Decision No. 48/2006/QĐ-BTC On the Issuance of Accounting Regulations for Small and Medium Enterprises

Pursuant to …;

Regarding the issuance of accounting regulations for small and medium-sized enterprises

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THE MINISTER OF FINANCE

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

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;

Pursuant to Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 90/2001/NĐ-CP dated November 23, 2001 of the Government on assistance for the development of small and medium-sized enterprises.

At the proposal of the Director of the Accounting and Auditing Regulations Department and the Head of the Ministry of Finance's Office,

DECISION:

Article 1. Issuing the "Accounting Regulations for Small and Medium-Sized Enterprises" applicable to all small and medium-sized enterprises across all sectors and economic components throughout the country, including limited liability companies, joint-stock companies, partnerships, private enterprises, and cooperatives. The Accounting Regulations for Small and Medium-Sized Enterprises consist of five parts:

Part One - General Provisions;

Part Two - Accounting Account System;

Part Three - Financial Reporting System;

Part Four - Accounting Voucher System;

Part Five - Accounting Ledger System.

Article 2. Small and medium-sized enterprises shall base themselves on the "Accounting Regulations for Small and Medium-Sized Enterprises" issued pursuant to this Decision, conduct research, specify, and apply accounting regulations, specific provisions regarding the content, methods of applying the list of accounts, vouchers, ledgers, select appropriate ledger forms and financial reports suitable for their production and business characteristics, management requirements in each field of operation, and type of enterprise. In cases where there are modifications or supplements to Level 1 or Level 2 accounts or modifications to financial reports, written agreement from the Ministry of Finance must be obtained.

Article 3. The Accounting Regulations for Small and Medium-Sized Enterprises do not apply to state-owned enterprises, single-member limited liability companies owned by the state, listed joint-stock companies, agricultural cooperatives, and credit cooperatives.

Small and medium-sized enterprises that are subsidiaries shall implement accounting regulations according to the regulations of the parent company.

Small and medium-sized enterprises operating in special fields such as electricity, oil and gas, insurance, securities, etc., may apply special accounting regulations issued by the Ministry of Finance or approved by the relevant industry.

Article 4. Limited liability companies and unlisted joint-stock companies, partnerships, and large-scale private enterprises shall apply the Accounting Regulations for Enterprises issued pursuant to Decision No. 15/2006/QĐ-BTC dated March 20, 2006 of the Minister of Finance. Small and medium-sized enterprises applying the Accounting Regulations for Enterprises issued pursuant to Decision No. 15/2006/QĐ-BTC dated March 20, 2006 must notify the tax authority managing the enterprise and must maintain stability in their application for at least two years. In cases where they revert to applying the Accounting Regulations for Small and Medium-Sized Enterprises, they must notify the tax authority again.

Article 5. This Decision shall take effect fifteen days after its publication in the Official Gazette.

This Decision replaces Decision No. 1177 TC/QĐ/CĐKT dated December 23, 1996 of the Minister of Finance issuing the "Accounting Regulations for Small and Medium-Sized Enterprises" and Decision No. 144/2001/QĐ-BTC dated December 21, 2001 of the Minister of Finance on supplementing and amending the Accounting Regulations for Small and Medium-Sized Enterprises issued pursuant to Decision No. 1177 TC/QĐ/CĐKT.

Small and medium-sized enterprises shall close their accounting books at the end of December 31, 2006, to transfer balances from old accounts to new accounts starting January 1, 2007, according to the accounting regulations issued pursuant to this Decision.

Other accounting regulations not specified in this Decision shall be implemented in accordance with the Accounting Law and 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.

Article 6. Provincial Tax Departments shall cooperate with relevant sectors to assist provincial People's Committees in guiding and inspecting the implementation of the Accounting Regulations for Small and Medium-Sized Enterprises in units under their jurisdiction.

The Director of the Accounting and Auditing Regulations Department, the Director of the General Taxation Department, the Head of the Ministry of Finance's Office, the Director of the Enterprise Finance Department, and the heads of related units are responsible for guiding, inspecting, and enforcing this Decision./.