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THE MINISTRY OF
FINANCE OF VIETNAM
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THE SOCIALIST
REPUBLIC OF VIET NAM
Independence-Freedom-Happiness
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No. 71/2024/TT-BTC
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Hanoi, October
07, 2024
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CIRCULAR
GUIDELINES ON
ACCOUNTING FOR COOPERATIVES AND COOPERATIVE UNIONS
Pursuant to the Law on Accounting dated November
20, 2015;
Pursuant to the Law on Cooperatives dated June
20, 2023;
Pursuant to the Government’s Decree No.
14/2023/ND-CP dated April 20, 2023 defining functions, tasks, powers and
organizational structure of the Ministry of Finance of Vietnam;
Pursuant to the Government’s Decree No.
113/2024/ND-CP dated September 12, 2024 elaborating the Law on Cooperatives;
At the request of the Director of the Department
of Accounting and Auditing Regulations;
The Minister of Finance of Vietnam promulgates a
Circular providing guidelines on accounting for cooperatives and cooperative
unions.
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GENERAL PROVISIONS
Article 1. Scope
This Circular provides guidelines for accounting records,
chart of accounts, rules for making accounting books, preparation and
presentation of financial statements of cooperatives and cooperative unions
(hereinafter referred to as "cooperatives”). This Circular does not apply
to determination of cooperatives' tax liabilities towards state budget.
Accounting records shall be used as the basis for recording any economic
transactions that occur and have been completed in accounting books.
Cooperatives must comply with relevant regulations of laws, mechanisms and
policies when conducting economic transactions.
Article 2. Regulated entities
This Circular applies to the cooperatives that are
established and operating under the Law on Cooperatives.
Chapter II
SPECIFIC PROVISIONS
Article 3. Chart of accounts
1. The chart of accounts is used for classifying
and systemizing economic/financial transactions by economic contents.
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3. Subaccounts of the accounts on the chart of
accounts (in Appendix I enclosed herewith) may be created to meet management
requirements of the cooperative.
4. The addition of any account of the same level
with that of an account on the chart of accounts (provided in Appendix I
enclosed herewith) must comply with provisions of the Law on Accounting to
ensure the consistency in use of accounts and presentation of information on
financial statements which should not be omitted or duplicated.
5. The chart of accounts, contents, structure and
methods for recording such accounts are provided in Appendix I “Chart of
accounts and guidelines for recording” enclosed herewith.
Article 4. Accounting records
1. Accounting records used by cooperatives shall
comply with provisions of the Law on Accounting and guidelines thereon,
guidelines on accounting records, and provisions of this Circular.
2. Cooperatives are allowed to design their own
accounting records to meet their operation and management requirements,
provided that they must contain primary information which an accounting record
should have as prescribed in the Law on Accounting and be capable of thoroughly
and safely monitoring assets, funding sources, etc. of the cooperative, unless
otherwise prescribed by law.
3. Apart from provisions of the Law on Accounting
and guidelines thereon, electronic accounting records must also comply with
provisions of the Law on E-Transactions and guidelines thereon, the Law on Tax
Administration and guidelines thereon, and other relevant laws.
4. Cooperatives that do not design their own
accounting records shall apply the accounting records and methods for recording
in Appendix II enclosed herewith.
Article 5. Accounting books
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2. Cooperatives may design their own accounting
books according to characteristics of their business to meet their management
requirements, provided that they must be capable of providing information on
economic transactions in a transparent, adequate, comparable and verifiable
manner.
3. Cooperatives that do not design their own
accounting books shall apply guidelines on the form, format and methods for
making accounting books in Appendix III enclosed herewith.
Article 6. Financial statements
1. Financial statements of cooperatives shall
comply with provisions of the Law on Accounting and guidelines thereon, other
legislative documents on financial statements, and provisions of this Circular.
2. The system, forms, contents and methods for
preparation and presentation, and other contents relating to financial
statements of cooperatives shall comply with guidelines in Appendix IV enclosed
herewith.
Chapter III
IMPLEMENTATION
Article 7. Transition
1. Cooperatives shall stop using Account 332 -
Payables on internal credit activities, except cases where internal credit contracts
have been signed before September 01, 2023 and are still effective, the
cooperative shall continue using Account 332 - Payables on internal credit
activities to reflect the deposits received from its members that shall enjoy
the interest rate in the form of internal line of credit as prescribed in the
Law on Cooperatives 2012 until these internal credit contracts expire.
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3. Cooperatives shall stop using Account 359 -
Provisions for credit losses to reflect their provisions for credit losses. Any
balance on Account 359 - Provisions for credit losses shall be transferred to
Account 338 - Other payables, and presented on Notes to financial statements.
4. A cooperative shall carry out transfer of
balances between accounts as follows:
- Balance on Account 132 - Receivables from
internal credit activities is transferred to Account 132 - Receivables from
internal lending activities.
- If a cooperative is recording and monitoring the
State’s non-refundable financial supports which are non-monetary assets,
land-use rights allocated or leased by the State, and other assets which are
fixed assets (sub-account: undistributed assets), it shall transfer the balance
on Account 211 - Fixed assets (sub-account: undistributed assets) to Account
212 - Undistributed assets (sub-accounts are opened to monitor each type of
assets and entities recording assets). Additionally, funding for establishing
such assets, including the State’s non-refundable financial supports which are
non-monetary assets, land-use rights allocated or leased by the State, and
other assets which are fixed assets, shall be transferred from Account 442 -
Funding from State’s non-refundable financial supports and aids to Account 4422
- Funding for establishing undistributed assets.
5. A cooperative that is applying provisions of the
Circular No. 133/2016/TT-BTC dated June 28, 2016 of the Ministry of Finance of
Vietnam providing guidelines on accounting for small and medium-sized
enterprises shall carry out transfer of balances between accounts as follows:
- The cooperative shall transfer the balance on
Account 121 - Traded securities to Account 1218 - Other financial investments
and open sub-accounts to meet its management requirements.
- The cooperative shall transfer the balance on
Account 1281 - Term deposits to Account 1211 - Term deposits and open
sub-accounts to meet its management requirements.
- The cooperative shall transfer the balance on
Account 1288 - Other investments held to maturity to Account 1218 - Other
financial investments and open sub-accounts to meet its management
requirements.
- The cooperative shall transfer the balances on
Account 1381 - Assets in shortage pending settlement, Account 1386 - Pledges, mortgages,
collateral, and Account 1388 - Other receivables to Account 138 - Other
receivables and open sub-accounts to meet its management requirements.
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- The cooperative shall transfer the balances on
Account 155 - Finished products, Account 156 - Goods to Account 156 - Finished
products, goods, and open sub-accounts to meet its management requirements.
- The cooperative shall transfer the balance on
Account 2112- Leased fixed assets to Account 2114 - Leased fixed assets and
open sub-accounts to meet its management requirements.
- The cooperative shall transfer the balance on
Account 217 - Real estate investments to Account 2117 - Real estate
investments, and open sub-accounts to meet its management requirements.
- The cooperative shall transfer the balance on
Account 2142- Depreciation of leased fixed assets to Account 2144 -
Depreciation of leased fixed assets, and open sub-accounts to meet its
management requirements.
- The cooperative shall transfer the balances on
Account 2281 - Investments in joint-ventures, affiliates, Account 2288 - Other
investments to Account 1218 - Other financial investments, and open
sub-accounts to meet its management requirements.
- The cooperative shall transfer the balances on
Account 2291 - Provision for devaluation of traded securities, Account 2292 -
Provision for losses of investments in other entities, Account 2293 - Allowance
for doubtful accounts, Account 2294 - Provision for devaluation of inventories
to Account 229 - Provision for asset losses, and open sub-accounts to meet its
management requirements.
- The cooperative shall transfer the balances on
Account 2411 - Purchase of fixed assets, Account 2412 - Fundamental
construction, Account 2413 - Major repair of fixed assets to Account 2422 -
Fundamental construction in progress, and open sub-accounts to meet its management
requirements.
- The cooperative shall transfer the balance on
Account 242 - Prepaid expenses to Account 2421 - Expenses pending allocation,
and open sub-accounts to meet its management requirements.
- The cooperative shall transfer the balances on
Account 3332 - Excise tax, Account 3333 - Import, export duties, Account 3335 -
Personal income tax, Account 3336 - Natural resource tax, Account 3337 - Land
levies, land rents, Account 3338 - Environmental protection tax and other
taxes, Account 3339 - Fees, charges and other amounts payable to Account 3338 -
Other taxes, fees, charges and other amounts payable to state budget, and open
sub-accounts to meet its management requirements.
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- The cooperative shall transfer the balance on
Account 335 - Expenses payable to Account 338 - Other payables, and open sub-accounts
to meet its management requirements.
- The cooperative shall transfer the balances on
Account 3382 - Trade union contributions, Account 3383 - Social insurance
contributions, Account 3384 - Health insurance contributions, Account 3385 -
Unemployment insurance contributions to Account 335 - Salary-based
contributions, and open sub-accounts to meet its management requirements.
- The cooperative shall transfer the balances on
Account 3381 - Assets in surplus pending resolution, Account 3386 - Received deposits,
collateral, Account 3387 - Unrealized revenues, and Account 3388 - Other
payables and receivables to Account 338 - Other payables, and open sub-accounts
to meet its management requirements.
- The cooperative shall transfer the balances on
Account 3411 - Loans, Account 3412 - Finance lease debts to Account 341 - Loans
payable, and open sub-accounts to meet its management requirements.
- The cooperative shall transfer the balances on
Account 3521 - Provision for warranty for goods and products, Account 3522 -
Provision for warranty for construction works, Account 3524 - Other provisions
to Account 338 - Other payables, and open sub-accounts to meet its management
requirements.
- The cooperative shall transfer the balance on
Account 3534 - Reward fund for managers and executives to Account 3531 - Reward
fund, and open sub-accounts to meet its management requirements.
- The cooperative shall transfer the balances on
Account 3561 - Science and technology development fund and Account 3562 -
Science and technology development fund used for establishing fixed assets to
Account 338 - Other payables, and open sub-accounts to meet its management
requirements.
- The cooperative shall transfer the balances on
Account 4211 - Undistributed after-tax profits of previous year and Account
4212 - Undistributed after-tax profits of current year to Account 421 -
Undistributed after-tax profits, and open sub-accounts to meet its management
requirements.
Article 8. Effect
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2. Ministries, regulatory authorities, Provincial
People's Committees, Provincial Departments of Finance, and Provincial
Departments of Taxation shall instruct cooperatives to implement this Circular.
3. Difficulties that arise during the
implementation of this Circular should be reported to the Ministry of Finance
of Vietnam for consideration./.
PP. MINISTER
DEPUTY MINISTER
Vo Thanh Hung