Circular 24/2010/TT-BTC guiding accounting applications for agricultural, forestry and salt-producing fishery cooperatives

• Official number: 24/2010/TT-BTC
• Legislation Type: Circular
• Organization: The Ministry of Finance
• Signer: Tran Xuan Ha
• Issued Date: 23/02/2010

MINISTRY OF FINANCE -------	SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom - Happiness ---------
No.: 24/2010/TT-BTC	Hanoi, February 23, 2010

CIRCULAR

GUIDING ACCOUNTING APPLICABLE TO COOPERATIVES OF AGRICULTURE, FORESTRY, FISHERY AND SALT OCCUPATION

- Pursuant to the Law on Accounting No.03/2003/QH11 dated 17/6/2003;

- Pursuant to the Law on Cooperatives No.18/2003/QH11 dated 26/11/2003;

- Pursuant to the Decree No.118/2008/ND - CP dated 27/11/2008 of the Government regulating functions, tasks, powers and organizational structure of the Ministry of Finance;

- Pursuant to the Decree No.129/2004/ND - CP dated 31/5/2004 of the Government detailing and guiding the implementation of a number of Articles of the Law on Accounting in business activities.

The Ministry of Finance guides accounting applicable to cooperatives of agriculture, forestry, fishery, and salt occupation as follows:

Part I

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Article 1. Scope and subjects of application

This Circular guides the accounting regime applicable to the Cooperatives of Agriculture, Forestry, Fishery and Salt occupation (collectively, referred to as the Agricultural Cooperative, abbreviated as "Cooperative").

Article 2. Bases for the application

The accounting system applied to the Agriculture Cooperatives guided in this Circular is based on the Accounting regime for Small and Medium enterprises, issued together with Decision No.48/2006/QD - BTC dated 14/9/2006 of the Minister of Finance (hereinafter referred to as Decision No.48/2006/QD-BTC). The contents that are not guided in this Circular, the cooperative shall comply with the Accounting Law, Decree No.129/2004/ND - CP dated 31/5/2004 detailing and guiding some Articles of the Law on Accounting applying to business, accounting regime of Small and Medium enterprises, issued together with Decision No.48/2006/QD-BTC.

Article 3. Financial Disclosure

1. The contents of the cooperative’s financial disclosure, include

- The situation of assets, liabilities and equity;

- The results of business activities;

- Appropriation and use of funds;

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2. Responsibility, form and duration of financial disclosure

- The cooperative chairman is responsible for reporting the annual financial situation to the Cooperative Management Board. Cooperative Management Board is responsible for financial disclosure before the Congress of cooperative members.

- The financial disclosure is made in the following forms:

+ Notice in writing;

+ Listed;

+ The other forms as prescribed by law.

- Cooperative must publish annual financial situation within 90 days from the end of the fiscal year.

Part II

SPECIFIC PROVISIONS

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Article 4. Provisions of application of system of accounting accounts

The cooperatives implement System of accounting accounts as prescribed by the Accounting Regime for Small and Medium Enterprises issued together Decision No.48/2006/QD - BTC with the provisions amended and supplemented in this Circular as follows:

1. Rename some accounting accounts and add the second grade accounts as follows:

1.1. Rename Account 131 - "Receivables from customers" into "Receivables"

Account 131 has 3 second grade Accounts:

+ Account 1311 - Receivable from cooperative members;

Account + 1312 - Receivable from customers outside the cooperative;

+ Account 1318 - Other receivables.

1.2. Rename Account 311 - "Short-term borrowings" into "borrowings".

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Account + 3111 - Short-term borrowings;

+ Account 3112 - Long-term borrowings.

1.3. Rename Accounts: 4111 - "Investment capital of the owners" into "Capital contributed by the cooperative members"; 4112 - "Equity surplus" into "Capital accumulated by cooperative"; 4118 - "Other Capital" into" Other capital source".

1.4. Rename Account 511 - "Revenues from sales of goods and provision of services" into "Revenue".

Account 511 has 3 second grade Accounts:

+ Account 5111 – Revenue from service provision for cooperative members;

+ Account 5112 - Revenue from manufacture, trade;

+ Account 5118 - Revenue from other activities.

1.5. Rename Account 515 - "Revenue from financial activities" into "Revenue from financial activities, internal credit".

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+ Account 5151 - Revenue from financial activities;

+ Account 5152 - Revenue from internal credit.

1.6. Rename Account 632 - "Prime Cost of goods sold" into "Prime Cost of goods, products, and services"

Account 632 has 2 second grade Accounts:

+ Account + 6321 – Prime Cost of goods, products and services sold to cooperative members;

+ Account + 6322 - Prime Cost of goods, products and services sold outside the cooperative.

1.7. Rename Account 635 - "Financial expenses" into "Cost of financial activity, activity of internal credit"

Account 635 has 2 second grade Accounts:

+ Account + 6351 - The expenses of financial activities;

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1.8. Rename Account 6421 - "Selling expenses" into "Expenses of sales and service provision"; rename Account 6422 - "The expenses of corporate management" into "Expenses of management of cooperative".

1.9. Rename Account 157 - "Goods on consignment" into "Products and goods on consignment."

2. Adding up accounting accounts

Add up Account 155 - "Finished product"; Account 156 - "Goods", to Account 155 - "Products and goods"

Account 155 has 2 second grade Accounts:

+ Account 1551 - Products;

+ Account 1552 - Goods.

3. Change the number and classify the Account 431 - "The reward fund and welfare" into Account 353

Account 353 has 2 second grade Accounts:

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+ Account + 3532 - The welfare fund.

4. Supplement the following Accounts

4.1. First grade Account (in Accounting Balance Sheet)

a. Account 122 – lending cooperative members

Account 122 has 3 second grade Accounts:

+ Account 1221 - lending cooperative members in the term loan;

+ Account 1222 - lending cooperative members overdue;

+ Account 1223 - freezing loan debt by cooperative members.

b. Account 136 – Internally receivable;

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+ Account 1361 – Business Capital in the directly subordinate units;

+ Account 1368 - Other internally receivables.

c. Account 322 - Deposits of cooperative members;

d. Account 336 – Internally payable;

đ. Account 359 - The reserve fund for internally credit risk.

4.2. Second grade Account of Account 334

a. Account 3341 - Payable to cooperative members;

b. Account 3348 - Payable to other employees.

4.3. Second grade Account of Account 411

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b. Account 4114 – Capital from investment support of the Record.

4.4. Second grade Account of Account 418

a. Account 4181 - Fund of development of production and business;

b. Account 4182 - Reserve fund;

c. Account 4188 - Other Fund.

4.5. Accounts out of the accounting Sheet Balance

- Account 005 - Tools, durable equipment being used;

- Account 006 – Collateral assets for loans;

- Account 008 - Interest from overdue loans not yet received.

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- Accounts 1113, 1123 - Gold, silver, precious metals, and gems;

- Account 1591 - Provision for reduction of short-term financial investment;

- Account 138 - Other receivables;

- Account 2112 - Fixed Assets of financial leasing;

- Account 2142 - Depreciation of fixed assets of financial leasing;

- Account 217 - Investment real estate;

- Account 2147 - Depreciation of investment real estate;

- Account 229 - Provision for reduction of long-term financial investment;

- Account 244 - Collateral, long-term deposit;

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- Account 335 - Payable expenses;

- Account 3381 - Excess assets waiting for settlement;

- Account 3382 - union expenses;

- Account 341 - borrowings, long-term debt;

- Account 351 - allowance reserve funds for unemployment;

- Account 352 – Payable Provision for;

- Account 419 - Treasury stock;

- Account 611 - Purchase;

- Account 631 - Cost of production.

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Where cooperatives need to add the first or second grades Accounts or amend the first or second grades Accounts of the names, symbols, content and method of economic professional accounting arising characteristics, it must be approved in writing by the Ministry of Finance before the implementation.

The cooperatives can open additional Accounts of the third and second grades for the Accounts not being specified the Accounts of third and second grades in the list system of accounting accounts prescribed in this Circular for requirements for cooperatives’ management without the proposal for approval from the Finance Ministry.

Article 6. Guidance on some specific contents of accounting of cooperatives

1. Account 122 – Lending cooperative members

This account is used to reflect the current number and situation of increase or decrease of the amount for lending members of the cooperative with internal credit activity.

1.1. Accounting this account should comply with the following principles

1.1.1. Account 122 – Lending cooperative members - only use in the cooperatives with implementation of internal credit activities in accordance with provisions of law. The lending, loan recovery, interest rates,... must comply with the provisions of law regarding the internal credit activities of the cooperatives.

1.1.2. Only account the principal debt into Account 122 - Lending cooperative members, the loan interest is accounted for into Account 515 - Revenues from financial activities, internal credit (Account 5152).

1.1.3. Cooperative Accounting (Department monitoring the internal credit activities) must open books to monitor the loans for each borrower on the principal debt, of which in-term debt, overdue debt, debt freezing, or permission of deletion of debt, interest and the payment of that amount.

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Debit:

The money was lent to cooperative members.

Credit:

- Amount of principal debt paid by cooperative members;

- The principle amount lent cooperative members permitted debt deletion by Cooperative Management Board.

Debit’s balance:

Principal amount lent cooperative members that has not come due or come due but not yet paid by cooperative members.

Account 122 – Lending cooperative members, there are 3 second-grade Accounts:

- Account 1221 - Lending cooperative members in term: This account is used to reflect the loans and the situation of recovery of loans to cooperative members in the term;

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- Account 1223 - Freeze debt lent to cooperative members: this account reflects the loans to cooperative members but they cannot afford to pay their debts or at risk in the course of using capital to be frozen debt pending for handling.

1.3. Accounting methods in some of the main economic business

1.3.1. When taking money to lend cooperative members, based on the credit contracts or loan contracts and documents taking money to lend, record:

Debit Account 122 – Lending cooperative members (1221)

Credit - Accounts 111, 112

For the loans required to be secured by assets, based on valuation minutes of mortgage, pledge, record:

Debit - Account 006 - Collateral assets.

1.3.2. The interest earned from loan, based on interest collecting receipts, record:

Debit - Accounts 111, 112

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1.3.3. Upon withdrawal of amounts lent the cooperative members (cash or bank deposits), based on the amount collected, record:

Debit - Accounts 111, 112

Credit - Account 122 – Lending cooperative members (original amount lent cooperative members).

At the same time, accountant deletes debts on credit contracts by recording the amount of debt recovery in the column "Amount of debt payment", withdrawing balances. The credit contracts that have been collected all the debt (balance equal to 0) are taken out of credit files to be assembled into separate files, then conduct disbursing procedures for mortgages or pledges of cooperative members, record:

Credit - Account 006 - Collateral assets.

1.3.4. When debts of cooperative members come due but they are not paid and are not rescheduled, the loans are transferred into overdue debts, record:

Debit - Account 1222 - Lending cooperative members over due

Credit - Account 1221 - Lending cooperative members in term.

1.3.5. When transferring the loans which cooperative members cannot afford to pay the debt or at risk of capital loss from objective reasons (natural disasters, floods, fires, epidemics ...) to be transferred to debts freezing by the Cooperative Management Board pending for handling, record:

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Credit - Account 1222 – Lending cooperative members overdue

Credit - Account 1221 - Lending cooperative members in term.

1.3.6. When having a decision of debt deletion of the Cooperative Management Board and being compensated by the reserve fund of credit risk, based on records, record:

Debit - Account 359 - The reserve fund for credit risk

Credit - Account 122 - Lending cooperative members.

2. Account 136 – Internally receivable

This account is used to reflect the debts and the situation paying the receivable debts of the dependent enterprises (established by cooperatives) on the loan or amount paid for, amount collected for or items that the units under the cooperatives are obliged to pay to the cooperatives or the cooperatives must pay for the dependent enterprises.

2.1. Accounting this account should comply with the following principles:

2.1.1. The scope and content of reflection of the Account 136 is of the internal relations of payment for receivable accounts between the superior and affiliated units. In particular, superior unit is the cooperative, affiliated units are the enterprises assigned capital by cooperatives, organized its own accounting.

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- Capital, the fund, or funding has been assigned, granted to affiliated enterprises;

- Business capital lent the affiliated enterprises without counting interest;

- Amounts that affiliated enterprises must pay to the superior as prescribed;

- Amounts due to the affiliated enterprises to collect for;

- Amounts allocated to affiliated enterprises to carry out internal contract volume and received the value of internal contract;

2.1.3. Account 136 must be accounted in detail for each unit with relation of payments and tracks separately each internal receivable amount.

2.1.4. At the end of the accounting period, it must inspect, compare and confirm the number arising, the balance of Account 136 "Internally receivable", Account 336 “Internally payable" for each content of payment. Perform offset by each amount of each unit with relation, at the same time to account offset on the Account 136 "Internally receivable" and Account 336 " Internally payable" (By the details of each object ).

When comparing, if there is any difference, it must find the causes and timely adjust.

2.2. The structure and content of reflection of the Account 136 – Internally receivable

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- The business capital allocated to affiliated enterprises;

- The amounts that cooperatives must collect, the amounts that affiliated enterprises must pay;

- The amounts that affiliated enterprises must collect, the amounts that cooperatives must allocat to affiliated enterprises;

- Amount receivable on sale of products, goods, or services to affiliated enterprises.

Credit:

- Recovery of capital, funds in affiliated enterprises;

- The amount collected on the amounts receivable of affiliated enterprises;

- Compensation receivable with amount payable of the same object.

Debit’s balance:

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Account 136 – Internally receivable has 2 second grade accounts:

- Account 1361 – Business capital in affiliated enterprises: This account is only opened in the cooperatives to reflect the existing business capital in the affiliated enterprises directly assigned by cooperatives or formed by other methods.

- Account 1368 - Other Internally receivable: Reflects all other receivable amounts of cooperatives for affiliated enterprises or the amounts receivable of enterprises from cooperatives outside capital.

2.3. Accounting methods in some of the main economic enterprises

2.3.1. When co-operative allocates business capital to the affiliated enterprises, record:

Debit - Account 136 – Internally receivable (1361)

Credit - Accounts 111, 112...

2.3.2. Where the allocation of business capital to the affiliated enterprises under fixed assets, record:

Debit - Account 136 - Internally receivable (1361)

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Credit - Account 211 - Tangible fixed assets (original cost).

2.3.3. Based on the number of business capital remitted by the affiliated enterprises on the increase of business capital due to procurement of fixed assets by investment capital of basic construction or development and investment fund, record:

Debit - Account 136 - Internally receivable (1361)

Credit - Account 411 - Business capital.

2.3.4. End of period, if cooperative adds capital from business profit in the period of the affiliated enterprises, record:

Debit - Account 136 - Internally receivable (1361)

Credit - Account 411 - Business capital.

2.3.5. Where an affiliated enterprise must return business capital to the Cooperative, upon receipt of money paid by the affiliated enterprise, record:

Debit - Accounts 111, 112...

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2.3.6. Receivables on interest of production, business activities and other business activities in affiliated enterprises, record:

Debit - Account 136 - Internally receivable (1368)

Credit - Account 421 - Undistributed profit

2.3.7. Upon receipt of the money paid by the affiliated enterprise on the business interest payment, record:

Debit - Accounts 111, 112...

Credit - Account 136 - Internally receivable (1368).

2.3.8. When paying as a substitute the debts for affiliated enterprises, record:

Debit - Account 136 - Internally receivable (1368)

Credit - Accounts 111,112

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Debit - Accounts 111, 112...

Credit - Account 136 - Internally receivable (1368).

2.3.10. Offsetting internally receivable and internally payable out of capital of the same object:

Debit - Account 336 - Internally receivable

Credit - Account 136 - Internally receivable (1368).

3. Account 154 - Cost of unfinished production and business

This account is used to gather the cost of production, sales, and service of cooperatives and for the calculation of costs of production, labor service, service completed.

3.1. Accounting this account should comply with the following provisions

3.1.1. Costs from production, business, and services accounted on the Account 154 must be detailed by industry, product, or service that each cooperative has the business organizations.

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3.1.3. Actual costs of products, agricultural services are determined at the end of season or end of the year.

3.1.4. Content of production costs of some industries, branches, and services:

3.1.4.1. Irrigation service includes the following major expenses:

- Water cost payable to the agricultural irrigation companies;

- Costs of electricity, petrol running pumps;

- Depreciation of pumping stations and system of canals conducting water invested capital by cooperatives;

- The cost of dredging, repairing irrigation systems;

- The cost of regular repair and overhaul of pump stations, pumps;

- Working remuneration for members of operating machine and regulating water;

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3.1.4.2. Pest control services:

- The drugs used for pest control for plants;

- Fuel running machine spraying insecticide;

- Depreciation of pumps of pesticides;

- The cost of hand tools, clothes, instruments of labor protection;

- The cost of repairing pumps and sprayers of pesticides;

- The cost of wages and allowances for toxic;

- The direct costs such as loan interest.

3.1.4.3. Services of provision of agricultural materials and product consumption for the households with the following major expenses:

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- Depreciation of storage; means of transportation of department of services;

- Loan interest payable;

- Remuneration for staffs, cooperative members who directly provide services of agricultural materials and consumption of products;

- The other direct expenses.

Not to reflect to the cost of services providing agricultural materials by original cost (purchase price) of materials, goods and products for receiving consumption of products for the households.

3.1.4.4. Activities receiving goods to process, such as textiles, carpet weaving, embroidery ... with the following production costs:

- Expenses related to travel to receive, deliver goods after processing, such as costs of transportation, handling and storage of goods ...;

- The materials put out by the cooperative during the processing;

- Wages of cooperative members directly processing;

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- Depreciation of machinery, equipment, and workshops;

- The cost of repairing machinery and equipment;

- The other direct costs (such as loan interest…).

Not to reflect to the processing cost value of the materials of processing deliverers.

3.1.4.5. The activity of processing agricultural and forestry products: Production costs include the following items:

- The value of main materials which are put into process;

- The types of auxiliary materials used within the course of processing;

- The costs of electricity, fuel (coal, firewood, gasoline) used for machining and processing products;

- The cost of repairing machines;

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- The wages of workers of direct production;

- Other direct expenses.

3.1.4.6. Production activities of agriculture, forestry, manufacturing costs include:

- Breeds;

- Fertilizers;

- The costs of pest control for crops;

- The cost of making land;

- The cost of water irrigation;

- Wage of labor;

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- The other direct expenses.

3.1.4.7. Activities of aquaculture, the cost includes the following items:

- Breeds;

- The costs of pest control;

- Depreciation of fixed assets;

- The cost of repairing the property;

- Other direct costs (such as loan interest ...).

3.2. The structure and content of reflection of the Account 154 - Cost of production and unfinished business

Debit:

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Credit:

- The actual production cost of products already manufactured, processed to be put into warehouse or transferred for selling;

- The actual cost of the volume of services completed the provision for the cooperative members and customers.

Debit’s balance:

Costs of production, unfinished business at the end of period

3.3 The accounting method of a number of major economic activities

3.3.1. Accounting for irrigation service

3.3.1.1. Costs of renovation of, dredging canals of water (repaired frequently), record:

Debit - Account 133 - VAT deductible (if any)

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Credit - Account 334 - Payable to cooperative members and employees of cooperatives (wages of cooperative members and salaries from outsourcing)

Credit - Account 152 - Raw materials, materials

Credit - Account 153 - Tools and instruments

Credit - Account 331 - Payable to sellers (lump sum for outside to repair, dredge).

3.3.1.2. Disbursing spare parts to repair, replace pumps, pump stations, record:

Debit - Account 154 - Cost of production and unfinished business

Credit - Account 153 - Tools and instruments.

3.3.1.3. When buying gasoline, oil to use for pumps, record:

Debit - Account 154 - Cost of production and unfinished business

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3.3.1.4. Electricity and irrigation fee must be paid to branch of Electricity Company and agricultural irrigation companies, record:

Debit - Account 154 - Cost of production and unfinished business

Credit - Account 331 - Payable to sellers.

3.3.1.5. When determining the remuneration payable to cooperative members operating the machine and regulating water, record:

Debit - Account 154 - Cost of production and unfinished business

Credit - Account 334 - Payable to cooperative members and employees of the cooperative.

3.3.1.6. Periodically, depreciation of pumps, pumping stations, water canals, record:

Debit - Account 154 - Cost of production and unfinished business

Credit - Account 214 - Depreciation of fixed assets.

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Debit - Account 154 - Costs of production, unfinished business

Credit - Account 142 - Short-term prepaid expenses.

3.3.1.8. At the end of period, determination of number of irrigation services to complete the evaluation of business results in the period, record:

Debit - Account 632 – Prime cost of goods sold

Credit - Account 154 - Cost of production and unfinished business.

3.3.2. Accounting pest control services for crops, livestock

3.3.2.1. Regarding disease epidemic prevention drugs for plants and livestock:

- If the cooperative purchases to store in warehouses, when disbursing for the use, record:

Debit - Account 154 - Cost of production and unfinished business (detailing service of protection of plants and livestock)

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If cooperatives purchase to use immediately without for storing in the warehouse, record:

Debit - Account 154 - Costs of production and unfinished business

Debit - Account 133 - VAT deductible (if any)

Credit - Account 111 - Cash (cash payments)

Credit - Account 112 - Bank Deposits (Payment by bank transfer)

3.3.2.2. Disbursing tools and instruments for use (pesticide sprayers ...)

- Disbursing from warehouse, record:

Debit - Account 242 - Long-term prepaid expenses

Credit - Account 153 - Tools and instruments.

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- Determination of the number of allocation of values of ​​ tools, instruments into expenses, record:

Debit - Account 154 - Cost of production, unfinished business (detailing service of protection of plants and livestock)

Credit - Account 242 - Long-term prepaid expenses.

3.3.2.3. For cooperatives using pesticides sprayers run by gasoline

- The cost of gasoline running engine, record:

Debit - Account 154 - Cost of production and unfinished business (detailing service of protection of plants and livestock)

Credit - Account 111 - Cash (Buying petrol in cash for immediate use)

Credit - Account 141 - Advance (Advance Payment for buying petrol)

Credit - Account 152 - Raw materials, materials (Disbursing petroleum in storage to use).

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Debit - Account 154 - Cost of production, unfinished business (detailing service of protection of plants and livestock)

Credit - Account 214 - Depreciation of fixed assets.

3.3.2.4. Determination of remuneration payable to cooperative members, record:

Debit - Account 154 - Cost of production, unfinished business (detailing service of protection of plants and livestock)

Credit - Account 334 - Payable to cooperative members and employees of the cooperative.

3.3.2.5. End of period, the transfer costs of pest control services completed into account of prime cost of goods sold to determine the business results, record:

Debit - Account 632 – Prime cost of goods, products, services

Credit - Account 154 - Cost of production, unfinished business.

3.3.3. Accounting services providing agricultural materials

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- When materials transported for storing in warehouse, record:

Debit - Account 155 - Products and Goods (storing goods in warehouses) (invoice price) (1552)

Credit - Account 111 - Cash (Cash Purchase)

Credit - Account 112 - Bank Deposits (Payment by bank transfer)

Credit - Account 331 - Payable to sellers (Purchase unpaid).

- When disbursing materials to supply to the households, record:

Debit - Account 632 – Prime cost of goods, products, services

Credit - Account 155 - Products and Goods (1552) (Price of ex-warehouse).

At the same time based on bill, reflecting revenue, record:

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Debit - Account 131 - Receivables (1311 - Receivable from cooperative members)

Credit - Account 511 - Turnover (selling Price) (5111).

- The cost of shipping, handling and selling expenses:

Debit - Account 642 - Costs of business management (6421)

Credit - Account 111 - Cash (shipping costs)

Credit - Account 141 - Advance (Advance Payment for the shipping costs)

Credit - Account 331 - Payable to sellers (shipping costs unpaid).

3.3.3.2. Cooperative purchases materials and delivers immediately to the households (teams, groups):

- When materials are transported to cooperative, then delivers immediately to the teams, groups, households by number signed, and record:

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Credit - Account 111 - Cash (cash payment)

Credit - Account 112 - Bank Deposits (Payment by bank transfer)

Credit - Account 331 - Payable to sellers (unpaid).

At the same time reflecting the revenue to provide agricultural materials for the households, record:

Debit - Account 111 - Cash (Selling and collecting money immediately)

Debit - Account 131 - Receivables (1311 - Receivable from cooperative members)

Credit Account 141 - Advance (Advance Payment for the shipping costs)

Credit - Account 511 - Revenue (Selling price) (5111)

- The cost of shipping, handling and selling costs (if any), record:

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Credit - Account 111 - Cash (shipping costs)

Credit - Account 141 - Advance (Advance Payment for the shipping costs)

Credit - Account 331 - Payable to sellers (shipping costs unpaid).

3.3.4. Accounting services of production and supply of seeds for the households

3.3.4.1. Where cooperatives buy new seeds in the seed companies to sell to the households:

- When purchasing seeds for storing, record:

Debit - Account 155 - Products and Goods (1552)

Credit - Account 111 - Cash (Purchase in Cash)

Credit - Account 112 - Bank Deposits (Payment by bank transfer)

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- When disbursing the seeds from warehouse to sell to the households, record:

Debit - Account 632 – Prime cost of goods, products, or services (detailing seed service)

Credit - Account 155 - Products and Goods (1552)

- Where to buy seeds for immediate delivery to the households, record:

Debit - Account 632 - Prime cost of goods, products, or services (detailing seed service)

Credit - Account 111 - Cash (Purchase in Cash)

Credit - Account 112 - Bank Deposits (Payment by bank transfer)

Credit - Account 331 - Payable to sellers (The unpaid debt).

At the same time, record revenue on the sale of seeds for the households, record:

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Debit - Account 131 - Receivables (1311 - Receivable from cooperative members)

Credit - Account 511 - Revenue (Selling price) (5111)

- Transportation costs and other expenses related to travelling to receive seeds, record:

Debit - Account 642 - Costs of business management (6421)

Credit - Accounts 111, 112, 141, 331....

- The expenses incurred in the process of preservation, selling seeds, record:

Debit - Account 642 - Costs of business management (6421)

Credit - Account 334 - Payable to cooperative members and employees of cooperatives (3341)

Credit - Account 214 - Depreciation of fixed assets

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3.3.4.2. Where cooperatives receive new seed and deliver to some experienced households for multiplication. Depending on the agreements in the contract between cooperatives and the households producing varieties that the cooperative can invest additionally costs for the households and re-purchase all the varieties that the households produced to provide large scale.

- When the cooperative receives the seeds by buying from outside, then deliver to households of cooperative members processing varieties for the cooperative, when delivering seeds, record:

Debit - Account 154 - Cost of production and unfinished business (detailing service of varieties provision)

Credit - Accounts 111,141,331

The costs that cooperative must pay for the households of cooperative members processing varieties, record:

Debit - Account 154 - Cost of production and unfinished business

Credit - Account 331 – Payable to sellers

Credit - Account 111 - Cash

- When the households have already processed varieties, return to the cooperative, record:

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Credit - Account 154 - Cost of production and unfinished business.

- When the cooperative disburses varieties to sell for households of cooperative members:

+ To reflect the prime cost of number of varieties that the cooperative sold, record:

Debit - Account 632 – Prime cost of goods, products, and services (6321)

Credit - Account 155 - Products and Goods (1551)

+ To reflect revenue from sale of varieties, record:

Debit - Account 111 - Cash (Selling and collecting money immediately)

Debit - Account 131 - Receivables (1311 - Receivable from cooperative members)

Credit - Account 511 - Revenue (detailing service of varieties provision) (5111).

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+ When disbursing variety from warehouse to get other variety back, record:

Debit - Account 632 – Prime cost of goods, products, services

Credit - Account 155 - Products and goods.

+ Reflecting revenue of the variety used for exchange by fair value, record:

Debit - Account 131 – Receivables

Credit - Account 511 - Revenue

+ When receiving variety from exchange, accountant reflects the value of variety received by the fair value, record:

Debit - Accounts 152, 155

Credit - Account 131 - Receivables

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Debit - Account 131 – Receivables

Credit - Account 111 - Cash

+ Where the cooperative members must pay more money for cooperative, record:

Debit - Account 111

Credit - Account 131 - Receivables

3.3.5. Accounting professional skills of encouraging agriculture, forestry, fishery

3.3.5.1. Collecting money contributed by the households of cooperative members (contributed by the criterion specified by the cooperative) to form the funds of promotion of agriculture, forestry and fishery of cooperatives, record:

Debit - Account 111 - Cash (if collected in cash)

Debit - Account 155 - Products and Goods (if collected by product)

...

...

...

2.3.5.2. When spending for allowances for the reporters guiding technique, record:

Debit - Account 338 - Other payables (Detailing fund of promotion of agriculture, forestry)

Debit - Account 333 - Taxes and amounts payable to the Record (3335 - Personal income tax of the amount withheld at source)

Credit - Account 111 - Cash

3.3.6. Accounting production, agricultural processing or production of business lines

3.3.6.1. Disbursing raw materials, materials for production, trade of lines or outsourcing agricultural products other than processing materials, record:

Debit - Account 154 - Cost of production and unfinished business

Credit - Account 152 - Raw materials and materials

3.3.6.2. The prepaid expenses allocated to costs of business lines, record:

...

...

...

Credit - Account 142 - Short-term prepaid expenses.

3.3.6.3. Remuneration payable to cooperative members or workers hired from outside, record:

Debit - Account 154 - Cost of production and unfinished business

Credit - Account 334 - Payable to cooperative members and employees of the cooperative.

3.3.6.4. Depreciation of fixed assets used directly for production, trade of lines or processing agricultural products, record:

Debit - Account 154 - Cost of production and unfinished business

Credit - Account 214 - Depreciation of fixed assets.

3.3.6.5. Expenses for services purchased, leased from outside (electricity, handling costs, transport, rent of fixed assets ...), and other costs by money incurred directly in the divisions of manufacturing lines or processing agricultural products, record:

Debit - Account 154 - Cost of production and unfinished business

...

...

...

Credit - Account 112 - Bank Deposits

Credit - Account 331 – Payable to sellers (services purchased from outside).

3.3.6.6. The actual cost of the product to be in stock, record:

Debit - Account 155 - Products and Goods

Credit - Account 154 - Cost of production and unfinished business.

3.3.6.7. Where the products already produced not being stored in warehouse and transferred directly into consumption, record:

Debit - Account 632 – Prime cost of goods, products, services

Credit - Account 154 - Cost of production and unfinished business.

3.3.7. Accounting for leases or lump sum

...

...

...

- There are cooperatives using their legal entities to transact, contract, while the production, business shall be contracted for a team, a group of self-doing business. End of season, end of year, the team, and group shall pay to Cooperatives the amounts as prescribed (possibly including the payment of tax and payment of depreciation, payment of funds of cooperatives ...).

The above cases, cooperative accounts the costs and revenues as follows:

3.3.7.1. The expenses for these activities (primarily depreciation of fixed assets), record:

Debit - Account 154 - Cost of production and unfinished business

Credit - Account 214 - Depreciation of fixed assets

Credit – other Accounts (other related costs)

3.3.7.2. Revenue from the lease of assets, on lump sum contracting, people who receive lump sum contracting must pay, record:

Debit - Account 111 – Cash

Debit - Account 131 – Receivables

...

...

...

3.3.7.3. The remaining entries are similar to the above.

3.3.8. Accounting the lease of fixed assets (lease for operating)

Fixed assets leased for operating are assets leased for use, when the contract is expired, they will be returned the lender, including the fixed assets leased from individuals and other units, or fixed assets leased from Commune People’s Committee (including the fixed assets of the former cooperatives previously assigned to CPC for management).

- The value of leased assets by contract accounted on the account 001 "Assets leased from outside" (Accounts out of the balance sheet).

- Assets leased for cooperatives’ use must not be deducted for depreciation.

- Payable rental of assets, cooperatives account into costs of production, business or costs of cooperative management (including rental or amount of depreciation that cooperative must pay to the Commune People’s Committee on the number of assets of former cooperatives managed by the Commune People’s Committee).

Debit Account 154 - Cost of production and unfinished business (If assets are used for production or business)

Debit - Account 642 - Cost of business management (If assets are used for cooperative management)

Credit – Accounts 111, 112, 331

...

...

...

This account is used to reflect the amount sent by the cooperative members to cooperative for receiving interest in the form of internal credit.

Accounting this account must open books to monitor in detail for each depositor according to the criteria: Date of deposit, number of deposit, term of deposit, interest received, ...

4.1. The structure and content of reflection of the Account 322 - Deposits of cooperative members

Debit:

The amount withdrawn by cooperative members

Credit:

The amount sent into by cooperative members.

Credit’s Balance:

The amounts that cooperative members are still sending in the cooperatives

...

...

...

4.2.1. When receiving deposits of cooperative members, based on relevant documents, record:

Debit - Accounts 111, 112

Credit - Account 322 - Deposits of cooperative members.

4.2.2. As to the period of interest receipt, payment of interest for cooperative members or cooperative members suggest adding interest into principal deposits, record:

Debit - Account 635 - Expenses for financial activities, internal credit (6352)

Credit - Accounts 111, 112 ... (Payment of interest for cooperative members)

Credit - Account 322 - Deposits of cooperative members (add the interest into the original deposit).

4.2.3. When cooperative members withdraw due deposits in cash or bank deposits, based on the paper of receiving cash or a written request to transfer money into bank deposit accounts, record:

Debit - Account 322 - Deposits from cooperative members

...

...

...

5. Account 336 – Internally payable

This account is used to reflect the payment of liabilities between cooperative and affiliated enterprises (established by the cooperative) on the items payable or the items that the cooperative spent, collected as a substitute for the affiliated enterprises.

5.1. Accounting this account should comply with the following principles

5.1.1. Account 336 reflects only the economic content of the internal relations of payment for items payable between cooperatives and affiliated enterprises out of the relations of capital.

5.1.2. Content of items internally payable reflecting on Account 336 "Internally payable" includes:

- Amounts that affiliated enterprises must pay to the cooperatives;

- The amounts that cooperative collected as a substitute for the affiliated enterprises.

5.1.3. Account 336 "Internally payable" is accounted in detail for each unit having payment relation, which are monitored by each item payable.

5.1.4. End of period, accountant inspects, compares the Accounts 136, Account 336 between the units according to each item of internal payment to make a record of offset by each unit as a basis for offset accounting on these two Accounts. When comparing, if there is any difference, it must find the cause and make timely adjustments.

...

...

...

Debit:

- The amount paid to affiliated enterprise on the items that the affiliated enterprise has paid, spent as a substitute or the amount already collected by affiliated enterprise as a substitute;

- Offsetting amounts receivable with amounts payable of the same unit with the payment relation.

Credit:

The amount that cooperative must pay to affiliated enterprises on the items to be paid, spent as a substitute by such enterprises and other amounts to be collected as a substitute by cooperative.

Credit’s Balance:

Remaining amount payable to affiliated enterprises

5.3. Accounting methods in some of the main economic professional skills

5.3.1. Where the cooperative must grant to cover losses on trading activities for affiliated enterprises, record:

...

...

...

Credit - Account 336 – Internally payable.

5.3.2. Cooperative determines the amount payable to affiliated enterprises on the amounts that affiliated enterprises have spent, paid as a substitute or amounts already collected by cooperative as a substitute for affiliated enterprises, record:

Debit - Accounts 152, 153, 211...

Debit - Account 331 - Payable to sellers

Debit - Account 642 - Cost of business management

Credit - Account 336 – Internally payable.

5.3.3. When cooperative pays to affiliated enterprises on the amounts spent, paid, collected as a substitute, record:

Debit - Account 336 - Internally payable

Credit - Accounts 111, 112...

...

...

...

Debit - Account 336 - Internally payable

Credit - Account 136 – Internally receivable.

6. Account 359 - The reserve fund for internal credit risk

This account is used to reflect the current number and statement of increase or decrease of the risk reserve fund of internal credit of the cooperatives with internal credit activities.

Risk reserve fund is appropriated to cover losses, damages due to objective reasons in the course of lending cooperative members.

Risk reserve is charged to expenses of annual internal credit activity at the rate regulated by current internal credit Regulations of cooperatives.

6.1. Accounting of this account should comply with the following principles

6.1.1. The use of reserve funds to credit risk must comply with the use’s purpose has been prescribed in the internal credit Regulations of cooperatives. Where debt deletion for amount lent cooperative member more than the appropriated amount, it shall be offset by the number of reserves has been established, the remaining amount shall be recorded in the cost of internal credit activities.

6.1.2. End of the year, before accounting books are closed, financial statement is made, Cooperative inventories to classify loans, determine the ability to collect debts and losses that may happen to have the basis to make provision for the loans. If the reserve required to be established this year is larger than the number made in the previous year that has not been used up, then supplement the difference and record in costs of internal credit activities. If the reserve required to be established this year is smaller than the number made in the previous year that has not been used up, then refund the difference and record decrease of the cost of internal credit activities.

...

...

...

6.2. The structure and content of reflection of the Account 359 - The reserve fund for internal credit risk

Debit:

- The reserve fund for internal credit risk to be decreased by use of risk coverage;

- Refund the number of reserve for risk on loans to cooperative members smaller than the number of reserve has been appropriated in the previous year unused.

Credit:

- To reflect the number provided for internal credit risk charged to expense of internal credit activities by a prescribed proportion.

Credit’s Balance:

Existing reserve fund of credit risk at the end of year

6.3. Accounting methods in some of the main economic professional skills

...

...

...

Debit - Account 635 - Expenses for financial activities, internal credit (6352)

Credit - Account 359 - The reserve fund for internal credit risk.

6.3.2. When cooperative uses reserve fund of internal credit risk (to offset the loans lost due to objective causes such as natural disasters, epidemic diseases for plants and livestock; the borrowers cannot afford for repayments due to sickness, death, missing ... and the other objective reasons) according to decision of the Management Board of Cooperative, record:

Debit - Account 359 - The reserve fund for internal credit risk

Credit - Account 122 – Lending cooperative members.

6.3.3. When setting up reserves, if the number of reserve required to be established is smaller than the number made in the previous year not yet being used up, the smaller difference must be refunded, record:

Debit - Account 359 - The reserve fund for credit risk

Credit - Account 635 - Expenses of financial activities, internal credit (6352)

7. Account 411 - Business capital source

...

...

...

Business capital of the cooperative is formed from the capital contributed by cooperative members when joining in the cooperative and additionally contributed capital; from profit after tax decided by the General Assembly of cooperative members to deduct part or all for adding business capital of cooperative; from capital contributed from the joint venture of organizations and individuals; from the investment support of the Record in cash or in kind; from other sources such as non-refundable grants of the Record, presents, gifts and donations of organizations and individuals inside and outside the country.

7.1. Accounting of this account should comply with the following principles

7.1.1. The cooperatives accounts for in Account 411 "Business capital" according to the actual amount received in cash, by newly formed property, or mobilization of capital to expand the scope of cooperative activities. Cooperatives do not accounted for in this Account the capital registered for contribution but not been contributed yet.

7.1.2. Cooperatives must organize to account in detail the business capital by each formation source. In which it is required to monitor in detail for each cooperative partner.

7.1.3. Only record decrease of the number of business capital as the cooperative returns capital contributed to cooperative members upon termination of status of cooperative members, returns contributed capital to the parties of joint venture, partners.

7.1.4. Where receiving the capital of organizations and individuals contributed by property, then the cooperative must reflect the increase of business capital according to the re-valuation of assets to be accepted by the capital contributors. Where receiving capital contributed in foreign currency, it shall be converted into Vietnam dong at the actual exchange rate or the average exchange rate on the inter-bank money market announced at the time arising by the Record Bank of Vietnam; during the course of operation, not to re-assess the Credit balance of Account 411"Business capital" with foreign origin.

7.2. The structure and content of reflection of the Account 411 - Business capital

Debit:

Business capital of cooperatives decreased by:

...

...

...

- Dissolution and liquidation of cooperatives;

- Compensation of business losses by decision of the General Assembly of cooperative members.

Credit:

Business capital of cooperatives increased by:

- Receipt of the capital contributed by cooperative members, the parties contributed capital to joint ventures, partners (initial capital contribution and additional capital contribution);

- Additional capital from business profits;

- The assistance of the Record's investment in cash or in kind for transport, agricultural irrigation and other infrastructure;

- Subsidies: The value of non-refundable grants of the Record, presents, gifts, donations of organizations and individuals inside and outside the country for the cooperative to raise business capital of cooperative.

Credit’s Balance:

...

...

...

Account 411 has 5 second grade Accounts:

+ Account 4111 - Capital contributed by cooperative members: Reflect the amount actually contributed, the amount actually withdrew upon the termination of the status of cooperative members and the capital contributed by cooperative members that are still at the end of period;

+ Account 4112 - Capital accumulated by cooperatives: Reflect the increase or decrease of the number of the accumulated capital of cooperatives from after-tax profit decided on adding the business capital by the General Assembly of cooperative members of the cooperative;

+ Account 4113 – Capital received from joint venture: Reflect the status of receiving, returning, and the existing capital contributed from joint venture of the cooperative;

+ Account 4114 - Capital of investment support of the Record: Reflect capital supported investment in transport, agricultural irrigation, and other infrastructure of the Record for Cooperatives;

+ Account 4118 - Other capital: Reflect business capital formed by receiving presents, gifts, donations from organizations and individuals inside and outside the cooperative.

7.3. Accounting methods in some of the main economic professional skills

7.3.1. When actual receipt of the capital contributed by the cooperative members, the parties of joint venture, based on capital contribution contracts, receipts and other relevant documents, record:

Debit - Accounts 111, 112, 152, 153, ....

...

...

...

Credit - Account 411 - Equity (4111, 4113)

7.3.2. Pursuant to the Resolution of the General Assembly of cooperative members on the decision on supplementing the business capital of the cooperative from after-tax profit, record:

Debit - Account 421 - Undistributed profit

Credit - Account 4112 - Accumulated Capital.

7.3.3. Upon receiving the grants of the Record in cash or in kind for transport, agricultural irrigation and other infrastructure, record:

Debit - Accounts 111, 112, 152, 155,...

Debit - Account 211 - Fixed assets (2111, 2113)

Credit - Account 4114 – Capital of investment support of the Record.

7.3.4. Upon receiving presents, gifts and donations of organizations and individuals; non-refundable subsidy of the Record, record:

...

...

...

Debit - Account 211 - Fixed assets (2111, 2113)

Credit - Account 4118 - Other capital

7.3.5. When returning contributed capital to the cooperative members, the parties of joint venture, record:

Debit - Account 411 - Business capital (4111, 4113)

Credit - Accounts 111, 112, ...

8. Account 418 - The funds of equity

This account is used to reflect the existing number and situation of increase or decrease of the equity funds of the cooperatives.

8.1. Accounting of this account should comply with the following principles

8.1.1. The equity funds of the cooperative include: the fund of investment and development, reserve fund and other funds.

...

...

...

8.1.3. The appropriation and use of equity funds must comply with current financial policies for the cooperative. The rate of appropriating the annual funds decided by the General Assembly of cooperative members but not less than as prescribed in Article 17 of Decree 177/2004/ND - CP dated 12/10/2004 of the Government.

8.2. The structure and content of reflection of the Account 418 - The equity funds

Debit:

Situation of expenditure, use of the equity funds

Credit:

Appropriation of equity funds

Credit’s Balance:

The funds under the existing equity at maturity

Account 418 - The equity fund has 3 second-grade Accounts:

...

...

...

- Account 4182 - The reserve fund: Reflect the existing number and the situation of increase or decrease of the reserve fund. Reserve fund is used to cover damages caused by force majeure and loss compensation of production and business.

- Account 4188 - Other funds: Reflect the existing number and the situation of increase or decrease of other funds formed from after-tax profit which is not the development fund of production, business and reserve fund.

8.3. Accounting method in some of the main economic professional skills

8.3.1. Based on Resolutions of the General Assembly of cooperative members on the appropriation of the equity fund, record:

Debit - Account 421 - Undistributed profit

Credit - Account 418 - The funds of equity (4181, 4182, 4188).

8.3.2. When using the development funds for production, business to purchase fixed assets, invest in basic construction completed and put into production, business, record:

Debit - Account 211 - Fixed assets

Credit - Account 241 – unfinished basic construction (in case of investment in basic construction)

...

...

...

Simultaneously record increase of business capital, decrease of the development fund of production and business:

Debit - Account 418 - The funds of equity (4181)

Credit - Account 411 - Business capital.

8.3.3. When spending reserve funds to compensate damage, losses for the production, business, record:

Debit - Account 418 - The funds of equity (4182)

Credit - Accounts 111, 112 ....

Credit - Account 421 – After-tax profit

9. Account - 511 – Revenue

This account is used to reflect the revenue of service activities for cooperative members and the production and business of the cooperative in an accounting period. Revenue of cooperative is the total value of products, goods and services that cooperative has sold, provided for its cooperative members and customers that have been paid or accepted payment (not yet collected money), including:

...

...

...

- Revenue from production, business: means the total value of commodities and services that the cooperative has sold, provided for the customers that have been paid or accepted payment (not yet collected money).

- Revenue from other activities: means the revenues from price support of the Record (collected from irrigation fee of the Record; promotion for Agriculture; Subsidy of electricity price, ..), revenue from the operation of leasing .. ..

9.1. Accounting of this Account should comply with the following principles

- Revenue of the cooperative is the total value of products, goods and services that cooperatives have sold, provided for to cooperative members and customers who are not cooperative members to be paid or accepted payment by cooperative members and customers. Revenue is recognized at prices of selling products, goods, and services.

- All revenues of the cooperative shall be calculated in money. In case of collecting by goods, services, goods exchange, it must be calculated into cash at the time of payment or accepting payment. All revenues arising in the period must have invoices and vouchers and shall be promptly reflected into accounting books by each type of revenue subject to CIT and not subject to CIT.

- For products, goods and services subject to VAT by deduction method, revenue from sales and services provision is VAT-exclusive price.

- For products, goods and services not subject to VAT, or subject to VAT by direct method, revenue from sales and services provision is the total price of payment.

- For products, goods and services subject to special consumption tax, or export duty, revenue from sales and services provision is the total price of payment (including special consumption tax, or export duty).

- The cooperatives taking to process materials, goods, only reflect into revenue of sales and service provision the processing amount to be enjoyed actually, not including value of materials and goods received for processing.

...

...

...

- The products, goods defined as sold, but for reasons of quality, technical specifications, buyers refuse to pay and return them to the seller or require for a discount and are accepted by cooperative, or buying goods with a high volume to be commercially discounted, the deductions for such revenue of sales are monitored separately on Account 521 "revenue deductions", end of period, transferred to Account 511 for calculating net revenue.

- Where in the period, cooperative has written invoices of sale and collected money but not yet disbursed goods, ownership and management of goods are still of cooperative, the amount which has been collected shall not recorded in the revenue that it is accounted as amounts collected advance from the clients.

- Not to account for in Account 511 for the following cases:

+ The value of goods, materials, semi-finished products disbursed to deliver outside for processing;

+ The value of products, goods being consigned for sale; finished services were provided to the customers but have not been determined as sold;

+ The value of goods sent on consignment by the method sending for dealers, consignment (Not yet determined as sold);

+ Revenue from financial activities, internal credit and other income;

+ Proceeds from debt collection, advance, collection of capital contributed by cooperative members, collection of capital contributed by joint venture of other organizations and individuals...

+ The investment subsidies for transportation, agricultural irrigation, and other infrastructure, freight subsidies, support of costs for the mountainous areas, borders of the Record.

...

...

...

Debit:

- The number of special consumption tax or export duty payable calculated on actual revenue of sales of products, goods and services provided to customers and is determined as sold in the accounting period;

- The amount of VAT payable by the cooperative calculated by direct method;

- The deductions from revenue (revenue of sales of goods being returned; amount discounting price of goods sold; amounts commercially discounted) shall be carried over at the end of the period;

- The carrying over of net revenue into Account 911 - "Determination of business results."

Credit:

Revenue of sales of goods and services provision of the cooperative implemented in the accounting period

Account 511 not having ending balance.

Account 511 has 3 second grade Accounts:

...

...

...

+ Account 5112 – Revenue from production, business: Reflect revenue of the overall value of products, goods, and services that the cooperative has sold, supplied to the customer and the customer has paid or accepted payment;

+ Account 5118 - Revenue from other activities: Reflect other revenues that have not been reflected in Account 5111, 5112, such as collection from price support of the Record (promotion of agriculture, support of electricity prices ...), collection from leasing property of cooperatives...

9.3. Accounting methods in some of special economic professional skills

9.3.1. Revenue operating service for cooperative members (not subject to tax), has been identified as provided in the accounting period, record:

Debit - Accounts 111, 112, 1312

Credit - Account 5111 – Revenue from providing services to cooperative members.

9.3.2. Accounting revenue from the grants, subsidies of the Record for the cooperatives (In particular, Record subsidies freight costs, supports cost for the mountainous areas, borders, the cooperatives accounts decrease of costs in the year).

a) Where being announced by the Record on funding, but not yet granted immediately, when receiving the notice, record:

Debit - Account 333 - Taxes and amounts payable to the Record (3339)

...

...

...

When receiving payment from the record budget, record:

Debit - Accounts 111, 112, ...

Credit - Account 333 - Taxes and amounts payable to the Record (3339).

b) Where the record budget grants, subsidies price in cash immediately to the cooperative, record:

Debit - Accounts 111, 112, ...

Credit - Account 5118 - Revenue from other activities.

9.3.3. The professional skills reflect revenue from business and production activities on Account 5112 - "Revenue from business, production activities", Co-operatives comply with Decision No.48/2006/QD-BTC.

10. Account 515 - Revenues from financial activities, internal credit

This account is used to reflect the revenue from interests, royalties, dividends, profit divided, interest from lending cooperative members and revenue from other financial activities of the cooperative.

...

...

...

- Interest: Interest from lending cooperative members, interest from bank deposits, interest from investment in bonds, bills of credit...

- Dividends and profits to be divided;

- Income from activities of investment, purchase, or sale of securities in a short and long term;

- Income from recovery or liquidation or transfer of capital contributed from venture joint, investment in associated companies, other capital investment;

- Interest from exchange rates;

- Interest difference from selling foreign currencies;

- The revenues from other financial activities.

10.1. Accounting of this account should respect some following principles

- Revenues from financial activities, internal credit are reflected on Account 515 including the revenues from interest, royalties, dividends, profit to be divided, interest for lending cooperative members, and revenue from other financial activities considered as the implementation in the period, regardless of the revenues have been collected money in reality or not yet collected money.

...

...

...

- In case of liquidation or transfer of investments in joint venture companies, associated companies, other entities, revenues recognized in Account 515 is the difference between the sale price more than the original price.

10.2. The structure and content of reflection of the Accounts 515 – Revenue from financial activities, internal credit

Debit:

- The amount of VAT payable calculated by direct methods (if any);

- Carrying over of revenues from net financial activity to Account 911 - "Determination of business results."

Credit:

- Interest from loans to cooperative members;

- Interest, dividends and distributed profits;

- Interest from sale of the investments in joint venture companies, associated companies;

...

...

...

- Interest of exchange rate due to revaluate at the end of the financial year the monetary items with origin from foreign currency of business activities;

- Revenues from other financial activities arising in the period.

Account 515 has no ending balance.

10.3. Accounting methods in some of the main economic professional skills

10.3.1. Reflection of revenues from dividends, profits divided arising in the period from activities of investment capital contribution, record:

Debit - Accounts 111, 112, 1318,...

Credit - Account 515 – Revenue from financial activities, internal credit (5151).

10.3.2. Method of accounting securities investment activities:

- When buying short-term or long term securities of financial investment, based on cost actually purchased, record:

...

...

...

Credit - Accounts 111, 112, 141, ...

- Periodically, count interest and collect interest from bonds, bills of credit or receive notice of dividends, profits enjoyed, record:

Debit - Accounts 111, 112, 1318, ...

Credit - Account 515 - Revenue from financial activities, internal credit (5151).

- When transfer of short-term or long term securities of financial investment, based on stock price:

+ In case of having interest, record:

Debit - Accounts 111, 112,... (By payment price)

Credit - Account 121 - Short-term financial investment (capital value)

Credit - Account 2218 - Other short-term financial investment (capital value)

...

...

...

+ In case of loss, record:

Debit - Accounts 111, 112 (by payment price)

Debit - Account 635 – Expenses of finance, internal credit (loss from selling securities)

Credit - Account 121 - Short-term financial investment (capital value)

Credit - Account 2218 - Other long-term financial investment (capital value)

- Recovery or payment of securities of short-term financial investments as to maturity, record:

Debit - Accounts 111, 112, ... (payment price)

Credit - Account 121 - Short-term financial Investment (Prime cost)

Credit - Account 515 - Revenue from financial activities, internal credit (5151).

...

...

...

Debit - Account 138 - Other receivables (1318)

Credit - Account 515 - Revenue from financial activities, internal credit (5151).

10.3.4. Revenues from interest of bank deposits arising in the period, record:

Debit Accounts 111, 112, ...

Credit - Account 515 - Revenue from financial activities, internal credit (5151).

10.3.5. Upon liquidation or transfer of investments in the joint venture companies, associated companies, accountants record revenue from financial activities into Account 515 as the difference between the sale prices greater than the prime cost, record:

Debit - Accounts 111, 112, ...

Credit - Account 2212 – Contributed capital in joint ventures (Prime cost)

Credit - Account 2213 - Investments in associated companies (Prime cost)

...

...

...

10.3.6. When the cooperatives purchase materials, goods, fixed assets and services paid in foreign currency: If the average interbank exchange rate or the actual exchange rate greater than the exchange rate on the account books of Accounts 111, 112, record:

Debit - Accounts 152, 153, 155, 157, 211, 241, 642, 133, ... (By the average interbank exchange rate or the actual exchange rate)

Credit - Accounts 111 (1112), 112 (1122) (by the exchange rate recorded in account books of Accounts 1112, 1122)

Credit - Account 515 - Revenue from financial activities, internal credit (interest of exchange rate) (5151).

10.3.7. When cooperative makes payment for liabilities (debt payable to sellers, short-term, long-term loans ...) in foreign currency, if the exchange rate on the account books of Accounts 111, 112 less than the account book of the Accounts, state:

Debit - Accounts 311, 331, ... (The rate on account books)

Credit - Account 515 - Revenue from financial activities, internal credit (interest of exchange rate)

Credit - Accounts 111 (1112), 112 (1122) (Exchange rate on the account books of Accounts 1112, 1122).

10.3.8. When receiving money receivable in foreign currency (receivables from customers, other receivables ...), if different interest of exchange rate arises, when making payment for debts receivable in foreign currency, record:

...

...

...

Credit - Account 515 - Revenue from financial activities, internal credit (interest of exchange rate) (5151)

Credit - Account 131 (Rate on account books).

10.3.9. When handling differences of exchange rate due to revaluate foreign currency balances at the end of fiscal year of the monetary items with origin in foreign currency of business activities and accountants carry over the entire amount of difference of the exchange rate revaluated at the end of fiscal year into revenue from financial activities, internal credit (If it is the interest of exchange rate), record:

Debit - Account 413 - Foreign exchange differences

Credit - Account 515 - Revenue from financial activities, internal credit (5151).

10.3.10. Every period, identify and carry over interest revenue for the loans to cooperative members or purchase of bonds receiving advance interest, record:

Debit - 3387 - Unearned revenue

Credit - Account 515 - Revenue from financial activities, internal credit.

10.3.11. End of the accounting period, identify number of VAT payable by the direct method for financing activities (if any), record:

...

...

...

Credit - Account 3331 - Payable VAT.

10.3.12. End of the accounting period, the carrying over revenue from financial activities arising in the period to Account 911 - "Determination of business results", record:

Debit - Account 515 - Revenues from financial activities, internal credit

Credit - Account 911 - Determination of business results.

11. Account 635 - Expenses for financial activities, internal credit

This account reflects the costs of financial activities (including expenses or losses related to the financial investment activities, the costs of capital contribution to joint ventures, association, losses from transfer of short-term securities, costs of transaction selling securities, the losses incurred when selling foreign currency, losses of exchange rate) and costs of internal credit activities (including cost for paying interest from deposit, costs for loan activities to cooperative members, appropriation of a reserve fund for internal credit risk).

Account 635 shall be accounted in detail for each expense.

Not account into Account 635 the following contents of expenses:

- Expenses for the production of products, services provision;

...

...

...

- Cost of basic construction investment;

- Other expenses.

11.1. The structure and content of reflection of the Accounts 635 - Expenses from financial activities, internal credit

Debit:

- Expense on loans interest, interest on procurement of deferred payment, interest from property, finance lease;

- Loss of foreign currency;

- Loss of liquidation or transfer of investments;

- Loss of exchange rate incurred in the period of business activity (loss from exchange rate has done);

- Loss of exchange rate from revaluate at the end of fiscal year the monetary items with origin in foreign currency of business activities (loss of exchange rate has not done);

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- The other costs of finance, internal credit.

Credit:

- Refund provision for internal credit risks (difference between the number of reserve required to establish this year smaller than the number of reserve appropriated in previous year that has not been used up);

- End of the annual accounting period, carry over the entire financial costs incurred in the period to determine the business operating results.

Account 635 has no ending balance.

Account 635 - Expenses for financial activities, internal credit have 2 second grade Accounts:

- Account 6351 - Expenses for financial activities: reflect the expenses of financial activities, including costs from loan interest, interest  from procurement of deferred payment, losses from selling foreign currencies, and losses from liquidation or transfer of investments, foreign exchange losses incurred in the period of business activities ....

- Account 6352 – Expenses for internal credit activities: Reflect the costs of internal credit activities arising in the period, including interest from deposits payable to cooperative members who sent money, expense for appropriation of credit risk reserve....

11.2. Accounting methods in some of the main economic professional skills

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Debit - Account 635 – Expenses for financial activities, internal credit

Credit - Accounts 111, 112, 141,...

11.2.2. When selling capital contributed in joint ventures, capital invested in associated companies that selling price less than the value of contributed capital (loss), record:

Debit - Accounts 111, 112, ... (Selling price)

Debit - Account 635 - Expenses for financial activities, internal credit (number of losses)

Credit - Account 221 - Long-term financial investment (2212, 2213) (Prime cost)

11.2.3. Upon receipt of the capital contributed to joint ventures, taking back the capital contributed to associated companies which property value is divided less than contributed capital value, record:

Debit - Accounts 111, 112, 152, 211, ... (Value of asset to be divided)

Debit - Account 635 - Expenses for financial activities, internal credit (number of losses)

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11.2.4. The costs incurred related to the internal credit activities, record:

Debit - Account 635 - Expenses for financial activities, internal credit

Credit - Accounts 111, 112, 141, ...

11.2.5. Loss incurred when selling foreign currencies of business activities, record:

Debit - Accounts 111 (1111), 112 (1121), ... (by the selling exchange rate)

Debit - Account 635 - Financial expenses (losses - if any)

Credit - Accounts 111 (1112), 112 (1122), ... (by the exchange rate recording in account books).

11.2.6. Where the cooperative must pay periodically loan interest to the lender, the interest from deposits for cooperative members, record:

Debit - Account 635 - Expenses for financial activities, internal credit.

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11.2.7. Where the cooperatives pay in advance loan interest to lenders, record:

Debit - Account 142 - Short-term prepaid expenses (if paying in advance short-term loan interest)

Debit - Account 242 - Long-term prepaid expenses (if paying in advance long-term loan interest)

Credit - Accounts 111, 112, ...

Periodically, when allocating loan interest by the payable number for each period into financial expenses, record:

Debit - Account 635 - Expenses for financial activities

Credit - Account 142 - Short-term prepaid expenses

Credit - Account 242 - Long-term prepaid expenses.

11.2.8. When the purchase of fixed assets by the form of deferred payment, installment payment of immediate use for production and business activities, record:

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Debit - Account 133 - VAT deductible (if any)

Debit - Account 242 - Long-term prepaid expenses {The deferred interest is the difference between the total amount payable minus (-) Purchase price paid immediately minus (-) VAT (if deductible)}

Credit - Account 331 - Payable to sellers (total payment price).

Periodically, calculating into the financial cost the interest from buying goods for deferred payment, installment payment payable, record:

Debit - Account 635 - Expenses for financial activities, internal credit

Credit - Account 242 - Long-term prepaid expenses.

11.2.9. For cooperatives which are manufacturing, trading when buying goods or services pay for in foreign currency if the average interbank exchange rate or the actual exchange rate less than the rate in the account books of Accounts 111 , 112, record:

Debit - Accounts 152, 153, 154, 155, 157, 211, 241, ... (by average interbank exchange rate or the actual exchange rate)

Debit - Account 635 - Expenses for financial activities, internal credit (loss of exchange rate)

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11.2.10. When making payment for liabilities (debts payable to sellers, short-term loans, long term loans) in foreign currency, if the exchange rate in the account books of the debts payable less than the rate in the account books of Accounts 111, 112, record:

Debit - Accounts 311, 331, ... (Rates recorded in account books)

Debit - Account 635 - Expenses for financial activities, internal credit (loss of exchange rate)

Credit - Accounts 111 (1112), 112 (1122), ... (Rate in account books of Accounts 111, 112).

11.2.11. When debts receivable is received in foreign currency (receivables from customer, other receivables,...), if the exchange rate in the account books of the receivable Accounts is more than the actual exchange rate or the average inter-bank exchange rate, record:

Debit - Accounts 111 (1112), 112 (1122),... (the actual exchange rate or the average inter-bank exchange rate)

Debit - Account 635 - Expenses for financial activities, internal credit (loss of exchange rate)

Credit -Account 131 (exchange rate in the account books of Account 131).

11.2.12. Handling of exchange rate differences of revaluation of foreign currency balance at the end of the fiscal year of the monetary items with origin in foreign currency of business activities, accountants carry over the entire different amount of the exchange rate of revaluation at the end of the fiscal year of business activities into the financial costs (If, after offsetting the incurred number of the Debit, the Credit of Account 413 if this account has debit balance) to determine the business results.

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Debit - Account 635 - Expenses for financial activities, internal credit (If it is the exchange rate loss)

Credit - Account 413 - Foreign exchange differences.

11.2.13. When selling the long term, short-term financial investments that the selling price is less than cost price, record:

Debit - Accounts 111, 112, ... (Selling price)

Debit - Account 635 - Expenses for financial activities, internal credit (The difference between the cost price more than the selling price)

Credit - Accounts 121, 2218 (Prime cost).

11.2.14. End of year, after the provision for internal credit risk, record:

Debit - Account 635 - Expenses for financial activities, internal credit

Credit - Account 359 - The reserve fund for internal credit risk.

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Debit - Account 911 - Determination of business results

Credit - Account 635 - Expenses for financial activities, internal credit.

12. Account 821 - Costs of Corporate Income Tax

This account is used to reflect corporate income tax cost incurred in year used as a basis for determining the result of after-tax business of cooperatives in the fiscal year.

12.1. The structure and content of reflection of the Account 821 – Corporate income tax cost

Debit:

- The current cost of corporate income taxes incurred in the year;

- The costs of corporate income tax of the previous years required to pay additionally.

Credit:

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- Carry over the cost of corporate income tax into the Debit of Account 911 "Determination of business results".

Account 821 has no ending balance.

12.2. Accounting methods in some of the main economic professional skills

12.2.1. Every quarter, accountants must determine the amount of corporate income tax temporarily payable in accordance with the Law on Corporate Income Tax arising in the period and record costs of corporate income tax, record:

Debit - Account 821 - Costs of Corporate Income Tax

Credit - Account 3334 - Corporate Income Tax.

When making payment for corporate income tax into the state budget, record:

Debit – Account 3334 - Corporate Income Tax

Credit - Accounts 111, 112,...

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- If the amount of enterprise income tax actually payable in the year more than the amount of corporate income tax has been recorded, accountants reflect additionally the amount of corporate income tax payable, record:

Debit - Account 821 - Costs of Corporate Income

Credit - Account 3334 - Corporate Income Tax.

- If the amount of enterprise income tax payable in the year smaller than the amount of corporate income tax has been recorded, accountants record decrease of the cost of corporate income tax, record:

Debit - Account 3334 - Corporate Income Tax

Credit - Account 821 - Cost of Corporate Income Tax

12.2.3. If detecting errors of the previous year related to the corporate income tax payable for previous years, cooperatives are recorded increase (or decrease) the cost of corporate income tax of previous years into cost of corporate income tax of the year detected errors.

- In case of detecting errors of the previous years led to the increase of corporate income tax payable for previous years, cooperatives are recorded increase for cost of corporate income tax of the reporting year, record:

Debit - Account 821 - Costs of Corporate Income Tax

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- In case of detecting errors of the previous years led to the decrease of corporate income tax payable for previous years, cooperatives are recorded decrease for corporate income tax payable and cost of corporate income tax of the reporting year, record:

Debit – Account 3334 - Corporate Income Tax

Credit - Account 821 - Cost of Corporate income tax.

12.2.4. End of the annual accounting period; carry over cost of corporate income tax incurred in the year to determine the after-tax profit, record:

Debit - Account 911 - Determination of business results

Credit - Account 821 - Cost of Corporate income tax

13. Account 911 - Determination of business results

This account is used to identify and reflect the results of activities of business, production, services and other activities of cooperatives in an annual accounting period. The results of activities of business, production, services of cooperatives including results of production, business, services, results of financial activities, internal credit and other results of activities.

- The results of activities of business, production, services are the differences between the net revenue and prime cost of goods sold and cost of business management.

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- Results of other activities are the differences between other income and other costs.

13.1. Accounting of this account needs to respect some following rules

- This account reflects fully and accurately business results of the accounting period in accordance with the provisions of this accounting regime.

- The results of production, business, services must be accounted in details by each type of activity (Activities of production, processing and trading, services, provision of services to cooperative members, the internal credit activities, and other financial activities, ...), in each type of production, business and services required to account in details for each type of product, each line and each type of service depending on the requirements for the management of cooperatives.

- Revenues and earnings carried over into this account are the net revenues and net income.

13.2. The structure and content of reflection of the Account 911 - Determination of business results

Debit:

- Prime cost of products, goods, and services provided for;

- The costs of financial activities, internal credit and other expenses;

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- The cost of corporate income tax;

- The carrying over of interest.

Credit:

- Net revenues of number of products, goods, and services provided for during the period;

- Revenues from financial activities, internal credit and other income;

- Carrying over of losses.

Account 911 has no ending balance.

13.3. Accounting methods in some of the main economic professional skills

13.3.1. End of accounting period, carry over the net revenue of goods sales and services provision incurred in the period into Account 911 "Determination of business results", record:

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Credit - Account 911 - Determination of business results.

13.3.2. Carrying over of capital value of the products, goods sold and services provided for during the period and the expenses incurred recorded directly into prime cost of goods sold, record:

Debit - Account 911 - Determination of business results

Credit - Account 632 – Prime cost of goods, products, and services.

13.3.3. End of accounting period, carrying over of business management expenses, record:

Debit - Account 911 - Determination of business results

Credit - Account 642 - Cost of business management.

13.3.4. End of the accounting period, carrying over of revenues of financial activities, internal credit, and other income incurred in the period, record:

Debit - Account 515 - Revenues from financial activities, internal credit

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Credit - Account 911 - Determination of business results.

13.3.5. End of accounting period, carry over costs of financial activities, internal credit and other expenses, record:

Debit - Account 911 - Determination of business results

Credit - Account 635 – Expenses from financial activities, internal credit

Credit - Account 811 - Other expenses.

13.3.6. End of accounting period, carry over cost of corporate income tax incurred in the period, record:

Debit - Account 911 - Determination of business results

Credit - Account 821 - Cost of corporate income tax.

13.3.7. Carrying over of after-corporate income tax profit in the period, record:

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Credit - Account 421 - Undistributed profit

13.3.8. Carrying over of losses incurred in the period, record:

Debit - Account 421 - Undistributed profit

Credit - Account 911 - Determination of business results.

14. Account 005 - Tools, durable instruments being used

Account 005 is used to reflect the value of the types of tools and durable instruments being used in cooperative. Tools, durable instruments being used are the tools and instruments with relatively large value and longer duration of use (over 1 year), required to tightly be controlled since disbursing them for use until being broken.

Tools and durable instruments being used must be accounted in detail according to each type, each place of use, and each person being responsible for the material. In each type of tool and durable instrument being used must be accounted in detail according to the targets of quantity, unit price, and amount.

The departments or individuals assigned to manage and use tools, durable are responsible for closely managing or not letting them lost or damaged.

When tools, durable instruments are broken, lost, divisions being assigned to manage and use must send written report on the damage or loss of property with representatives of the department and the individual assigned to manage and use certify for used as a basis for determining liability for material.

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Debit: The value of tools and durable instruments increased due to disbursing for use.

Credit: The value of tools and durable instruments decreased due to reporting damage, loss and other causes.

The balance of the debit: The value of tools and durable instruments currently being used in the cooperatives.

15. Account 006 - Collateral Assets

This account is used to reflect the value of the pledged, mortgaged assets of cooperative member assigned to cooperative to ensure loans required to have collateral assets.

The structure and content of reflection of the Account 006 - Collateral Assets

Debit: The value of the mortgage, pledge of cooperative member assigned to the cooperative for management to ensure loan.

Credit:

- The value of the mortgage, pledge to be returned to the cooperative member as making repayment of loan;

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Debit’s balance: The value of mortgage, pledge of cooperative member that the cooperative is managing.

16. Account 008 - Interest from overdue loans not yet obtained

This account is used to reflect the number of loan interest overdue as prescribed by law on cooperative credit allowed to transfer for monitoring out of balance sheet that cooperative has not obtained.

The structure and content of reflection of the Account 008 – Loan interest overdue not yet obtained:

Debit: Number of loan interest overdue not yet obtained.

Credit: Number of loan interest overdue obtained.

Debit’s balance: Reflect number of loan interest overdue not yet obtained still required to collect.

II. SYSTEM OF FINANCIAL STATEMENTS AND FINANCIAL DISCLOSURE REPORTS

Article 7. Financial statement system of the Cooperatives

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1.1. Accounting balance sheet

Form No.B01a - HTX

1.2. Account balance sheet

Form No.B01b-HTX

1.3. Report of business results

Form No.B02 - HTX

1.4. Report of the situation of increase, decrease of equity of cooperative

Form No.B05- HTX

1.5. Report of collection, expenditure for internal credit activities

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1.6. General report on the situation to lend cooperative members

Form No.B07 - HTX

1.7. Written explanation of financial statement

Form No.B09 - HTX

(The cooperatives made and submitted the Accounting balance sheet, are not required to submit the Account balance sheet; the cooperatives of small scale are only required to submit the Account balance sheet).

2. Reports used for financial disclosure

1.1. Written explanation of financial statement

Form No.B09 - HTX

1.2. Report of business results

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1.3. Report of inventory result of fixed assets at the end of the year

Form No.B04a - HTX

1.4. Report of inventory result of materials, products, goods at the end of the year

Form No.B04b - HTX

 (In particular, Form No.B02 - HTX and B09 - HTX are used generally as the financial statements)

Article 8. Responsibilities and time to make and send financial statements

1. Responsibilities and time to make and send financial statements

- All cooperatives must comply with regulations on financial statement system (List, Form and method of preparation) and set up, send financial statements annually in accordance with regulations.

- The time limit for submission of annual financial statement is no later than 60 days from the end of the fiscal year.

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2. Recipients of annual financial statements

The annual financial statements must be sent to the following organizations:

- Department of Planning and Finance;

- Department of Agriculture & Rural Development;

- Branches of Tax (Urban and Rural Districts).

III. REGIME OF ACCOUNTING VOUCHERS

Article 9. Accounting vouchers applied to cooperatives shall comply with the Accounting Law, Decision No.48/2006/QD-BTC (The accounting voucher regime) and the provisions of this Circular (the list of accounting vouchers - According to Appendix 03).

For the cooperatives with internal credit activities, in addition to the application of accounting voucher regime as prescribed above, they shall also comply with vouchers of internal credit activities prescribed by the State Bank.

IV. REGIMES OF ACCOUNT BOOKS

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Part III

ORGANIZATION OF IMPLEMENTATION

Article 11. This Circular takes effect 45 days after its signing and replaces the accounting regime applicable to Agricultural Cooperatives issued together with Decision No.1017/QD-BTC dated 12/12/1997 of the Minister of Finance.

The cooperatives implement the inventory, closing, withdrawal of the account balance and transfer of account books according to this accounting regime from fiscal year 2010.

Article 12. Director of the Regime of Accounting and Auditing, the People's Committees of provinces and cities directly under the Central Government and heads of concerned units shall implement this Circular.

Within the regulations on accounting regime of the cooperatives in this Circular, the Departments of Finance shall coordinate with the Departments of Agriculture and Rural Development of provinces and cities under central Government to research, direct and guide the cooperatives to apply the regulations on accounting accounts, accounting vouchers, account books and the selection of the form of account books in accordance with the capacity and capability of accountants and the conditions of application of the cooperatives in the local area./.

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