Pursuant to …;

Issuing accounting regulations for small-scale industrial and handicraft cooperatives

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THE MINISTER OF FINANCE

Pursuant to Decree No. 197-CP dated November 7, 1961 of the Council of Ministers stipulating the tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Article 56 of the Accounting Regulations of State Enterprises issued pursuant to Decree No. 175-CP dated October 28, 1961 of the Council of Ministers;

Pursuant to Resolution No. 100-CP dated July 3, 1968 of the Council of Ministers on principles for managing financial affairs of small-scale industrial and handicraft cooperatives and entrusting the Ministry of Finance with issuing accounting regulations for small-scale industrial and handicraft cooperatives.

Pursuant to …;

Clause 4 of Article 6Now hereby issues accounting regulations for small-scale industrial and handicraft cooperatives, aiming to assist cooperatives in strengthening economic and financial management, promoting production development, practicing thrift, expanding material infrastructure construction, gradually improving members' living standards, and consolidating socialist collective production relations.

12/2025/TT-BNNMT dated June 19, 2025 issued by the Minister of Agriculture and EnvironmentThese accounting regulations apply to all small-scale industrial and handicraft cooperatives.

Article 3. Provincial and municipal administrative committees shall guide the implementation of accounting regulations for small-scale industrial and handicraft cooperatives in accordance with the level of development of small-scale industry and handicrafts, characteristics of various trades, and organizational levels of cooperatives at localities; lead lower-level administrative committees to coordinate with relevant departments of provinces and cities to regularly inspect and assist cooperatives in strictly implementing state accounting regulations;

Article 4. These accounting regulations shall take effect from January 1, 1969. Previous provisions regarding accounting for small-scale industrial and handicraft cooperatives that conflict with these regulations are hereby abolished.

ACCOUNTING REGULATIONS FOR SMALL-SCALE INDUSTRIAL AND HANDICRAFT COOPERATIVES

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Accounting in small-scale industrial and handicraft cooperatives involves numerical calculations and record-keeping to reflect, check, and analyze the situation and results of production activities and capital utilization of cooperatives.

Accounting is essential for cooperative management, serving to help cooperatives accurately, timely, and comprehensively grasp production situations, types of capital, and sources of capital; assist cooperatives in conducting business with planning and calculation; ensure that cooperatives manage and utilize assets, funds, and labor effectively to serve and promote production development, improve members' living standards, fulfill obligations to the state, strengthen cooperative management, and consolidate socialist collective production relations.

Part I

CONTENT OF ACCOUNTING WORK

Article 1. The system of accounting accounts applicable to small-scale industrial and handicraft cooperatives is specified as follows:

Accounts outside the balance sheet:

Account No. 1: Depreciation of fixed assets.

Account No. 2: Raw materials received for processing.

Account No. 3: Materials received for storage.

Account No. 4: Leased-out fixed assets.

Article 2. Contents of Accounts

Account 001 – Fixed Assets reflects the situation of increases and decreases in fixed assets of the cooperative.

The Debit side records the original value of fixed assets increased in the following cases:

- Receiving fixed assets from members' share capital contributions;

- Receiving additional fixed assets purchased or completed through various sources: accumulation, depreciation, public welfare;

- Receiving fixed assets awarded by state agencies and organizations;

- Receiving fixed assets transferred from other cooperatives upon merger;

- Converting consumable assets to fixed assets;

- Adding equipment to increase the original value of fixed assets;

- Adjusting to increase the original value of fixed assets due to previous incorrect bookkeeping entries;

- Discovering surplus fixed assets previously omitted from bookkeeping.

The Credit side records the original value of fixed assets decreased in the following cases:

- Dismantling parts of fixed assets for scrapping or sale;

- Settling damaged fixed assets that cannot be repaired or transferring them to another cooperative;

- Converting fixed assets to consumable assets;

- Reducing lost fixed assets;

- Adjusting to decrease the original value of fixed assets due to previous incorrect bookkeeping entries.

The Debit balance reflects the current original value of fixed assets of the cooperative.

Account 001 - Major Repairs, Purchases, and Basic Construction reflects costs and production costs of major repairs, purchases, and basic construction of fixed assets.

The Debit side records expenses related to major repairs, purchases, and basic construction of fixed assets.

The Credit side records the actual cost of completed major repair work or basic construction of fixed assets, and the value of unused materials returned to inventory.

The Debit balance reflects the costs of unfinished major repair and basic construction work.

Account 021 - Raw Materials and Main Materials reflects the situation of receipt, issuance, and remaining in inventory of various raw materials and main materials.

The Debit side records the actual value of raw materials and main materials received in the following cases: receiving raw materials and main materials contributed by members, purchased, or processed externally and then received into inventory; unused raw materials and main materials returned to inventory by workshops or production units, excess discovered during inventory checks.

The Credit side records the actual value of raw materials and main materials issued from inventory in the following cases: issuing to workshops or production units for production purposes, issuing for major repairs or basic construction, issuing for external processing, issuing for resale, shortage discovered during inventory checks.

The Debit balance reflects the actual value of raw materials and main materials remaining in inventory.

Account 022 - Auxiliary Materials reflects the situation of receipt, issuance, and remaining in inventory of various auxiliary materials and packaging materials.

The Debit side records the actual value of auxiliary materials and packaging materials received into inventory in the following cases: auxiliary materials and packaging materials contributed by members, purchased; unused auxiliary materials and packaging materials returned to inventory by workshops or production units, excess discovered during inventory checks.

The Credit side records the actual value of auxiliary materials and packaging materials issued from inventory in the following cases: issuing to workshops or production units for production purposes, issuing for major repairs or basic construction, issuing for resale, shortage discovered during inventory checks.

The Debit balance reflects the actual value of auxiliary materials and packaging materials remaining in inventory.

Account 023 - Fuel reflects the situation of receipt, issuance, and remaining in inventory of various fuels.

The Debit side records the actual value of fuel received into inventory in the following cases: fuel contributed by members, purchased, unused fuel returned to inventory by workshops or production units, excess discovered during inventory checks.

The Credit side records the actual value of fuel issued from inventory in the following cases: issuing to workshops or production units for production purposes, issuing for major repairs, issuing to workshops or production units for production purposes, issuing for major repairs, issuing for resale, shortage discovered during inventory checks.

The Debit balance reflects the actual value of fuels remaining in inventory.

Account 025 - Materials Processed Externally reflects the quantity of materials handed over to external parties for processing into different materials according to production needs, determining the actual cost of finished externally processed materials.

The Debit side records the actual value of materials handed over for external processing, transportation costs, and processing fees.

The Credit side records the actual cost of finished externally processed materials received into inventory.

The Debit balance reflects the actual value of unfinished externally processed materials.

Account 026 - Consumable Assets reflects the situation of receipt, issuance, and remaining in inventory of various consumable assets.

The Debit side records the actual value of consumable assets received into inventory in the following cases: contributed by members; purchased; consumable assets not used by workshops or production units returned to inventory; fixed assets converted to consumable assets; excess discovered during inventory checks.

The Credit side records the actual value of consumable assets issued from inventory to workshops, production units, and administrative departments; issuing for major repairs or basic construction; reselling; converting consumable assets to fixed assets; shortage discovered during inventory checks.

The Debit balance reflects the actual value of consumable assets remaining in inventory.

Account 029 - Repair and Replacement Parts reflects the situation of receipt, issuance, and remaining in inventory of various repair and replacement parts.

The Debit side records the actual value of repair and replacement parts received into inventory in the following cases: contributed by members; purchased; repair and replacement parts not used by workshops or production units returned to inventory; excess discovered during inventory checks.

The Credit side records the actual value of repair and replacement parts issued from inventory to workshops and production units for major repairs or basic construction; reselling; shortage discovered during inventory checks.

The Debit balance reflects the actual value of repair and replacement parts remaining in inventory.

Account 030 - Scrap Materials reflects the situation of receipt, issuance, and remaining in inventory of various scrap materials and waste products.

The Debit side records the actual value of scrap materials received into inventory.

The Credit side records the actual value of scrap materials and waste products issued from inventory.

The Debit balance reflects the actual value of scrap materials and waste products remaining in inventory.

Account 045 - Production Costs reflects production costs by each item incurred during the production and business process; determines the production cost of finished goods stored in inventory and the production cost of unfinished products in progress.

The Debit side records production costs incurred in the month by each item such as: raw materials and main materials, auxiliary materials, fuel,...

The Credit side records the production cost of finished goods stored in inventory; costs related to repair, processing, and completion work; the value of unused materials returned to inventory.

The Debit balance reflects the production cost of unfinished products in progress.

Account 051 - Workshop Costs reflects general production costs incurred within the workshop and allocated to the production cost of products.

The Debit side records production costs incurred within the workshop according to the financial management regulations.

The Credit side records the workshop costs allocated to the production cost of products.

This account has no balance at the end of the month.

Account 052 - Management Costs reflects general management costs for the entire cooperative and allocated to the production cost of products.

The Debit side records management costs incurred throughout the cooperative according to the financial management regulations.

The Credit side records management costs allocated to the production and business costs of the cooperative.

This account has no balance at the end of the month.

Account 057 - Costs Awaiting Allocation reflects expenses that need to be paid in advance and then allocated to production and business activities, such as low-value consumables issued for use but need to be allocated over multiple periods,...

The Debit side records expenses that need to be allocated over multiple periods.

The Credit side records expenses that have been allocated.

The Debit balance reflects unallocated expenses.

Account 060 - Finished Goods reflects the situation of finished goods entering, exiting, and remaining in inventory calculated based on production costs.

The Debit side records the amount of finished goods entering inventory and surplus finished goods discovered during inventory checks (based on production costs when completed).

The Credit side records the amount of finished goods exiting inventory and shortage of finished goods discovered during inventory checks (based on production costs when completed).

The Debit balance reflects the amount of finished goods currently remaining in inventory (based on production costs when completed).

Account 067 - Consumption reflects the situation and results of consumption by the cooperative.

The Debit side records production costs of various finished goods sold; costs of completed repair, service, and processing work; value of various materials transferred for sale; depreciation of fixed assets for lease and major repairs; consumption costs such as packaging, packing materials,... sales tax, corporate tax; difference between revenue and costs (i.e., income) from sales, processing, repair, service, material sales, and fixed asset leasing.

The Credit side records revenue from sales, repair, service, and processing; other revenues such as proceeds from material sales and rental income from fixed assets.

This account has no balance at the end of the month.

Account 070 - Cash Reserve reflects the situation of cash inflows, outflows, and remaining cash in the reserve.

The Debit side records cash inflows into the reserve.

The Credit side records cash outflows.

The Debit balance reflects the remaining cash in the reserve.

Account 071 - Bank Deposits reflects the situation of deposits made, withdrawn, and remaining bank deposits.

The Debit side records deposits made into the bank.

The Credit side records withdrawals from the bank.

The Debit balance reflects the remaining deposits in the bank.

Account 093 - Tax Settlement reflects the situation of tax payments for goods, corporate tax, and corporate profit tax.

The Debit side records taxes paid and the amount of corporate profit tax allowed by the State to retain as cooperative capital accumulation funds.

The Credit side records taxes due.

The Debit balance reflects excess tax payments.

The Credit balance reflects unpaid taxes.

Account 096 - Advance Payment Settlement reflects the situation of advance payment settlements within the cooperative such as: advance payments for purchasing materials, advance travel expenses,...

The Debit side records advance payments.

The Credit side records settled advance payments.

The Debit balance reflects unsettled advance payments.

Account 097 - Settlement with Members reflects the situation of income settlement with members.

The Debit side records pre-paid income to members and income payments to members.

The Credit side records income payable to members.

The Debit balance reflects income already paid to members.

The Credit balance reflects income still to be paid to members.

Account 101 - Receivables reflects the situation of receivables from units and individuals owed to the cooperative.

The Debit side records receivables.

The Credit side records receivables collected.

The Debit balance reflects outstanding receivables.

Account 102 - Payables reflects the situation of payables owed by the cooperative to units and individuals.

The Debit side records payables settled.

The Credit side records payables.

The Debit balance reflects outstanding payables.

Account 104 - Settlement with Federation reflects the situation of payments made to the federation.

The Debit side records payments made.

The Credit side records payments due.

The Debit balance reflects excess payments made.

The Credit balance reflects payments still due.

Account 121 - Mandatory Share Capital reflects the situation of mandatory share capital contributed by members to the cooperative and the cooperative's repayment of mandatory share capital to members.

The Debit side records the value of mandatory share capital repaid to members.

The Credit side records the value of mandatory share capital contributed by members to the cooperative.

The Credit balance reflects the total value of mandatory share capital currently contributed by members to the cooperative.

Account 122 - Raised Share Capital reflects the situation of raised share capital contributed by members to the cooperative and the cooperative's repayment of raised share capital to members.

The Debit side records the value of raised share capital repaid to members.

The Credit side records the value of raised share capital contributed by members to the cooperative.

The Credit balance reflects the total value of raised share capital currently contributed by members to the cooperative.

Account 123 - Accumulated Capital reflects the increase and decrease in accumulated capital.

The Debtor records the reduction in accumulated capital in the following cases: additional allocation to working capital, procurement, construction of fixed assets using this source...

The Creditor records the increase in accumulated capital due to monthly income allocations for accumulation, the amount of corporate income tax allowed to be retained by the cooperative, proceeds from the settlement or sale of fixed assets, amounts received as awards decided by the member assembly to be allocated to accumulation.

The Credit balance reflects the current accumulated capital.

Account 124 – Accumulated Capital that has become Fixed Assets reflects the situation of increases and decreases in accumulated capital that has become fixed assets.

The Debtor records the reduction in accumulated capital that has become fixed assets: dismantling part of the fixed assets to scrap or sell, settling unused fixed assets, transferring fixed assets during division or merger of cooperatives. Fixed assets converted to low-value consumables, losses on fixed assets not found to be compensated...

The Creditor records the increase in accumulated capital that has become fixed assets due to: procurement, construction, or receipt of donated fixed assets, receiving transferred fixed assets during merger of cooperatives, low-value consumables converted to fixed assets, additions increasing the original value of fixed assets.

The Credit balance reflects the total accumulated capital that has become fixed assets currently held.

Account 125 – Accumulated Capital Supplementing Working Capital reflects the situation of increases and decreases in accumulated capital that has supplemented working capital.

The Debtor records the reduction in accumulated capital supplementing working capital in the case of: loss or shortage of materials, finished products beyond standard levels or due to fire, natural disasters without finding compensation, uncollectible debts.

The Creditor records the increase in accumulated capital supplementing working capital due to: allocation from accumulated capital to supplement working capital, inventory discovery of excess materials, finished products, uncollectible debts...

The Credit balance reflects the accumulated capital supplementing working capital currently held.

Account 126 – Depreciation Capital reflects the situation of increases and decreases in basic depreciation capital and major repair depreciation capital.

The Debtor records the reduction when completing procurement, construction, or major repairs of fixed assets using depreciation capital.

The Creditor records the increase due to monthly allocations for basic depreciation and major repair depreciation.

The Credit balance reflects the current depreciation capital.

Account 130 – Public Welfare Capital reflects the situation of increases and decreases in public welfare capital.

The Debtor records the reduction in public welfare capital due to: social assistance, health, education, rewards expenditures; procurement, construction expenditures of collective welfare fixed assets...

The Creditor records the increase in public welfare capital due to: monthly income allocations, donations allocated to public welfare, proceeds from selling fixed assets or recovered material values when settling collective welfare fixed assets.

The Credit balance reflects the total public welfare capital currently held.

Account 165 – Long-term Borrowings from Banks reflects the situation of increases and decreases in long-term borrowings from banks.

The Debtor records the reduction when the cooperative repays long-term borrowings.

The Creditor records the increase when the cooperative borrows long-term funds.

The Credit balance reflects the total long-term borrowings yet to be repaid to the bank.

Account 166 – Short-term Borrowings from Banks reflects the situation of increases and decreases in short-term borrowings from banks.

The Debtor records the reduction when the cooperative repays short-term borrowings.

The Creditor records the increase when the cooperative borrows short-term funds.

The Credit balance reflects the total short-term borrowings yet to be repaid to the bank.

Account 190 – Income and Distribution reflects the situation of income and distribution of the cooperative.

The Debtor records distribution items: corporate income tax payable to the State; fees payable to the cooperative federation; allocations of income into accumulated capital, public welfare, and members' share of income.

The Creditor records the cooperative's income.

This account has no balance at the end of the month.

Accounts outside the balance sheet:

Account Number 1 - Depreciation of Fixed Assets reflects the situation of increases and decreases in the value of depreciation of various types of fixed assets.

The Debtor records the reduction in depreciation of fixed assets due to: completion of major repairs of fixed assets; settlement or resale of unused fixed assets; transfer of fixed assets to a member unit, separation to form a new cooperative or merger with another cooperative; conversion of fixed assets to low-value consumables.

The Creditor records the increase in depreciation of fixed assets due to: monthly allocations for basic depreciation and major repair depreciation, value of low-value consumables already allocated when converting used low-value consumables to fixed assets.

The Credit balance reflects the total value of depreciation of fixed assets currently held.

Account Number 2 - Raw Materials Received for Processing reflects the situation of receiving and settling various types of raw materials received for processing between the cooperative and the entity entrusting processing.

The Debtor records the value of raw materials received for processing.

The Creditor records the value of raw materials used to produce finished goods returned to the entity entrusting processing.

The Debit balance reflects the value of various types of raw materials received for processing currently held by the cooperative.

Account Number 3 - Inventory Held for Others reflects the value of various types of inventory held for others and the situation of returning those inventories to the depositor.

The Debtor records the value of various types of inventory when holding for others.

The Creditor records the value of various types of inventory when returning to the depositor.

The Debit balance reflects the value of various types of inventory currently held by the cooperative for others.

 Account Number 4 - Leased Fixed Assets reflects the situation of increases and decreases in leased fixed assets.

The Debtor records the original value of leased fixed assets.

The Creditor records the original value of fixed assets when returned to the lessor.

The Debit balance reflects the original value of leased fixed assets currently held by the cooperative.

Article 3. Cooperatives base on the system of accounts and the contents of the accounts prescribed above to open appropriate accounting accounts suitable for their production and business operations. If a cooperative engages in production and business activities consistent with the content of a particular account, it must record them in that account. If it is deemed necessary to open additional accounts, approval from the Ministry of Finance is required.

Article 4. Accounting vouchers.

All activities related to money or property of the cooperative must be accompanied by valid accounting vouchers. A valid voucher accurately reflects the truth and events recorded therein must comply with regulations and procedures; calculations and recording of data must be accurate, timely, complete, and clear. The voucher must include the following elements:

- Name of the voucher;

- Serial number of the voucher;

- Name of the unit or name of the person delivering or receiving;

- Clear summary of the event's content;

- Quantity and amount of money;

- Date of issuance of the voucher;

- Signature of the person issuing the voucher, the approver, the deliverer, and the receiver.

All vouchers must be reviewed by the cooperative’s accountant and recorded in the ledger. Any orders for income and expenditure of money and for the issuance and receipt of property must bear the signatures of the financial management committee member responsible for finance and the chief accountant; if either signature is missing, the voucher will have no validity and cannot be used. Accounting vouchers may not be erased, pasted over, interlined, overwritten, or left with blank lines between written lines.

Article 5. Accounting ledgers.

Cooperatives apply the accounting voucher ledger system and maintain the following types of accounting ledgers:

1. Ledgers kept by the cooperative’s accounting department:

a) General ledgers including:

- Voucher registration numbers;

- Ledger accounts;

b) Detail ledgers including:

- Fixed asset registration ledger (or fixed asset cards);

- Detail ledgers for various materials such as raw materials, primary materials, auxiliary materials, fuel, low-value consumables, repair parts and replacements, scrap, and outsourced processing materials.

- Large repair and basic construction ledgers (opened according to sub-accounts);

- Workshop cost ledgers (opened according to sub-accounts);

- Unallocated cost ledgers (opened according to each type of allocation);

- Finished goods ledgers;

- Advance payment settlement ledgers (opened according to units and individuals);

- Receivable ledgers (opened according to units and individuals);

- Payable ledgers (opened according to units and individuals);

- Share capital ledgers (tracking each member);

- Public welfare fund ledgers;

- Depreciation fund ledgers;

- Labor performance ledgers.

2. Ledgers kept by the cashier: cash ledger.

3. Ledgers kept by the warehouse keeper: material and finished goods ledger (warehouse card by quantity).

Cooperatives must open different types of ledgers based on their operational circumstances, and the types of ledgers opened must conform to the prescribed models as detailed in the accompanying guidelines. ^([1])In addition to the above ledgers, cooperatives may open other detail ledgers to meet their specific management needs, but such ledgers must be approved by the financial department.

The fiscal year for small-scale industrial and handicraft cooperatives runs from January 1 to December 31 of the Gregorian calendar. At the end of each month, quarter, and year, accountants must close the books, reconcile general ledgers with detail ledgers, reconcile the accountant’s ledgers with those of the cashier and warehouse keeper, and reconcile accounting figures with actual cash balances in the treasury and inventory in the warehouse. At the end of the year, in addition to these tasks, accountants must close old ledgers, open new ones, and transfer all balances from the old ledgers as of December 31 to the new ledgers.

When using accounting ledgers, they must be numbered sequentially on each page, stamped across each page, and certified by the financial management committee member responsible for finance regarding the number of pages in each ledger book. Accounting ledgers may not be recorded with pencils, erased, pasted over, interlined, overwritten, or left with blank lines between written lines. Corrections to errors must be made in accordance with methods prescribed by the Ministry of Finance.

Article 6. The method of recording in the cooperative’s accounting ledgers is the double-entry system. However, small-scale cooperatives with simple management requirements may use the single-entry system, provided it is approved by the financial department.

Article 7. Accounting Reports

To assist cooperatives, associations of cooperatives in small-scale and handicraft industries, financial authorities, and banking institutions in regularly obtaining information reflecting the general situation of production and business operations of cooperatives, cooperatives must prepare the following accounting reports monthly, quarterly, and annually, in accordance with the prescribed format set out in the attached guidance document. ^(1):

Monthly report includes:

- Account balance sheet.

- Income and distribution statement.

Quarterly and annual reports: In addition to the above reports, at the end of each quarter and year, cooperatives must also prepare the following additional reports:

- Summary balance sheet.

- Production cost statement for major products.

- Report on the use of accumulated capital and depreciation capital.

- Report on the use of public welfare capital.

The above reports shall be prepared in four copies:

- One copy retained by the cooperative,

- One copy sent to the finance department,

- One copy sent to the handicraft department,

- One copy sent to the bank's branch office.

The deadline for submitting reports to the aforementioned agencies is as follows:

- Monthly report: no later than the 15th day of the following month,

- Quarterly report: no later than the 20th day of the first month of the following quarter,

- Annual report: no later than January 30 of the following year.

Cooperatives that undertake processing work for the State shall prepare and submit necessary reports to the agency assigning the processing work according to the provisions in the processing contract.

Article 8. Cooperatives must carefully organize the preservation and storage of vouchers, ledgers, and accounting reports, absolutely preventing loss, misplacement, or damage; they must arrange them meticulously by type, within each type they must be arranged chronologically, and there must be a record book tracking the stored vouchers, ledgers, and reports. The period for storing and destroying these accounting documents must comply with the regulations on the storage and destruction of accounting documents stipulated by the State.

Article 9. Inventory Verification

To check the preservation and use of various types of assets, promptly detect and prevent wastage and embezzlement, and ensure the accuracy of accounting data, cooperatives must periodically conduct inventory verifications of various types of assets and funds. The content and timing of periodic inventory verification are as follows:

- Fixed assets: at least once a year at the end of the year;

- Raw materials, low-value consumables, spare parts for repair and replacement, unfinished products, finished goods: at least once a quarter at the end of the quarter;

- Construction projects and large-scale repair works of fixed assets: at least once a quarter at the end of the quarter;

- Cash reserves and securities equivalent to cash: at least once a month, the date of inventory does not need to be uniformly specified between months;

- Accounts receivable and payable: at least once a quarter at the end of the quarter.

In addition to periodic inventory verification, cooperatives must also conduct ad hoc inventory verification in the following situations:

- When changing personnel responsible for managing various types of assets,

- When merging, dividing, dispersing, or evacuating cooperatives,

- When losses or damages occur due to natural disasters or enemy attacks,

- When requested by the members' assembly, the assembly of member representatives, or the supervisory board,

- When required by the competent state authority.

The content of ad hoc inventory verification shall be determined based on the specific circumstances and requirements of the cooperative or the competent state authority.

Specifically, cooperatives undertaking processing work for the State must conduct periodic or ad hoc inventory verification of raw materials received for processing and processed products... according to the requirements of the agency assigning the processing work.

Article 10. Accounting Inspection.

To promote the implementation of accounting, to enhance the effectiveness of accounting work in managing cooperatives, cooperatives must regularly conduct comprehensive inspections of accounting work.

The main contents of accounting inspection in cooperatives include:

- Inspecting the application of general accounting systems and regulations according to the specific conditions of each cooperative;

- Inspecting the recording of vouchers and ledgers on a daily basis;

- Inspecting the preparation and submission of accounting reports;

- Inspecting payment situations;

- Inspecting inventory and monetary funds;

- Inspecting the organization and leadership of accounting work.

Accounting inspection includes regular inspections and irregular inspections.

Regular inspections include:

- Inspections by the chief accountant of the daily accounting work of accountants, cashiers, warehouse keepers, workshops, or production teams;

- Inspections by the management board and supervisory board once a year of the accounting department's work in the cooperative;

- Inspections by the association of small-scale industrial and handicraft cooperatives once a year of the accounting work in the cooperative.

Irregular accounting inspections are conducted upon request of the member assembly or the representative assembly of members, the Administrative Committee, the association of small-scale industrial and handicraft cooperatives, and financial authorities at various levels.

Part Two

ORGANIZATION OF THE ACCOUNTING DEPARTMENT - TASKS AND POWERS OF DIFFERENT LEVELS IN COOPERATIVES FOR ACCOUNTING WORK.

Article 11. Organization of the accounting department.

Any small-scale industrial or handicraft cooperative, regardless of size, must organize an accounting department headed by a chief accountant and assisted by several accountants, depending on the scale of production and the volume of accounting work.

Those engaged in accounting must be individuals with good political qualities, a spirit of impartiality, thriftiness in building cooperatives, and a sense of struggle to protect the system, ensuring good accounting work. In addition to these criteria, the chief accountant must be a person with organizational and leadership capabilities, solid professional expertise, and trusted by members. Accountants must not concurrently hold positions such as warehouse keeper, cashier, raw material buyer, finished product seller, or labor contractor.

Cooperatives must assign individuals with sufficient capacity for accounting work, while professionalizing accounting staff to create conditions for them to delve into their duties, accumulate experience, and improve their professional skills. The chief accountant must be elected by the member assembly or the representative assembly of members and approved by the County, City, or Ward Administrative Committee.

Article 12. The tasks of the cooperative accounting department are:

1. Calculating, recording, and reflecting:

- The situation of various types of assets and sources of capital of the cooperative in terms of quantity, quality, and value, and the usage of these assets within the cooperative;

- The labor situation of members and the utilization of working days for production;

- The cost, income, distribution, and settlement of debts.

2. Through calculation and recording, inspecting the implementation of policies, systems, and financial discipline, urging and inspecting the implementation of production plans, labor plans, and financial plans, identifying and promptly preventing wastefulness, embezzlement, and violations of policies and systems.

3. Providing data and materials to serve the preparation of production plans, labor plans, and financial plans of the cooperative, contributing to monitoring and analyzing the implementation of these plans.

Article 13. The requirements for accounting work in small-scale industrial and handicraft cooperatives are accuracy, timeliness, completeness, clarity, and ease of understanding.

Article 14. The chief accountant of small-scale industrial and handicraft cooperatives is directly under the leadership of the management board in all aspects, while adhering to the guidance of the association of small-scale industrial and handicraft cooperatives and financial authorities regarding accounting practices.

The chief accountant has the following responsibilities and powers:

1. Organizing and directing the accounting department and accounting work in accordance with the system to effectively serve economic and financial management and the implementation of production, labor, and financial plans of the cooperative;

2. Through accounting work, contributing to inspecting, analyzing, and evaluating the use of assets and capital, the implementation of production plans, labor plans, financial plans, state policies, systems, and financial discipline, proposing timely measures to prevent wastefulness, embezzlement, or violations of policies, systems, and financial discipline;

3. Guiding, inspecting, and urging accountants, cashiers, and warehouse keepers to comply fully with the provisions of the financial accounting system, training accountants, cashiers, and warehouse keepers in their professional duties;

4. Participating in meetings of the management board, proposing suggestions to strengthen cooperative management, participating in the preparation of the cooperative's financial revenue and expenditure plan, serving the transparency of financial work in the cooperative;

5. Continuously drawing lessons to constantly improve work methods, bringing the cooperative's accounting work into a routine and system, ensuring that the accounting department meets the requirements of accuracy, timeliness, completeness, clarity, and ease of understanding.

The chief accountant must inspect compliance with financial accounting principles, systems, and discipline in the cooperative. If the management board decides on revenues and expenditures that do not conform to the system, the chief accountant has the right to demand compliance. If this opinion is not accepted, the chief accountant must execute the management board's decision while promptly reporting to the supervisory board of the cooperative or the association of small-scale industrial and handicraft cooperatives.

Article 15. Under the leadership and assignment of the chief accountant, accountants have the following tasks:

1. Preparing accounting vouchers, checking vouchers before signing approval;

2. Calculating and recording in accounting books in a timely and complete manner the economic and financial activities of the cooperative, periodically reconciling ledgers with cashiers and warehouse keepers;

3. Preparing, submitting, and posting accounting reports in accordance with the provisions of Article 7;

4. Safeguarding and properly preserving accounting vouchers, ledgers, and reports in accordance with the provisions of Article 8.

5. Ensure the accuracy and completeness of income distribution allocations of the cooperative, timely and fully pay taxes to financial authorities, and allocate contributions to the association of small-scale industrial and handicraft cooperatives.

Specifically, at workshops or production teams, accountants have the following responsibilities:

- Accurately, promptly, and completely record fixed assets, tools, finished products produced by members, and the number of working days of members at workshops or teams in the workshop or team accounting books;

- Timely report accounting data from workshops or teams as required by the chief accountant.

Article 16. The Members' Congress has duties and powers.

- Examine and approve the accounting regulations of the cooperative;

- Examine and approve accounting reports, based on which to assess and evaluate the implementation of policies, systems, financial discipline, production plans, labor, and finance of the cooperative;

- Listen to the supervisory board's report on the situation and results of accounting audits, decide on necessary measures to prevent violations of systems, rules, and accounting regulations; commend those who perform well, and handle those who make mistakes or violate the cooperative's accounting discipline;

- Examine and decide on the organizational structure of the chief accountant, appoint a chief accountant to submit for approval by the district, town, or ward administrative committee;

Article 17. The Management Board has duties and powers:

- Organize and direct the cooperative's accounting work, develop political and professional training plans for accountants to continuously improve their professional skills and sense of responsibility;

- Set an example in adhering to, while monitoring, urging the chief accountant, accountants, and members to strictly follow accounting systems, regulations, and financial transparency and inspection systems within the cooperative;

- Examine and study solutions to complaints related to accounting work before submitting them to the members' congress for decision;

- Study the organizational structure of accounting to present to the village council or the members' congress for decision;

Article 18. The Supervisory Board has duties and powers:

- Based on requirements, tasks, and principles stipulated for small-scale industrial and handicraft cooperative accounting in this system, conduct regular and irregular inspections of the cooperative's accounting work;

- After inspection, the supervisory board must report to the members' congress or the general assembly on the situation and results of the accounting inspection; simultaneously propose timely measures to strengthen production management, labor management, and financial management within the cooperative, prevent actions that violate regulations and cause damage to members' interests and the cooperative's property, state property;

Article 19. Duties of workshop managers and production team leaders.

- Monitor, assist, and inspect the workshop or production team's accounting in recording, calculating, and accurately, promptly, and completely reflecting their production and business activities, and report on time to the chief accountant;

- Fully implement financial transparency regulations in workshops or teams.

Article 20. Tasks of members.

All cadres and members who use cooperative funds or assets must comply fully with the accounting principles and procedures stipulated herein. In addition, members must understand the requirements and tasks of accounting work, the duties of the chief accountant and accountants, and urge them to fulfill their responsibilities. If there are unclear issues, members have the right to request the chief accountant or accountants to present before the member assembly or to request the supervisory board to conduct an inspection.

Article 21. Rewards and Disciplinary Measures.

Cooperative cadres and members who achieve success in implementing the accounting system and financial management regime, in detecting and preventing corruption and waste, protecting the interests of members, conserving cooperative or state assets, shall be commended or recommended for rewards by administrative committees at various levels. Conversely, if they delay settlement, calculation, record-keeping, or report false information, causing obstacles to cooperative management, they will face disciplinary action before the member assembly.

In cases of serious errors: intentionally making incorrect calculations, record-keeping, or reporting false information, forging documents, concealing or agreeing with acts of corruption and waste, causing damage to member benefits, cooperative assets, or state assets, they may be prosecuted under the law.

This accounting regime is promulgated together with Decision No. 393-QĐ/CĐKT dated September 30, 1968.