Issuance đá bóng trực tiếp a Circular providing guidelines for public sector accounting in Vietnam
Has the Circular providing guidelines for public sector accounting in Vietnam been issued yet? What are regulations on classification and rules for using chart đá bóng trực tiếp accounts in Vietnam? - Mr. Van (Ha Noi)
Issuance đá bóng trực tiếp a Circular providing guidelines for public sector accounting in Vietnam
On April 17th, 2024, the Minister đá bóng trực tiếp Finance đá bóng trực tiếp Vietnam promulgates the Circular 24/2024/TT-BTC providing guidelines for public sector accounting.
The Circular 24/2024/TT-BTC provides guidelines for the following entities:
- Regulatory authorities (except People's Committees đá bóng trực tiếp communes, wards, and commune-level towns that are funded by commune-level budget);
- Public administrative units (except public administrative units that self-cover both recurrent and investment expenses and are allowed by competent authorities to apply corporate accounting regimes; however, if these units are allocated state budget estimates with domestic funding sources, receive ODA grants from foreign donors which are recorded as state budget revenues, receive foreign loans for implementing projects, or incur expenses which are covered with deducted or retained amount đá bóng trực tiếp collected fees as prescribed by the law on fees and charges, they shall be required to prepare final statements đá bóng trực tiếp operating funding according to provisions đá bóng trực tiếp Appendix III enclosed herewith);
- Political organizations; socio-political organizations; Vietnamese Fatherland Front and other authorities, organizations and units that are funded by state budget;
- Organizations, authorities and units that apply financial autonomy đá bóng trực tiếp public administrative units.
Note: Organizations, authorities and units are assigned to manage and do bookkeeping đá bóng trực tiếp infrastructure assets in accordance with regulations đá bóng trực tiếp law on management and use đá bóng trực tiếp public property. Enterprises assigned to manage infrastructure assets without calculation đá bóng trực tiếp state capital portion đá bóng trực tiếp such enterprises shall apply off-balance-sheet (OBS) accounts prescribed in the Circular 24/2024/TT-BTC to recording đá bóng trực tiếp entries in their accounting books; enterprises assigned to manage infrastructure assets with calculation đá bóng trực tiếp state capital portion đá bóng trực tiếp such enterprises shall do bookkeeping in accordance with regulations on corporate accounting.
Other organizations, authorities and units that are not funded by state budget may do accounting depending on their operations.
Issuance đá bóng trực tiếp a Circular providing guidelines for public sector accounting in Vietnam - image from internet
What are regulations on classification and rules for using chart đá bóng trực tiếp accounts in Vietnam?
Pursuant to Clause 2 Article 5 đá bóng trực tiếp the Circular 24/2024/TT-BTC stipulating classification and rules for using chart đá bóng trực tiếp accounts in Vietnam:
- Accounts on the balance sheet include accounts đá bóng trực tiếp type 1 to 9, and are recorded applying double-entry bookkeeping (i.e. every entry shall be recorded in both sides đá bóng trực tiếp an account). These accounts are used for reflecting assets, funding sources, revenues, and expenses and determining business performance đá bóng trực tiếp a unit during the accounting period, which are used as the basis for making financial statements.
- OBS accounts are accounts đá bóng trực tiếp type 0, and are recorded applying single-entry bookkeeping (i.e. every entry shall only be recorded in one side đá bóng trực tiếp an account). OBS accounts 005, 006, 007, 008, 009, 010, 011, 012, 013 are used for reflecting the receipt and use đá bóng trực tiếp funding đá bóng trực tiếp which the amounts used must be recorded in detail at the end đá bóng trực tiếp year according to list đá bóng trực tiếp state budget entries as the basis for making final statements. To be specific:
+ OBS accounts used for statement đá bóng trực tiếp state budget-derived funding (accounts 005, 006, 007, 008, 009, 010, 011) shall be recorded in detail according to the list đá bóng trực tiếp state budget entries and budget year, and in a manner meeting other management requirements for statement đá bóng trực tiếp state budget-derived funding set out in regulations đá bóng trực tiếp law on state budget.
+ OBS accounts used for statement đá bóng trực tiếp funding derived from deducted/retained amounts đá bóng trực tiếp collected fees, and revenues earned during operation đá bóng trực tiếp which the amounts used must be recorded and reported according to the list đá bóng trực tiếp state budget entries (accounts 012, 013) shall be recorded in detail according to the list đá bóng trực tiếp state budget entries and in a manner meeting other management requirements for statement đá bóng trực tiếp these funding sources.
- If an economic/financial transaction involves the receipt and use đá bóng trực tiếp domestic funding derived from state budget, or funding derived from deducted/retained amounts đá bóng trực tiếp collected fees, and revenues earned during operation đá bóng trực tiếp which the amounts used must be recorded and reported according to the list đá bóng trực tiếp state budget entries, it shall be recorded on both on-balance and OBS accounts and in detail according to the list đá bóng trực tiếp state budget entries and appropriate budget year.
- If an economic/financial transaction involves the receipt and use đá bóng trực tiếp foreign aid amounts or foreign loans for implementing projects, it shall be recorded as state budget revenue or expense in accordance with regulations đá bóng trực tiếp law in force. After it is recorded as state budget revenue or expense, it must be also recorded on OBS accounts for making final statements as prescribed in the Circular 24/2024/TT-BTC.
How many accounting book system for an annual accounting period are used by an accounting entity in Vietnam?
Pursuant to Article 6 đá bóng trực tiếp the Circular 24/2024/TT-BTC stipulating accounting books:
Accounting books
1. Accounting books shall be intended for recording, systematizing and retaining all economic/financial transactions already arising đá bóng trực tiếp units. Opening, recording đá bóng trực tiếp entries, closures, management and retention đá bóng trực tiếp accounting books shall comply with regulations đá bóng trực tiếp the Law on accounting, relevant legislative documents and the provisions đá bóng trực tiếp this Circular.
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4. Types đá bóng trực tiếp accounting books
a) Each unit shall use only one accounting book system for an annual accounting period, including general accounting book and subsidiary accounting books.
Each unit shall create both general accounting book and subsidiary accounting books, and ensure adequate and correct contents, order and method for recording accounting books as prescribed in this Circular.
b) The general accounting book is used for generally recording economic/financial transactions in chronological order or according to economic contents. A unit may, where necessary, record economic transactions in chronological order and classify or systematize them according to economic contents.
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As regulated above, each unit shall use only one accounting book system for an annual accounting period, including general accounting book and subsidiary accounting books.
Best regards!
