Circular No. 14/2023/TT-BTC guiding accounting for the Vietnam Development Bank

 

CIRCULAR

Accounting guidance applicable to

Vietnam Development Bank

 

Pursuant toLaw on Accounting No. 88/2015/QH13dated November 20, 2015;

Pursuant toLaw on Credit Institutions No. 47/2010/QH12dated June 16, 2010;Law No. 17/2017/QH14dated November 20, 2017 amending and supplementing certain articles ofLaw on Credit Institutions No. 47/2010/QH12;

Pursuant toDecree No. 174/2016/NĐ-CPdated December 30, 2016 of the Government detailing certain provisions of the Law on Accounting;

Pursuant toDecree No. 46/2021/NĐ-CPdated March 31, 2021 of the Government on financial management system and performance evaluation for Vietnam Development Bank;

Pursuant toDecree No. 87/2017/ND-CPdated July 26, 2017 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Department of Accounting and Auditing Supervision;

The Minister of Finance issues this Circular guiding accounting applicable to Vietnam Development Bank,

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular stipulates certain specific contents regarding accounting accounts, accounting principles, structure and content reflected in accounting accounts; the preparation and presentation of Financial Statements and Consolidated Financial Statements; certain contents regarding accounting vouchers and accounting books of Vietnam Development Bank (hereinafter referred to as VDB).

2. This Circular does not apply to the determination of tax liabilities of VDB to the State budget.

3. For contents not guided in this Circular, VDB shall implement according to the provisions at:

a) Decision No. 479/2004/QĐ-NHNN dated April 29, 2004 of the Governor of the State Bank of Vietnam on the issuance of the Accounting Account System for Credit Institutions; Decision No. 1146/2004/QĐ-NHNN dated September 10, 2004 of the Governor of the State Bank of Vietnam amending Article 2 of Decision No. 479/2004/QĐ-NHNN; Circular No. 10/2014/TT-NHNN dated March 20, 2014 of the Governor of the State Bank of Vietnam amending and supplementing certain accounts in the Accounting Account System for Credit Institutions issued pursuant to Decision No. 479/2004/QĐ-NHNN; Circular No. 49/2014/TT-NHNN dated December 31, 2014 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of the Financial Reporting System for Credit Institutions issued pursuant to Decision No. 16/2007/QĐ-NHNN dated April 18, 2007 and the Accounting Account System for Credit Institutions issued pursuant to Decision No. 479/2004/QĐ-NHNN dated April 29, 2004 of the Governor of the State Bank of Vietnam; Circular No. 22/2017/TT-NHNN dated December 29, 2017 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of the Accounting Account System for Credit Institutions issued pursuant to Decision No. 479/2004/QĐ-NHNN dated April 29, 2004 and the Financial Reporting System for Credit Institutions issued pursuant to Decision No. 16/2007/QĐ-NHNN dated April 18, 2007 of the Governor of the State Bank of Vietnam; Circular No. 27/2017/TT-NHNN dated December 31, 2017 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of the Accounting Account System for Credit Institutions issued pursuant to Decision No. 479/2004/QĐ-NHNN dated April 29, 2004 and the Financial Reporting System for Credit Institutions issued pursuant to Decision No. 16/2007/QĐ-NHNN dated April 18, 2007 of the Governor of the State Bank of Vietnam; and other documents amending, supplementing, or replacing the above documents (if any).

b) Vietnamese Accounting Standards; Circulars guiding the implementation of accounting standards; and documents amending, supplementing, or replacing the above documents (if any).

Article 2. Applicability

The objects subject to this Circular include:

1. VDB, units under and affiliated with VDB include: the main office of VDB (hereinafter referred to as the Main Office); Departments and Divisions under the Main Office; Trading Branches, Branches, and units carrying out accounting entries.

2. Other organizations and individuals related to the implementation of accounting entries and the preparation and presentation of Financial Statements and Consolidated Financial Statements of VDB.

Chapter II

SPECIFIC PROVISIONS

Article 3. Provisions on accounting accounts

1. The list of accounting account systems and the content, structure, and recording methods for certain special accounting accounts of NHPT shall be implemented in accordance with the guidance provided in Appendix I attached to this Circular.

2. NHPT may open additional accounts from level 2 onwards for accounts that do not have level 2 or level 3 accounts specified, in order to meet management requirements.

3. NHPT may apply the accounting system issued pursuant to Decision No. 479/2004/QĐ-NHNN and the supplementary and amended documents of Decision No. 479/2004/QĐ-NHNN, with the following modifications:

a) Amend the names of some accounts in the list of accounting account systems applicable to NHPT as follows:

- Change the name of Level I account "10- Cash, foreign currency instruments, precious metals, and gemstones" to "10- Cash, foreign currency instruments";

- Change the name of Level II account "387- Assets substituted for the performance of obligations by guarantors who have transferred ownership rights to financial institutions pending resolution" to "387- Assets received as substitutes for the performance of obligations by guarantors who have transferred ownership rights to NHPT pending resolution";

- Change the name of Level I account "43- Financial institution issuance of securities" to "43- NHPT issuance of securities";

- Change the name of Level II account "462- Amounts payable to employees of financial institutions" to "462- Amounts payable to employees of NHPT"; "466- Amounts payable from internal transactions within the financial institution system" to "466- Amounts payable from internal transactions within the NHPT system";

- Change the name of Level III account "4844- Management Board Reward Fund" to "4844- Management and Supervisory Board Reward Fund";

- Change the name of Level I account "60- Capital of financial institutions" to "60- Capital of NHPT";

- Change the name of Level I account "61- Reserve fund of financial institutions" to "61- Reserve fund of NHPT";

- Change the name of Level I account "69- Undistributed profit" to "69- Unallocated operating results";

- Change the name of Level I account "70- Income from lending activities" to "70- Income from business operations";

- Change the name of Level I account "80- Expenses for lending activities" to "80- Expenses for business operations";

- Change the name of Level II account "856- Meal expenses for employees of financial institutions" to "856- Meal expenses for employees of NHPT"; "857- Medical expenses for employees of financial institutions" to "857- Medical expenses for employees of NHPT"; "859- Other expenses for employees of financial institutions" to "859- Other expenses for employees of NHPT";

- Change the name of Level II account "868- Expenses for organizational activities of financial institutions" to "868- Expenses for organizational activities of NHPT";

- Change the name of Level III account "8695- Expenses for auditing, inspection, and supervision of financial institution operations" to "8695- Expenses for auditing, inspection, and supervision of NHPT operations";

- Change the name of Level I account "88- Provision expenses, preservation, and deposit insurance expenses for customers" to "88- Provision expenses";

- Change the name of Level I account "96- Securities issued by financial institutions" to "96- Securities issued by NHPT";

- Change the name of Level II account "998- Collateral assets and securities of financial institutions" to "998- Collateral assets and securities of NHPT".

b) The accounting principles, structure, and reflection content of the accounts whose names have been changed according to the provisions of point a of this clause shall be implemented in accordance with the guidance provided in Decision No. 479/2004/QĐ-NHNN and the supplementary and amended documents of Decision No. 479/2004/QĐ-NHNN.

4. For accounts of type 7 - Income; type 8 - Expenses; account 39 - Interest and fees receivable; account 49 - Interest and fees payable, NHPT shall implement accounting in accordance with the financial management regulations and assessment of operational efficiency for NHPT.

Article 4. Provisions on financial reporting

1. The financial reporting system of the NHPT includes annual financial reports and interim financial reports.

a) The annual financial report of the NHPT includes:

b) The interim financial report of the NHPT (full form) includes:

2. The format of financial reports and guidelines for preparing and presenting indicators in the financial reports of the NHPT shall be implemented according to the guidance set out in Appendix II attached to this Circular.

3. Principles for preparing and presenting financial reports:

a) The preparation and presentation of financial reports must comply with accounting standards, and important information must be explained to help readers understand the true financial situation of the NHPT.

b) Financial reports must reflect the economic essence of transactions and events rather than their legal form (respecting substance over form).

c) Liabilities shall not be recorded at a value lower than the amount payable.

d) Indicators in the financial position statement shall be arranged in descending order of liquidity.

đ) Indicators in the statement of operations shall be arranged according to each business activity, matching revenues and expenses.

Article 5. Provisions on consolidated financial reporting

1. The NHPT is responsible for preparing consolidated financial reports to aggregate and present comprehensively and generally the asset status, liabilities, and equity ownership at the time of preparing the financial report; the situation and results of business operations during the reporting period of the entity. The NHPT prepares consolidated financial reports annually.

2. The consolidated financial reporting system includes the following reports:

3. The format of consolidated financial reports of the NHPT shall be implemented according to the guidance set out in Appendix III attached to this Circular.

4. The method for preparing consolidated financial reports of the NHPT shall be carried out in accordance with the provisions of Circular No. 202/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance guiding the method for preparing and presenting consolidated financial reports.

Article 6. Provisions on accounting vouchers

1. The NHPT may independently develop and design accounting voucher formats suitable for its operational characteristics and management requirements but must ensure that they contain the essential elements of accounting vouchers as prescribed by the Accounting Law and related guiding documents, amendments, supplements, or replacements (if any), and must provide transparent, complete, easily verifiable, controllable, and reconcilable information about economic transactions.

2. The NHPT applies the formats of various receipt vouchers and accounting vouchers for the content of payments to the State budget issued by the Ministry of Finance.

Article 7. Provisions on accounting books

1. The State Bank shall develop and design accounting book formats that are suitable for its operational characteristics and management requirements, ensuring compliance with the requirements stipulated in the Accounting Law and related guiding documents, amendments, supplements, and replacements (if any), and guaranteeing the provision of transparent, complete, easily verifiable, controllable, and reconcilable information about economic transactions.

2. All units under the State Bank that conduct accounting records must open, record, manage, preserve, and store accounting books in accordance with the regulations.

Chapter III

IMPLEMENTING PROVISIONS

Article 8. Transfer of balances on accounting accounts

1. The State Bank shall transfer balances on accounts currently reflected according to the Accounting System issued by Circular No. 15682/BTC-CĐKT dated December 24, 2008 of the Ministry of Finance regarding the approval of the accounting system applicable to the State Bank, and other supplementary guiding documents, to comply with the provisions of this Circular.

2. The State Bank must adjust the contents currently reflected on relevant accounts in accordance with the provisions of this Circular and ensure the presentation of financial statements in compliance with the law.

Article 9. Effectiveness and Implementation Organization

1. This Circular takes effect from July 1, 2023. When preparing and presenting the 2023 financial report, the State Bank must restate comparative information in accordance with the provisions of this Circular and provide an explanation for changes in the accounting system on the financial statements in accordance with the guidance provided in Vietnamese Accounting Standard No. 29 - Changes in Accounting Policies, Estimates, and Errors.

2. The Director of the Accounting and Auditing Supervision Department; the Chairman of the Board of Directors, General Director of the State Bank, and heads of related units are responsible for implementing this Circular.

3. In the course of implementation, if there are difficulties or obstacles, they are requested to reflect them to the Ministry of Finance for research and resolution./.