Decision No. 222/QD-NH2 supplements and amends certain accounts in the accounting system for credit organizations, including the accounting of collateral for guarantees, financial leasing, re-guarantees, interest income from financial leasing, and management of assets for leasing. The Decision takes effect fifteen days after the date of issuance.
Scope of application
Credit organizations, financial leasing companies, the State Bank of Vietnam, units under the State Bank, and credit organizations.
Key points
- Credit organizations → supplement and amend certain accounts in the accounting system pursuant to Decision No. 41/QD-NH2 and Circular No. 02/TT-NH2, including new accounts such as 'Collateral for Guarantees', 'Financial Leasing', 'Guarantees, Re-guarantees'.
- Credit organizations → record details of the accounts according to specific provisions on content and bookkeeping methods.
- Financial leasing companies → manage assets for financial leasing through the opening of sub-ledgers for each asset.
- Credit organizations → record interest income from financial leasing according to regulations.
- Guarantee banks → record payments made on behalf of customers and handle them in accordance with the law.
🌐 Social impact of this document
- Positive impact: Enhance transparency and effective management of leased assets, enabling credit organizations and financial leasing companies to assess risks and recover debts.
- Negative impact: May increase accounting costs for credit organizations due to the implementation of new regulations.
❓ Frequently asked questions
What accounts do credit organizations need to supplement?
It is necessary to supplement and amend accounts such as 2016 'Collateral for Guarantees', 2026 'Foreign Currency Collateral for Guarantees', 43 'Financial Leasing' (including third-level accounts), 46 'Guarantees, Re-guarantees', 8018 'Interest Income from Financial Leasing'.
How should credit organizations record the new accounts?
Credit organizations need to record in detail according to the content and bookkeeping methods specified in the Decision, including opening sub-ledgers for each leasing customer or leased asset.
Does the General Director of the financial leasing company need to take any action?
Financial leasing companies need to manage assets for leasing through the opening of sub-ledgers for each asset, while also maintaining detailed records for each leasing customer.
What obligations does the guarantee bank have?
Guarantee banks must record payments made on behalf of customers and handle them according to the law. If the customer is unable to pay, the guarantee bank must auction the collateral to recover the debt.
When does this Decision take effect?
The Decision takes effect fifteen days after the date of issuance.
Full text
Pursuant to …;
Regarding the supplementation and amendment of certain accounts in the accounting system of credit organizations
GOVERNOR OF THE STATE BANK OF VIETNAM
Pursuant to the State Bank of Vietnam Ordinance, the Banking Ordinance, Credit Cooperative Ordinance, and Financial Company Ordinance dated May 23, 1990;
Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government on the tasks, powers, and responsibilities for state management of Ministries and ministerial-level agencies;
At the proposal of the Director of the Accounting and Finance Department of the State Bank.
Pursuant to …;
Article 1. Supplementing and amending certain accounts in the accounting system of credit organizations issued pursuant to Decision No. 41/QĐ-NH2 dated March 6, 1993, and Circular No. 02/TT-NH2 dated April 19, 1993, of the Governor of the State Bank of Vietnam, the following accounts are supplemented and amended:
1. Supplementing Account 2016 "Deposit Guarantee Fund"
2. Supplementing Account 2026 "Foreign Currency Deposit Guarantee Fund"
3. Renaming Account 43 "Leasing Credit" to: "Financial Leasing"
4. Renaming Account 431 "Leasing Credit" to: "Financial Leasing in Vietnamese Dong" and supplementing the following third-level accounts:
4311 Advance payment for purchasing assets for financial leasing.
4312 Financial leasing overdue debt within limit and extended.
4313 Financial leasing overdue debt up to 180 days with recoverable potential.
4314 Financial leasing overdue debt from 181 to 360 days with recoverable potential.
4315 Non-performing financial leasing debt.
5. Supplementing second-level account 432 "Financial Leasing in Foreign Currency" under Account 43 and including the following third-level accounts:
4321 Advance payment for purchasing assets for financial leasing.
4322 Financial leasing overdue debt within limit and extended.
4323 Financial leasing overdue debt up to 180 days with recoverable potential.
4324 Financial leasing overdue debt from 181 to 360 days with recoverable potential.
4325 Non-performing financial leasing debt.
6. Supplementing Account 46 "Guarantee and Re-guarantee" and including the following second-level accounts:
461 Amounts paid on behalf of customers in Vietnamese Dong.
462 Amounts paid on behalf of customers in foreign currency.
7. Supplementing Account 8018 "Interest Income from Financial Leasing"
8. Supplementing Account 94 "Assets Used for Financial Leasing" and including the following second-level accounts:
941 Assets used for financial leasing currently managed by the company.
942 Assets used for financial leasing currently leased to customers.
Article 2. The third-level accounts under second-level account 431 "Financial Leasing in Vietnamese Dong" are used to record financial leasing contracts where lease payments are determined in Vietnamese Dong. The third-level accounts under second-level account 432 "Financial Leasing in Foreign Currency" are used to record financial leasing contracts where lease payments are determined in foreign currency as stipulated in Circular No. 03-TT/NH5 dated February 9, 1996, of the Governor of the State Bank of Vietnam, "Guidelines for Implementing the Interim Regulations on the Organization and Operation of Financial Leasing Companies in Vietnam accompanying Decree No. 64/CP dated October 9, 1995, of the Government."
The accounting entries on the accounts specified in Article 1 are detailed as follows:
1. For Accounts 2016 and 2026 - Deposit Guarantee Fund.
These accounts are used to record the amount of deposit guarantee fund (in Vietnamese Dong or foreign currency) deposited by the guarantor bank at the State Bank of Vietnam.
Debit side records: - The amount of deposit guarantee fund deposited into the SBV.
Credit side records: - The amount of deposit guarantee fund withdrawn by the guarantor bank.
Debit balance: - Reflects the amount of deposit guarantee fund currently deposited at the State Bank of Vietnam.
Detailed entries:
- Open a sub-account.
2. For Accounts 4311 and 4321 - Advance Payment for Purchasing Assets for Financial Leasing.
These accounts are used to record the amount of money spent to purchase assets for financial leasing before the start of financial leasing (as stated in the financial leasing contract).
Debit side records: - The amount of money spent to purchase assets for financial leasing.
Credit side records: - The value of assets transferred to financial leasing.
Debit balance: - Reflects the amount of money spent to purchase assets for financial leasing that have not yet been transferred to financial leasing.
Detailed entries:
- Open a sub-account according to each financial leasing customer.
3. For Accounts 4312 and 4322 - Financial Leasing Overdue Debt Within Limit and Extended.
These accounts are used to record the value of assets for financial leasing currently leased to customers according to the contract and the portion of financial leasing assets that the financial leasing company has extended and assessed as having the ability to repay on time and in full when due.
Debit side records: - The value of assets handed over to customers for financial leasing according to the contract.
Credit side records: - The value of financial leasing assets recovered when customers pay according to the contract.
- The value of financial leasing assets transferred to appropriate overdue debt accounts.
Debit balance: - Reflects the value of assets handed over to customers for financial leasing that are currently within limit and have been extended.
Detailed accounting: - Open a sub-account according to each financial leasing customer.
4. For Accounts 4313 and 4323 - Financial Leasing Overdue Debt Up to 180 Days With Recoverable Potential.
These accounts are used to record the portion of financial leasing assets handed over to customers for financial leasing that have been overdue for up to 180 days from the due date and still have recoverable potential.
Debit side records: - The value of financial leasing assets transferred to overdue debt accounts within 180 days.
Credit side records: - The value of financial leasing assets recovered when customers pay.
Debit balance: - Reflects the value of financial leasing assets that have been overdue for up to 180 days.
Detailed entries:
- Open a sub-account according to each customer whose financial leasing assets have been overdue for up to 180 days without repayment.
5. For Accounts 4314 and 4324 - Financial Leasing Overdue Debt From 181 Days to 360 Days With Recoverable Potential.
These accounts are used to record the portion of financial leasing assets handed over to customers for financial leasing that have been overdue for payment from 181 days to 360 days from the due date and still have recoverable potential.
The accounting entries for these accounts are similar to those for the accounts "Financial Leasing Overdue Debt Up to 180 Days With Recoverable Potential."
6. For Accounts 4315 and 4325 - Non-performing Financial Leasing Debt.
These accounts are used to record the portion of financial leasing assets handed over to customers for financial leasing that have been assessed as non-performing (difficult to recover or unable to be recovered).
Debit side records: - The value of financial leasing assets transferred to overdue debt accounts over 360 days.
- The value of financial leasing assets (within limit and overdue) assessed as unable to be recovered.
Credit side records: - The value of financial leasing assets recovered when customers pay.
- The value of financial lease assets that cannot be recovered shall be processed (transferred to the provision for bad debts).
Debit Balance: - Reflects the value of financial lease assets assessed as unrecoverable.
Detailed entries:
- Open sub-ledgers according to each financial leasing customer with difficult-to-collect financial lease assets.
7. For accounts 461 and 462 - Amounts paid on behalf of customers.
These accounts are used to record the amount of money (in Vietnamese dong or foreign currency) that the Bank pays on behalf of the customer when the guaranteed customer fails to fulfill their obligation at maturity.
The amount paid on behalf is considered an overdue debt and the customer must bear the penalty interest rate for overdue debt calculated based on the corresponding loan. For this payment, the guaranteeing bank must immediately urge the recovery of the debt; if the customer is unable to pay, the guaranteeing bank must proceed to auction the collateral asset in accordance with the provisions of the Law to recover the debt.
Debit side records: - The amount the guaranteeing bank has paid on behalf.
Credit side records: - The amount recovered from the guaranteed customer.
Debit Balance: - Reflects the amount the guaranteeing bank has paid on behalf of the customer but has not yet recovered.
Detailed entries:
- Open sub-ledgers according to each customer guaranteed by the bank (accompanied by a promissory note).
8. Account 8018 "Interest Income from Financial Leasing".
This account is used to record the interest income from financial leasing.
The content of accounting for this account is similar to the content of accounting for third-level accounts under second-level account: 801 "Income from Business Operations".
9. Account 941 "Financial Lease Assets Under Management at the Company".
This account is used to record financial lease assets under management at financial leasing companies. The value of the assets is tracked based on the initial purchase price.
Debit side records: - The value of financial lease assets received for management by the financial leasing company.
Credit side records: - The value of financial lease assets managed at the financial leasing company that have been processed.
Remaining balance: - Reflects the value of financial lease assets under management at the financial leasing company.
Detailed entries:
- Open sub-ledgers according to each financial lease asset.
In addition to the sub-ledger, the financial leasing company opens a detailed ledger for each leasing customer (if applicable).
10. Account 942 "Financial Lease Assets Currently Leased to Customers".
This account is used to record financial lease assets currently leased to customers. The value of the assets is tracked based on the initial purchase price.
Debit side records: - The value of financial lease assets leased to customers.
Credit side records: - The value of financial lease assets leased to customers that have been processed or returned to the company.
Remaining balance: - Reflects the value of financial lease assets currently leased to customers.
Detailed entries:
- Open sub-ledgers according to each financial lease asset.
In addition to the sub-ledger, the financial leasing company opens a detailed ledger for each leasing customer.
Article 3. This Decision shall take effect fifteen days from the date of signature.
Article 4. The Director of the Office of the Governor, the Head of the Accounting and Finance Department, Heads of Departments, Heads of Units under the State Bank of Vietnam, General Directors, Directors of Credit Organizations, Financial Leasing Companies, Branch Governors of the State Bank of Vietnam in provinces and cities are responsible for implementing this Decision.
Download
The original file of this document is being updated. Please read the full text and check back later.
Relations map
Click a document to open. A red border = a relation that changes validity.
Translations
This document is available in the following languages: