Circular No. 96/2010/TT-BTC guides the recovery and handling of accounting records lost or destroyed due to objective reasons.

CIRCULAR

Guidelines for restoring and handling accounting records lost or destroyed due to objective reasons

due to objective reasons

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- Based on the Accounting Law dated June 17, 2003;

- Based on Decree No. 128/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law applicable in the state accounting sector;

- Based on Decree No. 129/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law applicable in business operations;

- Based on Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance.

The Ministry of Finance hereby guides the restoration and handling of accounting records lost or destroyed due to objective reasons as follows:

Chapter I - GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular specifies in detail the procedures, methods, and approaches for restoring and handling accounting records lost or destroyed due to objective reasons at accounting units in various sectors, fields, and economic components.

Article 2. Applicability

This Circular applies to the following entities:

1. Accounting units with accounting records lost or destroyed due to objective reasons (force majeure), such as natural disasters, fires, pests, decay, theft.

2. Financial agencies, tax agencies, state treasuries, direct superior management agencies, and other organizations and individuals related to accounting units with accounting records lost or destroyed due to objective reasons.

Article 3. Accounting Records to be Restored and Handled

Accounting records to be restored and handled include: accounting vouchers, accounting ledgers, financial reports, data storage media, and other relevant materials related to accounting work currently in use in the accounting department, related departments (sections), or transferred to the archives of accounting units in various sectors, fields, and economic components that have been lost or destroyed due to objective reasons.

Article 4. Responsibilities of Accounting Units with Lost or Destroyed Accounting Records Due to Objective Reasons

1. Must promptly notify relevant management agencies such as financial agencies, tax agencies, state treasuries, and direct superior management agencies within fifteen days from the discovery of lost or destroyed accounting records due to objective reasons.

2. Must collect and restore and handle to the maximum extent possible the accounting records and other materials related to the accounting work of the accounting unit that have been destroyed due to objective reasons.

3. Must gather and reproduce to the maximum extent possible the lost accounting records.

4. Must establish a Committee for Restoring and Handling Accounting Records to carry out all related work on restoring and handling accounting records immediately after notifying the situation to relevant management agencies.

Chapter II - SPECIFIC PROVISIONS

Article 5. Committee for Restoring and Handling Accounting Records

1. The Committee for Restoring and Handling Accounting Records of the unit includes the following members:

a) The General Director of the enterprise or head of the unit: Chair;

b) Chief Accountant (or person in charge of accounting): Vice-Chair;

c) Representative of the internal audit and control department of the unit: Member;

d) Representatives of related departments (such as warehouses, stores, sales departments, planning departments, etc.): Members;

e) All staff of the Finance and Accounting Department: Members;

g) Representatives of relevant management agencies: Members.

2. In cases where accounting records are lost or destroyed in small quantities, the Committee for Restoring and Handling Accounting Records may be established with a streamlined composition consisting only of key members directly related to those accounting records.

3. The Committee for Restoring and Handling Accounting Records has the responsibility to carry out all work on restoring and handling accounting records in accordance with the law and the guidelines set forth in this Circular.

Article 6. Inventory, evaluation, and classification of destroyed or lost accounting documents

1. The Accounting Document Recovery and Processing Board must conduct an inventory, evaluation, and classification of all accounting documents of the unit and prepare an Accounting Document Inventory Record (according to Model Appendix 01 issued together with this Circular), confirming each type of document according to accounting content, currently in use or transferred to storage, and according to the degree of destruction. (according to Model Appendix 01 issued together with this Circular) confirming along with a detailed list of each type of document, according to accounting content, currently in use or transferred to storage, and according to the degree of destruction.

2. Classification of destroyed or lost accounting documents shall be as follows:

a) Documents that can still be used;

b) Documents that cannot be used (unreadable or completely destroyed);

c) Lost documents.

Article 7. Procedure for recovering and processing accounting documents

1. Prioritize the recovery and processing of accounting documents destroyed in the current year.

2. Continue to recover and process accounting documents from the preceding years up to the current year.

Article 8. Responsibilities of related units

Relevant management agencies and organizations and individuals related to the unit with destroyed or lost accounting documents have the responsibility to provide, compare, and confirm relevant documents and figures related to the destroyed or lost accounting documents within ten days from the date of receiving the confirmation request.

Article 9. Accounting work at the accounting unit after suffering damage due to external causes

While handling the consequences of damage caused by external factors, the accounting unit must continue organizing normal accounting work and supplementing and completing missing accounting documents to reflect economic transactions occurring after the loss or destruction of accounting documents.

Article 10. Inventory, determination, and handling of losses of assets due to external causes

1. Simultaneously with the recovery and processing of accounting documents destroyed due to external causes, within ten days from the establishment of the Accounting Document Recovery and Processing Board, affected units must conduct a full inventory of assets, receivables, payables, and capital of the unit up to the time of inventory. For receivables, payables, capital, and operating funds, there must be confirmation from related units to determine the actual status and amount of assets, capital, and receivables/payables after the damage.

2. Based on existing or recovered accounting data compared with the actual inventory data before the damage and confirmed figures from related parties regarding receivables and payables, determine the balance to be carried forward to the accounting books and the quantity and value of assets lost due to external causes.

3. Handling asset losses due to external causes and costs related to the recovery and processing of accounting documents shall be carried out in accordance with the current financial management regulations.

Article 11. Methods for recovering and processing usable accounting documents

1. Accounting vouchers:

After recovering and processing readable accounting documents, prepare a detailed list and photocopy them, complete the certification procedures for true copies of the original documents; classify and bind them like other accounting vouchers. Photocopies must be signed and confirmed by the person making the copy, the Head of the Accounting Document Recovery and Processing Board, and related parties. In this case, the photocopies are considered legal documents of the unit with destroyed or lost accounting documents.

2. Accounting ledgers:

After recovery and processing, proceed to photocopy and sign and confirm as stipulated in Clause 1 of this Article. For the current year's accounting ledger (year of accounting document destruction), after photocopying, lock the ledger to determine the balance at the end of the day before the accounting documents were lost or destroyed to serve as the basis for transferring data to new accounting ledgers.

3. Financial report:

Proceed to photocopy all financial reports and carry out confirmation as stipulated in Clause 1 of this Article.

4. Accounting documents destroyed but still usable, after recovery and processing, prepare a detailed list by type, confirmed by the Accounting Document Recovery and Processing Board, and continue storing them alongside newly photocopied documents.

5. Based on the actual inventory results of assets, materials, goods, and cash reserves of the unit after damage due to external causes and confirmed receivables and payables of related units, the unit compares these figures with the recovered and processed accounting records to determine discrepancies between the accounting records and the actual inventory, report to financial authorities, management agencies, business registration licensing authorities, tax authorities, political organizations, mass organizations, and social organizations.

Article 12. Methods for handling accounting documents that cannot be used or have been lost

1. For lost documents or those destroyed and unable to be used, the Accounting Document Recovery and Processing Board must contact relevant management agencies and related organizations and individuals to request copies of all such documents and must obtain confirmation from the units or individuals providing the copies.

2. Based on financial statements and other accounting documents at the nearest point in time still retained by relevant management agencies and related organizations and individuals, the balance of each account up to the reporting date shall be determined. According to the actual inventory results of assets, materials, goods, and cash balances at the inventory date after damage, confirmed data, and reconciliation of receivables and payables with related units, the unit shall re-determine the account balances up to the date after damage as the basis for transferring into the new accounting ledger.

3. For lost or completely destroyed documents and data without other documents to copy, the Accounting Document Recovery and Processing Board shall prepare a declaration and confirmation. In this case, there must be confirmation from at least two members of the Accounting Document Recovery and Processing Board (the Head and one member of the Accounting Document Recovery and Processing Board), and it may also include a representative of a relevant management agency (if available). The person confirming must bear responsibility for their confirmations.

4. For cases where accounting documents are lost or completely destroyed without any documents to copy, the accounting unit must base the balances on the data and results of asset, material, goods, and cash inventory after damage and confirmed data reconciling accounts receivable and payable of related units to transfer into the new accounting ledger. The accounting unit shall reissue financial statements after recovering and processing accounting documents to submit to higher authorities.

Chapter III - IMPLEMENTATION

Article 13. Effective Date

1. This Circular takes effect 45 days from the date of issuance.

2. Repeal Circular 145/1999/TT-BTC dated December 14, 1999 of the Ministry of Finance guiding the recovery and processing of accounting documents for flood-affected units in central provinces.

Article 14. Responsibility for implementation

1. Ministries, sectors, and People's Committees of provinces and centrally-administered cities are responsible for directing the implementation of the recovery and processing of accounting documents for units under their management responsibility.

2. Provincial Departments of Finance, Taxation Bureaus, State Treasury Branches of provinces and centrally-administered cities are responsible for inspecting and supervising the implementation according to their functions and tasks.

3. Accounting units with lost or destroyed documents are responsible for complying with legal regulations and guidance provided in this Circular, and must bear responsibility for the rationality and accuracy of recovered and processed accounting documents./.