CIRCULAR

STATE BANK OF VIETNAM’S REGULATIONS ON ACCOUNTING FOR FIXED ASSETS, TOOLS, INSTRUMENTS AND SUPPLIES

Pursuant to the Law on State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Accounting dated November 20, 2015;

Pursuant to the Law on Management and Use of Public Property dated June 21, 2017;

Pursuant to the Prime Minister’s Decision No. 07/2013/QD-TTg dated January 24, 2013 on financial policies of the State Bank of Vietnam;

Pursuant to the Prime Minister’s Decision No. 08/2013/QD-TTg dated January 24, 2013 on the accounting regime applicable to the State Bank of Vietnam;

Pursuant to the Government's Decree No. 16/2017/ND-CP dated February 17, 2017, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

Pursuant to the Government's Decree No. 151/2017/ND-CP dated December 26, 2017 elaborating on certain articles of the Law on Management and Use of Public Property;

Upon the request of the Director of the Finance – Accounting Department;

State Bank’s Governor hereby promulgates the Circular setting out State Bank’s regulations on accounting for fixed assets, tools, instruments and supplies.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular prescribes the bookkeeping and accounting regime for fixed assets, tools, instruments and supplies to be applied at affiliates of the State Bank of Vietnam (hereinafter referred to as SBV).

Accounting for or recording bookkeeping entries of formation and acquisition of assets with respect to capital investment and construction projects or projects funded by non-refundable aids (in the course of execution of projects) in the SBV’s system shall not be covered in this Circular.

Article 2. Subjects of application

This Circular shall be applied to the Finance – Accounting Department, Administrative Department, Transaction Center, Information Technology Department, Issue and Vault Department, Administrative Subdepartment, Information Technology Subdepartment, Issue and Vault Subdepartment, Bank Supervision and Inspection Agency, Project Management Units for ODA-funded projects, SBV's branches at provinces and centrally-affiliated cities (hereinafter referred to as State Bank branches), and units that keep entries of their transactions on the SBV’s Chart of Accounts (hereinafter referred to as SBV’s affiliates).

Public service units affiliated to SBV shall not apply bookkeeping and accounting regulations laid down herein, but only regulations set forth in Appendix No. 02 hereto.

Article 3. Interpretation

1. “Core banking, accounting, budgeting and systems integration system” refers to a system created to send, receive, store, display and perform actions with the objective of managing and accounting for SBV's economic or financial transactions, including such software products as Enterprise Resource Planning (ERP), Core Banking (Temenos T24), Chest Management Operation (CMO), Central Securities Depository (CSD), Auction/ Open Market Operation (AOM) (hereinafter referred to as accounting software system).

2. ERP software refers to a system for managing and accounting for SBV’s economic or financial transactions, which is classified into the following branches of management of accounting operations:

- General Ledger (GL);

- Fixed Asset Management (FA);

- Account Receivable, Account Payable Management (AR, AP);

- Financial Accounting Hub (FAH);

- Budgeting (BG).

3. Central shopping unit refers to an entity authorized by SBV’s Governor to buy in bulk and allocate fixed assets, tools and supplies to SBV’s affiliates.

4. Affiliate wishing to buy assets (fixed assets, tools and supplies) refers to a SBV-affiliated unit that receives the transfer of assets from a central shopping unit (hereinafter referred to as demanding affiliate).

Article 4. Regulations on standards for recognition of fixed assets, tools and supplies

1. Standards for recognition of tangible fixed assets

Tangible fixed assets are assets existing in physical form and used for SBV’s operations. Fixed asset which is structured independently or exists as a system comprising separate parts linked together to perform one or several functions or unable to work normally in default of any of these parts can be considered as a fixed asset if it meets all two following standards, including:

a) Having the useful life of at least 01 (one) year;

b) Having the historical cost of at least VND 30,000,000 (ten million dong).

2. Standards for recognition of intangible fixed assets

Intangible fixed asset is a non-physical asset that SBV creates through its investments or operations, and that does not create tangible fixed assets though it meets both standards specified in clause 1 of this Article.

Expenses that do not meet both standards specified in clause 1 of this Article are directly accounted for or gradually distributed into SBV’s expenses.

3. Standards for recognition of tools or instruments

Tools or instruments that are means of labor that do not meet standards for being recognized as fixed assets, repeatedly taking part in operations of SBV’s affiliates, shall be classified under the provisions of SBV’s Asset Management Regulations.

4. Standards for recognition of supplies

Supplies or raw materials are subjects of labor that are used in SBV’s operations, not being classified as tools or instruments, but classified under the provisions of SBV's Asset Management Regulations.

Article 5. Tracking and accounting principles

1. Principles of tracking of fixed assets, tools, instruments and supplies

a) All assets that are fixed assets, tools, instruments or supplies must be reflected or tracked in a full and systematic manner on the FA branch.

b) Principles of tracking of fixed assets:

 (i) Each objects qualified for being recognized as a fixed asset must be classified, numbered and tagged separately, and tracked in detail. In case of upgradation, expansion or repair of a fixed asset, each fixed asset affected by any of such activities must be tracked in detail.

 (ii) When entering a fixed asset as a system that is constituted by different separate parts linked together and having different depreciation periods, and that continues to perform its main functions even though any of these parts are missed out, SBV’s affiliates must classify such fixed asset by such separate parts. If these separate parts meet both standards for recognition of fixed assets, they can be accepted as independent tangible fixed assets.

 (iii) Each fixed asset must be tracked according to its historical cost, accumulated depreciation and residual value recorded in accounting books:

 (iv) SBV’s affiliates must track and keep custody of unneeded fixed assets and fixed assets awaiting disposition that have not been completely depreciated in accordance with regulations currently in force, and must depreciate them under the provisions of this Circular.

c) Principles of tracking tools or instruments:

All tools or instruments must be tracked by detailing types and users thereof. Tools or instruments can be tracked from the time of purchase to the time of liquidation, irrespective of whether their value has been completely distributed or not.

d) Principles of tracking of supplies:

All supplies kept in warehouses must be tracked in detail by their material, quantity or unit prices determined once they are moved in or out of warehouses, or inventory quantity or value according to the specific identification method.

dd) At end of each accounting year, inventory checking of fixed assets, tools, instruments and supplies must be carried out. In case of discovering excess or inadequacy, a report on such situation must be made, including acceptable explanations and possible actions to be taken to deal with such situation.

2. Bookkeeping and accounting principles

a) Tracking, bookkeeping or accounting for fixed assets, tools, instruments and supplies at SBV's affiliates must take place on the Accounting Software System.

b) When bookkeeping or accounting for transactions on the Accounting Software System, SBV’s affiliates must follow the manual for use of this System issued by SBV.

c) Participants in procedures for accounting for fixed assets, tools, instruments and supplies at SBV’s affiliates must conform to regulations on circulation, control, reconciliation and consolidation of accounting documents on the Accounting Software System adopted by SBV.

Article 6. Regulations on depreciation of fixed assets

1. Principles of depreciation of fixed assets

a) Depreciation of fixed assets under SBV’s ownership must be subject to regulations of the Ministry of Finance imposed on enterprises.

b) All existing fixed assets must be depreciated, except the followings:

 (i) Any fixed asset, though completely depreciated, remains in use;

 (ii) Any fixed asset not completely depreciated is lost;

 (iii) Any fixed asset, though not completely depreciated, is damaged previously to the extent that it is no longer usable;

 (iv) Any fixed asset kept under an affiliate’s control is not in its ownership (except finance leased fixed assets);

 (v) Any fixed assets are used for granting welfare benefits to SBV’s staff members and employees (except those assets necessary for employee’s performing their duties, including mid-shift accommodations, mid-shift meal canteens, locker rooms, restrooms, parking lots, medical exam rooms or healthcare stations, etc. financed and built by SBV);

 (vi) Any intangible fixed asset, including land title that is depreciated for determination of value of land title that is charged into total asset value as provided in Article 100 in the Government’s Decree No. 151/2017/ND-CP dated December 26, 2017, elaborating on several Articles of the Law on Management and Use of Public Property (hereinafter referred to as Decree No. 151/2017/ND-CP).

c) Depreciation or termination of depreciation of fixed assets shall be carried out from the date of increase or decrease in these fixed assets.

2. Methods for depreciation of fixed assets

a) SBV’s fixed assets may be depreciated according to the straight line method as follows:

 (i) Annual average depreciation value of a fixed asset is calculated by dividing its historical cost by depreciation years;

 (ii) Monthly depreciation value of a fixed asset is calculated as the annual average depreciation value divided by 12 months. Depreciation value for the month ending the predetermined depreciation timelength is determined as difference between the historical cost and the accumulated depreciation realized till the month preceding the month ending the specified depreciation timelength.

b) In case of any change in depreciation timelength or historical cost of a fixed asset, SBV’s affiliate must redetermine the average depreciation value of that asset at the changing time by dividing the book value remaining after such change by the redetermined depreciation timelength or the residual depreciation timelength (defined as the difference between the depreciation timelength specified in regulations laid down in Appendix 01 and 02 hereto or the revaluated depreciation timelength and the completed depreciation timelength).

3. Determination of the depreciation timelength of fixed assets

a) With respect to a fixed asset that is new (has not been used before), SBV's affiliate must take into account the depreciation timelength stated in Appendix 01 and 02 hereto to determine the depreciation timelength of such fixed asset.

b) With respect to a fixed asset that has already been used, the depreciation timelength shall be determined as follows:

Where: Reasonable value is the actual buy or swap price (if such asset is traded or swapped), residual book value (if such asset is assigned, conveyed or transferred) or value determined by the Valuing Council (if such asset is gifted or donated) and value existing in other cases.

c) Amortization timelength of an intangible fixed asset, including authors' right and intellectual property right, is the term of protection specified in patents in accordance with regulations in force (excluding the length of extension of the term of protection).

4. Change of fixed asset’s historical cost

a) Fixed asset’s historical cost may be changed in the following cases:

 (i) Fixed asset is revaluated according to jurisdictional entity’s decisions;

 (ii) Fixed asset is upgraded, expanded or repaired according to projects approved by jurisdictional entities;

 (iii) One or several existing parts of fixed asset are removed, or additional ones are installed;

 (iv) Adjusting historical cost of intangible fixed asset, including value of land use right, according to (vi) of point b of clause 1 of this Article conforms to regulations laid down in clause 1 of Article 103 in the Decree No. 151/2017/ND-CP. Value of land use right is determined under clause 1, 2 and 3 of Article 102 in the Decree No. 151/2017/ND-CP plus (+) taxes (exclusive of refunded taxes) and fees or charges prescribed in laws on fees and charges.

b) Whenever any change in the historical cost of fixed asset (except land use right stipulated in (iv) of point a of this clause) occurs, SBV's affiliate shall make a report clearly stating causes of such change, and redefine components of such historical cost, the residual value of such fixed asset and carry out procedures for accounting for them.

If a fixed asset improvement, expansion or repair project comprises different work items and assets (objects recorded in accounting books as fixed assets) that are not recorded as separate accounts, book value of final accounts of specific work items and assets approved by jurisdictional entities must be distributed on the basis of construction area, quantity, costs estimated in detail for improvement, expansion or repair of each asset or work item.

c) Whenever any change in the historical cost of a fixed asset which is land use right arises, SBV’s affiliate must make a report clearly stating reasons for such change, and carry out revaluation of such land use right and keep accounting entries thereof.

The historical cost of an intangible fixed asset, i.e. land use right, that fall in the case prescribed in (vi) of point b of this Article shall be redetermined by the sum of revaluated land use right plus (+) taxes (exclusive of refunded taxes) and fees or charges under laws on fees and charges.

Land use right is revalued according to the formula specified in clause 1 and 2 of Article 102 in the Decree No. 151/2017/ND-CP, including components such as land size, purposes, prices and price adjustment coefficients in effect at the time of revaluation of land use right.

5. Change in the depreciation timelength

a) If there is any affecting element (e.g. improvement, upgradation or demolition of part or all of parts of fixed asset) that can lengthen or shorten the predetermined depreciation timelength of a fixed asset, at the time of preparation of a plan for such improvement, upgradation or demolition, SBV’s affiliate must prepare a report containing a recommended plan that clarifies the changed timelength of depreciation on the basis of clear explanations about the following information for submission to SBV (via Finance – Accounting Department):

 (i) Designed technical lifespan of the fixed asset;

 (ii) Current condition of the fixed asset (i.e. period of completed depreciation, generation and current status);

 (iii) Impacts of increase or decrease in asset depreciation.

b) Authority to approve the plan:

After receipt of plans (including detailed recommendations on changes in fixed asset depreciation timelength) from SBV's affiliates, Finance - Accounting Department shall consider approving these plans, make a general report for submission to the SBV's Governor to seek his consent within his jurisdiction as stated in SBV’s internal rules over financial and asset management.

c) Changes in the depreciation timelength of a fixed asset may be accepted if the changed depreciation timelength does not exceed its designed technical lifespan, and such changes do not entail any material change in the income or expense report of a SBV’s affiliate.

Article 7. Accounting reports

1. Principles of preparation and submission of accounting reports on fixed assets, tools, instruments and supplies

SBV’s affiliates shall prepare and submit accounting reports in a sufficient, timely and accurate manner. SBV’s affiliates shall assume responsibility for data and information shown in reports.

2. Accounting reports on fixed assets, tools, instruments and supplies, including:

- Fixe asset inventory report (Appendix 24)

- Tools and instruments inventory report (Appendix 25)

- Supplies inventory report (Appendix 26)

- (Quarterly) fixed asset depreciation report (Appendix 27)

- Assessment report on increase and decrease in fixed assets (Appendix 28)

- Inventory report on other assets controlled and kept in the custody of SBV's affiliate (Appendix 29).

Chapter II

REGULATIONS ON ACCOUNTING FOR FIXED ASSETS

Article 8. Accounts, accounting documents and books

1. Accounts

The following main accounts shall be used for accounting for fixed assets:

- A/C 304001- Tangible fixed assets

- A/C 304002- Intangible fixed assets

- A/C 30400501- Depreciation of tangible fixed assets

- A/C 30400502- Amortization of intangible fixed assets

- A/C 313001- Fixed asset purchases

- A/C 501001- Allocated capital

- A/C 501002- Capital expenditures

- A/C 501003- Capital gains on revaluation of assets

- A/C 501999- Not-elsewhere-classified (NEC) capital

- A/C 502002- Financial reserve funds

- A/C 602004- Inter-branch payments

- A/C 602999- Other payments between SBV’s affiliates

- A/C 811001- Underlying depreciation of fixed assets

- A/C 81100301- Expenses incurred on liquidation of fixed assets

- A/C 811006- Costs of renting fixed assets

- A/C 00900199- Other assets held in custody

- A/C 009002- Outsourced assets

Details, characteristics and compositions of these accounts shall be subject to detailed regulations set out in the SBV's Chart of Accounts.

2. Accounting documents, books and records

The following main documents, books or records shall be used for accounting for fixed assets:

- Report on acceptance testing, commissioning and handover of fixed asset (Appendix 03)

- Report on liquidation of fixed asset (Appendix 04)

- Report on acceptance testing, commissioning and handover of fixed asset after completion of major repair (Appendix 05)

- Report on revaluation of fixed asset (Appendix 06)

- Fixed asset inventory report (Appendix 07)

- Fixed asset tag or label (Appendix 08)

- Fixed asset register (Appendix 09)

- Reconciliation statement on fixed asset depreciation (Appendix 10)

- Logbook of fixed assets, tools, instruments and supplies available at places where they are used (Appendix 11)

- Accounting voucher of debits to off-balance sheet accounts (Appendix 12)

- Accounting voucher of credits to off-balance sheet accounts (Appendix 13)

- Set of invoices and evidencing documents on fixed assets, issued by suppliers.

Article 9. Accounting for fixed assets purchased by users

1. SBV's affiliates wishing to purchase fixed assets must observe the following regulations:

a) Those that do not run issuance funds shall make requests to receive advance payments at Transaction Center or SBV’s branches at cities or provinces where they open checking accounts according to the schedules approved by competent entities.

b) Unless such advance payments exceed the amounts specified in approved cost estimates, they will be allowed to proceed to buy fixed assets. Based on legitimate and documents evidencing fixed asset purchases, accountants must concentrate all costs incurred from these purchases and account for them as follows:

Recording debits to A/C 313001- Costs of fixed asset purchases

Recording credits to relevant A/C (e.g. 10100201, 102001, 602004, 602999, 413999,...)

2. If fixed assets acquired by purchases are brought in use and costs incurred from acquisition of such assets are settled within the fiscal year in question.

Accountants may, based on documents on settlement of these costs that jurisdictional entities have approved, perform the following accounting activities:

a) Recording entries of remaining sums not yet paid to suppliers under purchase contracts to general accounts of purchase costs

Entering debits in A/C 313001- Costs of fixed asset purchases

Entering debits in A/C 413999- Other payables

Request for advance payments and discharge of debt obligations to suppliers shall be subject to SBV’s Regulations on Management of Assets.

b) Accountants must enter entries of correct costs of fixed assets matched with the costs approved for settlement:

Recording debits to A/C 304001- Tangible fixed assets

And/or recording debits to A/C 304002- Intangible fixed assets

Recording credits to A/C 313001- Costs of fixed asset purchases

Simultaneously, SBV’s affiliates must depreciate these fixed assets as per clause 1 of Article 18 herein.

3. If purchased fixed assets have already been brought in use, but costs incurred from acquisition of such assets have not yet been settled within the fiscal year in question

a) Temporarily keeping entries of fixed assets

Based on reports on commissioning, acceptance testing, handover and delivery of fixed assets associated with relevant evidencing documents issued before these assets are brought into operation, accountant must carry out the following accounting activities:

 (i) Recording entries of remaining sums not yet paid to suppliers under purchase contracts to general accounts of asset purchase costs:

Entering debits in A/C 313001- Costs of fixed asset purchases

Entering credits in A/C 413999- Other payables

 (ii) Temporarily keeping entries of fixed assets

Recording debits to A/C 304001- Tangible fixed assets

And/or recording debits to A/C 304002- Intangible fixed assets

Recording credits to A/C 313001- Costs of fixed asset purchases

Simultaneously, SBV’s affiliates must depreciate these fixed assets as per clause 1 of Article 18 herein.

b) Taking the following actions after receipt of approval for settlement of costs incurred from purchases of fixed assets

Request for advance payments and discharge of debt obligations to suppliers shall be subject to SBV’s Regulations on Management of Assets.

In case where there is any variation between costs approved for settlement and temporarily recorded costs, SBV’s affiliates must deal with such variation by adjusting the latter to the first:

 (i) If there are decreasing adjustments in historical costs of these assets, accountants shall keep bookkeeping entries as follows:

Recording debits to relevant recoverable A/Cs (recoverable amounts that are not allowed for settlement)

Recording credits to A/C 304001- Tangible fixed assets

And/or recording credits to A/C 304002- Intangible fixed assets

 (ii) If there are increasing adjustments in historical costs of these assets, accountants shall keep bookkeeping entries as follows:

Recording debits to A/C 304001- Tangible fixed assets

And/or recording debits to A/C 304002- Intangible fixed assets

Recording credits to relevant A/Cs (e.g. 10100201, 102001, 602004, 602999, 413999,...)

Simultaneously, accountant must adjust depreciation value charged in advance as per point a of clause 2 of Article 18 herein.

Article 10. Accounting for costs incurred from centralized purchasing of fixed assets for use by SBV’s affiliates

1. At centralized purchasing units

a) When purchasing fixed assets

 (i) Purchasing units shall make requests to receive advance payments at Transaction Offices or SBV’s branches at cities or provinces where they open checking accounts according to the schedules approved by competent entities.

 (ii) SBV’s affiliates shall create logbooks of advance payments for purchase of fixed assets requested at Transaction Offices or SBV’s branches in cities or provinces where they open their checking accounts.

 (iii) Within the approved budgets, centralized purchasing units shall proceed to purchase fixed assets, concentrate all costs incurred and carry out the following accounting procedures:

Entering debits in A/C 313001- Costs of fixed asset purchases

Recording credits to relevant A/Cs (e.g. 10100201, 102001, 602004, 413999,...)

b) When transferring, handing over or delivering fixed assets to demanding affiliates

 (i) If centralized purchasing units assign their staff to transport and install these assets to be available for use at these affiliates:

- Based on reports on commissioning, acceptance testing and handover of fixed assets signed by and between purchasing units and staff members in charge of transporting and installing these assets, accountants can perform the following accounting steps:

Recording debits to A/C 315999- Other internal receivables

 (Subaccounts: Internal receivables from fixed assets in transit/Internal receivables from staff members in charge of transporting or installing fixed assets)

Recording credits to A/C 313001- Costs of fixed asset purchases

- In case of handover and delivery of fixed assets, staff members of centralized purchasing units shall be responsible for preparing reports on commissioning, handover and delivery of fixed assets with demanding affiliates.

- Upon receipt of these reports, accountants must keep the following entries:

Recording debits to A/C 315999- Other internal receivables

 (Subaccounts: Internal receivables from demanding affiliates)

Recording credits to A/C 315999- Other internal receivables

 (Subaccounts: Internal receivables from fixed assets in transit/Staff members in charge of transporting or installing fixed assets)

 (ii) If centralized purchasing units agree with suppliers on directly transferring or handing over fixed assets to demanding affiliates:

Based on reports on commissioning, transfer, handover or delivery of fixed assets signed by and between suppliers and demanding affiliates, accountants may record the following bookkeeping entries:

Recording debits to A/C 315999- Other internal receivables

 (Subaccounts: Internal receivables from demanding affiliates)

Recording credits to A/C 313001- Costs of fixed asset purchases

 (iii) In case of purchase of fixed assets at the disposal of centralized purchasing units, accountants shall record temporary entries of fixed assets as follows:

Recording debits to A/C 304001- Tangible fixed assets

And/or recording debits to A/C 304002- Intangible fixed assets

Recording credits to A/C 313001- Costs of fixed asset purchases

c) When settling costs incurred from purchase of fixed assets

Based on decisions on approval of settlement of such costs, and the list of fixed assets acquired through centralized purchasing procedures by respective demanding affiliates, centralized purchasing units must inform Debits to demanding affiliates:

Recording debits to A/C 602004- Inter-branch payments

 (centralized purchasing unit’s code; demanding affiliate’s inter-branch code)

Or recording debits to A/C 602999- Other payments between SBV’s affiliates

 (centralized purchasing unit’s code; inter-branch code: SBV’s branch in city or province where centralized purchasing unit opens its account)

Recording credits to A/C 315999- Other internal receivables

 (Subaccounts: Internal receivables from demanding affiliates)

2. At SBV’s branches in cities or provinces where centralized purchasing units open their accounts

Upon receipt of Debit transfer orders from centralized purchasing units regarding settlement value of centralized purchases of fixed assets, accountants may take the following accounting steps:

Recording debits to A/C 602004- Inter-branch payments

 (Affiliate’s codes: SBV's branches in the cities or provinces where centralized purchasing units open their accounts; inter-branch codes: demanding affiliates or SBV’s branches in cities or provinces where demanding affiliates open their accounts)

Recording credits to A/C 602999- Other payments between SBV’s affiliates

 (Affiliate’s codes: SBV’s branches in cities or provinces where centralized purchasing units open their accounts; inter-branch codes: centralized purchasing units).

3. At SBV’s branches in cities or provinces where demanding affiliates open their accounts

Upon receipt of Debit transfer orders from centralized purchasing units or SBV’s affiliates where centralized purchasing units open their accounts regarding settlement value of centralized purchases of fixed assets, accountants shall take the following accounting steps:

Recording debits to A/C 602999- Other payments between SBV’s affiliates

 (Affiliate’s codes: SBV’s branches in cities or provinces where demanding affiliates open their accounts; inter-branch codes: demanding affiliates).

Recording credits to A/C 602004- Inter-branch payments

 (Affiliate’s codes: SBV's branches in the cities or provinces where demanding affiliates open their accounts; inter-branch codes: centralized purchasing units or SBV’s branches in cities or provinces where centralized purchasing units open their accounts)

4. At demanding affiliates

a) Based on reports on commissioning, transfer or handover of fixed assets signed by and between suppliers/centralized purchasing units and demanding units, evidencing documents or records of received assets, accountants may record the following temporary entries:

Recording debits to A/C 304001- Tangible fixed assets

And/or recording debits to A/C 304002- Intangible fixed assets

Recording credits to A/C 415999- Other internal receivables

 (Subaccounts: Internal receivables from centralized purchasing units)

b) If settlement requests have not yet been approved in the financial year in question, SBV’s affiliates shall record entries of fixed assets or depreciation thereof in advance; and shall carry out adjustments in historical costs and depreciation value of fixed assets according to decisions on approval of settlement under clause 3 of Article 9 herein.

c) Upon receipt of Debit transfer orders from centralized purchasing units or SBV’s branches in cities or provinces where centralized purchasing units open their accounts or SBV’s branches in cities or provinces where demanding affiliates open their accounts in relation to settlement value of costs of centralized purchases of fixed assets, accountants must check whether costs specified on these orders are matched with those specified in decisions on approval of settlement of centralized purchase costs, reports on commissioning, transfer, handover or delivery of fixed assets, and then must take the following accounting steps:

Recording debits to A/C 415999- Other internal receivables

 (Subaccounts: Internal receivables from centralized purchasing units)

Recording credits to A/C 602004- Inter-branch payments

 (Affiliate’s codes: demanding affiliates; inter-branch codes: centralized purchasing units or SBV’s branches in cities or provinces where centralized purchasing units open their accounts)

Or recording credits to A/C 602999- Other payments between SBV’s affiliates

 (Affiliate’s codes: demanding affiliates; inter-branch codes: SBV’s branches in cities or provinces where demanding affiliates open their accounts).

5. Offset accounts included in balance sheets

At the end of a fiscal quarter or year, before SBV prepares quarterly/annual financial statements, SBV’s affiliates must check and compare accounts in order to ensure that balance in A/C 315999- Other internal receivables at centralized purchasing units is matched with balance in A/C 415999- Other internal payables at demanding affiliates in terms of entries on opposite sides; and must carry out offsetting according to regulations imposed by SBV.

Article 11. Accounting for assigned, gifted or donated fixed assets

1. At SBV’s affiliates entitled to assigned, gifted or donated fixed assets

Based on documents or records on fixed assets, reports on commissioning, transfer, handover and receipt of fixed assets, reports on revaluation of fixed assets (with respect to used fixed assets) which are assigned, gifted or donated, and decisions on receipt of fixed assets which are assigned, gifted or donated by competent entities, SBV's affiliates record received fixed assets and transfer funds to Finance – Accounting Department by taking the following accounting steps:

Recording debits to A/C 304001- Tangible fixed assets

And/or recording debits to A/C 304002- Intangible fixed assets

Recording credits to A/C 602004- Inter-branch payments

 (affiliate’s codes: SBV’s affiliates entitled to assigned, gifted or donated fixed assets; inter-branch codes: Finance – Accounting Department)

Or recording credits to A/C 602999- Other payments between SBV’s affiliates

 (affiliate’s codes: SBV’s affiliates entitled to assigned, gifted or donated fixed assets; inter-branch codes: SBV’s branches in the cities or provinces where SBV’s affiliates open their accounts)

And sending 01 set of evidencing documents to the Finance – Accounting Department as a basis to make payments.

2. At SBV’s branches in the cities or provinces where demanding affiliates open their accounts

Upon receipt of Credit transfer orders related to assigned, gifted or donated fixed assets from SBV's affiliates that open their accounts at SBV's branches in cities or provinces, these branches shall take the following accounting steps in transfer of funds to the Finance - Accounting Department:

Recording debits to A/C 602999- Other payments between SBV’s affiliates

 (affiliate’s codes: SBV’s branches in the cities or provinces where SBV's affiliates open their accounts; inter-branch codes: SBV’s affiliates entitled to assigned, gifted or donated fixed assets)

Recording credits to A/C 602004- Inter-branch payments

 (affiliate’s codes: SBV’s branches in the cities or provinces where SBV's affiliates open their accounts; inter-branch codes: Finance – Accounting Department)

3. At the Finance – Accounting Department

Based on evidencing documents received from SBV’s affiliates or SBV’s branches in the cities or provinces where SBV’s affiliates open their accounts, accountants must check whether fixed assets shown in these documents are matched with those specified in decisions on transfer of fixed assets issued by SBV’s Governor, and then take the following accounting actions:

Recording debits to A/C 602004- Inter-branch payments

 (affiliate’s codes: Finance - Accounting Department; inter-branch codes: SBV’s affiliates entitled to assigned, gifted or donated fixed assets, or SBV’s branches in the cities or provinces where SBV’s affiliates receiving such assets open their accounts)

Recording credits to A/C 501001- Allocated capital (If fixed assets are allocated by the State Budget, etc.)

Or recording credits to A/C 501002- Capital expenditures

4. If SBV directly receives fixed assets from organizations assigning, gifting or donating fixed assets, and then hands over them for use by SBV’s affiliates, units authorized to lead receipt of fixed assets (accounting for them in accordance with clause 1 of this Article) and assign them for use by SBV's affiliates (accounting for them in accordance with clause 1 of Article 14 herein).

Article 12. Accounting for excess, insufficient, lost or damaged fixed assets

1. In case of discovering excess of fixed assets

In all cases where fixed assets are found excess, causes of such excess must be identified. Based on fixed asset inventory reports and conclusions of the Inventory Committee, accountants can account for these assets in an accurate, timely and cause-specific manner.

a) At SBV’s affiliates

 (i) If fixed assets are left excess because SBV's affiliates have not yet recorded receipt thereof, accountants must refer to fixed asset documents or records in order to account for them in accordance with Article 9 and 10 herein. Simultaneously, based on historical costs and depreciation ratios, SBV's affiliates can determine depreciation value as a basis to additionally calculate and depreciate these excess assets.

 (ii) If excess fixed assets found excess are those under the control of other affiliates, accountants must promptly inform owners of these assets and return them.

Returning these fixed assets must be documented by reports on transfer, handover of fixed assets certified by Heads of SBV's affiliates involved.

 (iii) If it is unable to identify owners of fixed assets found excess, SBV’s affiliates must send their reports on these situations to SBV (via Finance - Accounting Department) to seek its proper decisions.

 (iv) During the period of pending disposition of excess fixed assets, based on inventory checking documents or records, accountants can use accounting vouchers on off-balance sheet liabilities for keeping track of fixed assets with the conventional value of 1 dong (d) per each fixed assets for use in accounting for fixed assets held in custody:

Recording debits to A/C 00900199- Other assets held in custody

 (Subaccounts: Fixed assets with unidentified owners/ Fixed assets not yet claimed by owners)

b) At the Finance – Accounting Department

In different cases of excess of fixed assets without identified owners at SBV's affiliates, the Finance - Accounting Department shall give different instructions.

2. In case where fixed assets are found insufficient or have gone missing or are damaged, SBV’s affiliates must clarify causes, charge persons involved in such faults (if any) and impose possible sanctions according to existing regulations, and perform the following accounting steps:

a) Recording decreases in fixed assets

 (i) If fixed assets have not been fully depreciated

Based on reports on disposition of fixed assets in case of being insufficient, lost or damaged, and documents or records on fixed assets, accountants shall record decreases in fixed assets:

 (ii) In case where fixed assets are fully depreciated

Based on reports on disposition of fixed assets in case of being insufficient, lost or damaged, and documents or records on fixed assets, accountants shall record decreases in fixed assets:

Committees on disposition of insufficient or lost or damaged fixed assets must define causes, blame responsible persons and identify amounts of compensation, and seek competent entity's approval thereof in accordance with SBV’s financial regulations currently in force. If compensations paid by defaulting persons and indemnities paid by insurance firms are inadequate, SBV's affiliates shall take actions prescribed in current regulations of the State and SBV on dealing with loss or damage.

b) Upon receipt of decisions on identification of compensation responsibilities and amounts of compensation, and decisions on addressing asset loss or damage (if any), accountants must take the following accounting steps:

c) Accountants must account for gains from product waste or scrap (if any), expenses related to disposition of damaged fixed assets

d) Accountants must account for money received from compensations paid by staff members and insurance companies:

Recording debits to relevant A/Cs (e.g. 10100201, 102001,...)

Recording credits to A/C 314999- Other receivables from customers

 (subaccounts reflecting other receivables from fixed asset insurance companies)

Or recording credits to A/C 315005- Compensations paid by staff members

 (subaccounts reflecting compensations paid by specific staff members)

Article 13. Accounting for revaluation of fixed assets

Revaluation of fixed assets can be carried out only when it is allowed by laws. Based on competent entity’s decisions on revaluation of fixed assets and reports on revaluation of fixed assets, SBV’s affiliates shall prepare evidencing documents on accounting for value increased or decreased owing to revaluation, and entering historical costs of fixed assets, increased or decreased depreciation and post-valuation residual value in tags or labels of fixed assets:

1. Accounting for increasing revaluation of fixed assets

a) At SBV’s affiliates:

Recording debits to A/C 304001- Tangible fixed assets

And/or recording debits to A/C 304002- Intangible fixed assets

Increased historical costs of fixed assets

Recording credits to A/C 30400501- Depreciation of tangible fixed assets

And/or recording credits to A/C 30400502- Amortization of intangible fixed assets

Increased amortization value

Recording credits to A/C 602004- Inter-branch payments

 (affiliate’s codes: SBV’s affiliates having fixed assets of which value is increased after revaluation; inter-branch codes: Finance – Accounting Department)

Or recording credits to A/C 602999- Other payments between SBV’s affiliates

 (affiliate’s codes: SBV’s affiliates having fixed assets of which value is increased after revaluation; inter-branch codes: SBV’s branches in the cities or provinces where SBV’s affiliates open their accounts)

And sending 01 set of evidencing documents to the Finance – Accounting Department as a basis to carry out accounting activities.

b) At SBV’s branches in the cities or provinces where SBV’s affiliates open their accounts

Upon receipt of postings on transfer of assets of which value is increased due to revaluation from SBV’s affiliates opening accounts at SBV's branches in cities or provinces, these branches shall carry forward assets to the Finance - Accounting Department:

Recording debits to A/C 602999- Other payments between SBV’s affiliates

 (affiliate’s codes: SBV’s branches in the cities or provinces where SBV’s affiliates open their accounts; inter-branch codes: SBV’s affiliates having fixed assets of which value is increased after revaluation)

Recording credits to A/C 602004- Inter-branch payments

 (affiliate’s codes: SBV’s branches in the cities or provinces where SBV's affiliates open their accounts; inter-branch codes: Finance – Accounting Department)

c) At the Finance – Accounting Department

Upon receipt of Credit transfer documents from SBV's affiliates or SBV’s branches in cities or provinces where SBV's affiliates open their accounts, and reports on revaluation of fixed assets from SBV's affiliates obtaining permission for the increasing valuation of historical costs of fixed assets, together with competent entity’s decisions on revaluation of fixed assets, accountants shall take the following accounting actions:

Recording debits to A/C 602004- Inter-branch payments

 (affiliate’s codes: Finance – Accounting Department; inter-branch codes: SBV’s affiliates having fixed assets of which value is increased after revaluation or SBV’s branches in cities or provinces where SBV’s affiliates open their accounts)

Recording credits to A/C 501003- Capital gains from revaluation of assets

2. Accounting for decreasing revaluation of fixed assets

a) At SBV’s affiliates:

Recording debits to A/C 602004- Inter-branch payments

 (affiliate’s codes: SBV’s affiliates having fixed assets of which value is decreased after revaluation; inter-branch codes: Finance – Accounting Department)

Or recording debits to A/C 602999- Other payments between SBV’s affiliates

 (affiliate’s codes: SBV’s affiliates having fixed assets of which value is decreased due to revaluation; inter-branch codes: SBV’s branches in the cities or provinces where SBV’s affiliates open their accounts)

Recording debits to A/C 30400501- Depreciation of tangible fixed assets

And/or recording credits to A/C 30400502- Amortization of intangible fixed assets

Decreased amortization value

Recording credits to A/C 304001- Tangible fixed assets

And/or recording credits to A/C 304002- Intangible fixed assets

Historical costs of decreased fixed assets

b) At SBV’s branches in the cities or provinces where SBV’s affiliates open their accounts

Upon receipt of postings on transfer of assets of which value is increased due to revaluation from SBV’s affiliates opening accounts at SBV's branches in cities or provinces, these branches shall take the following accounting actions:

Recording debits to A/C 602004- Inter-branch payments

 (affiliate’s codes: SBV’s branches in the cities or provinces where SBV's affiliates open their accounts; inter-branch codes: Finance – Accounting Department)

Recording credits to A/C 602999- Other payments between SBV’s affiliates

 (affiliate’s codes: SBV’s branches in the cities or provinces where SBV’s affiliates open their accounts; inter-branch codes: SBV’s affiliates having fixed assets of which value is decreased due to revaluation)

c) At the Finance – Accounting Department

Upon receipt of Debit transfer documents from SBV's affiliates or SBV’s branches in cities or provinces where SBV's affiliates open their accounts, and reports on revaluation of fixed assets from SBV's affiliates obtaining permission for the decreasing valuation of historical costs of fixed assets, together with competent entity’s decisions on revaluation of fixed assets, accountants shall take the following accounting actions:

Article 14. Accounting for transfer of fixed assets

1. Intra-corporate transfer of fixed assets within the SBV’s system

a) At transferors: Based on decisions on intra-corporate transfer of fixed assets issued by SBV's Governor and documents on fixed assets, together with reports on commissioning, acceptance testing, handover or transfer of fixed assets, accountants shall take the following accounting steps:

b) At SBV’s branches in the cities or provinces where SBV’s transferor affiliates open their accounts

Upon receipt of postings on transfer of assets from SBV’s transferor affiliates to SBV’s transferee affiliates, accountants may take the following accounting steps:

c) At SBV’s branches in the cities or provinces where SBV’s transferee affiliates open their accounts

Upon receipt of postings on transfer of fixed assets in question from SBV’s transferor affiliates or SBV where SBV's transferor affiliates open their accounts, accountants shall take the following accounting steps:

d) At transferees: Upon receipt of fixed assets and sets of documents on fixed assets from transferor affiliates, accountants shall check whether data shown thereon are matched with those shown on decisions on intra-corporate transfer of assets issued by SBV’s Governor, transferee affiliates must fully implement procedures for receipt of fixed assets and receive the following postings on such transfer:

2. Accounting for outward transfer of fixed assets between SBV and outside entities

a) If SBV is a transferor entity

 (i) At SBV’s transferor affiliates:

Based on decisions on transfer of fixed assets, SBV’s affiliates shall carry out procedures for handover of fixed assets and documents on these fixed assets to outside entities. After completion of procedures, based on reports on commissioning, acceptance testing, handover and receipt of fixed assets, SBV's affiliates shall transfer these assets and carry out the following accounting activities:

After completion of transfer of fixed assets, SBV’s affiliates must record such transfer in tags or labels of transferred fixed assets (at sections intended for recording of decreases in fixed assets) and registers of fixed assets.

 (ii) At SBV’s branches in the cities or provinces where SBV’s transferor affiliates open their accounts

Upon receipt of postings on transfer of fixed assets from SBV’s transferor affiliates, accountants may take the following accounting steps:

 (iii) At Finance – Accounting Department:

Upon receipt of documents, reports on commissioning, acceptance testing, handover and receipt of fixed assets from SBV's transferor affiliates, and copies of Decisions on transfer of fixed assets, accountants shall take the following accounting steps:

b) If SBV is a transferee entity

 (i) At transferee affiliates:

Upon receipt of fixed assets and sets of documents on fixed assets from transferee affiliates, after checking whether data shown thereon are matched with those shown on decisions on transfer of fixed assets, transferee affiliates must fully implement procedures for receipt of fixed assets and record entries of receipt of fixed assets, and carry forward funds (residual value of received fixed assets) to Finance – Accounting Department:

 (ii) At SBV’s branches in the cities or provinces where SBV’s transferee affiliates open their accounts

Upon receipt of postings on transfer of funds (residual value of transferred fixed assets) from transferee affiliates, SBV’s branches in cities or provinces shall take the following accounting actions:

 (iii) At Finance – Accounting Department:

Upon receipt of documents, reports on commissioning, acceptance testing, handover and receipt of fixed assets from SBV's transferee affiliates, and copies of Decisions on transfer of fixed assets, accountants shall take the following accounting steps:

Article 15. Accounting for fixed assets under operating leases

1. Upon receipt of written decisions on approval of operating lease on fixed assets from competent entities, SBV’s affiliates shall rent fixed assets.

2. In principle, fixed assets that SBV's affiliates rent shall not be recorded as increases in historical costs thereof. Rentals shall be recorded as costs at SBV's lessor affiliates and shall be distributed according to the straight-line method during the lease term.

3. Bookkeeping and accounting approaches

a) Accounting for value of fixed assets leased from outside:

SBV’s affiliates shall only account for value of leased assets if these assets fixed assets and they are authorized to directly manage and use them during the lease term.

Immediately after receipt of fixed assets leased from outside, based on agreements on lease of fixed assets which have already been effected, SBV’s affiliates shall prepare accounting vouchers to record debits to off-balance sheet accounts to account for value of these assets according to the following process:

Simultaneously, accountants need to use logbooks for indexing fixed assets leased from outside by specific individual or institutional lessors, fixed assets and types of fixed assets.

b) Accounting for payment of rentals:

 (i) In case of monthly payment of rentals, accountants shall record the following bookkeeping entries:

 (ii) In case of instalment payment of rentals, accountants shall record the following bookkeeping entries:

On a monthly basis, accountants shall gradually charge monthly rentals paid in advance into expenses:

 (iii) In case where rentals are paid in arrears (regular payments made in arrears or one-off payments made after completion of leases):

On a monthly basis, accountants shall charge and account for rentals payable as expenses:

In order to reflect payment of rentals, accountants shall take accounting steps, including:

c) Accounting for rentals on termination of leases: Based on leases, SBV’s affiliates shall prepare accounting vouchers to record credits to off-balance sheet accounts to account for settlement of costs of leased fixed assets, return and hand over leased fixed assets to lessors:

Article 16. Accounting for sale and liquidation of fixed assets

Based on notices of approval of sale or liquidation of fixed assets at SBV's affiliates from competent entities, SBV's affiliates shall carry out sale and liquidation of fixed assets. Below are detailed bookkeeping entries:

1. Accountants can account for gains from sale and liquidation of fixed assets as follows:

Simultaneously, accountants shall charge them into temporarily custodial accounts at State Treasury that Departments of Finance hold, and take the following accounting steps:

Recording credits to A/C 414999- Other payables to the outside

Recording credits to relevant A/Cs (e.g. 10100201, 102001,...)

2. SBV’s affiliates shall consolidate all of costs related to sale or liquidation of assets and shall take the following accounting steps:

Recording credits to relevant A/Cs (e.g. 10100201, 414999,...)

3. Accountants shall record entries as decreases in fixed assets due to sale and liquidation as follows:

After sale or liquidation of fixed assets, SBV’s affiliates must record such transaction in tags or labels of such assets (recording decreases in fixed assets) and must store these tags or labels in documents and records on liquidation of fixed assets; simultaneously, must record them into fixed asset registers.

4. Accounting for expenses and revenues related to sale and liquidation of fixed assets that Departments of Finance remits

Based on valid and legitimate documents and records about costs of sale and liquidation of fixed assets within approved cost estimates, accountants must check whether such costs are matched with account holders’ temporarily custodial sums awaiting remittance, and must take the following accounting steps:

Article 17. Accounting for expansion, repair and improvement of fixed assets

1. Accounting for repair of fixed assets

a) Regular repair of fixed assets:

- Whenever costs of regular repair of fixed assets arise, SBV's affiliates shall prepare adequate documents and records, and take the following accounting steps:

Recording debits to A/C 315002- Advances on repair and maintenance of assets

Recording credits to relevant A/Cs (e.g. 10100201, 102001, 602004,...)

- With respect to regular repair of fixed assets, based on valid and legitimate documents and records on repair of fixed assets, accountants shall take the following accounting steps:

Recording debits to A/C 811002- Maintenance and repair of assets

Recording credits to A/C 315002- Advances on repair and maintenance of assets

b) Major repair of fixed assets for the purposes of restoring assets to their original condition:

- Whenever major repair of fixed assets is needed, SBV's affiliates can decide to carry out major repair of fixed assets provided that costs thereof fall within approved cost estimates. Based on valid and legitimate documents and records, accountants shall take the following accounting steps:

Recording debits to A/C 31300201- Major repair of fixed assets

Recording credits to relevant A/Cs (e.g. 10100201, 102001,...)

- In case of settling costs of major repair of fixed assets, SBV's affiliates shall refer to reports on commissioning, acceptance testing, handover and receipt of fixed assets after completion of major repair, written documents on settlement approved by competent entities and other relevant records or documents in order to take the following accounting actions:

Recording debits to A/C 811002- Maintenance and repair of assets

Recording credits to A/C 31300201- Major repair of fixed assets

2. Accounting for expansion, repair and improvement of fixed assets

Expansion, repair or improvement of fixed assets may be recorded as increases in historical costs of assets if these assets attain higher standards than their original condition; these activities help increase their useful life or reduce operating costs or boost their capacity.

a) In case where expansion, repair or improvement of fixed assets is recorded as increases in historical costs thereof, but the depreciation period is not changed

- Accountants may increase historical costs the same as those of fixed assets acquired upon purchases as provided in Article 9 herein.

- SBV’s affiliates must calculate monthly depreciation value again according to the following formula:

Monthly depreciation value of a fixed asset is defined by dividing the difference between historical cost of that fixed asset after completion of improvement, expansion or repair and accumulated depreciation value of that fixed asset by the residual depreciation period of that fixed asset expressed in month.

- Accountants must depreciate these fixed assets after such activities as per clause 1 of Article 18 herein.

b) In case where expansion, repair or improvement of fixed assets helps increase historical costs of fixed assets and lengthen the depreciation period

- Accountants may increase historical costs the same as those of fixed assets acquired upon purchases as provided in Article 9 herein.

- SBV’s affiliates must calculate monthly depreciation value again according to the following formula:

In particular, depreciation period redetermined after improvement, expansion or repair of fixed asset is calculated on the basis of the residual depreciation period and the additional depreciation period specified in technical documentation approved by competent entities.

- Accountants must depreciate these fixed assets after such activities as per clause 1 of Article 18 herein.

Article 18. Accounting for depreciation of fixed assets

1. On a monthly basis, SBV’s affiliates shall check and make comparison between data on calculation of depreciation on the FA branch by using the form given in Appendix 10 hereto, and account for depreciation value to be charged at each affiliate on the GL branch. Calculation and charging of depreciation of fixed assets commence at the time of completion, commissioning and use of fixed assets, not based on the time of recording of receipt of fixed assets.

Based on fixed asset depreciation datasheets that are already checked to ensure data accuracy, accountants may prepare accounting vouchers to record the following entries:

2. Adjustments made in case of overcharging or undercharging depreciation of fixed assets

a) Adjusting depreciation value after cost settlement requests are approved

After adjusting historical costs of fixed assets to value specified in approved cost estimates, SBV’s affiliates shall calculate depreciation value to be charged by specific fixed assets, and account for such adjustment if the year of approval of cost estimate differs from the fiscal year of recording of temporary entries of fixed assets:

 (i) If the depreciation value to be charged is greater than the depreciation value already charged, SBV’s affiliates shall transfer the undercharged depreciation value to SBV (Finance – Accounting Department) in order to record such value to the account reflecting differences between revenues and expenditures in the previous year:

- At SBV’s affiliates: Based on fixed asset depreciation datasheets, after calculating depreciation value that need to be adjusted, SBV's affiliates shall prepare accounting vouchers to transfer debits by taking the following steps:

- At SBV’s branches in the cities or provinces where SBV’s affiliates open their accounts

Upon receipt of accounting vouchers on transfer of debits from SBV’s affiliates, SBV’s branches in cities or provinces shall take accounting steps as follows:

- At the Finance – Accounting Department: Upon receipt of accounting vouchers on transfer of debits from SBV’s affiliates or SBV’s branches in cities or provinces where these affiliates open their accounts, accountants shall take accounting steps as follows:

 (ii) If depreciation value needing to be charged is less than depreciation value already charged, SBV's affiliates need to reduce the latter:

- At SBV’s affiliates: Based on fixed asset depreciation datasheets, after calculating depreciation value that need to be adjusted, SBV's affiliates shall prepare accounting vouchers to transfer credits by taking the following steps:

- At SBV’s branches in the cities or provinces where SBV’s affiliates open their accounts:

Upon receipt of accounting vouchers on transfer of credits from SBV’s affiliates, SBV’s branches in cities or provinces shall take accounting steps as follows:

- At the Finance – Accounting Department: Upon receipt of accounting vouchers on transfer of credits from SBV’s affiliates or SBV’s branches in cities or provinces where these affiliates open their accounts, accountants shall take accounting steps as follows:

b) Adjusting depreciation value upon requests of State Audit and Internal Audits

Based on audit reports, SBV’s affiliates shall carry out inspection, review and calculation of overcharged/undercharged depreciation value and make adjustments in depreciation value already charged with respect to specific fixed assets, and take accounting actions according to SBV’s instructions in specific circumstances.

Chapter III

REGULATIONS ON ACCOUNTING FOR TOOLS, INSTRUMENTS AND SUPPLIES

Article 19. Bookkeeping accounts, accounting vouchers, documents and books for use in accounting for tools, instruments and supplies

1. Bookkeeping accounts

The following main accounts shall be used for accounting for tools, instruments and supplies:

- A/C 305- Other assets kept in warehouses

 (Relevant accounts used for keeping track of tools, instruments and supplies kept in warehouses)

- A/C 314999- Other receivables from customers

- A/C 315999- Other internal receivables

- A/C 81100302- Other expenses for liquidation of fixed assets

- A/C 811004- Expenses for purchase of tools and instruments

- A/C 009002- Leased assets; subaccount: Leased tools and instruments

- A/C 010- Tools and instruments currently in use

Details, characteristics and compositions of these accounts shall be subject to detailed regulations set out in the SBV's Chart of Accounts.

2. Accounting vouchers, documents and books

The following main accounting documents, records and books shall be used for accounting for tools, instruments and supplies:

- Logbook of fixed assets, tools, instruments and supplies available at places where they are used (Appendix 11)

- Accounting voucher of debits to off-balance sheet accounts (Appendix 12)

- Accounting voucher of credits to off-balance sheet accounts (Appendix 13)

- Note of receipt (Appendix 14)

- Note of dispatch (Appendix 15)

- Inspection report on receipt of tools, instruments and supplies (Appendix 16)

- Report on handover of tools, instruments and supplies (Appendix 17)

- Report on inventory checking of tools, instruments and supplies currently in use (Appendix 18)

- Report on inventory checking of tools and instruments and supplies kept in warehouses (Appendix 19a)

- Report on inventory checking of supplies kept in warehouses (Appendix 19b)

- Report on liquidation of tools, instruments and supplies (Appendix 20)

- Warehouse register/tag (Appendix 21)

- Logbook of tools, instruments kept in warehouses (Appendix 22a)

- Logbook of supplies kept in warehouses (Appendix 22b)

- Notice of missing or damaged tools, instruments (Appendix 23)

- Set of invoices or evidencing documents issued by suppliers.

Article 20. Accounting for centralized purchasing of tools and instruments

1. At centralized purchasing units

a) Advance payments to suppliers

If advance payments to suppliers fall within the approved cost estimate under agreements on purchase of tools and instruments, accountants shall take the following accounting steps:

Recording debits to A/C 314999- Other receivables from customers

Recording credits to relevant A/Cs (e.g. 10100201, 102001, 602004, 602999,...)

b) If tools and instruments are purchased, handed over and installed for demanding affiliates, or installed for centralized purchasing units themselves, accountants shall take accounting actions as follows:

The following entries shall be recorded in case of purchasing tools and instruments for centralized purchasing units themselves, and posting entries to off-balance sheet accounts or those accounts used for tracking tools and instruments moved out of warehouses for use:

c) Accounting activities mentioned below shall be performed in case of accounting for tools and instruments acquired from centralized purchases

After tools and instruments have already been completely handed over and delivered to demanding affiliates, based on approved application documentation for settlement of costs, lists of tools and instruments acquired from centralized purchases, issued by specific demanding affiliates, reports on commissioning, handover and receipt of tools, instruments, and other relevant documents or records, accountants shall take the following accounting steps:

 (i) If approved estimated costs of tools or instruments are equal to purchase costs thereof

Centralized purchasing units shall carry forward debits to demanding affiliates in accordance with point c of clause 1 of Article 10 herein.

 (ii) If approved estimated costs of tools or instruments are less than purchase costs thereof

- Upon adjusting costs of tools or instruments handed over or delivered to demanding affiliates, or costs of tools or instruments already installed or put to use at centralized purchasing units themselves, accountants shall post the following entries to accounts:

In addition, accountants shall request demanding affiliates to adjust costs of tools and instruments currently tracked as entries on off-balance sheet accounts; and finding all possible measures to retrieve differences between costs approved for settlement and costs already paid (if any).

2. At SBV’s branches in cities or provinces where centralized purchasing units open their accounts

Accountants shall carry forward costs approved for settlement upon centralized purchase of tools or instruments in accordance with clause 2 of Article 10 herein.

3. At SBV’s branches in cities or provinces where demanding affiliates open their accounts

Accountants shall carry forward costs approved for settlement upon centralized purchase of tools or instruments in accordance with clause 3 of Article 10 herein.

4. At demanding affiliates

a) Upon receipt of tools or instruments from centralized purchasing units, based on reports on commissioning, handover and reception of tools and instruments, and other documents or records, accountants shall perform the following accounting activities:

Recording debits to A/C 010- Tools and instruments currently in use

b) Upon receipt of final accounts of tools and instruments

 (i) When receiving notices, enclosing final accounts, from centralized purchasing units, including requests for adjustments in costs of tools and instruments before settlement of purchase costs is carried out, demanding affiliates must make decreasing adjustments in costs of tools or instruments on off-balance sheet accounts, and perform the following accounting activities:

Crediting A/C 010- Tools and instruments currently in use

 (ii) Upon receipt of orders of transfer of debits to costs of tools or instruments acquired from centralized purchases, accountants shall take the following accounting actions:

 (iii) On a periodic basis, SBV’s demanding affiliates must carry out distribution of costs of purchased tools and instruments in accordance with regulations adopted by SBV (Finance - Accounting Department) to fit with predetermined cost distribution ratios (if any):

Debiting relevant A/Cs (e.g. 811004,...)

Crediting A/C 318999- Other costs awaiting distribution

Article 21. Accounting for tools, instruments and supplies purchased by end-user affiliates

1. At the stage of giving and receiving advance on costs of purchase of tools, instruments or supplies

If these costs fall within the approved cost estimate, SBV’s affiliates shall be authorized to purchase tools, instruments and supplies.

Whilst paying costs of purchase of tools, instruments or supplies in advance, accountants must prepare accounting vouchers, including:

Recording debits to relevant A/Cs (e.g. 315001, 314999,...)

Recording credits to relevant A/Cs (e.g. 10100201, 102001, 602004, 602999,...)

2. At the stage of completion of purchase of tools, instruments or supplies

a) With respect to tools, instruments or supplies purchased but kept in warehouses, not yet promptly put to use

At the stage of being kept in warehouses: Based on invoices and documents, and inspection reports on receipt of tools, instruments or supplies (if any), accountants shall prepare notes of receipt, issue accounting vouchers for final settlement of advance on these costs, and perform the following accounting activities:

In addition, accountants must record them into logbooks of tools, instruments kept in warehouses/ logbooks of supplies kept in warehouses.

b) With respect to tools, instruments or supplies purchased and promptly put in use

Based on invoices and documents, and inspection reports on receipt of tools, instruments or supplies (if any), accountants shall prepare notes of receipt, issue accounting vouchers for final settlement of advance on these costs, or make payments to sellers, and take the following accounting steps:

In addition, with respect to tools and instruments put to use, accountants must record them in registers of fixed assets, tools and instruments at places where they are used, and must prepare accounting vouchers to recording debits to entries on off-balance sheet accounts to track costs of tools and instruments put to use:

Recording debits to A/C 010- Tools and instruments currently in use

Article 22. Accounting for movement of tools, instruments and supplies out of warehouses for use

With respect to movement of tools, instruments and supplies out of warehouses for use: Based on approved requests for provision of tools, instruments and supplies, accountants shall prepare notes of dispatch and record them into logbooks of tools, instruments kept in warehouses/ logbooks of supplies kept in warehouses, and perform the following accounting activities:

In addition, with respect to tools and instruments moved out of warehouses for use, based on reports on transfer and handover of tools, instruments or supplies, accountants must record them in registers of fixed assets, tools and instruments at places where they are used, and must prepare accounting vouchers to recording debits to entries on off-balance sheet accounts to track costs of tools and instruments moved out of warehouses for use:

Recording debits to A/C 010- Tools and instruments currently in use

Article 23. Accounting for liquidation of tools, instruments and supplies

Upon receipt of approval of liquidation of tools, instruments and supplies available at SBV’s affiliates from competent authorities, SBV’s affiliates shall proceed to sell and liquidate tools, instruments and supplies, and shall perform the following accounting activities:

1. Accountants shall account for gains from liquidation of tools, instruments and supplies as follows:

a) Liquidation of tools, instruments and supplies:

b) Depositing these gains into temporarily custodial accounts at State Treasury that Departments of Finance hold, and taking the following accounting steps:

Recording credits to A/C 414999- Other payables to the outside

Recording credits to relevant A/Cs (e.g. 10100201, 102001,...)

2. Accountants shall account for expenses for liquidation of tools, instruments and supplies that fall within the approved cost estimate, based on valid and legitimate evidencing documents, as follows:

Recording debits to A/C 314999- Other receivables from customers

Recording credits to relevant A/Cs (e.g. 10100201, 102001,...)

3. Recording entries on decreases in tools, instruments and supplies owing to liquidation, including:

a) Liquidation of tools and instruments currently in use

- Based on reports on liquidation of tools, instruments and supplies, and other relevant documents, accountants shall prepare accounting vouchers to record credits to off-balance sheet accounts:

Crediting A/C 010- Tools and instruments currently in use

In addition, accountants can halt tracking of liquidated tools and instruments on registers of fixed assets, tools and instruments at places where they are used.

- With respect to sums for purchase of tools and instruments currently tracked on Account 318999- Other expenses awaiting distribution, accountants shall take the following accounting steps:

Recording debits to A/C 81100302- Other expenses for liquidation of fixed assets

Recording credits to A/C 318999- Other costs awaiting distribution

b) Liquidation of tools, instruments and supplies kept in warehouses

Based on reports on liquidation of tools, instruments and supplies, written documents on compensation (if any) issued by insurance companies, and other related documents or records, accountants shall take the following accounting activities:

In addition, accountants must discontinue tracking of them in logbooks of tools, instruments kept in warehouses/ logbooks of supplies kept in warehouses.

4. Accounting for expenses and revenues related to sale and liquidation of fixed assets that Departments of Finance remits

Based on valid and legitimate documents and records about costs of sale and liquidation of fixed assets within approved cost estimates, accountants must check whether such costs are matched with account holders’ temporarily custodial sums awaiting remittance, and must take the following accounting steps:

Article 24. Accounting for tools, instruments and supplies in case of surplus, deficiency, loss or damage thereof

1. In case of surplus of tools, instruments and supplies

In all cases where tools, instruments and supplies are found surplus, causes for surplus must be identified. Based on reports on inventory checking of tools, instruments and supplies, and conclusions of the Inventory Committee, accountants can account for these assets in an accurate, timely and cause-specific manner.

Accounting method shall be the same as the one applied in case of surplus of fixed assets as provided in clause 1 of Article 12 herein.

2. In case of deficiency, loss or damage of tools, instruments and supplies

Upon discovering deficiency, damage or loss of tools, instruments or supplies, SBV’s affiliates must identify causes, charge responsible persons (if any) and impose sanctions in accordance with SBV’s regulations currently in force. If compensations paid by defaulting persons and indemnities paid by insurance firms are inadequate, SBV's affiliates shall take actions prescribed in current regulations of the State and SBV on dealing with loss and damage of assets. Accounting steps shall include:

a) Recording decreases in value of tools, instruments or supplies

 (i) In case of deficiency, loss or damage of tools, instruments and supplies kept in warehouses

Based on reports on response to deficiency or loss or damage of tools, instruments or supplies kept in warehouses, accountants shall record decreases in tools, instruments and supplies as follows:

Recording credits to A/C 315004- Embezzlement, loss or insufficient of money, assets awaiting disposition

Recording credits to A/C 305- Other assets kept in warehouses

 (ii) In case of deficiency, loss or damage of tools, instruments and supplies currently in use

- Based on reports on response to deficiency or loss or damage of tools, instruments or supplies kept in warehouses, accountants shall record decreases in tools, instruments and supplies as follows:

Crediting A/C 010- Tools and instruments currently in use

- With respect to sums for purchase of tools and instruments currently tracked on Account 318999- Other expenses awaiting distribution, accountants shall take the following accounting steps:

Debiting A/C 899999- Other expenses

Crediting A/C 318999- Other costs awaiting distribution

b) Accounting for revenues and expenses related to deficiency or loss of tools, instruments or supplies or disposition of damaged tools, instruments or supplies

 (i) Upon receipt of decisions on identification of compensation responsibilities and amounts of compensation, and decisions on addressing loss or damage (if any), accountants must take the following accounting steps:

 (ii) Below are accounting steps for sums gained from product waste or scrap (if any) and expenses associated with disposition of damaged tools, instruments and supplies:

 (iii) Accountants shall account for money received from compensations paid by staff members and insurance companies:

Article 25. Accounting for transfer of tools and instruments

1. In case of transfer of tools and instruments currently in use

a) At transferors:

Based on decisions on transfer of tools or instruments from SBV’s Governor and reports on commissioning, transfer and handover of tools or instruments, accountants shall prepare accounting vouchers to record credits to off-balance sheet accounts:

Crediting A/C 010- Tools and instruments currently in use

In addition, accountants can halt tracking of transferred tools and instruments on registers of fixed assets, tools and instruments at places where they are used.

b) At transferees:

Based on decisions on transfer of tools or instruments from SBV’s Governor and reports on commissioning, transfer and handover of tools or instruments, accountants shall prepare accounting vouchers to record debits to off-balance sheet accounts:

Recording debits to A/C 010- Tools and instruments currently in use

In addition, accountants can halt tracking of transferred tools and instruments on registers of fixed assets, tools and instruments at places where they are used.

2. In case of transfer of tools and instruments kept in warehouses

a) At transferors: Based on decisions on transfer of tools or instruments from SBV’s Governor and reports on commissioning, transfer and handover of tools or instruments, accountants shall send debit transfer orders to transferee and take the following accounting actions:

b) At SBV’s branches in the cities or provinces where SBV’s transferor affiliates open their accounts

Accounting method shall be the same as the one applied in case of transfer of tools and instruments according to their historical costs as provided in point b of clause 1 of Article 14 herein.

c) At SBV’s branches in the cities or provinces where SBV’s transferee affiliates open their accounts

Accounting method shall be the same as the one applied in case of transfer of tools and instruments according to their historical costs as provided in point c of clause 1 of Article 14 herein.

d) At transferees: Upon receipt of tools and instruments from transferors, after checking whether they are matched with data shown on decisions on transfer of tools or instruments issued by SBV's Governor, transferee affiliates must fully implement procedures for receipt of tools or instruments, and take the following accounting actions:

Based on debit transfer orders issued by transferors, transferee affiliates shall check whether data shown thereon are matched with those shown on reports on commissioning, transfer and receipt of tools or instruments, and shall take the following accounting steps:

Article 26. Accounting for renting of tools and instruments

Costs of renting of tools or instruments shall be recorded as internal costs and shall be distributed according to the straight-line method during the lease term.

1. Accounting for value of leased tools or instruments

Immediately after receipt of tools or instruments leased from outside, based on agreements on lease of tools or instruments which have already been effected, accountants shall prepare accounting vouchers to record debits to off-balance sheet accounts to account for value of these tools or instruments according to the following process:

Simultaneously, accountants need to use logbooks for indexing tools or instruments leased from outside by specific individual or institutional lessors and types of tools or instruments.

2. Accounting for payment of rentals

- In case of monthly payments: Accountants shall take accounting steps as follows:

- In case of prepaid payment of rentals of tools or instruments for use in multiple terms, accountants shall take the following accounting steps:

On a monthly basis, accountants shall gradually charge prepaid payment of rentals of tools or instruments into expenses:

- In case where rentals are paid in arrears (regular payments made in arrears or one-off payments made after completion of leases):

On a monthly basis, accountants shall charge and account for rentals payable as expenses:

Upon payment of rentals of tools or instruments, accountants shall perform the following accounting activities:

3. Accounting for rentals upon termination of leases: Based on agreements on lease of tools or instruments which have already been effected, accountants shall prepare accounting vouchers to record credits to off-balance sheet accounts to account for final settlement of value of leased tools or instruments, and return them to lessors:

Crediting A/C 009002- Leased assets

 (Subaccount reflecting tools and instruments leased from outside)

Article 27. Accounting for assigned, gifted or donated tools or instruments

At SBV’s affiliates receiving assigned, gifted or donated tools or instruments

Based on reports on commissioning, transfer, handover and receipt of tools or instruments, reports on revaluation of assigned, gifted or donated tools or instruments, and decisions on receipt of assigned, gifted or donated tools issued by competent authorities, SBV’s affiliates shall move them to warehouses or promptly put them to use, and take the following accounting actions:

In case of immediate use of these tools or instruments, accountants shall prepare accounting vouchers to record debits to off-balance sheet accounts as follows:

Recording debits to A/C 010- Tools and instruments currently in use

Chapter IV

IMPLEMENTARY RESPONSIBILITIES AND IMPLEMENTATION PROVISIONS

Article 28. Responsibilities of SBV’s affiliates

1. Information Technology Department shall take charge of upgrading and modifying core banking and accounting software systems, and making budgetary plans meeting regulations laid down herein.

2. Finance – Accounting Department shall act as a body presiding over issues relating to implementation of this Circular.

3. Internal Audit Department shall be responsible for inspecting and supervising implementation of this Circular.

4. SBV’s affiliates shall be responsible for complying with provisions of this Circular and other provisions of relevant laws.

Article 29. Entry into force

1. This Circular shall enter into force on March 1, 2020.

2. Decision No. 32/2008/QD-NHNN dated December 3, 2008 of SBV’s Governor, adopting SBV’s Regulations on accounting for fixed assets, tools, instruments and supplies, shall be repeal from the entry into force of this Circular.

Article 30. Implementation

Office Chief, Director of Finance - Accounting Department, Heads of the State Bank’s affiliates concerned and Directors of SBV’s branches in provinces and centrally-affiliated cities shall be responsible for implementing this Circular./.

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