Circular No. 168/2009/TT-BTC guiding accounting for lottery companies

CIRCULAR

Guidelines for accounting applicable to Lottery Companies

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

- Pursuant to 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;

- Based on Decree No. 30/2007/NĐ-CP dated March 1, 2007 of the Government on lottery business;

The Ministry of Finance issues guidelines for accounting applicable to Lottery Companies as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. The subject to which this Circular applies is Lottery Companies.

2. This Circular guides accounting for Lottery Companies. Matters not covered in this Circular shall be implemented according to 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 activities, accounting standards, enterprise accounting regulations issued pursuant to Decision No. 15/2006/QĐ-BTC dated March 20, 2006 of the Minister of Finance, and other Circulars guiding the implementation of accounting standards and Circulars guiding amendments and supplements to enterprise accounting regulations of the Ministry of Finance.

II. ACCOUNTING ACCOUNT SYSTEM

The accounting account system applicable to Lottery Companies shall be carried out in accordance with the provisions of Decision No. 15/2006/QĐ-BTC dated March 20, 2006 of the Minister of Finance and the provisions of this Circular. Specifically as follows:

1. Changing the name of accounting accounts

1.1. Change the name of Account 511- "Revenue from sales and provision of services" to "Revenue" Account 511 has 5 second-level accounts:

+ Account 5111 - Lottery revenue;

+ Account 5112 - Revenue from sale of goods and products;

+ Account 5113 - Revenue from provision of services;

+ Account 5117 - Revenue from real estate investment operations;

+ Account 5118 - Other revenue.

1.2. Change the name of Account 158 - "Goods in bonded warehouse" to "Lottery tickets"

1.3. Change the name of Account 003 - "Goods consigned for sale, storage, and pledge" to "Lottery tickets consigned for sale"

1.4. Change the name of Account 008 - "Budget for public welfare expenditure, projects" to "Lottery sales volume"

1.5. Transfer Account 431 - "Reward and welfare fund"

from type 4 - "Owners' equity" to type 3 - "Accounts payable" with the designation of Account 353 - "Reward and welfare fund". 2. Adding accounting accounts

2.1. First-level accounts (accounts in the Balance Sheet)

- Account 354 - Provision for prize payment risks;

- Account 625 - Prize payment expenses;

- Account 626 - Direct expenses for lottery issuance;

2.2. Accounts outside the Balance Sheet

- Account 005 - Long-term durable tools and equipment in use;

- Account 006 - Collateral assets and securities received.

3. Not using some accounting accounts

Do not use the following accounts in the Balance Sheet:

+ Account 161 - Public welfare expenditure;

+ Account 315 - Due long-term debt;

+ Account 337 - Advance payments under construction contracts;

+ Account 419 - Treasury shares;

+ Account 461 - Public welfare funds;

+ Account 466 - Public welfare funds that have formed fixed assets;

+ Account 611 - Purchase of goods;

+ Account 623 - Construction machinery usage costs;

+ Account 631 - Cost of production.

4. List of accounting accounts applicable to Lottery Companies (Annex No. 01 attached to this Circular)

5. Guidance on certain specific accounting matters of Lottery Companies

5.1. Account 131 - Receivables from customers

This account is used to reflect receivables and the settlement status of receivables of the enterprise from customers regarding money for lottery tickets and various products, goods, real estate investments, and service provision.

1. Receivables must be recorded in detail for each debtor, according to each receivable item, tracking short-term and long-term receivables separately, and recording each payment (by each lottery ticket agent or related customer purchasing products, goods, or services from the company).

Principles of accounting for this account:

2. Do not record in this account transactions involving immediate cash sales of products, goods, real estate investments, fixed assets, or service provision (cash, checks, or bank collections).

3. In detailed accounting for this account, the accountant must classify receivables, distinguishing between receivables that can be collected on time, difficult-to-collect receivables, or those unlikely to be recovered, to determine the amount of bad debt provision or measures to handle unrecoverable receivables.

4. In product, goods sales, and service provision relationships agreed upon between the enterprise and customers, if the products, goods, or real estate investments delivered, or services provided do not comply with the economic contract agreement, the buyer may request the enterprise to reduce the selling price or return the delivered goods.

Structure and content reflected in Account 131 - Receivables from customers:

- Value of lottery tickets handed over to agents that have been sold (based on the price marked on each type of lottery ticket);

Debit Side:

- Refunds to agents for unsold lottery tickets when tickets are handed over to agents for immediate payment;

- Amount receivable from customers for products, goods, real estate investments, and services provided and recognized as sold during the period;

- Personal income tax to be paid to the state budget on behalf of agents;

- Excess amounts refunded to customers;

- Agents paying money for lottery ticket sales;

Credit Side:

- Commission payable to lottery ticket agents;

- Amounts paid by lottery ticket agents on behalf of the company for prizes;

- Value of lottery tickets handed over to agents at selling price when receiving immediate payment;

- Agency fees for prize payments payable to agents;

- Customers paying for purchased products, goods, and services;

- Advance payments or prepayments received from customers;

- Discounts given to customers after delivery due to complaints;

- Sales revenue from returned goods;

- Discount on payment and trade discount given to buyers.

Reflecting the remaining amounts receivable from lottery agents and other customers.

Debit Balance:

This account may have a credit balance.

A credit balance reflects prepaid amounts or more received than receivable from customers, detailed by specific debtor. When preparing the Balance Sheet, the detailed balance of this account should be recorded on both the "Assets" and "Sources of Funds" sides.

A. For lottery business activities

Methods of accounting for some main economic transactions:

1. Revenue from lottery ticket sales confirmed as consumed, accounting records:

Debit Account 131 - Receivables from customers (1311) (Unreceived amount)

Debit Accounts 111, 112 (Received amount)

Debts of Accounts 111, 112 (Amounts received)

Debit Account 511 - Revenue (Sales Price Excluding VAT) (5111)

Credit Account 3331 - VAT payable (33311).

2. Reflect the amount of personal income tax that must be paid to the State Budget on behalf of lottery ticket agents:

- When determining the amount of personal income tax that must be paid on behalf of the agents, record:

Debit account 131 - Receivables from customers (1311)

Credit Account 3335 - Personal Income Tax.

- When the company pays the personal income tax on behalf of the agents to the State Budget, record:

Debit Account 3335 - Personal Income Tax

Credit Accounts 111, 112.

3. The commission amount payable to lottery ticket agents shall be deducted from the receivables of the agents and recorded as direct costs for issuing lottery tickets, record:

Debit Account 626 - Direct Costs for Issuing Lottery Tickets

Credit Account 131 - Receivables from Customers (1311).

4. The amount payable to lottery ticket agents regarding the prize money they have paid out on behalf of winning tickets shall be recorded as prize payout expenses, record:

Debit Account 625 - Prize Payout Expenses

Credit Account 131 - Receivables from Customers (1311).

5. Agency fees for prize payouts that must be paid to lottery ticket agents who have paid out prizes on behalf of others, record:

Debit Account 626 - Direct Costs for Issuing Lottery Tickets

Credit Account 131 - Receivables from Customers (1311).

6. When receiving lottery ticket sales proceeds from agents, record:

Debit Accounts 111, 112

Credit Account 131 - Receivables from Customers (1311).

B. For other business activities:

1. The revenue from the volume of products, goods, real estate investments sold, and services provided is considered consumed. Accounting records the amount receivable from customers but not yet received, record:

Debit Account 131 - Receivables from customers (Total payment amount)

Credit Account 511 - Revenue (5112, 5113, 5117, 5118).

Credit Account 3331 - VAT payable (33311).

2. In cases where sold goods are returned by customers, record:

Debit Account 531 - Goods Sold Returned

Debit Account 3331 - VAT Payable (VAT on returned goods)

Credit Account 131 - Receivables from customers.

3. Based on the confirmation document of the discount amount for the quantity of goods sold to customers that do not meet the specifications and quality stipulated in the contract, if the customer has not yet paid for the purchase, accounting shall reduce the receivables from customers by the discount amount on the sale, record:

Debit Account 532 - Sales Discount

Debit Account 3331 - VAT Payable (VAT on discounted goods)

Credit Account 131 - Receivables from Customers (Total discount amount).

4. Upon receipt of payment from customers (including interest on overdue payments, if any) related to products, goods, real estate investments sold, and services provided, record:

Debit Accounts 111, 112,...

Credit account 131 - Receivables from customers

Credit Account 515 - Financial Activity Revenue (Interest portion).

5. The amount of early payment discounts payable to buyers due to buyers paying before the specified due date, shall be deducted from the receivables from customers, record:

Debit Account 152 - Materials and Tools

Debit Account 112 - Bank Deposits

Debit Account 635 - Financial Costs (Discount amount)

Credit Account 131 - Receivables from customers.

6. The amount of trade discounts payable to buyers shall be deducted from the receivables from customers, record:

Debit Account 521 - Trade Discounts

Debit Account 3331 - VAT payable (33311)

Credit Account 131 - Receivables from customers.

7. Upon receipt of advance payments from customers according to sales contracts or service provision agreements, record:

Debit Accounts 111, 112,...

Credit Account 131 - Receivables from customers.

8. In cases where actual uncollectible receivables arise and cannot be collected, they must be written off based on the write-off documentation, record:

Debit Account 139 - Provision for Uncollectible Receivables (Amount already set aside)

Debit Account 642 - Administrative Expenses (Amount not yet set aside)

Credit Account 131 - Receivables from customers.

At the same time, debit to Account 004 "Written Off Bad Debts" (An account outside the Balance Sheet) to continue monitoring within the prescribed period to potentially recover the debt from the debtor.

9. At the end of the accounting period, the balance of receivables from customers with foreign currency denominations shall be evaluated at the average exchange rate published by the State Bank of Vietnam on the market for inter-bank foreign exchange transactions at the time of financial statement preparation:

- If the average exchange rate on the market for inter-bank foreign exchange transactions published by the State Bank at the time of financial statement preparation is higher than the exchange rate currently reflected in the accounting records of Account 131 with foreign currency denomination, the foreign exchange rate difference, record:

Debit account 131 - Receivables from customers

Credit Account 413 - Foreign Exchange Rate Difference (4131).

- If the average exchange rate on the market for inter-bank foreign exchange transactions published by the State Bank at the time of financial statement preparation is lower than the exchange rate currently reflected in the accounting records of Account 131 with foreign currency denomination, the foreign exchange rate difference, record:

Debit Account 413 - Foreign Exchange Rate Difference (4131)

Credit Account 131 - Receivables from customers.

5.2. Account 158 - Lottery Tickets

This account is used to reflect the current value and changes in various types of lottery tickets of the entity.

Principles of accounting for this account:

1. The value of various types of lottery tickets reflected in Account 158 must be detailed according to each type of lottery ticket.

2. The value of lottery tickets reflected in Account 158 must be based on the actual cost formed. The content of the actual cost of lottery tickets is determined according to each source of entry:

- The actual cost of lottery tickets purchased externally includes: Purchase price recorded on the invoice plus (+), transportation costs, loading and unloading.

- The actual cost of lottery tickets printed externally includes: Value of paper printed externally plus (+) printing costs and transportation costs, loading and unloading (if the printing party bears these costs).

- The actual cost of lottery tickets printed internally includes: Actual cost of raw materials used for printing and printing costs.

- The actual cost of lottery tickets received from the Regional Lottery Construction Council includes: Actual cost of lottery tickets transferred by the Regional Lottery Construction Council plus (+) transportation costs, loading and unloading.

3. The actual cost of lottery tickets issued from inventory can apply one of the methods for calculating the actual cost of raw materials issued from inventory.

Structure and content reflected in Account 158 - Lottery Tickets:

Debit Side:

- Actual cost of lottery tickets entered into inventory through internal printing, external purchases, external printing, or received from the Regional Lottery Construction Council.

Credit Side:

- Actual cost of lottery tickets issued to agents (actual cost of lottery tickets issued).

- Actual cost of lottery tickets remaining in inventory that need to be destroyed after the draw.

- Actual cost of lottery tickets issued to Lottery Construction Companies (for printing companies, Regional Lottery Construction Council).

Debit Balance:

Actual cost of various types of lottery tickets in inventory.

Account 158 - Lottery Tickets, has 5 second-level accounts:

- Account 1581 - Traditional Lottery Tickets: Reflects the actual cost and changes in traditional lottery tickets.

- Account 1582 - Scratch-off Lottery Tickets: Reflects the actual cost and changes in scratch-off lottery tickets.

- Account 1583 - Pull-tab Lottery Tickets: Reflects the actual cost and changes in pull-tab lottery tickets.

- Account 1584 - Lotto Lottery Tickets: Reflects the actual cost and changes in lotto lottery tickets.

- Account 1585 - Computerized Lottery Tickets: Reflects the actual cost and changes in computerized lottery tickets.

Depending on the addition of other types of lottery tickets, account 158 - Lottery Tickets may open additional second-level accounts as appropriate.

Methods of accounting for some main economic transactions:

1. The actual value of lottery tickets purchased from outside and entered into inventory shall be recorded as follows:

Debit Account 158 - Lottery Tickets (appropriate second-level account)

Credit Account 112 - Bank Deposits

Credit Account 331 - Payable to Supplier

2. The actual cost of self-printed or outsourced printed lottery tickets upon entry into inventory shall be recorded as follows:

Debit Account 158 - Lottery Tickets (appropriate second-level account)

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

3. The actual value of lottery tickets received from the Regional Lottery Council shall be recorded as follows:

Debit Account 158 - Lottery Tickets (appropriate second-level account)

Credit Account 338 - Other Payables and Deposits (3388)

Credit Account 112 - Bank Deposits.

4. The actual value of lottery tickets issued to agents shall be recorded as follows:

Debit Account 626 - Direct Costs for Issuing Lottery Tickets

Credit Account 158 - Lottery Tickets (appropriate second-level account).

Simultaneously, accounting must reflect the sales volume of lottery tickets issued to agents at the selling price (the price marked on the lottery ticket).

Debit Account 008 - Sales Volume of Issued Lotteries.

5. The actual value of lottery tickets remaining in inventory that need to be destroyed due to having been drawn for prize distribution shall be recorded as follows:

Debit Account 626 - Direct Costs of Lottery Issuance

Credit Account 158 - Lottery Tickets (appropriate second-level account).

6. The actual value of lottery tickets sold by the Printing Company or the printing processing fees paid to lottery companies by the Printing Company shall be recorded as follows:

Debit Account 632 - Cost of Goods Sold

Credit Account 158 - Lottery Tickets (appropriate second-level account).

5.3. Account 3389 - Unemployment Insurance

Reflects the amount set aside and paid out for unemployment insurance by the enterprise.

Methods of accounting for some main economic transactions:

1. Monthly, unemployment insurance contributions are deducted according to regulations from business expenses and management costs, recorded as follows:

Debit various Accounts 622, 626, 627, 641, 642, etc.

Credit Account 3389 - Unemployment Insurance.

2. When paying unemployment insurance to the managing authority, record as follows:

Debit Account 3389 - Unemployment Insurance

Credit Accounts 111, 112.

5.4. Account 354 - Provision for Prize Payment Risk

This account is used to reflect the current balance and the situation of setting aside and using the risk reserve fund for prize payments.

The risk reserve for prize payments is set aside annually and included in the cost of issuing lotteries to serve as a source of funds for prize payments in cases where the actual prize payout ratio exceeds the planned or established ratio for the year. Any unused balance of the risk reserve fund for prize payments is carried forward to the next year.

The risk reserve for prize payments can only be set aside in the case where, during the fiscal year, the actual prize payout ratio of the Lottery Enterprise is lower than the established or planned prize payout ratio as stipulated by the financial mechanism.

The setting aside of the risk reserve for prize payments applies only to traditional lottery products, lottery scratch cards, instant lottery results, and instant lottery results by peeling.

The level of setting aside the risk reserve fund for prize payments is in accordance with the provisions of the financial mechanism.

Structure and content reflected in Account 354 - Provision for Prize Payment Risk:

Debit Side:

Decrease in provision for prize payment risk due to offsetting prize payment expenses when the actual prize payout ratio for the year exceeds the planned or established ratio.

Credit Side:

Increase in provision for prize payment risk due to setting aside.

Debit balance:

Current balance of provision for prize payment risk at the end of the period.

Methods of accounting for some main economic transactions:

1. When setting aside the risk reserve for prize payments, record as follows:

Debit Account 626 - Direct Costs of Lottery Issuance (6264)

Credit Account 354 - Provision for Prize Payment Risk.

2. When using the risk reserve for prize payments to offset prize payment expenses, record as follows:

Debit Account 354 - Provision for Prize Payment Risk

Credit Account 625 - Prize Payment Expenses.

5.5. Account 511 - Revenue

This account is used to reflect revenue from lottery sales, product sales, goods sales, service provision revenue, real estate investment trading revenue, and other revenues.

Principles of accounting for this account:

1. Only record revenue from lottery sales, service provision revenue, real estate investment trading revenue, and confirmed sales revenue in the Account 511 "Revenue" for the period.

2. For revenue from lottery sales, product sales, and service provision subject to VAT under the deduction method, the revenue reflected on Account 511 is the sale price excluding VAT.

For goods and services not subject to VAT, the revenue reflected on Account 511 is the payment price.

3. When transferring processed lottery tickets to lottery companies, the revenue reflected on Account 511 is the processing fee for the lottery tickets to be paid to the lottery companies, excluding VAT.

4. Account 511 must be detailed according to each type of lottery revenue, each type of product, and each type of service.

5. In cases where lottery tickets are handed over to agents and payment is received immediately but the sale of lottery tickets within the period has not yet been determined, the advance payment before handing over the lottery tickets to the agents shall not be recorded in Account 511 "Revenue" but shall be recorded in the Credit side of Account 1311 "Advance from Lottery Agents". Revenue shall only be recorded in Account 511 for the number of lottery tickets sold by agents within the period.

Structure and content reflected in Account 511 - Revenue:

Debit Side:

- Special consumption tax or export tax payable calculated based on revenue from lottery ticket sales, product sales, goods sales, and service provision revenue for the accounting period;

- Revenue from returned goods, reduction in sales prices, and trade discounts transferred at the end of the period;

- Transfer of net revenue to Account 911 "Determination of Business Results"

Credit Side:

Revenue from lottery sales, product sales, goods sales, real estate investment trading, and service provision.

Account 511 does not have a final balance.

Account 511 - Revenue, has 5 second-level accounts.

- Account 5111 - Lottery Revenue: Reflects revenue and net revenue from various types of lotteries confirmed as sold during the accounting period.

Account 5111 - Lottery Revenue: Has 5 third-level accounts:

+ Account 51111 - Traditional Lottery Revenue;

+ Account 51112 - Scratch Lottery Revenue;

+ Account 51113 - Peel Lottery Revenue;

+ Account 51114 - Lotto Lottery Revenue;

+ Account 51115 - Electronic Lottery Revenue.

- Account 5112 - Product and Goods Sales Revenue: Reflects revenue and net revenue from the quantity of products and goods confirmed as sold during the accounting period;

- Account 5113 - Service Provision Revenue: Reflects revenue and net revenue from the quantity of services provided to customers during the accounting period;

- Account 5117 - Real Estate Investment Trading Revenue: Reflects rental and sales revenue from real estate investments;

- Account 5118 - Other Revenue: Reflects other revenue not covered by Accounts 5111, 5112, 5113, and 5117.

Methods of accounting for some main economic transactions:

1. Based on payment vouchers for lottery ticket sales to agents, accounting personnel determine and record lottery ticket sales revenue as follows:

Debit Account 1311 - Advance from Lottery Agents (Amount still to be collected)

Debts of Accounts 111, 112 (Amounts received)

Credit Account 5111 - Lottery Revenue

Credit Account 3331 - VAT Payable.

When receiving money from lottery ticket sales agents, record:

Debit Accounts 111, 112

Credit Account 1311 - Amounts due to lottery ticket agents.

3. Determine and reflect the special consumption tax payable based on lottery ticket sales revenue, record:

Debit Account 5111 - Lottery ticket revenue

Credit Account 3332 - Special Consumption Tax.

4. Revenue from the volume of products, goods, services, and real estate investments consumed during the period, record:

Debit accounts 111, 112, 131

Credit Account 511 - Revenue

Credit Account 3331 - VAT Payable.

5. Export tax, special consumption tax payable based on product, goods, service sales revenue during the period (if any), record:

Debit Account 511 - Sales Revenue

Credit Account 3332 - Special Consumption Tax

Credit Account 3333 - Export and import taxes.

6. In cases where the entity sells on credit, installment sales, or leases assets receiving payments in advance for multiple accounting periods... (The entity records according to the current enterprise accounting system).

7. At the end of the accounting period, transfer the revenue from returned sold items, discounts on sales, and trade discounts incurred during the period, record:

Debit Account 511 - Sales Revenue

Credit Account 521 - Trade discounts

Credit Account 531 - Returned sold items

Credit Account 532 - Sales discounts.

8. At the end of the accounting period, transfer net revenue to Account 911 "Determine business results", record:

Debit Account 511 - Sales Revenue

Credit account 911 - Determining business results.

5.6. Account 625 - Prize payout expenses

This account is used to reflect the amount of prize payouts made to winning lottery tickets within the accounting period.

Principles of accounting for this account:

1. Prize payout expenses recorded on this account include:

- Prize payout expenses directly paid by the company to winners;

- Prize payout expenses through authorized agents paying out prizes to winning customers;

- Prize payout expenses allocated to linked lotteries.

2. This account does not reflect the amount of prize payouts made on behalf of other lottery companies.

3. Account 625 must record prize payout expenses in detail according to each type of winning lottery ticket.

Structure and content reflected in Account 625 - Prize payout expenses:

Debit Side:

- Direct prize payout expenses paid by the company;

- Prize payout expenses through authorized agents;

- Prize payout expenses for linked lottery awards distributed according to the regulations of the Linked Lottery Council.

Credit Side:

- Transfer the amount of prize payout expenses to the debit side of Account 911 - "Determine business results";

- Transfer the difference between actual prize payout expenses in the year exceeding the built-in or planned payout ratio into the prize payout reserve fund.

Account 625 - "Prize payout expenses" has no end-of-period balance.

Account 625 - "Prize payout expenses" has 5 sub-accounts:

+ Account 6251 - Prize payout expenses for traditional lotteries: Reflects the expenses already paid for winning tickets of traditional lottery types;

+ Account 6252 - Prize payout expenses for scratch-off lotteries: Reflects the expenses already paid for winning tickets of scratch-off lottery types;

+ Account 6253 - Prize payout expenses for peel-off lotteries: Reflects the expenses already paid for winning tickets of peel-off lottery types;

+ Account 6254 - Prize payout expenses for lottery tickets: Reflects the expenses already paid for winning tickets of lottery ticket types;

+ Account 6255 - Prize payout expenses for electronic lotteries: Reflects the expenses already paid for winning tickets of electronic lottery types.

Methods of accounting for some main economic transactions:

1. When disbursing funds for prize payouts to customers with winning lottery tickets, record:

Debit Account 625 - Prize payout expenses (appropriate sub-account)

Credit Accounts 111, 112.

2. When receiving prize payout documentation from authorized agents who have paid out prizes on behalf of winning customers, record:

Debit Account 625 - Prize payout expenses (appropriate sub-account)

Credit Account 131 - Receivables from Customers (1311).

3. When disbursing funds to authorized agents for prize payouts on behalf of winning tickets, record:

Debit account 131 - Receivables from customers (1311)

Credit Accounts 111, 112.

4. When receiving allocation documents for prize payout costs of winning tickets issued under the linked lottery form among lottery companies in the region, record:

Debit Account 625 - Prize payout expenses (appropriate sub-account)

Credit Account 338 - Other Payables (3388).

5. At the end of the period, transfer the difference between actual prize payout expenses in the year exceeding the built-in or planned payout ratio into the prize payout reserve fund, record:

Debit Account 354 - Provision for Prize Payment Risk

Credit Account 625 - Prize Payment Expenses.

6. At the end of the period, transfer the prize payout expenses to the debit side of Account 911 - "Determine business results", record:

Debit account 911 - Determining business results

Credit Account 625 - Prize Payment Expenses.

5.7. Account 626 - Direct expenses for issuing lotteries

This account is used to reflect various direct expenses related to issuing lotteries (excluding prize payout expenses) incurred during the accounting period.

Principles of accounting for this account:

1. Direct expenses for issuing lotteries include:

- Expenses for agents;

- Number drawing and prize supervision expenses;

- Anti-gambling expenses;

- Prize payout risk reserve expenses;

- Lottery ticket expenses;

- Information dissemination expenses for draw results;

- Contributions to the Regional Lottery Council;

- Other direct lottery issuance expenses.

2. Only record into Account 626 direct expenses related to issuing lotteries. Do not record the following expenses into this account:

- Prize payout expenses;

- Other production and business operation expenses;

- Management expenses;

- Other expenses;

- Financial expenses;

- Construction investment expenses.

3. Direct expenses for issuing lotteries on Account 626 must be detailed according to each expense item and for each type of lottery ticket.

4. The annual contribution expense for the activities of the Regional Lottery Council is the actual contribution expense agreed upon by the Regional Lottery Council but not exceeding the annual contribution limit set forth. In the case of rotating contributions, it must ensure that the contributions are made according to the specified content, with valid and compliant documentation, and not exceed the cumulative contribution limit of previous years. After the contribution, it must be settled and approved by the Council and publicly disclosed according to regulations.

5. At the end of the period, all direct expenses for issuing lotteries, after deducting allowable reductions according to regulations, are transferred to the debit side of Account 911 - "Determine business results" to determine the business results for the period.

Structure and content reflected in Account 626 - Direct expenses for issuing lotteries:

Debit Side:

Direct expenses for issuing lotteries as stipulated occurring during the period.

Credit Side:

- Allowable reductions in direct expenses for issuing lotteries occurring during the period;

- Transfer direct expenses for issuing lotteries to Account 911 - "Determine business results" to calculate business results for the period.

Account 626 has no end-of-period balance.

Account 626 - Direct expenses for issuing lotteries, has 8 sub-accounts:

+ Account 6261 - Expenses for agents: Reflects the expenses payable to agents for issuing lotteries, including: agent commissions, authorization fees for paying out prizes to winning customers occurring during the period.

When paying money to agents, the lottery company has the responsibility to deduct personal income tax payable by the agents according to the current Tax Law and record it in Account 3335 "Personal Income Tax" simultaneously, the company also has the responsibility to process the procedures to pay the tax to the State.

+ Account 6262 - Costs for number drawing and supervision: Reflects the costs that must be paid for the number drawing and supervision work of the Lottery Supervisory Board occurring during the period, including: Hall rental fees (if any), allowances for members of the Lottery Supervisory Board performing supervisory tasks for number drawing, recovery, and cancellation of tickets, other expenses serving the number drawing work or receiving allocated costs from joint number drawings.

+ Account 6263 - Costs for combating illegal lotteries: Reflects the costs that must be paid for the anti-illegal lottery activities occurring during the period, such as: Support costs for local police directly implementing investigative, discovery, and handling of illegal lottery cases.

These anti-illegal lottery costs are directly spent on the police agency implementing anti-illegal lottery activities.

+ Account 6264 - Provisions for prize payment risks: Reflects the amount set aside for prize payment risk provisions for the year according to regulations. Risk provisions for prize payments must be tracked in detail by each type of lottery.

+ Account 6265 - Costs related to lottery tickets: Reflects the actual cost of the number of lottery tickets issued during the period, including all tickets distributed to agents and those remaining in stock but have been drawn.

+ Account 6266 - Costs for disseminating draw results information: Reflects the costs for disseminating draw result information on radio, television, and other mass media, printing flyers with draw results to serve customers and agents.

+ Account 6267 - Costs contributed to the Regional Lottery Council: Reflects the costs contributed to the Regional Lottery Council annually. In cases where the Regional Lottery Council applies a rotating payment method, the content of the council's expenditure includes: Service costs for inspection work, allowances for members of the permanent council, meeting costs, rewards for groups and individuals, labor costs for external workers serving the council, and other direct service costs for the council.

All expenditures must have legal and valid vouchers and must be settled and approved by the council.

+ Account 6268 - Other direct issuance costs: Reflects other direct issuance costs of lottery occurring during the year not reflected in Accounts 6261 to 6267, including: Employee costs for direct lottery issuance, depreciation and repair costs of fixed assets, other monetary costs.

Methods of accounting for some main economic transactions:

1. When settling commissions and prize distribution fees for winning customers in cash, bank deposits, or deductions from the ticket sales amount of agents, record:

Debit Account 626 - Direct Issuance Costs of Lottery (6261)

Debit Account 133 - VAT deductible tax (1331)

Credit Accounts 111, 112

Credit Account 131 - Amounts Receivable from Customers (In case of deduction from the ticket sales amount of the agent)

Credit Account 3335 - Personal Income Tax (The amount of tax to be deducted).

2. When incurring costs related to number drawing and supervision of number drawing, record:

Debit Account 626 - Direct Issuance Costs of Lottery (6262)

Credit various Accounts 111, 112, 331,...

Debit Account 133 - VAT deductible tax (1331)

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

When making payments, record:

Credit various Accounts 111, 112, 331,...

Debit Account 133 - VAT deductible tax (1331)

Credit Account 338 - Other Payables (3388).

4. When spending money to support the police in conducting investigations, discoveries, and handling illegal lottery cases for prosecution in anti-illegal lottery activities, record:

Debit Account 338 - Other Payables (3388)

Credit Accounts 111, 112.

Debit Account 626 - Direct Issuance Costs of Lottery (6263)

Debit Account 133 - VAT Input Tax Deductible (1331) (if applicable)

5. At year-end, the enterprise must determine the amount of risk provision for prize payments to be established and proceed to set up the risk provision fund, record:

Credit Accounts 111, 112.

6. When issuing lottery tickets from inventory to agents, record:

Debit Account 626 - Direct Costs of Lottery Issuance (6264)

Credit Account 354 - Provision for Prize Payment Risk.

Debit Account 626 - Direct Issuance Costs of Lottery (6265 - Value of tickets issued this period at actual cost)

Credit Account 158 - Lottery Tickets.

Simultaneously, debit Account 008 - Lottery Sales Revenue (Value at face value on the ticket).

7. At the end of the period, determine the number of lottery tickets remaining in inventory that have been drawn to be included in the direct issuance costs of the period, record:

Debit Account 626 - Direct Issuance Costs of Lottery (6265)

8. When incurring costs to disseminate draw results information, record:

Debit Account 626 - Direct Issuance Costs of Lottery (6266)

7. At the end of the period, determine the number of lottery tickets remaining in inventory that have been drawn to be included in the direct issuance costs of the period, record:

9. Wages and allowances payable to employees directly serving lottery issuance, record:

Debit Account 626 - Direct Issuance Costs of Lottery (62681)

Debit Account 133 - VAT deductible tax (1331)

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

10. Deduct social insurance, health insurance, unemployment insurance, and trade union fees of employees directly serving lottery issuance calculated based on the wages and salaries payable according to prescribed regulations, record:

Credit Account 338 - Other Payables and Taxes Payable (3382,3383,3384,3389).

Credit Account 334 - Payable to Employees.

11. When pre-deducting leave wages of employees directly serving lottery issuance (if any), record:

Credit Account 338 - Other Payables and Taxes Payable (3382,3383,3384,3389).

When employees directly serving lottery issuance take leave, accounting reflects the amount payable for leave wages of these employees, record:

12. Periodically, deduct depreciation of fixed assets directly serving lottery issuance, such as: Number drawing equipment, halls specifically used for number drawing, record:

Credit Account 338 - Other Payables and Taxes Payable (3382,3383,3384,3389).

Credit Account 335 - Expenses Payable.

Debit Account 626 - Direct Issuance Costs of Lottery (62682)

Debit Account 335 - Expenses Payable

Credit Account 334 - Payable to Employees.

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

13. When incurring other monetary costs directly serving lottery issuance, record:

Debit Account 626 - Direct Issuance Costs of Lottery (62688)

14. At the end of the period, determine and transfer the usage of the risk provision fund for prize payments to offset prize payments in cases where the actual prize payout ratio exceeds the planned or constructed ratio, record:

Credit Account 626 - Direct Issuance Costs of Lottery (6264).

Debit Account 133 - VAT deductible tax (1331)

Credit Accounts 111, 112.

15. At the end of the period, transfer direct issuance costs of lottery to the account determining business results, record:

Debit Account 354 - Provision for Prize Payment Risk

Credit Account 626 - Direct Issuance Costs of Lottery.

5.8. Account 003 - Lottery Tickets Received for Sale on Behalf of Others

Debit account 911 - Determining business results

This account is used to reflect the value of lottery tickets received for sale on behalf of other lottery enterprises at the face value on the tickets.

5.8. Account 003 - Lottery tickets received for resale on behalf of others

This account is used to reflect the value of lottery tickets received for resale on behalf of other lottery companies at their face value as indicated on the tickets.

Structure and content reflected in Account 003 - Lottery Tickets Received for Sale on Behalf of Others:

Debit Side:

The face value of lottery tickets received for sale on behalf of others.

Credit Side:

The value of lottery tickets sold or returned to the enterprise that entrusted the sale.

Debit Balance:

The value of unsold lottery tickets received for sale or not yet returned to the entity that entrusted the sale.

When receiving tickets for sale on behalf of others, enterprises must detail according to each type of ticket from each lottery enterprise.

Once lottery tickets are sold, in addition to recording Debit Account 003 at their face value, they must also record in the accounting books the accounts in the Balance Sheet regarding sales transactions and payments with the entity entrusting the sale.

5.9. Account 005 - Long-term Tools and Equipment in Use

Account 005 is used to reflect the value of various types of long-term tools and equipment in use within the unit. Long-term tools and equipment in use are those items with relatively high value and long usage periods, requiring strict management from the time of issuance until they are reported as damaged.

Long-term tools and equipment in use must be recorded in detail for each type, by location of use, and by the person responsible for physical assets. Within each type of long-term tools and equipment in use, detailed records must be made according to quantity, unit price, and total amount.

Structure and content reflected in Account 005 - Long-term tools and equipment in use:

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).: Increase in value of long-term tools and equipment due to issuance for use.

Credit Side: Decrease in value of long-term tools and equipment due to damage, loss, and other reasons.

Debit Balance: Current value of long-term tools and equipment in use within the unit.

Departments or individuals assigned to manage and use long-term tools and equipment are responsible for managing them strictly to prevent loss or damage.

When long-term tools and equipment are damaged or lost, the department responsible for managing and using them must prepare a report of damage or loss of assets, signed by representatives of the department and the individual responsible for management and use, as a basis for determining material responsibility.

5.10. Account 006 - Collateral Assets and Valuable Papers Received

This account is used to reflect the value of collateral assets and valuable papers received, recorded at their face value.

Lottery enterprises must maintain detailed records tracking each type of asset and each valuable paper by face value and maturity date.

Structure and content reflected in Account 006 - Collateral Assets and Valuable Papers Received:

Debit Side: The value of various types of collateral assets and valuable papers received from agents and organizations.

Credit Side: The value of various types of collateral assets and valuable papers returned to agents and organizations.

Debit Balance: The current value of collateral assets and valuable papers held by the lottery enterprise.

5.11. Account 008 - Sales Volume of Issued Lotteries

This account is used to reflect the sales volume of various types of lottery tickets issued by the lottery company to agents during the period and the settlement status of the value of issued lottery tickets between the lottery company and the agent.

Structure and content reflected in Account 008 - Sales Volume of Issued Lotteries:

Debit Side:

The face value of lottery tickets issued by the lottery company to agents.

Credit Side:

- The value of lottery tickets sold and settled by agents to the lottery company.

- The value of unsold lottery tickets returned by agents to the lottery company.

Debit Balance:

The face value of lottery tickets currently held by agents.

The lottery company must maintain detailed records tracking each agent, each type of ticket, and each transaction and settlement of lottery tickets.

III. FINANCIAL REPORTING

1. Annual Financial Report

The annual financial reporting system applicable to lottery companies includes the following four reports:

- Balance Sheet: Form B 01 - XS

- Report on Business Operations Results: Form B 02 - XS

- Cash Flow Statement: Form B 03 - XS

- Notes to Financial Statements: Form B 09 - XS

2. Interim Financial Reports

Lottery companies must prepare the following four interim financial statements in full form:

- Interim Balance Sheet (full form):

Form B 01a - XS

- Interim Report on Business Operations Results (full form): Form B 02a - XS

- Interim Cash Flow Statement (full form):

Form B 03a - XS

- Selected Notes to Financial Statements: Form B 09a - XS

3. Financial Reporting Forms Applicable to Lottery Companies (Appendix No. 02 attached to this Circular)

4. Content and Methodology for Preparing Annual Financial Reports

4.1. Balance Sheet (Form B01 - XS):

- The figures entered in column 5 "Beginning of Year" of this report this year are based on the figures recorded in column 4 "End of Year" of each indicator of this report last year;

- The figures entered in column 4 "End of Year" of this report at the end of the accounting period of the year are guided as follows:

(Below only guides the content and methodology for preparing the indicators (account items) that have been modified and supplemented to record figures in column 4 "End-of-Year Amount" of this report this year. Indicators (account items) without modifications or supplements are prepared according to the current enterprise accounting regulations (Enterprise Accounting Regulations issued under Decision No. 15/2006/QĐ-BTC dated March 20, 2006 of the Ministry of Finance and Circulars guiding amendments and supplements to the Enterprise Accounting Regulations)).

Prize Risk Reserve (Code 321)

This indicator reflects the existing Prize Risk Reserve at the reporting date. The figures for this indicator are based on the credit balance of Account 354 "Prize Risk Reserve" in the ledger of Account 354.

Reward and Welfare Fund (Code 323)

This indicator reflects the unused Reward and Welfare Fund at the reporting date. The figures for this indicator are based on the credit balance of Account 353 "Reward and Welfare Fund" in the ledger of Account 353.

Lottery Tickets Received for Sale on Behalf of Others (Indicator outside the Balance Sheet)

This indicator reflects the value of lottery tickets received for sale on behalf of others that have not yet been settled with other lottery companies at the reporting date.

The figures for this indicator are based on the debit balance of Account 003 "Lottery Tickets Received for Sale on Behalf of Others" in the ledger of Account 003.

Long-term Tools and Equipment in Use (Indicator outside the Balance Sheet)

This indicator reflects the value of long-term tools and equipment in use at the reporting date. The figures for this indicator are based on the debit balance of Account 005 "Long-term Tools and Equipment in Use" in the ledger of Account 005.

Collateral Assets and Valuable Papers Received (Indicator outside the Balance Sheet)

This indicator reflects the value of collateral assets and valuable papers received at the reporting date. The figures for this indicator are based on the debit balance of Account 006 "Collateral Assets and Valuable Papers Received" in the ledger of Account 006.

Sales Volume of Issued Lotteries (Indicator outside the Balance Sheet)

This indicator reflects the sales volume of issued lotteries at the reporting date. The figures for this indicator are based on the debit balance of Account 008 "Sales Volume of Issued Lotteries" in the ledger of Account 008.

4.2. Methodology for Preparing Indicators in the Report on Business Operations Results (Form B02 - XS)

4.2.1. Content v à k ết c ấu report

Reflecting the situation and results of business operations of the lottery company, including lottery sales revenue and other business revenues.

The report consists of five columns:

- Column 1: Reporting indicators;

- Column 2: Code numbers corresponding to each indicator;

- Column 3: The number corresponding to each indicator in this report, as reflected in the Notes to the Financial Statements;

- Column 4: Total amount generated during the reporting period;

- Column 5: Data from the previous year (for comparison).

4.2.2. Basis for preparing the report

- Based on the Report on Business Operations Results of the previous year.

- Based on the general ledger and detailed ledgers for accounts from type 5 to type 9 during the reporting period.

4.2.3. Content and method of preparing the indicators in the Business Operations Results Report

- "Code number" recorded in column 2 is used for consolidating financial statements or consolidated financial statements.

- The number recorded in column 3 "Explanation" of this report reflects the detailed data of this indicator in the Notes to the Financial Statements of the current year.

- The data recorded in column 5 "Previous Year" of this report this year is based on the data recorded in column 4 "Current Year" of each corresponding indicator in this report last year.

- Content and method of preparing the indicators recorded in Column 4 "This Year" are as follows:

Revenue (Code number 01)

This indicator reflects the total revenue from selling lottery tickets, goods, finished products, investment real estate, and providing services in the reporting year of the lottery company. The figures to be recorded in this indicator are the cumulative debit entries of Account 511 "Revenue" and Account 512 "Internal Sales Revenue" in the reporting year on the General Ledger.

Code number 01 = Code number 01.1 + Code number 01.2

Lottery sales revenue (Code number 01.1)

This indicator reflects the total revenue from selling lottery tickets during the reporting period of the lottery company.

The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 5111 - "Lottery Revenue" in the reporting year on the Sub-ledger of Account 511.

Code number 01.1 = Code number 01.1.1 + Code number 01.1.2 + Code number 01.1.3 + Code number 01.1.4 +

Code number 01.1.5

Traditional lottery (Code number 01.1.1)

This indicator reflects the total revenue from selling traditional lottery tickets during the reporting period of the lottery company. The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 51111 "Traditional Lottery Revenue".

Scratch-off lottery (Code number 01.1.2)

This indicator reflects the total revenue from selling scratch-off lottery tickets during the reporting period. The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 51112 "Scratch-off Lottery Revenue".

Pull-tab lottery (Code number 01.1.3)

This indicator reflects the total revenue from selling pull-tab lottery tickets during the reporting period. The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 51113 "Pull-tab Lottery Revenue".

Lotto lottery (Code number 01.1.4)

This indicator reflects the total revenue from selling lotto lottery tickets during the reporting period. The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 51114 "Lotto Lottery Revenue".

Electronic lottery (Code number 01.1.5)

This indicator reflects the total revenue from selling electronic lottery tickets during the reporting period. The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 51115 "Electronic Lottery Revenue".

Other business revenue (Code number 01.2)

This indicator reflects the total revenue from selling products, goods, investment real estate, and providing services during the reporting period.

The figures to be recorded in this indicator are the cumulative debit entries of Accounts 5112, 5113, 5117, 5118, and Account 512 in the reporting year on the General Ledger.

Deductions from revenue (Code 02)

Deductions from revenue (Code number 02)

This indicator reflects the total deductions from gross revenue for the year, including trade discounts, price reductions, returned sales, and special consumption tax, export tax. The figures to be recorded in this indicator are the cumulative debit entries of Account 511 "Revenue" and Account 512 "Internal Sales Revenue" corresponding to the credit entries of Accounts 521 "Trade Discounts", 531 "Returned Sales", 532 "Price Reductions", and 333 "Taxes and Other Government Levies" (3331, 3332, 3333) in the reporting year on the General Ledger.

Deductions from lottery sales revenue (Code number 02.1)

This indicator reflects the deductions from total lottery sales revenue for the year. The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 5111 "Lottery Revenue" corresponding to the credit entries of Accounts 521, 531, 532, and 333 (3331, 3332).

Each type of lottery sales deduction is reflected in detail according to the type of lottery sales.

Traditional lottery (Code number 02.1.1)

This indicator reflects the deductions from total traditional lottery sales revenue for the year.

The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 51111 "Traditional Lottery Revenue" corresponding to the credit entries of Accounts 521, 531, 532, and 333 (3331, 3332).

Scratch-off lottery (Code number 02.1.2)

This indicator reflects the deductions from total scratch-off lottery sales revenue for the year.

The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 51112 "Scratch-off Lottery Revenue" corresponding to the credit entries of Accounts 521, 531, 532, and 333 (3331, 3332).

Pull-tab lottery (Code number 02.1.3)

This indicator reflects the deductions from total pull-tab lottery sales revenue for the year.

The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 51113 "Pull-tab Lottery Revenue" corresponding to the credit entries of Accounts 521, 531, 532, and 333 (3331, 3332).

Lotto lottery (Code number 02.1.4)

This indicator reflects the deductions from total lotto lottery sales revenue for the year.

The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 51114 corresponding to the credit entries of Accounts 521, 531, 532, and 333 (3331, 3332).

Electronic lottery (Code number 02.1.5)

This indicator reflects the deductions from total electronic lottery sales revenue for the year.

The figures to be recorded in this indicator are the cumulative debit entries of Sub-account 51115 corresponding to the credit entries of Accounts 521, 531, 532, and 333 (3331, 3332).

Deductions from other revenue (Code number 02.2)

This indicator reflects the deductions from revenue from selling goods, products, service revenue, investment real estate revenue, and other revenue for the year.

The figures to be recorded in this indicator are the cumulative debit entries of Accounts 5112, 5113, 5117, 5118 corresponding to the credit entries of Accounts 521, 531, 532, and 333 (3331, 3332, 3333).

This indicator reflects the net revenue from lottery ticket sales, merchandise, finished products, investment real estate, and service provision for the reporting period, after deducting discount amounts (trade discounts, price reductions on goods sold, returned goods, special consumption tax, export tax), serving as the basis for calculating the business operation results of the lottery company.

Code 10 = Code 01 - Code 02

Net Revenue from Lottery Business (Code 10.1)

This indicator reflects the net revenue from lottery sales for the reporting period, after deducting discount amounts (special consumption tax), serving as the basis for calculating the lottery business operation results.

Code 10.1 = Code 01.1 - Code 02.1

Traditional Lotteries (Code 10.1.1)

This indicator reflects the net revenue from traditional lottery sales for the reporting period, after deducting discount amounts (special consumption tax), serving as the basis for calculating the lottery business operation results.

Code 10.1.1 = Code 01.1.1 - Code 02.1.1

Scratch-off Lotteries (Code 10.1.2)

This indicator reflects the net revenue from scratch-off lottery sales for the reporting period, after deducting discount amounts (special consumption tax), serving as the basis for calculating the lottery business operation results.

Code 10.1.2 = Code 01.1.2 - Code 02.1.2

Pull-tab Lotteries (Code 10.1.3)

This indicator reflects the net revenue from pull-tab lottery sales for the reporting period, after deducting discount amounts (special consumption tax), serving as the basis for calculating the lottery business operation results.

Code 10.1.3 = Code 01.1.3 - Code 02.1.3

Lotto Tickets (Code 10.1.4)

This indicator reflects the net revenue from lotto ticket sales for the reporting period, after deducting discount amounts (special consumption tax), serving as the basis for calculating the lottery business operation results.

Code 10.1.4 = Code 01.1.4 - Code 02.1.4

Online Lotteries (Code 10.1.5)

This indicator reflects the net revenue from online lottery sales for the reporting period, after deducting discount amounts (special consumption tax), serving as the basis for calculating the lottery business operation results.

Code 10.1.5 = Code 01.1.5 - Code 02.1.5

Net Revenue from Other Businesses (Code 10.2)

This indicator reflects the net revenue from merchandise, finished products, investment real estate, and service provision for the reporting period, after deducting discount amounts (trade discounts, price reductions on goods sold, returned goods, special consumption tax, export tax), serving as the basis for calculating the business operation results of the enterprise.

Code 10.2 = Code 01.2 - Code 02.2

Operating Expenses (Code 11)

This indicator reflects the total operating expenses of the lottery business incurred during the reporting period and the total cost of goods sold, finished products, investment real estate, direct costs of completed service volumes provided, other costs included in the cost of goods sold or reducing the cost of goods sold, reducing operating expenses of the lottery business during the reporting period.

The figures to be recorded in this indicator are the cumulative debit entries of Account 625 "Prize Payment Costs", Account 626 "Direct Costs of Lottery Issuance", and Account 632 "Cost of Goods Sold" in the reporting period corresponding to the credit side of Account 911 "Determination of Business Results" on the accounting ledger of Account 911.

Operating Expenses of Lottery Business (Code 11.1)

This indicator reflects the total operating expenses of the lottery business incurred during the reporting period.

The figures to be recorded in this indicator are the cumulative credit entries of Accounts 625 "Prize Payment Costs" and 626 "Direct Costs of Lottery Issuance" in the reporting period corresponding to the debit side of Account 911 "Determination of Business Results" on the accounting ledger of Account 911.

Code 11.1 = Code 11.1.1 + Code 11.1.2

Prize Payment Costs (Code 11.1.1)

This indicator reflects the total prize payment costs incurred during the reporting period.

The figures to be recorded in this indicator are the cumulative credit entries of Account 625 "Prize Payment Costs" in the reporting period corresponding to the debit side of Account 911 "Determination of Business Results" on the accounting ledger of Account 911.

Direct Costs of Lottery Issuance (Code 11.1.2)

This indicator reflects the total direct costs of lottery issuance incurred during the reporting period.

The figures to be recorded in this indicator are the cumulative credit entries of Account 626 "Direct Costs of Lottery Issuance" in the reporting period corresponding to the debit side of Account 911 "Determination of Business Results" on the accounting ledger of Account 911.

Cost of Goods Sold, Products, Services Provided (Code 11.2)

This indicator reflects the total cost of goods sold, investment real estate, production cost of sold products, direct costs of completed service volumes provided, other costs included in the cost of goods sold or reducing the cost of goods sold during the reporting period.

The figures to be recorded in this indicator are the cumulative credit entries of Account 632 "Cost of Goods Sold" in the reporting period corresponding to the debit side of Account 911 "Determination of Business Results" on the accounting ledger of Account 911.

Gross Profit (Code 20)

This indicator reflects the difference between net revenue and operating expenses incurred during the reporting period.

Code 20 = Code 10 - Code 11

Gross Profit from Lottery Business Operations (Code 20.1)

This indicator reflects the difference between net revenue from lottery business operations and operating expenses of the lottery business.

Code 20.1 = Code 10.1 - Code 11.1

Gross Profit from Sales and Service Provision Activities (Code 20.2)

This indicator reflects the difference between net revenue from other business activities and the cost of goods sold, products, services provided.

Code 20.2 = Code 10.2 - Code 11.2

Financial Income (Code 21)

This indicator reflects the net financial income (Total income minus (-) VAT under the direct method (if applicable) related to financial activities) generated during the reporting period of the lottery company. The figures to be recorded in this indicator are the cumulative debit entries of Account 515 "Financial Income" corresponding to the credit side of Account 911 "Determination of Business Results" in the reporting period on the accounting ledger of Account 911.

Financial Expenses (Code 22)

This indicator reflects the total financial expenses, including interest payable, royalty fees, joint venture activity costs,... incurred during the reporting period of the lottery company. The figures to be recorded in this indicator are the cumulative credit entries of Account 635 "Financial Expenses" corresponding to the debit side of Account 911 "Determination of Business Results" in the reporting period on the accounting ledger of Account 911.

Interest Expense (Code 23)

This indicator reflects the interest expense payable that is included in financial expenses for the reporting period. The data recorded in this indicator is based on the detailed accounting ledger account number 635.

Selling expenses (Code 24)

This indicator reflects the total selling expenses incurred for goods sold, finished products, and services provided during the reporting period. The data recorded in this indicator is the total debit side occurrence of Account 641 "Selling Expenses" corresponding to the credit side of Account 911 "Determination of Business Results" in the detailed accounting ledger Account 911 for the reporting period.

Administrative expenses (Code 25)

This indicator reflects the total administrative expenses incurred during the reporting period. The data recorded in this indicator is the total credit side occurrence of Account 642 "Administrative Expenses" corresponding to the debit side of Account 911 "Determination of Business Results" in the detailed accounting ledger Account 911 for the reporting period.

Net profit from business operations (Code 30)

This indicator reflects the business operation results of the lottery company during the reporting period. This indicator is calculated based on gross profit from lottery sales and service provision plus (+) Financial income minus (-) Financial expenses, selling expenses, and administrative expenses incurred during the reporting period.

Code 30 = Code 20 + (Code 21 - Code 22) - Code 24 - Code 25.

Other income (Code 31)

This indicator reflects other income (after deducting VAT payable calculated under the direct method) generated during the reporting period. The data recorded in this indicator is based on the total debit side occurrence of Account 711 "Other Income" corresponding to the credit side of Account 911 "Determination of Business Results" in the detailed accounting ledger Account 911 for the reporting period.

Other expenses (Code 32)

This indicator reflects the total other expenses incurred during the reporting period. The data recorded in this indicator is based on the total credit side occurrence of Account 811 "Other Expenses" corresponding to the debit side of Account 911 "Determination of Business Results" in the detailed accounting ledger Account 911 for the reporting period.

Other profit (Code 40)

This indicator reflects the difference between other income (after deducting VAT payable calculated under the direct method) and other expenses incurred during the reporting period.

Code 40 = Code 31 - Code 32.

Pre-tax accounting profit (Code 50)

This indicator reflects the total pre-tax profit realized in the reporting year of the lottery company before deducting corporate income tax from business operations and other activities during the reporting period.

Code 50 = Code 30 + Code 40.

Current corporate income tax expense (Code 51)

This indicator reflects the current corporate income tax expense incurred in the reporting year.

The data recorded in this indicator is based on the total credit side occurrence of Account 8211 "Current Corporate Income Tax Expense" corresponding to the debit side of Account 911 "Determination of Business Results" in the detailed accounting ledger Account 8211, or based on the debit side occurrence of Account 8211 corresponding to the credit side of Account 911 in the reporting period (in this case, the data recorded in this indicator is recorded as a negative number in parentheses (...) in the detailed accounting ledger Account 8211).

Deferred corporate income tax expense (Code 52)

This indicator reflects deferred corporate income tax expense or deferred tax income generated in the reporting year.

The data recorded in this indicator is based on the total credit side occurrence of Account 8212 "Deferred Corporate Income Tax Expense" corresponding to the debit side of Account 911 "Determination of Business Results" in the detailed accounting ledger Account 8211, or based on the debit side occurrence of Account 8212 corresponding to the credit side of Account 911 in the reporting period (in this case, the data recorded in this indicator is recorded as a negative number in parentheses (...) in the detailed accounting ledger Account 8212).

Post-corporate income tax profit (Code 60)

This indicator reflects the total net profit (or loss) after corporate income tax from all business activities (after deducting corporate income tax) generated in the reporting year.

Code 60 = Code 50 – (Code 51 + Code 52).

4.3. Content and methods for preparing the cash flow statement, annual financial statement notes, and interim financial statements are implemented according to the current enterprise accounting system (the enterprise accounting system issued by Decision No. 15/2006/QĐ-BTC dated March 20, 2006 of the Ministry of Finance and Circulars guiding amendments and supplements to the enterprise accounting system).

IV. IMPLEMENTATION

1. This Circular takes effect from January 1, 2010. The enterprise accounting system issued by Decision No. 15/2006/QĐ-BTC dated March 20, 2006 of the Minister of Finance and this Circular replace the accounting system applicable to lottery enterprises issued by Decision No. 298-TC/QĐ/CĐKT dated April 28, 1997 of the Minister of Finance.

2. The Director of the Department of Accounting Standards and Auditing, the Director of the Department of Banking Finance and Financial Institutions, the People's Committees of provinces and centrally administered cities, the Directors of Lottery Enterprises, and the Heads of related units are responsible for implementing and guiding the implementation of this Circular./.