Circular No. 162/2010/TT-BTC guides amendments and supplements to certain accounting regulations applicable to Securities Companies. This Circular changes the account numbers and indicators in Financial Statements, adds new indicators, and adjusts the method of obtaining data for specific indicators.
Scope of application
Securities Company
Key points
- The Securities Company shall conduct accounting transactions for buying and reselling government bonds according to the provisions of Circular No. 206/2009/TT-BTC.
- Amend the account number 353 to 359 for 'Provision for Compensation of Investor Losses'.
- Add the indicator 'Buying and Reselling Government Bonds' with Code Numbers 157 and 327.
- Amend the basis for obtaining data to prepare indicators such as 'Cash Equivalents', 'Short-term Borrowings and Debts', 'Long-term Borrowings and Debts', 'Provision for Compensation of Investor Losses', 'Advance Payments from Buyers', 'Reward and Welfare Fund', 'Unrealized Short-term Revenue', and 'Unrealized Long-term Revenue'.
- Add the Model of Capital Movement Report (Model No. B05-CTCK).
🌐 Social impact of this document
- Positive impact: Improve the quality of financial statements, helping Securities Companies comply with accounting regulations.
- Negative impact: Increase the workload for accounting staff due to adjustments and updates of new indicators.
- Securities Companies will have more detailed information about their financial situation, aiding investors in making accurate assessments.
❓ Frequently asked questions
Which accounts are amended?
Account 353 - 'Provision for Compensation of Investor Losses' is changed to Account 359 with unchanged content and accounting methods.
What accounting regulations must Securities Companies follow for transactions involving the purchase and resale of government bonds?
Securities Companies shall conduct accounting transactions for buying and reselling government bonds according to the provisions of Circular No. 206/2009/TT-BTC.
Which indicators are added to Financial Statements?
Financial Statements add new indicators such as 'Buying and Reselling Government Bonds' (Code Numbers 157 and 327), 'Unrealized Short-term Revenue' (Code Number 328), and 'Unrealized Long-term Revenue' (Code Number 338).
When must Securities Companies prepare the Capital Movement Report?
The Capital Movement Report is added and must be prepared according to Model No. B05-CTCK.
When does this Circular take effect?
This Circular takes effect from January 1, 2011.
Full text
CIRCULAR
Guidelines for amending and supplementing Circular 95/2008/TT-BTC dated October 24, 2008
on accounting guidance applicable to Securities Companies
_________________________
Pursuant to the Accounting Law No. 03/2003/QH11 dated June 17, 2003;
Pursuant to the Securities Law No. 70/2006/QH11 dated June 29, 2006;
Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
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 applicable in business operations;
The Ministry of Finance guides the amendment of some economic transactions and supplements accounting for newly arising economic transactions not provided for in Circular 95/2008/TT-BTC dated October 24, 2008 on accounting guidance applicable to Securities Companies as follows:
Article 1. Scope of Regulation and Applicability
1. This Circular guides the amendment and supplementation of some accounts and indicators on Financial Statements applicable to Securities Companies as stipulated in Circular 95/2008/TT-BTC dated October 24, 2008.
2. For accounting matters not covered in this Circular, Securities Companies shall implement according to the provisions of the Accounting Law, guiding documents of the Accounting Law, Accounting Standards for Enterprises issued pursuant to Decision No. 15/2006/QĐ-BTC dated March 20, 2006 of the Minister of Finance, Circular No. 244/2009/TT-BTC dated December 31, 2009 on guiding amendments and supplements to Accounting Standards for Enterprises, and Circular No. 95/2008/TT-BTC dated October 24, 2008 on accounting guidance applicable to Securities Companies.
Article 2. Change the account number 353 - "Provision for compensation of losses to investors" to Account 359 - "Provision for compensation of losses to investors". The structure, content reflected, and accounting methods of Account 359 remain unchanged compared to Account 353 as prescribed in Circular 95/2008/TT-BTC.
Article 3. The Company shall perform accounting for transactions of purchasing and reselling government bonds according to the provisions of Circular 206/2009/TT-BTC dated October 27, 2009 of the Ministry of Finance guiding accounting for transactions of purchasing and reselling government bonds.
Article 4. Amending and supplementing some indicators at point 3.1 part III Financial Statements prescribed in Circular 95/2008/TT-BTC (Balance Sheet - Model B01-CTCK)
- Amend the basis for taking data to establish the indicator "Equivalent cash items" - Code 112. Data to be recorded in this indicator is the debit balance detail of Account 121 "Trading securities" on the detailed ledger of Account 121 and the debit balance detail of Account 128 "Short-term other investments" on the detailed ledger of Account 128 of financial investments with a recovery or maturity period not exceeding three months, low risk, and easily converted into a certain amount of money from the date of purchase.
- Amend the basis for taking data to establish the indicator "Short-term borrowings and payables" - Code 311. Data to be recorded in the indicator "Short-term borrowings and payables" is the credit balance of Account 311 "Short-term borrowings" on the general ledger and the credit balance of Account 341 on the detailed ledger of Account 341 "Long-term borrowings" (part of long-term borrowings due for repayment in the next accounting period) and the credit balance on the detailed ledger of Account 342 "Long-term liabilities" (part of long-term liabilities due for repayment in the next accounting period).
- Amend the basis for taking data to establish the indicator "Long-term borrowings and payables" - Code 334. Data to be recorded in the indicator "Long-term borrowings and payables" is the total credit balances of Accounts 341 "Long-term borrowings," 342 "Long-term liabilities," and 343 "Issued bonds" on the detailed ledgers of Accounts 341, 342, and 343 after deducting short-term borrowings and payables already reflected in Code 311.
- Amend the code and the basis for taking data to establish the indicator "Provision for compensation of losses to investors" - Code 339 to Code 359. Data to be recorded in the indicator "Provision for compensation of losses to investors" is the credit balance of Account 359 "Provision for compensation of losses to investors" on the general ledger of Account 359. - Amend Code 328 "Other short-term payables and receivables" to Code 319.
- Amend the basis for taking data for the indicator "Advance payments from customers" - Code 313. Data to be recorded in the indicator "Advance payments from customers" is the credit balance detail of Account 131 - "Receivables from customers" opened for each customer on the detailed ledger of Account 131. This indicator does not reflect unexecuted revenues (including advance revenues).
- Amend Code 430 "Reward and welfare fund" to Code 323. This indicator reflects the Reward and Welfare Fund; unused management bonus fund at the reporting date. Data to be recorded in the indicator "Reward and Welfare Fund" is the credit balance of Account 353 "Reward and Welfare Fund" on the general ledger.
- Supplement the indicator "Government bond repurchase transactions" - Code 157. This indicator reflects the value of government bonds held by the buyer before the end of the repurchase contract term at the reporting date. Data to be recorded in the indicator "Government bond repurchase transactions" is the debit balance of Account 171 "Government bond repurchase transactions" on the ledger of Account 171.
- Supplement the indicator "Government bond resale transactions" - Code 327. This indicator reflects the value of government bonds held by the seller before the end of the resale contract term at the reporting date. Data to be recorded in the indicator "Government bond resale transactions" is the credit balance of Account 171 "Government bond repurchase transactions" on the ledger of Account 171.
- Supplement the indicator "Unearned revenue within one year" - Code 328. This indicator reflects unearned revenues that will be realized within twelve months from the reporting date. Data to be recorded in the indicator "Unearned revenue within one year" is the credit balance of Account 3387 - "Unearned revenue" on the detailed ledger of Account 3387 for unearned revenues that will be realized within twelve months.
- Supplement the indicator "Unearned revenue over one year" - Code 338. This indicator reflects unearned revenues that will be realized more than twelve months from the reporting date. Data to be recorded in the indicator "Unearned revenue over one year" is the credit balance of Account 3387 - "Unearned revenue" on the detailed ledger of Account 3387 for unearned revenues that will be realized more than twelve months.
||| Supplement the indicator "Science and Technology Development Fund" - Code number 339. This indicator reflects the Science and Technology Development Fund that has not been utilized at the reporting date. The data to be recorded in the indicator "Science and Technology Development Fund" is the credit balance of Account 356 "Science and Technology Development Fund" on the Accounting Ledger of Account 356.
||| Article 5. Amend and supplement some indicators in Point 3.3 Part III Financial Report prescribed in Circular 95/2008/TT-BTC ||| (Cash Flow Statement - Form B03 - CTCK)
||| - Proceeds from selling government bonds under repurchase agreements (Repo) shall be reflected in the indicator "Short-term and long-term loans received" (Code number 33);
||| - Payments for purchasing/selling back government bonds under repurchase agreements (Repo) shall be reflected in the indicator "Principal repayment of debt" (Code number 34).
||| Article 6. Amend and supplement some indicators of the Notes to the Annual Financial Report prescribed in Appendix No. 02 issued together with Circular 95/2008/TT-BTC according to Appendix No. 01 issued together with this Circular.
||| Article 7. Supplement the form of Capital Movement Report (Form B05-CTCK) according to Appendix No. 02 issued together with this Circular.
||| Content and method of preparing the Capital Movement Report:
||| This report is used to reflect the changes in shareholders' equity of Securities Companies.
||| Column A "Indicator" reflects the indicators belonging to shareholders' equity.
||| Columns 1 and 2 "Beginning Balance" reflect the beginning balance (including last year and this year) according to each indicator belonging to shareholders' equity.
||| Data to be recorded in Column 1 "Last Year" according to each indicator is based on the data recorded in Column 7 of this report last year.
||| Data to be recorded in Column 2 according to each indicator is based on the data recorded in Column 8 of this report last year, or the data recorded in Column 2 is based on the accounting ledger of Accounts 411, 412, 413, 414, 415, 418, 419, and 421 this year.
||| Columns 3, 4, 5, and 6 "Increase/Decrease" reflect the increase or decrease in shareholders' equity according to each indicator. Data to be recorded in Columns 3 and 4 "Increase", "Decrease" of last year according to each indicator is based on the data in Column 5 "Increase"; Column 6 "Decrease" of this report last year.
||| Data recorded in Columns 5 and 6 "Increase", "Decrease" of this year according to each indicator is based on the accounting ledger of Accounts 411, 412, 413, 414, 415, 418, 419, and 421 of the reporting year.
||| Columns 7 and 8 "Ending Balance" reflect the ending balance (including last year and this year) of shareholders' equity according to each indicator. Data recorded in Column 7 (ending balance of last year) of this report this year is based on the data recorded in Column 8 (ending balance of this year) of this report last year.
||| Data recorded in Column 8 "Ending Balance of this year" of this report this year is based on the ending balance of Accounts 411, 412, 413, 414, 415, 418, 419, and 421 of the reporting year.
||| Article 8. Indicators in each Interim Financial Report apply as the indicators of the Annual Financial Report issued in Circular 95/2008/TT-BTC and this Circular.
Article 9. Effective Date
||| This Circular takes effect from January 1, 2011.
Article 10. Responsibility for Implementation
1. Head of the Accounting System and Audit Department, Chairman of the State Securities Commission, Directors of Securities Companies, and heads of related units are responsible for implementing and guiding the implementation of this Circular.
2. In the process of implementing this Circular, if there are difficulties or obstacles, please report to the Ministry of Finance for research and resolution./.
DEPUTY MINISTER
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