Circular No. 24/2010/TT-BTC guiding accounting for Agricultural, Forestry, Fishery, and Salt Production Cooperatives.

CIRCULAR

Accounting Guidelines for Agricultural, Forestry, Fishery Cooperatives, and Salt Production Cooperatives,

 

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

Pursuant to the Law on Cooperatives No. 18/2003/QH11 dated November 26, 2003;

Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 129/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law in business operations.

The Ministry of Finance issues accounting guidelines for Agricultural Cooperatives, Forestry Cooperatives, Fishery Cooperatives, and Salt Production Cooperatives as follows:

Part I

GENERAL PROVISIONS

Article 1. Scope and Applicability

These guidelines provide the accounting system applicable to Agricultural Cooperatives, Forestry Cooperatives, Fishery Cooperatives, and Salt Production Cooperatives (collectively referred to as Agricultural Cooperatives, abbreviated as "Cooperative" or "HTX").

Article 2. Basis for Application

The accounting system for Agricultural Cooperatives guided in this Circular is based on the Small and Medium Enterprise Accounting System issued together with Decision No. 48/2006/QĐ-BTC dated September 14, 2006 of the Minister of Finance (hereinafter referred to as Decision No. 48/2006/QĐ-BTC). For matters not covered in this Circular, HTXs shall follow the Accounting Law, Decree No. 129/2004/NĐ-CP dated May 31, 2004 detailing and guiding certain provisions of the Accounting Law for application in business operations, and the Small and Medium Enterprise Accounting System issued together with Decision No. 48/2006/QĐ-BTC.

Article 3. Financial Transparency

1. Contents of financial transparency of HTX include

- Asset status, liabilities, and owner's equity;

- Business operation results;

- Establishment and utilization of funds;

- Income of members and employees.

2. Responsibilities, forms, and deadlines for financial transparency

- The Cooperative Director is responsible for reporting the annual financial situation to the Management Board of the Cooperative. The Management Board of the Cooperative is responsible for disclosing financial information to the General Assembly of Members.

- Financial transparency is carried out through the following forms:

+ Written notification;

+ Public posting;

+ Other forms as prescribed by law.

- HTX must disclose financial information within 90 days from the end of the fiscal year.

Part II

SPECIFIC PROVISIONS

I. ACCOUNTING ACCOUNT SYSTEM

Article 4. Provisions on the Application of the Accounting Account System

HTXs implement the Accounting Account System according to the Small and Medium Enterprise Accounting System issued under Decision No. 48/2006/QĐ-BTC, with amendments and supplements as stipulated in this Circular as follows:

1. Renaming some accounting accounts and adding second-level accounts as follows:

1.1. Rename Account 131 - "Receivables from Customers" to "Receivables"

Account 131 has three second-level accounts:

+ Account 1311 - Receivables from Members;

+ Account 1312 - Receivables from customers outside the Cooperative;

+ Account 1318 - Other receivables.

1.2. Rename Account 311 - "Short-term Loans" to "Loans"

Account 311 has two second-level accounts:

+ Account 3111 - Short-term loans;

+ Account 3112 - Long-term loans.

1.3. Rename Accounts: 4111 - "Capital Investment by Owners" to "Contributed Capital of Members"; 4112 - "Surplus Capital" to "Accumulated Capital of the Cooperative"; 4118 - "Other Capital" to "Other Sources of Capital".

1.4. Rename Account 511 - "Sales Revenue and Service Income" to "Revenue"

Account 511 has three second-level accounts:

+ Account 5111 - Revenue from service provision to members;

+ Account 5112 - Revenue from production and business activities;

+ Account 5118 - Revenue from other activities.

1.5. Rename Account 515 - "Financial Activity Revenue" to "Internal Financial and Credit Activity Revenue"

Account 515 has two second-level accounts:

+ Account 5151 - Financial activity revenue;

+ Account 5152 - Internal credit activity revenue.

1.6. Rename Account 632 - "Cost of Goods Sold" to "Cost of Goods, Products, and Services"

Account 632 has two second-level accounts:

+ Account 6321 - Cost of goods, products, and services sold to members;

+ Account 6322 - Cost of goods, products, and services sold outside the Cooperative.

1.7. Rename Account 635 - "Financial Expenses" to "Financial and Internal Credit Activity Expenses"

Account 635 has two second-level accounts:

+ Account 6351 - Financial activity expenses;

+ Account 6352 - Internal credit activity expenses.

1.8. Rename Account 6421 - "Selling Expenses" to "Selling and Service Provision Expenses"; rename Account 6422 - "Administrative Expenses" to "Cooperative Management Expenses"

1.9. Rename Account 157 - "Goods Sent for Sale" to "Products and Goods Sent for Sale".

2. Consolidation of Accounting Accounts

Consolidate Accounts 155 - "Finished Products" and Account 156 - "Goods" into Account 155 - "Products and Goods"

Account 155 has two second-level accounts:

+ Account 1551 - Products;

+ Account 1552 - Goods.

3. Change the number and reclassify Account 431 - "Reward and Welfare Fund" to Account 353

Account 353 has two second-level accounts:

+ Account 3531 - Reward Fund;

+ Account 3532 - Welfare Fund.

4. Add the following accounts

4.1. First-level account (in the Balance Sheet)

a. Account 122 - Loans to Members

Account 122 has three second-level accounts:

+ Account 1221 - Loans to members within term;

+ Account 1222 - Overdue loans to members;

+ Account 1223 - Non-performing loans to members.

b. Account 136 - Internal Receivables;

Account 136 has two second-level accounts:

+ Account 1361 - Operating capital at subordinate units;

+ Account 1368 - Other internal receivables.

c. Account 322 - Deposits from Members;

d. Account 336 - Internal Payables;

e. Account 359 - Internal Credit Risk Reserve Fund.

4.2. Second-level accounts of Account 334

a. Account 3341 - Payables to Members;

b. Account 3348 - Payables to other employees.

4.3. Second-level accounts of Account 411

a. Account 4113 - Joint Venture Capital;

b. Account 4114 - State Investment Support Capital.

4.4. Second-level accounts of Account 418

a. Account 4181 - Development Fund;

b. Account 4182 - Reserve Fund;

c. Account 4188 - Other Funds.

4.5. Accounts outside the Balance Sheet

- Account 005 - Long-term Tools and Equipment in Use;

- Account 006 - Collateral for Loans;

- Account 008 - Unreceived Interest on Overdue Loans.

5. Not using the following accounting accounts

- Account 1113, 1123 - Gold, Silver, Precious Metals, and Gemstones;

- Account 138 - Other Receivables;

- Account 2112 - Leased Fixed Assets;

- Account 2142 - Depreciation of Leased Fixed Assets;

- Account 229 - Provision for Reduction in Value of Long-term Financial Investments;

- Account 217 - Investment Real Estate;

- Account 2147 - Depreciation of Investment Real Estate;

- Account 244 - Long-term Deposits and Guarantees;

- Account 335 - Payable Expenses;

- Account 315 - Long-term debt due;

- Account 3381 - Surplus Assets Pending Disposal.

- Account 3381 - Pending assets awaiting resolution;

- Account 3382 - Trade Union Expenses;

- Account 341 - Long-term Loans and Debts;

- Account 351 - Unemployment Assistance Reserve Fund;

- Account 352 - Provision for Liabilities;

- Account 419 - Treasury Shares;

- Account 611 - Purchases;

- Account 631 - Production Cost.

Article 5. List of Accounting Accounts (Annex No. 01 attached to the Circular)

In cases where the Cooperative needs to supplement Level 1 or Level 2 accounts, or modify Level 1 or Level 2 accounts regarding their names, codes, contents, and methods of accounting for specific economic transactions, such modifications must be approved in writing by the Ministry of Finance before implementation.

Cooperatives may open additional Level 2 and Level 3 accounts for those accounts that do not have prescribed Level 2 and Level 3 accounts in the Accounting Account System specified in this Circular, provided that these accounts serve the management requirements of the Cooperative without needing approval from the Ministry of Finance.

Article 6. Guidance on Certain Special Accounting Matters of Cooperatives

1. Account 122 - Loans to Members

This account is used to reflect the current status and changes in the amounts of loans made to members by the Cooperative with internal credit activities.

1.1. The accounting for this account must comply with the following principles

1.1.1. Account 122 - Loans to Members - can only be used by Cooperatives that conduct internal credit activities in accordance with the law. Loaning, recovering loans, interest rates, etc., must comply with the legal provisions governing internal credit activities of Cooperatives.

1.1.2. Only the principal amount of the loan should be recorded in Account 122 - Loans to Members, while interest income from loans should be recorded in Account 515 - Financial Activity Revenue, Internal Credit (Account 5152).

1.1.3. The Cooperative's accountant (the department responsible for internal credit activities) must maintain a ledger tracking each member's loan principal, including overdue, suspended, or forgiven debts, interest, and payments thereof.

1.2. Structure and Content Reflected in Account 122 - Loans to Members

Debit Side:

Amounts already lent to members.

Credit Side:

- Amounts of principal debt paid by members;

- Principal amounts of loans to members that the Management Board of the Cooperative has allowed to be forgiven.

Debit Balance:

Principal amounts of loans to members that are not yet due or are due but unpaid.

Account 122 - Loans to Members has three Level 2 accounts:

- Account 1221 - Loans to Members within Due Date: This account reflects the loans and recovery of loans within the due date;

- Account 1222 - Overdue Loans to Members: This account reflects loans to members that are overdue but not yet recovered;

- Account 1223 - Suspended Loans to Members: This account reflects loans to members who are unable to repay or face risks during the use of funds, which are suspended pending resolution.

1.3. Accounting Methods for Some Main Economic Transactions

1.3.1. When disbursing loans to members, based on the credit agreement or promissory note and loan disbursement documents, record:

Debit Account 122 - Loans to Members (1221)

Credit Accounts 111, 112.

For loans secured by assets, based on the valuation report of collateral or pledge, record:

Debit Account 006 - Collateral for Loans.

1.3.2. Interest income from loans received, based on interest receipt documents, record:

Debit Accounts 111, 112

Credit Account 515 - Financial Activity Revenue, Internal Credit (5152).

1.3.3. When recovering loans from members (cash or bank deposits), based on the amount received, record:

Debit Accounts 111, 112

Credit Account 122 - Loans to Members (Principal amount of loans to members).

Simultaneously, the accountant cancels the debt on the credit agreement by recording the repayment amount in the "Repayment Amount" column, reducing the balance. Once the credit agreement is fully repaid (balance equals zero), it is removed from the credit file and stored separately, then procedures are followed to release the collateral or pledge, record:

Credit Account 006 - Collateral for Loans.

1.3.4. When the due date arrives but the member has not repaid the loan and does not extend the due date, the loan is transferred to overdue status, record:

Debit Account 1222 - Overdue Loans to Members

Credit Account 1221 - Loans to Members within Due Date.

1.3.5. When transferring loans to members who are unable to repay or face risks due to external factors (natural disasters, floods, fires, epidemics) and are transferred to suspended status by the Management Board, record:

Debit Account 1223 - Suspended Loans to Members

Credit Account 1222 - Overdue Loans to Members.

Credit Account 1221 - Loans to Members within Due Date.

1.3.6. When the Management Board decides to forgive the debt and compensates with the Risk Reserve Fund, based on the documentation, record:

Debit Account 359 - Risk Reserve Fund

Credit Account 122 - Loans to Members.

2. Account 136 - Internal Receivables

This account is used to reflect the amounts owed and payment status of receivables from dependent enterprises (established by the Cooperative) for loans, advances, reimbursements, collections, or other obligations that units under the Cooperative owe to the Cooperative or that the Cooperative owes to dependent enterprises.

2.1. The accounting for this account must comply with the following principles:

2.1.1. The scope and content reflected in Account 136 pertain to internal settlement relationships between upper-level and lower-level units regarding receivables. Here, the upper-level unit is the Cooperative, and the lower-level unit is the enterprise funded by the Cooperative with its own accounting system.

2.1.2. The content of internal receivables reflected in Account 136 includes:

- Capital, funds, or expenses allocated to affiliated enterprises;

- Interest-free loans to affiliated enterprises;

- Amounts that affiliated enterprises must pay to the upper level according to regulations;

- Collections entrusted to affiliated enterprises;

- Amounts given to affiliated enterprises to fulfill internal assignment tasks and receive the value of internal assignments;

2.1.3. Account 136 must be detailed for each unit with settlement relations and track each internal receivable separately.

2.1.4. At the end of the accounting period, a reconciliation and verification of the transactions and balances of Account 136 "Internal Receivables" and Account 336 "Internal Payables" must be conducted according to each settlement content. Settlement offsets should be carried out for each item of each unit with relations, simultaneously recording offset entries on Account 136 "Internal Receivables" and Account 336 "Internal Payables" (in detail for each entity).

During reconciliation, if discrepancies are found, the cause must be identified and corrected promptly.

2.2. Structure and Content Reflected in Account 136 - Internal Receivables

Debit Side:

- The amount of operating capital already transferred to subordinate enterprises;

- The amount that the Cooperative must collect from, and the amounts subordinate enterprises must remit to the Cooperative;

- The amount that subordinate enterprises must collect from, and the amounts the Cooperative must transfer down to;

- The amount receivable for selling products, goods, and services to subordinate enterprises;

Credit Side:

- Recovery of capital and funds at subordinate enterprises;

- The amount collected from internal receivables of subordinate enterprises;

- Offsetting receivables with payables of the same entity;

Debit Balance:

The remaining amount still receivable from subordinate enterprises;

Account 136 - Internal Receivables has two sub-accounts:

- Sub-account 1361 - Operating Capital at Affiliated Units: This account is only opened by the Cooperative to reflect the current operating capital at affiliated enterprises directly transferred by the Cooperative or formed through other methods;

- Sub-account 1368 - Other Internal Receivables: Reflects all other receivables of the Cooperative from affiliated enterprises or amounts enterprises must collect from the Cooperative outside of capital;

2.3. Accounting Methods for Some Main Economic Transactions

2.3.1. When the Cooperative transfers operating capital to affiliated enterprises, record:

Debit Account 136 - Internal Receivables (1361)

Credit Accounts 111, 112...

2.3.2. In the case of transferring operating capital to affiliated enterprises using fixed assets, record:

Debit Account 136 - Internal Receivables (1361)

Debit Account 214 - Depreciation of Fixed Assets (Depreciation value of TSCĐ)

Credit Account 211 - Tangible Fixed Assets (Original cost).

2.3.3. Based on the operating capital submitted by affiliated enterprises due to increased capital from purchasing TSCĐ using construction investment funds or development investment funds, record:

Debit Account 136 - Internal Receivables (1361)

Credit account 411 - Business capital.

2.3.4. At the end of the period, if the Cooperative supplements capital from the profit of the affiliated enterprise's business operations during the period, record:

Debit Account 136 - Internal Receivables (1361)

Credit account 411 - Business capital.

2.3.5. In the case where the affiliated enterprise must return operating capital to the Cooperative, when receiving payment from the affiliated unit, record:

Debit Accounts 111, 112...

Credit Account 136 - Internal Receivables (1361).

2.3.6. Receivable amounts for interest from production and business activities, and other activities at affiliated enterprises, record:

Debit Accounts 136 - Internal Receivables (1368)

Credit account 421 - Undistributed profits.

2.3.7. Upon receiving payments from affiliated enterprises for submitting business interest, record:

Debit Accounts 111, 112...

Credit Account 136 - Internal Receivables (1368).

2.3.8. When paying on behalf of, or settling debts for affiliated enterprises, record:

Debit Account 136 - Internal Receivables (1368)

Credit Accounts 111, 112...

2.3.9. Upon actually receiving payments from affiliated enterprises for transferring back payments made on their behalf, record:

Debit Accounts 111, 112...

Credit Account 136 - Internal Receivables (1368).

2.3.10. Offset internal receivables and internal payables outside of capital of the same entity:

DEBIT ACCOUNT 336 - INTERNAL PAYABLE

Credit Account 136 - Internal Receivables (1368).

3. Account 154 - Work-in-Progress Production and Business Costs

This account is used to aggregate production, business, and service costs of the Cooperative and serves for calculating the actual cost of completed products, labor services, and services.

3.1. Recording this account must comply with the following regulations

3.1.1. Production, business, and service costs recorded on Account 154 must be detailed according to industry, product, or each service organized by the Cooperative.

3.1.2. Do not reflect the value of materials, products, goods sold and cooperative management costs in this account.

3.1.3. The actual cost of agricultural products and services is determined at the end of the crop season or year.

3.1.4. Contents of production costs for some industries and services:

3.1.4.1. Water irrigation services include the following main costs:

- Water fees payable to water companies;

- Electricity and fuel costs for running pumps;

- Depreciation of pump stations and water channel systems invested by the Cooperative;

- Costs for dredging and repairing water channel systems;

- Regular maintenance and major repair costs for pump stations and pumps;

- Labor costs for members operating machines and coordinating water distribution;

- Direct costs such as loan interest...

3.1.4.2. Pest control services:

- Types of pesticides used for pest control in crops;

- Fuel costs for running pesticide spraying machines;

- Depreciation of pesticide spraying machines;

- Costs for hand tools, protective clothing, and safety equipment;

- Repair costs for pesticide spraying machines and tanks;

- Labor costs and hazardous duty allowances;

- Other direct costs such as loan interest.

3.1.4.3. Services providing agricultural supplies and product marketing for households include the following main costs:

- Transportation, loading, unloading, and storage costs of goods from purchase locations to the Cooperative warehouse and related consumption costs;

- Depreciation of warehouses and transportation vehicles of the service department;

- Interest on loans to be paid;

- Labor costs for staff and members directly involved in agricultural supply services and product marketing;

- Other direct costs.

Do not reflect the cost of agricultural supplies and marketed products' purchase price in service costs.

3.1.4.4. Activities accepting goods for processing, such as garment making, carpet weaving, embroidery... have the following production costs:

- Costs related to collecting and delivering goods after processing, such as transportation, loading, unloading, and storage costs;

- Materials provided by the Cooperative during the processing;

- Labor costs for members directly engaged in processing;

- Costs for electricity and fuel used during processing;

- Depreciation of machinery, equipment, and workshops;

- Repair costs for machinery and equipment;

- Other direct costs (such as loan interest...).

Do not reflect the value of raw materials provided by the client in processing costs.

3.1.4.5. Agricultural and forestry product processing activities: Production costs include the following items:

- The value of primary raw materials used in processing;

- Secondary raw materials used during processing;

- Costs for electricity and fuel (coal, wood, gasoline) used to run machines and process products;

- Repair costs for machinery;

- Depreciation of workshops and machinery used in production processing;

- Direct labor costs;

- Other direct costs.

3.1.4.6. Agricultural and forestry production activities: Production costs include:

- Seeds;

- Chemicals for caring for plant and animal seeds;

- Pest control costs for crops;

- Land preparation costs;

- Irrigation costs;

- Labor costs;

- Depreciation of fixed assets and repair costs for specialized assets used in agricultural and forestry production;

- Other direct costs.

3.1.4.7. Aquaculture activities, costs include the following items:

- Seedlings;

- Disease prevention drugs;

- Small tools;

- Repair costs for assets;

- Other direct costs (such as interest on loans...).

3.2. Structure and content reflected in Account 154 - Work-in-progress production and business expenses

Debit Side:

- Direct costs incurred from production, business, and services.

Debit side:

- Actual production cost of finished products stored in inventory or transferred for sale;

- Actual cost of completed service volume provided to member households and customers.

Debit Balance:

Work-in-progress production and business costs at the end of the period.

3.3 Accounting methods for some main economic activities

3.3.1. Accounting for irrigation water supply services

3.3.1.1. Costs for repairing and dredging irrigation canals (routine maintenance), record:

Debit Account 133 - Deductible VAT (if applicable)

- When exporting raw materials and goods for processing, it is recorded as:

 Credit Account 334 - Amounts Payable to Members and Employees within the Cooperative (Member labor fees and external hired labor fees)

Credit Account 152 - Raw Materials and Consumables

Credit Account 153 - Tools and Equipment

Credit Account 331 - Amounts Payable to Suppliers (Outsourced repair and dredging costs).

3.3.1.2. Issuing spare parts for pump repairs and replacements, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 153 - Tools and Equipment.

3.3.1.3. When purchasing fuel for pumps, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Accounts 111, 112, 141, 331.

3.3.1.4. Electricity and water management fees payable to branch offices and companies, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 331 - Payable to Supplier

3.3.1.5. When determining labor fees payable to members operating machines and managing water distribution, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 334 - Amounts Payable to Members and Employees within the Cooperative.

3.3.1.6. Periodically, calculate depreciation of pumps, pumping stations, and irrigation canals, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 214 - Depreciation of Fixed Assets.

3.3.1.7. Gradually allocate prepaid costs to production expenses for the year (Major repairs of irrigation canals, pumps, and pumping stations), record:

Debit Account 154 - Work-in-progress production and business expenses

Credit Account 142 - Prepaid Short-term Expenses.

3.3.1.8. At the end of the period, determine the completed irrigation services to establish business results for the period, record:

Debit Account 632 - Cost of Goods Sold

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

3.3.2. Accounting for pest control services for crops and livestock

3.3.2.1. Regarding disease prevention drugs for crops and livestock:

- If the cooperative purchases and stores them in warehouses, when they are issued for use, record:

Debit Account 154 - Work-in-progress production and business expenses (Details of crop and livestock protection services)

Credit Account 152 - Raw Materials and Consumables.

If the cooperative purchases and uses them immediately without storing them in warehouses, record:

Debit Account 154 - Work-in-progress production and business expenses

Debit Account 133 - Deductible VAT (if applicable)

Credit Account 111 - Cash (Payment in cash)

Credit Account 112 - Bank Deposits (Payment by bank transfer)

3.3.2.2. Issuing tools and equipment for use (Pesticide sprayers...)

- When issuing from the warehouse, record:

Debit Account 242 - Long-term Prepaid Expenses

Credit Account 153 - Tools and Equipment.

Simultaneously record the debit side of Account 005 - Long-term Tools and Equipment in Use.

- Determine the allocation of tool and equipment value to expenses, record:

Debit Account 154 - Work-in-progress production and business expenses (Details of crop and livestock protection services)

Credit Account 242 - Long-term Prepaid Expenses.

3.3.2.3. For cooperatives using gasoline-powered pesticide sprayers

- Fuel costs for running the sprayer, record:

Debit Account 154 - Work-in-progress production and business expenses (Details of crop and livestock protection services)

Credit Account 111 - Cash (Purchase of gasoline in cash for immediate use)

Credit Account 141 - Advance Payments (Advance payment for gasoline purchase)

Credit Account 152 - Raw Materials and Consumables (Issue gasoline from warehouse for use).

- Periodically, calculate depreciation of the pesticide sprayer, record:

Debit Account 154 - Work-in-progress production and business expenses (Details of crop and livestock protection services)

Credit Account 214 - Depreciation of Fixed Assets.

3.3.2.4. Determine the amount of labor fees payable to members, record:

Debit Account 154 - Work-in-progress production and business expenses (Details of crop and livestock protection services)

Credit Account 334 - Amounts Payable to Members and Employees within the Cooperative.

3.3.2.5. At the end of the period, transfer completed pest control service costs to the Cost of Goods Sold account to determine business results, record:

Debit Account 632 - Cost of Goods Sold.

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

3.3.3. Accounting for agricultural supplies provision services

3.3.3.1. The cooperative purchases agricultural supplies and stores them in warehouses:

- When the purchased supplies have arrived and been stored in the warehouse, record:

Debit Account 155 - Products and Inventory (Goods Stored) (Invoice Price) (1552)

Credit Account 111 - Cash (Paid in cash)

Credit Account 112 - Bank Deposits (Payment by bank transfer)

Credit Account 331 - Amounts Payable to Suppliers (Not yet paid).

- When issuing supplies to households, record:

Debit Account 632 - Cost of Goods Sold.

Credit Account 155 - Products and Inventory (1552) (Issue Price).

Simultaneously, based on invoices, reflect revenue, record:

Debit Account 111 - Cash (Immediate Sale Receipt)

Debit Account 131 - Receivables (1311 - Member Receivables)

Credit Account 511 - Revenue (Sales Price) (5111).

- Transportation, loading and unloading, and sales expenses:

Debit Account 642 - Business Management Expenses (6421)

Credit Account 111 - Cash (Transportation Costs)

Credit Account 141 - Advance Payments (Advance Payment for Transportation)

Credit Account 331 - Amounts Payable to Suppliers (Unpaid Transportation Costs).

3.3.3.2. The cooperative purchases supplies and delivers them directly to teams and households (Teams, Groups):

- When the supplies arrive at the cooperative and are immediately delivered to teams, groups, and households according to the agreed quantities, record:

Debit Account 632 - Cost of Goods Sold (Details of Supply Services) (Purchase Price on Invoice)

Credit Account 111 - Cash (Paid in Cash)

Credit Account 112 - Bank Deposits (Payment by bank transfer)

Credit Account 331 - Amounts Payable to Suppliers (Not Yet Paid).

Simultaneously, reflect revenue from supplying agricultural supplies to households, record:

Debit Account 111 - Cash (Immediate Sale Receipt)

Debit Account 131 - Receivables (1311 - Member Receivables)

Credit Account 511 - Revenue (Sales Price) (5111).

- Transportation, loading and unloading, and sales expenses (if any), record:

Debit Account 642 - Business Management Expenses (6421)

Credit Account 111 - Cash (Transportation Costs)

Credit Account 141 - Advance Payments (Advance Payment for Transportation)

Credit Account 331 - Amounts Payable to Suppliers (Unpaid Transportation Costs).

3.3.4. Accounting for seed production and supply services to households

3.3.4.1. In cases where the cooperative purchases new seeds from seed companies to sell to households:

- When purchasing seeds and storing them in the warehouse, record:

Debit Account 155 - Products and Inventory (1552)

Credit Account 111 - Cash (Paid in cash)

Credit Account 112 - Bank Deposits (Payment by bank transfer)

Credit Account 331 - Amounts Payable to Suppliers (Unpaid Balance).

- When issuing seeds from the warehouse to sell to households, record:

Debit Account 632 - Cost of Goods Sold (Details of Seed Services)

Credit Account 155 - Products and Inventory (1552).

- In cases where seeds are purchased and immediately delivered to households, record:

Debit Account 632 - Cost of Goods Sold (Details of Seed Services)

Credit Account 111 - Cash (Paid in cash)

Credit Account 112 - Bank Deposits (Payment by bank transfer)

Credit Account 331 - Amounts Payable to Suppliers (Unpaid Balance).

Simultaneously record revenue from selling seeds to households, record:

Debit Account 111 - Cash (Immediate Sale Receipt)

Debit Account 131 - Receivables (1311 - Member Receivables)

Credit Account 511 - Revenue (Sales Price) (5111).

- Transportation and other related costs for receiving seeds, record:

Debit Account 642 - Business Management Expenses (6421)

Credit Accounts 111, 112, 141, 331...

- Costs incurred during seed storage, sale, and distribution, record:

Debit Account 642 - Business Management Expenses (6421)

Credit Account 334 - Amounts Payable to Members and Employees within the Cooperative (3341)

Credit Account 214 - Depreciation of Fixed Assets

Credit Account 153 - Tools and Equipment.

3.3.4.2. In cases where the cooperative receives new seeds and distributes them to experienced households for seed production. Depending on the agreement between the cooperative and the households producing seeds, the cooperative may invest additional costs for these households and purchase all the seeds produced by them for widespread distribution.

- When the cooperative receives seeds purchased externally and distributes them to member households for seed multiplication, when distributing seeds, record:

Debit Account 154 - Production and Business Costs in Progress (Details of Service for Providing Seeds)

Credit Accounts 111, 141, 331.

The cooperative must record the expenses it incurs when paying households for processing seeds as follows:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 331 - Payable to suppliers

Credit Account 111- Cash.

- When the households complete the seed processing and return the seeds to the cooperative, record:

Debit Account 155 - Products and Goods (1551)

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

- When the cooperative sells seeds to member households:

+ To reflect the cost of the seeds sold, record:

Debit Account 632 - Cost of Goods Sold, Products, and Services (6321)

Credit Account 155 - Products and Goods (1551).

+ To reflect revenue from selling seeds, record:

Debit Account 111 - Cash (Immediate Sale Receipt)

Debit Account 131 - Receivables (1311 - Member Receivables)

Credit Account 511 - Revenue (Details of Service for Providing Seeds) (5111).

- In cases where the cooperative exchanges seeds with member households:

+ When exchanging seeds out for other seeds, record:

Debit Account 632 - Cost of Goods Sold.

Credit Account 155 - Products and Goods.

+ To reflect revenue from the seeds exchanged at a reasonable value, record:

Debit Account 131 - Accounts Receivable

Credit Account 511 - Revenue.

+ When receiving seeds from the exchange, the accountant records the value of the received seeds at a reasonable value, record:

Debit Accounts 152, 155

Credit Account 131 - Accounts Receivable.

+ In cases where the cooperative needs to pay additional money to member households, record:

Debit Account 131 - Accounts Receivable

Credit Account 111 - Cash.

+ In cases where member households need to pay additional money to the cooperative, record:

Debit Account 111

Credit Account 131 - Accounts Receivable.

3.3.5. Accounting for Agricultural Extension, Forestry Extension, and Fisheries Extension Activities

3.3.5.1. Recording the collection of contributions from member households (paid according to criteria set by the cooperative) to form the agricultural extension, forestry extension, and fisheries extension fund of the cooperative, record:

Debit Account 111 - Cash (If collected in cash)

Debit Account 155 - Products and Goods (If collected in products)

Credit Account 338 - Other Payables (Details of the Agricultural Extension, Forestry Extension, and Fisheries Extension Fund).

2.3.5.2. When disbursing allowances to technical guidance reporters, record:

Debit Account 338 - Other Payables (Details of the Agricultural Extension, Forestry Extension Fund)

Debit Account 333 - Taxes and Government Payments (3335 - Withheld Income Tax Amount)

Credit Account 111 - Cash.

3.3.6. Accounting for Agricultural Product Production or Processing and Industry Production

3.3.6.1. Recording the issuance of raw materials and materials for production and industry or agricultural product processing outsourced to external parties, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 152 - Raw Materials and Consumables.

3.3.6.2. Prepaid expenses allocated to industry costs, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 142 - Prepaid Short-term Expenses.

3.3.6.3. Wages payable to member households or outsourced labor, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 334 - Amounts Payable to Members and Employees within the Cooperative.

3.3.6.4. Depreciation accruals for fixed assets directly used for industry production or agricultural product processing, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 214 - Depreciation of Fixed Assets.

3.3.6.5. Outsourced service costs (electricity, loading and unloading fees, transportation costs, rental fees for fixed assets, etc.), other direct costs incurred in industry production or agricultural product processing, record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 111 - Cash

Credit Account 112 - Bank Deposits

Credit Account 331 - Payables to Suppliers (Outsourced Services).

3.3.6.6. Actual cost of products entering inventory, record:

Debit Account 155 - Products and Goods

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

3.3.6.7. In cases where finished products are not entered into inventory but transferred directly for consumption, record:

Debit Account 632 - Cost of Goods Sold.

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

3.3.7. Accounting for Asset Leasing or Full Contracting

- Some cooperatives have facilities that are not fully utilized and can be leased to internal and external individuals or organizations.

- There are cooperatives that act as legal entities to enter into contracts while subcontracting full production and business operations to a group or team. At the end of the season or year, these groups or teams pay a certain amount to the cooperative as stipulated (which may include tax payments, depreciation payments, cooperative fund contributions, etc.).

For the above situations, the cooperative accounts for the costs and revenues as follows:

3.3.7.1. Expenses related to this activity (mainly depreciation of fixed assets), record:

- When exporting raw materials and goods for processing, it is recorded as:

Credit Account 214 - Depreciation of Fixed Assets

Credit Various Accounts (Other Related Expenses)

3.3.7.2. Revenues from asset leasing and full contracting payments made by contractors, record:

Debit Account 152 - Materials and Tools

Debit Account 131 - Accounts Receivable

Credit Account 511 - Revenue.

3.3.7.3. Other journal entries similar to those above.

3.3.8. Accounting for Leased Fixed Assets (Operating Lease)

Operating leased fixed assets are assets leased for use, which will be returned to the lessor at the end of the lease term, including fixed assets leased from individuals, units, or local government bodies (including fixed assets previously managed by the local government on behalf of old cooperatives).

- The value of leased assets recorded according to the lease agreement is accounted for under Account 001 "Leased Assets" (an account outside the Balance Sheet).

- Leased assets are used without accruing depreciation.

- Lease payments made by the cooperative are recorded as production and business costs or management costs (including lease payments or depreciation payments due to the local government for fixed assets previously managed by the local government on behalf of old cooperatives).

Debit Account 154 - Production and Business Costs in Progress (If used for production and business activities)

Debit Account 642 - Management Costs (If used for cooperative management)

Credit accounts 111, 112, 331.

4. Account 322 - Member Deposits

This account is used to reflect the deposits made by members into the cooperative to earn interest through internal credit mechanisms.

The accountant must maintain detailed records for each member's deposit according to indicators such as the deposit date, amount, term, interest rate, etc.

4.1. Structure and Content Reflected in Account 322 - Member Deposits.

Debit Side:

Amount withdrawn by members.

Credit Side:

Amount deposited by members.

Debit balance:

Current balance of members' deposits at the cooperative.

4.2. Accounting Methods for Main Economic Transactions

4.2.1. When receiving member deposits, based on relevant documents, record:

Debit Accounts 111, 112

Credit Account 322 - Member Deposits.

4.2.2. When it is time to pay interest, pay interest to members or if members request to capitalize interest into the principal deposit, record:

Debit Account 635 - Financial Activity Costs, Internal Credit Costs (6352)

Credit Accounts 111, 112... (Pay Interest to Members)

Credit Account 322 - Member Deposits (Capitalize Interest into Principal).

4.2.3. When members withdraw their deposits upon maturity in cash or bank deposits, based on withdrawal receipts or requests to transfer funds to bank deposit accounts, record:

Debit Account 322 - Member Deposits

Credit Accounts 111, 112,...

5. Account 336 - Internal Payables

This account is used to reflect the settlement of payables between the cooperative and its affiliated enterprises (established by the cooperative) regarding payables, payments, or amounts paid or collected on behalf of affiliated enterprises.

5.1. Accounting for this account must comply with the following principles

5.1.1. Account 336 only reflects economic transactions related to internal settlements between the cooperative and its affiliated enterprises excluding capital relations.

5.1.2. The contents reflected in Account 336 "Internal Payables" include:

- Payables owed by affiliated enterprises to the cooperative;

- The amounts collected on behalf of enterprises under the cooperative.

5.1.3. Account 336 "Amounts Payable Internally" shall be detailed for each unit with settlement relations, where it shall be monitored according to each amount payable.

5.1.4. At the end of the period, the accountant shall conduct checks and reconciliations of Accounts 136 and 336 between units according to each internal settlement content to prepare reconciliation statements for each unit as the basis for offsetting entries on these two accounts. When reconciling, if there are discrepancies, the causes must be identified and timely adjustments made.

5.2. Structure and Content Reflected in Account 336 - Amounts Payable Internally

Debit Side:

- The amounts already paid to subordinate enterprises regarding the expenses paid on behalf of, or the amounts collected on behalf of subordinate enterprises;

- Offsetting receivables against payables of the same unit with settlement relations.

Credit Side:

The amounts the cooperative must pay to subordinate enterprises regarding the expenses paid on behalf of, or the amounts collected on behalf of subordinate enterprises.

Debit balance:

The remaining amounts to be paid to subordinate enterprises.

5.3. Accounting Methods for Some Main Economic Transactions

5.3.1. In cases where the cooperative must cover losses from business operations for subordinate enterprises, record:

Debit account 421 - Undistributed profits

Credit Account 336 - Internal Payable.

5.3.2. The cooperative determines the amounts payable to subordinate enterprises regarding the expenses paid on behalf of, or the amounts collected on behalf of subordinate enterprises, record:

Debit Account 152, 153, 211...

Debit Account 331 - Amounts Payable to Sellers

Debit Account 642 - Business Management Expenses

Credit Account 336 - Internal Payable.

5.3.3. When the cooperative pays money to subordinate enterprises regarding the expenses paid on behalf of, or the amounts collected on behalf of, record:

DEBIT ACCOUNT 336 - INTERNAL PAYABLE

Credit Accounts 111, 112...

5.3.4. Offsetting receivables against payables between the cooperative and subordinate enterprises, record:

DEBIT ACCOUNT 336 - INTERNAL PAYABLE

Credit Account No. 136 - Internal Receivables.

6. Account 359 - Internal Credit Risk Reserve Fund

This account is used to reflect the current balance and changes in the internal credit risk reserve fund of cooperatives engaged in internal credit activities.

The risk reserve fund is established to compensate for losses and damages due to objective reasons during the process of lending to members.

The risk reserve is included in the annual cost of internal credit activities at the ratio specified in the current internal credit regulations of the cooperative.

6.1. Accounting for this account must comply with the following principles

6.1.1. The use of the internal credit risk reserve fund must follow the purposes specified in the internal credit regulations of the cooperative. In cases where debts to members are written off exceeding the amount of the reserve previously established, the difference is covered by the reserve and recorded as part of the cost of internal credit activities.

6.1.2. At year-end, before closing the accounting books and preparing financial statements, the cooperative conducts an inventory and classification of loans, assesses the ability to collect debts and potential losses to establish a reserve for loans. If the reserve required this year exceeds the previous year's reserve not yet used, the difference is supplemented and recorded as part of the cost of internal credit activities. If the reserve required this year is less than the previous year's reserve not yet used, the difference is reversed and recorded as a reduction in the cost of internal credit activities.

6.1.3. Cooperative accountants must maintain detailed records to clearly track each establishment and use of the internal credit risk reserve fund.

6.2. Structure and Content Reflected in Account 359 - Internal Credit Risk Reserve Fund

Debit Side:

- Reduction in the internal credit risk reserve fund due to use to offset risks;

- Reversing the risk reserve for member loans that is smaller than the previous year's reserve not yet used.

Credit Side:

- Reflecting the amount of the internal credit risk reserve fund established and included in the cost of internal credit activities at the specified ratio.

Debit balance:

The current balance of the internal credit risk reserve fund at year-end.

6.3. Accounting Methods for Some Main Economic Transactions

6.3.1. When the cooperative establishes the internal credit risk reserve fund as prescribed, based on the amount established, record:

Debit Account 635 - Financial Activity Costs, Internal Credit Costs (6352)

Credit Account 359 - Internal Credit Risk Reserve Fund.

6.3.2. When the cooperative uses the internal credit risk reserve fund (To offset losses from loans lost due to objective reasons such as natural disasters, epidemics affecting crops and livestock; borrowers unable to repay due to illness, death, disappearance... and other objective reasons) according to the decision of the Management Board of the cooperative, record:

Debit Account 359 - Internal Credit Risk Reserve Fund

Credit Account 122 - Loans to Members.

6.3.3. When establishing a reserve, if the amount required is less than the previous year's reserve not yet used, the difference must be reversed, record:

Debit Account 359 - Risk Reserve Fund

Credit Account 635 - Financial and Internal Credit Activities Costs (6352).

7. Account 411 - Operating Capital

This account is used to reflect the current operating capital and changes in operating capital of the cooperative.

The cooperative's operating capital is formed from the capital contributions of members when joining the cooperative and additional contributions; from profits after tax decided by the General Assembly of Members to supplement the cooperative's operating capital; from joint venture capital contributions from organizations and individuals; from state investment support in cash or in kind; from other sources such as non-repayable grants from the state, gifts, donations from domestic and foreign organizations and individuals.

7.1. Accounting for this account must comply with the following principles

7.1.1. Cooperatives record in Account 411 "Operating Capital" the actual capital received in cash or assets upon establishment, or raised to expand the scale of operations. Cooperatives do not record in this account registered capital contributions that have not been made.

7.1.2. Cooperatives must organize detailed accounting for operating capital according to each source of formation. Among which, detailed tracking for each member contributing capital is required.

7.1.3. Only reduce operating capital when the cooperative returns capital contributions to members when ceasing membership status, or returns capital contributions to joint venture partners.

7.1.4. In the case of receiving capital contributions from organizations and individuals contributing capital with assets, the Cooperative must reflect an increase in business capital at the re-evaluated price of the asset accepted by all parties contributing capital. In the case of receiving capital contributions in foreign currency, it can be converted to Vietnamese Dong based on the actual exchange rate or the average inter-bank market exchange rate published by the State Bank of Vietnam at the time of occurrence. During the operation period, the Cooperative shall not re-evaluate the balance of the "Business Capital" account denominated in foreign currency.

7.2. Structure and content reflected in Account 411 - Business Capital

Debit Side:

Business capital decreases due to:

- Repaying capital contributions to members, joint venture and associated parties;

- Dissolution and liquidation of the Cooperative;

- Covering business losses according to the decision of the Members' Congress.

Credit Side:

Business capital of the Cooperative increases due to:

- Receiving capital contributions from members, joint venture and associated parties (Initial capital contribution and additional capital contribution);

- Supplementing capital from business profits;

- Investment support funds from the State in the form of money or physical assets for transportation, irrigation, and other infrastructure;

- Subsidies: The value of non-repayable subsidies from the State, gifts, donations from domestic and foreign organizations and individuals that increase the Cooperative's business capital.

Debit balance:

Current business capital of the Cooperative.

Account 411 has 5 second-level accounts:

+ Account 4111 - Member Capital Contributions: Reflects the actual amount of capital contributed, the actual amount withdrawn when ceasing member status, and the current remaining capital contributions of members;

+ Account 4112 - Accumulated Capital of the Cooperative: Reflects the situation of increasing and decreasing accumulated capital of the Cooperative from profits after tax decided by the Members' Congress to supplement the Cooperative's business capital;

+ Account 4113 - Joint Venture Capital Contributions: Reflects the situation of receiving, returning, and the current remaining joint venture capital contributions of the Cooperative;

+ Account 4114 - State Investment Support Capital: Reflects the investment support capital from the State for transportation, irrigation, and other infrastructure provided to the Cooperative;

+ Account 4118 - Other Capital: Reflects the business capital formed from receiving gifts, donations from domestic and foreign organizations and individuals.

7.3. Accounting methods for some main economic transactions

7.3.1. When actually receiving capital contributions from members, joint venture parties, based on the capital contribution contract, receipt vouchers, and related documents, record:

Debit Accounts 111, 112, 152, 153,...

Debit Account 211 - Fixed Assets (2111, 2113)

Credit Account 411 - Owner's Equity (4111, 4113).

7.3.2. Based on the resolution of the Members' Congress regarding the decision to supplement the Cooperative's business capital from post-tax profits, record:

Debit account 421 - Undistributed profits

Credit Account 4112 - Accumulated Capital.

7.3.3. When receiving state support funds in the form of money or physical assets for transportation, irrigation, and other infrastructure, record:

Debit Accounts 111, 112, 152, 155,...

Debit Account 211 - Fixed Assets (2111, 2113)

Credit Account 4114 - State Investment Support Capital.

7.3.4. When receiving gifts, donations, sponsorships from organizations and individuals; non-repayable subsidies from the State, record:

Debit Accounts 111, 112, 152,...

Debit Account 211 - Fixed Assets (2111, 2113)

Credit Account 4118 - Other Capital.

7.3.5. When repaying capital contributions to members, joint venture parties, record:

Debit Account 411 - Business Capital (4111, 4113)

Credit Accounts 111, 112,...

8. Account 418 - Funds Belonging to Owner's Equity

This account is used to reflect the current amount and changes in funds belonging to owner's equity of the Cooperative.

8.1. Recording this account must comply with the following principles

8.1.1. Funds belonging to owner's equity of the Cooperative include: Development Fund, Reserve Fund, and other funds.

8.1.2. Funds belonging to owner's equity of the Cooperative are established from post-tax profits and are used for expanding production and business operations, deepening investments, or supplementing the Cooperative's business capital...

8.1.3. The establishment and use of funds belonging to owner's equity must comply with the current financial policy for Cooperatives. The annual ratio of fund establishment is decided by the Members' Congress but must not be lower than the provisions set out in Article 17 of Decree 177/2004/NĐ-CP dated October 12, 2004 of the Government.

8.2. Structure and content reflected in Account 418 - Funds Belonging to Owner's Equity

Debit Side:

Situation of expenditure and use of funds belonging to owner's equity.

Credit Side:

Establishment of funds belonging to owner's equity.

Debit balance:

Current funds belonging to owner's equity at the end of the period.

Account 418 - Funds Belonging to Owner's Equity has 3 second-level accounts:

- Account 4181 - Production and Business Development Fund: Reflects the current amount and changes in the production development fund of the Cooperative. The production development fund is used for expanding production and business operations, updating technology, agricultural extension work, and training and developing cooperative staff (To offset the part not supported by the State according to regulations).

- Account 4182 - Reserve Fund: Reflects the current amount and changes in the reserve fund. The reserve fund is used to offset losses caused by unforeseen events and to cover business losses.

- Account 4188 - Other Funds: Reflects the current amount and changes in other funds formed from post-tax profits that are neither production and business development funds nor reserve funds.

8.3. Accounting methods for some main economic transactions

8.3.1. Based on the resolution of the Members' Congress regarding the establishment of funds belonging to owner's equity, record:

Debit account 421 - Undistributed profits

Credit Account 418 - Funds Belonging to Owner's Equity (4181, 4182, 4188).

8.3.2. When using the production and business development fund to purchase fixed assets, complete construction projects handed over for production and business operations, record:

Debit Account 211 - Fixed Assets

Credit Account 241 - Construction in Progress (In the case of construction projects)

Credit Accounts 111, 112... (In the case of purchasing fixed assets).

At the same time, record an increase in business capital, a decrease in the production and business development fund:

Debit Account 418 - Funds Belonging to Owner's Equity (4181)

Credit account 411 - Business capital.

8.3.3. When using the reserve fund to offset losses and cover business losses, record:

Debit Account 418 - Funds Belonging to Owner's Equity (4182)

Credit Accounts 111, 112...

Credit Account 421 - Post-Tax Profits.

9. Account 511 - Revenue

This account is used to reflect revenue from service activities for members and production and business operations of the Cooperative during an accounting period. The revenue of the Cooperative includes the total value of products, goods, and services that the Cooperative has sold or provided to members and customers who have paid or accepted payment (not yet received payment), including:

- Revenue from service activities for members: These are revenues from supporting services for members' production and business activities, such as irrigation services, clean water services, provision of materials, seeds, fertilizers, pesticides, land preparation, electricity for daily life, technology transfer, and other cultural and social services for members, such as elderly care services, funeral services, environmental sanitation services.

- Revenue from production and business activities: This is the total value of products, goods, and services that the Cooperative has sold or provided to customers who have paid or accepted payment (not yet received payment).

- Revenue from other activities: These are revenues from state price support (such as subsidies for irrigation fees, agricultural promotion, electricity subsidies, etc.), rental income...

9.1. Recording this account must comply with the following principles

- The revenue of the Cooperative includes the total value of products, goods, and services that the Cooperative has sold or provided to members and non-member customers who have paid or accepted payment. Revenue is recorded at the selling price of the products, goods, and services.

- All revenues of the Cooperative are calculated in monetary terms. In cases where revenue is received in kind or through barter transactions, it must be converted to monetary value at the time of payment or acceptance of payment. All revenue generated during the period must be recorded in the accounting books with invoices and supporting documents, timely reflecting revenue subject to corporate income tax and revenue not subject to corporate income tax.

- For products, goods, and services subject to VAT under the deduction method, revenue from sales and provision of services is the selling price excluding VAT.

- For products, goods, and services not subject to VAT or subject to VAT under the direct calculation method, revenue from sales and provision of services is the total payment amount.

- For products, goods, and services subject to special consumption tax or export tax, revenue from sales and provision of services is the total payment amount (including special consumption tax or export tax).

- Cooperatives receiving processing of materials and goods only record in revenue from sales and provision of services the actual processing fee received, excluding the value of the materials and goods received for processing.

- For goods sold on consignment or agency basis with commission, the revenue from sales and provision of services records the commission earned by the Cooperative.

- Products and goods determined as sold but returned due to quality issues, technical specifications, etc., or for which discounts were given due to bulk purchases, these deductions from revenue are tracked separately in Account 521 "Revenue Deductions" and transferred to Account 511 at the end of the period to calculate net revenue.

- If during the period, the Cooperative has issued sales invoices and collected payment but has not yet delivered the goods, ownership and management rights of the goods still belong to the Cooperative, then the collected amount should not be recorded as revenue but as advance payments from customers.

- The following situations shall not be recorded in Account 511:

+ Value of materials, goods, semi-finished products transferred to external parties for processing;

+ Value of products and goods sent for sale; completed services provided to customers but not yet confirmed as sold;

+ Value of goods sent for sale on consignment or agency basis (not yet confirmed as sold);

+ Financial activity revenue, internal credit income, and other income;

+ Recovered receivables, advance payments, member capital contributions, joint venture capital contributions from other organizations and individuals...

+ State investment support for transportation, irrigation, and other infrastructure, transport fare subsidies, cost support for mountainous and border regions.

9.2. Structure and Content Reflected in Account 511 - Revenue

Debit Side:

- Special consumption tax or export tax payable calculated based on the actual revenue from sales of products, goods, and services provided to customers and confirmed as sold during the accounting period;

- VAT payable by the Cooperative calculated under the direct method;

- Revenue deductions (revenue from returned goods; discount revenue; trade discount revenue) transferred at the end of the period;

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

Credit Side:

Revenue from sales of goods and provision of services carried out by the Cooperative during the accounting period.

Account 511 does not have a final balance.

Account 511 has three second-level accounts:

+ Account 5111 - Revenue from Service Activities for Members: Reflects revenue from supporting service activities for members' production and business activities, such as irrigation services, clean water services, provision of materials, seeds, fertilizers, pesticides...

+ Account 5112 - Revenue from Production and Business Activities: Reflects revenue from the total value of products, goods, and services sold or provided to customers who have paid or accepted payment.

+ Account 5118 - Revenue from Other Activities: Reflects other revenue not reflected in Accounts 5111 and 5112, such as state price support revenue (agricultural promotion, electricity subsidies...), rental income from Cooperative assets...

9.3. Accounting Methods for Certain Special Economic Transactions

9.3.1. Revenue from service activities for members (not subject to tax), confirmed as provided during the accounting period, record:

Debit Accounts 111, 112, 1312

Credit Account 5111 - Revenue from Service Activities for Members.

9.3.2. Accounting for revenue from state subsidies and price supports for the Cooperative (For state subsidies for transport fare and cost support for mountainous and border regions, the Cooperative records a reduction in costs for the year).

a) In case the State has notified but has not yet issued funds immediately, upon receipt of the notification, record:

Debit Account 333 - Taxes and Other Payments to the State (3339)

Credit Account 5118 - Revenue from other activities.

Upon receiving funds from the State Budget for payment, record:

Debit Accounts 111, 112,...

Credit Account 333 - Taxes and other payments to the State (3339).

b) In case the State Budget provides subsidies or price supports directly to the Cooperative in cash, record:

Debit Accounts 111, 112,...

Credit Account 5118 - Revenue from other activities.

9.3.3. The accounting entries reflecting revenue from production and business activities on Account 5112 - "Revenue from production and business activities" shall be carried out according to Decision No. 48/2006/QĐ-BTC.

10. Account 515 - Financial activity revenue

This account is used to reflect revenue from interest income, royalty income, dividends, profit distributions, interest income from loans to members, and other financial activity revenues of the Cooperative.

Financial activity revenue includes:

- Interest income: Interest income from loans to members, bank deposit interest, bond investment interest, bill investment interest...

- Dividends and profit distributions;

- Income from short-term and long-term securities trading activities;

- Income from recovery or liquidation, sale of joint venture capital contributions, investments in associated companies, and other investments;

- Exchange rate gains;

- Gains from selling foreign currency;

- Other financial activity revenues.

10.1. Accounting entries for this account must adhere to the following principles

- Financial activity revenue reflected on Account 515 includes interest income, royalty income, dividends, profit distributions, interest income from loans to members, and other financial activity revenues that are considered realized within the period, regardless of whether such revenues have actually been received or not.

- For revenues from securities trading activities, revenue is recorded as the difference between the selling price and the original cost of bonds, bills, or stocks.

- In cases of liquidation or sale of investments in joint ventures, associated companies, or other entities, revenue is recorded on Account 515 as the difference between the selling price and the original cost.

10.2. Structure and content reflected in Account 515 - Financial activity revenue

Debit Side:

- VAT payable calculated under the direct method (if applicable);

- Transfer of net financial activity revenue to Account 911 - "Determine operating results".

Credit Side:

- Interest income from loans to members;

- Interest income, dividends, and profit distributions;

- Gains from selling investments in joint ventures and associated companies;

- Exchange rate gains arising from transactions during the operating period;

- Exchange rate gains from year-end revaluation of monetary items denominated in foreign currencies in operating activities;

- Other financial activity revenues occurring during the period.

Account 515 does not carry a closing balance.

10.3. Accounting methods for some main economic transactions

10.3.1. Reflecting dividend and profit distribution revenue generated during the period from investment contribution activities, record:

Debit various Accounts 111, 112, 1318,...

Credit Account 515 - Financial activity revenue (5151).

10.3.2. Accounting method for securities investment activities:

- When purchasing short-term or long-term financial securities investments, based on actual purchase costs, record:

Debit various Accounts 121, 221 (2218),...

Credit various Accounts 111, 112, 141,...

- Periodically, calculate and collect interest on bills, bonds, or receive notifications about dividends and profits, record:

Debit various Accounts 111, 112, 1318,...

Credit Account 515 - Financial activity revenue (5151).

- When transferring short-term or long-term financial securities investments, based on the selling price of the securities:

+ In case of profit, record:

Debit various Accounts 111, 112,... (At settlement price)

Credit Account 121 - Short-term financial investments (Cost basis)

Credit Account 2218 - Other long-term financial investments (Cost basis)

Credit Account 515 - Financial activity revenue (Profit from selling securities) (5151).

+ In case of loss, record:

Debit various Accounts 111, 112 (Total settlement price)

Debit Account 635 - Financial expenses, internal credit (Loss from selling securities)

Credit Account 121 - Short-term financial investments (Cost basis)

Credit Account 2218 - Other long-term financial investments (Cost basis).

- Recovering or settling short-term financial investments when they mature, record:

Debit various Accounts 111, 112,... (At settlement price)

Credit Account 121 - Short-term financial investments (Cost basis)

Credit Account 515 - Financial activity revenue (Interest income) (5151).

10.3.3. Periodically calculate interest, determine the amount of interest income from loans to members due within the period according to loan agreements, record:

Debit Account 138 - Other receivables (1318)

Credit Account 515 - Financial Activity Revenue, Internal Credit (5152).

10.3.4. Interest income from bank deposits generated during the period, record:

Debit various Accounts 111, 112,...

Credit Account 515 - Financial activity revenue (5151).

10.3.5. When liquidating or selling investments in joint ventures or associated companies, the accountant records financial activity revenue on Account 515 as the difference between the selling price and the cost basis, record:

Debit various Accounts 111, 112,...

Credit Account 2212 - Joint venture capital contributions (Cost basis)

Credit Account 2213 - Investments in associated companies (Cost basis)

Credit Account 515 - Financial activity revenue (Difference between selling price and cost basis) (5151).

10.3.6. When the Cooperative purchases materials, goods, fixed assets, services paid in foreign currency: If the average interbank exchange rate or the actual transaction exchange rate is higher than the exchange rate on the books of Accounts 111, 112, record:

Debit various Accounts 152, 153, 155, 157, 211, 241, 642, 133,... (According to the average interbank exchange rate or the actual transaction exchange rate)

Credit various Accounts 111 (1112), 112 (1122) (According to the bookkeeping exchange rate of Accounts 1112, 1122)

Credit Account 515 - Financial activity revenue (Exchange rate gain) (5151).

10.3.7. When the Cooperative pays off debts (debts to suppliers, short-term loans, long-term loans...), if the exchange rate on the books of Accounts 111, 112 is lower than the exchange rate on the books of the Debtor Accounts, record:

Debit various Accounts 311, 331, ... (Bookkeeping exchange rate)

Credit Account 515 - Financial activity revenue (Exchange rate gain)

Credit various Accounts 111 (1112), 112 (1122) (Bookkeeping exchange rate of Accounts 1112, 1122).

10.3.8. When receiving foreign currency receivables (receivables from customers, other receivables...), if there is a difference in exchange rates resulting in interest income, when paying off foreign currency receivables, record:

Debit various Accounts 111 (1112), 112 (1122) (Actual transaction exchange rate or average interbank exchange rate)

Credit Account 515 - Financial and Internal Credit Revenue (Foreign Exchange Gain) (5151)

Credit Accounts 131 (Exchange Rate on Accounting Books).

10.3.9. When processing foreign exchange rate differences due to revaluation of the year-end balances of monetary items denominated in foreign currencies from business activities, the accountant transfers the entire foreign exchange rate difference revalued at year-end to financial and internal credit revenue (If foreign exchange gain), record:

Debit Account 413 - Exchange Rate Differences

Credit Account 515 - Financial and Internal Credit Revenue (5151).

10.3.10. At each period, determine and transfer interest revenue for loans to members or bond purchases with prepayment of interest, record:

Debit Account 3387 - Unearned Revenue

Credit Account 515 - Financial and Internal Credit Revenue.

10.3.11. At the end of the accounting period, determine and record VAT payable calculated under the direct method for financial activities (If applicable), record:

Debit Account 515 - Financial and Internal Credit Revenue

Credit Account 3331 - VAT Payable.

10.3.12. At the end of the accounting period, transfer financial activity revenue generated during the period to Account 911 - "Determine Business Results", record:

Debit Account 515 - Financial and Internal Credit Revenue

Credit account 911 - Determining business results.

11. Account 635 - Financial and Internal Credit Expenses

This account reflects financial activity expenses (including costs or losses related to financial investment activities, joint venture capital contributions, associated company capital contributions, short-term securities sale losses, transaction costs for selling securities, losses from selling foreign currency, foreign exchange losses) and internal credit activity expenses (including: interest expense on savings deposits, service costs for lending to members, provisions for internal credit risk reserves).

Account 635 must be detailed for each cost item.

Do not record the following cost items in Account 635:

- Costs for producing products and providing services;

- Business management costs;

- Construction project costs;

- Other costs.

11.1. Structure and Content Reflected in Account 635 - Financial and Internal Credit Expenses

Debit Side:

- Interest expense on borrowings, interest on delayed purchase payments, interest on finance lease rentals;

- Losses from selling foreign currency;

- Losses from liquidation or sale of investments;

- Foreign exchange losses incurred during the period from business operations (Realized foreign exchange losses);

- Foreign exchange losses from year-end revaluation of monetary items denominated in foreign currencies from business operations (Unrealized foreign exchange losses);

- Provisions for internal credit risk established during the period;

- Other financial and internal credit expenses.

Credit Side:

- Reversal of provisions for internal credit risk (Difference between this year's required provision amount being less than last year's provision amount that has not been fully utilized);

- At the end of the accounting year, transfer all financial expenses incurred during the period to determine the operating results.

Account 635 does not have an ending balance.

Account 635 - Financial and Internal Credit Expenses has two second-level accounts:

- Account 6351 - Financial Activity Expenses: Reflects financial activity expenses, including: borrowing interest expenses, delayed purchase payment interest expenses, foreign currency sale losses, losses from liquidation or sale of investments, foreign exchange losses incurred during the period from business operations, etc.

- Account 6352 - Internal Credit Activity Expenses: Reflects internal credit activity expenses incurred during the period, including: interest on savings deposits paid to members, provisions for internal credit risk...

11.2. Accounting Methods for Some Main Economic Transactions

11.2.1. When financial and internal credit-related expenses arise, record:

Debit Account 635 - Financial and Internal Credit Expenses

Credit various Accounts 111, 112, 141,...

11.2.2. When selling joint venture equity or associated company equity at a price lower than the book value (loss), record:

Debit various Accounts 111, 112,... (Sale Price)

 Debit Account 635 - Financial and Internal Credit Expenses (Loss Amount)

Credit Account 221 - Long-term Financial Investments (2212, 2213) (Cost).

11.2.3. When receiving back joint venture equity or associated company equity where the value of distributed assets is lower than the book value, record:

Debit various Accounts 111, 112, 152, 211,... (Value of Distributed Assets)

Debit Account 635 - Financial and Internal Credit Expenses (Loss Amount)

Credit Account 221 - Long-term Financial Investments (2212, 2213) (Cost).

11.2.4. Internal credit activity-related expenses, record:

Debit Account 635 - Financial and Internal Credit Expenses

Credit various Accounts 111, 112, 141,...

11.2.5. Losses arising from selling foreign currency in business operations, record:

Debit various Accounts 111 (1111), 112 (1121),... (At Sale Rate)

Debit Account 635 - Financial Expenses (Loss Amount - If Any)

Credit various Accounts 111 (1112), 112 (1122),... (At Bookkeeping Exchange Rate).

11.2.6. In cases where the cooperative regularly pays interest on loans to lenders or interest on savings deposits to members, record:

Debit Account 635 - Financial and Internal Credit Expenses.

Credit various Accounts 111, 112,...

11.2.7. In cases where the cooperative pre-pays interest on loans to lenders, record:

Debit Account 142 - Short-term Prepaid Expenses (If pre-paying short-term loan interest)

Debit Account 242 - Long-term Prepaid Expenses (If pre-paying long-term loan interest)

Credit various Accounts 111, 112,...

Periodically, when allocating loan interest payable for each period to financial expenses, record:

Debit Account 635 - Financial and Internal Credit Expenses

Credit Account 142 - Short-term Prepaid Expenses

Credit Account 242 - Long-term Prepaid Expenses.

11.2.8. When purchasing fixed assets through deferred or installment payments for immediate use in production and business operations, record:

Debit Account 211 - Fixed Assets (2111, 2113) (Original Cost - Recorded at cash price)

Debit Account 133 - Deductible VAT (if applicable)

Debit Account 242 - Long-term Prepaid Expenses {Interest portion of deferred payments is the difference between total amount to be paid minus (–) Cash price minus (–) VAT (If deductible)}

Credit Account 331 - Amounts Payable to Sellers (Total Payment Amount).

Periodically, allocate deferred or installment purchase interest expense to financial expenses, record:

Debit Account 635 - Financial and Internal Credit Expenses

Credit Account 242 - Long-term Prepaid Expenses.

11.2.9. For cooperatives engaged in production and business operations when purchasing goods or services using foreign currency, if the average interbank exchange rate or actual transaction rate is lower than the exchange rate on the books of Accounts 111, 112, record:

Debit various Accounts 152, 153, 154, 155, 157, 211, 241,... (At Average Interbank Exchange Rate or Actual Transaction Rate)

Debit Account 635 - Financial and Internal Credit Expenses (Foreign Exchange Loss)

Credit various Accounts 111 (1112), 112 (1122),... (At Exchange Rate on Books of Accounts 111, 112).

11.2.10. When settling debts payable (debts to suppliers, short-term loans, long-term loans) in foreign currency, if the exchange rate on the accounting books of the debt accounts is lower than the exchange rate on the accounting books of Accounts 111, 112, record:

Debit Accounts 311, 331, etc. (Exchange rate recorded in the accounting books)

Debit Account 635 - Financial activity expenses, internal credit (Foreign exchange loss)

Credit Accounts 111(1112), 112 (1122), etc. (Exchange rate on the accounting books of Accounts 111, 112).

11.2.11. When receiving foreign currency receivables (receivables from customers, other receivables, etc.), if the exchange rate on the accounting books of the receivable accounts is higher than the actual transaction exchange rate or the interbank average transaction exchange rate, record:

Debit Accounts 111 (1112), 112 (1122), etc. (Interbank average transaction exchange rate or actual transaction exchange rate)

Debit Account 635 - Financial and Internal Credit Expenses (Foreign Exchange Loss)

Credit Account 131 (Exchange rate on the accounting books of Account 131).

11.2.12. Handling exchange rate differences when revaluing the year-end balance of monetary items denominated in foreign currency for business activities, the entire exchange rate difference at the end of the fiscal year for business activities is transferred to financial expenses (If after offsetting debit entries, credit entries in Account 413 if this account has a debit balance) to determine the results of business operations.

Transfer the foreign exchange loss at the end of the fiscal year to financial expenses, record:

Debit Account 635 - Financial activity expenses, internal credit (If there is a foreign exchange loss)

Credit Account 413 - Exchange Rate Differences.

11.2.13. When selling short-term or long-term financial investments at a price lower than the cost, record:

Debit various Accounts 111, 112,... (Sale Price)

Debit Account 635 - Financial activity expenses, internal credit (The difference between the cost and the selling price)

Credit Accounts 121, 2218 (Cost).

11.2.14. At year-end, when setting aside provisions for internal credit risks, record:

Debit Account 635 - Financial and Internal Credit Expenses

Credit Account 359 - Internal Credit Risk Reserve Fund.

11.2.15. At period-end, transfer financial expenses incurred during the period to Account 911 "Determine Business Results", record:

Debit account 911 - Determining business results

Credit Account 635 - Financial activity expenses, internal credit.

12. Account 821 - Corporate income tax expenses

This account is used to reflect corporate income tax expenses incurred during the year as the basis for determining the post-tax operating results of the Cooperative in the fiscal year.

12.1. Structure and content reflected in Account 821 - Corporate income tax expenses

Debit Side:

- Current year's corporate income tax expenses incurred;

- Corporate income tax expenses of previous years that need to be supplemented;

Credit Side:

- Adjusted reduction in corporate income tax expenses;

- Transfer corporate income tax expenses to the debit side of Account 911 "Determine Business Results".

Account 821 does not have an ending balance.

12.2. Accounting methods for some main economic transactions

12.2.1. Quarterly, accounting must determine the provisional corporate income tax payable according to the Corporate Income Tax Law for the period and record corporate income tax expenses, record:

Debit Account 821 - Corporate income tax expenses

Credit Account 3334 - Corporate income tax.

When paying corporate income tax to the State Budget, record:

Debit Account 3334 - Enterprise Income Tax

Credit Accounts 111, 112, etc.

12.2.2. At year-end, accounting must re-determine the corporate income tax payable for the year, prepare a self-assessment declaration for corporate income tax and based on the corporate income tax payable for the year, record additional or reduced corporate income tax expenses incurred during the year.

- If the actual corporate income tax payable for the year is greater than the amount already recorded, accounting records the additional corporate income tax payable, record:

Debit Account 821 - Corporate income tax expenses

Credit Account 3334 - Corporate income tax.

- If the corporate income tax payable for the year is less than the amount already recorded, accounting reduces the tax payable and records a reduction in corporate income tax expenses, record:

Debit Account 3334 - Enterprise Income Tax

Credit Account 821 - Corporate income tax expenses.

12.2.3. In cases where errors from previous years related to corporate income tax payable from previous years are discovered, the Cooperative may record an increase (or decrease) in corporate income tax expenses of previous years in the corporate income tax expenses of the discovery year.

- In cases where errors from previous years lead to an increase in corporate income tax payable from previous years, the Cooperative may record an increase in corporate income tax expenses in the reporting year, record:

Debit Account 821 - Corporate income tax expenses

Credit Account 3334 - Corporate income tax.

- In cases where errors from previous years lead to a decrease in corporate income tax payable from previous years, the Cooperative may record a decrease in corporate income tax payable and corporate income tax expenses in the reporting year, record:

Debit Account 3334 - Enterprise Income Tax

Credit Account 821 - Corporate income tax expenses.

12.2.4. At year-end, transfer corporate income tax expenses incurred during the year to determine post-tax profit, record:

Debit account 911 - Determining business results

Credit Account 821 - Corporate income tax expenses.

13. Account 911 - Determine Business Results

This account is used to determine and reflect the results of production, business, service activities, and other activities of the Cooperative in an accounting period. The results of production, business, and service activities of the Cooperative include: the results of production, business, and service activities, financial activity results, internal credit activity results, and other activity results.

- The results of production, business, and service activities are the difference between net revenue and cost of goods sold and business management expenses.

- The results of financial and internal credit activities are the difference between income and expenses of these activities. Among them, it is necessary to separately account for the results of financial activities and internal credit activities.

- The results of other activities are the difference between other income and other expenses.

13.1. Recording this account requires adherence to the following regulations

- This account must fully and accurately reflect all business operation results of the accounting period in accordance with the provisions of this Accounting System.

- The results of production, business, and service activities must be detailed recorded according to each type of activity (Production activities, processing activities, commercial trade activities, service activities, providing services to members, internal credit activities, other financial activities, etc.), within each type of production, business, and service activity, detailed recording is required for each product type, each commodity category, each service type according to the management requirements of the Cooperative.

- The revenues and incomes transferred to this account are the net sales revenue and net income.

13.2. Structure and content reflected in Account 911 - Determining business results

Debit Side:

- Cost of goods sold, merchandise, and services provided;

- Financial activity expenses, internal credit expenses, and other expenses;

- Business management costs;

- Corporate income tax expenses;

- Transfer of profit.

Credit Side:

- Net sales revenue from products, merchandise, and services provided during the period;

- Financial activity revenue, internal credit revenue, and other income;

- Transfer of loss.

Account 911 does not have an end-of-period balance.

13.3. Accounting methods for some main economic transactions

13.3.1. At the end of the accounting period, transfer the net sales revenue from sales and service provision generated during the period to Account 911 "Determining Business Results", record:

Debit Account 511 - Sales Revenue

Credit account 911 - Determining business results.

13.3.2. Transfer the cost value of goods sold, merchandise consumed, and services provided during the period, directly recorded in the cost of goods sold, record:

Debit account 911 - Determining business results

Credit Account 632 - Cost of Goods Sold, Merchandise, Services.

13.3.3. At the end of the accounting period, transfer business management costs, record:

Debit account 911 - Determining business results

Credit Account 642 - Business Management Costs.

13.3.4. At the end of the accounting period, transfer financial income, internal credit income, and other income generated during the period, record:

Debit Account 515 - Financial and Internal Credit Revenue

Debit account 711 - Other Income

Credit account 911 - Determining business results.

13.3.5. At the end of the accounting period, transfer financial activity costs, internal credit costs, and other costs, record:

Debit account 911 - Determining business results

Credit Account 635 - Financial Activity Costs, Internal Credit Costs

Credit account 811 - Other Expenses.

13.3.6. At the end of the accounting period, transfer corporate income tax costs generated during the period, record:

Debit account 911 - Determining business results

Credit Account 821 - Corporate income tax expenses.

13.3.7. Transfer the net profit after corporate income tax for the period, record:

Debit account 911 - Determining business results

Credit account 421 - Undistributed profits.

13.3.8. Transfer the loss generated during the period, record:

Debit account 421 - Undistributed profits

Credit account 911 - Determining business results.

14. Account 005 - Long-term tools and equipment in use

Account 005 is used to reflect the value of various types of long-term tools and equipment in use at the Cooperative. Long-term tools and equipment in use are those with relatively high value and long usage time (over one year), requiring strict management from the time they are put into use until they are reported as damaged.

Long-term tools and equipment in use must be detailedly accounted for by type, location of use, and person responsible for material assets. Within each type of long-term tools and equipment in use, detailed accounting must be done according to quantity, unit price, and total amount.

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

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

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

Debit side: Value of long-term tools and equipment increased due to being put into use.

Credit side: Value of long-term tools and equipment decreased due to damage, loss, and other reasons.

Debit balance: Value of long-term tools and equipment currently in use at the Cooperative.

15. Account 006 - Collateral for loans

This account is used to reflect the value of collateral and pledges given by cooperative members to the Cooperative to secure debts for loans that require collateral.

Structure and content reflected in Account 006 - Collateral for loans

Debit side: Value of collateral and pledges given by cooperative members to the Cooperative for debt security.

Credit Side:

- Value of collateral and pledges returned to borrowers when the debt is repaid;

- Value of collateral and pledges auctioned to repay Cooperative loans.

Debit balance: Value of collateral and pledges of cooperative members managed by the Cooperative.

16. Account 008 - Overdue loan interest not collected

This account is used to reflect the overdue loan interest according to cooperative credit laws that has been transferred out of the balance sheet but not yet collected by the Cooperative.

Structure and content reflected in Account 008 - Overdue loan interest not collected:

Debit side: Overdue loan interest not yet collected.

Credit side: Overdue loan interest already collected.

Debit balance: Reflects overdue loan interest not yet collected and still to be collected.

II. FINANCIAL REPORTING SYSTEM AND PUBLIC FINANCIAL REPORTING

Article 7. Cooperative Financial Reporting System

1. Compulsory Financial Reporting System to be submitted to State Authorities

 

 

(Cooperatives that prepare and submit the Balance Sheet do not need to submit the Account Balance Sheet; Small-scale Cooperatives only need to prepare and submit the Account Balance Sheet).

2. Financial Reports for Public Disclosure

 

 

 (Form B02 - Cooperative and B09 - Cooperative are used as Financial Statements)

Article 8. Responsibilities, Timeframes for Preparing and Submitting Financial Reports

1. Responsibilities, Timeframes for Preparing and Submitting Financial Reports

- All Cooperatives must comply with regulations on the Financial Reporting System (List, Forms, Methods of Preparation) and must prepare and submit annual Financial Reports according to the provisions.

- The deadline for submitting annual Financial Reports is no later than 60 days from the end of the fiscal year.

- Cooperatives may prepare monthly or quarterly Financial Reports to serve management and operational needs of the cooperative.

2. Recipients of Annual Financial Reports

Annual Financial Reports must be sent to the following organizations:

- Planning and Finance Department;

- Agriculture and Rural Development Department;

- Tax Office (District, County).

III. ACCOUNTING DOCUMENTATION REGIME

Article 9. Accounting documentation for Cooperatives shall be implemented in accordance with the Accounting Law, Decision No. 48/2006/QD-BTC (Accounting Documentation Regime Section) and this Circular's provisions (Accounting Document List - Appendix 03).

Cooperatives engaged in internal credit activities must, in addition to applying the accounting documentation regime as prescribed above, also comply with internal credit activity documentation as stipulated by the State Bank.

IV. ACCOUNT BOOK REGIME

Article 10. The account book regime for Cooperatives shall be implemented in accordance with the Accounting Law, Decision No. 48/2006/QD-BTC (Account Book Regime Section), and supplemented and amended in this Circular (Account Book List, Forms - Appendix 04).

Part III

IMPLEMENTATION

Article 11. This Circular takes effect 45 days from the date of signature and replaces the Accounting System for Agricultural Cooperatives issued pursuant to Decision No. 1017/QD-BTC dated December 12, 1997 of the Minister of Finance.

Cooperatives will implement asset inventory, closing accounts, transferring balances of accounting accounts, and transferring account books according to this accounting system starting from the 2010 fiscal year.

Article 12. The Director of the Accounting and Auditing Regulations Department, People's Committees of Provinces and Cities directly under the Central Government, and Heads of relevant units are responsible for implementing this Circular.

Within the scope of the Cooperative Accounting System stipulated in this Circular, the Department of Finance shall coordinate with the Departments of Agriculture and Rural Development of Provinces and Cities directly under the Central Government to study, direct, and guide Cooperatives in applying accounting account regulations, accounting documentation, account books, and selecting appropriate account book formats based on the level and capacity of accounting staff and the application conditions of Cooperatives in their respective areas./.