Circular No. 14634/TC/CĐKT regarding the continued implementation of accounting systems for state accounting entities following the effectiveness of the Accounting Law and Decree No. 128/2004/NĐ-CP.

LETTER

OF THE MINISTRY OF FINANCE NUMBER 14634-TC/CĐKT ON DECEMBER 13, 2004 REGARDING THE CONTINUOUS IMPLEMENTATION OF ACCOUNTING REGULATIONS APPLICABLE TO UNITS IN THE STATE ACCOUNTING FIELD
||| UNITS ENGAGED IN STATE ACCOUNTING

Respectfully submitted to: ||| Ministries, ministerial-level agencies, and agencies under the Government

- PROVINCES AND URBAN AREAS UNDER THE CENTRAL GOVERNMENT

||| The Accounting Law was adopted by the National Assembly on June 17, 2003, and the Government has issued Decree No. 128/2004/NĐ-CP dated May 31, 2004, detailing and guiding the implementation of certain provisions of the Accounting Law applicable to state accounting (hereinafter referred to as Decree No. 128/2004/NĐ-CP). The Ministry of Finance is currently studying, revising, and rebuilding accounting regulations applicable to units engaged in state accounting in accordance with the provisions of the Accounting Law and Decree No. 128/2004/NĐ-CP for issuance at the earliest possible time. To ensure that accounting work at units engaged in state accounting is carried out in compliance with the provisions of relevant legal documents, the Ministry of Finance guides the continued implementation of accounting regulations applicable to units engaged in state accounting as follows: ||| 1. Regarding the implementation of accounting regulations issued by the Ministry of Finance or approved by the Ministry of Finance for ministries, ministerial-level agencies, and agencies under the Government to issue after the Accounting Law and Decree No. 128/2004/NĐ-CP come into effect.

1.1 - The provisions of the State Budget Accounting System and Treasury Operations Accounting System issued pursuant to Decision No. 130/2003/QĐ-BTC dated August 18, 2003, of the Minister of Finance shall continue to be implemented according to the provisions of the Ministry of Finance.

1.2 - Regarding the organization of training for Chief Accountants and issuing Chief Accountant Training Certificates, it shall be implemented in accordance with Article 46 of Decree No. 128/2004/NĐ-CP and the contents stipulated in Decision No. 43/2004/QĐ-BTC dated April 26, 2004, of the Minister of Finance promulgating the "Regulations on the Organization of Training and Issuance of Chief Accountant Training Certificates."

1.3 - Regarding the hiring of accountants and Chief Accountants, it shall be implemented in accordance with Article 49 of Decree No. 128/2004/NĐ-CP and the contents stipulated in Decision No. 59/2004/QĐ-BTC dated July 9, 2004, of the Minister of Finance promulgating the "Regulations on Examination and Issuance of Auditor Certification and Accounting Practice Certification."

1.4 - The provisions of the Accounting System for Enforcement Activities approved by the Ministry of Finance pursuant to Circular No. 12020/TC/CĐKT dated October 22, 2004, for the Ministry of Justice to issue pursuant to Decision No. 572/2004/QĐ-BTP dated October 25, 2004, shall continue to be implemented according to the provisions of the Ministry of Justice.

2. Regarding the implementation of the Accounting System for Administrative and Public Institutions issued pursuant to Decision No. 999-TC/QĐ/CĐKT dated November 2, 1996, of the Minister of Finance and

Circulars guiding amendments and supplements to Decision No. 999-TC/QĐ/CĐKT. 2.1 - The provisions in Part One "General Provisions on the Accounting System for Units of Administrative and Public Institutions"; Chapter I Part Two "General Principles on Accounting Vouchers for Units of Administrative and Public Institutions"; Chapter I Part Three "General Principles on the Application of the Accounting Account System for Units of Administrative and Public Institutions"; Chapter I Part Four "General Provisions on Accounting Ledgers"; Chapter I Part Five "General Provisions on Financial Statements" in the Accounting System for Administrative and Public Institutions issued pursuant to Decision No. 999-TC/QĐ/CĐKT dated November 2, 1996, which contradict the provisions of the Accounting Law and Decree No. 128/2004/NĐ-CP, shall be abolished and implemented according to the provisions of the Accounting Law, Decree No. 128/2004/NĐ-CP, and the guidance documents of the Ministry of Finance listed in Appendix No. 01 attached hereto.

2.2 - Other provisions and provisions regarding the list, structure, forms, methods of recording accounting vouchers, accounting accounts, ledgers, and financial statements in the Accounting System for Administrative and Public Institutions issued pursuant to Decision No. 999-TC/QĐ/CĐKT mentioned above and the provisions in the Circulars guiding amendments and supplements to the Accounting System for Administrative and Public Institutions listed in Appendix No. 01 attached hereto, which do not contradict the Accounting Law and Decree No. 128/2004/NĐ-CP, shall continue to be implemented.

3. Regarding the implementation of other accounting systems issued by the Minister of Finance

3.1 - The provisions in Part One "General Provisions" of the accounting systems issued by the Ministry of Finance listed in Appendix No. 02 attached hereto, which contradict the provisions of the Accounting Law and Decree No. 128/2004/NĐ-CP, shall be abolished and implemented according to the provisions of the Accounting Law, Decree No. 128/2004/NĐ-CP, and the guidance documents of the Ministry of Finance listed in Appendix No. 02 attached hereto.

3.2 - Other provisions and provisions regarding the list, structure, forms, methods of recording accounting vouchers, accounting accounts, ledgers, and financial statements in the accounting systems issued by the Ministry of Finance listed in Appendix No. 02 attached hereto, which do not contradict the Accounting Law and Decree No. 128/2004/NĐ-CP, shall continue to be implemented.

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||| Accounting systems already approved in writing by the Ministry of Finance for ministries, ministerial-level agencies, and agencies under the Government to issue, listed in Appendix No. 03 attached hereto, are requested to review all provisions in these accounting systems if they contradict the provisions

of the Accounting Law, Decree No. 128/2004/NĐ-CP, and the guidance documents of the Ministry of Finance, then they must cooperate with the Ministry of Finance to study, consider adjustments, and rebuild them in accordance with current accounting laws and regulations and suitable for the characteristics of the ministry or sector. In the meantime, if timely revisions and supplements have not been made, they should be implemented according to the provisions of the Accounting Law, Decree No. 128/2004/NĐ-CP, and the provisions in the accounting systems already issued upon approval by the Ministry of Finance if they do not contradict the Accounting Law and Decree No. 128/2004/NĐ-CP. 5. Regarding the organization of accounting staff and accounting practice for units engaged in state accounting, it shall be implemented in accordance with the provisions of Decree No. 128/2004/NĐ-CP and other guidance documents.

5.1 - The arrangement of accounting personnel, Chief Accountants, and Accounting Supervisors shall be implemented in accordance with Articles 44, 45, 46, and 47 of Decree No. 128/2004/NĐ-CP and the Joint Circular of the Ministry of Finance and the Ministry of Home Affairs guiding standards, conditions, procedures for appointment, dismissal, replacement, and classification of allowances for Chief Accountants and Accounting Supervisors in accounting units

||| engaged in state accounting. accounting under state accounting.

5.2. The engagement of accounting services and the appointment of Chief Accountants shall be carried out in accordance with Article 49 of Decree No. 128/2004/NĐ-CP and the contents stipulated in Decision No. 59/2004/QĐ-BTC mentioned in item 1.3, Section 1 of this circular.

6. Accounting units shall implement the provisions below of Decree No. 128/2004/NĐ-CP and will continue to be guided in the near future.

6.1. Regarding electronic vouchers: Implement in accordance with the provisions set forth in Articles 10, 11, 12, and 14 of Decree No. 128/2004/NĐ-CP and will be further guided after the National Assembly passes the Law on Electronic Transactions. 6.2. Regarding bookkeeping by computer: Implement in accordance with the provisions set forth in Article 19 of Decree No. 128/2004/NĐ-CP and standards and conditions for accounting software will be further guided and issued in the near future.

Above are some issues aimed at addressing transitional measures for implementing accounting systems after the Accounting Law and Decree No. 128/2004/NĐ-CP come into effect for state accounting units. The Ministry of Finance requests that ministries, ministerial-level agencies, government-affiliated agencies, provincial people's committees, and centrally-administered city people's committees direct and organize the implementation according to the measures stated above.

During the implementation process, if there are any difficulties, please report to the Ministry of Finance for timely resolution.

Administrative and public service accounting regulations issued pursuant to

Appendix No. 01

Mode Decision No. 999-TC/QĐ/CĐKT dated November 2, 1996 of the Ministry of Finance and subsequent amendments and supplements thereto
1. Decision No. 999-TC/QĐ/CĐKT dated November 2, 1996 of the Ministry of Finance promulgating the System of Accounting Regulations for Administrative and Public Service Units;

2. Circular No. 165/1998/TT-BTC dated December 18, 1998 of the Ministry of Finance guiding the accounting treatment of inventory and asset revaluation for administrative and public service units as of midnight January 1, 1998;

3. Circular No. 184/1998/TT-BTC dated December 28, 1998 of the Ministry of Finance guiding the accounting of inventory valuation, goods stock, and completed construction works at year-end for administrative and public service units;

4. Circular No. 185/1998/TT-BTC dated December 28, 1998 of the Ministry of Finance guiding the accounting of VAT and corporate income tax for administrative and public service units;

5. Circular No. 109/2001/TT-BTC dated December 31, 2001 of the Ministry of Finance guiding the accounting of receiving and using non-repayable aid; dated November 29, 2006 and the Law amending and supplementing several articles of the Law on Tax Administration 6. Circular No. 121/2002/TT-BTC dated December 31, 2002 of the Ministry of Finance guiding the accounting of revenue-generating public service units;

7. Circular No. 03/2004/TT-BTC dated January 13, 2004 of the Ministry of Finance guiding the accounting of administrative and public service units implementing the State Budget Law and cost allocation.

Appendix No. 02

Accounting regulations promulgated by the Ministry of Finance

1. Accounting regulations for tourism administrative and public service units issued together with Decision No. 1899/1998/QĐ-BTC dated December 19, 1998 of the Minister of Finance;

2. Accounting regulations for securities trading centers issued together with Decision No. 105/1999/QĐ-BTC dated August 30, 1999 of the Minister of Finance;

3. Accounting regulations for project owners issued together with Decision No. 214/2000/QĐ-BTC dated December 28, 2000 of the Minister of Finance;

4. Accounting regulations applicable to non-state organizations operating in education, healthcare, culture, and sports sectors issued together with Decision No. 12/2001/QĐ-BTC dated March 13, 2001 of the Minister of Finance;

5. Accounting regulations for village budgets and finances issued together with Decision No. 141/2001/QĐ-BTC dated December 21, 2001 of the Minister of Finance;

6. Accounting regulations for social insurance issued together with Decision No. 1124-TC/QĐ/CĐKT dated December 12, 1996 of the Minister of Finance and amended and supplemented by Decisions No. 140/1999/QĐ-BTC dated November 15, 1999, No. 07/2003/QĐ-BTC dated January 17, 2003, and No. 18/2004/QĐ-BTC dated February 16, 2004 of the Minister of Finance.

Accounting regulations issued by ministries, ministerial-level agencies, government-affiliated agencies,

central Party organizations, and mass organizations upon approval

Annex No. 03

1. Accounting regulations applicable to budgetary units under the Ministry of Defense issued together with Decision No. 853/TC4 dated December 1, 1996 of the Ministry of Defense;
2. Accounting regulations for national reserves issued pursuant to Decision No. 393/QĐ/TCKT dated December 31, 1996 of the National Reserve Administration;
of the Ministry of Finance

3. Accounting regulations for health public service units issued pursuant to Decision No. 144/BYT/QĐ dated January 31, 1997 of the Ministry of Health;

4. Accounting regulations applicable to administrative and public service units of Party agencies issued pursuant to Decision No. 1017-QĐ/TCQT dated December 28, 1999 of the Central Financial Management Board;

5. Accounting regulations for the gratitude fund issued pursuant to Decision No. 42/QĐ-BCĐTW dated January 20, 2000 of the Central Committee for Building the Gratitude Fund;

6. Accounting regulations for geological public service units issued pursuant to Decision No. 44/2000/QĐ-BCN dated July 14, 2000 of the Ministry of Industry;

7. Accounting regulations applicable to revenue-generating public service units under the Office of the Government issued together with Decision No. 792/QĐ-VPCP dated December 7, 2001 of the Office of the Government;

8. Accounting regulations for budget expenditure for persons with meritorious service issued pursuant to Decision No. 1983/2002/QĐ-LĐTB&XH dated December 31, 2002 of the Ministry of Labor, Invalids, and Social Affairs;

9. Accounting regulations applicable to trade union units issued together with Decision No. 1675/QĐ-TLĐ dated August 13, 2003 of the Vietnam General Confederation of Labor.

8. Accounting regulations for budget expenditure on persons with meritorious service issued pursuant to Decision No. 1983/2002/QD-LDTB&XH dated December 31, 2002 of the Ministry of Labor, Invalids and Social Affairs;

9. Accounting regulations applicable to trade union units issued together with Decision No. 1675/QD-TLĐ dated August 13, 2003 of the Vietnam General Confederation of Labor.