Circular No. 77-TC/CĐKT guiding accounting for the collection and payment of additional charges and receipt of support from the price stabilization fund for enterprises. This document specifies the detailed accounting entries when enterprises must pay additional charges or receive support from this fund.
Scope of application
Vietnamese economic organizations are permitted to engage in import and export trade, production, and domestic consumption.
Key points
- Enterprises must set aside and pay additional charges when there is a decision by the competent authority (Article 1).
- When receiving support from the price stabilization fund to offset incurred losses, enterprises shall record the entry in Account 70 - Income (Article 2 a).
- In cases where enterprises receive interest rate subsidy loans or circulation costs, they must repay part or all of the supported funds if they break even (Article 2 b).
- If there is a difference between the cost of inventory and the actual selling price, enterprises must pay an additional amount not exceeding 60% of the difference to supplement the price stabilization fund (Article 2 b).
- In cases where the budget provides interest-free or low-interest loans, enterprises must repay principal and interest on time (Article 2 c).
🌐 Social impact of this document
- To assist enterprises in obtaining financial support to stabilize market prices.
- Increase the financial burden on enterprises when there is a difference between the cost and the selling price.
- Strict adherence to the accounting procedures as guided is required.
❓ Frequently asked questions
Under what circumstances must enterprises pay additional charges?
When products or goods require additional charges according to the decision of the competent authority.
How should enterprises account for receiving support from the price stabilization fund?
Debit Account 64 - Settlement with State Budget (648 - Subsidy), Credit Account 70 - Income.
When must enterprises repay the supported funds?
When breaking even or when there is a difference between the cost of inventory and the actual selling price.
What is the maximum amount that must be paid to supplement the price stabilization fund?
Not exceeding 60% of the price difference if the enterprise makes a profit from sales.
How should enterprises account for receiving interest-free or low-interest loans from the budget?
Debit Accounts 50, 51 ..., Credit Account 64 - (648 - Subsidy).
Full text
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM |
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Number: 77-TC/CĐKT |
Hanoi, September 10, 1993 |
CIRCULAR
DIRECTIVE NO. 77-TC/CĐKT OF THE MINISTRY OF FINANCE ON SEPTEMBER 10, 1993 GUIDING ACCOUNTING FOR THE WITHDRAWAL AND PAYMENT OF ADDITIONAL CHARGES AND RECEIPT OF SUPPORT FUNDS FROM THE PRICE STABILITY FUND FOR ENTERPRISES
Pursuant to Decision No. 151-TTg dated April 12, 1993 of the Prime Minister and Circular No. 03-TT-LB dated May 28, 1993 of the Government Price Control Board and the Ministry of Finance on the formation, use, and management of the price stability fund, the Ministry of Finance guides accounting for the withdrawal and payment of additional charges and receipt of support funds from the price stability fund for enterprises as follows:
1. Accounting for the withdrawal and payment of additional charges.
Economic organizations permitted to engage in import and export trade, production, and domestic consumption, if they have products or goods subject to additional charges according to the decision of the competent authority of the Government, in addition to their tax obligations under the law, must also pay additional charges.
When determining the amount of additional charges payable for domestically produced products or goods intended for export or domestic consumption, record:
Debit Account 40 - Consumption and Results
Credit Account 64 (648 - Subsidy)
- Details: Payment to the price stability fund.
- When determining the amount of additional charges payable to the State budget for imported materials or goods, record:
Debit Accounts: 21, 23 ...
Credit Account: 64 - Payment to the State Budget (648 - Subsidy)
- When paying additional charges to the State budget, record:
Debit Account 64 - Payment to the State Budget (648 - Subsidy)
2. Accounting for support funds received from the price stability fund.
a) In the case of receiving funds from the price stability fund to support a portion of losses incurred in production and business operations that are not repayable, then:
- When there is a decision by the Government (or an agency authorized by the Government) regarding the provision of support funds from the price stability fund to enterprises to offset a portion of the incurred losses, record:
Debit Account 64 - Payment to the State Budget (648 - Subsidy)
Credit Account: 70, - Income
- When the enterprise receives support funds from the price stability fund, record:
Debit Accounts: 50, 51..
Credit Account 64 - Payment to the State Budget (648 - Subsidy)
b) In the case of receiving partial or full support for interest on borrowed capital from banks or part of circulation costs, then:
- When determining the amount of support according to the decision of the Government (or an agency authorized by the Government), record:
Debit Account: 64 - Payment to the State Budget (648 - Subsidy)
Credit Account 34 - Circulation Costs
- When receiving support funds, record:
Debit Accounts: 50, 51..
Credit Account 64 (648 - Subsidy)
- When the enterprise sells goods, if it breaks even, the enterprise must return partially or fully the support funds from the price stability fund, record:
+ Determining the amount of support funds to be returned to the State budget:
Debit Account 34 - Circulation Costs
Credit Account 64 - (648 - Subsidy)
+ When returning the amount of support funds to the State budget:
Debit Account 64 (648 Subsidy)
Debit Account 64 - Payment to the State Budget (648 - Subsidy)
- When the enterprise sells goods, if there is a difference between the cost of inventory and the actual selling price, in addition to returning the entire amount of support funds provided, enterprises must also pay up to 60% of this price difference to supplement the price stability fund, record:
+ Determining the amount of price difference to be paid:
Debit Account 34 - Circulation Costs
Credit Account 64 - (648 - Subsidy)
+ When paying money to the State budget to supplement the price stability fund:
Debit Account 64 (648 Subsidy)
Credit Accounts: 50, 51...
c) In the case where the State budget supports enterprises assigned the task of stabilizing prices through interest-free loans or loans with low-interest rates, then:
- When the State budget provides a loan from the price stability fund, record:
Debit Accounts: 50, 51..
Credit Account 64 - (648 - Subsidy).
Determining the amount of interest payable to the State budget to supplement the price stability fund, record:
Debit Account 34 - Circulation Costs
Credit Account 64 - (648 - Subsidy)
- When repaying the loan and interest to the State budget, record:
Debit Account 64 (648 - Subsidy)
Credit Accounts: 50, 51...
This Circular takes effect from the date of issuance.
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Pham Van Trong (Signed) |
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