Decision No. 56/2006/QD-NHNN on amending, supplementing, and abolishing certain accounts in the Accounting System of the State Bank of Vietnam issued pursuant to Decision No. 425/1998/QD-NHNN dated December 17, 1998, Decision No. 162/2002/QD-NHNN dated March 6, 2002, Decision No. 961/2002/QD-NHNN dated September 9, 2002, Decision No. 1579/2003/QD-NHNN dated December 1, 2003, and Decision No. 1638/2003/QD-NHNN dated December 26, 2003 of the Governor of the State Bank of Vietnam.

Pursuant to …;

Regarding the amendment, supplementation, and cancellation of certain accounts inThe Accounting Account System of the State Bank

issuedpursuant to Decision No. 425/1998/QĐ-NHNN2 dated December 17, 1998,Decision No. 162/2002/QĐ-NHNN

dated March 6, 2002, Decision No.961/2002/QĐ-NHNN dated September 9, 2002, Decision No. 1579/2003/QĐ-NHNNdated December 1, 2003,

Decision No. 1638/2003/QĐ-NHNN dated December 26, 2003of the Governor of the State Bank of Vietnam

_______________________________

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;

Pursuant to the Accounting Law 2003;

Pursuant to Decree No. 52/2003/ND-CP dated May 19, 2003, issued by the Government, detailing the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

With the approval for amending and supplementing the Accounting Account System of the State Bank in Circular No. 14592/BTC-CĐKT dated November 21, 2006 of the Ministry of Finance;

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

DECISION:

Article 1. Cancel certain accounts in the Accounting Account System of the State Bank issued together with Decision No. 425/1998/QĐ-NHNN2 dated December 17, 1998 and subsequent Decisions amending and supplementing this system by the Governor of the State Bank as follows:

1. Account 2072 - Foreign currency conversion for settlement with foreign credit institutions.

2. Subsidiary accounts under Account 211 - Investment in foreign securities.

- Account 2111 "Government Securities"

- Account 2112 "Central Bank Securities"

- Account 2113 "Commercial Bank Securities"

- Account 2119 "Securities of other International Organizations"

3. Subsidiary accounts under Account 212 - Accumulated interest on foreign securities.

- Account 2121 "Government Securities"

- Account 2122 "Central Bank Securities"

- Account 2123 "Commercial Bank Securities"

- Account 2129 "Securities of other International Organizations"

4. Account 214 - Special Drawing Rights at the IMF

5. Account 215 - Accumulated interest on special drawing rights at the IMF

6. Account 311 - Labor tools in use

7. Account 312 - Value of labor tools in use recorded in expenses

8. Account 467 - Operational expenses

9. Account 489 - Foreign currency conversion for domestic settlement

10. Account 972 - Use of supplied funds for designated purposes and its subsidiary accounts

11. Account 991 - Precious metals and gems held in custody

12. Account 992 - Other assets held in custody

13. Account 993 - Leased assets

Article 2. Amend and supplement general provisions and accounting content of certain accounts in the Accounting Account System of the State Bank as follows:

1. Amend Clause 3, Part I "General Provisions," paragraph "Detailed Accounts... within consolidated accounts" as follows:

Detailed accounts (sub-accounts) are used to monitor and reflect in detail the objects of accounting in consolidated accounts. The opening of detailed accounts is regulated in the content of accounting for each account. In addition, units of the State Bank may open additional detailed accounts according to business management requirements when necessary.

The account number of detailed accounts consists of two parts:

- The first part: The account number of the consolidated account and the currency symbol, consisting of six digits;

- The second part: The serial number of the detailed account and the parameters for managing business statistics within the consolidated account.

2. Amend Clause 6, Part I "General Provisions," paragraph "Concept... uniformly applied as follows" as follows:

The concepts of "domestic" and "foreign" defined in this Accounting Account System of the State Bank shall be understood according to the concepts of "resident" and "non-resident" as stipulated in the Foreign Exchange Ordinance No. 28/2005/PL-UBTVQH11 dated December 13, 2005.

3. Amend Clause 7, Part I "General Provisions" as follows:

The use of loss reserve accounts must comply with regulations and can only be used for loss handling upon the decision of the Governor of the State Bank.

4. Amend the accounting content of Account 211 "Investment in foreign securities" as follows:

This account is opened only at the State Bank of Vietnam (Trading Center) to reflect the current value and changes in various types of foreign securities issued by the State Bank that have been invested.

The accounting for this account must be carried out according to the following regulations:

a) Open detailed accounts to reflect the face value, discount value, and premium value of the securities invested. Simultaneously, maintain a detailed record of each type of security purchased according to each counterparty, face value, interest rate type, term... of the securities.

Among which;

(i) The original value of the securities (actual purchase price) includes: Purchase price plus (+) direct related costs such as brokerage fees, transaction fees, information provision fees, taxes, fees, and bank charges (if any).

(ii) Discount value is the negative difference between the original value and the total value of amounts including face value plus (+) accumulated interest before purchase (if applicable, for post-interest payment debt securities) or minus (-) accrued interest received in advance awaiting allocation (if applicable, for pre-interest payment debt securities).

Accrued interest received in advance (applicable to securities issued by organizations through discount method): is the portion of interest paid by the issuing organization to the State Bank based on the investment period, face value, and interest rate of the securities.

(iii) Premium value is the positive difference between the original value and the total value of amounts including face value plus (+) accumulated interest before purchase (if applicable, for post-interest payment debt securities) or minus (-) accrued interest received in advance awaiting allocation (if applicable, for pre-interest payment debt securities).

- Face Value Account of Invested Securities:

Debit side records: - Face value of invested securities;

Credit side records: - Settlement of face value of sold securities or when they mature and are settled by the issuer;

Debit balance: - Total face value of securities currently invested and owned by the State Bank.

- Discount Account of Invested Securities:

Debit side records: - Allocation of discount value of invested securities during the period;

- Settlement of discount value of securities (if any) when sold early;

Credit side records: - Discount value of invested securities;

Credit balance: - Total discount value of securities currently invested and owned by the State Bank.

- Premium Account of Invested Securities:

Debit side records: - Premium value of invested securities;

Credit side records: - Allocation of premium value of invested securities during the period;

- Settlement of premium value of securities (if any) when sold early;

Debit balance: - Total premium value of securities currently invested and owned by the State Bank.

- When preparing the balance sheet, investment securities shall be presented at net carrying value = Face value of securities (-) Discount value (+) Premium value.

b) Where technological conditions permit, interest income shall be recognized on the basis of time and actual interest rate (the actual interest rate is the rate used to convert future cash flows received during the period when the asset is used by another party into the initial recorded value at the time of transferring the asset). In cases where it is not possible to calculate interest based on the actual interest rate, the premium or discount value shall be allocated evenly over the holding period of the securities by the State Bank. The discount amount increases interest income from investment securities; the premium amount decreases interest income from investment securities.

- If interest income from investment securities includes accrued interest prior to the State Bank's acquisition of such investment, the State Bank must allocate this interest income. Accordingly, only the portion of interest earned after the State Bank acquired the securities shall be recognized as interest income, while the accrued interest prior to the State Bank's acquisition shall reduce the carrying value of the investment itself.

c) For third-level accounts under account 211 "Investment in foreign securities," two scenarios need to be distinguished:

- Securities held for sale: These are debt securities purchased by the State Bank with the intention of long-term investment and ready for sale, without the intention to hold until maturity. At the end of the accounting period, if the market value of securities held for sale is lower than the book value, provisions for impairment of securities shall be established.

- Securities held to maturity: These are debt securities purchased by the State Bank with the intention of long-term investment and held until maturity. At the end of the accounting period, if the value of securities held to maturity is lower than the book value due to objective reasons with long-term impact, provisions for impairment of securities shall be established.

d) When the State Bank sells or transfers securities held for sale, the difference between the actual proceeds received and the book value of the securities shall be recorded in the account for income/expenses from buying and selling securities.

5. Amend the accounting entries and structure of account 235 "Use of Foreign Exchange Reserves pursuant to Government Orders" as follows:

This account is opened at the State Bank of Vietnam (Accounting Department - Finance) to reflect the value in Vietnamese dong of foreign currencies and gold from the foreign exchange reserves that have been used pursuant to Government orders, converted according to the selling rate implemented by the State Bank Trading Department at the time of recording. Any negative (positive) difference between the rate on the date of use pursuant to Government orders and the date of refund shall be recorded in the appropriate income/expenses account.

Debit side records: - The corresponding Vietnamese dong value of foreign currency or gold used pursuant to Government orders;

Credit side records: - Recovery of foreign exchange reserves in Vietnamese dong equivalent to the value of foreign currency or gold used pursuant to Government orders at the time of recovery;

Debit balance: - Reflect the Vietnamese dong value equivalent to the value of foreign currency or gold from the foreign exchange reserves used pursuant to Government orders that have not yet been recovered.

6. Rename account 824 "Expenditure on Awards and Welfare" to "Expenditure on Awards, Welfare, and Supplementary Income under Contractual Mechanism"

7. Rename account 9089 "Counterfeit Money, Fake Money, Damaged Money Awaiting Disposal" to "Suspected Counterfeit Money, Fake Money, Suspected Damaged Money Awaiting Disposal"

8. Amend the accounting entries and structure of account 973 "Use of Foreign Exchange Reserves pursuant to Government Orders" as follows:

This account is only opened at the State Bank of Vietnam (Trading Department) to reflect the value of foreign currencies and gold from the foreign exchange reserves that have been used pursuant to Government orders.

Debit side records: - The value of foreign currency or gold from the foreign exchange reserves used pursuant to Government orders;

Credit side records: - Recovery of the value of foreign currency or gold from the foreign exchange reserves used pursuant to Government orders;

Debit balance: - Reflect the value of foreign currency or gold from the foreign exchange reserves used pursuant to Government orders that have not yet been recovered.

9. Amend the accounting entries for off-balance-sheet accounts as follows:

- Replace all instances of "Input" with "Debit."

- Replace all instances of "Output" with "Credit."

- Replace all instances of "Remaining Amount" with "Debit Balance."

Article 3. Add certain accounts to the Accounting System of the State Bank as follows:

1. Account 1014 "Damaged Currency in the Issue Reserve Fund"

This account is used to reflect damaged currency in the Issue Reserve Fund.

Debit side records: - Damaged currency transferred from the Issue Operations Fund, from other currency warehouses;

Credit side records: - Damaged currency transferred to other currency warehouses according to orders;

- Damaged currency dispatched for destruction;

Debit balance: - Reflect the amount of damaged currency in the Issue Reserve Fund currently stored in the State Bank's currency warehouse.

Detailed entries: Open detailed accounts according to each type of currency (paper money, polymer money, metallic money).

2. Account 1024 "Damaged Currency in the Issue Operations Fund"

This account is only opened at the Trading Department and Branches of the State Bank in provinces and cities to record the amount of damaged currency in the Issue Operations Fund.

Debit side records: - Reflect the amount of damaged currency collected by the State Bank;

Credit side records: - Reflect the transfer of damaged currency from the Issue Operations Fund to the Issue Reserve Fund;

Debit balance: - Reflect the amount of damaged currency in the Issue Operations Fund currently stored in the State Bank's currency warehouse.

Detailed entries: Open detailed accounts according to each type of currency (paper money, polymer money, metallic money).

3. Third-level accounts under account 211 "Investment in Foreign Securities"

a) Accounts reflecting securities held for sale:

- Account 2111 - Government Securities Held for Sale

- Account 2112 - Central Bank Securities Held for Sale

- Account 2113 - Commercial Bank Securities Held for Sale

- Account 2114 - Other International Organization Securities Held for Sale

These accounts are used to reflect the current value and changes in various types of securities issued by governments or foreign organizations that the State Bank invests in and is ready to sell (without the intention to hold until maturity).

b) Accounts reflecting investment securities held to maturity

- Account 2115 - Investment securities held to maturity issued by Governments

- Account 2116 - Investment securities held to maturity issued by Central Banks

- Account 2117 - Investment securities held to maturity issued by Commercial Banks

- Account 2118 - Investment securities held to maturity issued by other international organizations

These accounts are used to reflect the current value and changes in the situation of Debt Securities issued by foreign Governments or organizations that the State Bank of Vietnam invests in with a strategy to hold until maturity (the date of payment).

The State Bank's Trading Department must have operational regulations to classify securities as either readily saleable investment securities or investment securities held to maturity.

4. Sub-account level 3 under Account 212 "Accumulated interest on foreign securities"

- Account 2121 - Accumulated interest on readily saleable securities issued by Governments

- Account 2122 - Accumulated interest on readily saleable securities issued by Central Banks

- Account 2123 - Accumulated interest on readily saleable securities issued by Commercial Banks

- Account 2124 - Accumulated interest on readily saleable securities issued by International Organizations

- Account 2125 - Accumulated interest on investment securities held to maturity issued by Governments

- Account 2126 - Accumulated interest on investment securities held to maturity issued by Central Banks

- Account 2127 - Accumulated interest on investment securities held to maturity issued by Commercial Banks

- Account 2128 - Accumulated interest on investment securities held to maturity issued by International Organizations

Recording these accounts must be carried out according to the following provisions:

The recording of accumulated interest (accrual basis) on securities does not depend on whether the State Bank has received the money or not, but income from interest is recorded immediately when the interest accrues (on a prepayment basis). As most debt securities' interest is received every six months or once a year, the interest is created in parts over each period, so it needs to be recorded on an accrual basis rather than recorded all at once, to ensure that financial reports accurately reflect the State Bank's income during a specific accounting period corresponding to the costs of the income generated.

Debit side records: - The amount of accrued interest (State Bank's estimated interest);

Credit side records: - The amount of interest paid by the security issuer (Government, Commercial Bank...);

Debit balance: - Reflecting the amount of accrued interest on securities that the State Bank has not yet been paid.

Detailed entries: Open detailed accounts for each type of security.

5. Account 247 "Overnight Loans"

This account is used to reflect overnight loans made by the State Bank to credit institutions. This account includes the following sub-accounts:

- Account 2471 - Overnight loans in the domestic market

- Account 2472 - Overnight loans in the foreign market

Debit side records: - The amount of overnight loans;

Credit side records: - The amount of overnight loans repaid;

Debit balance: - The remaining amount of overnight loans.

Detailed entries: Open detailed accounts for each credit institution or borrower.

6. Account 3651 "Printing and Minting Costs Awaiting Allocation"

This account is opened at the Accounting and Finance Department to reflect printing and minting costs awaiting allocation by the State Bank. Printing and minting costs of the State Bank are not immediately recorded as expenses but are gradually allocated to expenses in accordance with the quantity of newly printed currency put into circulation.

Debit side records: - Printing and minting costs awaiting allocation;

Credit side records: - Printing and minting costs allocated to expenses in the period;

Debit balance: - Reflecting the remaining printing and minting costs awaiting allocation.

Detailed entries: Open detailed accounts to track printing and minting costs for each type of currency.

7. Account 3656 "Option Purchase Fees"

This account is used to record option purchase fees.

Debit side records: - Option purchase fees incurred;

Credit side records: - Option purchase fees offset against interest upon exercising the option or recorded as expenses if the option is not exercised;

Debit balance: - Total option purchase fees for outstanding option contracts.

Detailed entries: Open a detailed account.

8. Account 3659 "Other Expenses Awaiting Allocation"

This account is used to reflect large expenses that cannot be fully recorded as expenses in the current fiscal year but must be gradually allocated over several years to align with the degree of expense usage and annual financial plans.

Debit side records: - Expenses incurred awaiting allocation;

Credit side records: - Amount allocated to expenses in the period;

Debit balance: - Reflecting remaining expenses awaiting allocation.

Detailed entries: Open detailed accounts for each expense awaiting allocation.

9. Account 368 "Interest Receivable from Derivative Financial Instruments"

This account is used to reflect interest receivable arising from revaluation of derivative financial instruments in which the State Bank participates.

This account includes the following sub-accounts:

3681 - Interest receivable from foreign exchange swap transactions

3682 - Interest receivable from forward foreign exchange transactions

3689 - Interest receivable from other derivative financial instrument transactions

Content of Account 368:

Debit side records: - Increase in interest receivable from derivative financial instruments;

Credit side records: - Decrease in interest receivable from derivative financial instruments;

Debit balance: - Reflecting the total amount of interest receivable arising from derivative financial instruments that have not yet been realized.

Detailed entries: Open detailed accounts for each type of derivative financial instrument.

10. Account 37 "Expenditure on Public Services and Programs"

This account includes the following sub-accounts:

371 - Expenditure on Public Services

372 - Expenditure on Programs and Projects

- Account 371 - Expenditure on Public Services

This account is used to reflect regular and irregular expenditures according to approved budgets.

Debit side records: - Expenditures incurred by the unit;

Credit side records: - Amounts allowed to reduce expenditures and unapproved expenditures that must be recovered.

- Carry forward the expenditure on activities with funding sources as reported in the approved final accounts;

Debit balance: - Expenditures on activities that have not been settled or whose settlement has not been approved.

Detailed entries: Open detailed accounts according to years (previous year, current year, next year) and the nature of funding sources (regular, aid...).

- Account 372 - Program and project expenditures

This account is used to reflect expenditures for programs and projects approved by the Governor of the State Bank using foreign aid funds. Account 372 is opened to track cumulative project expenditures from the start of the program/project until its completion and final settlement and handover for use.

This account includes the following third-level sub-accounts:

3721 - Project management expenses

3722 - Project implementation expenses

Debit side records: - Actual expenses incurred for managing and implementing programs and projects;

Credit side records: - Expenses that need to be recovered due to incorrect settlements;

- Program and project expenditures settled with project funding sources;

Debit balance: - Uncompleted program and project expenditures or completed but not yet approved settlements.

Detailed entries: Open detailed accounts according to years (previous year, current year, next year).

11. Supplement the accounting content of Account 401 "Funds for Issuance"

Supplement Debit Side: - Funds discovered missing during counting for newly printed, minted, or received sealed from production units without circulation;

- Write off damaged funds and lost funds during circulation (determined when currency circulation is suspended) upon order;

Supplement Credit Side: - Funds discovered excess during counting for newly printed, minted, or received sealed from production units without circulation;

Detailed entries: Open detailed accounts according to types of currency and denominations.

12. Account 464 "Interest Payable on Derivative Financial Instruments"

This account is used to reflect interest payable arising from revaluation of derivative financial instruments in which the State Bank participates.

This account includes the following third-level sub-accounts:

4641 - Interest Payable from Currency Swap Transactions

4642 - Interest Payable from Forward Currency Transactions

4649 - Interest Payable from Other Derivative Financial Instrument Transactions.

Content of Accounting for Account 464:

Debit side records: - Decrease in interest payable on derivative financial instruments;

Credit side records: - Increase in interest payable on derivative financial instruments;

Credit balance: - Reflect the total accrued interest payable remaining from derivative financial instruments at the end of the accounting period.

Detailed entries: Open detailed accounts for each type of derivative financial instrument.

13. Supplement Account 465 "Unallocated Revenue"

This account is used to reflect unallocated revenue (not yet realized) of the State Bank during the accounting period. Unallocated revenue includes: advance interest received before purchasing debt securities (bonds, bills, promissory notes...) and other revenues with similar characteristics and content.

Debit side records: - Amounts of unallocated revenue transferred to income accounts within the accounting period;

Credit side records: - Amounts of new unallocated revenue recognized during the accounting period;

Credit balance: - Reflect the total unallocated revenue remaining at the end of the accounting period.

Detailed entries: Open detailed accounts according to each type of unallocated revenue.

14. Account 47 "Liabilities Related to Public Services and Programs/Projects"

This account includes the following sub-accounts:

471 - Funding Sources for Public Services

472 - Funding Sources for Programs/Projects

473 - Funding Sources Forming Fixed Assets

474 - Receipts Not Through Budget

- Account 471 - Funding Sources for Public Services

This account is used to reflect the receipt, use, and settlement of funding sources for public services of State Bank units.

Debit side records: - Funding sources for public services returned to the State Budget or higher authorities;

- Carry forward expenditures on aid already approved and settled with public service funding sources;

- Allowable reductions in funding sources for public services;

Credit side records: - Funding sources received from the State Budget or higher authorities;

- Carry forward temporarily advanced funding sources as public service funding sources;

Credit balance: - Advance funding sources allocated for the next year (if any);

- Remaining public service funding sources or expended but not yet settled.

Detailed entries: Open detailed accounts according to years (previous year, current year, next year) and the nature of funding sources (regular, special activities...).

- Account 472 - Funding Sources for Programs/Projects

This account is used to reflect the receipt, use, and settlement of funding sources for programs/projects provided by the State Budget or guaranteed by foreign donors as stipulated in agreements between the State Bank of Vietnam and foreign donors.

Debit side records: - Unused project funding sources returned to donors or the State Budget;

- Allowable expenditures reducing funding sources for programs/projects;

- Carry forward expenditures of programs/projects settled with funding sources for each program/project;

- Higher authority units carry forward project funding sources allocated during the period to subordinate units;

Credit side records: - Project funding sources actually received during the period;

- When Treasury settles temporary advances, transfer the amount received as project funding sources;

Credit balance: - Unused or expended project funding sources but not yet settled.

Detailed entries: Open detailed accounts to track funding sources from previous years and current year, in cases where programs/projects span multiple years and during the review of final accounts.

- Account 473 - Funding Sources Forming Fixed Assets

This account is used to reflect the existing amounts and changes in funding sources forming fixed assets of units, including funding sources forming tangible and intangible fixed assets.

Debit side records: Reductions in funding sources forming fixed assets due to:

- Depreciation value of fixed assets during the period

- Remaining value of fixed assets liquidated, transferred, or handed over according to authorized decisions and other reduction cases...

- Reduction in funding sources forming fixed assets (remaining value) due to revaluation (reduction cases);

Credit side records: Increases in funding sources forming fixed assets due to:

- Value of fixed assets purchased, constructed, completed, and put into use;

- Value of fixed assets received from other units' transfers, gifts, and aid and other increase cases;

- Increase the source of funds that have formed fixed assets (remaining value) due to revaluation (in case of increase);

Credit balance: - Reflect the total remaining funds that have formed fixed assets.

Detailed entries: Open detailed accounts according to each type of public service activity, each program, and each project.

- Account 474 - Unrecorded Revenue

This account is used to reflect amounts and goods from non-repayable aid received but not yet recorded in the state budget revenue and expenditure vouchers.

Debit side records: - Record reduction in unrecorded revenue, record increase in related sources of funds when there are vouchers for recording state budget revenue and expenditure;

Credit side records: - Amounts and goods from non-repayable aid received but the unit has not yet obtained vouchers for recording state budget revenue and expenditure;

Credit balance: - Reflect amounts and goods from non-repayable aid received and required to be paid into the state budget but not yet retained for spending and not yet recorded in state budget revenue and expenditure vouchers, which have not been transferred to increase sources of funds.

Detailed entries: Open detailed accounts according to each program and each project.

15. Supplement the accounting content of Account 4832 "Purchase and Settlement of Foreign Exchange under the Exchange Rate Stabilization Fund and Gold Price Fund" as follows:

Supplement Debit Side: - Transfer the difference due to sales volume of foreign exchange under the Exchange Rate Stabilization Fund and Gold Price Fund calculated at the actual selling rate being higher than the sales volume calculated at the average buying rate during the period to income from purchase and sale of foreign exchange or income from purchase and sale of gold;

Supplement Credit Side: - Transfer the difference due to sales volume of foreign exchange under the Exchange Rate Stabilization Fund and Gold Price Fund calculated at the actual selling rate being lower than the sales volume calculated at the average buying rate during the period to expenses for purchase and sale of foreign exchange or expenses for purchase and sale of gold;

16. Account 486 "Currency Swap Transactions"

This account is used to reflect the value of foreign currency to be purchased or sold upon maturity according to swap agreements signed between the State Bank and customers to buy or sell foreign currency at agreed exchange rates.

Account 486 includes the following third-level accounts:

4861 - Currency Swap Transaction Commitments

4862 - Value of Currency Swap Transactions

- Account 4861 - Currency Swap Transaction Commitments

This account is used to reflect the value of foreign currency to be purchased or sold upon maturity according to currency swap transaction commitments signed between the State Bank and customers within the transaction period of the agreement.

Debit side records: - The value of foreign currency the State Bank commits to sell upon maturity;

- Settle the value of foreign currency committed to purchase on the settlement date;

Credit side records: - The value of foreign currency the State Bank commits to buy upon maturity;

- Settle the value of foreign currency committed to sell on the settlement date;

Credit balance: - Reflect the total difference where the State Bank will purchase more foreign currency than it will sell according to outstanding currency swap contracts;

Debit balance: - Reflect the total difference where the State Bank will sell more foreign currency than it will purchase according to outstanding currency swap contracts.

Detailed entries: Open detailed accounts according to each type of foreign currency.

- Account 4862 - Value of Currency Swap Transactions

This account is used to record the amount of Vietnamese dong to be spent to purchase foreign currency or to be received from selling foreign currency corresponding to the value of foreign currency purchased or sold under Account 4861 - Currency Swap Transaction Commitments.

Debit side records: - The amount of Vietnamese dong to be spent to purchase foreign currency (calculated based on the actual buying rate on the start date of the contract);

- The amount of Vietnamese dong received from settling the value of foreign currency committed to sell on the settlement date;

- Transfer the increase in the value of swapped foreign currency when revalued according to the end-of-month exchange rate or adjust the debit balance to match the balance of Account 4861 when revaluing this balance (counterpart to Account 633 - Revaluation Gain/Loss of Vietnamese Dong of Derivative Financial Instruments);

Credit side records: - The amount of Vietnamese dong to be received from selling foreign currency (calculated based on the selling rate on the start date of the contract);

- The amount of Vietnamese dong spent to settle the value of foreign currency committed to purchase on the settlement date;

- Adjust the debit balance to match the balance of Account 4861 when revaluing this balance (counterpart to Account 633 - Revaluation Gain/Loss of Vietnamese Dong of Derivative Financial Instruments);

Credit balance: - Reflect the total amount of Vietnamese dong to be received from selling foreign currency according to outstanding currency swap contracts;

Debit balance: - Reflect the total amount of Vietnamese dong to be spent to purchase foreign currency according to outstanding currency swap contracts;

Detailed entries: Open detailed accounts according to each type of foreign currency.

17. Account 487 "Forward Foreign Exchange Transactions"

This account is used to reflect the value of foreign currency to be purchased or sold upon maturity according to forward foreign exchange purchase/sale contracts signed between the State Bank and customers at agreed exchange rates.

Account 487 includes the following third-level accounts:

4871 - Forward Foreign Exchange Transaction Commitments

4872 - Value of Forward Foreign Exchange Transactions

The accounting content of Account 487 is similar to the accounting content of Account 486.

18. Account 488 "Settlement of Derivative Financial Instruments in Foreign Currency"

This account includes the following sub-accounts:

4881 - Settlement of Currency Swap Transactions

4882 - Settlement of Forward Foreign Exchange Transactions

- Account 4881 - Settlement of Currency Swap Transactions

This account is used to reflect amounts receivable or payable in foreign currency (foreign currency, gold, Vietnamese dong) within the agreed period between the State Bank and customers according to signed currency swap transaction commitments between both parties.

Debit side records: - The value of foreign currency committed to be received by the State Bank;

- The value of foreign currency committed to be paid to customers;

Credit side records: - The value of foreign currency committed to be paid by the State Bank;

- The value of foreign currency committed to be paid by customers;

Credit balance: - Reflect the value of foreign currency the State Bank still needs to pay to customers;

Debit balance: - Reflect the value of foreign currency the State Bank still needs to collect from customers;

Detailed entries: Open detailed accounts according to each type of currency and each counterparty commitment.

- Account 4882 - Settlement of Forward Foreign Exchange Transactions

This account is used to reflect amounts receivable or payable in foreign currency within the agreed period between the State Bank and customers according to signed forward foreign exchange transaction commitments between both parties.

The accounting content of this account is similar to the accounting content of Account 4881.

19. Add Account 623 "Reward and Welfare Fund and Income Stability Reserve Fund" and its third-level sub-accounts as follows:

- Account 6231 "Reward and Welfare Fund"

- Account 6232 "Income Stability Reserve Fund"

Account 623 "Reward and Welfare Fund and Income Stability Reserve Fund" is used to reflect the establishment and utilization of the Funds of the State Bank according to the financial system regulations of the State Bank.

Debit side records: - Expenditures from the Funds;

Credit side records: - Amounts established for the Funds as stipulated by the financial system;

Credit balance: - Remaining amounts of the Funds that have not been utilized;

20. Add the following third-level sub-accounts under Account 631 "Foreign Exchange Rate Differential":

- Account 6311 "Differential due to revaluation of foreign currency reserve fund balances in Vietnamese Dong at the reporting date"

- Account 6312 "Differential due to revaluation of foreign currency balances in Vietnamese Dong of the exchange rate stabilization and gold price fund at the reporting date"

- Account 6313 "Differential due to revaluation of foreign currency balances in Vietnamese Dong of all foreign currency accounts at the reporting date"

Account 6311 - Differential due to revaluation of foreign currency reserve fund balances in Vietnamese Dong at the reporting date

This account is used to revalue the foreign currency balances in Vietnamese Dong belonging to the foreign currency reserve fund.

Debit side records: - Decreases in differential due to revaluation of foreign currency balances in Vietnamese Dong belonging to the foreign currency reserve fund;

- Transfer end-of-year credit balance (if any) to appropriate accounts;

Credit side records: - Increases in differential due to revaluation of foreign currency balances in Vietnamese Dong belonging to the foreign currency reserve fund;

- Transfer end-of-year debit balance (if any) to appropriate accounts;

Credit or debit balance:

- Reflects the unprocessed credit or debit differentials of the foreign currency reserve fund arising during the year;

Detailed entries: Open a detailed account.

- Account 6312 - Differential due to revaluation of foreign currency balances in Vietnamese Dong of the exchange rate stabilization and gold price fund at the reporting date

This account is used to revalue the foreign currency balances in Vietnamese Dong belonging to the exchange rate stabilization and gold price fund.

The accounting entries for this account are similar to those for Account 6311 "Differential due to revaluation of foreign currency reserve fund balances in Vietnamese Dong at the reporting date."

RemarksAt year-end, the balances of Accounts 6311 and 6312 shall be processed according to the financial mechanism prescribed by the Governor of the State Bank after obtaining approval from the Ministry of Finance.

- Account 6313 - Differential due to revaluation of foreign currency balances in Vietnamese Dong of all foreign currency accounts at the reporting date

This account is used to record differentials arising from the revaluation of all foreign currency account balances of the State Bank (including Accounts 4811 and 4831). - Decreases in differential due to revaluation of foreign currency balances of all foreign currency accounts at the end-of-month exchange rate;

Debit side records: - Increases in differential due to revaluation of foreign currency balances of all foreign currency accounts at the end-of-month exchange rate;

Credit side records: - Reflects the unprocessed credit or debit foreign exchange rate differentials arising from the revaluation of foreign currency balances of all foreign currency accounts during the year.

Credit or debit balance:

After revaluing all foreign currency account balances in Vietnamese Dong, this account typically has no balance because increases in adjustments due to revaluation are offset by decreases in adjustments due to revaluation, except in special cases where the State Bank has non-monetary items (under construction fixed assets purchased with foreign currency, etc.) which are accumulated on the Balance Sheet.

At year-end, the balances of Account 6313 shall be processed according to the provisions of Accounting Standard No. 10 "Impact of Changes in Foreign Exchange Rates."

Detailed entries: Open a detailed account.

Remarks21. Account 632 "Gold Price Differential"

This account is used to reflect differentials arising from changes in gold prices when revaluing gold in Vietnamese Dong.

- Account 6321 - Differentials due to revaluation of gold in Vietnamese Dong belonging to the foreign currency reserve fund at the reporting date

This account includes the following third-level sub-accounts:

The accounting entries for this account are similar to those for Account 6311 "Differential due to revaluation of foreign currency reserve fund balances in Vietnamese Dong at the reporting date."

- Account 6322 - Differentials due to revaluation of gold in Vietnamese Dong belonging to the exchange rate stabilization and gold price fund at the reporting date

The accounting entries for this account are similar to those for Account 6312 "Differential due to revaluation of foreign currency balances in Vietnamese Dong of the exchange rate stabilization and gold price fund at the reporting date."

At year-end, the balances of Accounts 6321 and 6322 shall be processed according to the financial mechanism prescribed by the Governor of the State Bank after obtaining approval from the Ministry of Finance.

Remarks- Account 6323 - Differentials due to revaluation of gold balances in Vietnamese Dong of all gold accounts at the reporting date

The accounting entries for this account are similar to those for Account 6313 "Differential due to revaluation of foreign currency balances in Vietnamese Dong of all foreign currency accounts at the reporting date."

At year-end, the balances of Account 6323 shall be processed according to the provisions of Accounting Standard No. 10 "Impact of Changes in Foreign Exchange Rates."

Remarks22. Account 633 "Differentials due to Revaluation of Value in Vietnamese Dong of Derivative Financial Instruments"

This account is used to reflect differentials in Vietnamese Dong due to changes in foreign exchange rates, gold prices, or other prices when revaluing derivative financial instruments of the State Bank. This account includes the following third-level sub-accounts:

6331 - Differentials due to revaluation of value in Vietnamese Dong of foreign currency swap transactions.

6332 - Differentials due to revaluation of value in Vietnamese Dong of foreign currency forward transactions.

6339 - Differentials due to revaluation of value in Vietnamese Dong of other derivative financial instruments.

- Decreases in differentials due to revaluation of derivative financial instrument account balances at the end-of-month exchange rate or revaluation price;

Debit side records: Transfer end-of-year credit balance (if any) to appropriate accounts;

- Transfer the end-of-year credit balance (if any) to the appropriate account;

Credit side records: - The difference Increase due to revaluation of the balances of derivative financial instrument accounts according to exchange rates or revaluation prices at the end of the month;

- Transfer end-of-year debit balance (if any) to appropriate accounts;

Credit or debit balance:

- Reflects the Credit or Debit differences resulting from the revaluation of the value of Vietnamese dong of derivative financial instruments that have occurred during the year but not yet implemented or processed.

Detailed entries: Open a detailed account.

At the end of the year, the balance of this account is handled according to the financial mechanism prescribed by the Governor of the State Bank after obtaining approval from the Ministry of Finance.

23. Account 723 "Income from Derivative Financial Instruments"

This account is used to reflect income from derivative financial instruments.

The accounting entries for this account are as follows:

Debit side records: - Reduction in income (withdrawal of income) during the year from income from derivative financial instruments;

- Transfer end-of-year credit balance (if any) to appropriate accounts;

Credit side records: - Income arising but not yet realized from derivative financial instruments during the year;

Credit balance: - Reflects the total income arising but not yet realized from derivative financial instruments during the year and not yet processed.

Detailed entries: Open a detailed account.

RemarksAt the end of the year, the balance of this account is handled according to the financial mechanism prescribed by the Governor of the State Bank after obtaining approval from the Ministry of Finance.

24. Account 794 "Revenue from Liquidation of Fixed Assets"

This account is used to reflect revenue from the liquidation of fixed assets.

The accounting entries for this account are similar to the accounting entries on the income accounts of the State Bank.

25. Account 795 "Income from Other Derivative Financial Instruments"

This account is used to reflect income from other derivative financial instruments except for monetary derivative financial instruments such as securities derivatives, interest rate derivatives...

The accounting entries for this account are similar to those of Account 723 "Income from Monetary Derivative Financial Instruments"

26. Account 8043 "Expenditure on Monetary Derivative Financial Instruments"

This account is used to reflect expenditure on monetary derivative financial instruments.

The accounting entries for this account are as follows:

Debit side records: - Expenditure arising but not yet realized from monetary derivative financial instruments during the year;

Credit side records: - Reduction in expenditure (withdrawal of expenditure) during the year from expenditure on monetary derivative financial instruments;

- Transfer end-of-year debit balance (if any) to appropriate accounts;

Debit balance: - Reflects the total expenditure arising but not yet realized from monetary derivative financial instruments during the year and not yet processed.

Detailed entries: Open a detailed account.

RemarksAt the end of the year, the balance of this account is handled according to the financial mechanism prescribed by the Governor of the State Bank after obtaining approval from the Ministry of Finance.

27. Supplementing Sub-account 3 under Account 824 "Expenditure on Incentives, Welfare and Additional Income under Contractual Mechanism" as follows:

- Account 8241 "Expenditure on Incentives and Welfare"

- Account 8242 "Expenditure on Additional Income under Contractual Mechanism"

The accounting entries for these accounts are as follows:

Debit side records: - Actual expenditure on incentives, welfare and additional income under contractual mechanism incurred during the period;

Credit side records: - Reduction in expenditure (withdrawal of expenditure) during the year from expenditure on incentives, welfare and additional income under contractual mechanism;

- Transfer end-of-year debit balance (if any) to appropriate accounts;

Debit balance: - Reflects the expenditure on incentives, welfare and additional income of the State Bank during the year.

28. Account 843 "Expenditure on Liquidation of Fixed Assets"

This account is used to reflect expenditure on the liquidation of fixed assets, including the un-depreciated value of fixed assets (if any).

The accounting entries for this account are similar to the accounting entries on the expense accounts of the State Bank.

29. Account 897 "Expenditure on Other Derivative Financial Instruments"

This account is used to reflect expenditure from other derivative financial instruments except for monetary derivative financial instruments such as securities derivatives, interest rate derivatives...

The accounting entries for this account are similar to those of Account 8043 "Expenditure on Monetary Derivative Financial Instruments".

30. Supplementing Detailed Accounting Entries for Account 971 "Amount of Currency Supply Used for Designated Purposes"

- Open detailed sub-accounts according to each fiscal year.

31. Supplementing Account 974 "Increase in Currency Supply for Designated Purposes This Year"

This account includes the following sub-accounts:

- Account 9741 "Increase in Currency Supply for Foreign Exchange Reserves This Year"

- Account 9742 "Increase in Currency Supply for Re-lending This Year"

- Account 9743 "Increase in Currency Supply for Open Market Operations This Year"

- Account 9744 "Increase in Currency Supply for Lending for Other Designated Purposes This Year"

- Account 9749 "Increase in Currency Supply for Other Purposes This Year"

These accounts are used to reflect the increase in currency supply for designated purposes during the year. On January 1st of the following year, the balance of this account is transferred to Account 976 "Increase in Currency Supply for Designated Purposes in Previous Years"

The accounting entries for these accounts are as follows:

Debit side records: - Increase in currency supply during the year;

Credit side records: - Transfer the increase in currency supply during the previous year to Account 976;

Debit balance: - Reflect the increase in currency supply during the year not yet transferred.

Detailed entries: Open a detailed account.

32. Account 975 "Decrease in Currency Supply for Designated Purposes This Year"

This account includes the following sub-accounts:

- Account 9751 "Decrease in Currency Supply for Foreign Exchange Reserves This Year"

- Account 9752 "Decrease in Currency Supply for Re-lending This Year"

- Account 9753 "Decrease in Currency Supply for Open Market Operations This Year"

- Account 9754 "Decrease in Currency Supply for Lending for Other Designated Purposes This Year"

- Account 9759 "Decrease in Currency Supply for Other Lending Purposes This Year".

These accounts are used to reflect the decrease in currency supply for designated purposes during the year. On January 1st of the following year, the balance of this account is transferred to Account 976 "Increase in Currency Supply for Designated Purposes in Previous Years".

The accounting entries for this account are as follows:

Debit side records: - Reflect the decrease in currency supply during the year;

Credit side records: - Transfer the decrease in currency supply during the previous year to Account 976;

Debit balance: - Reflect the total decrease in currency supply during the year not yet transferred.

Detailed entries: Open a detailed account.

33. Account 976 "Increase in Currency Supply for Designated Purposes in Previous Years"

This account includes the following sub-accounts:

- Account 9761 "Increase in Currency Supply for Foreign Exchange Reserves in Previous Years"

- Account 9762 "Increase in Currency Supply for Re-lending in Previous Years"

- Account 9763 "Increase in Currency Supply for Open Market Operations in Previous Years"

- Account 9764 "Increase in Currency Supply for Lending for Other Designated Purposes in Previous Years"

- Account 9769 "Increase in Currency Supply for Other Purposes in Previous Years"

These accounts are used to reflect the net increase in currency supply in previous years according to each designated purpose. The accounting entries on this account are made simultaneously with the settlement of balances on Accounts 974 and 975 in each fiscal year.

Debit side records: - The amount of money supply increase in the previous year;

Credit side records: - The amount of money supply decrease in the previous year;

Debit balance: - The cumulative net increase in money supply from previous years.

Detailed entries: Open a detailed account.

34. Account 991 "Precious metals, precious stones, and other assets held in custody or leased out"

This account includes the following third-level sub-accounts:

- Account 9911 "Precious metals and precious stones held in custody"

This account is used to reflect precious metals and precious stones of units and individuals entrusted to the State Bank for safekeeping. The value of precious metals and precious stones held in custody is recorded based on the value of the physical items stated in the delivery receipt between the State Bank and the customer.

Debit side records: - The value of precious metals and precious stones received into storage for safekeeping;

Credit side records: - The value of precious metals and precious stones withdrawn from storage and returned to the depositor;

Debit balance: - Reflects the total value of precious metals and precious stones currently held in custody by the State Bank.

Detailed entries: Open detailed accounts according to the units and individuals entrusting precious metals and precious stones for safekeeping.

In addition to the detailed ledger, the Bank must retain the delivery receipt for precious metals and precious stones held in custody to monitor the physical items.

- Account 9912 "Other assets held in custody"

This account is used to reflect other assets (excluding precious metals and precious stones already recorded in Account 991) entrusted to the State Bank for safekeeping under the prescribed regulations. The value of assets held in custody is recorded based on the value stated in the contract between the State Bank and the customer.

Debit side records: - The value of assets received for safekeeping by the Bank;

Credit side records: - The value of assets returned to the depositor;

Debit balance: - Reflects the total value of assets currently held in custody.

Detailed entries: Open detailed accounts according to the units entrusting assets for safekeeping.

In addition to the detailed ledger, the Bank must retain the delivery receipt for assets held in custody to monitor the physical items.

- Account 9913 - Assets Leased Out

This account is used to reflect assets leased out by the State Bank for use.

Debit side records: - The value of assets leased out;

Credit side records: - The value of assets returned to the owner;

Debit balance: - Reflects the total value of assets leased out currently being managed by the State Bank.

Detailed entries: Open detailed accounts according to each type of asset.

In addition to the detailed ledger, the Bank must maintain a detailed record of assets belonging to each owner.

35. Account 992 "Fixed Assets Serving Programs and Projects"

This account is used to reflect fixed assets serving programs and projects implemented by the State Bank.

Debit side records: - The value of fixed assets purchased or received belonging to programs and projects;

Credit side records: - The value of fixed assets liquidated or transferred to other units within the State Bank;

Debit balance: - Reflects the total value of fixed assets serving programs and projects.

Detailed entries: Open detailed accounts for each program and project.

36. Account 993 "Labor Tools in Use"

This account is used to reflect labor tools purchased for immediate use or issued from inventory for use with allocated values included in costs.

Debit side records: - The value of labor tools purchased for immediate use, issued from inventory for use, or received through transfer from another unit (based on actual purchase price or transfer price);

Credit side records: - The value of labor tools liquidated or transferred to other units;

Debit balance: - Reflects the total value of labor tools currently in use.

Detailed entries: Open detailed accounts according to the using unit and each type of labor tool.

At year-end, the unit must conduct an inventory check to ensure that the labor tools in use match in quantity and type.

37. Account 995 "Foreign Currency Not Meeting Circulation Standards Awaiting Processing"

This account is used to record foreign currency suspected to be counterfeit, damaged (cut, repaired, torn), awaiting processing.

Debit side records: - The face value of foreign currency not meeting circulation standards arising during the operation of the State Bank awaiting processing;

Credit side records: - The face value of foreign currency not meeting circulation standards that have been processed;

Debit balance: - Reflects the face value of foreign currency not meeting circulation standards.

Detailed entries: Open detailed accounts according to each type of foreign currency and denomination.

38. Supplementing Sub-Accounts Under Account 996 "Budgetary Expenditure Plan Used for Designated Purposes"

- Account 9961 "Operational Budgetary Expenditure Plan"

- Account 9962 "Project Budgetary Expenditure Plan"

These accounts reflect the budgetary expenditure plan and the implementation status of the budgetary expenditure plan provided by the State Budget.

Debit side records: - The amount of budgetary expenditure plan distributed and notified;

Credit side records: - The amount of budgetary expenditure plan received and withdrawn;

Debit balance: - Reflects the remaining amount of budgetary expenditure plan yet to be received and withdrawn.

Detailed entries: Open detailed accounts according to each program and each project.

39. Account 998 "Special Drawing Rights (SDR) Withdrawal Rights at the International Monetary Fund (IMF)"

This account is used to record the value of SDR (Special Drawing Rights) available for use according to the SDR withdrawal rights regulations of the IMF. This account is only opened at the State Bank's Trading Department.

Debit side records: - The value of SDR used according to SDR withdrawal rights at the IMF;

Credit side records: - The value of SDR already used according to SDR withdrawal rights at the IMF;

Debit balance: - Reflects the value of SDR still available for use according to SDR withdrawal rights at the IMF.

Detailed entries: Open a detailed account.

Article 4. This Decision takes effect from March 1, 2007.

Article 5. The Director of the Office, the Head of the Accounting and Finance Department, the Director of the Banking Technology Information Center, the Head of the General Supervision Department, and the Heads of relevant units under the State Bank of Vietnam are responsible for implementing this Decision./.