THE MINISTRY OF FINANCE OF VIETNAM | THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom – Happiness No.: 14/2023/TT-BTC | Hanoi, March 07, 2023
CIRCULAR
GUIDELINES ON ACCOUNTING FOR VIETNAM DEVELOPMENT BANK
Pursuant to the Law on Accounting No. 88/2015/QH13 dated November 20, 2015;
Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated June 16, 2010; the Law No. 17/2017/QH14 dated November 20, 2017 providing amendments to the Law on Credit Institutions No. 47/2010/QH12;
Pursuant to the Government’s Decree No. 174/2016/ND-CP dated December 30, 2016 elaborating some articles of the Law on Accounting;
Pursuant to the Government’s Decree No. 46/2021/ND-CP dated March 31, 2021 on financial management and performance assessment of Vietnam Development Bank (VDB);
Pursuant to the Government’s Decree No. 87/2017/ND-CP dated July 26, 2017 defining functions, tasks, powers and organizational structure of the Ministry of Finance of Vietnam;
At the request of the Director of the Department of Accounting and Auditing Regulations;
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Chapter I
GENERAL PROVISIONS
Article 1. Scope
1. This Circular introduces regulations on chart of accounts, accounting principles, structure and entries of accounts; preparation and presentation of financial statements and consolidated financial statements; accounting records and accounting books of Vietnam Development Bank (hereinafter referred to as “VDB”).
2. This Circular does not apply to determination of VDB’s tax liabilities.
3. Regarding contents which are not specified in this Circular, VDB shall comply with:
a) Decision No. 479/2004/QD-NHNN dated April 29, 2004 of the Governor of the State Bank of Vietnam; Decision No. 1146/2004/QD-NHNN dated September 10, 2004 of the Governor of the State Bank of Vietnam; Circular No. 10/2014/TT-NHNN dated March 20, 2014 of the Governor of the State Bank of Vietnam; Circular No. 49/2014/TT-NHNN dated December 31, 2014 of the Governor of the State Bank of Vietnam; Circular No. 22/2017/TT-NHNN dated December 29, 2017 of the Governor of the State Bank of Vietnam; Circular No. 27/2017/TT-NHNN dated December 31, 2021 of the Governor of the State Bank of Vietnam; and their amending or superseding documents (if any); and
b) Vietnamese accounting standards; Circulars providing guidelines for application of Vietnamese accounting standards; and their amending or superseding documents (if any).
Article 2. Regulated entities
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1. VDB and its departments and affiliated units, including: VDB Office; departments and boards of VDB Office; Operations Centers, branches and units performing bookkeeping activities.
2. Other organizations and individuals involved in bookkeeping activities, preparation and presentation of financial statements and consolidated financial statements of VDB.
Chapter II
SPECIFIC PROVISIONS
Article 3. Chart of accounts
1. The chart of accounts, contents, structure and methods for recording certain accounts of VDB shall comply with the provisions of Appendix I enclosed herewith.
2. Depending on its management requirements, VDB may create level-2 or lower-level subaccounts of accounts of which level-2 and level-3 subaccounts are not available.
3. VDB may apply the chart of accounts enclosed with the Decision No. 479/2004/QD-NHNN and its superseding documents with complying with the following amendments:
a) Some account titles on the chart of accounts applicable to VDB are changed as follows:
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- b) The title of level-II subaccount “387- Assets provided for ensuring fulfillment of the guarantor’s obligations of which ownership has been transferred to credit institutions, pending disposition” is changed into “387- Collateral provided for ensuring fulfillment of the guarantor’s obligations of which ownership has been transferred to VDB, pending disposition”;
- The title of level-I account “43- Credit institution’s issuance of valuable papers” is changed into “43- VDB’s issuance of valuable papers”;
- The title of level-II account “462- Payments to staff and employees of credit institutions” is changed into “462- Payments to VDB's staff and employees”; the title of level-II account “466- Payables for internal transactions within the system of credit institutions” is changed into “466- Payables for internal transactions within the system of VDB”;
- The title of level-III subaccount “4844- Reward fund of Management Board” is changed into “4844- Reward fund of Executives and Board of Supervisors”;
- The title of level-I account “60- Equity of credit institutions” is changed into “60- VDB’s equity”;
- The title of level-I account “61- Funds of credit institutions” is changed into “61- VDB’s funds”;
- The title of level-I account “69- Undistributed profits” is changed into “69- Undistributed retained earnings”;
- The title of level-I account “70- Revenue from credit activities” is changed into “70- Revenue from operating activities”;
- The title of level-I account “80- Payment for credit activities” is changed into “80- Payment for operating activities”;
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- The title of level-II account “868- Payments for trade union activities of credit institutions” is changed into “868- Payments for VDB’s trade union activities”;
- The title of level-III account “8695- Payments for audit and inspection of business of credit institutions” is changed into “8695- Payments for audit and inspection of business of VDB”;
- The title of level-I account “88- Contingent, deposit preservation and insurance expenses” is changed into “88- Contingent expenses”;
- The title of level-I account “96- Valuable papers issued by credit institutions” is changed into “96- Valuable papers issued by VDB”;
- The title of level-II account “998- Assets and valuable papers pledged or mortgaged by credit institutions” is changed into “998- Assets and valuable papers pledged or mortgaged by VDB”.
b) Accounting principles, structure and entries of accounts whose titles are amended as prescribed in Point a of this Clause shall comply with the provisions of Decision No. 479/2004/QD-NHNN and its amending documents.
4. Entries of accounts of category 7 - Incomes, category 8 - Expenses, account 39 - Interests and fees receivable, and account 49 - Interests and fees payable shall be recorded in accordance with regulations on financial management and performance assessment of VDB.
Article 4. Financial statements
1. VDB’s financial statements include annual financial statements and mid-year financial statements.
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- Statement of financial position
Form No. B01 - NHPT
- Income statement
Form No. B02 - NHPT
- Cash flow statement
Form No. B03 - NHPT
- Notes to financial statements
Form No. B04 - NHPT
b) A full set of VDB’s mid-year financial statements consists of:
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Form No. B01a - NHPT
- Mid-year income statement
Form No. B02a - NHPT
- Mid-year cash flow statement
Form No. B03a - NHPT
- Selective notes to financial statements
Form No. B04a - NHPT
2. Forms of financial statements and instructions for preparation and presentation of financial statements of VDB shall comply with the provisions of Appendix II enclosed herewith.
3. Principles for preparation and presentation of financial statements:
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b) Financial statements must be based on the economic nature rather than the legal form of transactions and events (i.e. the nature is more important than the form).
c) Liabilities shall not be recognized with the lower value than the value of accounts payable.
d) Items on the statement of financial position shall be organized in the order of liquidity.
dd) Items on the income statement shall be organized for each of operations in a manner that ensures the matching between revenues and expenses.
Article 5. Consolidated financial statements
1. VDB shall assume responsibility to prepare consolidated financial statements consolidating and presenting, in a general and comprehensive manner, information about assets, liabilities, and equity at the time of preparation of financial statements, business performance and income in the period of its units. VDB’s consolidated financial statements shall be prepared annually.
2. Consolidated financial statements consist of:
- Consolidated statement of financial position
Form No. B01 - NHPT/HN
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Form No. B02 - NHPT/HN
- Consolidated cash flow statement
Form No. B03 - NHPT/HN
- Notes to consolidated financial statements
Form No. B04 - NHPT/HN
3. Forms of VDB’s consolidated financial statements shall comply with the provisions of Appendix III enclosed herewith.
4. Methods for preparation of VDB’s consolidated financial statements shall comply with the provisions of the Circular No. 202/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance of Vietnam.
Article 6. Accounting records
1. VDB may design its own accounting records according to characteristics of its operations to meet its management requirements provided that they must contain primary contents as prescribed in the Law on Accounting and its guiding, amending or superseding documents (if any), and provide information on transactions in a transparent, adequate, comparable and verifiable manner.
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Article 7. Accounting books
1. VDB may design its own accounting books according to characteristics of its operations to meet its management requirements provided that they must satisfy accounting book requirements laid down in the Law on Accounting and its guiding, amending or superseding documents (if any), and provide information on transactions in a transparent, adequate, comparable and verifiable manner.
2. All departments and affiliated units of VDB that perform bookkeeping activities are required to open, record, manage and retain their accounting books in accordance with prevailing regulations.
Chapter III
IMPLEMENTATION
Article 8. Balance carryforward
1. VDB shall carry forward balances on their current accounts in accordance with VDB’s accounting policies enclosed with the Official Dispatch No. 15682/BTC-CDKT dated December 24, 2008 of the Ministry of Finance of Vietnam and other guiding documents as well as the provisions of this Circular.
2. VDB shall modify entries of their accounts in accordance with the provisions of this Circular and ensure that the presentation of its financial statements is conformable with regulations of law.
Article 09. Effect and implementation organization
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2. The Director of the Department of Accounting and Auditing Regulations, Chairperson of the Board of Directors and General Director of VDB and heads of relevant units are responsible for the implementation of this Circular.
3. Difficulties that arise during the implementation of this Circular should be reported to the Ministry of Finance of Vietnam for consideration./.
PP. MINISTER DEPUTY MINISTER Vo Thanh Hung