sổ tay thuế phiên bản tiếng anh

The following accounts shall be kept records by dependent accounting units having accounting divisions according to the decision issued by the enterprise: Operating capital which belongs

PROMULGATED UNDER THE CIRCULAR

NO 200/2014/TT-BTC

important guidance with the aim of changing accountants'thoughts and gradually taking the corporate accounting policies

of Vietnam to the international accounting standards

Within the scope of this newsletter, AASC will help you to catchthe differences or further clarifications in the CorporateAccounting Policies recently promulgated in comparison with theformer Corporate Accounting Policies passed under the Decisio

believe this document is useful for youduring the course of accounting operations

th January 2015 (ISBN:987-604-79-0730-4 and 978-604-79-0731-1) issued by theMinistry of Finance by looking for the page number as stated inthe reference column For example: Tr8-Q1: the 8th page of theCorporate Accounting Policies -Volume 1 as mentioned above

We would also note that the number of pages can be changed incase you refer to other volumes than our newsletter as statedabove

2 Respect the nature of the economic operation other than theform;

3 To be flexible and open; consider the satisfaction of the manage,executive, decision-making, serving investors and creditors as amain focus; not accounting for tax purposes;

4 In accordance with the international standards;

5 Separate the accounting techniques on accounts and FinancialStatement; the definition of the long-term and short-term onlyapplying to the preparation of Balance Sheet and not applying tothe accounts;

6 Raise the responsibilities of the accountants

PART 1 : GENERAL PROVISIONS

Applying for enterprises in every business line and in

every economic sector For small and medium sized

enterprises (SMEs), this Circular guiding these

enterprises on utilizing the applicable accounting

policies to fit with their nature of business and

management requirements.

Scope:

Identifying the monetary unit in accounting

Guidance on recording, preparing and presenting the

Financial statement, but not applying for determining tax

liabilities of enterprises to the State budget

1 For enterprises whose transactions involved mainly in

foreign currencies shall base on regulations of the Law

on accounting for consideration, selection of monetary

unit used in accounting, take legal responsibility and

notify to supervisory tax authority

2 The monetary unit in accounting means:

Primarily used in trading goods, rendering of

services, defined as the posting price and used for

payments; and

Used mainly in purchasing goods, services which

have great impact on operating costs and considered as

a)

b)

Art 1 - Cir 200 P7-Vol 1

Art 2 - Cir 200 P8 - Vol 1

Pro 1 - Art 4 Cir 200 P8 - Vol 1

Pro 2 - Art 4 Cir 200 P8 - Vol 1

Conversion of financial statements made in foreign

currency into Vietnamese dong (VND)

1 If an enterprise uses a foreign currency as monetary unit

in accounting, it must not only prepare a financial

statement in foreign currency but also converse their

financial statement into Vietnamese dong when

announcing and submitting the financial statement to

regulatory authorities

2 When converting the financial statement made in

foreign currency into Vietnamese dong, the enterprise

must clarify the impact (if any) on the financial statement

due to the conversion in the Description of financial

statement

3 The lawful financial statement used to announce and

submit to Vietnamese competent agencies is a financial

statement made in Vietnamese dong and audited

4 Conversion of financial statement made in foreign

currencies to Vietnamese dong

Rules:

- Assets and liabilities are converted into Vietnam

dong at the actual exchange rate at the end of period

(the transfer rate of a commercial bank where

enterprises regularly trade)

a)

Pro 1 - Art 5 Cir 200 P9 - Vol 1

Pro 3 - Art 5 Cir 200 P9 - Vol 1

Art 6 - Cir 200 P9 - Vol 1

II.11.2 - Cir 200

P120 - Vol2

- Owner's equity is converted at the actual exchange

rate at the date of contribution of capital

- Foreign exchange differences and differences upon

asset revaluation are converted at the actual

exchange rate at the date of valuation

- Undistributed post-tax profits, funds deducted from

undistributed post-tax profits are converted by

calculating according to items of income statements;

- Items of income statements and cash flow

statements are converted at the actual exchange rate

at the time of the transaction or at the average

exchange rates of the accounting period (the

difference does not exceed 3%)

Accounting method of foreign exchange differences

arising when converting financial statements prepared

in foreign currencies into Vietnam Dong under the item

"exchange rate differences" - Code No.417 of the

owner's equity of the Balance sheet

1 If there are major changes in managerial and business

operations leading to the monetary unit in accounting

used in economic transactions failing to satisfy the

accounting requirements, enterprises may change their

monetary units in accounting The change of a monetary

unit for bookkeeping to another may be effected only at

b)

Changes in monetary unit in accounting

Art 7 - Cir 200 P10 - Vol 1

the beginning of a new fiscal year The enterprise must

notify supervisory tax authority of the change in

monetary unit in accounting within 10 working days after

the final day of the fiscal year

2 Application of exchange rate in cash accounting:

Apply the transfer rate of commercial banks where

enterprises frequently trade in the beginning of period to

convert the balances of accounting books for items on

the balance sheet;

Apply the average transfer rate of the period

preceding the change period (if the average exchange

rate is approximate the actual cost) when presenting

comparative information in income statements and cash

flow statements of the period

3 When changing monetary unit in accounting, the

reasons for changes and inpact (if any) must be clarified

in the Notes of Financial Statements

1 Enterprises must organize their accounting structures

and accounting task delegation of dependent

a)

b)

Rights and obligations of enterprises pertaining to

organization of accounting in dependent accounting

units having no legal status

II.12 - Cir 200 P121 - Vol 2

II.12.3 - Cir 200 P122 - Vol 2

Art 8 - Cir 200 P10 - Vol 1

accounting units in conformity with their operation and

management requirements and not contrary to

regulations of law

2 The following accounts shall be kept records by

dependent accounting units having accounting

divisions according to the decision issued by the

enterprise:

Operating capital which belongs to dependent

accounting unit shall be recorded to liabilities or owner's

equity according to the decision of the enterprises;

Transactions in sale, purchase or circulation of goods

or services intra-company: revenues or costs of goods

sold only are separately recorded in each dependent

accounting unit if such circulation creates added value

in the goods or services The recording of revenues from

internal transactions to the financial statement does not

depend on the format of accounting records (invoices or

internal transaction documents);

Task delegation: Depending on centralized or

decentralized accounting model, the dependent

accounting units may record undistributed post-tax

profit or record revenues and expenses

a)

b)

c)

Registration for amendments in Accounting policies

Accounting policies applying to foreign contractors

who have permanent resident facilities in Vietnam

1 If the enterprise need to add accounts or sub-accounts

or modify accounts or sub-accounts about names,

signs, content and accounting methods, the approval

issued by the Ministry of Finance before the supplement

or modification is required

2 If the enterprise need to add or modify names, signs,

content of items of the financial statement, the approval

issued by the Ministry of Finance (under the form of

written documents) before the supplement or

modification is required

3 All accounting documents are optional, enterprises may

design their forms in conformity with their operation and

management requirements

1 There are particular contractors eligible for particular

accounting policy issued by the Ministry of Finance;

2 Contractors not eligible for particular accounting policy

issued by the Ministry of Finance may whether fully and

partly apply Accounting policies for Vietnamese

enterprises in conformity with their operation and

Art 9 - Cir 200 P11 - Vol 1

Art 10 - Cir 200 P12 - Vol 1

management, if the contractor applies Accounting

policies for Vietnamese companies fully, it is required to

apply during the fiscal year

3 The contractor must notify the tax authority of the

accounting policy applied within 90 days from the date

on which it runs business in Vietnam If there is any

change in applying of accounting policy, the contractor

must notify the tax authority within 15 working days from

the date on which the change occurs

4 Foreign contractor must keep records of every contract (

including every contract license), every transaction in

details to settle contract and make tax declaration

5 If a foreign contractor who applies fully Accounting

policies for Vietnamese companies wishes to

supplement or modify the policies, it is required to

comply with Article 9 of this Circular and obtain approval

issued by the Ministry of Finance Within 15 working

days from the date on which the sufficient documents

are received, the Ministry of Finance must send

response on registration of amendments of accounting

policies to the foreign contractor

Accounting documents

1 Types of vouchers are under guidance (optional)

Enterprises shall actively develop, design accounting

forms and vouchers in accordance with their operational

characteristics and management requirements which

must meet the requirements of the Law on Accounting

and ensure principles of clear, transparency, timeliness,

easy inspection, control and comparison

2 If enterprises do not develop and design forms and

vouchers themselves, enterprises may apply the

system of forms and guidance on content of accounting

records in accordance with the guidance in Appendix 3

of this Circular

3 Enterprises have the peculiar economic and financial

operation under the adjustment of other legal

documents shall apply the provisions of vouchers in

such documents

4 The decentralization of signing in vouchers shall be

prescribed by the General Director (Director) of

enterprises in accordance with the law, management

requirements ensuring strict control, security of assets

Art 117 - Cir 200 P208 - Vol 2

Art 118 - Cir 200 P210 - Vol 2

Accounting Books

1 All forms of accounting records (including Ledgers or

Journals) are optional Enterprises shall develop forms

of accounting books of their own but must provide

information about economic transactions transparently,

completely, easily to check, easily to control and easily

to compare

2 In case of not developing forms of accounting books,

enterprises may apply accounting book forms under the

guidance in Appendix 4 of this Circular

3 Upon detection of any errors of accounting books, they

must be rectified by the methods in accordance with the

Law on Accounting and adjust retrospectively in

accordance with Vietnamese Accounting Standards

No.29

Art 9 Pro 3b Cir 200 Art 122 - Cir 200 Art 122 - Cir 200

Art 9 Pro 3b Cir 200 Art 122 - Cir 200

Art 125 - Cir 200

PART 2: SUMMARY OF SOME NEW CONTENTS IN

ACCOUNTING ACCOUNTS

I Cash accounting

II Transactions made in foreign currencies

1 Monetary gold is recoreded as cash on hand Monetary

gold is gold used for value storage, not including the gold

recorded to inventory account (used as raw materials for

production of goods for sale) The monetary gold shall be

re-evaluated according to the buying prices on the

domestic market at the time in which the financial

statement is prepared

2 Differences due to re-evaluation of monetary gold are

recorded as financial income (if generating profit) or

recorded as financial expenses (if generating losses)

3 The bank overdrafts are not recorded as negative sign on

bank deposit accounts; they shall be recorded similarly to

bank loans

4 Converting account balance (see the account balance

conversion in page no 44)

1

Real exchange rate upon capital contribution: when

The principles for determining the actual real exchange

record and reevaluate receivables; when record and

reevaluate liabilities; when record ending balance made in

foreign currency; when change monetary unit in

accounting

2

- Transactions received cash in advance of buyers or

prepaid transaction to sellers: apply the real exchange

rate;

- Revenues or asset purchased related to transactions of

which money is received in advance or prepayment to

sellers: apply the real exchange rate at the time of receipt

in advance of buyers;

- For credit side of cash capital accounts: apply moving

weighted average method for exchange rate in

accounting book (apply for each entry)

3

Definition:

- Cash, cash equivalents, term deposits, debts

receivable, payable derived from foreign currencies,

borrowings, loans, the deposit entitled may be received

back in foreign currencies or sum received from deposit

must be repaid in foreign currency

- Except for: Prepayments to sellers, prepaid expenses,

sums prepaid by buyers and sums received in advance

in foreign currencies

Application of exchange rates in transactions

Principles for determining accounts derived from foreign

currencies

a)

P416 - Vol1

P417 - Vol1

Enterprises must revalue accounts derived from

foreign currencies: at all time of financial statement is

prepared

4

- All exchange rate differencies from operations of

enterprises are recorded on financial statements;

- Exchange rate losses in the period before operation of

enterprises of which 100% charter capital is held by the

State carrying out projects associated with security and

national defense are recorded on account 413, and are

allocated directly from account 413 to financial expense

but not transferred through account 242 or account 3387;

- Note: the deferred corporate income tax to the exchange

rate difference due to the revaluation of the balance not

recorded into the taxable income (cash, account

Account 121: Trading securities

III Accounting policies for financial investments

50

P419 - Vol1

P419 - Vol1

P49 - Vol1

- Unlisted securities are recorded at the time in which the

ownership is acquired as prescribed in regulations of law

- In case of dividends are allocated by shares, the investor

only observes the quantity of shares according to the

presentation of financial statement With regard to

enterprises whose charter capital is wholly held by the

state, the accounting for dividends allocated by shares

shall comply with regulations on state-owned enterprises

(ref: Article 35b- Decree No 71/2013/ND-CP)

- Before any share is exchanged, its value must be

determined according to fair value on the exchanging

date The fair value of shares is determined as closing

prices listed on the securities market or closing prices of

UPCOM In case of other unlisted shares, the fair value of

shares is prices dealt by business contract ( or book

value)

- When liquidating or transferring trading securities

(according to every type of security), the cost price shall be

determined according to mobile weighted average

method (weighted average for every purchase)

- The dividends or profits that are used for evaluation (an

increase) of state capital are received; it shall be recorded

as a decrease in value of investment

2

- Investments held to maturity other than trading securities:

term deposits, Bonds, loans, preference shares that the

Account 128: Held to maturity investments

P50 - Vol1

P50 - Vol1

P52 - Vol1

P55 - Vol1

issuer is required to re-buy them in a certain time in the

future These investments above shall hold to maturity

to earn profits periodically

- This account shall not record investments held for

sales

- If it fails to make provisions for doubtful debts as

prescribed, the accountant must evaluate the recovery

and record the losses (if any) to financial expenses

- When the financial statement is prepared, the

accountant must re-evaluate short-term investment

classified as accounts derived from foreign currencies

according to actual exchange rates at the end of the

accounting period:

- Term deposits (long term) now move from account 228

to account 128

Investments in associates include investments in

subsidiaries, joint ventures and other investments for

capital contribution under the following forms:

- Investments in the form of capital contribution in

associates;

- Investments in the form of purchase of capital

contribution of other associates;

3 Rules for accounting for investments in associates: Acc

221, 222, 228 (remove acc 223)

a)

P55 - Vol1

P55 - Vol1

The cost of an investment shall be recorded

according to their original cost, including purchase price

plus directly-attributable expenses;

Dividends and profits after investment date shall be

recorded to financial income on the date in which the

dividends and profits are received; When the equitized

enterprise receives the dividends or profits which are

used for evaluation (an increase) of state capital, it shall

not record financial income but record a decrease in

value of investment;

If the dividends are received in the form of shares, it is

required to follow rules below:

- Non-wholly-state-owned companies shall only keep

track of number of shares stated in the financial

statement;

- Wholly-state-owned companies shall comply with

regulations of law on wholly-state-owned companies;

When liquidating or selling financial investments,

their costs shall be determined according to moving

weighted average method (weighted average for each

purchase)

When preparing the financial statement, the

enterprise must determine value of investment loss to

create allocation for investment loss

P224 - Vol1

In case the parent company dissolves the subsidiary

and merge all assets and liabilities of the subsidiary

into the parent company, the accounting shall be

done according to rules below:

- A decrease in book value of investments in

subsidiaries of the parent company shall be recorded,

- All assets or liabilities of the dissolved subsidiary shall

be recorded to balance sheet of the parent company

according to fair value on the date on which the

subsidiary is merged into the parent company;

- The difference between the cost of investment in

subsidiary and the fair value of assets and liabilities

shall be recorded to financial income or financial

In any cases, when receiving money or assets from

other entities in the BCC, they should be recorded to

liabilities (account 338)

BCC in the form of jointly controlled assets:

- Both parties involving in BCC must open accounting

book in the same system of accounting records to

record: their portions in the jointly controlled

P243 - Vol 1

assets;Any liabilities that incurred from each party;

any liabilities incurred jointly with the other parties in

the relation to the BCC; income or expenses from

BCC, any expenses that incurred in contributing to

BCC

- Assest which is contributed to BCC and the ownership

of the contributor is not transferred to the joint

ownership of BCC venturers

- With regard to fixed asset which is contributed to BCC

and the ownership of the contributor is transferred to

the joint ownership; during construction of jointly

controlled assets, the contributor shall include a

decrease in assets and the value of assets shall be

recorded an increase to construction in progress After

putting jointly controlled assets into operation, the

venturers shall record their increases in assets in

conformity with their use purposes according to value

of their assets' shares

BCC in the form of jointly controlled operations

- Each venture shall bear its own expenses incurred in

jointly controlled operations; the joint expenses shall

be divided to venturers according to the BCC

- A venturer must open accounting book in the same

system of accounting records to record: assets

contributed to BCC, liabilities that incurs of each BCC

venture, income that it earns from the sale of goods

or services, expenses that incurs of each BCC

venture

- When receiving products, the venturer must make

receipt slips of products (or delivery order)

BCC in the form of shares of post-tax profits:

- When giving shares of post-tax profits under BCC,

all venturers shall appoint a venturer to account for

all transactions in BCC and make tax declaration

- When entering the BCC, the venture must consider

the risks possibly due to: Any expenses which is not

included in the taxable expense due to failure in

transfer of assets among venturers; Risks of

policies

- Accounting principal:

If the BCC regulates that other venturers shall

earn an amount of fixed profit regardless of output

of BCC activities, in this case, the legal form of the

contract is BCC, but it is a lease in the nature The

venturer in charge of accounting apply

accounting method for lease to the contract, the

other venturers shall record their shares of BCC

to revenues from lease

If the BCC regulates that other venturers of BCC

may only be divided profits if the BCC activities

generate profits or losses, in this case, the nature

of BCC is division of revenues and expenses The

venturer in charge of accounting apply accounting

method for shares of income under BCC to record

revenues, expenses and business output within a

period (make tax declaration to other venturers)

Other venturers shall record their revenues and

expenses are stated in the income statements

under BCC (it does not require the fulfillment in

obligations of BCC to government budget but still

settle the corporate income tax payables: Dr

811/Cr 338)

5

Use Account 229 to record Allowance for impairment of

investments, Allowance for doubtful debts and

Allowance for decline in inventories

Allowance for impairment of investments

- Allowance for impairment of investments in other

entities: means an allowance for impairment because

the contributee suffers losses

- For investments in a joint venture or an associate, the

investor only create allowance if the financial

statement is not applied the owner's equity method

for investments

- For investments not influencing significantly on the

investee: If an investment in listed shares or the fair

value of the investment is determined reliably, the

allowance shall be made according to the market

Allowances for impairment of assets:

value of the shares; in case of fair value is not

identifiable, the allowance shall be made according to

the loss of the investee which is recorded in financial

statement

- Method of accounting for allowance for impairments

in other entities: If the investee is a parent company,

the investor shall record the allowance according to

the consolidated financial statement; If the investee is

an independent company having no subsidiary, the

investor shall create an allowance according to the

seperated financial statement of such investee

Allowance for doubtful debts:

- Allowance for doubtful debts include the establishing

or reverting of allowance for doubtful debts and other

held for maturity investments that are similar to

doubtful debts (there are no guidance on accounting

entry)

- The time overdue of the doubtful debt shall be

determined according to time in which the principal is

repaid, the debt rescheduling between contracting

parties is excluded

- Requirements of for allowance for doubtful debts:

must have original documents or promissory note of

the debtor

- Allowance for doubtful debts shall base on items

presented on the balance sheet which are classified

as short-term or long-term receivables

6 Converting account balance (see the account balance

conversion in page no )

1

a) Trade receivables include commercial receivables

generating from purchase-sale related transactions;

b) Intra-company receivables include receivables

between superior organizations and affiliated

organizations having no legal status and dependent

cost-accounting;

c) Other receivables include commercial or

non-trading receivables

2

Receivables items of balance sheet may include amounts

recorded to other than receivables such as: loans

(account 1283), deposits (account 244) and advance

(account 141) etc

IV Accounting for receivables

Classification of account receivables:

When preparing financial statements, the receivables

shall be classified into short-term receivables or long-term

receivables according to their remaining terms.

44

P60 - Vol 1

P60 - Vol 1

4

- The export trustor shall record receivables for sale of

exported goods from export trustee to account 131

similarly to normal transactions

- The export trustee shall record payables on behalf of

the export trustor to account 138, including: banking

fees, customs inspection fees, delivery expenses,

material handling expenses, taxes

5

- Dependent accounting unit may be in charge or may

be not in charge of recording revenues In case

dependent accounting unit is not in charge of

recording revenues, revenues are recorded to

account 136

For example: In case the dependent accounting unit

is not in charge of recording revenues, value of goods

or services provided for subsidiaries shall be

recorded to internal receivables: Dr 136/ Cr

154,155,156, Cr 333

- The revenue may be recorded either at the time in

which the goods or services are transferred to

dependent accounting units or at the time in which the

dependent accounting units sell goods or services

The receivables conformable to definition of accounts

derived from foreign currencies must be re-evaluated at

the closing period when preparing financial statements.

Export activities from trusted sources:

Intra-company receivables: Account 136

P60 & P414 Vol 1

P62 - Vol 1

P76 - Vol 1

P77 - Vol 1

- Account 136 must be kept records of every inferior

unit in details and every intra-company receivables

must be separately monitored

- At the end of tax period, it is required to collate and

certify balance account with affiliated units in the

payment relationship must be verified, collated and

- Determine and record these goods or equipments

according to their fair value

Account 138 only record the Non-monetary assets

borrowed by other entities (if lending in money, the loan

shall be recorded to account 1283

Converting account balance (see the account balance

conversion in page no )

Long-term assets on the financial statements include

unfinished goods with period of production or circulation

exceeding a normal business cycle and equipment and

spare parts for replacement whose preserve period is

more than 12 months or more than an ordinary course of

business.

When buying inventory, if goods, equipment or spare

parts for replacement are attached, accountants must:

V Accounting for inventories

- The value of purchased goods are equal purchases

price minus (-) value of changeable goods, equipment

or spare parts for replacement

3

- If the inventory are released for promotion or

advertisement without collecting money, providing

additional conditions (compulsory purchase of goods,

etc), the value of inventory shall be recorded to selling

expenses

- If the inventory are released for promotion or

advertisement with additional conditions that the

customers are required to buy goods The collected

amounts shall be allocated to revenues from

complimentary products, the value of complimentary

products shall be included in their cost (nature of

transaction is sale rebates)

merchandise items and merchandise items used for

promotion on financial statement

Inventory are released for promotion or advertisement:

Determining value of closing inventory:

In case the enterprise is a commercial distributor

receiving merchandise from manufacturers for

promotion or advertisement given to customers:

P91 - Vol 1 P91 - Vol 1

- If unused merchandise items for promotion are not

returned to the manufacturer, these items shall be

recorded to other incomes

6

1

Separate from account 341, Dr 133 – Deductible VAT/Cr

338, Dr 212 – VAT of goods are not deductible (if payment

at once time), Dr 627,641,642 ( if make periodically

payment and receive bill/invoice)/Cr 338

2

Separate/divide input VAT for every venture in BCC and a

Table of joint expense allocation shall be made

Remove accounting entries for recording input and output

VAT in transaction from the sale of goods which

consumed in intra-company and related to promotion.

Converting account balance (see the account balance

VII Accounting for fixed assets, investment properties

and construction on progress

1

, the equipment

or spare parts for replacement shall be recorded

separately with fair value Historical cost of a fixed asset

purchased shall equal total cost of the fixed asset minus

(-) cost of equipment or spare parts for replacement

2

3

- During the operating lease period the investment

p r o p e r t y m u s t b e d e p r e c i a t e d ( i n c l u d i n g

postponement period) The enterprise may determine

the appropriate depreciation method according to

owner-occupied property

- Property held for capital appreciation shall not be

depreciated In case it is evident that the investment

property falls against market fair value, then record a

decrease in cost of investment: Dr 632/Cr 217

4

- The investor of property construction shall use this

account to record property construction expenses

When buying fixed assets, if they are bundled with

equipment or spare parts for replacement

Expenses for the periodical repair and maintenance of

fixed assets are recorded as provision payable (do not

P213 - Vol 1

P221 - Vol 1

P267 - Vol 1

work is completed and put into operation, the

construction expenses shall be transferred in

conformity with the nature of every asset according to

method of use of asset

- Exchange rate differences arising from capital

investment progress: Regarding wholly-state-owned

enterprises performing tasks of security and national

defense, the exchange rate differences before

operation shall be allocated to financial income but

the enterprsise may not both record exchange rate

loss on the balance sheet or record profit in the

income statement (see part II)

Detailing the prepaid expenses serving operations in

many accounting periods for the use of classification of

expenses on the balance sheet;

Issuing bond expenses: recorded to Account

343-Issuing bonds, instead of Account 242.

Converting account balance (see the account balance

VIII Accounting for prepaid expenses:

50

P268 - Vol 1

P279 - Vol 1

P360 & P364 Vol 1

IX Accounting for deferred income tax:

X Accounting rules for liabilities

The classification is based on the rules for accounting

receivables Note: the amounts payable shall be

classified into long-term payables or short-term

payables according to their remaining terms

2

Indirect taxes including VAT (including using

credit-invoice method or subtraction method), special excise

tax, export duty, environmental protection tax and other

indirect taxes is receipts on behalf of a third party

Therefore, these indirect taxes are eliminated from

revenues /(gross profit) stated in the financial statement

Recording a deferred corporate income tax asset when

the change in enterprise income tax rates in the future

has been known:

Considered as tax basis of an asset or a liability and

temporary difference

When determining deferred tax, the term “Permanent

difference” shall not be used

c)

The enterprise may record revenues and indirect

taxes payable following one in two methods as

bellows:

- The indirect taxes payable (including VAT payable

using direct method) shall be separately recorded at

the time in which the revenues are recorded;

- The indirect taxes payable shall be recorded as a

decrease in revenues

In any cases, the item “Revenues” and "Revenue

deductions” of the income statement shall not

include indirect taxes payable

Regarding taxes eligible for refund or deduction, it is

required to distinguish these taxes are paid in purchase

process or sale process;

- Regarding those taxes paid into purchase process

eligible for refund, accountants must record a

decrease in value of goods purchased or a decrease

in costs of goods sold, a decrease in other expenses

is recorded depend on particular circumstances If

the input VAT is eligible for refund, a decrease in

deductible VAT shall be recorded; Regarding taxes

paid in import process but imported goods are not

under ownership of the enterprise, if they are eligible

for refund, a decrease in other receivables shall be

recorded

- Regarding taxes payable for sale of goods or

services, which are eligible for deduction or refund,

P301 - Vol 1

P302 - Vol 1

they shall be recorded to other income (i.e refund of

export duty, deduction in special excise tax, VAT,

environmental protection tax payable for sale of

goods or services)

Liability for government budget in export-import

entrustment transactions:

- In export-import entrustment transactions, the

trustor shall take over liability for government budget

- The trustee shall provide services including

document preparation, declaration, and payment to

government budget (taxpayer on behalf of the

trustor)

- Account 333 is only used by the trustor, not the

trustee The trustee shall record taxes payable to

government budget as expenses on behalf of a third

party in the account 3388 and receive the amounts

paid on behalf of the trustor to account 138

3

Differentiate Acc 335 and Acc 352

- Account 355 records liabilities with specific payment

schedule, identified amounts payable but not

incurred due to lack of sufficient documents The aim

is to ensure amount of expenses payable recorded in

this account in conformity with actual expenses

- Account 352 records provision payables without

specific payment schedule, identified amounts

payable The aim is to avoid suddenness in the

operating expenses

Accruement and recording of expenses which

incurred into operating expenses must be calculated

strictly and have reasonable and reliable evidences

Strictly forbid accruement in expenses contents, which

are not allowed to be charged to operating expenses

Accrued expenses payable must be settled with actual

expenses incurred

The rules applied in recording expenses regarding

investments properties;

- The enterprise may only accrue expenses stated in

the investment estimates without sufficient

documents for acceptance to the costs of goods sold

and reasons and contents of accruement for every

work item must be presented

- The enterprise may only accrue expenses to

provisionally determine the costs of goods sold for

completed property held for sale, which is sold during

a period and meet recognition criteria of revenues

- The accrued expenses which are temporarily

determined and actual expenses incurred which are

recorded to the costs of goods sold must be

equivalent to the quota on cost according to total

b)

c)

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The account 336 shall not record payment between

parent company and subsidiaries and between

subsidiaries (between independent accounting units

having legal status)

According to the decentralization and operating

feature, the enterprise shall decide that the dependent

accounting units shall record working capital granted by

the enterprise to account 3361 – Operating capital

provided for affiliated units or account 411 – Owner's

invested equity

5

Account 3381- Assets in surplus awaiting resolution:

records value of assets in surplus without reasons

awaiting resolution of the competent agency In case

the reasons for surplus are uncovered and there is

resolution report, the assets in surplus shall be

recorded to relevant accounts, not to account 3381

Account 3387- Unearned revenues: Revenue has

not earned from asset lease or services provided for

several accounting periods and unearned revenue is

only recorded when the revenue is actually collected

(not recorded corresponding to account 131-Trade

Accounting for intra-company receivables: account 336

Record payment of the loans, finance lease liabilities

Enterprises must monitor in detail the payable term of

loans, finance lease liabilities The loans, finance lease

liabilities with payment period of more than 12 months

from the date of the financial statements, accountants

shall present as long-term loans and finance lease

liabilities Loans and finance lease liabilities fall due for

settlement within the next 12 months from the date of the

financial statements, accountants shall present as

short-term loans and finance lease liabilities for the

The capitalized interest expenses shall be

determined according to VAS “Borrowings costs”:

- Regarding loans serving the construction of fixed

assets, investment properties, and the interests shall

be capitalized even if the construction duration is

under 12 months;

- The contract may not capitalize loan interests to

serve the construction of building works or assets for

their clients, including separate loans

7

Account 343 is only applied to enterprises borrowing

capital by the mode of releasing bond, including

convertible bond

Cost of issuing bonds is recorded as a decrease in

par value of the bond or a decrease in principal debt of

convertible bonds; it is gradually allocated in

accordance with bond life under the straight line

method or real interest rate method and recorded in the

financial expense or capitalized

Accounting principles of convertible bonds:

Convertible bonds are bonds that may be converted

into a number of common shares

- Convertible bonds recorded on account 3432 are

bonds that can be converted into a number of

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determined shares defined in the issuance plan.

Bonds that may be converted into a number of

undetermined shares at maturity are accounted for

as common bonds

- At initial record, when issuing convertible bonds,

enterprises must calculate and determine separately

value of the debt component (principal debt) and

capital component of convertible bonds Principal

debt of convertible bonds is recorded a liabilities;

component of capital (stock options) of convertible

bonds is recorded an owner's equity

Valuation of the principal of convertible bond is

determined by discounting the nominal value of

future payments (including principal and interest of

bonds) about the present value under interest rate of

similar bonds in the market without the right to

convert into shares and subtracting (-) the cost of

issuing convertible bonds

The value of the capital component of convertible

bonds is defined as the difference between the total

amounts collected from issuance of convertible

bonds and the value of the debt component of the

convertible bond

- After initial recording, accountants must record an

increase in the value of the principal of the bonds for

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issuance costs allocated periodically and for the

difference between the payable bond interests

calculated on the interest of the unconvertible

similar bond or real interest rates higher than the

payable interest calculated on nominal interest rate

- Upon maturity of convertible bonds:

The value of stock options of convertible bonds

recorded in owner's equity is transferred to be

recorded as premium of share capital which does

not depend on the bondholders who can exercise

the option to convert into stock or not

If the bondholders do not exercise the option to

convert bonds into stocks, enterprises must record

a decrease in the principal of convertible bonds in

proportion to the repaid amount of the bond

If the bondholders exercise the option to convert

bonds into stocks, accountants must record a

decrease in the principal of convertible bonds and

record an increase in owner's capital in proportion to

par value of stocks released additionally The

difference between the values of the principal of the

convertible bonds which is higher than the value of

stocks released additionally is recorded as share

premium

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Other payable provisions, including provision for

severance allowance in accordance with provisions of

the law, provision for the periodical repair and

maintenance of fixed assets (under technical

requirement), payable provisions for contracts with

major risk in which the payable costs for the obligations

relating to the contract exceed the economic benefits

expected to be obtained from such contracts;

9

This account is used to record changes and value of

price stabilization fund value at the time of the report of

the enterprises, which are entitled to set up the price

stabilization fund from the cost of production and

business in accordance with law Depending on the

industry, business sector, enterprises are entitled to

actively add to the name of this Fund in accordance

with their industry, business areas, such as the petrol

price stabilization fund

Price stabilization fund when set up is included in

cost price of goods sold, when used for the purpose of

stabilizing prices, enterprises record a decrease in cost

price of goods sold

Provision for payables: Account 352

Price Stabilization fund : Account 357

a)

b)

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