Decision No. 02/2008/QD-NHNN on amending and supplementing certain accounts in the accounting system of credit institutions issued pursuant to Decision No. 479/2004/QD-NHNN dated April 29, 2004, Decision No. 807/2005/QD-NHNN dated June 1, 2005, and Decision No. 29/2006/QD-NHNN dated July 10, 2006 of the Governor of the State Bank of Vietnam.

Pursuant to …;

Regarding the amendment and supplementation of certain accounts in the accounting system of credit organizations issued

pursuant to Decision No. 479/2004/QĐ-NHNN dated April 29, 2004, Decision No. 807/2005/QĐ-NHNN dated June 1, 2005and Decision No. 29/2006/QĐ-NHNN dated July 10, 2006

of the Governor of the State Bank of Vietnamof the Governor of the State Bank

_______________________________________

 GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;

Pursuant to the Law on Credit Organizations 1997 and the Law Amending and Supplementing Certain Provisions of the Law on Credit Organizations 2004;

Pursuant to the Accounting Law 2003;

Pursuant to Decree No. 52/2003/NĐ-CP dated May 19, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

With the approval for amending and supplementing the Accounting System of Credit Organizations at Circular No. 16862/BTC-CĐKT dated December 10, 2007 of the Ministry of Finance;

At the proposal of the Director of the Accounting and Finance Department,

DECISION:

Article 1. Repeal certain contents in the Accounting System of Credit Organizations (TCTD) issued pursuant to Decision No. 479/2004/QĐ-NHNN dated April 29, 2004 and Decision No. 29/2006/QĐ-NHNN dated July 10, 2006 of the Governor of the State Bank of Vietnam (SBV) as follows:

1. Repeal certain accounts in the Accounting System of Credit Organizations issued pursuant to Decision No. 479/2004/QĐ-NHNN dated April 29, 2004 of the Governor of the SBV:

- Account 312-Value of labor tools in use recorded in expenses;

- Account 921-Liability commitments to guarantee for customers;

- Account 925-Liability commitments to finance customers.

2. Repeal Clause 28 Article 2 of Decision No. 29/2006/QĐ-NHNN dated July 10, 2006 of the Governor of the SBV.

Article 2. Amend and supplement the accounting content of certain accounts in the Accounting System of Credit Organizations issued pursuant to Decision No. 479/2004/QĐ-NHNN dated April 29, 2004, Decision No. 807/2005/QĐ-NHNN dated June 1, 2005 and Decision No. 29/2006/QĐ-NHNN dated July 10, 2006 of the Governor of the SBV as follows:

1. Amend the accounting content on the accounts specified in Article 2 of Decision No. 807/2005/QĐ-NHNN dated June 1, 2005 and the accounting content on the accounts specified in Clause 6 Article 3 of Decision No. 29/2006/QĐ-NHNN dated July 10, 2006 of the Governor of the SBV:

1.1. For the accounts "Loans classified as standard":

These Accounts are used to record the amount of money (Vietnamese dong, foreign currency or gold) that credit organizations lend to other credit organizations, organizations, individuals (domestic or foreign) and are classified into Group 1 (standard loans) according to current regulations on loan classification.

1.2. For the accounts "Loans requiring close attention":

These Accounts are used to record the amount of money (Vietnamese dong, foreign currency or gold) that credit organizations lend to other credit organizations, organizations, individuals (domestic or foreign) and are classified into Group 2 (loans requiring close attention) according to current regulations on loan classification.

The accounting content of these accounts is similar to the accounting content of the accounts "Loans classified as standard".

1.3. For the accounts "Substandard Loans":

These Accounts are used to record the amount of money (Vietnamese dong, foreign currency or gold) that credit organizations lend to other credit organizations, organizations, individuals (domestic or foreign) and are classified into Group 3 (substandard loans) according to current regulations on loan classification.

The accounting content of these accounts is similar to the accounting content of the accounts "Loans classified as standard".

1.4. For the accounts "Doubtful Loans":

These Accounts are used to record the amount of money (Vietnamese dong, foreign currency or gold) that credit organizations lend to other credit organizations, organizations, individuals (domestic or foreign) and are classified into Group 4 (doubtful loans) according to current regulations on loan classification.

The accounting content of these accounts is similar to the accounting content of the accounts "Loans classified as standard".

1.5. For the accounts "Loss Loans":

These Accounts are used to record the amount of money (Vietnamese dong, foreign currency or gold) that credit organizations lend to other credit organizations, organizations, individuals (domestic or foreign) and are classified into Group 5 (loss loans) according to current regulations on loan classification.

The accounting content of these accounts is similar to the accounting content of the accounts "Loans classified as standard".

2. Amend the name and accounting content of certain accounts specified in Part II of the Accounting System of Credit Organizations issued pursuant to Decision No. 479/2004/QĐ-NHNN dated April 29, 2004 of the Governor of the SBV, as follows:

2.1. Amend Account 311-Tools and Equipment in Use:

"Account 311-Tools and Equipment

This account is used to reflect the current value and changes in the increase and decrease of various types of tools and equipment of credit organizations.

Accounting for this account must be carried out according to the following provisions:

- Accounting for the entry, exit, and inventory of tools and equipment must be reflected at actual cost.

- In addition to the detailed accounting ledger reflecting the value of tools and equipment, accounting must open a detailed ledger for tools and equipment to record and monitor the quantity and value of each type of tool and equipment.

The warehouse keeper must open a warehouse card to record and monitor the quantity of each type of tool and equipment consistent with the opening of the ledger by the accountant.

- For tools and equipment used for business activities: must be recorded and monitored about physical items and value on the detailed ledger tracking each place of use and person responsible for material assets.

- For small-value tools and equipment used for business activities when exiting, the entire value must be allocated once into expenses.

- For large-value tools and equipment used once and used over multiple accounting periods, the value of the tools and equipment used is recorded in the "Pending Expense Allocation" account and gradually allocated into expenses for each accounting period.

2.2. Amend the accounting content of Account 383-Investment and Loan Commissioned in Vietnamese Dong:

"Account 383-Investment and Loan Commissioned in Vietnamese Dong

This account is used to reflect the amount of Vietnamese dong that credit organizations transfer to commissioned organizations for investment and lending at agreed amounts under the investment and lending commission contracts signed between both parties.

"Account 384-Investment Entrustment and Foreign Currency Loan Accounts

This account is used to reflect the value of foreign currency transferred by credit institutions to entrusted organizations for investment and loans at agreed amounts under signed entrustment investment and loan contracts between both parties.

The accounting content of this account is similar to the accounting content of Account 383.

3. Amend some accounting contents of Account 833-Business Income Tax Expenses in Clause 27, Article 3 of Decision No. 29/2006/QĐ-NHNN dated July 10, 2006 of the Governor of the State Bank of Vietnam, as follows:

"This account is used to reflect business income tax expenses of credit institutions including current business income tax expenses and deferred business income tax expenses serving as the basis for determining the operating results of credit institutions in the current year.

Accounting for this account must be carried out according to Vietnamese Accounting Standard No. 17-Business Income Tax and the following provisions:

1. Business income tax expenses recorded in this account include current business income tax expenses and deferred business income tax expenses when determining profit (or loss) of a fiscal year.

2. Current business income tax expenses are the amount of business income tax payable calculated on taxable income in the year and the current business income tax rate.

3. Deferred business income tax expenses are the amount of business income tax that will be payable in the future arising from:

- Recording deferred tax liabilities to be paid in the year;

- Reversing deferred tax assets recognized in previous years.

4. Business income tax deferred income is the reduction in deferred business income tax expenses arising from:

- Recording deferred tax assets in the year;

- Reversing deferred tax liabilities to be paid recognized in previous years."

Article 3. Supplement accounting content and some accounts to the System of Accounting Accounts of Credit Institutions issued pursuant to Decision No. 479/2004/QĐ-NHNN dated April 29, 2004 of the Governor of the State Bank of Vietnam as follows:

1. Supplement content to Section I - General Provisions as follows:

1.1. Supplement content to Point 3.1 - On Opening and Using Third-Level Accounts

"3.1.3. - For accounts monitoring debts; guarantees, acceptances for payment and unconditional irrevocable loan commitments with specific performance dates in accordance with current non-performing loan classification regulations:

Credit institutions may establish indicators for the above accounts to second-level accounts on the balance sheet sent together with the Non-Performing Loan Classification Report submitted to the State Bank of Vietnam (in file and text form) and original reporting indicators guided by the State Bank of Vietnam when meeting the conditions stipulated in Point 3.1.1 and the following conditions:

+ Having an information technology system ensuring accurate loan classification to each loan/customer in accordance with current regulations;

+ Being approved in writing by the State Bank of Vietnam regarding the establishment of indicators for the above accounts to second-level accounts on the balance sheet."

1.2. Supplement content to Point 5 - Coding Detailed Account Numbers

"In addition, credit institutions may open detailed accounts as required for business management when necessary."

2. Supplement Account 4896-Specific Provision for Off-Balance Sheet Commitments

This account is used to reflect the establishment and use of specific provisions for off-balance sheet commitments such as guarantee commitments, loan commitments, acceptance for payments, etc., made by credit institutions to customers to handle off-balance sheet credit risks in banking activities in accordance with current non-performing loan classification regulations.

3. Supplement Account 921-Guarantee Loan Commitment

"This account is used to reflect the total amount of loan guarantee commitments made by credit institutions to organizations and individuals under signed contracts where the credit institution has not yet had to fulfill its commitment obligations.

Account 921 includes the following third-level accounts:

9211-Off-Balance Sheet Commitments Classified into Group 1 (Standard Loans)

9212-Off-Balance Sheet Commitments Classified into Group 2 (Loans to Watch)

9213-Off-Balance Sheet Commitments Classified into Group 3 (Substandard Loans)

9214-Off-Balance Sheet Commitments Classified into Group 4 (Doubtful Loans)

9215-Off-Balance Sheet Commitments Classified into Group 5 (Loss Loans)

Account 9211-Off-Balance Sheet Commitments Classified into Group 1 (Standard Loans)

This account is used to record the amount of loan guarantee commitments made by credit institutions to organizations and individuals under signed contracts where the credit institution has not yet had to fulfill its commitment obligations and classified into Group 1 (Standard Loans) according to current non-performing loan classification regulations.

9221-Off-Balance Sheet Commitments Classified into Group 1 (Standard Loans)

9222-Off-Balance Sheet Commitments Classified into Group 2 (Loans to Watch)

9223-Off-Balance Sheet Commitments Classified into Group 3 (Substandard Loans)

9224-Off-Balance Sheet Commitments Classified into Group 4 (Doubtful Loans)

9225-Off-Balance Sheet Commitments Classified into Group 5 (Loss Loans)

The accounting content of Account 922 is similar to the accounting content of Account 921.

5. Supplement Account 924-Unconditional Irrevocable Loan Commitment

This account is used to record the total amount of unconditional irrevocable loan commitments made by credit institutions to organizations and individuals under signed contracts where the credit institution has not yet had to fulfill its commitment obligations.

Account 924 includes the following third-level accounts:

9241-Off-Balance Sheet Commitments Classified into Group 1 (Standard Loans)

9242-Off-Balance Sheet Commitments Classified into Group 2 (Loans to Watch)

9243-Off-Balance Sheet Commitments Classified into Group 3 (Substandard Loans)

9244-Off-Balance Sheet Commitments Classified into Group 4 (Doubtful Loans)

9245-Off-Balance Sheet Commitments Classified into Group 5 (Loss Loans)

The accounting content of Account 924 is similar to the accounting content of Account 921.

6. Supplement Account 925-L/C Commitment

This account is used to record the total amount of L/C commitments made by credit institutions to organizations and individuals under signed contracts where the credit institution has not yet had to fulfill its commitment obligations.

Account 925 includes the following third-level accounts:

9251-Off-Balance Sheet Commitments Classified into Group 1 (Standard Loans)

9252-Off-balance sheet commitments classified into group 2 (Watch loans)

9253-Off-balance sheet commitments classified into group 3 (Substandard loans)

9254-Off-balance sheet commitments classified into group 4 (Doubtful loans)

9255-Off-balance sheet commitments classified into group 5 (Loss loans)

The accounting content of account 925 is similar to the accounting content of account 921.

7. Add Account 926-Commitments for guaranteeing contract performance

This account is used to record the total amount of commitments made by credit institutions to guarantee contract performance for organizations and individuals according to signed contracts where the credit institution has not yet had to fulfill its commitment obligations under the contract.

Account 926 includes the following third-level accounts:

9261-Off-balance sheet commitments classified into group 1 (Pass loans)

9262-Off-balance sheet commitments classified into group 2 (Watch loans)

9263-Off-balance sheet commitments classified into group 3 (Substandard loans)

9264-Off-balance sheet commitments classified into group 4 (Doubtful loans)

9265-Off-balance sheet commitments classified into group 5 (Loss loans)

The accounting content of account 926 is similar to the accounting content of account 921.

8. Add Account 927-Commitments for tender guarantees

This account is used to record the total amount of commitments made by credit institutions to provide tender guarantees for organizations and individuals according to signed contracts where the credit institution has not yet had to fulfill its commitment obligations under the contract.

Account 927 includes the following third-level accounts:

9271-Off-balance sheet commitments classified into group 1 (Pass loans)

9272-Off-balance sheet commitments classified into group 2 (Watch loans)

9273-Off-balance sheet commitments classified into group 3 (Substandard loans)

9274-Off-balance sheet commitments classified into group 4 (Doubtful loans)

9275-Off-balance sheet commitments classified into group 5 (Loss loans)

The accounting content of account 927 is similar to the accounting content of account 921.

9. Add Account 928-Other commitments for guarantees

This account is used to record the total amount of other guarantee commitments made by credit institutions for organizations and individuals according to signed contracts where the credit institution has not yet had to fulfill its commitment obligations under the contract.

Account 928 includes the following third-level accounts:

9281-Off-balance sheet commitments classified into group 1 (Pass loans)

9282-Off-balance sheet commitments classified into group 2 (Watch loans)

9283-Off-balance sheet commitments classified into group 3 (Substandard loans)

9284-Off-balance sheet commitments classified into group 4 (Doubtful loans)

9285-Off-balance sheet commitments classified into group 5 (Loss loans)

The accounting content of account 928 is similar to the accounting content of account 921.

Article 4. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 5. The Director of the Office, the Head of the Accounting and Finance Department, the Director of the Banking Information Technology Department, the Heads of relevant units under the State Bank, the Governors of the State Bank branches in provinces and centrally-administered cities, the Chairmen of the Management Boards and General Directors (Directors) of credit institutions are responsible for implementing this Decision./.