Circular No. 34/2011/TT-BTC amends Circular No. 228/2009/TT-BTC of the Ministry of Finance, abolishes one clause in Article 1, and guides the system for setting aside and using provisions for inventory write-downs, losses on financial investments, bad debts, and product warranties, goods, and construction works at enterprises. This Circular takes effect from the fiscal year 2011.
Scope of application
Enterprise
Key points
- Enterprise → does not apply Clause 2 of Article 1 of Circular No. 228/2009/TT-BTC (which has been abolished)
- Enterprise → sets aside and uses provisions for inventory write-downs, losses on financial investments, bad debts, and product warranties, goods, and construction works
- This Circular takes effect from the fiscal year 2011
🌐 Social impact of this document
- Enterprises will no longer apply some old regulations on setting aside provisions, thereby reducing management costs
- However, enterprises must comply with new regulations on setting aside and using provisions, which may increase financial management efforts
❓ Frequently asked questions
From which fiscal year does this Circular apply?
This Circular applies from the fiscal year 2011.
Does the enterprise still apply Clause 2 of Article 1 of Circular No. 228/2009/TT-BTC?
No, enterprises have abolished Clause 2 of Article 1 of Circular No. 228/2009/TT-BTC.
When does this Circular take effect?
This Circular takes effect 45 days from the date of issuance, i.e., from June 2011.
What provisions must enterprises set aside according to this Circular?
Enterprises must set aside and use provisions for inventory write-downs, losses on financial investments, bad debts, and product warranties, goods, and construction works.
If enterprises encounter difficulties during implementation, who will resolve them?
If there are any issues, enterprises are advised to promptly report to the Ministry of Finance for timely resolution.
Full text
CIRCULAR
AMENDING CIRCULAR NO. 228/2009/TT-BTCDATED DECEMBER 7, 2009 OF THE MINISTRY OF FINANCE ON
GUIDELINES FOR THE ESTABLISHMENT AND USE OF PROVISIONS FORWRITE-DOWNS OF INVENTORY, LOSSES OF FINANCIAL INVESTMENTS,
BAD DEBTS, AND WARRANTY COSTS FOR PRODUCTS, GOODS, AND CONSTRUCTION PROJECTS AT ENTERPRISES THE MINISTRY OF FINANCE ISSUES THIS CIRCULAR TO AMEND CIRCULAR NO. 228/2009/TT-BTC DATED DECEMBER 7, 2009 OF THE MINISTRY OF FINANCE ON GUIDELINES FOR THE ESTABLISHMENT AND USE OF PROVISIONS FOR WRITE-DOWNS OF INVENTORY, LOSSES OF FINANCIAL INVESTMENTS, BAD DEBTS, AND WARRANTY COSTS FOR PRODUCTS, GOODS, AND CONSTRUCTION PROJECTS AT ENTERPRISES (HEREINAFTER REFERRED TO AS CIRCULAR NO. 228/2009/TT-BTC) AS FOLLOWS:
Article 1. Scope of Application.
_________________________________________
Pursuant to Decree No. 14/2007/NĐ-CP dated January 19, 2007 of the Government detailing certain provisions of the Securities Law;
Pursuant to Decree No. 124/2008/NĐ-CP dated December 11, 2008 of the Government detailing and guiding the implementation of certain provisions of the Law on Corporate Income Tax;
Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
Clause 2 of Article 1 of Circular No. 228/2009/TT-BTC is repealed.
This Circular takes effect 45 days from the date of issuance and shall be applied starting from the fiscal year 2011. Any issues encountered during implementation should be promptly reported to the Ministry of Finance for timely resolution./.
Clause 2 of Article 1 of Circular No. 228/2009/TT-BTC is repealed.
Article 2. Implementation
This Circular takes effect 45 days from the date of signature and shall be applied from the fiscal year 2011. Any difficulties encountered during implementation should be promptly reported to the Ministry of Finance for timely resolution./.
DEPUTY MINISTER
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