Circular No. 140/2007/TT-BTC guiding accounting for non-state institutions

CIRCULAR

Accounting Guidelines for Non-Publicly Funded Institutions

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. 77/2003/NĐ-CP dated July 1, 2003 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 53/2006/NĐ-CP dated May 25, 2006 of the Government on policies encouraging the development of non-public service supply institutions;

Pursuant to Decision No. 48/2006/QĐ-BTC dated September 14, 2006 of the Minister of Finance promulgating accounting regulations for small and medium-sized enterprises;

The Ministry of Finance hereby issues accounting guidelines applicable to non-publicly funded institutions as follows:

I. GENERAL PROVISIONS

1. The subjects to which this Circular applies are all non-publicly funded institutions providing services in the fields of education and training; healthcare; culture; sports; science and technology; environment; social affairs; population, family, and child protection (hereinafter referred to as non-publicly funded institutions) as stipulated in Decree No. 53/2006/NĐ-CP dated May 25, 2006 of the Government.

2. Non-publicly funded institutions shall conduct accounting work according to the accounting regulations for small and medium-sized enterprises issued by Decision No. 48/2006/QĐ-BTC dated September 14, 2006 of the Minister of Finance (hereinafter referred to as Decision No. 48/2006/QĐ-BTC) and this Circular. This Circular provides guidance on amending and supplementing some accounts and methods of recording some accounting accounts, ledgers, financial statement templates, explaining the content, method of preparation, and presentation of financial statements that differ from Decision No. 48/2006/QĐ-BTC.

3. Non-publicly funded institutions must maintain general ledger books and detailed ledger books to reflect economic and financial transactions occurring during the period and prepare financial statements as prescribed.

4. Accounting Period: The accounting period applicable to non-publicly funded institutions is the annual accounting period. The annual accounting period consists of twelve months, starting from January 1 to December 31 of the Gregorian calendar year. Non-publicly funded institutions with specific characteristics regarding organization and operation may choose the annual accounting period to be twelve full months of the Gregorian calendar year, beginning from the start of the first day of the first quarter of the current year to the end of the last day of the fourth quarter of the previous year. When implementing, they must notify the relevant management agencies, financial authorities, and directly managing tax authorities.

5. Public Disclosure

5.1. Content of Public Disclosure

Operating conditions and financial status, including the following contents:

- Public disclosure of fee and charge levels;

- Public disclosure of support levels and the amount of state budget support provided to non-publicly funded institutions;

- Public disclosure of contributions to the state budget made by non-publicly funded institutions;

- Asset status, liabilities, and owner's equity;

- Establishment and utilization of funds;

- Results of service provision activities and other activities;

- Income of employees;

- Other contents as prescribed by law.

5.2. Forms and Time Limit for Public Disclosure

Public disclosure shall be carried out through the following forms:

- Issuing publications;

- Notifying in writing;

- Posting publicly;

- Other forms as prescribed by law.

Non-publicly funded institutions must disclose annually within a period of 120 days from the end of the annual accounting period.

5.3. Responsibility for Public Disclosure: The Board of Directors, School Council, or Head (for institutions without a Board of Directors) of non-publicly funded institutions shall implement public disclosure according to their own operational charter.

6. Other Accounting Provisions not specified in Decision No. 48/2006/QĐ-BTC and this Circular shall be implemented in accordance with the Accounting Law, 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, and circulars guiding the implementation of accounting standards issued by the Ministry of Finance.

II- ACCOUNTING ACCOUNT SYSTEM

The accounting account system applicable to non-publicly funded institutions shall be implemented in accordance with Decision No. 48/2006/QĐ-BTC and the following amendments and supplements:

1. Supplement four level-one accounts:

Account 161 - Project Expenditure

Account 441 - Investment Capital Source

Account 461 - Project Capital Source

Account 466 - Capital Source Formed into Fixed Assets

and one account outside the Balance Sheet: Account 008 - Budget for Program and Project Expenditures.

2. Do not apply the following accounts in the Balance Sheet:

Account 3413 - Issued Bonds

Account 34131 - Bond Par Value

Account 34132 - Bond Discount

Account 34133 - Bond Premium

Account 4112 - Share Premium

Account 419 - Treasury Shares.

The list of the accounting account system applicable to non-publicly funded institutions is attached as Appendix No. 01.

3. Explanation of the content, structure, and recording methods for supplementary accounting accounts applicable to non-publicly funded institutions

3.1. Account 161 - Project Expenditure

This account is used to record expenditures for programs, projects, and topics approved by the State using state budget funds allocated for the implementation of national target programs.

a) Recording this account requires adherence to the following rules:

- Account 161 "Project Expenditure" is only used by non-publicly funded institutions assigned the task of implementing national target programs and receiving state budget funding to carry out programs, projects, and topics under national target programs approved by competent authorities;

- Accounting records must maintain detailed tracking of costs for each program and project and aggregate costs for project management and implementation according to the State Budget Classification and the approved budget for each program, project, and topic;

- For any income generated during the implementation of programs and projects, it should be recorded on the credit side of Account 711 "Other Income" (Details: Income from project implementation). Depending on the handling regulations of the funding authority, income generated during the implementation of projects can be transferred to related accounts;

- Account 161 should be maintained to track cumulative project expenditure from the start of the program or project until its completion and final settlement.

- At the end of the accounting year, if the settlement has not been approved, the entire amount of program and project expenditures for the year shall be transferred from Account 1612 "This Year" to Account 1611 "Last Year" for monitoring until the settlement report is approved.

b) Structure and content reflected in Account 161 - Project Expenditures

Debit Side: Actual expenditures for managing and implementing programs and projects.

Debit: 

- Amounts incorrectly charged that need to be recovered;

- Program and project expenditures settled with project funding sources.

Credit Balance: Unsettled program and project expenditures for unfinished programs/projects or completed but not yet approved.

Account 161 - Project Expenditures consists of two second-level accounts:

- Account 1611 - Last Year: Used to reflect expenditures for programs and projects belonging to last year's budget that have not been settled.

- Account 1612 - This Year: Reflects expenditures for programs and projects belonging to this year's budget.

Within each second-level account, non-state public institutions may open detailed accounts for program/project management expenses and implementation expenses according to management requirements.

c) Accounting methods for some main economic transactions

- When withdrawing cash from the treasury or withdrawing bank deposits to fund a project for implementing national target programs, record:

Debit Account 161 - Project Expenditures

Credit Account 111 - Cash

Credit Account 112 - Bank Deposits.

- Withdrawal of raw materials, materials, tools, and equipment used for a project to implement national target programs, record:

Debit Account 161 - Project Expenditures

Credit Account 152 - Raw Materials and Consumables

Credit Account 153 - Tools and Equipment.

- External services purchased for use in a project to implement national target programs, record:

Debit Account 161 - Project Expenditures

3. When receiving allocations of number drawing costs in cases of joint number drawings, based on allocation vouchers, record:

- Wages and allowances payable to dedicated staff and contractual employees of the project to implement national target programs, record:

Debit Account 161 - Project Expenditures

Credit Account 334 - Payable to Employees.

- Advance payments to be included in project expenditures, record:

Debit Account 161 - Project Expenditures

Credit Account 141 - Advances.

Withdrawing the budgeted expenditure for programs and projects to fund the implementation of national target programs, record:

Debit Account 161 - Project Expenditures

Credit Account 461 - Project Funding Sources.

Simultaneously credit Account 0081 - Budgeted Expenditure for Programs and Projects (Account outside the Balance Sheet).

- Purchasing fixed assets for national target programs, record:

Debit Account 211 - Fixed Assets

Credit Accounts 111, 112, 331...

Simultaneously, the accountant records:

Debit Account 161 - Project Expenditures

Credit Account 466 - Source of funds that have formed fixed assets.

- Transferring large repair costs of fixed assets of completed projects, record:

Debit Account 161 - Project Expenditures

Credit Account 241 - Construction in progress.

For project expenditures that violate regulations, exceed standards, or are not approved and must be recovered for processing, record:

Debit Account 138 - Other Receivables (1388 - Other Receivables)

Credit Account 161 - Project Expenditures.

- When income occurs, reduce project expenditures, record:

Debit Account 152 - Materials and Tools

Debit Account 112 - Bank Deposits

Credit Account 161 - Project Expenditures.

- When recovering project expenditures that violate regulations, exceed standards, or are not approved according to the decision of the competent authority, record:

Debit Accounts 111, 334

Credit Account 138 - Other Receivables (1388 - Other Receivables)

- When remitting state budget funds for project expenditures that violate regulations, exceed standards, or are not approved, record:

Debit Account 461 - Project Funding Sources

Credit Account 112 - Bank Deposits

- When settling approved project expenditures, transfer the project expenditures to reduce the funding source, record:

Debit Account 461 - Project Funding Sources

Credit Account 161 - Project Expenditures.

3.2. Account 441 - Investment Construction Fund

This account is used to reflect the current status and changes in the investment construction fund of non-state public institutions.

The investment construction fund of non-state public institutions is formed from the State Budget allocated to implement national target programs.

a) Recording this account requires adherence to the following provisions:

- Account 441 "Investment Construction Fund" is only used by non-state public institutions that receive the State Budget investment construction fund to implement national target programs;

- The investment construction fund can only be used to purchase fixed assets and construct projects that have been approved by the competent authority;

- Investment construction activities at non-state public institutions must comply with and respect the provisions of the Construction Law;

- The investment construction fund must be monitored separately for each project, project component, according to the content of the investment construction fund, and must monitor the amount of funds received from commencement to completion and handover for use;

- Upon completion of the investment construction project, the non-state public institution must proceed with asset handover for use and complete the investment construction fund settlement, reducing the investment construction fund and increasing the fund for formed fixed assets.

b) Structure and content reflected in Account 441 - Investment Construction Fund

Debit Side: Reduction in the investment construction fund due to:

- Approved expenditures for investment construction projects that have been canceled;

- Conversion of the investment construction fund into the fund for formed fixed assets upon completion of construction and procurement of fixed assets and their handover for use;

- Returning the investment construction fund to the State Budget;

- Other reductions in the investment construction fund.

4. Account 365 - Costs of Handling Collateralized Debts.: Increase in the investment construction fund due to receiving investment construction funds from the State Budget for implementing national target programs.

Credit Balance: Unspent investment construction fund or spent but not yet settled.

c) Accounting methods for some major economic transactions

- When receiving investment construction funds from the State Budget via payment orders, record:

Debit Account 112 - Bank Deposits

Credit Account 441 - Investment Construction Fund.

- When receiving investment construction funds from the State Budget according to the allocated investment construction budget:

+ When allocated the investment construction budget, debit Account 0082 "Allocated Investment Construction Budget" (Account outside the Balance Sheet)

+ When withdrawing the allocated investment construction budget for use, credit Account 0082 "Allocated Investment Construction Budget" (Account outside the Balance Sheet).

Based on the situation of withdrawing the allocated investment construction budget for use, the accountant records in related accounts, record:

Debit Account 111 - Cash (Withdrawn to the fund for expenditure)

Debit Account 152 - Raw Materials, Materials (Purchased materials and equipment for storage)

Debit Account 153 - Tools, Equipment (Purchased tools and equipment for storage)

Debit Account 241 - Construction in Progress (Direct expenditure items)

Debit Account 331 - Payable to Suppliers (3331) (Advance payments or payments to suppliers, contractors)

Credit Account 441 - Investment Construction Fund.

- When receiving investment construction funds to repay previously advanced funds from the Treasury when allocated the budget, record:

Debit Account 338 - Other Payables, Other Payments (Details of advanced funds from the Treasury)

Credit Account 441 - Investment Construction Fund.

Simultaneously credit Account 0082 "Allocated Investment Construction Budget" (Account outside the Balance Sheet).

- When procurement of fixed assets and construction projects are completed and handed over for use, and the investment construction fund settlement report is approved, record:

Debit Account 211 - Fixed Assets

Debit Account 152 - Raw Materials, Materials

Debit Account 153 - Tools, Equipment

Debit Account 441 - Investment Construction Fund (Approved canceled investment construction expenditures)

Debit Account 138 - Other Receivables (Investment Construction Costs approved for cancellation or incorrect expenditures not approved for recovery)

Credit Account 241 - Construction in Progress (Account 2412 - Construction)

At the same time, reduce the investment construction cost budget and increase the budget for fixed assets formed:

Debit Account 441 - Source of investment funds for construction

Credit Account 466 - Source of funds that have formed fixed assets.

- When returning excess investment construction cost funds to the State Budget, record:

Debit Account 441 - Source of investment funds for construction

Credit Account 112 - Bank Deposits.

3.3. Account 461 - Project Funding Source

This account is used by non-public entities to reflect the receipt, use, and settlement of project funding provided by the State Budget for implementing national target programs.

a) Recording this account requires adherence to the following rules:

- Account 461 "Project Funding Source" is only used by non-public entities that have been granted funding for projects, programs, and topics to implement national target programs approved by competent state authorities.

Do not reflect investment construction cost funding provided by the State Budget for non-public entities to implement national target programs in this account.

- Account 461 should be detailed according to each program, project, and each source of funding. The process of using funds must be reflected according to the State Budget Manual;

- Program and project funds must be used for their intended purposes, within the scope of the approved budget estimates, and in accordance with the content of activities;

- At the end of the accounting period or upon completion of the program or project, non-public entities must complete the settlement procedures for the receipt and use of program and project funding with the financial authority;

Additionally, non-public entities must also complete settlement procedures according to the content of work, by each period (year, six months, etc.), each phase, and the entire program according to the items of expenditure and the State Budget Manual of each program.

b) Structure and Content Reflected in Account 461 - Project Funding Source

Debit Side:

- Excess funds must be returned to the State Budget;

- Items permitted to reduce the project funding source;

- Transfer the expenses of the settled program or project to the project funding source;

Credit Side:

- The amount of program or project funding received during the period;

- When the Treasury pays the advance payment, transfer the received advance payment to the project funding source;

Debit balance: Unspent program or project funding or funding that has been used but not yet approved for settlement;

Account 461 - Project Funding Source, has three sub-accounts:

- Sub-account 4611 - Previous Year: Reflects the project funding source from the previous year's budget that has been used but not yet approved for settlement;

- Sub-account 4612 - Current Year: Reflects the project funding source from the current year's budget including unused funds from the previous year carried over to the current year and funds allocated in the current year;

c) Accounting methods for some main economic transactions

- When a non-public entity receives the decision of the competent authority allocating the program or project budget to implement the national target program, record on the debit side of Account 0081 "Program and Project Expenditure Budget" (off-balance sheet account);

- When withdrawing the budget for use, based on the withdrawal notice for program and project expenditure and related documents, record on the credit side of Account 0081 "Program and Project Expenditure Budget" (off-balance sheet account), simultaneously record:

Debit Account 111 - Cash (If cash is withdrawn and deposited in the fund)

Debit Account 152 - Raw Materials, Supplies (Purchase raw materials, supplies and store them in inventory)

Debit Account 153 - Tools, Equipment (Purchase tools, equipment and store them in inventory)

Debit Account 211 - Fixed Assets

Debit Account 241 - Construction in progress

Debit Account 331 - Amounts Payable to Sellers

Debit Account 161 - Project Expenses (Direct expenses)

Credit Account 461 - Project Funding Sources.

- When not allocated a budget, a non-public entity is allowed a temporary advance by the State Treasury, record:

Debit Account 152 - Materials and Tools

Debit Account 152 - Raw Materials, Materials

Debit Account 153 - Tools, Equipment

Debit Account 331 - Amounts Payable to Sellers

Debit Account 161 - Project Expenditures

Credit Account 338 - Other Payable, Payable (3388) (Detailed temporary advance from the State Treasury)

- When a non-public entity settles the temporary advance with the State Treasury (after being allocated a budget), based on the request for the State Treasury to settle the advance and the withdrawal notice, transfer the settled advance to the project funding source, record on the credit side of Account 0081 "Program and Project Expenditure Budget" (off-balance sheet account), simultaneously record:

Debit Account 338 - Other Payable, Payable (3388)

(Detailed temporary advance from the State Treasury)

Credit Account 461 - Project Funding Source

- In cases where a non-public entity is granted funding by the State Budget to implement a national target program through a Payment Order, when receiving the Notice of Credit from the State Treasury, record:

Debit Account 112 - Bank Deposits

Credit Account 461 - Project Funding Source

- Receipt of program and project funding to implement a national target program through raw materials, supplies, tools, and equipment, record:

Debit Account 152 - Raw Materials, Supplies

Debit Account 153 - Tools, Equipment

Credit Account 461 - Project Funding Source

- Receipt of program and project funding to implement a national target program through fixed assets, record:

Debit Account 211 - Fixed Assets

Credit Account 461 - Project Funding Source

Simultaneously, the accountant records:

Debit Account 161 - Project Expenditures

When installation is complete and the tangible fixed assets are handed over for use, record:

- At the end of the accounting period or upon completion of the program or project, transfer project expenses to the project funding source upon approval of the settlement, record:

Debit Account 461 - Project Funding Source

Credit Account 161 - Project Expenses

- At the end of the accounting year or upon completion of the program or project, excess project funding must be returned to the State Budget, record:

Debit Account 461 - Project Funding Source

Credit Account 111 - Cash on Hand

Credit Account 112 - Bank Deposits

3.4. Account 466 - Funding Source Forming Fixed Assets

This account reflects the current status and changes in the funding source forming fixed assets of non-public entities.

Account 466 is only used by non-public entities that have been granted funding by the State Budget for investment in construction and purchase of fixed assets to implement national target programs.

a) Recording this account requires adherence to certain regulations:

- The funding source forming fixed assets increases in the following cases:

+ Completion of construction or purchase of fixed assets using investment construction funds or project funds provided by the State Budget to implement national target programs;

+ Revaluation of fixed assets according to the decision of the State;

+ Other cases.

- The funding source forming fixed assets decreases in the following cases:

+ Reflecting the depreciation value of fixed assets during use;

+ Cases of reducing fixed assets: Liquidation, sale;

+ Other cases.

b) Structure and Content Reflected in Account 466 - Funding Source Forming Fixed Assets

Detailed Accounting: Open detailed accounts according to each overdue debt with collateral that have not yet been resolved; or according to each collateralized debt (if this asset has already been assigned to debt, thereby the bank has reduced the loan amount for the borrower in accordance with current laws) that have not yet been resolved (sold).: Decrease in the funding source forming fixed assets due to:

- Annual depreciation value of fixed assets;

- Remaining value of liquidated or sold fixed assets and other reduction cases...

- Reduction in the funding source forming fixed assets (remaining value) due to revaluation (reduction case).

Credit Side: Sources of funds for fixed assets increased due to:

- The value of fixed assets purchased, completed construction, handed over and put into use;

- An increase in the sources of funds for existing fixed assets (remaining value) due to revaluation (in case of increase).

Credit Balance: Sources of funds for existing fixed assets of non-state public institutions.

c) Accounting methods for some main economic transactions

- When purchasing fixed assets is completed, handed over and put into use:

+ In the case of withdrawing budget estimates for programs/projects to pay for the purchase of fixed assets to implement national target programs, debit Account 008 - Budget Estimates for Programs/Projects.

If installation is not required (purchase for immediate use), record:

Debit Account 211 - Fixed Assets

Credit Account 461 - Project Funding Source

If installation, testing, etc., is required during the installation and testing process, record the actual expenses incurred:

Debit Account 241 - Uncompleted Construction Projects (2412)

Credit Account 111 - Cash (Expenditure from cash reserve for installation costs)

Credit Account 331 - Amounts Payable to Suppliers (Amounts payable to contractors)

Credit Account 441 - Investment Funds for Construction Projects

Credit Account 461 - Project Funding Source

+ Upon completion of installation, testing, etc., and handing over fixed assets for use, record:

Debit Account 211 - Fixed Assets

Credit Account 241 - Uncompleted Construction Projects (2412).

+ All cases above must simultaneously record an increase in the sources of funds for fixed assets formed:

Debit Account 161 - Project Expenses (If fixed assets are purchased using project funds)

Credit Account 466 - Source of Funds Forming Fixed Assets.

- In the case of selling or liquidating fixed assets formed with budget funds to implement national target programs, when reducing sold or liquidated fixed assets, record:

Debit Account 466 - Remaining Value of Formed Fixed Assets

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

Credit Account 211 - Fixed Assets (Original cost).

Any amounts received or paid related to the sale or liquidation of fixed assets shall be recorded in relevant accounts according to the regulations of the competent authority.

- At year-end, calculate and reflect the depreciation value of fixed assets formed with budget funds to implement national target programs, record:

Debit Account 466 - Source of Operating Funds Formed from Fixed Assets

Credit Account 214 - Depreciation of Fixed Assets.

3.5. Account 008 - Budget Estimates for Programs/Projects

This account is used by non-state public institutions that receive budget funds to implement programs/projects to reflect the amount of state budget estimates allocated to programs/projects and the withdrawal of program/project estimates for use to implement national target programs.

a) Structure and content reflected in Account 008 - Budget Estimates for Programs/Projects.

Debit Side:

- Allocated budget estimates for programs/projects;

- Adjustments to the annual budget estimate (Record increases positively (+) and decreases negatively (-));

Credit Side:

- Withdrawal of program/project estimates for use;

- Amount refunded to restore the budget estimate (recorded negatively (-)).

Credit Balance: Remaining program/project estimates not withdrawn

Account 008 has two second-level accounts:

- Account 0081 “Budget Estimates for Programs/Projects”

- Account 0082 “Budget Estimates for Construction Investment Projects”.

4. Guidance on some special accounting contents of non-state public institutions

4.1. Accounting for fixed assets

4.1.1. Principles of accounting for fixed assets:

Non-state public institutions must follow accounting principles for fixed assets as prescribed in accounting standards and accounting regulations applicable to small and medium-sized enterprises, paying particular attention to the criteria specified for each type of fixed asset as follows:

- Tangible fixed assets are those physical assets held by non-state public institutions for use in production and business activities in accordance with the criteria for recognizing tangible fixed assets.

Tangible assets with independent structures, or multiple individual components linked together to form a system to perform one or more specific functions, if any component is missing, the entire system cannot operate, and if they meet all four criteria below, they are considered tangible fixed assets:

+ It is certain to derive economic benefits in the future from their use;

+ The original cost of the asset must be reliably determined;

+ They have a useful life of one year or longer;

+ They have a value as stipulated (VND 10,000,000 or more).

In the case of a system consisting of multiple individual components linked together, where each component has a different useful life and if any component is missing but the system can still perform its main function, and due to management requirements, each component must be managed separately and if each component meets the four criteria for fixed assets, it is considered an independent tangible fixed asset.

For working animals or animals producing products, if each animal meets the four criteria for fixed assets, it is considered a tangible fixed asset.

- Intangible fixed assets are those non-physical assets with determinable values held by non-state public institutions for use in production, business, service provision, or leasing to other entities, and which comply with the criteria for recognizing intangible fixed assets.

They are recognized as intangible fixed assets when an asset satisfies both the definition of intangible fixed assets and the four criteria for tangible fixed assets.

- Financial lease fixed assets: A financial lease is an asset where the lessor transfers most of the risks and rewards associated with ownership to the lessee. Ownership may be transferred at the end of the lease term.

4.1.2. Methods of accounting for fixed assets:

Non-state public institutions must apply accounting methods for each type of tangible fixed asset, intangible fixed asset, and financial lease fixed asset in accordance with the accounting regulations for small and medium-sized enterprises and the following supplementary guidelines:

a) Accounting for increases and decreases in fixed assets formed with budget funds to implement national target programs as directed in Accounts 161 “Project Expenses,” Account 441 “Investment Funds for Construction Projects,” Account 461 “Project Funds,” and Account 008 “Budget Estimates for Programs/Projects” in Section 3, Part II of this Circular.

b) Accounting for excess or missing tangible fixed assets:

All cases of discovering excess or missing fixed assets must identify the cause. Based on the "Fixed Asset Inventory Report" and the conclusions of the inventory committee, accurate and timely accounting entries should be made according to the specific cause:

- Excess fixed assets discovered:

+ If excess fixed assets are found outside the books (not recorded), the accountant must base the records on the fixed asset documentation to accurately record the increase in fixed assets, debiting:

Debit Account 211 - Fixed Assets

Credit Accounts 241, 331, 338, 411, etc.

If fixed assets (TSCĐ) are found to be surplus while in use, in addition to recording the increase in fixed assets, it must be based on the original cost and depreciation rate to determine the value of depreciation as the basis for calculating and supplementing the depreciation of fixed assets or supplementing the depreciation of fixed assets, recorded as follows:

Debit Accounts 154, 631, 642 (Fixed assets used for service provision activities and other business operations)

Debit Account 466 - Source of funds that have formed fixed assets (Fixed assets used for national target program activities)

Credit Account 214 - Depreciation of Fixed Assets (2141).

If surplus fixed assets are determined to belong to another entity, they must immediately notify the owner of such assets. During the waiting period for resolution, accountants must base on inventory documentation and temporarily reflect in Account 002 "Inventory and goods held for others, work-in-progress" (an account outside the Balance Sheet) to monitor custody.

- Missing fixed assets must be traced for cause, identify the responsible party, and handle according to current financial regulations.

In cases where there is an immediate decision on handling: Based on the approved "Record of Handling Missing Fixed Assets" and the fixed asset files, accountants must accurately determine the original cost and depreciation value of the fixed assets as the basis for reducing fixed assets and disposing of the remaining value of the fixed assets. Depending on the handling decision, record as follows:

For fixed assets used in service provision activities and other business operations that are missing, record:

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

Debit Accounts 111, 334, 138 (1388) (If the person at fault must compensate)

Debit Account 411 - Business Capital (If allowed to reduce capital)

Debit Account 811 - Other Expenses (If a non-public institution suffers loss)

Credit Account 211 - Fixed Assets.

For fixed assets used in national target program activities that are missing:

Record the reduction of fixed assets as follows:

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

Debit Account 466 - Remaining Value of Formed Fixed Assets

Credit Account 211 - Fixed Assets (Original Cost).

For the remaining value of missing fixed assets to be recovered according to the handling decision, record:

Debit Account 111 - Cash (If collecting money)

Debit Account 334 - Wages Payable (If deducting from employee wages)

Credit Relevant Accounts (Depending on the handling decision).

In cases where the cause of missing fixed assets has not been identified and is awaiting resolution:

For fixed assets used in service provision activities and other business operations that are missing: Record the reduction of fixed assets. The remaining value of missing fixed assets, record:

Debit Account 214 - Depreciation of Fixed Assets (2141) (Depreciation Value)

Debit Account 138 - Other Receivables (1381) (Remaining Value)

Credit Account 211 - Fixed Assets (Original Cost).

When there is a decision on handling the remaining value of missing fixed assets, record:

Debit Account 111 - Cash (Compensation Payment)

Debit Account 138 - Other Receivables (1388) (If the person at fault must compensate)

Debit Account 334 - Wages Payable (If deducting from employee wages)

Debit Account 411 - Business Capital (If allowed to reduce capital)

Debit Account 811 - Other Expenses (If a non-public institution suffers loss)

Credit Account 138 - Other Receivables (1381).

c) Tangible fixed assets decrease due to not meeting criteria to transfer to tools and equipment:

- If the fixed assets are used for project activities, record:

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

Debit Account 466 - Remaining Value of Formed Fixed Assets

Credit Account 211 - Fixed Assets (Original Cost).

- If the fixed assets are used for service provision activities and other business operations, record:

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

Debit Accounts 154, 631, 642 (Remaining value if small)

Debit Account 242 - Prepaid Expenses (Long-term) (Remaining value if large must be allocated gradually)

Credit Account 211 - Fixed Assets (Original Cost).

d) Accounting for depreciation of fixed assets:

All existing fixed assets of non-public institutions related to service provision activities and other business operations (including unused, unnecessary, and pending liquidation fixed assets) must be depreciated according to current regulations.

- On a monthly basis, when calculating and allocating depreciation of fixed assets to production and business costs and other expenses, record:

Debit Account 154 - Production and Business Costs in Progress, or

Debit Account 631 - Cost of Goods Sold (In case of periodic inventory accounting method)

Debit Account 642 - Business Management Costs

Debit Account 811 - Other Expenses (Depreciation of unused, unnecessary, and pending liquidation fixed assets)

Credit Account 214 - Depreciation of Fixed Assets.

- For fixed assets used for national target program activities, when calculating depreciation at the end of the fiscal year, record:

Debit Account 466 - Source of Operating Funds Formed from Fixed Assets

Credit Account 214 - Depreciation of Fixed Assets.

4.2. Accounting for collected and disbursed amounts in non-public training institutions

a) Principles of accounting for collected and disbursed amounts

- Non-public training institutions use Account 338 - Other Payables and Receivables to reflect amounts with collection and disbursement nature that do not belong to service provision activities and other business operations revenue such as health insurance premiums, service insurance fees,...

- Non-public institutions only use Account 338 - Other Payables and Receivables to reflect collected and disbursed amounts in cases where the difference between collected amounts exceeds disbursed amounts must be refunded to the payers according to agreements between non-public institutions and payers.

- Non-public training institutions must maintain detailed, clear, and distinct records to settle accounts and process differences (if any) according to the regulations of non-public institutions with payers such as students, children,... (customers receiving services).

b) Accounting methods

- Collected and disbursed amounts when received, based on payment receipts and related documents, record:

Debit Account 152 - Materials and Tools

Credit Account 338 - Other Payables and Receivables. (Detailed each collection and disbursement amount and detailed by each payer).

- When disbursing collected amounts such as paying insurance companies (for service insurance fees) or social security agencies (for health insurance), etc., record:

Debit Account 338 - Other Payables

Credit Relevant Accounts 111, 112, 141...

Credit Account 331 - Payable to Supplier

- At the end of the accounting period or upon completion of the work, in cases where collected amounts are not fully disbursed, based on agreements according to regulations between non-public training institutions and payers, when refunding payers the excess collected amounts, record:

Debit Account 338 - Other Payables and Receivables (Detailed each collection and disbursement amount and detailed by each payer)

Credit Accounts 111, 112.

4.3. Accounting for received support from the State Budget

a) Principles of accounting for support from the State Budget

- Non-public institutions must maintain detailed records and settle accounts according to state regulations on reporting and settlement for each type of funding supported by the state, including: Funding for scientific research and technology projects; Funding for national target programs; Training and retraining funding for workers; Grants and interest subsidies; Other funding.

- Non-public institutions must disclose the level of support and the amount of state budget support.

- Non-public institutions must record support from the state budget in relevant accounts in accordance with financial policies for each type of funding supported by the state budget.

b) Accounting method for grants from the State Budget

- In the case where non-public institutions receive the State Budget to fund national target programs.

When non-public institutions receive the State Budget funding for programs, projects, or investment capital for construction purposes to implement national target programs, the process of receiving, using, and settling accounts for State Budget support funds shall be reflected in additional accounting accounts as specified in Sections 1 and 3 of Part I of this Circular.

- Upon completion of the national target program, if fixed assets used for the activities of the national target program are transferred and recorded as an increase in business capital for use in service provision activities and other business operations according to the decision of the competent authority, record:

Debit Account 466 - Source of Operating Funds Formed from Fixed Assets

Credit account 411 - Business capital.

These fixed assets when used for service provision activities and other business operations must calculate depreciation monthly and at year-end, there is no need to calculate amortization of fixed assets.

- Accounting for grants from the State Budget records an increase in business capital:

In the case where non-public institutions receive the State Budget funding for scientific research and technology projects, or supplementary operating capital when newly established or during operation, upon receipt of State Budget grants, accounting shall record an increase in business capital:

Debit Accounts 111, 112, 152, 153, 211,...

Credit Account 411 - Business Capital (4118).

- Accounting for grants from the State Budget records an increase in revenue:

+ When receiving State funding for training and capacity building for employees of non-public institutions, record:

Debit Accounts 111, 112

Credit Account 511 - Revenue from Sales and Service Provision (5118).

+ Grants from the State Budget for financial assistance or interest subsidies to non-public institutions, upon receipt of State Budget grants, record:

Debit Accounts 111, 112

Credit Account 515 - Financial Revenue.

4.4. Accounting for bonuses, sponsorships, gifts, and donations

- When non-public institutions receive bonuses, sponsorships, gifts, and donations from organizations and individuals outside the unit (excluding State budget support funds) in the form of cash, materials, equipment, fixed assets, etc., for educational, training, health, cultural, sports activities, record:

Debit Accounts 111, 152, 211...

Credit Account 711 - Other Income.

- After fulfilling tax obligations to the State, if the remaining amount is allowed to be recorded as an increase in business capital (4118), record:

Debit account 421 - Undistributed profits

Credit Account 411 - Business Capital (4118).

4.5. Accounting for revenue from service provision activities

Revenue from service provision activities such as education and training; healthcare; culture; sports; science and technology; environment; social services; population, family, child protection and care of non-public institutions shall be reflected in Account 511 - Revenue from Sales and Service Provision.

4.5.1. Recording revenue from service provision activities should comply with the following regulations:

a) Amounts recorded in Account 511 include:

- Tuition fees (including accommodation fees, retake fees, retest fees), fees for specialized course guidance, thesis defense fees, admission test fees, examination fees, educational support fees such as career counseling, psychological support, etc.; fees for specialized training courses for students, trainees, learners, etc., in educational and training institutions;

- Library fees including: medical examination fees, treatment fees, laboratory testing fees, inpatient and outpatient treatment fees, rehabilitation fees, etc., in healthcare facilities;

- Ticket sales revenue for watching artistic performances, movies, exhibitions, sports competitions or training sessions, etc., in cultural and sports venues;

- Revenue from service contracts with organizations and individuals for training, vocational training, medical treatment, scientific research, application of science and technology, artistic performances, sports training, etc.;

- Income from asset leasing activities;

- Revenue from State grants to implement training and capacity-building programs for employees of non-public institutions;

- Payments made by the State to non-public institutions to fulfill tasks assigned by the State;

- Differences between revenues and expenditures that do not require repayment arising from agency collections and payments in non-public training institutions;

- Revenue from other sales and service provision activities (such as textbook sales, teaching material sales, reference book sales, drug sales, audiovisual media sales, artwork sales, souvenirs, clothing, sports equipment sales, photocopying service fees, parking service fees, cafeteria service fees, vending stall fees, etc.) (organized by non-public institutions themselves, ...).

In the case where non-public institutions subcontract external organizations and individuals to provide services such as photocopying, parking, cafeterias, vending stalls, etc., only the receivable amounts according to the quota for each period under the subcontracting agreements with these external organizations and individuals shall be reflected in Account 511.

b) When collecting money, non-public institutions must use invoices and receipts issued by the Ministry of Finance or approved in writing by the Ministry of Finance (General Department of Taxation) to print and use. If permitted to print by the Ministry of Finance, non-public institutions must strictly adhere to the management, issuance, and usage regulations for invoices and receipts set forth by the Ministry of Finance.

c) All revenues from service provision activities and other business operations must be fully and promptly reflected on the Credit side of Account 511 "Revenue from Sales and Service Provision". Account 511 "Revenue from Sales and Service Provision" reflects the revenue of goods sold and services provided, which are determined as sold within the period regardless of whether payment has been received or will be received.

d) For goods and services subject to VAT calculated under the deduction method, revenue from sales and service provision is the selling price excluding VAT. For goods and services not subject to VAT, or subject to VAT calculated under the direct method, revenue from sales and service provision is the total payment.

đ) In the case of tuition fees, ticket sales for sports competitions or training sessions, or artistic performances, etc., collected over multiple periods, they can only be recorded as revenue in the current period based on the results of completed work as of the date of preparing the balance sheet for that period.

e) If during the accounting period there arise deductions from revenue such as exemptions and reductions in tuition fees, medical expenses for students and patients who are children of war invalids, martyrs, or families in difficult circumstances, or children of officials, or excellent students and pupils,... these must be recorded separately. Revenue deductions are calculated to be subtracted from initially recorded revenue to determine net revenue as the basis for determining the business results of the accounting period.

g) The following cases shall not be recorded in Account 511:

- Advance payments for medical expenses, tuition fees, ticket sales,... before the service is provided;

- State funding to implement scientific and technological research projects;

- State funding to implement national target programs;

- Grants and interest subsidies from the State;

- Dividends from joint venture and cooperative activities; bank deposit interest, stock and bond interest;

- Other financial activity revenues and other income that are not considered sales and service revenue.

Account 511 must be detailed according to each type of service to suit each field of operation, such as in the education sector, private universities must detail revenue according to each regular and non-regular training system, at each level of undergraduate, college, postgraduate; in the non-regular system, revenue must be detailed according to each form of training: part-time, specialized, transfer, distance learning; in part-time training, revenue must be detailed according to the unit opening classes: at school or outside school,... At the same time, revenue from other services outside training such as scientific research, economic practice and experimentation, dormitory rental, parking, cafeteria, etc., must be detailed. In the healthcare sector, private hospitals must detail revenue according to each type of service such as: diagnosis and treatment; bed and room rental; other services (cafeteria, parking,...).

Private institutions must detail revenue according to each type of sales and service provision activity. Within each type of revenue, it must be detailed according to each revenue item, such as detailing revenue for each type of goods and service to serve the purpose of accurately determining business results according to management requirements of private institutions and fulfilling tax obligations to the State.

4.5.2. Accounting method for service provision revenue:

- Revenue from the volume of services consumed during the accounting period is determined.

+ For service provision activities such as teaching, vocational training, medical diagnosis and treatment, cultural, sports activities,... which are not subject to VAT, the revenue from completed service provision is reflected according to the amount of tuition fees, medical expenses, entrance tickets,... without VAT, recorded as follows:

Debit Accounts 111, 112, or

Debit account 131 - Receivables from customers

Credit Account 511 (5113) (detailed for each service, each revenue item).

+ When a private institution refunds tuition fees to students who withdraw from studies, or refunds medical expenses to patients who stop seeking medical treatment, or refunds entrance ticket fees when paying out money, record:

Debit account 131 - Receivables from customers

Credit Accounts 111, 112.

+ For service provision activities subject to VAT:

In the case where a private institution pays VAT under the deduction method:

Debit accounts 111, 112, 131

Credit Account 511 - Sales and Service Revenue (5113)

Credit Account 333 - Taxes and State Levies (3331).

In the case where a private institution pays VAT under the direct payment method:

Debit accounts 111, 112, 131

Credit Account 511 - Sales and Service Revenue (5113).

- In the case of collecting advance medical fees from patients upon admission for medical treatment, record:

Debit Account 152 - Materials and Tools

Credit Account 131 - Receivables from customers.

- When determining the amount of medical fees and other charges (room fees, testing fees, medication fees,...) due from patients upon discharge, record:

+ In the case where the amount due is greater than the advance payment received from the patient, record:

Debit Accounts 111, 112 (amount due additionally)

Debit Account 131 - Customer Receivables (amount already collected)

Credit Account 511 - Sales and Service Revenue (medical fees and other charges) (recorded in appropriate sub-accounts)

Credit Account 3331 - VAT Output Tax (if applicable).

+ In the case where the amount due is less than the advance payment received from the patient, record:

Debit Account 131 - Customer Receivables (amount already collected)

Credit Account 511 - Sales and Service Revenue (medical fees and other charges) (recorded in appropriate sub-accounts)

Credit Account 3331 - VAT Output Tax (if applicable)

Credit Accounts 111, 112 (excess amount refunded to the patient).

- When collecting tuition fees, sports training ticket fees, or performance ticket fees,... for multiple periods, record:

Debit Accounts 111, 112 (total amount received in advance)

Credit Account 3387 - Unearned Revenue

Credit Account 3331 - VAT Payable (if applicable).

Periodically, calculate and transfer the revenue of the accounting period corresponding to the volume of completed services, record:

Debit Account 3387 - Unearned Revenue (portion of revenue for the accounting period)

Credit Account 511 - Sales and Service Revenue (5113).

In the case of refunding tuition fees, ticket fees due to students withdrawing from studies or cancellation of performances, matches, record:

Debit Account 3387 - Unearned Revenue

Debit Account 3331 - VAT Payable (if applicable)

Credit Accounts 111, 112

- When settling agency collections and expenditures within private educational institutions, if there is a surplus in collections over expenditures that does not need to be refunded, record:

Debit Account 338 - Other Payables (3388)

Credit Account 511 - Sales and Service Revenue (5113).

- Commission paid by organizations and individuals to private institutions related to agency collections and expenditures, record:

Debit Accounts 111, 112, 338

Credit Account 511 - Sales and Service Revenue (5118).

- Revenue from services contracted out by private institutions to external organizations and individuals is reflected based on the amount receivable according to the quota for each period, record:

Debit Accounts 111, 112 (if payment has been received)

Debit Account 131 - Customer Receivables (if payment has not been received)

Credit Account 511 - Sales and Service Revenue (amount receivable).

- In the case where a private institution fulfills a government order, when the quantity of products or work completed and accepted is handed over, accounting reflects revenue paid by the government based on the settlement price and actual quantity accepted, record:

Debit account 131 - Receivables from customers

Credit Account 511 - Sales and Service Revenue.

- Other sales and service provision activities of private institutions are accounted for in accordance with Decision 48/2006/QD-BTC.

- Accounting for revenue deductions:

For tuition fees and medical service fees that have been recorded as revenue, when there is a decision to waive or reduce such fees for certain groups according to the regulations of non-state-owned institutions, record:

Debit Account 521 - Reductions from Revenue (5213)

Credit various Accounts 111, 112, 131.

- At the end of the accounting period, transfer the reductions from revenue due to waived or reduced tuition fees and medical service fees occurring during the period to actual revenue for the period to determine net revenue, record:

Debit Account 511 - Sales Revenue and Service Revenue (5113)

Credit Account 521 - Reductions from Revenue.

- At the end of the accounting period, transfer net revenue to Account 911 "Determination of Business Results", record:

Debit Account 511 - Sales Revenue and Service Revenue

Credit account 911 - Determining business results.

4.6. Accounting for Operating Costs of Service Provision

Operating costs of educational and training services; healthcare; cultural; sports; science and technology; environmental; social; population, family, child protection services of non-state-owned institutions are reflected in Account 154 - Work-in-Progress Production and Business Costs.

a) Recording operating costs of service provision must comply with the following provisions

- Only reflect the following cost items in Account 154:

+ Direct material costs for providing services (such as paper, pens, ink, chalk, workbooks, office supplies, teaching aids, teaching equipment, experimental and practical materials for educational and training activities; chemicals, intravenous fluids, blood, and other consumable medical supplies for healthcare services; sports equipment for sports activities,...);

+ Direct labor costs for personnel directly involved in service provision including payments to employees directly performing services under the management of non-state-owned institutions and hired workers based on each type of work such as wages, salaries, allowances, deductions from wages, social insurance, health insurance, trade union fees, etc.;

+ Common production costs are costs serving common production and business operations arising in departments, offices, divisions, units directly supporting service provision, including: Wages, salaries, allowances, and deductions from wages of managers in departments, offices, divisions, units, repair and depreciation expenses of fixed assets, electricity, water, sanitation expenses, rental expenses of assets, other external service expenses incurred in departments, offices, divisions, units directly providing services.

- Account 154 must be detailed according to each type of service suitable for each field of activity, such as in the education sector, private universities must detail according to each regular and non-regular training system, at each level of university, college, postgraduate; in the non-regular training system, it must detail costs according to each form of training: In-service, part-time, bridging, distance learning; in in-service training, it must detail costs according to the unit opening classes: at the school or outside the school,... At the same time, costs for other services outside training services such as scientific research, economic practice and experimentation, dormitory rental, vehicle parking, cafeteria refreshments, etc., must be detailed. In the healthcare sector, private hospitals must be detailed according to each type of service such as: outpatient and inpatient treatment; bed and room rental services; other services (cafeteria meals, vehicle parking,...).

- Do not record the following costs in Account 154:

+ Business management costs (such as advertising, marketing, hospitality, website operation costs, leaflet and brochure printing costs, costs related to wages and deductions from wages of staff in the management department of non-state-owned institutions,...);

+ Financial activity costs of the entity (such as stock investment costs, interest payment costs,...);

+ Other costs (such as costs for disposing and selling off fixed assets of the entity, fines for breach of economic contracts, tax penalties,...);

+ Program and project costs;

+ Costs for basic construction investment, subsidies for difficult circumstances for employees, support for other organizations and individuals;

+ Costs covered by other sources such as rewards, welfare, regular and extraordinary hardship subsidies,...

b) Method of Accounting for Operating Costs of Service Provision:

- When issuing materials, tools used directly for service provision activities, record:

- When exporting raw materials and goods for processing, it is recorded as:

Debit Account 133 - Deductible VAT (if applicable)

Credit Accounts 152, 153 (If materials, tools are issued from inventory for use)

Credit Accounts 111, 112, 141, 331,... (If purchased materials, tools are put into use immediately).

- In cases where tools and equipment are issued for use with significant value and used over multiple periods of service provision, they must be allocated gradually (such as equipment and machinery not meeting the criteria for fixed assets...). Upon issuance for use, record:

Debit Account 142 - Prepaid Expenses (If allocated short-term)

Debit Account 242 - Long-term Prepaid Expenses (If allocated long-term)

Credit Account 153 - Tools and Equipment.

Periodically, when allocating tool and equipment costs, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 142 - Prepaid Expenses, or

Credit Account 242 - Long-term Prepaid Expenses.

- Wages, salaries, allowances, and other amounts payable to employees directly performing services and managing departments, offices, divisions, units providing services, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 334 - Payable to Employees.

- Deduct social insurance, health insurance, and trade union fees calculated on the wages payable to employees directly performing services and managing departments, offices, divisions, units according to state regulations and agreements between non-state-owned institutions and employees, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 338 - Other Payables and Receivables (3382, 3383, 3384).

- Depreciation of fixed assets used for service provision activities, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 214 - Depreciation of Fixed Assets.

- Electricity, water, telephone, sanitation costs, etc., belonging to departments, offices, divisions, units providing services, record:

- When exporting raw materials and goods for processing, it is recorded as:

Debit Account 133 - Deductible VAT (if applicable)

3. When receiving allocations of number drawing costs in cases of joint number drawings, based on allocation vouchers, record:

- Employee training and development costs, maintenance and repair costs of assets, rental costs of premises, external service costs and other costs in cash directly serving service provision activities, record:

- When exporting raw materials and goods for processing, it is recorded as:

3. When receiving allocations of number drawing costs in cases of joint number drawings, based on allocation vouchers, record:

- In cases where rent for premises and office space serving service provision for multiple periods is paid, accounting must allocate gradually to business costs for the period. When paying the rent, record:

Debit Accounts 142, 242

Credit Accounts 111, 112.

When allocating, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Accounts 142, 242.

- In cases where non-state-owned institutions provide free services such as free medical examinations and drug distribution, free performances or sports training,... costs for these activities when incurred, record:

Debit Account 154 - Production and Business Costs in Progress (If costs for these activities are included in business expenses)

Debit Account 431 - Reward and Welfare Fund (If costs for these activities are taken from the welfare fund)

3. When receiving allocations of number drawing costs in cases of joint number drawings, based on allocation vouchers, record:

- Transfer the actual cost of the completed service volume determined to be consumed during the period, record:

Debit Account 632 - Cost of Goods Sold

Credit Account 154 - Work-in-progress production and business expenses.

4.7. Profit Distribution Accounting

a) Principles of profit distribution:

- Based on the annual business results, after covering all expenses, paying interest, and fully paying taxes to the state budget according to the law, the profit of non-state public institutions will be distributed to establish funds and distribute dividends to capital contributors;

- The establishment of funds and dividend distribution to capital contributors shall be decided by the Board of Management (or School Council) or the Head (for institutions without a Board of Management) in accordance with the institution's charter.

b) Methods of profit distribution accounting

- At the end of the accounting period, transfer the results of business operations:

+ In case of profit, record:

Debit account 911 - Determining business results

Credit Account 421 - Undistributed Profits (4212).

+ In case of loss, record:

Debit Account 421 - Undistributed Profits (4212)

Credit account 911 - Determining business results.

- When there is a decision to establish reward and welfare funds and other owner's equity funds from post-tax profits, record:

Debit account 421 - Undistributed profits

Credit Account 418 - Owner's Equity Funds

Credit Account 431 - Reward and Welfare Fund.

- When the Board of Management (or School Council) or the Head (for institutions without a Board of Management) decides to distribute dividends to capital contributors, the accountant records:

Debit account 421 - Undistributed profits

Credit Accounts 111, 112... (If dividends are paid immediately to capital contributors)

Credit Account 338 - Other Payables and Accruals (If dividends are not paid immediately to capital contributors)

Credit Account 411 - Operating Capital (If additional capital contributions are made from dividends distributed to capital contributors).

- At the beginning of the fiscal year, transfer undistributed profits of this year to last year's undistributed profits, record:

+ In case Account 4212 has a credit balance (Profit), record:

Debit Account 4212 - Undistributed Profits of This Year

Credit Account 4211 - Undistributed Profits of Last Year.

+ In case Account 4212 has a debit balance (Loss), record:

Debit Account 4211 - Undistributed Profits of Last Year

Credit Account 4212 - Undistributed Profits of This Year.

III- FINANCIAL REPORTS

The financial reporting system applicable to non-state public institutions is implemented according to the provisions of Part Three - Financial Reporting System issued under Decision No. 48/2006/QD-BTC and the following supplementary and amended contents:

1. Supplementary reports

The financial report of non-state public institutions is supplemented with Report B04-NCL and three mandatory annexes:

2. Supplementary and amended items in the following reports:

a) Balance Sheet:

- Remove two items "Surplus of Share Premium" (Code 412) and item "Treasury Shares" (Code 414).

- Add three items:

+ Item Source of Investment Financial Expenditure (Code 416)

+ Item Source of Financial Expenditure (Code 432)

+ Item Source of Financial Expenditure that has formed Fixed Assets (Code 433)

- Add one item outside the Balance Sheet: Item Budget Estimate of Program and Project Expenditure

b) Cash Flow Statement:

Amend three items in the Cash Flow Statement:

- Amend item "Cash received from issuance of shares and contribution of owners' capital" (Code 31) to item "Cash received from owners' capital contribution";

- Amend item "Cash paid for owners' capital contribution and repurchase of issued shares" (Code 32) to item "Cash paid for owners' capital contribution";

- Amend item "Dividends and profits paid to owners" (Code 36) to item "Profits paid to owners".

c) Notes to Financial Statements:

- In Section 7 - Changes in Owners' Equity, Part III: Remove two items "Surplus of Share Premium" and "Treasury Shares";

- Add Section 8 - Amount of State Support for Non-State Public Institutions (Detailed by Types of Expenditure) in Part III.

3. Financial Reporting System for Non-State Public Institutions

The financial reporting system prescribed for non-state public institutions includes:

a) Mandatory Reports

- Account Balance Sheet: Model F01-DNN

b) Encouraged Reports

- Cash Flow Statement: Model B03-NCL

The financial statement forms applicable to non-state public institutions are detailed in Appendix No. 02

4. Responsibilities, Time Limits for Preparing and Submitting Financial Reports

a) Responsibilities, Time Limits for Preparing and Submitting Financial Reports:

All non-state public institutions must prepare and submit annual financial statements in accordance with Decision No. 48/2006/QD-BTC and this Circular. The latest deadline for submitting annual financial statements is 90 days from the end of the fiscal year.

For educational institutions choosing an accounting year different from the calendar year, if they receive state funding to implement national target programs, they still have to prepare the Summary of Financial Expenditure and Settlement of Used Financial Expenditure (Model B04-NCL) and three annexes: Detailed Report on Project Financial Expenditure (Model F04-1NCL), Comparison Table of Budgetary Financial Expenditure at State Treasury (Model F04-2NCL), and Comparison Table of Advance Payment and Settlement of Advance Payment of Budgetary Financial Expenditure at State Treasury (Model F04-3NCL) to send to the sector management agency and the finance agency.

b) Recipients of Annual Financial Statements:

Annual financial statements of non-state public institutions must be submitted to the following agencies: Sector Management Agency, Finance Agency, Tax Authority, and Statistics Agency.

Báo cáo tài chính năm của cơ sở ngoài công lập phải gửi cho các cơ quan: Cơ quan quản lý ngành, cơ quan tài chính, cơ quan thuế và cơ quan thống kê.

5. Content and methods for establishing indices with additions and modifications in financial reports applicable to non-state institutions.

5.1. Balance Sheet:

5.1.1. Item B Part Equity (Code 400 = Code 410 + Code 430)

a) Equity (Code 410 = Code 411 + Code 412 + Code 413 + Code 414 + Code 415 + Code 416).

- Owner's Investment Capital (Code 411): This index reflects the total investment capital (contributed capital) of the contributors invested in non-state institutions. The data recorded in the index "Owner's Investment Capital" is the credit balance of Account 4111 "Business Capital Source" on the detailed ledger of Account 4111.

- Other Owner's Capital (Code 412): This index reflects the value of other owner's capital at the reporting date. The data recorded in the index "Other Owner's Capital" is the credit balance of Account 4118 "Other Capital" on the detailed ledger of Account 4118.

- Exchange Rate Difference (Code 413): This index reflects the exchange rate difference arising from changes in foreign currency exchange rates when recording accounting entries, not yet processed at the reporting date. The data recorded in the index "Exchange Rate Difference" is the credit balance of Account 413 "Exchange Rate Difference" on the General Ledger or Journal-General Ledger. If Account 413 has a debit balance, this index is recorded as a negative number enclosed in parentheses (...). This index only contains data for financial reports of newly established non-state institutions that are still in the process of investment construction and have economic transactions in foreign currencies.

- Funds Belonging to Equity (Code 414): This index reflects funds belonging to equity that have not been utilized at the reporting date. The data recorded in the index "Funds Belonging to Equity" is the credit balance of Account 418 "Funds Belonging to Equity" on the General Ledger or Journal-General Ledger.

- Undistributed Post-Tax Profit (Code 415): This index reflects undistributed profit (loss) at the reporting date. The data recorded in the index "Undistributed Post-Tax Profit" is the credit balance of Account 421 "Undistributed Post-Tax Profit" on the General Ledger or Journal-General Ledger. If Account 421 has a debit balance, this index is recorded as a negative number enclosed in parentheses (...).

- Construction Fund Sources (Code 416): This index reflects the total sources of construction fund currently available at the reporting date. The data recorded in this index is the credit balance of Account 441 "Construction Fund Sources" on the General Ledger or Journal-General Ledger.

b) Other Revenue and Funds (Code 430 = Code 431 + Code 432 + Code 433)

- Reward and Welfare Fund (Code 431): This index reflects the reward and welfare fund that has not been utilized at the reporting date. The data recorded in the index "Reward and Welfare Fund" is the credit balance of Account 431 "Reward and Welfare Fund" on the General Ledger or Journal-General Ledger.

- Revenue Sources (Code 432): This index reflects project revenue sources allocated but not fully utilized, or expenses exceeding project revenue sources. The data recorded in the index "Revenue Sources" is the difference between the credit balance of Account 461 "Project Revenue Sources" and the debit balance of Account 161 "Project Expenses" on the General Ledger or Journal-General Ledger. If the debit balance of Account 161 "Project Expenses" exceeds the credit balance of Account 461 "Project Revenue Sources," this index is recorded as a negative number enclosed in parentheses (...).

- Formed Fixed Assets Revenue Sources (Code 433): This index reflects the total formed fixed assets revenue sources currently available at the reporting date. The data recorded in the index "Formed Fixed Assets Revenue Sources" is the credit balance of Account 466 "Formed Fixed Assets Revenue Sources" on the General Ledger or Journal-General Ledger.

5.1.2. Indices outside the Balance Sheet

Program and Project Expenditure Budget: Reflects the program and project expenditure budget assigned by the competent authority and the withdrawal of the program and project expenditure budget for use. The data recorded in this index is taken from the debit balance of Account 008 "Program and Project Expenditure Budget" on the General Ledger or Journal-General Ledger.

5.2. Cash Flow Statement

- Cash Received from Owner's Capital Contributions (Code 31): This index is established based on the total cash received from the owners of non-state institutions contributing capital in the form of monetary contributions, cash received from state support recorded as an increase in business capital during the reporting period. This index does not include receiving owner's capital contributions in the form of assets.

The data recorded in this index is taken from the accounting books of Accounts "Cash" and "Bank Deposits," after reconciling with the accounting book of Account "Business Capital Source" (Detailed Owner's Capital Contributions) during the reporting period.

- Cash Paid for Owner's Capital Contributions (Code 32):

This index is established based on the total cash paid for returning owner's capital contributions to the owners of non-state institutions in various forms of repayment in cash.

The data recorded in this index is taken from the accounting books of Accounts "Cash" and "Bank Deposits," after reconciling with the accounting book of Account "Business Capital Source" during the reporting period. This index is recorded as a negative number enclosed in parentheses (...).

- Distributed Profit Paid to Owners (Code 36):

This index is established based on the total cash paid for distributed profits to the owners of non-state institutions during the reporting period. The data recorded in this index is taken from the accounting books of Accounts "Cash" and "Bank Deposits," after reconciling with the accounting books of Account "Undistributed Post-Tax Profit," and Account "Other Payables and Receivables" (Detailed Distributed Profit Payments) during the reporting period. This index is recorded as a negative number enclosed in parentheses (...).

This index does not include distributed profits that are not paid to owners but transferred to capital.

IV- ACCOUNTING SYSTEM

The accounting system applicable to non-state institutions shall be implemented according to Decision 48/2006/QĐ-BTC and subsequent amendments and supplements.

1. Add the following ledgers:

- Ledger for Tracking the Use of Revenue Sources: (S31-NCL)

- Detailed Ledger for Project Expenses: (S32-NCL)

- Ledger for Tracking Budget Estimates: (S33-NCL)

- Ledger for Tracking Advance Payment of Revenue Sources from State Treasury (S34-NCL)

The supplementary books are set out in Appendix number 03.

2. Remove the following book models:

Non-public institutions shall not apply the two book models prescribed in Decision No. 48/2006/QĐ-BTC as follows:

- Shareholding detail book (S22-DNN)

- Share issuance detail book (S21-DNN)

The list of accounting books applicable to non-public institutions is set out in Appendix number 03.

3. Explain the recording methods for supplementary book models:

3.1. Source fund usage tracking book (Model S31-NCL)

a) Purpose: This book is used to track the receipt and use of project funds and construction investment funds provided by the State budget to non-public institutions.

b) Basis and method of recording:

This book is recorded separately for each type of fund (project funds, construction investment funds) by type, item, and sub-item or item.

Each type of fund (project funds, construction investment funds) must be recorded in a separate volume, with each sub-item or item being recorded on a separate page.

The basis for recording is related budget withdrawal vouchers and other relevant vouchers;

- Column A: Record the date of entry;

- Columns B and C: Record the voucher number and date;

- Column D: Record the economic transaction content of the accounting voucher;

- Column 1: Record the unused funds carried forward from the previous period;

- Column 2: Record the actual funds received during the period;

- Column 3: Record the funds used during the period (Column 3 = Column 1 + Column 2);

- Column 4: Record the funds used and proposed for settlement during the period;

- Column 5: Record the reduction in funds during the period;

- Column 6: Record the remaining unused funds to be carried over to the next period, calculated as follows: Subtract the amount used and the reduction from the funds used during the period (Column 6 = Column 3 - Column 4 - Column 5).

3.2. Project expenditure detail book (Model S32-NCL)

a) Purpose: This book is used to aggregate all expenses incurred for each program or project to manage and monitor the expenditure of program and project funds, construction investment funds provided by the State budget to non-public institutions for implementing national target programs, and to provide data for preparing final reports on the use of program and project funds and construction investment funds provided by the State budget for implementing national target programs.

b) Basis and method of recording:

The basis for recording is accounting vouchers or summary tables of accounting vouchers for project expenditures. The book is bound into volumes and recorded separately for each program or project according to the content of project management and implementation expenditures and the State Budget classification;

- Each type and item opens a new page, each sub-item opens a separate page;

- Column A: Record the date of entry;

- Columns B and C: Record the voucher number and date of the accounting voucher used for recording;

- Column D: Economic transaction content of the accounting voucher;

- Column 1: Total debit balance of the relevant account (Account 161 "Project Expenditure" or Account 241 "Construction in Progress") on the voucher;

- Columns 2 to 7: Record corresponding sub-columns based on the content of the voucher;

- Column 8: Total credit balance of the relevant account (Account 161 "Project Expenditure" or Account 241 "Construction in Progress") (Any reductions in expenditure);

At the end of the period: Sum up total occurrences, cumulative totals from the beginning of the year, and cumulative totals from the start to the end of the period.

3.3. Budget tracking book (Model S33-NCL)

a) Objectives: This book is used to track the allocated budget and the receipt of budgets by non-public institutions that are allocated budgets for programs and projects to implement national target programs.

b) Basis and method of recording:

Based on the Decision allocating the budget and the Budget Withdrawal Certificate, record for each type of budget and according to Type, Item, Sub-item, and Item. The book is divided into two parts:

- Part I: Allocation of budget

+ Column A: Record the budget situation, including: Remaining budget from last year transferred over; Budget allocated at the beginning of this year and additional budget allocated during the year (Additional allocation in which quarter is recorded in that quarter), Used budget in the year (Used budget = Remaining budget from last year transferred over + Allocated budget at the beginning of the year + Additional allocated budget).

+ Column 1: Record the total budget

+ Columns 2 to 5: Record the allocated budget for this year

Where:

Budget allocated for Quarter I: Recorded in Column 2

Budget allocated for Quarter II: Recorded in Column 3

Budget allocated for Quarter III: Recorded in Column 4

Budget allocated for Quarter IV: Recorded in Column 5

- Part II: Tracking receipt of budget

+ Column A: Record the Sub-item withdrawn from Type, Item, Sub-item

+ Columns B and C: Record the voucher number and date of the budget receipt voucher

+ Column D: Record the content of the budget withdrawal

+ Column 1: Record the withdrawn budget

+ Column 2: Record the budget to be refunded

+ Column 3: Record the cancelled budget

+ Column 4: Record the remaining budget

At the end of the quarter, sum up the receipts in the quarter

3.4. Treasury advance payment tracking book (Model S34-NCL)

a) Purpose: The treasury advance payment tracking book is used for non-public institutions receiving State budget funds for programs and projects and construction investment funds to implement national target programs to track the advance payment of funds, the settlement of advanced payments, and the outstanding advance payments with the Treasury.

b) Basis and method of recording:

- Advance payment type: Clearly indicate whether it is an advance payment before budget allocation or an advance payment after budget allocation but before settlement conditions are met;

- Fund type: Clearly indicate whether it is a program and project fund or a construction investment fund;

The basis for recording is the information on vouchers related to the receipt of advances from the Treasury and requests for Treasury advance payments, budget withdrawal certificates, etc.

- Columns A, B, and C: Record the date of entry, voucher number, and date of the accounting voucher used for recording;

- Column D: Explain the content of the voucher;

- Column 1: Record the advanced funds;

- Column 2: Record the settled advanced funds;

- Column 3: Record the returned advanced funds;

- Column 4: Record the outstanding advanced funds.

V. IMPLEMENTATION

1. This Circular takes effect from January 1, 2008. Economic activities occurring before January 1, 2008, shall be implemented in accordance with Decision No. 12/2001/QĐ-BTC dated March 13, 2001, issued by the Minister of Finance.

Non-public institutions shall close their accounting books at the end of December 31, 2007, to transfer the balances of old accounting accounts to new accounting accounts from January 1, 2008, in accordance with the Accounting Regulations issued under Decision No. 48/2006/QĐ-BTC and this Circular.

Decision No. 12/2001/QD-BTC dated March 13, 2001, of the Minister of Finance promulgating the Accounting System applicable to non-state units operating in the fields of education-training, culture, health, physical education and sports; science and technology; environment; social affairs; population, family, and child protection and care becomes ineffective from January 1, 2008.

2. Provincial Tax Departments shall coordinate with relevant sectors to assist the People's Committees of provinces and centrally governed cities in guiding and inspecting the implementation of the Accounting System for non-state institutions within their jurisdiction.

In the course of implementation, if there are any difficulties, they are requested to report promptly to the Ministry of Finance for study and resolution./.