article 88. Accounting books

1. Accounting books are used to record, systemize and store all arising economic and financial transactions according to economic contents and in chronological order related to enterprises. Each small and medium-sized enterprise has only one accounting book system for one accounting period. Small and medium enterprises must comply with the provisions on accounting books in the Accounting Law, the documents guiding the implementation of the Accounting Law and the guiding documents, amendments, supplements or replacements.

2. Enterprises are allowed to build their own forms of accounting books, but must ensure to provide information on economic transactions in a transparent, complete, easy to check, control and compare manner. In case the enterprise does not build the accounting book form by itself, the enterprise may apply the accounting book form according to the instructions in Appendix 4 issued together with this Circular if it is suitable with the characteristics of management and business activities. mine.

3. Depending on the operation characteristics and management requirements, enterprises are entitled to develop their own form of bookkeeping on the basis of ensuring that information on transactions must be fully and timely reflected. easy to check, control and compare.

Article 89. Responsibilities of accountants and bookkeepers

Accounting books must be strictly managed, clearly assigning individual responsibilities for keeping and recording books. If the accounting book is assigned to an employee, that employee must be responsible for the things recorded in the book and for keeping the book during the period of using the book. When there is a change of staff to keep and record books, the chief accountant must organize the handover of responsibility for management and bookkeeping between the old employee and the new employee. The handover minutes must be signed for certification by the chief accountant.

Article 90. Opening and recording of accounting books, signature and repair of accounting books

1. Open the book

Accounting books must be opened at the beginning of the annual accounting period. For newly established enterprises, accounting books must be opened from the date of establishment. The legal representative and chief accountant of the enterprise are responsible for signing and approving the accounting books. Accounting books can be closed into books or leave separate sheets. The notebooks, when finished, must be closed into books for storage. Before using accounting books, the following procedures must be completed:

- For book-type accounting books: The first page of the book must clearly state the name of the enterprise, the name of the book, the date of opening the book, the accounting year and the book-recording period, the full name and signature of the book-keeper and bookkeeper, and the accountant. principal and legal representative, closing date or transfer date to another person. An accounting book must have its pages numbered from the first to the last page, and between the two pages there must be a seal of the accounting unit.

– For loose-leaf books: At the beginning of each separate-sheet book, the enterprise name, ordinal number of each sheet must be clearly written, the name of the book, the month of use, the full name of the holder and the bookkeeper. Loose sheets before use must be signed by the director of the enterprise or authorized person, stamped and recorded in the register of use of the loose sheet book. The separate ledgers must be arranged in the order of the accounting accounts and must be safe and easy to find.

2. Bookkeeping: The recording of accounting books must be based on accounting vouchers which have been checked to ensure the regulations on accounting vouchers. All data recorded in the accounting books must be supported by lawful and reasonable accounting vouchers.

3. Closing: At the end of an accounting period, accounting books must be closed before making financial statements. In addition, accounting books must be closed in cases of inventory or other cases as prescribed by law.

4. For bookkeepers belonging to accounting service units, they must sign and clearly state the practicing certificate number, name and address of the accounting service provider. The bookkeeper being a practicing individual shall specify the number of his/her practicing certificate.

5. When detecting errors in the accounting books of the reporting period, they must be corrected by a method consistent with the provisions of the Law on Accounting.

6. Where errors are detected in previous periods, enterprises must make retrospective adjustments.

Chapter VI

ORGANIZATION OF IMPLEMENTATION

Article 91. Conversion of balances in accounting books

1. Enterprises shall convert the following account balances:

– Detailed balances of gold, silver, precious metals and gems reflected in Account 1113 and 1123 are transferred to account 152 – Inventories, Account 155 – Finished Goods, Account 156 – Goods ( for gold, silver, precious metals, gems are classified as inventory) and Account 2288 – Other investments (for gold, silver, precious metals and gems not classified as inventory).

– The balance of bonds, bills, promissory notes held to maturity, not held for business purposes (buying and selling for the purpose of making a profit through the difference in buying and selling prices) is reflecting on Account 121 – Short-term financial investments are transferred to Account 128 – Held-to-maturity investments (1288);

– Account 142 – Short-term prepaid expenses are transferred to Account 242 – Prepaid expenses;

– The detailed balance of Account 1388 for short-term deposits and deposits and Account 244 – Deposits and long-term deposits are transferred to Account 1386 – Pledge, mortgage, escrow, deposit;

– The balance of provisions being reflected in Accounts 159 and 229 is transferred to Account 229 – Provision for property loss (details for each level 2 account are consistent with provisions);

– Account balance 311 – Short-term loans, Account 315 – Long-term debt due, Account 3411- Long-term loans and Account 3412 – Long-term debt transferred to Account 341 – Loans and financial leases;

– Account balance 3414 – Receive deposit, long-term deposit will be transferred to Account 3386 – Receive deposit, deposit.

- Advance deduction for repair and maintenance costs for fixed assets in normal operation (for fixed assets subject to periodic repair according to technical requirements), costs for environmental restoration, site return and other calculated Similar substances are reflected in Account 335 – Payable expenses are transferred to Account 352 – Provision for payables (details account 3524).

2. Other contents that are reflected in details on the relevant accounts, if contrary to this Circular, must be adjusted according to the provisions of this Circular.

Article 92. Retrospective clause

1. Enterprises do not continue to depreciate investment properties held for price appreciation and do not have to retroactively all accumulated depreciation expenses deducted from previous periods.

2. The enterprise shall report the comparative information on the financial statements for the criteria that have changed between this Circular and the corporate accounting regime promulgated under the Decision No. 48/2006/QD-BTC dated September 14, 9 by the Minister of Finance and explaining the reason for the change in the corporate accounting regime.

Article 93. Enforcement

1. This Circular takes effect for the financial year beginning or after January 1, 1. The provisions contrary to this Circular are annulled. This Circular replaces the contents applicable to small and medium-sized enterprises in Decision No. 2017/48/QD-BTC dated September 2006, 14 of the Minister of Finance and Circular No. 9/2006/TT- BTC dated October 138, 2011 of the Ministry of Finance.

2. Ministries, branches, People's Committees, Departments of Finance, Tax Departments of provinces and centrally run cities are responsible for guiding enterprises to implement this Circular. In the course of implementation, if any problems arise, they should be reported to the Ministry of Finance for study and settlement.