Circular No. 49/2014/TT-NHNN amending and supplementing certain clauses of the Financial Reporting System for credit institutions issued pursuant to Decision No. 16/2007/QĐ-NHNN dated April 18, 2007, and the Accounting Chart of Accounts for credit institutions issued pursuant to Decision No. 479/2004/QĐ-NHNN dated April 29, 2004, by the Governor of the State Bank of Vietnam.

CIRCULAR

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Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010;

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

Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Director of the Department of Finance and Accounting;

The Governor of the State Bank of Vietnam issues this Circular amending and supplementing certain clauses of the Financial Reporting Regulations for credit institutions issued together with Decision No. 16/2007/QĐ-NHNN dated April 18, 2007 and the Accounting System for credit institutions issued together with Decision No. 479/2004/QĐ-NHNN dated April 29, 2004 of the Governor of the State Bank of Vietnam.

Article 1. Amending and supplementing certain clauses of the Financial Reporting Regulations for credit institutions issued together with Decision No. 16/2007/QĐ-NHNN dated April 18, 2007 of the Governor of the State Bank of Vietnam

Clause 1, Clause 4 of Article 1 shall be amended and supplemented as follows:

"1. These regulations stipulate the contents, methods of preparation, presentation, and other related matters concerning financial reports for credit institutions, foreign bank branches established and operating in accordance with the Law on Credit Institutions, except for people's credit funds and microfinance organizations.

Financial reports of credit institutions (hereinafter referred to as financial reports) are reports prepared in accordance with Vietnamese Accounting Standards, Accounting Regulations, and relevant laws to reflect key economic and financial information of credit institutions. The system of financial reports includes: Balance Sheet, Income Statement, Cash Flow Statement, and Notes to the Financial Statements."

"4. Financial reporting regulations for people's credit funds and microfinance organizations shall be guided by the State Bank of Vietnam (hereinafter referred to as the State Bank) in another document based on the application of the provisions of these financial reporting regulations in accordance with the specific characteristics of the activities of people's credit funds and microfinance organizations."

4. State Bank Branch in Border Province is the State Bank Branch in provinces sharing borders with China, Laos, and Cambodia.

"Article 2. Interpretation of Terms

In this Regulation, the following terms shall be understood as follows:

1. Credit institution includes banks, non-bank credit institutions, and foreign bank branches (hereinafter referred to as credit institutions).

2. Credit institution unit: Refers to units directly under credit institutions, including: Head office/Branch Office (hereinafter collectively referred to as Head Office), Trading Branch during the period before being converted into a branch according to the regulations of the State Bank, branches, and dependent accounting units.

3. Parent company: A credit institution that has one or more subsidiary companies.

4. Subsidiary company: A company falling within one of the cases prescribed in Clause 30, Article 4 of the Law on Credit Institutions.

5. Associated company of a credit institution: A company as prescribed in Clause 29, Article 4 of the Law on Credit Institutions.

6. Credit institution group includes a parent company that is a credit institution and (one or more) subsidiary companies.

7. Financial report of a credit institution: A financial report prepared by a credit institution based on the consolidation of data throughout the entire credit institution system (including: Head Office, Trading Branch, branches, and dependent accounting units) to reflect the economic and financial information of the credit institution.(including: Head Office, Trading Branch, branches, and dependent accounting units)ồto reflect the economic and financial information of the credit institution.ibranch and its affiliated dependent accounting units)to reflect the economic and financial information of the credit institution.

8. Consolidated financial report: A financial report prepared based on the consolidation of the financial report of a credit institution and the financial report(s) of (one or more) subsidiary companies to reflect the economic and financial information of the credit institution group.

9. Comprehensive financial report: A financial report prepared based on the consolidation of data from accounting units within the same type or group of credit institutions operating independently from each other to reflect comprehensive economic and financial information of all member units within the same type or group of credit institutions.

10. Interim audited financial report: An interim financial report of a credit institution, an interim consolidated financial report or an interim comprehensive financial report prepared by a credit institution in the second quarter of the fiscal year and reviewed by an independent auditing organization approved by the credit institution.

11. Electronic report: A report presented in the form of an electronic data file transmitted through a computer network. An electronic report must have the full electronic signature of the legal representative of the credit institution and comply with the designated transmission code, file structure as prescribed by the State Bank."

3. Article 3 is amended and supplemented as follows:

"Article 3. Principles of preparing financial reports

The preparation and presentation of financial reports must comply with the principles prescribed in the Vietnamese Accounting Standards on Presentation of Financial Reports, including: Going concern, accrual basis, consistency, materiality and aggregation, offsetting, comparability, and additional requirements prescribed in the Vietnamese Accounting Standards on Supplementary Presentation of Financial Reports of Banks and Similar Financial Organizations and relevant laws."

4. Point b Clause 1 Article 6 shall be amended and supplemented as follows:

"b) In the case where foreign bank branches comply with the provisions of Clause 5, Article 89 of the Law on Credit Institutions, the lead branch of the foreign bank branches (the branch with a General Manager (Director) authorized by the foreign bank to be responsible for all activities of the foreign bank branches in Vietnam) must consolidate the data of branches operating in Vietnam to prepare a comprehensive financial report in accordance with Section 3, Chapter II of these regulations and bear legal responsibility for the data in the comprehensive financial report."

5. Article 7 is amended and supplemented as follows:

"Article 7. Deadline for submitting financial reports

1. Annual financial report

a) Unaudited annual financial report

- The deadline for submitting the unaudited annual financial report of credit institutions is no later than 45 days from the end of the fiscal year;

- The deadline for submitting the unaudited consolidated annual financial report is no later than 60 days from the end of the fiscal year.

b) Audited annual financial report

The TCTD must submit the audited annual financial report along with the results of the independent audit organization (including: Audit Report; management letter and related documents) no later than 90 days from the end of the TCTD's fiscal year.

2. Interim Financial Reports

a) The deadline for submitting interim financial reports is no later than the first day of the next quarter;

b) Semi-annual financial reports reviewed

In addition to the interim financial reports as stipulated in point a of this Clause, listed companies and large public companies must submit:

- The semi-annual financial report of the TCTD that has been reviewed together with the entire Review Report on the Financial Statements no later than 45 days from the end of the first six months of the fiscal year;

- The consolidated or aggregated semi-annual financial report that has been reviewed together with the entire Review Report and the semi-annual financial report of the TCTD no later than 60 days from the end of the first six months of the fiscal year, in cases where the TCTD is required to prepare a consolidated or aggregated semi-annual financial report.

3. Financial reports with different periods

In cases where the TCTD is required to prepare financial reports according to Article 5, Clause 3 of this Regulation, the TCTD must submit the financial reports in accordance with the guidelines of the State Bank of Vietnam for each specific case.

4. If the last day of the submission deadline for financial reports falls on a holiday, Tet, or weekend, then the submission date for the financial reports will be the next working day immediately following that day.

6. Article 8 is amended and supplemented as follows:

“Article 8. Receiving Office for Financial Reports

7. Article 9 is amended and supplemented as follows:

“Article 9. Preparation and Submission of the Accounting Ledger Balance Sheet

1. The Accounting Ledger Balance Sheet is an accounting report reflecting in detail the financial status and activities of the TCTD and/or its units (Model A01/TCTD).

2. Requirements for preparing the Accounting Ledger Balance Sheet

a) In cases where income and expenses arise from transactions between units within the same system, the TCTD must attach an explanation regarding these incomes and expenses when preparing and submitting the Accounting Ledger Balance Sheet;

b) Specifically, the Accounting Ledger Balance Sheet for December (or the last month of the fiscal year as prescribed by law), TCTDs and their units must prepare and submit the report before finalizing revenues and expenses to determine business results but after processing the balances of foreign exchange rate differences, gold, silver, precious stones, and revaluation differences at the end of the fiscal year according to current regulations;

c) In cases where the TCTD is a parent company: In addition to preparing and submitting the Accounting Ledger Balance Sheet of the TCTD, upon request from state management agencies, it must also submit the Accounting Ledger Balance Sheets of subsidiaries;

d) The Accounting Ledger Balance Sheet must be submitted to the State Bank of Vietnam via electronic reporting.

3. Deadline for Preparing and Submitting the Accounting Ledger Balance Sheet

Monthly, TCTDs and their units must prepare and submit the Accounting Ledger Balance Sheet by the seventh day of the following month.

If the last day of the submission deadline for the Accounting Ledger Balance Sheet is a holiday, Tet, or weekend, then the submission date for the Accounting Ledger Balance Sheet will be the next working day immediately following that day.

4. Procedure for Submitting the Accounting Ledger Balance Sheet to the State Bank of Vietnam shall be carried out in accordance with the procedure for submitting Financial Reports and Accounting Ledger Balance Sheets as stipulated in Article 10 of this Regulation.”

8. Article 10 is amended and supplemented as follows:

“Article 10. Procedure for Submitting Financial Reports and Accounting Ledger Balance Sheets

1. Procedure for submitting Financial Reports and Accounting Ledger Balance Sheets electronically to the State Bank of Vietnam

a) Bank and non-bank TCTD

a.1. The headquarters of TCTD where the State holds more than 50% of the charter capital located in northern provinces, Cooperative Banks(from Thua Thien Hue province northward) must connect to the Information Technology Bureau's information transmission network; TCTDs where the State holds more than 50% of the charter capital located in southern provinces(from Da Nang city southward)ẵ must connect to the Information Technology Sub-bureau's network in Ho Chi Minh City to submit reports: Accounting Ledger Balance Sheet of the headquarters; Accounting Ledger Balance Sheet of the TCTD; Financial Report;a.2. The headquarters of TCTDs not subject to the provisions of point a.1 of this Clause must connect to the provincial or municipal branch of the State Bank of Vietnam (where the headquarters is located)

 to submit reports: Accounting Ledger Balance Sheet of the headquarters; Accounting Ledger Balance Sheet of the TCTD and Financial Report;a.3. Trading Departments, Branches, dependent units of TCTD must connect their computers to the provincial or municipal branch of the State Bank of Vietnam to submit the Accounting Ledger Balance Sheet of the unit TCTD;

b) Foreign bank branchesa.3. Trading Departments, Branches, dependent units of TCTD must connect their computers to the provincial or municipal branch of the State Bank of Vietnamb.1. The main branch of foreign bank branches must connect to the provincial or municipal branch of the State Bank of Vietnam (where the main branch is located)

 to submit reports: Accounting Ledger Balance Sheet of the main branch and Financial Report.

Foreign bank branches with a main branch but not being the main branch must connect their computers to the provincial or municipal branch of the State Bank of Vietnam to submit the Accounting Ledger Balance Sheet of the TCTD and Financial Report.shallb.2. Foreign bank branches not subject to the provisions of point b of Clause 1 of Article 6 of this Regulation must connect to the provincial or municipal branch of the State Bank of Vietnam to submit reports: Accounting Ledger Balance Sheet of the TCTD and Financial Report.

2. Procedure for submitting Financial Reports in writing to the State Bank of Vietnama.3. Trading Departments, Branches, dependent units of TCTD must connect their computers to the provincial or municipal branch of the State Bank of Vietnamto submit the Balance Sheet of the credit institution's accounting and Financial Report.

b.2. Foreign bank branches that are not subject to the provisions of point b Clause 1 Article 6 of this Regulation must connect to the information transmission network of the State Bank of Vietnam branch in the province or centrally governed citya.3. Trading Departments, Branches, dependent units of TCTD must connect their computers to the provincial or municipal branch of the State Bank of Vietnamto submit reports: Balance Sheet of the credit institution's accounting and Financial Report.

2. Procedure for submitting the Financial Report in writing to the State Bank

a) Banking institutions submit unaudited annual financial statements and interim financial statements in writing to the State Bank of Vietnam (Supervisory Authority: one copy for each type);

b) Banking institutions submit audited annual financial statements and the results of independent audits; reviewed semi-annual financial statements (for listed banking institutions and large public companies) and other period financial statements (if any) in writing to the State Bank of Vietnam (Supervisory Authority: two copies for each type, State Bank of Vietnam branch in the province/city where the main office of the banking institution is located: one copy for each type).

3. The submission of financial reports to financial authorities, tax authorities, and statistical authorities shall be carried out in accordance with relevant laws and guidelines provided by those authorities.

4. The process of submitting financial reports within banking institutions shall be guided by the banking institutions themselves.

5. In case the State Bank of Vietnam changes the information transmission system affecting the electronic report submission process stipulated in Clause 1 of this Article, the State Bank of Vietnam shall be responsible for guiding the submission process of financial statements and accounting balance sheets through electronic reports consistent with the changes in the information transmission system.

9. Article 11 shall be amended and supplemented as follows:

Article 11. Responsibilities of Banking Institutions

1. The legal representative of banking institutions is responsible for organizing the preparation and presentation of financial statements and is accountable for the accuracy, completeness, and truthfulness of the information on financial statements and accounting balance sheets of their units.

2. Banking institutions and their units have the responsibility to:

a) Prepare and submit complete and timely financial statements and accounting balance sheets in accordance with the provisions of this Regulation;

b) Sign and affix the seal of the reporting unit on financial statements in writing in accordance with the law;

c) Implement confidentiality when processing and transmitting financial statements and accounting balance sheets through encrypted electronic reports in compliance with current regulations of the State Bank of Vietnam on information and report transmission over networks;

d) Banking institutions and their units receiving inquiries about errors in financial statements and accounting balance sheets from the receiving unit must review and check again, and if there are errors, they must immediately correct them by canceling the erroneous report and resubmitting the correct report to the receiving unit; or if banking institutions and their units discover errors in their own reports, they must promptly correct and resubmit them to the receiving unit.

When resubmitting corrected reports, they must attach an explanation of the errors needing correction (in file format for accounting balance sheets, in written and file format for financial statements) to the receiving unit.

3. The lead branch as specified in point b Clause 1 Article 6 of this Regulation must notify the State Bank of Vietnam (Supervisory Authority) of its authorization as the lead branch.

10. Article 12 is amended and supplemented as follows:

Article 12. Responsibilities of Units under the State Bank of Vietnam

1. State Bank of Vietnam branches in provinces/cities directly under the Central Government

a) Serve as the primary point of contact for receiving electronic financial statements and accounting balance sheets as stipulated in points a.2, a.3, and b Clause 1 Article 10 of this Regulation; verify the mathematical accuracy of the reports; upon discovering errors, promptly notify the reporting unit to correct, resubmit, and continue transmitting to the Department of Information Technology;

b) Serve as the primary point of contact for receiving written financial statements as stipulated in point b Clause 2 Article 10 of this Regulation;

c) Urge banking institutions and their units to submit complete and timely financial statements and accounting balance sheets as stipulated in points a.2, a.3, b Clause 1, and b Clause 2 Article 10 of this Regulation;

d) Utilize data and information from financial statements and accounting balance sheets; manage and store reports in accordance with the law;

đ) Supervise and inspect the implementation of this Regulation and handle violations within their authority.

2. Information Technology Inspection Division

Serve as the primary point of contact for receiving electronic financial statements and accounting balance sheets from banking institutions where the state holds more than 50% of the charter capital located in southern provinces as stipulated in point a.1 Clause 1 Article 10 of this Regulation; verify the mathematical accuracy of the reports; upon discovering errors, promptly notify the reporting unit to correct, resubmit, and continue transmitting to the Department of Information Technology.

3. Department of Information Technology

a) Serve as the primary organizer and receiver of financial statements and accounting balance sheets transmitted via the information transmission network by banking institutions, State Bank of Vietnam branches in provinces/cities directly under the Central Government, and the Information Technology Inspection Division;

b) Verify the mathematical accuracy of electronic reports; upon discovering errors, promptly notify the reporting unit to correct, resubmit, and inform related Departments, Bureaus, and units;

c) Aggregate indicators from reports according to the needs of related Departments, Bureaus, and units within the State Bank of Vietnam;

d) Guide banking institutions, State Bank of Vietnam branches in provinces/cities directly under the Central Government, and related Departments, Bureaus, and units within the State Bank of Vietnam on the transmission, receipt, and utilization of report data over the information transmission network in accordance with regulations;

đ) Ensure smooth, timely, accurate, secure, and confidential information transmission; organize safe and secure storage of report data.

4. Financial - Accounting Department

Is responsible for guiding the implementation of this Regulation.

5. Supervisory Authority

a) Serve as the primary organizer and receiver of written financial statements submitted by banking institutions; share information with related Departments, Bureaus, and units according to their functions and responsibilities;

b) Check the arithmetic accuracy of the financial report in writing; upon discovering errors, promptly notify the reporting entity to correct and resubmit, and inform relevant Departments, Bureaus, and units; organize the secure and confidential storage of data from reports;

c) Urge state-owned commercial banks holding more than 50% of the charter capital, as stipulated in point a.1 Clause 1 Article 10 of this regime, to submit complete and timely financial reports and balance sheets;

d) Inspect and supervise the implementation of this regime and handle violations within their authority;

6. Departments, Bureaus, and related units under the State Bank

Based on functions and tasks prescribed in writing by the Governor of the State Bank, register with the Bureau of Information Technology, the Banking Supervision Authority to access bank reports according to specific needs and be responsible for managing, using, and securing information about reports within their unit in accordance with the law;

11. Article 14 is amended and supplemented as follows:

“Article 14. Publicizing Financial Reports

1. Publicizing Subjects

a) All commercial banks must publicize audited annual financial reports issued by independent auditing organizations;

b) Commercial banks holding more than 50% of the charter capital and listed companies, large public companies must publicize interim financial reports in full form as required by law. Other commercial banks voluntarily publicizing interim financial reports may choose either the full form or summary form of interim financial reports for publicizing;

2. Forms, Contents, and Timeframes for Publicizing Financial Reports

a) Forms of Publicizing

- For annual financial reports: Published on the electronic information website (website) or at the main office and branches of the commercial bank, and published in one national newspaper issue;

- For interim financial reports and semi-annual financial reports: Published on the electronic information website (website) or at the main office and branches of the commercial bank;

Encourage commercial banks to publicize financial reports through various forms such as issuing annual reports and other publicizing methods as prescribed by current laws;

b) Contents of Publicizing

Commercial banks must publicize at least the following contents: Audited financial reports including the Balance Sheet, Income Statement, and audit report for annual financial reports; Balance Sheet and Income Statement for interim financial reports. Parent companies must also publicize consolidated financial report templates;

Encourage commercial banks to fully publicize all financial report templates including: Balance Sheet, Income Statement, Cash Flow Statement, and Notes to the Financial Statements;

c) Timeframes for Publicizing

- The deadline for publicizing annual financial reports is no later than 90 days for listed companies and large public companies, and no later than 120 days for other commercial banks, calculated from the end date of the fiscal year of the commercial bank;

- The deadline for publicizing interim financial reports for listed companies and large public companies is in accordance with securities market information disclosure regulations, and no later than 45 days for other commercial banks, calculated from the end date of the quarter;

d) In addition to publicizing as prescribed in points a, b, and c of this clause, commercial banks that are issuers, public companies, listed companies, and large public companies, and those where the state holds more than 50% of the charter capital must also publicize financial reports in accordance with relevant laws;

3. Commercial banks have the responsibility to respond to inquiries when requested by users of financial reports (state management agencies, shareholders, customers, and other parties) as prescribed by law;

4. Cases affecting the publicizing of financial reports, such as postponing information disclosure, not disclosing part or all of the information on financial reports, or other cases, must be reviewed and decided by the Governor of the State Bank;

5. Within ten working days from the date of publicizing financial reports as prescribed in this regime, commercial banks must send confirmation notices or notifications regarding the publicizing of financial reports to the State Bank (Bank Inspection and Supervision Authority);

12. Article 16 shall be amended and supplemented as follows:

“Article 16. Subjects Preparing Financial Reports

All commercial banks must prepare and present financial reports;

13. Replace the templates A01/TCTD, B02/TCTD, B02/TCTD-HN, B03/TCTD, B03/TCTD-HN, B04/TCTD, B04/TCTD-HN, B05/TCTD, B05/TCTD-HN, B02a/TCTD, B02a/TCTD-HN, B03a/TCTD, B03a/TCTD-HN, B04a/TCTD, B04a/TCTD-HN, B05a/TCTD, B05a/TCTD-HN, B02b/TCTD, B02b/TCTD-HN, B03b/TCTD, B03b/TCTD-HN, B04b/TCTD, B04b/TCTD-HN issued together with Decision No. 16/2007/QĐ-NHNN with new corresponding templates issued together with this Circular;

Article 2. Amend and supplement some contents in the Accounting System of Commercial Banks issued together with Decision No. 479/2004/QĐ-NHNN dated April 29, 2004, of the Governor of the State Bank as follows:

1. Section II - Accounting System (amended in Clause 2 Article 2 of Circular No. 10/2014/TT-NHNN dated March 20, 2014, of the State Bank) is amended and supplemented as follows:

Change the name of Account 8823 - "Provision for reduction in value of securities" to "Costs of risk provisions for securities";

Add Account 3929 - "Other receivable interest from securities";

2. Account 341 - Investment in subsidiary in Vietnamese dong and Account 345 - Investment in subsidiary in foreign currency (amended in Clause 20 Article 2 of Circular No. 10/2014/TT-NHNN dated March 20, 2014, of the State Bank) are amended and supplemented as follows:

“Account 341 - Investment in subsidiary in Vietnamese dong

Account 345 - Investment in subsidiary in foreign currency

This account is used to reflect the current value and changes in direct investment in subsidiaries. Subsidiaries are companies falling under one of the cases stipulated in Clause 30 Article 4 of the Law on Credit Organizations.

Entries on this account must comply with Accounting Standard No. 25 on Consolidated Financial Statements and the following provisions:

1. Investment capital in subsidiaries must be reflected at cost, including the purchase price plus acquisition costs (if any), such as brokerage fees, transaction fees, registration fees, taxes, and bank charges,...

2. Accounting for economic transactions occurring during the business combination process, where the enterprise is identified as the buyer leading to a parent-subsidiary relationship, shall be conducted in accordance with Accounting Standard No. 11 on Business Combinations and the Circular guiding this standard.

3. Accountants must maintain subsidiary ledgers to track each investment in subsidiaries according to par value, actual purchase price of shares, and actual investment costs.

4. All income from subsidiaries (dividend income, operating profits) for the fiscal year must be fully and promptly recorded in the separate financial statements of the parent company. Dividends and profits distributed from subsidiaries are recorded in Account 78 - Income from Capital Contributions and Share Purchases.

5. In cases of contributing capital or investing in subsidiaries using foreign currency, credit institutions must convert it into the accounting currency unit based on the exchange rate published by the State Bank at the time of contribution. Credit institutions are not allowed to revalue contributed capital or share purchases, even in cases of exchange rate differences to increase (decrease) contributed capital.

3. Account 343 - Investment in Associated Companies in Vietnamese Currency and Account 347 - Investment in Associated Companies in Foreign Currency (amended by Clause 20, Article 2 of Circular No. 10/2014/TT-NHNN dated March 20, 2014 of the State Bank) are amended and supplemented as follows:

“Account 343 - Investment in Associated Companies in Vietnamese Currency

Account 347 - Investment in Associated Companies in Foreign Currency

This account is used to reflect the value of direct investments made by investors in associated companies and changes in the value of these investments. An associated company of a credit institution is defined as per Clause 29, Article 4 of the Law on Credit Institutions.

Entries into this account must comply with the following provisions:

1. Accounting for investments in associated companies when preparing and presenting separate financial statements of the investor is done using the cost method. Under the cost method, the value of the investment does not change throughout the investment period, except in cases where the investor buys additional shares or liquidates the entire or part of the investment, or receives benefits other than profit distributions.

2. The cost of the investment is determined as follows:

- The cost of the investment in an associated company includes the contributed capital or the actual purchase price of the investment plus acquisition costs such as brokerage fees, transaction fees, taxes, and fees (if any).

- In cases of contributing capital to an associated company using fixed assets, materials, or goods, the cost of the investment is recorded based on the agreed valuation by all parties involved. The difference between the recorded value and the revalued value is handled as follows:

+ Any excess of the revalued value over the recorded value or remaining value of the fixed asset is recognized as other income.

+ Any shortfall of the revalued value over the recorded value or remaining value of the fixed asset is recognized as other expenses.

3. Accountants must maintain detailed accounting ledgers to track the value of each investment in associated companies. The basis for recording the value of investments in associated companies is as follows:

- For investments in listed joint-stock companies, the recording is based on the actual payment amount for purchasing shares, including related transaction costs, and the official announcement by the securities trading center regarding the ownership of shares in the associated company.

- For investments in unlisted joint-stock companies, the recording is based on the confirmation of share ownership and the receipt of payment for selling shares issued by the invested company or the purchase documentation.

- For investments in other types of enterprises, the recording is based on the minutes of capital contributions, profit (or loss) distribution agreements among parties or the purchase and sale documentation.

- Investors can only recognize dividends and profits distributed from associated companies upon receiving an official notification from the associated company regarding the dividend or profit distribution for the period.

4. In cases of contributing capital to associated companies using foreign currency, credit institutions must convert it into the accounting currency unit based on the exchange rate published by the State Bank at the time of contribution. Credit institutions are not allowed to revalue contributed capital, even in cases of exchange rate differences to increase or decrease contributed capital.

4. Account 3599 - Provision for Doubtful Debts (amended and supplemented by Clause 22, Article 2 of Circular No. 10/2014/TT-NHNN dated March 20, 2014 of the State Bank) is amended and supplemented as follows:

“Account 3599 - Provision for Doubtful Debts

This account is used to record the establishment, handling, and reversal of provisions for doubtful debts in accordance with the law for receivables that are not classified as impaired credit assets.

5. Supplementing Account 392 - Interest Receivable from Securities Investment at the third level with:

Account 3929 - Other Interest Receivable from Securities.

Article 3. Effectiveness

This Circular takes effect from February 15, 2015.

Article 4. Implementation Organization

The Director of the Office, the Head of the Financial-Accounting Department, the Heads of relevant units under the State Bank, the Governors of the State Bank Branches in provinces and centrally-administered cities, the Chairmen of the Board of Directors, the Chairmen of the Board of Members, and the General Directors (Directors) of Credit Institutions shall be responsible for implementing this Circular./.