Decision 15 - Part I - Chart of Accounts - Edition 1 2 2 - ban 18 Mb

MINISTRY OF FINANCE Decision 15/2006/QD-BTC PREFACE Accompanying with twenty-two Vietnamese Accounting Standards that have been released, the Ministry of Finance issued a comprehensive set of accounting system the Decision 15/2006/QD-BTC the Decision 15 applied for all business entity including the foreign invested companies doing business in Vietnam. Wishing to convey these regulations to foreign investors existing and future in Vietnam and also the interested professionals abroad, we, KTC Assurance & Business Advisors, have obtained approval and assistance from the Department of Accounting and Auditing Policy of the Ministry of Finance to make an unofficial translation of these regulations into English. The book is structured as follows: Part I Part II Part III Part IV Appendix I Appendix I : Chart of Accounts : Financial statements : Accounting documents : Accounting books and forms : Accounting flow charts : Accounting law

KTC Assurance & Business Advisors is a professional accounting firm committed to providing high quality service to our clients. At KTC, we are focusing on providing value added services which bring to our client practical and cost-effective solutions to their business issues. We have cost-effective office in Hanoi and a representative office in Ho Chi Minh City. Our translation and edition team is led and reviewed by highly qualified specialists, including Noli Encarnacion, Long Duc Ngo, Hung Duy Pham, Linh Thuy Do and Anh Van Thai who have practices from ten to twenty years experience in accounting practices in Vietnam and overseas. Since this is the first edition being published, we would be much appreciated to receive any advice or comments from our readers for our continuous improvements. KTC Assurance & Business Advisors would like to express sincere thanks to the Department of y Accounting and Auditing Policy of the Ministry of Finance, especially Professor Bui Van Mai for his kind assistance and encouragement. Our sincere thanks are also expressed to our other committed and hard-working team members, namely Tam Thanh Hoang, Huong Dieu Le, Hong Bich Nguyen, Toan Duy Nguyen, Hien Luong Thu, Tam Thanh Phan, Mai Anh Phan and Lan Thi Van. While every effort has been made to ensure that the translation reflects the form and spirit of the Decision 15, KTC accepts no responsibility for any loss and/or damage resulted from your reliance on this translation. Further inquiries and/or advice on this publication should be addressed to: KTC Assurance & Business Advisors Suite 237, 33A Pham Ngu Lao Hoan Kiem, Hanoi, Vietnam URL: www.ktcvietnam.com. Telephone: +84-4-933 4057 Email: [email protected] Att: Linh Thuy Do Mrs

Translation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC

MINISTRY OF FINANCE No. 15/2006/Q -BTC

SOCIALIST REPUBLIC OF VIETNAM Independence Freedom Happiness Hanoi, 20 March 2006

DECISION on promulgation of the Corporate Accounting System THE MINISTER OF FINANCE Pursuant to the Accounting Law No. 03/2003/QH11 dated 17 June 2003 and Decree No. 129/2004/N -CP dated 31 May 2004 of the government detailed stipulating and guiding the implementation of some regulations of Accounting Law on business activities; Pursuant to the Decree No. 77/2003/N -CP dated 1 July 2003 of the Government stipulating the function, responsibility, right and organizational structure of the Ministry of Finance; organizational Upon the proposal of the Director of the Accounting and Auditing Policy Department and the Accounting Chief Officer of the Ministry of Finance DECIDES Article 1: Promulgate the Enterprise Accounting System applicable to enterprises in all fields : of business and economic sectors. The Enterprise Accounting System includes: Enterprise Part 1: Chart of accounts Part 2: Financial Statements Part 3: Accounting Documents Part 4: Accounting Books Article 2: Entrepreneurs, companies, corporations based on the Corporate Accounting System : study, tailor and set up their accounting system with detailed contents and application met the business features as well as management requirements of each business field, economic sector. Any amendment or supplement to class 1 and class 2 sub-accounts or amendment on presentation of financial statements should be allowed by the Ministry of Finance in official documents. In compliance with stipulations of this Corporate Accounting System and guiding documents of Corporate apply higher authorities, entity should study and appl chart of accounts, documents, accounting books and type of accounting books met the business features, management requirements and accounting quality of the enterprise. Article 3: This Decision comes in to effect 15 days from the gazette day. Only the regulation of Preparation of interim consolidated financial statements in the Point 4 Responsibility of preparing and disclosure of financial statements , Item I/A Part Two is applicable from the year of 2008. This Decision replaces the Decision No. 1141TC/QDD/C KT dated 1 November 1995 of the Minister of Finance promulgating the Corporate Accounting System , Decision No. 167/2000/Q -BTC dated 25 October 2000 of the Minister of Finance issuing Enterprise Financial Statements System and Decrees of No. 10TC/C KT dated 20 March 1997 Guidance on amendment, supplement of Corporate Accounting System ; Decree No. 33/1998/TT-BTC dated 17 March 1998 Guidance on making and using of provision for obsolete stock, provision for doubtful debt, provision for price reduction of securities in State owned enterprises ; DecreeTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC No.77/1998/TT-BTC dated 6 June 1998 Guidance on exchange rate of foreign currency to Vietnamese Dong in accounting record of enterprises ; Decree No.100/1998/TT-BTC dated 15 July 1998 Guidance on accounting for Value Added Tax and Enterprise Income Tax ; Decree No.180/1998/TT-BTC dated 26 December 1998 Supplemented guidance on accounting for Value Added Tax ; Decree No.186/1998/TT-BTC dated 28 December 1998 Guidance on accounting for export, import, special consumption tax ; Decree No.107/1999/TT-BTC dated 1 September 1999 Guidance on accounting for Valued Added Tax on financial lease ; Decree No. 120/1999/TT-BTC dated 7 October 1999 Guidance on amendment, supplement of Enterprise Accounting System ; Decree No.54/2000/TT-BTC dated 7 June 2000 Guidance on accounting for sale of goods at subsidiaries of dependent accounting in other locations ad through commission agents . Article 4: All regulations in Decisions of promulgation of Vietnamese Accounting Standards and namese Circulars of guidance on implementation of Vietnamese Accounting Standards from batch 1 to 5 which do not conflict with this Decision are still on effect. : Article 5: Ministries, ministry-like offices, People s Committees of provinces and centrally controlled cities are responsible for guiding; developing the application of Corporate Accounting developing System promulgated in compliance with this Decision in dependent units or authorized area. Decision : Article 6: Director of Accounting and Auditing Policy Department, Chief of Ministry s Offices, Director of the Enterprise Finance Department, Director of the General Department of Tax and Director Head of related Departments of Ministry of Finance are responsible for guidance, monitor and Finance implementation of this Decision.

For the Minister of Finance Vice Minister signed Tran Van Ta


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PART I CHART OF ACCOUNTS


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC I. GENERAL REGULATIONS 1. Chart of accounts is used to classify and systemize the economic transactions by their nature. Chart of accounts applied for business entities consists of class 1 and class 2 sub-accounts, balance sheet accounts and off balance sheet accounts. 2. Entrepreneurs, companies and corporations based on the Corporate Accounting System , study, tailor and set up their accounting system with detailed contents and application met the business features as well as management requirements of each business field, economic sector. 3. Any amendment or supplement to class 1 and class 2 sub-accounts or amendment on their title or codes or accounting treatment for specific transactions should be approved by the Ministry of Finance in written. are 4. Entrepreneurs, companies and corporations are allowed to open sub-accounts for class 2 and 3 of which are not regulated in the chart of accounts given by this Decision. The business r entity doesn t have to apply for approval of the Ministry of Finance for these types of subaccounts.


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC II. CHART OF ACCOUNTS APPLIED FOR BUSINESS ENTITIES Code Class 1 Class 2 2 3

No. 1

NAME OF ACCOUNTS 4 CATEGORY 1 CURRENT ASSETS Cash on hand Vietnam dong Foreign currency Gold, silver, gemstones Cash in bank

NOTE 5

01

111 1111 1112 1113

02

112 1121 1122 1123

Maintain in details

Vietnam dong Foreign currency Gold, silver, gemstones Cash in transit

03

113 1131 1132

Vietnam dong Foreign currency Short term investment Equity securities Debt securities Other short-term investments Short-term deposits Other short-term investment Provision for short-term investments Account receivable-trade Deductible value added tax Maintain in details

04

121 1211 1212

05

128 1281 1288

06 07 08

129 131 133 1331 1332

Deductible VAT of merchandises and services Deductible VAT of fixed assets Inter-company receivables Investment in subsidiary Other inter-company receivablesTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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136 1361 1368

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Code Class 1 Class 2 2 3 138 1381 1385 1388 11 12 13 14 15 139 141 142 144 151

No. 1 10

NAME OF ACCOUNTS 4 Other receivables Shortage of assets awaiting resolution Receivable from equitisation Other receivable Provision for doubtful debts Advances to suppliers Prepaid expenses Short-term deposits, collateral Goods in transit

NOTE 5

Maintain in details

mortgages

and

16 17 18 19 20

152 153 154 155 156 1561 1562 1567

Raw materials Tools and supplies Work in process Finished goods Merchandise goods Purchase costs Collection costs Property/real estate Goods on consignment Goods in bonded warehouse

Maintain in details upon management requirement

21

157

22 23 24

158 159 161 1611 1612

For entity having goods imported and exported in bonded warehouse

Provision for obsolete stock Expenditures from subsidies of State Budget Prior year budget Current year budget CATEGORY 2 NON-CURRENT ASSETS

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211 2111 2112

Tangible assets Buildings & structures Machinery and equipmentTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Code Class 1 Class 2 2 3 2113 2114 2115 2118 26 27 212 213 2131 2132 2133 2134 2135 2136 2138 28 214 2141 2142 2143 2147 29 30 31 32 33 217 221 222 223 228 2281 2282 2288 34 35 229 241 2411 2412 2413 36 37 38 242 243 244

No. 1

NAME OF ACCOUNTS 4 Transportation and facilities Office equipment Perennial trees, working and producing animals Other tangible assets Finance lease assets Intangible assets Land Use rights Mastheads and publishing titles Copy rights, patents Brand names Computer software Licenses and franchises Other intangible assets Accumulated depreciation amortization

NOTE 5

and

Accumulated depreciation on fixed assets Accumulated depreciation on finance lease assets Amortization of intangible assets Amortization of investment property Investment property Investment in subsidiaries Shares in joint ventures Investment in associates Other long-term investments Equity securities Debt securities Other long-term investments Provision for long-term investments Construction in progress Acquisition of fixed assets Construction in progress Extraordinary repairs Long-term prepaid expenses Deferred tax assets Long-term deposits CATEGORY 3Translation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Code Class 1 Class 2 2 3 311 315 331 333 3331 33311 33312 3332 3333 3334 3335 3336 3337 3338 3339 43 334 3341 3342 44 45 335 336

No. 1 39 40 41 42

NAME OF ACCOUNTS 4 LIABILITIES Short-term loan Current portion of long-term loan Trade payables Tax and statutory obligations VAT Output VAT Import VAT Special consumption tax Import, export duties Profit tax Personal Income tax Natural resource tax Land and housing tax Other taxes payable Fees, duties and other obligations Payables to employees Payable to employee salary Other payable to employees Accruals Inter-company payables

NOTE 5

Maintain in details

46 47

337 338 3381 3382 3383 3384 3385 3386 3387 3388

For construction contract in which Contraction contractor payables based on payment made by agreed progress billing progress Other payables Surplus of assets waiting for resolution Trade union fees Social insurance payable Health insurance payable Payable from equitization applicable to privatized SOEs only Receipt of deposits and pledges Deferred income Other payables Long-term loans Long-term payable Bond issued Bond costTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

48 49 50

341 342 343 3431

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Code Class 1 Class 2 2 3 3432 3433 51 52 53 54 344 347 351 352

No. 1

NAME OF ACCOUNTS 4 Bond discount Bond premium Long-term deposits received Deferred tax liabilities Provision for severance allowance Provisions CATEGORY 4 OWNERS EQUITY

NOTE 5

55

411 4111 4112 4118

Paid-in capital Share capital Capital surplus Share premium Other capital Asset revaluation reserve Foreign exchange differences Foreign exchange differences at balance sheet date Foreign exchange differences construction period Investment and development fund Financial reserve fund Other funds under

For joint stock entity

56 57

412 413 4131 4132

58 59 60 61 62

414 415 418 419 421 4211 4212

63

431 4311 4312 4313

64

441

Treasury share Undistributed earnings Prior year earnings Current year earnings Bonus and welfare funds Bonus funds Welfare funds Social benefit fund in form of fixed assets Investment in capital construction

For joint stock entity

65

461 4611 4612

Subsidy funds from State Budget Prior year Current year

For SOEs For companies, groups & corporations


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Code Class 1 Class 2 2 3 466

No. 1 66

NAME OF ACCOUNTS 4 Sources for acquisition of fixed assets

NOTE 5

CATEGORY 5: REVENUES 67 511 5111 Sales Sales of merchandise Maintain in details upon management requirement

5112 5113 5114 5117 68 512 5121 5122 5123 69 70 71 72 515 521 531 532

Sales of products Service revenues Revenue from subsidies Sales from property investment Inter-company revenue Sales of merchandise Sales of products Service revenues Financial income Sales discounts Sales returns Sales allowances CATEGORY 6 PRODUCTION COSTS AND COST

Sales to subsidiaries

73

611 6111 6112

Purchases Purchases of raw material Purchases of merchandise Raw material costs Direct labor costs Machine costs 6231 Labor costs 6232 Use of auxiliary materials 6233 Use of tools and supplies

Applied for periodic inventory method

74 75 76

621 622 623 6231 6232 6233

For construction contractor


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Code Class 1 Class 2 2 3 6234 6237 6238 77 627 6271 6272 6273 6274 6277 6278 78 79 80 81 631 632 635 641 6411 6412 6413 6414 6415 6417 6418 82 642 6421 6422 6423 6424 6425 6426 6427 6428

No. 1

NAME OF ACCOUNTS 4 6234 Depreciation 6237 Service rental Sundry cash expenses Factory overhead costs Indirect labour Use of auxiliary materials Use of tools and supplies Depreciation Services rendered Sundry cash expenses Cost of products manufactured Cost of goods sold Financial expenses Selling expenses Sales salary expenses Packaging and indirect materials Consumable and office supplies Depreciation Warranty expenses Rendered services Sundry cash expense General and administration expenses Office salaries Consumable and office supplies Office supplies Depreciation Taxes, fees and charges Expenses from provisions Services rendered by outsiders Sundry cash expenses CATEGORY 7 OTHER INCOME

NOTE 5

Periodic inventory method

83

711

Other income CATEGORY 8 OTHER EXPENSES

Maintain in details


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Code Class 1 Class 2 2 3 811 821 8211 8212

No. 1 84 85

NAME OF ACCOUNTS 4 Other expenses Enterprise Income Tax Current income tax Deferred income tax CATEGORY 9 INCOME SUMMARY

NOTE 5 Maintain in details

86

911

Income summary CATEGORY 10 OFF BALANCE SHEET ACCOUNTS

001

Operating lease assets Maintain in details upon management requirement

002 003 004 007 008

Goods held under trust or for processing Goods received on consignment for sale Bad debts written off Multi-foreign currencies Subsidies of State Budget


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC III. CONTENT AND RECORDING METHOD ACCOUNTING DOCUMENTS CATEGORY I CURRENT ASSETS This account records both the balance and movements of the current assets in a business. Current assets are those assets owned by the enterprise and their benefits are fully realised within one year or within the company s business cycle. Current assets may be cash, inventory, short term investments and other receivables. Current assets of the business include: cash, short term investments, receivables, inventories, and itures other current assets. It also includes expenditures from subsidies of the State Budget. THIS ACCOUNT MUST COMPLY WITH THE FOLLOWING REGULATIONS 1. When accounting for current assets, the accountant must comply with those regulations stated for each individual current asset including cash, short term investments, receivables, short term deposit, inventories. 2. Short term investments, receivables and inventory should be recorded at cost. However, at the end of the fiscal year these accounts must be re-valued at the lower of cost or market value re-valued net realisable value . Provision for the decline in the value of inventory, receivables and investments are recorded inventory, in their respective provision accounts and may not be netted against the respective current asset. The provision accounts are used to adjust the value of a current asset to the lower of cost or value market value for presentation in the balance sheet. Current assets have 24 accounts which are classified into six groups: Group 11 Cash is composed of three accounts: Account 111 Account 112 Account 113 Cash on hand Cash in bank Cash in transit

Group 12 Short term investments are composed of three accounts: Account 121 Account 128 Account 129 Short term investment Other short term investment Provision for short term investment

Group 13 Receivables are composed of five accounts: Account 131 Account 133 Account 136 Account 138 Account 139 Accounts receivable trade VAT deductible Inter-company receivable Other receivable Provision for doubtful debtsTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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Group 14 Advances are composed of three accounts: Account 141 Account 142 Account 144 Advances Prepaid expenses Short term deposits

Group 15 Inventory is composed of nine accounts: Account 151 Account 152 Account 153 Account 154 Account 155 Account 156 Account 157 Account 158 Account 159 Goods in transit Raw materials Tools and supplies Work in progress Finished goods Merchandise inventory Goods on consignment Goods in bonded warehouse Provision for obsolete stock

Group 16 Expenditure from subsidies of State Budget is composed of one account: Account 161 Expenditure from subsidies of State Budget


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC GROUP 11 CASH The cash account records both the balance and movements of cash of the entity including: cash on hand, cash in banks and cash in transit. ACCOUNT MUST COMPLY WITH THE FOLLOWING REGULATIONS 1. Cash must be accounted for in VND, except for being authorized to use another common currency. 2. For entities which enter into foreign currency transaction, the foreign currency must be converted into VND using the exchange rate at the date of transaction either the actual exchange rate or the average inter-bank exchange rate ruling on the foreign currency market exchange stipulated by the State Bank of Vietnam at the date of transaction for recording. If the entities buy foreign currency for cash on hand or to deposit at the banks or to settle payment by using VND, the foreign currency must be converted into VND using either buying exchange rate or exchange rate at the date of payment. The entities should record in the those foreign currencies into VND in the credit side of accounts 1112, 1122 at the stipulated exchange rates on account 1112, 1122 using one of following methods: average cost; first in first out; last in - first out; actual cost foreign currency is treated as a special product . converted Foreign currency transaction needs to be converted into VND and also recorded in original currency individually. Differences due to changes in the exchange rate are to be recorded in financial income/ expenses account applying in construction stage and also for enterprise which is operating in construction or account 413 applying for enterprise in pre-operating construction construction stage . The period end balances of foreign currency cash accounts are to be retranslated at the average inter-bank foreign currency rates stipulated by the State Bank of Vietnam as at the balance sheet date. Foreign currencies are also recorded individually in account 007 recorded Off balance sheet accounts . Multi-foreign currencies

3. Gold, silver, precious metals and gemstones may be recorded in the cash account only for the entities that are not in the business of dealing dealing/trading in gold, silver, precious metals and gemstones. A company should maintain detailed records of gold, silver and gemstones and for each item the quantity, weight, quality and value should be maintained. Gold, silver, precious metals and gemstones should be recorded at market price billing price or purchase price . One of four inventory methods may be applied when gold, silver, precious metals and gemstones are sold. Group 11 - Cash is composed of three accounts: - Account 111- Cash on hand - Account 112 Cash in bank - Account 113 Cash in transit


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC ACCOUNT 111 CASH ON HAND This account records the cash receipts, cash payments and cash balance of the entity including: cash on hand in VND and foreign currencies, gold, silver, precious metals and gemstones. THIS ACCOUNT MUST COMPLY WITH THE FOLLOWING REGULATIONS 1. Only records cash receipts and cash payments of cash on hand and foreign currencies on hand. Receipts are being deposited directly into the bank not through the safe of the entity should not be recorded in debit side of account 111 Cash on hand . Such amounts should be debited to account 113 Cash in transit . 2. Other cash deposits from other entities and pe personal mortgages and collateral must be managed and recorded in the same way as assets of the entity. 3. Upon cash receipts or payments, accountant must issue the official receipt or payment and voucher with signature of receiver, payee and authorized person according to relevant regulations on supporting documents. In special cases, approval for transferring or receiving must be attached. maintaining 4. The cash accountant is responsible for maintaining a cash book to record daily cash receipts receipts and cash disbursements, foreign currency receipts and disbursement in the order of occurrence so that the balance of cash on hand must be calculated at any point in time. 5. The cashier is responsible for managing and controlling cash in and cash out. The cashier compare must perform a cash count on a daily basis and compare the results of the count to the balance per cash book and cash ledger. Any differences must be investigated for reasons by the cash must accountant and cashier and a solution is proposed to resolve the differences. proposed 6. For entities which enter into foreign currency transaction, the foreign currency must be converted into VND using the exchange rate at the date of transaction either the actual exchange rate or the average inter-bank exchange rate ruling on the foreign currency market exchange stipulated by the State Bank of Vietnam at the date of transaction for recording. If the entities buy foreign currency for cash on hand or to deposit at the banks or to settle payments by using VND, the foreign currency mu be converted into VND using either must buying exchange rate or exchange rate at the date of payment. The credit side of account 1112 should be converted into VND using the rate in account 1112 using one of following methods: average cost; first in - first out; last in - first out; actual cost foreign currency is treated as a special product . Foreign currencies are recorded individually in account 007 balance sheet accounts . Multi-foreign currencies Off

7. Gold, silver, precious metals and gemstones may be recorded in the cash accounts for entities which are not in the gold, silver, value metals and gemstones trading/dealing business. For those companies in the business of dealing/trading in gold, silver, precious metals and gemstones, the receipts and dispatches are recorded as inventories. When they are used for payment purpose, they can be recorded as foreign currency.


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC STRUCTURE AND CONTENT OF ACCOUNT 111 CASH ON HAND Debit: Receipts of cash on hand, foreign currency, gold, silver, value metals and gemstones on hand at the company premises. Surplus of cash, foreign currencies, gold, silver, precious metals and gemstones following the stock count and the cash count minute. The gain on foreign exchange difference resulted from revaluation of foreign currencies at the end of period foreign currencies on hand .

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Credit: Payment of cash on hand, foreign currency, gold, silver, precious metals and gemstones on gold, hand at the company premises. Shortage of cash on hand, foreign currencies, gold, silver, precious metals and gemstones on hand following the cash count and stock taking minute. The loss on foreign exchange difference resulted from revaluation of foreign currencies at the end of period foreign currencies on hand .

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Debit balance: Cash on hand, foreign currency, gold, silver, precious metals and gemstones on hand at the premises.

Account 111 has three sub-accounts: Account 1111 Cash in VND: to record the receipts, payments and balance of cash on hand in VND including bank notes at the company's premises. Account 1112 - Cash in foreign currencies: to record the receipts, payments and balance of cash in foreign currencies at the company's premises at equivalent VND Account 1113 Gold, silver, precious metals and gemstones: to record the issued in/out and balance of gold, silver, precious metals and gemstones. MAJOR TRANSACTIONS 1. Receipts cash from the sale of goods and rendering of services: If goods and services are subject to subtraction method VATand the entity pays VAT in subtraction method, the accountant records receipts from sale of goods and rendering of services at price excluding VAT: Dr. 111 Cash on hand total receipts Cr. 3331 VAT payable 33311 Cr. 511 Sales selling price excluding VAT Cr. 512 Inter-company sales selling price excluding VATTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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If goods and services are not subject to VAT or subject to VAT using direct method, the accountant records receipts from sale of goods and rendering of services at total receipts: Dr. 111 Cash on hand Cr. 511 Sales total receipts Cr. 512 Inter-company sales total receipts

2. Cash receipts from State Budget in term of cash allowances or grants: Dr. 111 Cash on hand Cr. 333 Taxes and statutory obligations 3339 3. Cash receipts from other financial activities, other incomes which are subject to subtraction method VAT and the entity pays VAT in subtrac subtraction method for example receipts of interest from short term investment, long term investment, receipts from disposal and transfer of fixed assets : Dr. 111 Cash on hand total receipts Cr. 3331 VAT payable 33311 Cr. 515 - Financial incomes the receipts excluding VAT Cr. 711 Other incomes the receipts excluding VAT 4. Cash receipts from financial activities, other incomes subject to subtraction method VAT or not subject to VAT and the entity pays VAT using direct method: Dr. 111 Cash on hand Cr. 515 Financial incomes Cr. 711 Other incomes 5. Cash receipts from withdrawals from the bank accounts; from long term loans, short term loans, other in VND or foreign currencies : Dr. 111 Cash on hand 1111, 1112 Cr. 112 Cash at bank 1121, 1122 Cr. 311, 341 6. Cash collection from accounts receivable and other receivables: Dr. 111 Cash on hand 1111, 1112 Cr. 131 Accounts receivable-trade Cr. 136 Inter-company receivables Cr. 138 Other receivables 1388 Cr. 141 - Advances 7. Cash receipts from short term investments, deposits, collateral or mortgage or receipts of repayment of investment: Dr. 111 Cash on hand 1111, 1112 Cr. 121 Short-term investments Cr. 128 Other short-term investments Cr. 138 Other receivablesTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Cr. 144 Cr. 244 Cr. 228 Short-term deposits, collateral and mortgage Long term deposits Other short-term investments

8. Cash receipts of deposits, mortgages and collaterals in VND or foreign currencies from other entities: Dr. 111 Cash on hand 1111, 1112 Cr. 338 Other payables if short term deposit, collaterals Cr. 344 Long term deposits 9. Surplus of cash on hand resulting from cash count waiting for resolution: Dr. 111 Cash on hand Cr. 338 Other payable 3381 10. Cash receipts of capital contribution: Dr. 111 Cash on hand Cr. 411 Paid in capital 11. Cash on hand deposited to the bank: Dr. 112 Cash in bank Cr. 111 Cash on hand 12. Purchases of short-term and long-term securities in cash or investment in subsidiaries, associates or joint ventures by cash: Dr. 121 Short-term investments Dr. 221 Long term investments Dr. 222 Shares in joint ventures Dr. 223 Investment in associates Dr. 228 Other long term investments Cr. 111 Cash on hand 13. Deposit, collateral or mortgage in other entities by cash: Dr. 144 Short term deposits, collaterals and mortgage Dr. 244 Long term deposits Cr. 111 Cash on hand 14. Cash payments for fixed assets acquisition for immediate uses: Acquiring fixed assets using in producing goods and services which are subject to subtraction method VAT: Dr. 211 Tangible assets purchased price excluding VAT Dr. 213 Intangible assets purchased price excluding VAT Dr. 133 VAT deductible 1332 Cr. 111 Cash on hand


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Acquiring fixed assets used for production of goods and services which are subject to VAT using direct method; or not subject to VAT; or for administration activities, projects funded by State Budget; or in cultural and welfare activities funded by bonus and welfare fund: Dr. 211, 213 total payment Cr. 111 Cash on hand total payment If the fixed assets acquired by fixed assets fund or investment and development fund are used for production, the accountant records an increase in capital contribution. At the finalization of the fixed assets funds, the record should be: Dr. 441, 414 Cr. 411 Paid in capital 15. Cash payment for construction costs, large repair or purchase of fixed assets that needs installation process before being used in the production of goods and services which are subject to subtraction method VAT: Dr. 241 Construction in progress Dr. 133 VAT deductible 1332 Cr. 111 Cash on hand 16. Cash payments for purchases of materials, tools and supplies and merchandises using in production of goods and services which are subject to subtraction method VAT perpetual subject inventory method : Dr. 152 Raw materials Dr. 153 Tools and supplies Dr. 156 Merchandise goods Purchase price excluding VAT Dr. 157 Goods on consignment Dr. 133 VAT deductible 1331 Cr. 111 Cash on hand materials 17. Cash payments for purchases of supplies, materials and merchandises using in production of goods and services which are subject to subtraction method VAT and periodic inventory subtraction method: Dr. 611 Purchases 6111, 6112 Dr. 133 VAT deductible 1331 Cr. 111 Cash on hand 18. Cash payment to creditors: Dr. 311 Short term loans Dr. 315 Current portion of long term loans Dr. 331 Trade payable Dr. 333 Tax and statutory obligations Dr. 334 Payable to employees Dr. 336 Inter-company payable Dr. 338 Other payable Cr. 111 Cash on hand


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC 19. Cash payment for materials purchased for immediate use in production of goods and services which are subject to subtraction method VAT of which the entity pays VAT in subtraction method: Dr. 621, 623, 627, 641, 642 Dr. 133 VAT deductible 1331 Cr. 111 Cash on hand 20. Cash payment for financial and other activities: Dr. 635, 811 Dr. 133 VAT deductible if any Cr. 111 Cash on hand 21. Shortage of cash as result of cash count waiting for resolution: Dr. 138 Other receivable 1381 Cr. 111 Cash on hand 22. Transactions relating to foreign currencies: 22.1 Recording cash on hand transactions in foreign currency of production and trading period foreign applying for production and trading entities under construction stage a. Cash purchase of goods and services in foreign currencies: If foreign exchange loss arisen as result of external purchase of merchandise, goods, fixed assets and services: Dr. 151, 152, 153, 156, 157, 211, 213, 241, 623, 627, 641, 642, 133 using exchange rate at the date of transaction Dr. 635 Financial expenses loss on foreign exchange difference Cr. 111 1112 using the entity s current exchange rate At the same time, single entry is credited to account 007 balance sheet accounts . Multi-fo Multi-foreign currencies Off

If foreign exchange gains arisen as result of external purchase of merchandise, goods, fixed assets and services: Dr. 151, 152, 153, 156, 157, 211, 213, 241, 623, 627, 641, 642, 13 using exchange rate at the date of transaction Cr. 111 1112 using the entity s current exchange rate Cr. 515 Financial incomes gain on foreign exchange difference At the same time, single entry is credited to account 007 balance sheet accounts . Multi-foreign currencies Off

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If the entities receive materials, merchandises, fixed assets from suppliers; or borrow short term or long term loans, long term liabilities, or inter-company payable etc in foreign currencies, by using the exchange rate at the date of transaction, the record should be:


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Dr. Related accounts using exchange rate at the date of transaction Cr. 331, 311, 341, 342, 336... using exchange rate at the date of transaction b. Cash payment to creditors trade payable, short-term loans, long term loans, long term liabilities, inter-company payable etc. If foreign exchange loss arisen when making cash payment to creditors: Dr. 311, 315, 331, 336, 341, 342 using the entity s current exchange rate Dr. 635 Financial expenses loss on foreign exchange difference Cr. 111 1112 using the entity s current exchange rate At the same time, single entry is credited to account 007 balance sheet accounts . Multi-foreign currencies Off

en If foreign exchange gain arisen when making cash payment to creditors: Dr. 311, 315, 331, 336, 341, 342 using the entity s current exchange rate Cr. 515 Financial income gain on foreign exchange difference Cr. 111 1112 using the entity s current exchange rate At the same time, single entry is credited to account 007 balance sheet accounts . Multi-fo Multi-foreign currencies Off

c. Cash receipts from sales, other incomes in foreign currencies: Dr. 111 1112 actual exchange rate or average inter-bank exchange rate stipulated by SBV Cr. 511, 515, 711... actual exchange rate or average inter-bank exchange rate stipulated by SBV debited At the same time, single entry is debited to account 007 balance sheet accounts . Multi-fo Multi-foreign currencies Off

d. Cash receipts from receivables in foreign currencies accounts receivable, inter-company receivables etc If foreign exchange loss arisen from the receipts from receivables: Dr. 111 1112 using exchange rate at the date of transaction Dr. 635 Financial expenses loss on foreign exchange difference Cr. 131, 136, 138 using the entity s current exchange rate At the same time, single entry is debited to account 007 balance sheet accounts . Multi-foreign currencies Off

22.2 Cash transactions during the period relating to foreign currencies in construction investment period pre-operating stage : a. External purchase of materials, services, fixed assets, equipments and construction and installation volume from suppliers or contractors: Foreign exchange loss resulted from payment to suppliers and contractors in acquiringTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC materials, services, fixed assets, equipments and construction and installation volume: Dr. 151, 152, 211, 213, 241 using exchange rate at the date of transaction Dr. 413 Foreign currencies difference 4312 loss on foreign exchange difference Cr. 111 1112 using the entity s current exchange rate At the same time, single entry is credited to account 007 balance sheet accounts . Multi-foreign currencies Off

Foreign exchange gain resulted from payment to suppliers and contractors in acquiring materials, services, fixed assets, equipments and construction and installation volume: Dr. 151, 152, 211, 213, 241 using exchange rate at the date of transaction Cr. 111 1112 using the entity s current exchange rate Cr. 413 Foreign currencies difference 4132 gain on foreign exchange difference At the same time, single entry is credited to account 007 balance sheet accounts . Multi-fo Multi-foreign currencies Off

currencies b. Cash payment to creditors in foreign currencies trade payable, long term payable, intercompany payable if any : Foreign exchange loss resulted from payment to creditors: Dr. 311, 315, 331, 336, 341, 342 using the entity s current exchange rate Dr. 413 Foreign currencies difference 4132 gain on foreign exchange difference Cr. 111 1112 using the entity s current exchange rate At the same time, single entry is credited to account 007 balance sheet accounts . Foreign exchange gain resulted from payment to creditors: Dr. 311, 315, 331, 336, 341, 342 using the entity s current exchange rate Cr. 111 1112 using the entity s current exchange rate Cr. 413 - Foreign currencies difference 4132 Gain on foreign exchange difference At the same time, single entry is credited to account 007 balance sheet accounts . Multi-foreign currencies Off Multi-fo Multi-foreign currencies Off

c. Annually, realized foreign exchange difference arisen in construction investment period preoperating stage are accumulated in account 413 Foreign exchange difference 4132 until the construction is completed and brought in use. The foreign exchange difference is treated in accordance with the current regulations refers to guidance of account 413 Foreign exchange difference . 22.3. Accounting for foreign currencies difference due to revaluation of cash balance in foreign currencies at the end of fiscal year. At the end of fiscal year, the entity must revalue the balance of account 111 Cash on hand in foreign currency using the exchange rate of the fiscal year end date the average inter-bank exchange rate ruling by the SBV at the closing date of the financial statements . ThisTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC revaluation may result in foreign currencies difference. The entity must keep track details of the foreign currencies difference arising from revaluation foreign currencies in construction investment period pre-operating stage account 4132 and in normal business operation stage account 4131 . If foreign exchange gains made: Dr. 111 1112 Cr. 413 Foreign exchange difference 4131, 4132 If foreign exchange loss incurred: Dr. 413 Foreign exchange difference 4131, 4132 Cr. 111 1112


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC ACCOUNT 112 CASH IN BANK This account records the balance and movement of cash in banks.

1. Recording in account 112 Cash in bank is based on the following documents: debit notes, credit notes, copies of deposit acknowledgements and enclosed original evidence from the bank authorized payment and receipt vouchers, bank transfers and bank notified cheques, etc. . 2. When receiving bank documents, accountant must check and compare these with the original e evidences. If there is a difference between the account balance per the bank reconciliation and the amount omen the original evidence, the accountant should inform the bank in order to ensure the matter is investigated and resolved with mutual agreement. At the end of the ed month, should resolutions of the matter still be outstanding, the balance per the bank acknow documents such as debit notes, credit notes or copies of deposit acknowledgement should be recorded. The difference is debited to account 138 Other receivable 1388 if the balance per accounting records is greater than the bank documents ; or credited to account 338 Other payable 3388 if the balance per accounting book is less than the bank documents . The book difference should be followed up for examining, reconciling and investigating for resolution in the next month. 3. For entities which have related organizations, departments without using separate accounting system, separate bank accounts can be opened to facilitate the payment and receipt transactions process. The accountant should keep a sub-ledger for each account for each keep currency in VND or foreign currencies . detailed 4. Each bank account should have a separate detailed bank book for ease of reconciliations. Cash deposited into bank in foreign currencies is converted into VND using the actual exchange rate or the average inter-bank exchange rate ruling by the State Bank of Vietnam at the date of transaction the average inter-bank exchange rate of SBV . inter-bank Buying foreign currency to deposit into bank account should be recorded at actual exchange accounts rate. Withdrawing foreign currencies from the bank should be converted into VND using the exchange rate which is being used in the sub-ledger of account 1122 applying one of following methods: Average cost, First in - first out, Last in - first out, Actual cost. 5. At the stage of production and business applying for both entity in construction stage and enterprise operating in construction industry , the transactions relating to foreign currency difference arisen from foreign currency deposits into bank accounts is credited in account 515 Financial income foreign exchange gain or debited in account 635 Financial expenses foreign exchange loss . 6. In case there is foreign exchange difference resulted from the transactions in foreign currencies occurred in construction investment period pre-operating stage , the difference should be recorded in account 413 Foreign exchange difference 4132 .Translation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC STRUCTURE AND CONTENT OF ACCOUNT 112 - CASH IN BANK Debit: Cash in VND, in foreign currencies, gold, silver, precious metals and gemstones deposited into the banks. Gain on foreign exchange difference resulted from revaluation of the bank balance in foreign currencies at the end of the period.

-

Credit: Cash in VND, in foreign currencies, gold, silver, precious metals and gemstones withdrawn from the banks. Loss on foreign exchange difference resulted from revaluation of the bank balance in foreign currencies at the end of the period.

-

Debit balance: Cash in VND, in foreign currencies, gold, silver, precious metals and gemstones in the bank. silver,

Account 1121 - VND: to record VND deposited in the bank. 1122 - Foreign currencies: to record VND equivalent amount of foreign currencies deposited in the bank. Account 1123 Gold, silver, precious metals, gemstones: to record the value of gold, silver, precious metals and gemstones deposited in the bank. MAJOR TRANSACTIONS 1. Deposit cash on hand into the bank: Dr. 112 - Cash in bank Cr. 111 - Cash on hand 2. Receipt of credit notes from bank advising cash in transit deposited to the bank account of the entity: Dr. 112 - Cash in bank Cr. 113 - Cash in transit 3. Receipt of deposit from customer or collection of receivables made through bank account. Based on credit notes, the accountant records: Dr. 112 - Cash in bank Cr. 131 - Accounts receivable 4. Collection of deposits, collaterals through bank account:Translation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Dr. 112 - Cash in bank Cr. 144 - Short term deposits, mortgages and collateral Cr. 244 Long term deposits 5. Receipt of capital contribution, shares in join ventures from investors through bank account: Dr. 112 - Cash in bank Cr. 411 Paid in capital

112 Cash in bank Cr. 344 Long term deposits Cr. 338 Other payable 3388

Cr. 121 - Short term investments at historical cost Cr. 128 Other investments Cr. 515 Financial income interest income Cr. 3331 VAT payables 33311

using subtraction method VAT, revenues from sales of goods and rendering of services or income generated from other activities are subject to subtraction method other VAT. Receipts of the sales through bank account, the accountant records: through Dr. 112 Cash in bank total receipts Cr. 511 Sales selling price excluding VAT Cr. 512 Inter-company sales selling price excluding VAT Cr. 515 Financial income selling price excluding VAT Cr. 711 Other income income excluding VAT Cr. 3331 VAT payable 33311 sales 8.2 Receipt through the bank of revenues from sal of goods and rendering of services, financial activities and other activities which are not subject to VAT or subject to VAT using direct method: Dr. 112 Cash in bank Cr. 511 Sales total receipts Cr. 512 Inter-company sales total receipts Cr. 515 Financial income Cr. 711 Other income 9. Receipt of interest income from the bank: Dr. 112 Cash in bank Cr. 515 Financial income


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Cr. 112

Cash in bank

Cr. 112 12.

Cash in bank for short term investment:

Cr. 112 - Cash in bank

-

Inventories are recorded using perpetual method: corded

Cr. 112 -

Cash in bank

Inventories are recorded using periodic method: recorded

Cr. 112

Cash in bank

Long term investments Shares in joint ventures Investment in associates Other long term investments Construction in progress Dr. 133 VAT deductible 1332 if any Cr. 112 Cash in bank

Dr. 221 Dr. 222 Dr. 223 Dr. 228

Dr. 311 - Short term loansTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Dr. 315 Current portion of long term loans Dr. 331 Account payables Dr. 333 - Taxes and statutory obligations Dr. 336 Inter-company payable Dr. 338 - Other payable Dr. 341 Long term loans Dr. 342 Long term liabilities Cr. 112 - Cash in bank

Dr. 411 Paid in capital Dr. 421 Undistributed earnings Dr. 414, 415, 418 Cr. 112 Cash in bank 17. Payment of sales discounts, sales returns, sales allowances which are subject to subtraction method VAT and the entity paid subtraction method VAT by bank transfer: Dr. 521 Sales discounts Dr. 531 Sales returns Dr. 532 Sales allowances Dr. 3331 VAT payable 33311 Cr. 112 Cash in bank 18. Payments for machinery expenses, factory overhead, selling expenses, general and factory administration expenses, financial expenses, and other expenses which are subject to subtraction method VAT by bank transfer: Dr. 623 Machinery expenses Dr. 627 - Factory overhead expenses Dr. 641 - Selling expenses Dr. 642 - General and administration expenses Dr. 635 - Financial expenses expenses Dr. Dr. 133 VAT deductible 1331 Cr. 112 - Cash in bank 19. Transactions relating to foreign currencies: 19.1 Recording foreign currency transactions arisen in the period related to the business activities, including construction activities of the production and business entity a. Purchase materials, tools and supplies, merchandises, fixed assets, services in foreign currencies through bank: If foreign exchange loss resulted from external purchase of materials, merchandises, fixed assets and services: Dr. 151, 152, 153, 156, 211, 213, 241, 623, 627, 642, 641, 133 using exchange rate at the date of transaction Dr. 635 Financial expenses loss on foreign exchange differenceTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Cr. 112 Cash in bank using the entity s current exchange rate Multi-foreign currencies Off

At the same time, single entry is credited to account 007 balance sheet accounts . -

If foreign exchange gain resulted from external purchase of materials, merchandises, fixed assets and services: Dr. 151, 52, 153, 156, 211, 213, 241, 623, 627, 641, 642, 133 using exchange rate at the date of transaction Cr. 112 1122 using the entity s current exchange rate Cr. 515 Financial income gain on foreign exchange difference At the same time, single entry is credited to account 007 balance sheet accounts Multi-fo Multi-foreign currencies Off

-

Payment to creditors trade payable, short term loans, long term loans, long term liabilities, inter-company payable etc. If foreign exchange loss arisen from payment to creditors: Dr. 311, 315, 331, 336, 341, 342 using the entity s current exchange rate Dr. 635 Financial expenses loss on foreign exchange difference Cr. 112 1122 using the entity s current exchange rate At the same time, single entry is credited to account 007 balance sheet accounts . If foreign exchange gains arisen from payment to creditors: Dr. 311, 315, 331, 336, 341, 342 using the entity s current exchange rate Dr. 515 Financial income gain on foreign exchange difference Cr. 112 1122 using the entity s current exchange rate At the same time, single entry is credited to account 007 Off balance sheet accounts . Multi-foreign currencies Off Multi-foreign

b. Receipts of foreign currencies from sales and other income: Dr. 112 1122 actual rate or average inter-bank exchange rate Cr. 511, 515, 711 actual rate or average inter-bank exchange rate At the same time, single entry is debited to account 007 balance sheet accounts . c. Collection of receivables in foreign currencies receivable, etc. Loss on foreign exchange difference: Dr. 112 1122 using exchange rate at the date of transaction Dr. 635 Financial expenses loss on foreign exchange difference Cr. 131, 136, 138 using the entity s current exchange rateTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

Multi-foreign currencies Off

accounts receivable, inter-company

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At the same time, single entry is debited to account 007 balance sheet accounts . Gain on foreign exchange difference:


Dr. 112 1122 using exchange rate at the date of transaction Cr. 515 Financial income gain on foreign exchange difference Cr. 131, 136, 138 using the entity s current exchange rate At the same time, single entry is debited to account 007 balance sheet accounts . Multi-foreign currencies Off

reign 19.2. Accounting transactions relating to foreign currencies of construction activities (preoperating stage) a. Purchase of merchandises, services, fixed assets, equipment construction amount, installation which are passed from sellers or constructors: payment Loss on foreign exchange difference in payment transactions in foreign currencies: Dr. 151, 152, 211, 213, 241 using exchange rate at the date of transaction Dr. 413 Foreign currencies difference 4312 loss on foreign exchange difference Cr. 112 1122 using the entity s current exchange rate At the same time, single entry is credited to account 007 - Multi-foreign currencies Off balance sheet accounts . payment Gain on foreign exchange difference in payment transaction in foreign currencies: Dr. 151, 152, 211, 213, 241 using exchange rate at the date of transaction Cr. 112 1122 using the entity s current exchange rate Cr. 413 Foreign currencies difference 4132 gain on foreign exchange difference At the same time, single entry is credited to account 007 - Multi-foreign currencies Off balance sheet accounts . b. Payment to creditors account payables, long term loans, inter-company payable if any , etc. in foreign currencies Loss on foreign exchange difference: Dr. 311, 315, 331, 336, 341, 342 using the entity s current exchange rate Dr. 413 Foreign currencies difference 4132 gain on foreign exchange difference Cr. 112 1122 using the entity s current exchange rate At the same time, single entry is credited to account 007 balance sheet accounts . Gain on foreign exchange difference: Dr. 311, 315, 331, 336, 341, 342 using the entity s current exchange rate Cr. 112 1122 using the entity s current exchange rateTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Cr. 413 - Foreign currencies difference 4132 gain on foreign exchange difference At the same time, singer entry is credited to account 007 - Multi-foreign currencies Off balance sheet accounts . c. Annually realized foreign exchange difference arisen in capital construction stage preoperating stage are accumulated in account 413 Foreign exchange difference 4132 until the construction is completed and put in use. The foreign exchange difference is treated according to the current regulations refers to instruction of account 413 Foreign exchange difference . 19.3 Accounting for foreign currencies difference due to revaluation of cash balance in foreign currencies at the end of fiscal year At the end of fiscal year, the enterprise must revalue the balance of account 112 Cash in bank in foreign currency using the exchange rate of the fiscal year end date the average inter-bank exchange rate ruling by the SBV at the closing date of the financial statements . the This revaluation may arise foreign exchange difference. The enterprise must keep track in difference. details the foreign currencies difference arising from revaluation foreign currencies in capital arising construction stage pre-operating in account 4132 and in business operation stage in account 4131. Gain on foreign exchange difference: Dr. 112 1122 Cr. 413 Foreign exchange difference 4131, 4132 . Loss on foreign exchange difference: Dr. 413 Foreign exchange difference 4131, 4132 Cr. 112 1122


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC ACCOUNT 113 CASH IN TRANSIT This account records cash transferred to the bank, the State treasury for which the bank/State treasury credit notes have not been received or cash payment to other enterprise from bank account with completeness of procedures for transferring but has not received debit notes or bank statement. Cash in transit includes VND and foreign currency in the following cases: Receipts in cash or by cheque deposited directly to the bank account. Transfer through the post office to pay other enterprise. Cash receipts from sales are being used to pay tax at the same time cash transactions between three parties: the enterprise, the buyers and the State Treasury .

ACCOUNT STRUCTURE AND CONTENTS OF ACCOUNT 113 - CASH IN TRANSIT Debit: Cash in VND, foreign currency or by cheque is deposited into the bank or transferred into the bank by the post office for which the bank credit notes have not been received. Gain on foreign exchange difference resulted from revaluation of cash balance in foreign currencies in transit at the end of the period.

-

Credit: . Debit balance Cash in transit at the end of the period. 113 sub Cash is transferred to account 112 Cash Cash in bank or related accounts.

Account 1131 VND: to record VND in transit. Account 1132 Foreign currency: to record foreign currencies in transit. MAJOR TRANSACTIONS 1. Cash receipts from sales, receivable or other income in cash or by cheque deposited directly to the bank not through company s premises for which the bank advice has not been received confirming the transactions: Dr. 113 Cash in transit 1131, 1132 Cr. 131 Accounts receivableTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Cr. 3331 Cr. 511 Cr. 512 Cr. 515 Cr. 711 VAT payable 33311 if any Sales Inter-company sales Financial income Other income

2. Deposit cash on hand into bank for which bank advice confirming deposit is not yet received: Dr. 113 Cash in transit 1131, 1132 Cr. 111 Cash on hand 1111, 1112 3. Payment to creditors from cash in bank for which bank advice confirming payment is not yet received: Dr. 113 - Cash in transit 1131, 1132 Cr. 112 - Cash in bank 1121, 1122 4. Cheques received from customer and deposited to bank for which bank advice confirming the transaction not yet received: Dr. 113 - Cash in transit 1131, 1132 Cr. 131 - Accounts receivable 5. Receipt credit notes of bank confirming cash deposited to bank account: Dr. 112 - Cash in bank 1121, 1122 Cr. 113 - Cash in transit 1131, 1132 confirming 6. Receipt debit notes of bank confirming cash payment for suppliers: Dr. 331 - Accounts payable-trade Cr. 113 - Cash in transit 1131, 1132 7. At the end of the period, the enterprise must revalue cash balance of foreign currencies in aver account 113 Cash in transit based on the average inter-bank exchange rate ruling by the State Bank of Vietnam: Gain on foreign exchange difference: Dr. 113 Cash in transit 1132 Cr. 413 Foreign exchange difference Loss on foreign exchange difference: Dr. 413 Foreign exchange difference Cr. 113 Cash in transit 1132


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC ACCOUNT 121 SHORT TERM INVESTMENTS This account records investments which will mature or be sold within one year. Short term investments include: Shares which trade on the stock market; Bonds, securities, promissory notes: company bonds, government bonds; Other shares.

THIS ACCOUNT MUST COMPLY WITH THE FOLLOWING REGULATIONS: 1. Short term investments should be recorded at their actual cost historical cost . This cost their includes: purchase price plus other expenses if any such as broker's expenses, taxes, bank charges. 2. Short term investments include long term investments which are to be sold or matured within investments a year. price 3. At the end of each fiscal year, if the market price of a short term investment has been lower than its historical cost, a provision for this decrease should be made. 4. The accountant should maintain details with regards to each individual investment. The investment invest details which should be maintained are: the investment categories, investment partner, the par value and market value of the stock. STRUCTURE AND CONTENTS OF ACCOUNT 121 - SHORT TERM INVESTMENTS Debit: The value of short term investments purchased. Credit: The value of the short-term investments which have been sold, matured or liquidated. Debit balance Total value of short-term investment held by the entity. Account No. Account No. 1211 has two sub-accounts Shares: to record shares being purchased and sold.

Account No. 1212 Bonds, bills, promissory notes: to record bonds, bills, promissory notes being purchased and sold. MAJOR TRANSACTIONSTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC 1. Purchase short term investments based on the actual price i.e. including purchase price, brokerage expenses, taxes, bank charge, etc. : Dr. 121 Short term investments Cr. 331- Trade payable Cr. 111 Cash on hand Cr. 112 Cash in bank Cr. 141 Advances Cr. 144 Short term deposits 2. Periodically calculating earned interests from bonds and receipts: a Earned interest is reinvested into bonds, bills i.e. money is not through the entity s premise Dr. 121 Short term investment Cr. 515 Financial income b Interests is received in cash: Dr. 111, 112 Cr. 515 Financial income c Earned interests including accumulated interests generated before being purchased by the interests company should be recorded separately. Interests generated since being purchased by the company is recorded in financial income. Accumulated interests generated before being Accumulated purchased by the company is deducted against the value of the investment. against Dr. 111, 112 Total earned interest Cr. 121 Short term investments accumulated interests generated before being purchased by the company Cr. 515 Financial income interests generated since being purchased by the company generated 3. Periodically, receipts of dividends if any : Dr. 111, 112 Dr. 138 Other receivables i.e. money is not received yet Cr. 515 Financial income 4. Record sales of short term investments based on selling price: a Gain: Dr. 111, 112 total receipts Dr. 131 Account receivable total receipts Cr. 121 Short term investment historical price Cr. 515 Financial income difference of selling price and historical price


37


b

Loss: Dr. 111, 121 or 131 total receipts Dr. 635 Financial expenses difference of selling price and historical cost Cr. 121 Short term investment historical cost

c

Expenses arisen from selling securities: Dr. 635 Financial expenses Cr. 111, 112

5. Collecting or liquidating of matured short term investments: Dr. 111, 112, or 131 Cr. 121 Short term investment historical cost Cr. 515 Financial income


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC ACCOUNT 128 OTHER SHORT TERM INVESTMENTS This account records the balance and movements of other short term investments including loans and borrowings which will mature or be sold within one year. When investments are made in cash or in commodities e.g. fixed assets, raw materials, goods, etc. , the value of the commodities must be agreed by the parties. Any difference between the book value and the agreed upon value should be either debited to account 811 or credited to account 711. The accountant should maintain a sub-ledger for individual investment and loans and borrowings. STRUCTURE AND CONTENTS OF ACCOUNT 128 - OTHER SHORT TERM ACCOUNT INVESTMENTS Debit: Increase in other short term investments. Credit: Decrease in other short term investments. Debit balance: The value of the short term investments at the end of the period. Account No. has two sub-accounts

Account No. 1281 Short term deposits: to record movements and balance of short term deposits Account No. 1288 Other short term investments: to record movements and balance of other short term investments. MAJOR TRANSACTIONS 1. Short term investments paid for in cash: Dr. 128 - Other short term investments 1281, 1288 Cr. 111, 112 . 2. Short-term investments made through the contribution of raw materials, finished and merchandise goods which will be held within one year: a. If the accepted value of the materials and goods is higher than the book value: Dr. 128 Other short term investments 1288 Cr. 152 Raw materials Cr. 155 Finished goods Cr. 156 Merchandise goods Cr. 711 Other income difference of the revaluation and the book value of the materialsTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC and goods . b. If the accepted value of materials and goods is less than the book value: Dr. 128 - Other short term investments 1288 Dr. 811 Other expenses difference of the revaluation and the book value of materials and goods Cr. 152 Raw materials Cr. 155 Finished goods Cr. 156 Merchandise goods 3. Receipts of other short term investments: Dr. 111, 112, 152, 156, 211 Dr. 635 Financial expenses loss Cr. 128 - Other short term investments 1281, 1288 historical cost Cr. 515 Financial income gain


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC ACCOUNT 129 PROVISION FOR SHORT TERM INVESTMENTS This account records balance and movements of provisions for short tem investments. The provision for short term investments is used to write down the value of short tem investments when its market value is less than cost. THIS ACCOUNT MUST COMPLY WITH THE FOLLOWING REGULATIONS: 1. The provision/reversal of provision for short term investments can be made at the end of the fiscal year when the accounting records are closed for financial year end. For entities issuing the interim financial statements, provision/reverses on provision will be adjusted if there is provision/reverses significant movement in the value of the investments 2. The provision for short term investments is provided upon the difference between the net realizable value market price and the historical cost in the accounting book. If the provision period for short term investments required in this period is greater than the provision required in the increase prior period, then the difference should be an increase in the financial expenses of the period. required If the provision for short term investments required in this period is less than the provision required in the prior period, the difference should be deducted from to the financial expenses. 3. The criteria to provide provision for short term investments include: entities The securities held by the entities are invested in accordance with relevant laws and regulations. Those securities are freely traded in the market and their market prices are lower than their book value at the time of stock-taking or financial statements are issued provisions should financial not be made for securities which are not freely traded in the market .

-

4. The provision for short term investments should be made for each individual investment with a price decreased at the end of the financial year in the following formula: financial

Provision for short-term securities

=

Quantity of securities losing value at the end of the fiscal year

X

Historical cost of securities on the book

-

Market value of securities

The entity must quantify the provisions required for each individual investment that is diminuted in value and a list of provisions for diminution in value of short term investments are summarized and compared with those of prior period in order to quantify the figure to adjust in the financial expenses.


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC STRUCTURE AND CONTENTS OF ACCOUNT 129 - PROVISION FOR SHORT TERM INVESTMENTS Debit: Reversal of provisions for short term investments due to the provision required in this period is lower than the provision provided in prior period. Credit Provisions for short term investments initial provision required and the difference between provision required in this period and the provision provided in the prior period . Credit balance Current balance of provision for short term investments. MAJOR TRANSACTIONS 1. At the end of the accounting period, the accountant should provide initial provision for the accountant diminution in value of short term investments: Dr. 635 Financial expenses Cr. 129 - Provisions for short tem investments 2. At the end of the next accounting period: If the provision for short term investments required in this period is less than the provision required required in the prior period, the difference should be reversed as follows: Dr. 129 - Provisions for short tem investments. Cr. 635 Financial expenses If the provision for short term investments required in this period is greater than the provision required in the prior period, the difference should be added to financial expenses as follows: should Dr. 635 Financial expenses Cr. 129 - Provisions for short term investments


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC ACCOUNT 131 ACCOUNTS RECEIVABLE This account records the balance and movements of receivables from customers from the sales of services of the entities products, goods, This account also records the amounts receivable from contractors on construction work completed. THIS ACCOUNT MUST COMPLY WITH THE FOLLOWING REGULATIONS 1. The accounts receivable should be recorded in details for each customer, nature of the amount receivable, short term and long term receivables and for each time of receipt. Trades receivable are receivables from customers who purchase products, goods, or services and also include fixed assets and investment properties. Cash sales from sales of products, goods, investment property, fixed assets and rendering of investment services are not recorded in this account cash sales should be recorded as cash on hand, cheques, or cash in bank . Accounts receivable should be classified as collectable on time; likely unrecoverable; and collectable definitely unrecoverable to provide useful information for accountants to access bad debts or provide provide provision for bad debts and provide solutions for unrecoverable receivable. If the sales of products or goods, rendering of services, investment properties supplied to the services, customers do not comply with the terms in the economic contract, the customers might request a discount on the goods/services or return them to the entity STRUCTURE AND CONTENTS OF ACCOUNT 131 - ACCOUNTS RECEIVABLE ACCOUNT Debit: Amounts receivable from customers on the sale of products, goods, investment properties, fixed assets and rendering of services. Excess receipts returned to customers.

-

Credit: Receipt of payment from customers. Receipt of advance, deposit from customers. Price discounts allowed due to complaints by customers on the basis that the supplied goods do not comply with the sales agreement. Sales returned by the client including or excluding VAT . Sales discounts and trade discount.

-


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Debit balance: Amounts receivable from customers. Accounts receivable may have credit balances. These credit balances represent deposits or excess amounts received from customers. The debit and credit balances of each individual customer should be presented separately in assets or liabilities in the balance sheet respectively. MAJOR TRANSACTIONS 1. Recognize the sale of products, goods, investment properties and rendering of services: With respect to goods, services and investment properties which are subject to subtraction on method VAT and the entity pays subtraction method VAT. Sales are recorded at VATexclusive price as follows: Dr. 131 Accounts receivable total amount Cr. 511 Sales Selling price excluding VAT 5111, 5112, 5113, 5117 excluding Cr. 3331 VAT payable 33311 With respect to goods, services and investment properties which are not subject to VAT or subject to subtraction method VAT, sales are recorded at total amount: Dr. 131 Accounts receivable Cr. 511 Sales Total amount 5111, 5112, 5113, 5117 Record goods returned from customers With respect to goods and services are subject to subtraction method VAT and the entity pays subtraction method VAT

Cr. 131 Accounts receivable Cr. 111, 112 With respect to goods which are not subject to VAT or subject to credit VAT in direct method

Cr. 131

Accounts receivable

If the goods/services supplied to the customer do not comply with the economic contract, they may be discounted on the price. If the customers have not paid for the receivables, based on documents which confirmed the discount, the accountant can write down receivable to discounted amount as follows

Cr. 131

Accounts receivable discount amountTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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In the case, goods and services are not subject to VAT or subject to direct subtraction method VATor subject to indirect subtraction method VAT while entity pays VAT using the direct method

Cr. 131

Accounts receivable

Cash receipts from sale of goods, products, rendering of services and sales of investment properties including interest charged on receivable, if any :

Cr. 131 Cr. 515

Accounts receivable Financial income interest income

Cr. 131

Accounts receivable

Cr. 131

Accounts receivable

7. Record deposits received from the customers from sale contracts or service contracts: Dr. 111, 112 Cr. 131 - Accounts receivable 8. Accounting treatment for contractors for receivables from construction contracts: 8.1 If the term of the construction contract stipulates that the contractor is allowed to make payments according to an agreed process billing, the construction contract performance result is reliably estimated, by referencing to the completed volume determined by the contractor regardless of whether invoices according to the set schedule have been billed, the accountant records the following: Dr. 337 Construction contractor payables based on agreed progress billing Cr. 511 Sales Based on invoice issued according the agreed progress billing, the accountant records: Dr. 131 Accounts receivable Cr. 337 - Construction contractor payables based on agreed progress billing Cr. 3331 VAT payable 33311 8.2 If the construction contract stipulates that the contractor is allowed to make payments according to the value of work volume performed, the contract performance result is reliablyTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC determined and certified by customers, the accountant should issue invoice based on the completed work volume certified by the customers in the period and records based on the issued invoice: Dr. 131 Accounts receivable Cr. 3331 VAT payable 33311 Cr. 511 Sales 8.3 Bonuses received from customers that are additionally paid to contractors due to completion of contracts beyond contractual requirements: Dr. 131 Accounts receivable Cr. 3331 VAT payable 33311 Cr. 511 Sales 8.4 Additional receivables from the customer or other parties to offset extra costs which are not covered in the contractual price e.g. delay caused by the customers, errors in technical or designing specifications, and disputes over changes in the contract performance : Dr. 131 Accounts receivable Cr. 3331 VAT payable 33311 Cr. 511 Sales 8.5 When receiving cash payments for completed work or cash deposit from customer, the accountant records: Dr. 111, 112 Cr. 131 Accounts receivable 9. Recording receivables transactions of an import consignee: 9.1 When receipt of deposits from consignor to open LC: Dr. 111, 112 Cr. 131 Accounts receivable details by consignors 9.2 When transferring money or using bank loans to open LC payment made in Letter of Credit , based on the supporting documents, record as: Dr. 144 Short term deposits, mortgage and collaterals Cr. 111, 112, 311 9.3 When importing materials, equipments and products, the entity needs to reflect the followings: If consignee pays the seller total amount of mechandise on behalf of the consignor, based on related documents, the accountant records: Dr. 151 Goods in transit if the goods are in transit Dr. 156 Merchandise goods if the goods have arrived to warehouse Cr. 331 Trade payable to each seller details


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC If the merchandises received and transfered directly to the consignor without going through the consignee s premises, the accountant records: Dr. 331 Trade payable details by consignor Cr. 331- Trade payable details by sellers If import tax is paid on behalf of the consignor, based on related documents, the accountant records: Dr. 151 Goods in transit Dr. 156 Merchandise goods Cr. 3333 Import, export tax payable taxes by details In the case, the merchandises received and transfered directly to the consignor without going through the consignee s premises: Dr. 331 Trade payable details by consignor Cr. 3333 - Import, export tax payable details by taxes If import VAT is paid on behalf of the consignor, based on related documents, record as: Dr. 151 Goods in transit Dr. 156 Mechandise goods Cr. 3331 VAT payable 33312 In the case, the merchandises received and transfered directly to the consignor without going through the consignee s premises: Dr. 331 Trade payable details by consignors Cr. 3331 VAT payable 33312 If special consumption tax is paid on behalf of the consignor, based on related documents, the accountant records: Dr. 151 Goods in transit Dr. 156 Mechandise goods Cr. 3332 Special consumption tax payable In case the merchandises received and transfered directly to the consignor without going through the consignee s premises, the accountant records: Dr. 331 Trade payables details by consignors Cr. 3332 - Special consumption tax payable When transfering the merchandises to the consignor, based on VAT invoice and related documents, the accountant records: Dr. 131 - Accounts receivable details by consignors Cr. 156 Mechandise goods total amount inclusive tax payable Cr. 151 Goods in transit 9.4. With respect to consigment charge and VAT on the service charge, based on the VAT invoice and other related documents, the accountant records the revenue from consignment fees:Translation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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Dr. 131, 111, 112 Total amount Cr. 511 - Sales 5113 Cr. 3331 - VAT payable 9.5. With respect to surcharges paid on behalf of the consignor e.g. bank charge, customer research fees, storages, handling fees or delivery fees... , based on related documents, the accountant records: Dr. 131 - Accounts receivable details by consignor Cr. 111, 112,... 9.6. With respect to receipts from the consignor for mechandise value, import tax, import VAT, se special consumption tax if the consignee paid those taxes to the State Treasury on behalf of the consignor , and charges araising from import consignment services, the accountant records: Dr. 111, 112,... Cr. 131 - Accounts receivable details by consignor 9.7. When making payment for mechandise to the seller on behalf of consignor: Dr. 331 - Trade payable detail by sellers Cr. 112, 144,... 9.8. When making payment for import tax, VAT, special consumption tax to State Treasury on behalf of the consignor, based on related documents, the accountant records: related Dr. 3331, 3332, 3333,... Cr. 111, 112,... 9.9. In case the import consignee performs custom and tax application but the consignor pays taxes itself, the amount of taxes that are paid by the consignor should be recorded as follows: Dr. 3331, 3332, 3333,... Cr. 131 - Accounts receivable details by consignor 10. If the consignor pays seller by merchandise rather than in cash bartering transactions , a deduction to account receivable is made based on the value of bartered merchandise fair value on VAT invoice or official invoice issued by consignor , the accountant records: Dr. 152 Raw materials Dr. 153 Tool and supplies Dr. 156 Merchandise goods Dr. 611- Purchase periodic inventory accounting Dr. 133 VAT deductible if any Cr. 131 Accounts receivable 11. In case the receivable is definitely unrecoverable, the accountant must write off bad debts by: Based on the bad debts written off minutes: Dr. 139 Dr. 642 Provision for doubtful debts amount of provision already provided General and administration expenses amount of provision not yet providedTranslation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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MINISTRY OF FINANCE Decision 15/2006/QD-BTC Cr. 131 - Accounts receivable At the same time, a debit must be recorded to account 004 "Bad debts written off" Off balance sheet accounts so that they can be followed up within the regulated timeframe for future collectibles from these customers. 12. At the end of fiscal year, accounts receivable in foreign currency must be revalued at average inter-bank exchange rate on foreign currency market stipulated by the State Bank of Vietnam ruling at the date of financial statements preparation. If the average inter-bank exchange rate in foreign currency market stipulated by the State Bank of Vietnam ruling at the date of financial statements preparation is greater than the booking exchange rate of account 131, the resulted difference will be recorded as follows: Dr. 131 - Accounts receivable Cr. 413 Foreign exchange difference 4131 If the average inter-bank exchange rate in foreign currency market announced by the State foreign Bank of Vietnam ruling at the date of financial statements preparation is lower than the financial booking exchange rate of Account 131, the resulted difference will be recorded as follows: resulted Dr. 413 - Foreign exchange difference 4131 Cr. 131 - Accounts receivable Refer to instruction to account 413 for exchange difference from revaluation at the end of exchange fiscal year for accounts receivable in foreign currency.


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MINISTRY OF FINANCE Decision 15/2006/QD-BTC ACCOUNT 133 VAT DEDUCTIBLE This account records VAT amount that is deductible, deducted and to be deducted of the entity. VAT deductible input is the VAT on goods and services used in the business, in the production of goods and services that are subject to VAT. VAT input equals = total VAT on the VAT invoices of goods and services including fixed assets used in production of goods and services subject to VAT, the amount of import VAT recorded on the tax dossier documents of imported goods, or tax payment dossiers on behalf of a foreign party as the Ministry of Finance s regulation for foreign organizations, individuals doing ment business in Viet nam not belonging to investment forms under the Vietnam law on foreign investment. THIS ACCOUNT MUST COMPLY WITH THE FOLLOWING REGULATIONS: 1. Account 133 only applies for entity subject to subtraction method VAT, not applicable for entity of which goods and services are subject to VAT in direct method or goods and services are not subject to VAT. 2. For goods and services purchased for production of goods and services both subject to and not subject to VAT, entities have to independently record VAT deductible input and nonindependently deductible VAT input. When it is impossible to independently record, the amount of VAT input should be recorded to account 133. At the end of the accounting period, the accountant must define the amount of VAT deductible based on the percentage of the sales from goods and services subject to VAT the in the total sales from goods and services in that period. The amount of non-deductible VAT input is included in the cost of goods sold or production costs, overhead on each specific case. When the amount of non-deductible VAT is high costly, a proportion of the amount should high be allocated in cost of goods sold in correspondence with the revenue in the current period. correspondence The rest should be charged to cost of goods sold in the next period. 3. When an entity buys goods and services used for production of goods and services not subject to VAT or subject to direct VAT; used in adminisation and services activities; used in projects whose expenditure is covered by Stage Budget; in benefit and fringe activities which are covered by social and welfare fund, the VAT input should not be deductible and not recorded to account 133. The amount of non-deductible VAT should be recorded into the purchasing cost of those mechandises, fixed assets and services. 4. When purchased goods and services are used specific documents such as post stamp, transportation ticket, etc. showing that the paying prices have been included VAT; based on those documents, the entity must define the non-tax price. The VAT input is deducted as the regulation at point b, article 1.2, item I, part III Circular 120/2003/TT-BTC dated December 12, 2003 of the Ministry of Finance. 5. When agricultural, forestry, fishery enterprises export products that they directly feed, plant and catch, they will be only deducted the VAT input on goods and services directly used in the period of feed, catch and plant.Translation by KTC Assurance & Business Advisors URL: www.ktcvietnam.com Tel: +84-4-9334057

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6. Purchased goods being lost or damaged by natural calamities, fire because of organisations, individuals responsibility and these people have to compensate, the VAT input of these goods should be recorded into the value of damaged goods that being compensated. They should not be recorded as VAT deductible input in the monthly VAT declaration. 7. The VAT occurred in one month should be declared in the monthly VAT declaration of that month. If the amount of VAT deductible

Decision 15 - Part I - Chart of Accounts - Edition 1 2 2 - ban 18 Mb

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