Circular No. 170/2014/TT-BTC guiding accounting for the Debt Repayment Reserve Fund

CIRCULAR

Guidelines on accounting for the Debt Repayment Reserve Fund

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

Pursuant to the Public Debt Management Law No. 29/2009/QH12 dated June 17, 2009;

Pursuant to Decree No. 128/2004/ND-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Law on Accounting applicable in state accounting;

Pursuant to the Government Decree No. 79/2010/NĐ-CP dated July 14, 2010 on public debt management operations;

Pursuant to the Government Decree No. 78/2010/NĐ-CP dated July 14, 2010 on lending out foreign loan funds of the Government;

Pursuant to the Government Decree No. 15/2011/NĐ-CP dated February 16, 2011 on granting and managing government guarantees;

Pursuant to the Prime Minister's Decision No. 01/2013/QĐ-TTg dated January 7, 2013 on issuing the Regulation on establishment, use, and management of the Debt Repayment Reserve Fund;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director of the Accounting and Auditing Regulations Department,

The Minister of Finance issues this Circular guiding accounting for the Debt Repayment Reserve Fund.

Chapter I. GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates accounting vouchers, accounting accounts, accounting books, and financial reports applicable to the Debt Repayment Reserve Fund for recording accounting transactions related to the activities of the Debt Repayment Reserve Fund.

Article 2. Applicability

This Circular applies to the Debt Repayment Reserve Fund and relevant organizations and individuals.

Article 3. Tasks of the Debt Repayment Reserve Fund Accountant

The Debt Repayment Reserve Fund accountant has the responsibility to collect, process, inspect, monitor, and analyze information on the recovery of domestic re-lending capital from foreign loans and aid of the Government and fees from Government guarantees to ensure repayment of foreign loans for Government re-lending, while creating a portion of resources to address potential risks in cases where the Government guarantees enterprises and credit institutions' foreign borrowing, and expenses for managing the Debt Repayment Reserve Fund (hereinafter referred to as the Fund).

Article 4. Accounting Method for the Debt Repayment Reserve Fund

Accounting for the Fund must be conducted using double-entry bookkeeping and in accordance with the Accounting Law, Government Decree No. 128/2004/NĐ-CP dated May 31, 2004 detailing and guiding the implementation of certain provisions of the Accounting Law in the field of state accounting (hereinafter referred to as Decree No. 128/2004/NĐ-CP), and the guidelines set forth in this Circular.

Article 5. Units of Measurement Used in Accounting for the Debt Repayment Reserve Fund

1. The monetary unit is the Vietnamese Dong (national symbol is "đ", international symbol is "VND"). In cases where foreign currency arises, a record of the original currency must be maintained on Account 007 "Various Foreign Currencies" and converted to Vietnamese Dong according to the prescribed exchange rate.

2. When preparing consolidated financial statements and consolidated management reports, if the reported figures exceed nine digits, the shortened monetary unit of thousands of dong may be selected; if they exceed twelve digits, the shortened monetary unit of millions of dong may be selected; if they exceed fifteen digits, the shortened monetary unit of billions of dong may be selected. When using shortened monetary units, rounding off is done as follows: if the digit following the shortened monetary unit is five (5) or higher, it is increased by one (1) unit; if it is less than five (5), it is not counted.

Article 6. Accounting Period for the Debt Repayment Reserve Fund

The accounting period includes the annual accounting period and the quarterly accounting period, defined as follows:

1. The annual accounting period consists of twelve months, from the first day of January to the last day of December of the Gregorian calendar year;

2. The quarterly accounting period consists of three months, from the first day of the first month of the quarter to the last day of the last month of the quarter.

Article 7. Accounting inspection and self-inspection of financial accounting

Annually, the Fund shall conduct self-inspection of financial accounting in accordance with Decision No. 67/2004/QD-BTC dated August 13, 2004 of the Minister of Finance on the issuance of regulations on self-inspection of finance and accounting at agencies and units using State budget funds.

Article 8. Responsibility for managing transaction accounts and activities of the Debt Repayment Accumulation Fund

The Fund shall open foreign currency and Vietnamese dong transaction accounts at the State Treasury authorized by the Minister of Finance to the Director of the Department of Debt Management and Foreign Financial Affairs (hereinafter referred to as the Director of the Department of Debt Management), who will be named as the account holder and manage the accounts in accordance with current laws.

Article 9. Responsibilities for managing, using, and providing accounting information and documents

1. The Fund shall establish regulations on managing, using, and preserving accounting documents, clearly defining responsibilities and authorities for each department and each accounting staff member; it must ensure adequate material and means for managing and preserving accounting documents.

2. The Fund has the responsibility to provide accounting information and documents to state agencies with authority to perform functions as prescribed by law. Agencies receiving accounting documents must have the responsibility to maintain and preserve the documents during their use and must return them fully and on time.

3. The provision of information and documents to specific entities shall be decided by the Director of the Department of Debt Management in accordance with the law. The exploitation and use of accounting documents must be approved in writing by the Director of the Department of Debt Management or the person authorized.

Article 10. Accounting Organization Structure

1. The Fund is an accounting unit and must organize its accounting structure in accordance with Article 48 of Decree No. 128/2004/NĐ-CP.

2. The Fund must appoint an Accounting Manager (or someone responsible for accounting, in cases where there is no qualified person to be appointed as an Accounting Manager) to transact with the State Treasury in accordance with Circular Joint Circular No. 163/2013/TTLT-BTC-BNV dated November 15, 2013 of the Ministry of Finance and the Ministry of Home Affairs on Guidelines for Standards, Conditions, Procedures for Appointment, Reappointment, Arrangement, Removal, Replacement, and Additional Allowance for Accounting Managers and Those Responsible for Accounting in State Accounting Units.

Chapter II. ACCOUNTING DOCUMENTS

Article 11. Preparation of Accounting Documents

1. All economic and financial transactions related to the Fund's activities must be recorded in accounting documents. An accounting document is prepared only once for each economic and financial transaction.

2. The content of the document must be clear and truthful to the content of the economic and financial transaction.

3. Writing on the document must be clear, without erasures or abbreviations.

4. The amount written in words must match the amount written in figures.

5. Accounting documents must be prepared with the required number of copies according to the regulations for each document. For documents that require multiple copies, they must be prepared all at once for all copies with the same content using a computer, typewriter, or carbon paper. In special cases where multiple copies need to be prepared but cannot be written all at once, two separate writings may be allowed, but the content of all copies must be identical.

6. Accounting documents prepared by computer must comply with the prescribed content and legal validity for accounting documents. Accounting documents used as direct bases for recording in accounting ledgers must include accounting entries.

Article 12. Signing accounting vouchers

1. All accounting vouchers must have complete signatures according to the position specified on the voucher to be valid for implementation. Specifically, electronic vouchers must have an electronic signature as prescribed by law. All signatures on accounting vouchers must be signed with a ballpoint pen or ink pen, not with red ink, pencil, or pre-carved signature stamps. Signatures on accounting vouchers used for payment purposes must be signed individually per each copy. The signature of a person on accounting vouchers must be consistent and must match the registered signature as prescribed. In cases where no signature has been registered, subsequent signatures must be consistent with previous signatures.

2. The signature of the Director of the Debt Management Department (or authorized representative), the Chief Accountant (or authorized representative), and the stamp on the voucher must correspond to the sample stamp and signature still in effect registered at the State Treasury. The signature of the accountant on the voucher must match the signature in the register of sample signatures. The Chief Accountant (or authorized representative) may not sign "on behalf of" the Director of the Debt Management Department. An authorized representative may not re-authorize another person.

3. The Fund must open a register of sample signatures for the cashier, accounting staff, Chief Accountant (and authorized representatives), Director of the Debt Management Department (and authorized representatives). The register of sample signatures must be numbered and bound with a cross-stamp by the Director of the Debt Management Department (or authorized representative) for easy inspection when necessary. Each person must sign three sample signatures in the register.

4. Accounting vouchers shall not be signed before recording or fully recording the contents of the voucher according to the responsibility of the signer. The delegation of authority to sign on accounting vouchers is determined by the Head of the Unit in accordance with the law, management requirements, and ensuring strict control and asset safety.

Article 13. Procedure for circulation and verification of accounting vouchers

1. Accounting vouchers established by the Fund or received from outside must be centralized in the accounting department of the Fund. The accounting department must check all accounting vouchers and only after verifying their legal validity can they be used to record in the accounting books. The procedure for circulating accounting vouchers includes the following steps:

- Preparing, receiving, and processing accounting vouchers;

- Accountants and Chief Accountants checking and signing accounting vouchers or submitting them to the Director of the Debt Management Department for approval according to the regulations in each type of voucher (if applicable);

- Classifying, arranging accounting vouchers, determining accounts, and recording in the accounting books;

- Store and preserve accounting documents.

2. The procedure for verifying accounting vouchers:

- Checking the clarity, truthfulness, and completeness of the indicators and elements recorded on accounting vouchers;

- Verifying the legality of economic and financial transactions recorded on accounting vouchers; Comparing accounting vouchers with related documents;

- Verify the accuracy of the figures and information on the accounting documents.

3. When verifying accounting vouchers, if violations of policies, systems, and regulations on economic and financial management by the State are discovered, they must be refused (cash withdrawal, payment, etc.) and reported immediately in writing to the Director of the Debt Management Department for timely handling in accordance with current laws.

4. For accounting vouchers established without proper procedures, unclear figures, the person responsible for checking or recording must return them, request additional procedures, and adjust them before using them as a basis for recording.

5. The list, model, explanation of content, and method of preparing accounting vouchers are stipulated in Appendix 01 issued together with this Circular.

Chapter III. ACCOUNTS

Article 14. Accounts and Accounting Account System

1. An accounting account is a method of accounting used to classify and systematize economic and financial transactions according to their economic content and chronological order. Accounting accounts continuously, systematically reflect the income and expenditure situation of the Fund.

2. Accounting accounts are opened for each individual accounting object with distinct economic content. The entire set of accounting accounts used in Fund accounting forms an accounting account system. The accounting account system applicable to the Fund is uniformly prescribed by the Ministry of Finance regarding the type of account, number of accounts, symbols, names, and recording content of each account.

3. The accounting account system of the Fund is established based on the nature and content of the Fund's activities, applying classification and coding principles of the accounting account system used for state-owned entities, aiming to:

- Fully reflect all income and expenditure activities of the Fund, consistent with its organizational model and operational characteristics;

- Meet information processing requirements and fully satisfy the operational needs of the Fund and management agencies.

- The accounting account system of the Fund includes accounts within the Balance Sheet and accounts outside the Balance Sheet.

4. Accounts within the Balance Sheet reflect all economic and financial transactions occurring according to accounting objects including assets, sources of asset formation, and the movement of assets at the Fund. The bookkeeping principle for accounts within the Balance Sheet is carried out using the "double-entry" method, meaning that when recording on the Debit side of one account, it must simultaneously record on the Credit side of another or multiple accounts, or vice versa.

5. Accounts outside the Balance Sheet reflect economic indicators already reflected in accounts within the Balance Sheet but require monitoring for management purposes such as foreign currencies. The bookkeeping principle for accounts outside the Balance Sheet is carried out using the "single-entry" method, meaning that when recording on one side of an account, there is no need to record on the opposite side of other accounts.

Article 15. Classification and Selection of Accounting Account Systems

1. The accounting account system applicable to the Fund, as prescribed by the Ministry of Finance, consists of 16 accounts within the Balance Sheet and 02 accounts outside the Balance Sheet.

- Level 1 accounts consist of three decimal digits;

- Level 2 accounts consist of four decimal digits (the first three digits represent Level 1 accounts, the fourth digit represents Level 2 accounts);

- Depending on detailed management requirements, the Fund may supplement Level 3 detail accounts. Level 3 accounts consist of five decimal digits (the first three digits represent Level 1 accounts, the fourth digit represents Level 2 accounts, the fifth digit represents Level 3 accounts).

- Accounts outside the Balance Sheet consist of three digits, starting with the digit 0.

2. The Debt Repayment Reserve Fund must base its accounting records on the accounting account system issued in this Circular. The Fund can supplement Level 2, Level 3, and Level 4 accounts (excluding those already specified in this Circular by the Ministry of Finance) to meet unit management requirements.

3. In cases where the Debt Repayment Reserve Fund needs to open additional Level 1 accounts beyond those already provided or requires modifications and supplements to Level 2, Level 3, and Level 4 accounts within the accounting account system prescribed by the Ministry of Finance in this Circular, such actions must be approved in writing by the Ministry of Finance before implementation.

4. The list of accounting accounts is stipulated in Appendix 02 attached to this Circular.

Article 16. Account 112 - Treasury Deposits

This account is used to reflect the current amount and changes in the increase and decrease of treasury deposits at the State Treasury of the Fund.

1. Principles for Accounting Entry of Account 112 - Treasury Deposits

- The basis for accounting entries on Account 112 - Treasury Deposits is the Credit Notification, Debit Notification, or statement from the State Treasury accompanied by original documents (Payment Order, Collection Order, Loan Contract,...).

- When receiving documents sent by the State Treasury, the accountant must check and reconcile with the original documents attached, payment schedule,... If there is a discrepancy between the figures on the Fund's accounting books, the figures on the original documents with the figures on the State Treasury's documents, then the Fund's accountant must notify the State Treasury, the debt-paying unit to jointly reconcile, verify, and handle promptly. At the end of the month, if the cause of the discrepancy has not been determined, the accountant records the books according to the figures on the State Treasury's Debit Notification, Credit Notification, or statement. In the following month, continue checking, reconciling, determining the cause to adjust the recorded figures.

- It is necessary to organize detailed accounting of deposit amounts by each account at the State Treasury and by each currency code for ease of inspection and reconciliation. For currencies, record the books in Vietnamese Dong and the original currency. In case of depositing money into the State Treasury in foreign currency, it must be recorded in both the original currency and Vietnamese Dong according to the exchange rate published by the Ministry of Finance at the time of transaction occurrence. In case of withdrawing treasury deposits in foreign currency, it can be converted into Vietnamese Dong according to the exchange rate reflected on the accounting books of Account 112 (1122) using one of the following methods: Weighted Average Cost; First-In, First-Out; Last-In, First-Out; Actual Cost.

- For cases of buying and selling foreign currency, the foreign currency must be converted into Vietnamese Dong according to the exchange rate at the time of transaction occurrence to record the related accounting entries. If there is an exchange rate difference, reflect this difference on Account 431 - Exchange Rate Difference.

2. Structure and Content Reflected in Account 112 - Treasury Deposits Debit Side:

- Principal and interest payments received in Vietnamese Dong, foreign currency transferred into the Fund's transaction account at the State Treasury;

- Fees (such as guarantee fees, commitment fees, management fees) in Vietnamese Dong, foreign currency deposited into the Fund's transaction account at the State Treasury;

- Interest on demand deposits added to the principal of treasury deposits at the State Treasury;

- Other increases in treasury deposits. Credit Side:

- Vietnamese Dong, foreign currency withdrawn from the Fund's transaction account at the State Treasury for payment;

- Transfer funds to projects under loan contracts, loan contracts for rescheduling loans, advance funding contracts;

- Transfer funds to execute deposit contracts, entrusted investment contracts;

Debit Balance: Reflects the balance of Vietnamese Dong, foreign currency currently remaining in the Fund's transaction deposit account at the State Treasury.

Account 112 - Treasury Deposits has two second-level accounts: Account 1121 - Vietnamese Dong

Account 1122 - Foreign Currency.

3. Methods of Accounting for Certain Main Transactions

a) Transactions occurring in Vietnamese Dong

- Upon receipt of the Credit Notification from the State Treasury regarding the amount of funds transferred by projects (principal, interest of the loan from the rescheduled loan source) into the Fund's account, record:

Debit Account 112 - Treasury Deposits

Credit Account 541 - Fund Revenue.

- Withdraw fixed-term deposits to non-fixed term deposits, based on the Credit Notification from the State Treasury, record:

Debit Account 112 - Treasury Deposits

Credit Account 131 - Fixed-Term Deposits.

- Receive interest from entrusted investment activities, based on the Credit Notification from the State Treasury, record:

Debit Account 112 - Treasury Deposits

Credit Account 542 - Fund Management Revenue.

- Recover advance payments made to the State Budget, record:

Debit Account 112 - Treasury Deposits

Credit Account 311 - Advance Payments.

- Upon maturity of debt repayment, the State Budget pays off the loan debts according to the plan, based on the Credit Notification from the State Treasury, record:

Debit Account 112 - Treasury Deposits

Credit Account 312 - Receivables (3124).

- Transfer treasury deposits to repay the budget, based on the Debit Notification from the State Treasury, record:

Debit Account 641 - Fund Operating Expenses

Credit Account 112 - Treasury Deposits.

- Transfer treasury deposits for entrusted investments, to the State Budget, advance funding for projects with guarantees, rescheduled loan projects, record:

Debit Account 221 - Entrusted Investments

Credit Account 112 - Treasury Deposits.

Debit Account 231 - Loans and Advances.

- Transfer from non-fixed term deposits to fixed-term deposits, record:

Debit Account 131 - Fixed-Term Deposits

Credit Account 112 - Treasury Deposits.

- Advance payments for fund operations (State Budget advances), advance payments for fund management, record:

Credit Account 112 - Treasury Deposits.

Debit Account 311 - Advance Payments (3111, 3112).

- Use treasury deposits to repurchase foreign debt, record:

Debit Account 312 - Receivables (3124) (the amount the budget still needs to pay according to the repayment plan for the debt that the Fund has restructured).

Credit Account 112 - Treasury Deposits (the amount the Fund actually spent on the repurchased debt).

Credit Account 414 - Debt Restructuring Difference (the difference between the amount the budget still needs to pay according to the repayment plan and the amount the Fund actually spent on the repurchased debt).

- When repaying the budget the amount the Fund borrowed to advance pay on behalf of projects with government guarantees, record:

Credit Account 112 - Treasury Deposits.

Debit Account 331 - Payable to the Budget.

- Recover advance funding and loans in foreign currency but paid in Vietnamese Dong, based on the Credit Notification from the State Treasury, record:

Debit Account 112 - Treasury Deposits (contract exchange rate)

Debit Account 413 - Exchange Rate Difference (if the contract exchange rate is lower than the book exchange rate)

Credit various Accounts 221, 231 (book exchange rate)

Credit Account 413 - Exchange Rate Difference (if the contract exchange rate is higher than the book exchange rate).

b) Transactions occurring in foreign currency

- Upon receipt of the Credit Notification from the State Treasury regarding the amount of foreign currency transferred by projects (principal, interest) into the Fund's account, record:

Debit Account 112 - Treasury Deposits (exchange rate published by the Ministry of Finance)

Credit Account 541 - Fund Revenue (exchange rate published by the Ministry of Finance)

Simultaneously debit Account 007 - Various Foreign Currencies (off-balance sheet account).

- Upon receipt of the Credit Notification from the State Treasury regarding the amount of foreign currency transferred by projects (principal, interest) into the Fund's account, record:

- Upon receipt of interest on foreign currency deposits, based on the Credit Notification from the State Treasury, record:

Credit Account 541 - Fund Revenue (exchange rate published by the Ministry of Finance)

Credit Account 542 - Fund Management Revenue (5421) (for non-fixed term deposits) (exchange rate published by the Ministry of Finance)

Credit Account 541 - Fund Revenue (exchange rate published by the Ministry of Finance)

- Receive interest from lending to rescheduled projects, Vietnam Development Bank, and other interests, based on the Credit Notification from the State Treasury, record:

- Upon receipt of the Credit Notification from the State Treasury regarding the amount of foreign currency transferred by projects (principal, interest) into the Fund's account, record:

Debit Account 542 - Fund Management Revenue (exchange rate published by the Ministry of Finance)

Credit Account 541 - Fund Revenue (exchange rate published by the Ministry of Finance)

- Transfer foreign currency deposits to repay debts to the state budget based on the Treasury's Debt Notice, record:

Debit Account 641 - Fund Operating Expenses (exchange rate published by the Ministry of Finance)

Debit Account 413 - Exchange Rate Difference (the difference between the exchange rate published by the Ministry of Finance and the recorded exchange rate is smaller)

Credit Account 112 - Treasury Deposits (recorded exchange rate)

Credit Account 413 - Exchange Rate Difference (the difference between the exchange rate published by the Ministry of Finance and the recorded exchange rate is larger)

At the same time, record on the Credit side of Account 007 - Various Foreign Currencies (off-balance sheet account).

- Transfer foreign currency deposits for entrusted investment, loans to the State Budget, Vietnam Development Bank, capital advances for projects with guarantees, and re-lending projects, record:

Debit Account 221 - Entrusted Investment (exchange rate published by the Ministry of Finance)

Debit Account 231 - Loans and Advances (exchange rate published by the Ministry of Finance)

Debit Account 413 - Exchange Rate Difference (the difference between the exchange rate published by the Ministry of Finance and the recorded exchange rate is smaller)

Credit Account 112 - Treasury Deposits (1122) (recorded exchange rate)

Credit Account 413 - Exchange Rate Difference (the difference between the exchange rate published by the Ministry of Finance and the recorded exchange rate is larger)

At the same time, record on the Credit side of Account 007 - Various Foreign Currencies (off-balance sheet account).

- Transfer from non-interest-bearing foreign currency deposits to interest-bearing deposits at commercial banks, record:

Debit Account 131 - Interest-Bearing Deposits (exchange rate published by the Ministry of Finance)

Debit Account 413 - Exchange Rate Difference (the difference between the exchange rate published by the Ministry of Finance and the recorded exchange rate is smaller)

Credit Account 112 - Treasury Deposits (1122) (recorded exchange rate)

Credit Account 413 - Exchange Rate Difference (the difference between the exchange rate published by the Ministry of Finance and the recorded exchange rate is larger)

At the same time, record on the Credit side of Account 007 - Various Foreign Currencies (off-balance sheet account).

- In case of selling foreign currency to buy Vietnamese Dong for payment to the state budget, based on the Treasury's Debt Notice, record:

Debit Account 641 - Fund Operating Expenses (actual exchange rate)

Debit Account 413 - Exchange Rate Difference (the difference between the actual exchange rate and the recorded exchange rate is smaller)

Credit Account 112 - Treasury Deposits (1122) (recorded exchange rate)

Credit Account 413 - Exchange Rate Difference (the difference between the actual exchange rate and the recorded exchange rate is larger).

At the same time, record on the Credit side of Account 007 - Various Foreign Currencies (off-balance sheet account).

Article 17. Account 131 - Interest-Bearing Deposits

This account is used to reflect the current balance and changes in the amount of interest-bearing deposits at banks of the debt repayment reserve fund.

1. Accounting Principles for Interest-Bearing Deposits Account

- The basis for accounting on Account 131 "Interest-Bearing Deposits" is deposit, withdrawal, and transfer documents.

- Detailed accounting must be organized for each bank, each term, and each original currency code to facilitate verification and reconciliation. For original currencies, both the original currency and Vietnamese Dong should be recorded according to the exchange rate published by the Ministry of Finance at the time of transaction occurrence.

- Interest on interest-bearing deposits is accounted for in Account 542 - Fund Management Revenue.

2. Structure and Content Reflected in Account 131 - Interest-Bearing Deposits

Debit Side:

- Increase in interest-bearing deposits;

- Interest on interest-bearing deposits is added to the principal of the deposit.

Credit Side:

- Withdrawal of interest-bearing deposits back to the Fund;

- Transfer interest-bearing deposits to projects under loan contracts (if transferred directly from the interest-bearing deposit account to the borrower).

Debit Balance:

The amount of Vietnamese Dong and foreign currency currently deposited in banks.

Account 131 - Interest-Bearing Deposits has two sub-accounts:

- Sub-account 1311 - Vietnamese Dong: Reflects the amount of interest-bearing deposits at banks, deposits made, withdrawals, and the current balance in Vietnamese Dong.

- Sub-account 1312 - Foreign Currency: Reflects the amount of interest-bearing deposits at banks, deposits made, withdrawals, and the current balance in various foreign currencies converted to Vietnamese Dong.

3. Accounting Methods for Some Main Economic Transactions

- Transfer from non-interest-bearing deposits to interest-bearing deposits at commercial banks, record:

- Transfer from non-fixed term deposits to fixed-term deposits, record:

Credit Account 112 - Treasury Deposits.

- Periodically collect bank interest and add it to the principal of interest-bearing deposits, record:

- Transfer from non-fixed term deposits to fixed-term deposits, record:

Credit Account 312 - Receivables (3122).

- Withdraw interest-bearing deposits back to non-interest-bearing deposit accounts based on the Treasury's Credit Notice, record:

Debit Account 112 - Treasury Deposits

Credit Account 131 - Fixed-Term Deposits.

- If transferring interest-bearing deposits to repay debts to the state budget directly from the interest-bearing deposit account, based on the Treasury's Debt Notice, record:

Debit Account 641 - Fund Operating Expenses

Credit Account 131 - Fixed-Term Deposits.

- If transferring interest-bearing deposits for entrusted investment, loans to the State Budget, Vietnam Development Bank, capital advances for projects with guarantees, and re-lending projects directly from the interest-bearing deposit account, record:

Debit Account 221 - Entrusted Investment

Debit Account 221 - Entrusted Investments

Credit Account 131 - Fixed-Term Deposits.

Article 18. Account 221 - Entrusted Investment

This account is used to reflect the current value and changes in the increase and decrease of entrusted investment funds of the Debt Repayment Accumulation Fund deposited with major commercial banks, reputable domestic financial organizations, and foreign banks legally operating in Vietnam.

1. Accounting principles for Account 221 - Entrusted Investment

- Only record into Account 221 the amounts of money that the Fund transfers to commercial banks to perform asset management services.

- Entrusted investments into banks must be reflected at cost. Interest and fees shall be carried out according to the contents recorded in the Contract.

- The accountant must open detailed ledgers to track each entrusted investment into each bank and each entrusted amount.

- Income from entrusted investment activities is recorded in Account 542 - Management Fund Revenue.

2. Structure and content reflected in Account 221 - Entrusted Investment

Debit Side: Reflects the value of increased entrusted investments.

Credit Side: Reflects the value of decreased entrusted investments.

Debit Balance: Reflects the current value of entrusted investments held by the Fund at commercial banks.

3. Methods of Accounting for Certain Main Transactions

- When the Fund transfers its deposit to carry out entrusted investment activities, based on the Deposit and Entrusted Investment Contracts, record:

Debit Account 221 - Entrusted Investment

Credit Account 112 - Treasury Deposits.

- When receiving profits from entrusted investment activities, record:

Debit Account 112 - Treasury Deposits

Debit Account 221 - Entrusted Investment (In case the distributed profit increases the entrusted investment amount, if applicable)

Credit Account 542 - Fund Management Revenue.

- When recovering entrusted investments, record:

Debit 112 - Treasury Deposits

Credit Account 221 - Entrusted Investment.

- In case the Fund has not recovered the entrusted investment by the maturity date, interest and principal will be carried over to the next period based on the Contract, record:

Debit Account 221 - Entrusted Investment (Interest portion added to principal)

Credit Account 542 - Fund Management Revenue.

Article 19. Account 231 - Loans and Advances

This account is used to reflect the current value and changes in the increase and decrease of loans and advances made by the Fund as stipulated.

1. Accounting principles for Account 231 - Loans and Advances

- Loans and advances include: Loans to the State Budget, loans to the Investment and Development Bank, advances for rescheduling projects, and advances for guaranteed projects.

- When making loans or advances, the accountant must detail each loan or advance according to the recipient, method, term, and interest rate.

- Record in this account are interest-bearing loans, interest from loans is recorded in Account 542 - Management Fund Revenue.

- Record in the loan account according to the original cost principle. For foreign currency loans, when reducing advances, record the credit side of the loan account according to the book exchange rate.

- The accountant must open detailed ledgers to track loans within the term, non-performing loans, and write-offs. Loans that have expired but not yet recovered are transferred from current loans to non-performing loans, and if authorized to write off overdue debts, they are transferred from non-performing loans to write-offs. Upon write-off, the accountant records a reduction in debt.

2. Structure and content reflected in Account 231 - Loans and Advances

Debit Side: Reflects the value of increased loans and advances.

Credit Side: Reflects the value of decreased loans and advances.

Debit Balance: Reflects the current value of outstanding loans.

Account 231 - Loans and Advances includes four second-level accounts:

- Account 2311 - Loans to the State Budget:

Reflects interest-bearing loans to the State Budget, including three third-level accounts:

. Account 23111 - Within Term: This account is used to reflect loans to the State Budget and the recovery situation of such loans within the term.

. Account 23112 - Overdue: This account is used to reflect overdue loans to the State Budget that have not been repaid.

. Account 23113 - Non-performing: This account is used to reflect loans to the State Budget where the State Budget lacks the ability to repay or faces risks during the use of the capital, approved by the competent authority to be classified as non-performing pending resolution.

- Account 2312 - Advances for Rescheduling Debts and Portfolios, including three third-level accounts:

Account 23121 - Within Term: This account is used to reflect advances for rescheduling debts and portfolios and the recovery situation of such advances within the term.

Account 23122 - Overdue: This account is used to reflect advances for rescheduling debts and portfolios that have exceeded the repayment term but have not been repaid.

Account 23123 - Non-performing: This account is used to reflect advances for rescheduling debts and portfolios where the projects lack the ability to repay or face risks during the use of the capital, approved by the competent authority to be classified as non-performing pending resolution.

- Account 2313 - Advances on Behalf of Guaranteed Parties, including three third-level accounts:

Account 23131 - Within Term: This account is used to reflect advances on behalf of guaranteed parties and the recovery situation of such advances within the term.

Account 23132 - Overdue: This account is used to reflect advances on behalf of guaranteed parties that have exceeded the repayment term but have not been repaid.

Account 23133 - Non-performing: This account is used to reflect advances on behalf of guaranteed parties where the projects lack the ability to repay or face risks during the use of the capital, approved by the competent authority to be classified as non-performing pending resolution.

- Account 2318 - Other Advances, including three third-level accounts:

Account 23181 - Within Term: This account is used to reflect advances to other entities as prescribed and the recovery situation of such advances within the term.

Account 23182 - Overdue: This account is used to reflect advances to other entities as prescribed that have exceeded the repayment term but have not been repaid.

Account 23183 - Non-performing: This account is used to reflect advances to other entities as prescribed where the entities lack the ability to repay or face risks during the use of the capital, approved by the competent authority to be classified as non-performing pending resolution.

3. Methods of Accounting for Certain Main Transactions

- When disbursing loans, based on Loan Agreements or Promissory Notes and loan disbursement vouchers, record:

Debit Account 231 - Loans and Advances (Detailed second-level account as appropriate) (Within Term details)

Credit Account 112 - Treasury Deposits.

- Calculate interest on loans receivable periodically based on the loan agreement recorded as:

Debit Account 312 - Receivables (3121)

Credit Account 542 - Fund Management Revenue.

- When organizations or projects pay interest on loans, based on the Credit Notice from the State Treasury, record:

Debit Account 112 - Treasury Deposits

Credit Account 312 - Receivables (3121).

- When recovering loan amounts, based on the loan recovery documents (principal) and the Credit Notice from the State Treasury, record:

Debit Account 112 - Deposits at State Treasury (Exchange rate published by the Ministry of Finance)

Debit Account 413 - Exchange Rate Difference (the difference between the exchange rate published by the Ministry of Finance and the recorded exchange rate is smaller)

Credit Account 231 - Loans and Advances (Detailed according to each borrower) (Recorded exchange rate)

Credit Account 413 - Exchange Rate Difference (The difference between the exchange rate published by the Ministry of Finance and the recorded exchange rate).

- When the due date arrives but the borrower does not extend the debt repayment period and cannot repay the debt, and the competent authority approves the write-off of the debt for fund expenses, record:

Debit Account 641 - Fund Operating Expenses

Credit Account 231 - Loans and Advances.

- When the due date arrives but the borrower has not repaid the debt and does not extend the repayment period, the loan debt is transferred to overdue debt, record:

Debit Account 231 - Loans and Advances (Detailed Sub-account appropriate) (Overdue details)

Credit Account 231 - Loans and Advances (Detailed Sub-account appropriate) (Within-term details).

- Losses on loan capital (due to natural disasters, fire, floods) or authorized bodies transfer such debts to non-performing loans awaiting resolution, record:

Debit Account 231 - Loans and Advances (Detailed Sub-account appropriate) (Non-performing loan details)

Credit Account 231 - Loans and Advances (Detailed Sub-account appropriate) (Overdue details).

- When advancing payments on behalf of guaranteed entities; Advancing funds to other entities as prescribed, record:

Debit Account 231 - Loans and Advances (Detailed Sub-account appropriate)

Credit Account 112 - Treasury Deposits.

- When entities that have received advances repay the advanced amount, record:

Debit Account 112 - Treasury Deposits

Credit Account 231 - Loans and Advances (Detailed Sub-account appropriate).

- For activities involving advances to restructure debts, portfolios

When the Fund advances funds to restructure debts, portfolios, record:

Debit Account 231 - Loans and Advances (2312)

Credit Account 112 - Treasury Deposits.

The portion of the Fund's recovery of advances for debt restructuring, portfolios, record:

Debit Account 112 - Treasury Deposits

Credit Account 231 - Loans and Advances (2312).

The interest income from advance activities to restructure debts, portfolios (in cases where interest is immediately collected), record:

Debit Account 112 - Treasury Deposits

Credit Account 542 - Fund Management Revenue (5421).

Article 20. Account 311 - Advance Payments

This account is used to reflect the amounts temporarily advanced by the Fund to the State Budget, projects, and management activities of the Fund, and the settlement status of these temporary advances.

1. Principles of Accounting for Account 311 - Advance Payments

- Entries into this account include temporary advances made by the Fund to the budget, projects as directed by the Government without interest. Do not enter into this account advances to projects that must pay interest.

- Accountants must maintain detailed ledgers for temporary advances, tracking each recipient, each advance, and each settlement.

2. Structure and Content Reflected in Account 311 - Advance Payments

Debit Side: Amounts temporarily advanced.

Credit Side: Temporary advances that have been settled.

Debit Balance: Reflects the unsettled temporary advance balance.

This account has two sub-accounts:

- Account 3111 - Advance Payments for Fund Activities: This account reflects temporary advances for Fund activities such as advances to the budget, countries, projects, and other temporary advances.

- Account 3112 - Advance Payments for Fund Management: This account reflects temporary advances for Fund management activities (only entered into this account when financial mechanisms allow for temporary advances for Fund management).

3. Methods of Accounting for Certain Main Transactions

- Based on the advance payment documents, record:

Debit Account 311 - Advance Payments

Credit Account 112 - Treasury Deposits.

- Recovering temporary advances (such as those to the State Budget, projects), record:

Debit Account 112 - Treasury Deposits

Credit Account 311 - Advance Payments (3111).

- Settle the temporary advances for Fund management, based on the advance payment settlement sheet, record:

Debit Account 642 - Fund Management Expenses

Credit Account 311 - Advance Payments (3112).

Article 21. Account 312 - Receivables

This account is used to reflect receivables such as: receivables for interest on loans, receivables for interest on deposits, receivables for guarantee fees, commitment fees, management fees under agreements, receivables from the State Budget arising from the Fund's restructuring operations, receivables for interest on capital advances (if any), and the settlement status of these receivables.

1. Principles of Accounting for Account 312 - Receivables

- Detailed accounting is conducted for each receivable and each payment.

- The Fund records receivables from the State Budget due to debt restructuring (such as purchasing debts...) that the State has borrowed from abroad in Account 312. It does not record in this account amounts lent to the budget or temporary advances to the budget; nor does it record receivables from resold loans.

2. Structure and Content Reflected in Account 312 - Receivables

Debit Side: Amounts receivable for interest on loans, interest on deposits, guarantee fees, commitment fees, management fees under agreements, and receivables from the State Budget arising from the Fund's restructuring operations.

Credit Side: Amounts received from receivables.

Debit Balance: Reflects receivables still outstanding at the end of the accounting period.

Account 312 - Receivables has five sub-accounts.

- Sub-account 3121 - Receivables for Interest on Loans: Reflects receivables for interest (such as those for projects, development bank loans).

- Sub-account 3122 - Receivables for Interest on Deposits: Reflects receivables for interest on term deposits.

- Sub-account 3123 - Receivables for Fees: Reflects receivables for commitment fees, management fees under agreements.

- Sub-account 3124 - Receivables for Debt Restructuring: Reflects receivables from the State Budget for debts purchased.

- Sub-account 3128 - Other Receivables: Reflects other receivables not covered by the above receivable accounts (such as receivables for interest on capital advances, receivables for unauthorized expenditures...).

3. Methods of Accounting for Certain Main Transactions

- At the end of the period, determine the interest amount of loans made from temporarily idle funds based on the Loan Contract, record:

Debit Account 312 - Receivables (3121)

Credit Account 542 - Fund Management Revenue (5421).

- When receiving loan interest payments, based on the Bank of Vietnam's Credit Notice, record:

Debit Account 112 - Treasury Deposits

Credit Account 312 - Receivables (3121).

- At the end of the period, determine the interest amount of capital advances, record:

Debit Account 312 - Receivables (3128)

Credit Account 542 - Fund Management Revenue (5428).

- When receiving interest on capital advances, based on the Bank of Vietnam's Credit Notice, record:

Debit Account 112 - Treasury Deposits

Credit Account 312 - Receivables (3128).

- At the end of the period, determine the interest amount of term deposits, record:

Debit Account 312 - Receivables (3122)

Credit Account 542 - Fund Management Revenue (5421, 5428).

- When receiving interest on term deposits, based on the Bank's Credit Notice, record:

Debit Account 112 - Treasury Deposits (if receiving money back)

Credit Account 312 - Receivables (3122).

- Based on the outstanding balance, record receivables for fees:

Debit Account 312 - Receivables (3123)

Credit Account 541 - Fund Operating Revenue (5411).

- When receiving fees, based on the Bank's or Treasury's Credit Notice, record:

Debit Account 112 - Treasury Deposits

Credit Account 312 - Receivables (3123).

- When purchasing State Budget debts still payable to foreign creditors according to the repayment plan, based on debt purchase documents, record:

Debit Account 312 - Receivables (the amount the State still needs to pay according to the foreign loan contract that the Fund has purchased)

Credit Account 112 - Treasury Deposits (the amount the Fund actually pays)

Credit Account 414 - Debt Restructuring Differential (the difference between the amount the Fund spends to purchase the debt and the amount the State still needs to pay according to the foreign loan contract).

- When the Fund receives money from the State for debt repayment according to the repayment plan, record:

Debit Account 112 - Treasury Deposits

Credit Account 312 - Receivables (appropriate sub-account details).

- Reflect the interest receivable on overdue loans transferred, record:

Debit Account 312 - Receivables (appropriate sub-account details)

Credit Account 542 - Fund Management Revenue.

- In cases where overdue loan interest receivables not collected are transferred to be included in overdue principal according to regulations, record:

Debit Account 231 - Loans and Advances (Overdue Details).

Credit Account 312 - Receivables (appropriate sub-account details).

Article 22. Account 331 - Due to State Budget

This account is used to reflect the amounts due and the settlement situation of the Fund's debts payable to the State Budget in cases where the Fund pays on behalf of government-guaranteed borrowing projects, with the Ministry of Finance directly transferring payments from the Fund to creditors but the Fund lacks sufficient sources and must temporarily borrow from other State Budget sources.

1. Principles for Accounting Entry of Account 331 - Due to State Budget

- All debts payable by the Fund must be detailed recorded according to each payment content and each payment occasion. The total debt payable on the consolidated account must equal the sum of detailed debts payable of each debt.

- Strictly monitor all debts payable and settle them promptly and on time.

- Detailed accounting for debts payable must maintain subsidiary ledgers to track each debtor's debts payable.

2. Structure and Content Reflected in Account 331 - Due to State Budget

Debit side: Reflects the amount paid to the State Budget.

Credit side: Reflects the amount due to the State Budget in cases where the Fund pays on behalf of government-guaranteed borrowing projects, with the Ministry of Finance directly transferring payments from the Fund to creditors but the Fund lacks sufficient sources and must temporarily borrow from other State Budget sources.

Credit balance: Reflects the remaining amount due to the State Budget.

3. Methods of Accounting for Certain Main Transactions

- When the State Budget lends money to the Fund to pay off creditors based on a capital advance contract with the guaranteed party, record:

Debit Account 112 - Treasury Deposits

Credit Account 331 - Due to State Budget.

- When temporarily borrowing from the State Budget to lend based on a capital advance contract with the guaranteed party, in cases where the State Budget directly transfers funds to the projects, record:

Debit Account 221 - Entrusted Investments

Credit Account 331 - Due to State Budget.

- Record payment to the budget based on the payment voucher as follows:

- When repaying the budget the amount the Fund borrowed to advance pay on behalf of projects with government guarantees, record:

Credit Account 112 - Treasury Deposits.

Article 23. Account 338 - Other Payables

Account 338 is used to reflect the amounts due and the settlement situation of the Fund's debts payable outside the amounts due to the State Budget.

1. Principles for Accounting Entry of Account 338 - Other Payables

- All debts payable by the Fund must be detailed recorded according to each debtor, payment content, and each payment occasion. The total debt payable on the consolidated account must equal the sum of detailed debts payable of each debt.

- Strictly monitor all debts payable and settle them promptly and on time.

2. Structure and Content Reflected in Account 338 - Other Payables

Debit side: Reflects the amount paid to parties outside the amounts due to the State Budget.

Credit side: Reflects the amount due to parties outside the amounts due to the State Budget.

Credit balance: Reflects the remaining amount due to parties outside the amounts due to the State Budget.

3. Methods of Accounting for Certain Main Transactions

- Reflects the excess guarantee fees, recovered loan repayments for re-lending submitted by enterprises and lending agencies over the required amount, record:

Debit Account 112 - Treasury Deposits

Credit Account 338 - Other Payables.

- If the excess guarantee fees and recovered loan repayments for re-lending are offset in the following period, record:

Debit Account 338 - Other Payables

Credit Account 541 - Fund Revenue.

- If returning the excess amount submitted by enterprises and agencies, when returning, record:

Debit Account 338 - Other Payables

Credit Account 112 - Treasury Deposits.

- In cases where supplementary funding is provided to enhance the effectiveness of debt management as prescribed, record:

Debit Account 642 - Fund Management Expenses

Credit Account 338 - Other Payables.

Article 24. Account 413 - Exchange Rate Difference

This account is used to reflect the exchange rate differences of foreign currency economic transactions and the handling situation of such foreign currency exchange rate differences.

1. Principles for Accounting Entry of Account 413 - Exchange Rate Difference

- Foreign currency economic transactions must be converted into Vietnamese Dong for bookkeeping purposes at the foreign currency accounting exchange rate published by the Ministry of Finance at the time of transaction occurrence, except where otherwise stipulated by law.

- For foreign currency purchase and sale transactions, they must be converted into Vietnamese Dong at the actual exchange rate at the time of transaction occurrence for bookkeeping purposes. If there is an exchange rate difference, this difference should be reflected on Account 413 - Exchange Rate Difference.

- For projects repaying foreign currency loans in Vietnamese Dong, accounting entries should be made according to the exchange rate specified in the Loan Agreement or Capital Advance Agreement.

- Exchange rate differences arising from transactions should be immediately recorded in Account 413 - Exchange Rate Difference upon transaction occurrence.

- The Fund is permitted to revalue the end-of-period balances of foreign currency monetary items at the foreign currency accounting exchange rate published by the Ministry of Finance.

- Exchange rate differences arising from the revaluation of foreign currency monetary items at the end of the accounting period (year), after offsetting on Account 413, should be transferred to the Credit side of Account 541 - Revenue from Fund Operations (if exchange rate gain) or to the Debit side of Account 641 - Expenditure from Fund Operations (if exchange rate loss).

- Units must maintain original currency records in detail on the subsidiary ledger of accounts: Bank Deposits; Term Deposits; Accounts Receivable; Accounts Payable,...

2. Structure and Content Reflected in Account 413 - Exchange Rate Difference

Debit Side:

- Exchange rate differences (exchange rate losses) arising during the period from foreign currency transactions;

- Transfer (handle) exchange rate differences (exchange rate gains) into Account 541 - Revenue from Fund Operations.

- Exchange rate differences from revaluing monthly foreign currency balances (exchange rate losses) of foreign currency monetary items;

- Transfer (handle) exchange rate differences from revaluing annual foreign currency balances (exchange rate gains) of foreign currency monetary items into the Credit side of Account 541 - Revenue from Fund Operations.

Credit Side:

- Exchange rate differences (exchange rate gains) arising from foreign currency transactions.

- Transfer (handle) exchange rate differences (exchange rate losses) into Account 641 - Expenditure from Fund Operations.

- Exchange rate differences from revaluing monthly foreign currency balances (exchange rate gains) of foreign currency monetary items;

- Transfer (handle) exchange rate differences from revaluing annual foreign currency balances (exchange rate gains) of foreign currency monetary items into the Debit side of Account 641 - Expenditure from Fund Operations.

This account has either a debit balance or a credit balance:

Debit balance: Reflects the unhandled exchange rate differences (exchange rate losses) up to the end of the reporting period.

Credit balance: Reflects the unhandled exchange rate differences (exchange rate gains) up to the end of the reporting period.

3. Methods of Accounting for Certain Main Transactions

- Withdraw foreign currency deposits from the Treasury to buy Vietnamese Dong to repay debts to the State Budget, based on the Notice of Debt, record:

Debit Account 641 - Expenditure from Fund Operations (actual exchange rate)

Debit Account 413 - Exchange Rate Difference (The amount of exchange rate difference due to the actual exchange rate being lower than the recorded exchange rate)

Credit Account 112 - Treasury Deposits (recorded exchange rate)

Credit Account 413 - Exchange Rate Difference (The amount of exchange rate difference due to the actual exchange rate being higher than the recorded exchange rate).

At the same time, record on the Credit side of Account 007 - Various Foreign Currencies (off-balance sheet account).

- Recovering capital from entrusted investment activities, State Budget, Vietnam Development Bank, projects with guarantees, loan-refinancing projects, record:

Debit Account 112 - Treasury Deposits (At the announced exchange rate of the Ministry of Finance)

Debit Account 413 - Exchange Rate Difference (The amount of exchange rate difference announced by the Ministry of Finance being lower than the recorded exchange rate)

Credit Account 221 - Entrusted Investment (At the recorded exchange rate); or

Credit Account 231 - Loans and Advance Capital (At the recorded exchange rate)

Credit Account 413 - Exchange Rate Difference (The amount of exchange rate difference announced by the Ministry of Finance being higher than the recorded exchange rate).

Credit Account 541 - Fund Revenue (exchange rate published by the Ministry of Finance)

- Withdrawing funds from term deposit accounts at banks to non-term deposit accounts at the Treasury, record:

Debit Account 112 - Treasury Deposits (1121) (At the announced exchange rate of the Ministry of Finance)

Debit Account 413 - Exchange Rate Difference (The amount of exchange rate difference announced by the Ministry of Finance being higher than the recorded exchange rate)

Credit Account 131 - Term Deposits (At the recorded exchange rate)

Credit Account 413 - Exchange Rate Difference (The amount of exchange rate difference announced by the Ministry of Finance being lower than the recorded exchange rate)

Credit Account 541 - Fund Revenue (exchange rate published by the Ministry of Finance)

- At year-end, transfer the foreign exchange rate differences:

For increased exchange rate differences, transfer to the Credit side of Account 541, record:

Debit Account 413 - Exchange Rate Difference

Credit Account 541 - Fund Revenue.

For decreased exchange rate differences, transfer to the Debit side of Account 641, record:

Debit Account 641 - Fund Operating Expenses

Credit Account 413 - Exchange Rate Difference.

- Accounting for exchange rate differences resulting from monthly revaluation of monetary items denominated in foreign currencies based on the accounting exchange rate published by the Ministry of Finance for the following month.

In case the accounting exchange rate published by the Ministry of Finance for the following month is higher than the exchange rate currently reflected in the accounting records, the exchange rate difference shall be handled as follows:

For deposits and receivables denominated in foreign currencies, record:

Debit Accounts 112, 131, 311, 312

Credit Account 413 - Exchange Rate Difference.

For foreign currency liabilities, record:

Debit Account 413 - Exchange Rate Difference

Credit Accounts 331, 338.

In case the accounting exchange rate published by the Ministry of Finance for the following month is lower than the exchange rate currently reflected in the accounting records, the exchange rate difference shall be handled as follows:

For deposits and receivables denominated in foreign currencies, record:

Debit Account 413 - Exchange Rate Difference

Credit Accounts 112, 131, 311, 312.

For foreign currency liabilities, record: Debit Accounts 331, 338

Credit Account 413 - Exchange Rate Difference.

- Handling exchange rate differences resulting from annual revaluation of monetary items denominated in foreign currencies.

In case foreign exchange losses occur, transfer the foreign exchange loss to Account 641, record:

Debit Account 641 - Fund Operating Expenses (6415), Credit Account 413 - Exchange Rate Difference.

In case foreign exchange gains occur, transfer the foreign exchange gain to Account 541, record:

Debit Account 413 - Exchange Rate Difference

Credit Account 541 - Fund Operating Revenue (5415).

Article 25. Account 414 - Debt Structure Differences

This account is used to reflect the amount of differences and handle differences arising from debt restructuring activities (buyback of debts, reorganization, etc.).

1. Principles of Accounting for Account 414 - Debt Structure Differences

Only record into Account 414 - Debt Structure Differences the difference between the actual amount the Fund spends to buy back foreign debts (for debts that have been restructured) and the remaining amount the State Budget still needs to pay to foreign creditors according to the repayment plan.

2. Structure and Content Reflected in Account 414 - Debt Structure Differences

Debit Side: Transfer to Account 542 - Fund Management Revenue when the State Budget has fully repaid the Fund according to each debt.

Credit Side: The difference between the remaining amount the State Budget still needs to pay according to the repayment plan and the actual amount the Fund spent for the debt that has been restructured.

Credit Balance: Reflects the unprocessed debt structure differences.

3. Methods of Accounting for Certain Main Transactions

- When purchasing State Budget debts still payable to foreign creditors according to the repayment plan, based on debt purchase documents, record:

Debit Account 312 - Receivables (3124) (the remaining amount the State Budget still needs to pay according to the repayment plan for the debt that the Fund has restructured)

Credit Account 112 - Treasury Deposits (the actual amount the Fund paid)

Credit Account 414 - Debt Structure Differences (the difference between the actual amount the Fund paid for the restructured debt and the remaining amount the State Budget still needs to pay according to the repayment plan)

When the State Budget fully repays the Fund, the accountant transfers the difference between the remaining amount the State Budget still needs to pay according to the repayment plan and the actual amount the Fund paid for the restructured debt to Account 542 - Fund Management Revenue, record:

Debit Account 414 - Debt Structure Differences

Credit Account 542 - Fund Management Revenue.

Article 26. Account 451 - Debt Repayment Reserve Fund

Account 451 is used to reflect the existing amount and changes in the Debt Repayment Reserve Fund.

1. Principles for Accounting Entry of Account 451 - Debt Repayment Reserve Fund

Increases and decreases in the Reserve must comply with the current financial regulations.

2. Structure and Content Reflected in Account 451 - Debt Repayment Reserve Fund

Debit: Decrease in the Debt Repayment Reserve Fund. Credit: Increase in the Debt Repayment Reserve Fund.

Credit Balance: Reflects the existing balance of the Debt Repayment Reserve Fund.

3. Methods of Accounting for Certain Main Transactions

- Calculate and transfer the excess of income over expenses from the operation and management of the Fund, record:

Debit Account 911 - Determining Results (9111, 9112)

Credit Account 451 - Debt Repayment Reserve Fund.

- Calculate and transfer the deficit of income over expenses from the operation and management of the Fund, record:

Debit Account 451 - Debt Repayment Reserve Fund.

Credit Account 911 - Determining Results (9111, 9112).

Article 27. Account 541 - Income from Fund Operations

This account is used to reflect income derived from the business activities of the Fund.

1. Principles for Accounting Entry of Account 541 - Income from Fund Operations

- The items reflected in this account include: Recovery of principal, interest, and fees on loans made from ODA funds and other foreign loans of the Government (after deducting loan service fees) according to the terms specified in supplementary agreements, contracts, and loan agreements; Government guarantee fees; Interest from debt restructuring and portfolio management; Fees for loan disbursement and other income from fund operations.

- Do not reflect in this account interest from deposits, interest from temporary idle funds managed on behalf of loan recipients from ODA funds and other foreign loans of the Government (after deducting loan service fees) according to the terms specified in supplementary agreements, contracts, and loan agreements, and other management income;

- All income related to the Fund's operations must be fully and promptly recorded on the credit side of Account 541 - Income from Fund Operations. At the end of the period, transfer the income generated during the period to Account 911 - Determining Results.

2. Structure and Content Reflected in Account 541 - Income from Fund Operations

Debit Side:

- Transfer the income from fund operations generated during the period to Account 911 - Determining Results.

Credit Side:

- Principal and interest recovered from loans made from ODA funds and other foreign loans of the Government (after deducting loan service fees) according to the terms specified in supplementary agreements, contracts, and loan agreements;

- Foreign loan fees payable (such as insurance fees, commitment fees, management fees).

- Guarantee fees and debt recovery amounts under the Government Guarantee Issuance and Management Regulations.

- Interest from debt restructuring and portfolio management;

- Other income from fund operations.

This account has no ending balance.

Account 541 - Income from Fund Operations consists of six second-level accounts:

- Account 5411 - Recovery of Loans Made for Rescheduling: reflects the recovery of loans (including principal and interest) made for rescheduling.

- Account 5412 - Government Guarantee Fees: This account reflects government guarantee fees.

- Account 5413 - Interest from Debt Restructuring and Portfolio Management: This account reflects interest from debt restructuring and portfolio management.

- Account 5414 - Loan Disbursement Fees: This account reflects fees from loan disbursement.

- Account 5415 - Exchange Rate Differential Interest: This account reflects income from exchange rate differential interest earned by the Fund.

- Account 5418 - Other Income: reflects other lawful income from fund operations.

3. Methods of Accounting for Certain Main Transactions

When loan disbursement agencies, guarantee issuance agencies, and borrowing entities transfer payment for principal and interest on loans from rescheduled funds, based on the bank's credit notice and detailed project statements (for multiple projects), record:

Debit Account 112 - Treasury Deposits

Credit Account 541 - Fund Revenue.

During the period, based on the total outstanding balance to determine the amount of fees to be collected, record:

Debit Account 312 - Receivables

Credit Account 541 - Fund Revenue.

Upon receipt of the fee amount due, based on the bank's credit notice regarding foreign loan fees payable (such as insurance fees, commitment fees, management fees) and loan disbursement fees when the State Treasury pays to foreign countries according to loan agreements, record:

Debit Account 112 - Treasury Deposits

Credit Account 541 - Income from Fund Operations (paid immediately within the period)

Credit Account 312 - Receivables (3123).

Determine the amount of guarantee fees to be collected based on the guarantee contract, record:

Debit Account 312 - Receivables (3123)

Credit Account 541 - Fund Revenue.

Upon collection of guarantee fees, loan disbursement fees, and interest from debt restructuring and portfolio management, based on the bank's credit notice, record:

Debit Account 112 - Treasury Deposits

Credit Account 541 - Income from Fund Operations (paid immediately within the period)

Credit Account 312 - Receivables (3123).

Upon receipt of government payments for income that increases fund operations, based on the bank's credit notice, record:

Debit Account 112 - Treasury Deposits

Credit Account 541 - Fund Revenue.

At the end of the period, transfer the income from fund operations generated during the period to Account 911 - Determining Results, record:

Debit Account 541 - Income from Fund Operations

Credit Account 911 - Determining Results (9111).

Article 28. Account 542 - Management Fund Revenue

This account is used to reflect revenues from the management operations of the Fund.

1. Accounting principles for Account 542 - Management Fund Revenue

- Reflect into this account revenues from interest on deposits, interest from temporary idle funds entrusted management of loans rescheduled from Fund sources according to terms stipulated in supplementary agreements, loan contracts, and rescheduling agreements; Other management revenue.

- Do not reflect into this account recoveries of principal, interest, and fees of loans rescheduled from ODA and other foreign government loans according to terms stipulated in supplementary agreements, loan contracts, and rescheduling agreements; Government guarantee fee income; Interest income from debt restructuring portfolios; Fees for rescheduled loans and other fund activity income.

- All management revenue of the Fund must be fully and promptly reflected on the Credit side of Account 542 - Management Fund Revenue. At the end of the period, transfer the management revenue generated during the period to Account 911 - Determining Results.

2. Structure and content reflected in Account 542 - Management Fund Revenue

Debit Side: Transfer the management revenue generated during the period to Account 911 - Determining Results.

Credit Side: Reflect management revenue generated during the period.

This account has no ending balance.

Account 542 - Management Fund Revenue has two sub-accounts:

- Sub-account 5421 - Interest Income from Deposits, Interest from Temporary Idle Funds Entrusted Management: This account reflects interest income from deposits and interest from temporary idle funds entrusted management of the Fund as stipulated in deposit or entrustment contracts.

- Sub-account 5428 - Other Management Revenue: This account reflects other lawful management revenue of the Fund.

3. Accounting methods for some main economic transactions

- At the end of the period, calculate interest for projects, development banks, State Budget (for interest-bearing loans) borrowed from the Fund's temporarily idle funds, record:

Debit Account 312 - Receivables (3121)

Credit Account 542 - Fund Management Revenue.

- At the end of the period, calculate interest on term deposits, record:

Debit Account 312 - Receivables (3122)

Credit Account 542 - Fund Management Revenue.

When the State Budget fully repays the Fund, the accountant transfers the difference between the remaining amount the State Budget still needs to pay according to the repayment plan and the actual amount the Fund paid for the restructured debt to Account 542 - Fund Management Revenue, record:

Debit Account 414 - Debt Structure Differences

Credit Account 542 - Fund Management Revenue.

- When projects transfer payments for interest due to the Fund, based on the Bank's Notice of Credit and Treasury detail statements for each project (in cases involving multiple projects), record:

Debit Account 112 - Treasury Deposits

Credit Account 542 - Management Fund Revenue (immediate repayment within the period) Credit Account 312 - Receivables (3121).

- At the end of the period, transfer the management revenue generated during the period to Account 911 "Determining Results", record:

Debit Account 542 - Management Fund Revenue

Credit Account 911 - Determining Results (9112).

Article 29. Account 641 - Fund Activity Expenses

This account is used to reflect expenses with operational nature of the Fund.

1. Accounting principles for Account 641 - Fund Activity Expenses

- Recording Fund activity expenses must comply with current financial regulations.

- Expenses reflected in this account include: Repaying the State Budget for amounts advanced to settle foreign debts for rescheduled loans; Advance capital for projects or advance guarantees for projects but projects unable to repay, authorized authorities permit write-off as Fund activity expenses; Transfers to the Department of Debt Management and Foreign Finance as prescribed.

- Do not reflect in this account advances for rescheduled loans or advance guarantees.

- All Fund activity expenses must be fully and promptly reflected on the Debit side of Account 641 - Fund Activity Expenses. At the end of the period, transfer the Fund activity expenses generated during the period to Account 911 - Determining Results.

2. Structure and content reflected in Account 641 - Fund Activity Expenses

Debit Side:

- Repaying the State Budget for amounts advanced to settle foreign debts for rescheduled loans;

- Advances for projects or advance guarantees for projects but projects unable to repay, authorized authorities permit write-off as Fund activity expenses;

- Transfers to the Department of Debt Management and Foreign Finance as prescribed;

- Other Fund activity expenses.

Credit Side: Transfer the Fund activity expenses generated during the period to Account 911 "Determining Results".

This account has no ending balance.

Account 641 - Fund Activity Expenses has five sub-accounts:

- Sub-account 6411 - Expense Repayment to the State Budget: This account reflects expenses for repaying the State Budget for amounts advanced to settle foreign debts for rescheduled loans. This sub-account has three third-level sub-accounts:

- Sub-account 6412 - Non-recoverable Loan Write-offs: This account reflects advances for rescheduled loan projects, advances for projects with government guarantees that were unable to repay and were subsequently written off as budget expenses.

- Sub-account 6413 - Expense Transfer to the Department of Debt Management and Foreign Finance: This account reflects the transfer of guarantee fees and rescheduling fees to the Department of Debt Management and Foreign Finance at the prescribed rate.

- Sub-account 6415 - Exchange Rate Losses: This account reflects expenses of the Fund related to exchange rate losses.

- Sub-account 6418 - Other Activity Expenses: Reflects other activity expenses as prescribed by authorized authorities.

3. Methods of Accounting for Certain Main Transactions

Based on debt repayment notices and Treasury account withdrawal vouchers to repay the State Budget quarterly, record:

Debit Account 641 - Fund Activity Expenses (6411)

Credit Account 112 - Treasury Deposits.

In cases where projects have received advance guarantees according to authorized decisions but later unable to repay, permitted write-offs as state budget expenses, based on vouchers, record:

Debit Account 641 - Fund Activity Expenses (6412)

Credit Account 231 - Loans and Advances (2314).

In cases where projects have received advances for rescheduled loans but later unable to repay, permitted write-offs as state budget expenses, based on write-off vouchers, record:

Debit Account 641 - Fund Activity Expenses (6412)

Credit Account 231 - Loans and Advances (2313).

Based on vouchers transferring from Treasury accounts to the Department of Debt Management and Foreign Finance the income from guarantee fees and rescheduling fees at the prescribed rate, record:

Debit Account 641 - Fund Activity Expenses (6413)

Credit Account 112 - Treasury Deposits.

Unapproved excess expenses must be recovered or transferred for processing, record:

Debit Account 312 - Receivables (3128)

Credit Account 641 - Fund Activity Expenses.

- At the end of the period, transfer the expenses incurred during the period from the Fund's operational account to Account 911 "Determine Result", record

Debit Account 911 - Determine Result (9111)

Credit Account 641 - Fund Activity Expenses.

Article 30. Account 642 - Management Expenses of the Fund

This account is used to reflect management expenses of the Fund according to the financial mechanism regulations.

1. Principles for Accounting Entry of Account 642 - Management Expenses of the Fund

- This account is only used for accounting entries when the financial management mechanism allows for management expense expenditures.

- Entries reflected in this account include management expenses such as part-time salary expenses and other expenses outside of the Fund's operational expenses (according to the Fund's financial regulations).

- Do not reflect in this account expenses that belong to operational expenses of the Fund.

- All management expenses must be fully and promptly recorded on the debit side of Account 642 - Management Expenses of the Fund. At the end of the period, transfer the management expenses incurred during the period to Account 911 "Determine Result".

2. Structure and Content Reflected in Account 642 - Management Expenses of the Fund

Debit Side: Reflects management expenses of the Fund incurred

Credit Side: Transfer the management expenses incurred during the period to Account 911 "Determine Result".

This account has no ending balance.

3. Methods of Accounting for Certain Main Transactions

When making management expenses, based on the Bank's Notice of Debt, record

Debit Account 642 - Fund Management Expenses

Credit Account 112 - Treasury Deposits.

Unapproved excess expenses must be recovered or transferred for processing, record:

Debit Account 312 - Receivables (3128)

Credit Account 642 - Management Expenses of the Fund.

- At the end of the period, transfer the management expenses incurred during the period to Account 911 "Determine Result", record

Debit Account 911 - Determine Result (9111)

Credit Account 642 - Management Expenses of the Fund.

Article 31. Account 911 - Determine Result

1. Principles for Accounting Entry of Account 911 - Determine Result

- Account 911 - Determine Result: This account determines and reflects the results of the Fund's operations and management in an accounting period.

- This account reflects accurately the results of the Fund's operations and management.

- The results must be detailed according to the Fund's operations and management.

2. Structure and Content Reflected in Account 911 - Determine Result

Debit Side:

Operational expenses of the Fund and management expenses; Transfer excess revenue over expenses.

Credit Side:

Revenue from Fund operations and management; Transfer excess expenses over revenue. This account has no end-of-period balance.

Account 911 - Determine Result, has two sub-accounts:

- Account 9111 - Determine Result of Fund Operations: Reflects the results of the Fund's operations in an accounting period.

- Account 9112 - Determine Result of Fund Management: Reflects the results of the Fund's management in an accounting period.

3. Methods of Accounting for Certain Main Transactions

- At the end of the period, the accountant performs the transfer of Fund operational revenue and management revenue to the result determination account, record

Debit Account 541 - Income from Fund Operations

Debit Account 542 - Management Fund Revenue

Credit Account 911 - Determining Results (9111, 9112).

- At the end of the period, the accountant performs the transfer of Fund operational expenses and management expenses to the result determination account, record

Debit Account 911 - Determining Results (9111, 9112)

Credit Account 641 - Operational Expenses of the Fund

Credit Account 642 - Management Expenses of the Fund.

- Calculate and transfer the excess of income over expenses from the operation and management of the Fund, record:

Debit Account 911 - Determining Results (9111, 9112)

Credit Account 451 - Debt Repayment Reserve Fund.

- Calculate and transfer the deficit of income over expenses from the operation and management of the Fund, record:

Debit Account 451 - Accumulated Debt Reserve Fund

Credit Account 911 - Determining Results (9111, 9112).

Article 32. Account 007 - Various Foreign Currencies

1. Principles for Accounting Entry of Account 007 - Various Foreign Currencies

- Account 007 reflects the situation of receipts, payments, and balances in original currency of various foreign currencies held in accounts of the Fund opened at the State Treasury.

- On this account, foreign currencies are not converted into Vietnamese Dong.

- Detailed accounting for Account 007 is done by each type of original currency and each account.

2. Structure and Content Reflected in Account 007 - Various Foreign Currencies

Debit Side: Reflects the amount of foreign currency received (Original Currency).

Credit Side: Reflects the amount of foreign currency paid out (Original Currency).

Debit Balance: Reflects the remaining amount of foreign currency (Original Currency).

Chapter IV. ACCOUNTING SYSTEM

Article 33. Accounting Books

1. Accounting books are used to record, systematize, and retain all transactions related to income and expenditure of the Debt Repayment Reserve Fund. The accounting books include: General Ledger and Detailed Ledgers.

2. Information recorded in the accounting books must ensure full, timely, accurate, truthful, continuous, and systematic reflection of all income and expenditure activities of the Fund, the Fund Management Unit. The Fund accountant shall not leave out any income or expenditure from the accounting books.

3. Opening, closing, and correcting accounting books shall be carried out in accordance with the provisions of the Accounting Law and Decree No. 128/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain articles of the Accounting Law applicable in the field of state accounting.

4. Accounting books must be strictly managed, with clear individual responsibilities assigned for keeping and recording in the books. Whoever is given the accounting book must be responsible for all entries made in the book during their period of custody and recording.

5. When there is a change in personnel responsible for keeping and recording in the books, the Chief Accountant or the person in charge of accounting must organize the handover of management and recording responsibilities between the outgoing and incoming accountants. The outgoing accountant remains responsible for all entries made in the book during their period of custody and recording. The incoming accountant assumes responsibility from the date of handover. The handover record must be signed and confirmed by the Chief Accountant or the person in charge of accounting.

6. Accounting books must be recorded promptly, clearly, and fully according to the contents of the books. Information and figures recorded in the accounting books must be accurate, truthful, and consistent with accounting vouchers.

7. Recording in accounting books must follow the chronological sequence of economic and financial transactions. Information and figures recorded on the accounting books of the following year must continue those of the preceding year. Accounting books must be recorded continuously from the time they are opened until they are closed.

Article 34. Accounting Method

1. The Debt Repayment Reserve Fund applies the Voucher Posting Accounting Method.

a) Basic characteristics of the Voucher Posting Accounting Method

The basic characteristic of the Voucher Posting Accounting Method is that the posting of the general ledger is based directly on "Voucher Posting". Voucher Posting is used to classify, systematize, and determine the debit and credit entries of economic and financial transactions that have occurred. Recording in the general ledger based on voucher posting will be separated into two distinct processes:

- Recording in chronological order of economic and financial transactions on the Voucher Posting Register;

- Recording according to the economic content of economic and financial transactions on the General Ledger.

b) Types of accounting books:

- Voucher Posting;

- Voucher Posting Register;

- General Ledger;

- Detailed Ledgers.

c) Content and sequence of recording in the books under the Voucher Posting Accounting Method:

The content and sequence of recording in the accounting books under the Voucher Posting Accounting Method at the Debt Repayment Reserve Fund comply with the regulations stipulated in the Accounting System for Administrative and Public Institutions issued pursuant to Decision No. 19/2006/QĐ-BTC dated March 30, 2006 of the Minister of Finance.

2. The list of accounting books, book templates, and explanations of the method of recording in the accounting books are specified in Appendix No. 03 attached hereto.

Chapter V. FINANCIAL REPORTING SYSTEM

Article 35. Responsibilities of the Debt Repayment Reserve Fund in Establishing and Submitting Financial Reports

1. The Debt Repayment Reserve Fund shall be responsible for establishing and submitting periodic financial reports quarterly and annually.

2. List of financial reports applicable to the Debt Repayment Reserve Fund

3. In addition to the aforementioned financial reports, the Debt Repayment Reserve Fund must also establish a quick report (monthly) as required by the management of the Minister of Finance.

4. The format of the report and the explanation of the method of preparing financial reports are stipulated in Appendix 04 issued together with this Circular.

Article 36. Requirements for Establishing and Presenting Financial Reports

1. The preparation of financial reports must ensure truthfulness, objectivity, completeness, timeliness, and accurately reflect the asset status, liabilities, income, and expenditures of the Fund.

2. The preparation of financial reports must be based on accounting data after closing the books.

Financial reports must be prepared in accordance with their content, methods, and presented consistently across reporting periods.

3. Financial reports must be signed and stamped by the preparer, the chief accountant, and the Director of the Debt Management Bureau before submission or public disclosure.

Article 37. Deadline for Submitting Financial Reports

1. Quarterly financial reports must be submitted no later than the 10th day of the first month of the following quarter.

2. Annual financial reports must be submitted no later than 30 days after the end of the annual accounting period.

Chapter VI. IMPLEMENTATION

Article 38. Effective Date

1. This Circular takes effect from January 1, 2015.

2. This Circular replaces Circular No. 139/2009/TT-BTC dated July 8, 2009 on Accounting Guidelines for the Debt Repayment Reserve Fund. All previous regulations inconsistent with this Circular are hereby abolished.

Article 39. Implementation Organization

The Head of the Accounting System and Audit Department, the Director of the Debt Management and Foreign Financial Affairs Bureau, and the heads of relevant units are responsible for implementing and guiding the enforcement of this Circular./.