Circular No. 138/2011/TT-BTC guiding the amendment and supplementation of the Accounting System for Small and Medium Enterprises issued pursuant to Decision No. 48/2006/QĐ-BTC dated September 14, 2006 of the Minister of Finance.

CIRCULAR

Guidelines for Amending and Supplementing the Accounting System for Small and Medium Enterprises

issued together with Decision No. 48/2006/QĐ-BTC dated September 14, 2006

of the Minister of Finance

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- Pursuant to the Accounting Law No. 03/2003/QH11 dated June 17, 2003;

- Pursuant to Decree No. 129/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law in business operations;

- Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating functions, tasks, powers, and organizational structure of the Ministry of Finance;

- Pursuant to Decree No. 56/2009/NĐ-CP dated June 30, 2009 of the Government on assistance for the development of small and medium enterprises;

- Pursuant to Decree No. 123/2008/NĐ-CP dated December 8, 2008 of the Government detailing and guiding the implementation of certain provisions of the Value Added Tax Law;

- Pursuant to Decree No. 124/2008/NĐ-CP dated December 11, 2008 of the Government detailing and guiding the implementation of certain provisions of the Corporate Income Tax Law;

The Ministry of Finance issues guidelines for amending and supplementing the Accounting System for Small and Medium Enterprises issued together with Decision No. 48/2006/QĐ-BTC dated September 14, 2006 of the Minister of Finance as follows:

Article 1. Amend and supplement certain provisions of the Accounting System for Small and Medium Enterprises issued together with Decision No. 48/2006/QĐ-BTC dated September 14, 2006 of the Minister of Finance as follows::

1. Section 4 Part I "General Provisions" shall be amended and supplemented as follows:

"3. Writing, numerals, units of measurement, and currency units used in accounting

3.1. Writing and numerals used in accounting

- Writing used in accounting is Vietnamese.

- Numerals used in accounting are Arabic numerals: 0, 1, 2, 3, 4, 5, 6, 7, 8, 9; after thousands, millions, billions, trillions, etc., a period (.) must be placed; when recording digits after the unit digit, a comma (,) must be placed after the unit digit."

3.2. Units of measurement used in accounting

Physical units and time units of labor applied to small and medium enterprises are officially recognized units of measurement of the Socialist Republic of Vietnam; in cases where other units of measurement are used, they must be converted to officially recognized units of measurement of the Socialist Republic of Vietnam.

3.3. Currency units used in accounting

a) Currency unit in accounting: is the Vietnamese Dong (National symbol is “đ”; International symbol is “VND”) used for bookkeeping, preparing and presenting financial statements of enterprises.

In cases where the accounting entity mainly receives and pays in foreign currencies, it may choose one type of foreign currency as the currency unit for bookkeeping, preparing and presenting financial statements.

b) Selection of currency unit in accounting for small and medium enterprises with foreign investment capital

- Small and medium enterprises with foreign investment capital (hereinafter referred to as small and medium enterprises) that mainly receive and pay in foreign currencies shall base their decision to select a currency unit for accounting on the provisions of the Accounting Law and bear responsibility for such decisions under the law. When selecting a foreign currency as the currency unit for accounting, small and medium enterprises must notify the direct tax authority.

- When selecting a foreign currency as the currency unit for accounting, small and medium enterprises must meet the following criteria simultaneously:

+ Such currency unit must be primarily used in sales transactions and service provision of the enterprise, significantly influencing product prices and usually being the currency used in price determination;

+ Such currency unit must be primarily used in purchasing goods and services by small and medium enterprises and typically being the main currency used in calculating revenue, labor costs, and payments for raw materials, goods, and services.

- Small and medium enterprises with a parent company abroad can only choose a currency unit for accounting identical to that of the parent company's if they fall into one of the following situations:

+ The small and medium enterprise was established primarily for producing and processing products for the parent company, with most raw materials purchased from the parent company and products exported and consumed by the parent company;

+ The proportion of activities of the small and medium enterprise with the parent company or the proportion of business transactions conducted in the parent company's accounting currency is significant (over 70%).

c) Conversion of financial statements prepared in a foreign currency accounting unit to Vietnamese Dong when submitted to state management agencies

- Small and medium enterprises with foreign investment capital established and operating in Vietnam using a foreign currency as the accounting currency must, while preparing financial statements according to the accounting currency (foreign currency), also convert the financial statements to Vietnamese Dong when submitting them to state management agencies.

- Principles for converting financial statements prepared in a foreign currency accounting unit to Vietnamese Dong:

All items on the financial statements of the enterprise (both current and comparative figures) shall be converted at the average interbank foreign exchange rate published by the State Bank of Vietnam on the last day of the accounting period. If there is no average interbank foreign exchange rate on the last day of the accounting period, the rate on the nearest preceding day shall be used.

d) Audit of financial statements in cases where the accounting currency is a foreign currency

Financial statements prepared in a foreign currency accounting unit shall be audited according to the current regulations. When converted to Vietnamese Dong, financial statements prepared in a foreign currency accounting unit do not necessarily require auditing but only need confirmation from the auditor regarding the exchange rate conversion and the accuracy of the conversion.

đ) Changing the accounting currency unit

- When there is a significant change in management and business activities leading to the currency unit used in economic transactions no longer meeting the standards set out in point a, Clause 4.3, Section 4, Part I "General Provisions" Decision 48/2006/QD-BTC, small and medium enterprises may change the accounting currency unit. The change from one accounting currency unit to another accounting currency unit can only be implemented at the beginning of a new accounting period. Small and medium enterprises must notify the directly managing tax authority about the change in accounting currency unit no later than ten working days after the end of the accounting period.

- Exchange rates applied to items in the Balance Sheet when changing the accounting currency unit:

Items in the Balance Sheet shall be converted to the new accounting currency unit according to the average interbank exchange rate on the date of changing the accounting currency unit.

- Presentation of comparative information when changing the accounting currency unit

In the first accounting period following the change in the accounting currency unit, small and medium enterprises must prepare financial statements in the new accounting currency unit and restate comparative figures (the "Beginning of Year" column of the Balance Sheet and the "Previous Year" column of the Income Statement and Cash Flow Statement), specifically:

+ The "Beginning of Year" column of the Balance Sheet shall be presented based on the Balance Sheet prepared at the beginning of the fiscal year (the date of changing the accounting currency unit) using the average interbank exchange rate on the date of changing the accounting currency unit.

+ The "Previous Year" column of the Income Statement and Cash Flow Statement shall be presented based on the Income Statement and Cash Flow Statement prepared at the beginning of the previous year using the average interbank exchange rate for the immediately preceding year before the change in the accounting currency unit.

^­e) Notes to the financial statements

When converting financial statements (prepared in foreign currency) to Vietnamese Dong or when changing the accounting currency unit, small and medium enterprises must clearly state in the Notes to the Financial Statements the reasons for changing the accounting currency unit and the impacts (if any) on the financial statements due to the conversion of financial statements from foreign currency to Vietnamese Dong or the change in the accounting currency unit."

2. Section 5, 6, 7, 8, 9 of Part I "General Provisions" shall be amended and supplemented as follows:

- Re-numbering the Sections 5, 6, 7, 8, 9 to Sections "4, 5, 6, 7, 8".

- Corresponding points in the old Sections 5, 6, 7, 8, 9 shall be amended and supplemented correspondingly in the new Sections 4, 5, 6, 7, 8.

3. Section II of Part II "Accounting Chart of Accounts" shall be amended and supplemented as follows:

a) Add Account 171 - "Government Bond Repurchase Transactions".

b) Add Account 3389 - "Unemployment Insurance".

c) Amend the account number 431 - "Employee Welfare Fund" as follows:

- Change the account number 431 - "Employee Welfare Fund" to account 353 - "Employee Welfare Fund";

- Change the account number 4311 - "Award Fund" to account 3531 - "Award Fund";

- Change the account number 4312 - "Welfare Fund" to account 3532 - "Welfare Fund".

d) Add Account 3533 - "Welfare Fund Formed as Fixed Assets", which is a second-level account under Account 353 - "Employee Welfare Fund".

đ) Add Account 3534 - "Management Board Award Fund", which is a second-level account under Account 353 - "Employee Welfare Fund".

e) Add Account 356 - "Science and Technology Development Fund" and add two second-level accounts as follows:

- Account 3561 - Science and Technology Development Fund;

- Account 3562 - Science and Technology Development Fund Formed as Fixed Assets.

4. Part II "Accounting Chart of Accounts" shall supplement Section III as follows:

"III. Explanation of Content, Structure, and Recording Methods for Some Accounting Accounts

1. Accounting for Share Issuance Costs

In the case of a joint-stock company issuing shares, accounting records shall recognize direct costs related to the issuance of shares, recorded as:

Debit Account 4112 - Share Premium

Credit Accounts 111, 112...

2. Accounting for Increasing Capital Investment by Shareholders in a Joint-Stock Company

a. General provisions:

- The provisions for increasing capital investment by shareholders are supplemented in this Circular, including cases of issuing additional shares without receiving cash, such as: Issuing additional shares from share premium, undistributed profits (cash dividends in kind), and employee welfare funds.

- In all cases of issuing additional shares without receiving cash, the joint-stock company must comply with all procedures stipulated by law. Upon approval by the shareholders' meeting and authorization by the competent authority for the issuance of additional shares, the joint-stock company must record the adjustment of share capital according to the approved plan.

b. Accounting for Specific Transactions:

- In the case where a joint-stock company issues additional shares from the share premium, accounting shall be based on relevant accounting documents, recorded as:

Debit Account 4112 - Share Premium

Credit Account 4111 - Capital Investment by Shareholders.

- In the case where a joint-stock company issues additional shares from funds belonging to shareholders' capital, recorded as:

Debit Account 418 - Funds Belonging to Shareholders' Capital

Credit Account 4111 - Capital Investment by Shareholders.

Credit Account 4112 - Share Premium (if applicable).

- In the case where a joint-stock company issues additional shares from undistributed profits (cash dividends in kind), recorded as:

Debit Account 421 - Undistributed Profits

Credit Account 4111 - Capital Investment by Shareholders;

Credit Account 4112 - Share Premium (if applicable).

- In the case where a joint-stock company issues bonus shares from the award fund to increase capital investment by shareholders, recorded as:

Debit Account 3531 - Award Fund

Debit Account 4112 - Share Premium (Difference between selling price lower than par value - if applicable)

Credit Account 4111 - Capital Investment by Shareholders

Credit Account 4112 - Share Premium (Difference between selling price higher than par value - if applicable).

3. Accounting for the Case Where Investors Receive Shares Due to the Joint-Stock Company Increasing Capital Investment by Shareholders

When investors receive additional shares without payment due to the company using surplus capital, funds belonging to shareholders' equity, and undistributed post-tax profits (dividend distribution in the form of shares), it shall be carried out in accordance with the current Accounting System for Enterprises.

4. Accounting for Unemployment Insurance

The accounting for unemployment insurance uses Account 3389. This account is used to reflect the situation of contributions and payments for unemployment insurance for employees at enterprises as prescribed by laws on unemployment insurance. Small and medium-sized enterprises must maintain detailed accounting books to monitor unemployment insurance.

Structure and Content Reflected in Account 3389 - Unemployment Insurance

Debit Side: Amount of unemployment insurance paid to the unemployment insurance fund management agency.

Debit Side:

- Provision for unemployment insurance included in production and business costs;

- Deduction of unemployment insurance from employee wages.

Debit Balance: Amount of unemployment insurance provisioned but not yet paid to the unemployment insurance fund management agency.

Method of Accounting for Certain Main Economic Transactions

- Periodically provide for unemployment insurance included in production and business costs, record:

Debit Accounts 154, 642...

Credit Account 338 - Other Payables and Taxes Due (3389).

- Calculate the amount of unemployment insurance that employees must pay which is deducted from their wages, record:

Debit Account 334 - Employee Payables

Credit Account 338 - Other Payables and Taxes Due (3389).

- When paying unemployment insurance to the unemployment insurance fund management agency, record:

Debit Account 338 - Other Payables and Taxes Due (3389)

Credit Accounts 111, 112.

5. Accounting for Reward and Welfare Funds

a. The structure, content reflected, and accounting method of Accounts 3531, 3532 remain unchanged compared to Account 431 as stipulated in Decision No. 48/2006/QĐ-BTC dated September 14, 2006, of the Minister of Finance.

b. Account 3533 - Welfare Fund Forming Fixed Assets

This account is used to reflect the existing amount, increases and decreases in the welfare fund forming fixed assets of the enterprise.

Structure and Content Reflected in Account 3533 - "Welfare Fund Forming Fixed Assets"

Debit Side:

The welfare fund forming fixed assets decreases when depreciation of fixed assets is calculated or due to sale, liquidation, or discovery of shortages during inventory checks of fixed assets used for cultural and welfare activities.

Credit Side:

The welfare fund forming fixed assets increases when investment or purchase of fixed assets using the welfare fund is completed and put into use for cultural and welfare activities.

Credit Balance:

The amount of welfare fund forming fixed assets currently held at the end of the period.

Method of Accounting for Certain Main Economic Transactions

- When investing or purchasing fixed assets for use in cultural and welfare activities of the enterprise using the welfare fund, record:

Debit Account 211 - Fixed Assets (Original Cost)

Credit Accounts 111, 112, 241, 331,...

At the same time, record:

Debit Account 3532 - Welfare Fund

Credit Account 3533 - Welfare Fund Forming Fixed Assets.

- At the end of the accounting period, calculate depreciation of fixed assets invested or purchased using the welfare fund for cultural and welfare needs of the enterprise, record:

Debit Account 3533 - Welfare Fund Forming Fixed Assets

Credit Account 214 - Depreciation of Fixed Assets.

- When selling or liquidating fixed assets invested or purchased using the welfare fund for cultural and welfare activities:

+ Record reduction in sold or liquidated fixed assets:

Debit Account 3533 – Welfare Fund Forming Fixed Assets (Remaining Value)

Debit Account 214 – Depreciation of Fixed Assets (Depreciated Value)

Credit Account 211 – Tangible Fixed Assets (Original Cost)

+ Reflect income and expenses from selling or liquidating fixed assets:

* For expenses, record:

Debit Account 353 - Reward and Welfare Fund (3532)

Credit Accounts 111, 112, 334,...

* For income, record:

Debit Accounts 111, 112,...

Credit Account 353 - Reward and Welfare Fund (3532)

Credit Account 3331 - VAT Payable (If applicable).

c. Account 3534 - "Management Board Reward Fund"

This account reflects the existing amount, establishment, and expenditure of the Management Board Reward Fund.

Structure and Content Reflected in Account 3534 - "Management Board Reward Fund"

Debit Side:

Expenditures from the Management Board Reward Fund.

Credit Side:

Establishment of the Management Board Reward Fund from post-tax net profit.

Debit balance:

The amount of the Management Board Reward Fund currently held at the end of the period.

Method of Accounting for Certain Main Economic Transactions

- During the year, when temporarily setting aside the Management Board Reward Fund, record:

Debit Account 421 - Undistributed Net Profit

Credit Account 3534 - Management Board Reward Fund.

- At the end of the year, determine the additional Management Board Reward Fund to be set aside, record:

Debit Account 421 - Undistributed Net Profit

Credit Account 3534 - Management Board Reward Fund.

- When using the Management Board Reward Fund to reward individuals or groups within the enterprise, record:

Debit Account 3534 - Management Board Reward Fund

Credit Accounts 111, 112.

6. Accounting for Science and Technology Development Fund

Accounting for the Science and Technology Development Fund uses Account 356. This account is used to reflect the existing amount, increases and decreases in the Science and Technology Development Fund of the enterprise. The Science and Technology Development Fund of small and medium-sized enterprises can only be used for scientific and technological research and development in Vietnam.

Recording this account must follow certain principles

- The establishment and use of the Science and Technology Development Fund by the enterprise must comply with legal regulations.

- The Science and Technology Development Fund is recorded as part of business management costs to determine the results of operations for the period. Annually, the enterprise determines the level of establishment and use of the Science and Technology Development Fund according to legal provisions.

Structure and Content Reflected in Account 356 - "Science and Technology Development Fund"

Debit Side:

- Expenditures from the Science and Technology Development Fund.

- Reduction in the Science and Technology Development Fund forming fixed assets when calculating depreciation, remaining value of fixed assets when sold or liquidated, and liquidation costs of fixed assets formed from the Science and Technology Development Fund.

- Reduction in the Science and Technology Development Fund forming fixed assets when fixed assets formed from the Science and Technology Development Fund are transferred to serve production and business purposes.

Debit Side:

- Establishment of the Science and Technology Development Fund included in business management costs.

- Income from the sale or liquidation of fixed assets formed from the Science and Technology Development Fund used for scientific and technological research and development.

Debit balance: The remaining balance of the Science and Technology Development Fund of the enterprise at the end of the reporting period.

Account 356 - Science and Technology Development Fund has two sub-accounts:

Account 3561 - Science and Technology Development Fund: Reflects the current balance and the situation of establishing and spending the Science and Technology Development Fund;

Account 3562 - Science and Technology Development Fund that has formed Fixed Assets: Reflects the current balance and the situation of increasing and decreasing the Science and Technology Development Fund that has formed Fixed Assets (Science and Technology Development Fund that has formed Fixed Assets).

Accounting methods for some main economic transactions

- When setting up the Science and Technology Development Fund according to the prescribed regulations during the year, record:

Debit Account 642 - Business Management Expenses (6422)

Credit Account 356 - Science and Technology Development Fund.

- When spending the Science and Technology Development Fund for research and development purposes, record:

Debit Account 356 - Science and Technology Development Fund

Debit Account 133 - VAT deductible (if applicable)

Credit various Accounts 111, 112, 331...

- When investing in or purchasing fixed assets completed using the Science and Technology Development Fund for research and development purposes, record:

Debit Account 211 - Fixed Assets (Original Cost)

Debit Account 133 - VAT deductible (if applicable)

Credit various Accounts 111, 112, 331...

At the same time, record:

Debit Account 3561 - Science and Technology Development Fund

Credit Account 3562 - Science and Technology Development Fund that has formed Fixed Assets.

- At the end of the accounting period, calculate depreciation on fixed assets invested in or purchased using the Science and Technology Development Fund for research and development purposes, record:

Debit Account 3562 - Science and Technology Development Fund that has formed Fixed Assets

Credit Account 214 - Depreciation of Fixed Assets.

- When liquidating or selling fixed assets invested in or purchased using the Science and Technology Development Fund for research and development purposes:

+ Record reduction in liquidated or sold fixed assets:

Debit Account 3562 - Science and Technology Development Fund that has formed Fixed Assets (Remaining Value)

Debit Account 214 - Depreciation of Fixed Assets (Depreciation Value)

Credit Account 211 - Fixed Assets.

+ Record the amount received from liquidation or sale of fixed assets:

Debit various Accounts 111, 112, 131

Credit Account 3561 - Science and Technology Development Fund

Credit Account 3331 - VAT payable (33311).

+ Record direct costs related to liquidation or sale of fixed assets:

Debit Account 3561 - Science and Technology Development Fund

Debit Account 133 - VAT deductible

Credit various Accounts 111, 112, 331.

- When the research and development process ends, transfer fixed assets formed from the Science and Technology Development Fund to serve production and business purposes, accounting records:

Debit Account 3562 - Science and Technology Development Fund that has formed Fixed Assets (Remaining value of fixed assets formed from the fund not yet fully depreciated)

Credit Account 711 - Other Income.

From the time fixed assets are transferred to serve production and business purposes, depreciation of fixed assets is calculated as part of production and business expenses according to the current enterprise accounting regulations.

7. Accounting for Government Bond Repurchase Transactions

Accounting for Government Bond Repurchase Transactions uses Account 171. This account is used to reflect Government Bond Repurchase Transactions occurring during the period.

The structure, content, and accounting method for Account 171 "Government Bond Repurchase Transactions" shall be implemented in accordance with Circular No. 206/2009/TT-BTC dated October 27, 2009, issued by the Ministry of Finance on guiding accounting for Government Bond Repurchase Transactions.

8. Accounting for Internal Consumption Products, Goods, and Services

Internal consumption products, goods, and services are products, goods, and services provided by a business entity for its own consumption, excluding those used to continue the production and business processes of the entity. Determining the amount of deductible VAT, VAT payable, and tax declaration for VAT and corporate income tax is carried out in accordance with the relevant tax laws.

- If the products, goods, or services subject to VAT under the deduction method are consumed internally to serve the production and business of goods and services subject to VAT under the deduction method:

+ When issuing internal consumption of products or goods, record:

Debit Account 632 - Cost of Goods Sold

Credit various Accounts 155, 156.

+ Record internal sales revenue based on production costs or cost of goods, record:

Debit various Accounts 154, 642 (production costs or cost of goods)

Credit Account 511 - Sales Revenue and Service Revenue (detailed internal sales revenue).

Simultaneously, accounting records VAT for internally consumed products, goods, or services, record:

Debit Account 133 - VAT deductible

Credit Account 3331 - VAT payable (33311).

- If the products, goods, or services subject to VAT under the deduction method are consumed internally to serve the production and business of goods and services not subject to VAT or subject to VAT under the direct payment method, when issuing internal consumption of products or goods, accounting reflects internal sales revenue based on production costs or cost of goods, record:

+ When issuing internal consumption of products or goods, record:

Debit Account 632 - Cost of Goods Sold

Credit various Accounts 155, 156.

+ Record internal sales revenue based on production costs or cost of goods, record:

Debit various Accounts 154, 642... (Production costs or cost of goods plus (+) output VAT)

Credit Account 511 - Sales Revenue and Service Revenue (Production costs or cost of goods) (Detailed internal sales revenue)

Credit Account 3331 - VAT payable (33311).

9. Accounting for Asset Revaluation when Changing Ownership Form of Enterprises

In cases where small and medium-sized enterprises are permitted to re-evaluate the enterprise's value at the time of changing ownership form of the enterprise (except for state-owned enterprises converting to joint-stock companies) according to the law, accounting records asset revaluation differences as other income or other expenses, record:

- For the increased value of assets, record:

Debit related accounts

Credit Account 711 - Other Income.

- For the decreased value of assets, record:

Debit Account 811 - Other Expenses

Credit related accounts.”

5. Some provisions in Part III - "Financial Reporting System" are amended and supplemented as follows:

5.1. Point (2) Clause 4 Section I Part III "Financial Reporting System" supplements the following content:

"Small and medium enterprises (including domestic enterprises and foreign-invested enterprises) with headquarters located in export processing zones, industrial parks, high-tech zones must, in addition to submitting the annual Financial Report to relevant authorities as prescribed (Tax Authority, Business Registration Authority, Statistical Authority), also submit the annual Financial Report to the Management Board of the export processing zone, industrial park, or high-tech zone if requested."

5.2. Section I of Part Three "Financial Reporting System" shall be supplemented with the following content:

"5. Presentation of financial reports when changing ownership form of the enterprise

- For the Balance Sheet: The entire balance of assets, liabilities, and equity inherited by the old enterprise before the change shall be recorded as the occurrence of the new enterprise and presented in the "End of Year" column. The "Beginning of Year" column will not have any figures.

- For the Income Statement: Only figures from the time of change to the end of the first reporting period will be presented in the "This Year" column. The "Last Year" column will not have any figures.

- For the Cash Flow Statement: Only figures from the time of change to the end of the first reporting period will be presented in the "This Year" column. The "Last Year" column will not have any figures."

5.3. Amend and supplement some indicators on the Balance Sheet (Form B01-DNN):

- Change the code of the "Long-term debt" indicator - Code 320 on the Balance Sheet to code 330 on the Balance Sheet.

- Change the code of the "Long-term borrowings and debts" indicator - Code 321 on the Balance Sheet to code 331 on the Balance Sheet.

- Change the code of the "Provision for unemployment benefits" indicator - Code 322 on the Balance Sheet to code 332 on the Balance Sheet.

- Change the code of the "Other long-term payables" indicator - Code 328 on the Balance Sheet to code 338 on the Balance Sheet.

- Change the code of the "Long-term provision payable" indicator - Code 329 on the Balance Sheet to code 339 on the Balance Sheet.

- Change the code of the "Reward and welfare fund" indicator - Code 430 on the Balance Sheet to code 323 on the Balance Sheet. The figure to be entered into the "Reward and welfare fund" indicator is the credit balance of Account 353 - "Reward and welfare fund" on the General Ledger or Journal Ledger.

- Amend the "Advance payment from customers" indicator - Code 313 on the Balance Sheet. This indicator reflects the total amount prepaid by customers to purchase assets, goods, investment real estate, services at the reporting date. This indicator does not reflect unearned revenues (including advance receipts). The figure to be entered into the "Advance payment from customers" indicator is the detailed credit balance of Account 131 – "Receivables from customers" opened for each customer on the detailed ledger of Account 131.

- Add the "Government bond repurchase transaction" indicator - Code 157 on the Balance Sheet. This indicator reflects the value of government bonds held by the buyer before the expiration of the repurchase contract at the reporting date. The figure to be entered into the "Government bond repurchase transaction" indicator is the debit balance of Account 171 - "Government bond repurchase transaction" on the detailed ledger of Account 171.

- Add the "Government bond repurchase transaction" indicator - Code 327 on the Balance Sheet. This indicator reflects the value of government bonds held by the seller before the expiration of the repurchase contract at the reporting date. The figure to be entered into the "Government bond repurchase transaction" indicator is the credit balance of Account 171 - "Government bond repurchase transaction" on the detailed ledger of Account 171.

- Add the "Short-term unearned revenue" indicator - Code 328 on the Balance Sheet. This indicator reflects short-term unearned revenue at the reporting date. The figure to be entered into the "Short-term unearned revenue" indicator is the credit balance of Account 3387 - "Unearned Revenue" on the detailed ledger of Account 3387 (Revenue that will be realized within the next 12 months).

- Change the code of the "Short-term provision payable" indicator - Code 319 on the Balance Sheet to code 329.

- Add the "Long-term unearned revenue" indicator - Code 334 on the Balance Sheet. This indicator reflects long-term unearned revenue at the reporting date. The figure to be entered into the "Long-term unearned revenue" indicator is the credit balance of Account 3387 - "Unearned Revenue" on the detailed ledger of Account 3387 (The sum of the credit balance of Account 3387 - "Unearned Revenue" minus the short-term unearned revenue reflected in indicator 328).

- Add the "Science and technology development fund" indicator - Code 336 on the Balance Sheet. This indicator reflects the science and technology development fund not yet utilized at the reporting date. The figure to be entered into the "Science and technology development fund" indicator is the credit balance of Account 356 - "Science and technology development fund" on the ledger of Account 356.

5.4. Amend and supplement some indicators on the Cash Flow Statement (Form B03-DNN):

- Proceeds from selling government bonds under repurchase agreements (Repo) shall be reflected in the "Short-term and long-term loans received" indicator (Code 33);

- Payments for purchasing/selling back government bonds under repurchase agreements (Repo) shall be reflected in the "Principal repayment of loans" indicator (Code 34).

5.5. Points (1) and (2) Clause 5 Section III - Notes to the Financial Statements (Form B09-DNN) shall be amended and supplemented as follows:

6. Section I Part Five "Accounting System" shall be supplemented with the following content:

"10. Transfer of balances on accounting books when changing ownership form:

- When changing ownership form, small and medium enterprises must proceed to close their accounting books in accordance with the provisions of the law. In the first accounting period after the change, the enterprise must record the accounting books according to the following principles:

- For accounting books reflecting assets, liabilities, and owner's equity: The entire balance of assets, liabilities, and owner's equity on the old enterprise's accounting books shall be recorded as the opening balance on the new enterprise's accounting books. The opening balance line on the new enterprise's accounting books shall not have any figures."

Article 2: Implementation organization

1. This Circular takes effect from January 1, 2012. Other parts of the accounting system for small and medium enterprises that are not amended or supplemented by this Circular shall be implemented in accordance with the Accounting System for Small and Medium Enterprises issued pursuant to Decision No. 48/2006/QD-BTC dated September 14, 2006 of the Minister of Finance. Any provisions in the Accounting System for small and medium enterprises issued pursuant to Decision No. 48/2006/QD-BTC that conflict with the provisions of this Circular shall be implemented in accordance with the provisions of this Circular.

2. Provincial Tax Departments shall coordinate with relevant sectors to assist People's Committees of provinces and centrally-run cities in guiding and inspecting the implementation of the Accounting System for Small and Medium Enterprises at units under their jurisdiction.

3. The Director of the Accounting and Auditing Standards Department, the Director General of the State Revenue总局,办公厅主任,企业财务局局长以及相关单位负责人对本通告的解释、监督和执行负责。