Circular on guidelines for accounting policies for enterprises

Thông tư 200/2014/TT-BTC bản tiếng Anh - Circular on guidelines for accounting policies for enterprises

Thông tư 200/2014/TT-BTC về chế độ kế toán doanh nghiệp mới nhất được ban hành vào ngày 22 tháng 12 năm 2014 và chính thức có hiệu lực sau 45 ngày kể từ ngày ký và áp dụng cho năm tài chính bắt đầu hoặc sau ngày 01/01/2015. Để mở rộng nhu cầu sử dụng của người dùng, HoaTieu.vn xin được giới thiệu với bạn đọc bản Thông tư 200/2014/TT-BTC bằng tiếng Anh - Circular 200/2014/TT-BTC on guidelines for accounting policies for enterprises, hi vọng sẽ giúp các bạn hiểu rõ được nội dung của Thông tư 200.

Thông tư 200/2014/TT-BTC về chế độ kế toán doanh nghiệp

Điểm mới nổi bật của Thông tư 200

Thông tư sửa đổi, bổ sung về chế độ kế toán doanh nghiệp số 75/2015/TT-BTC

Quyết định 156/2006/QĐ-BTC

Thông tư 244/2009/TT-BTC

MINISTRY OF FINANCE -------- No. 200/2014/TT-BTC

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness --------------- Hanoi, December 22, 2014

CIRCULAR
ON GUIDELINES FOR ACCOUNTING POLICIES FOR ENTERPRISES

Pursuant to the Law on Accounting dated June 17, 2003;

Pursuant to the Decree No. 129/2004/NĐ-CP dated May 31, 2004 of the Government on guidelines for the Law on Accounting in the business operation.;

Pursuant to the Government's Decree No. 215/2013/NĐ-CP dated December 23, 2013 defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;

At the request of Director of the Department of Audit and Accounting Regulation,

The Minister of Finance issues a Circular on guidelines for accounting policies for enterprises.

Chapter I

GENERAL PROVISIONS

Article 1. Regulated entities

This Circular promulgates accounting policies applying to enterprises in every business lines and every economic sector. Small and medium-sized enterprises applying the accounting policies for small and medium-sized enterprises may apply regulations in this Circular for accounting.

Article 2. Scope

This Circular promulgates bookkeeping, preparation and presentation of financial statements, not applying to determination of tax liabilities of enterprises to government budget.

Article 3. Monetary unit in accounting

"Monetary unit in accounting" means Vietnamese dong (national sign: "đ"; international sign: "VND") used for bookkeeping, preparation and presentation of financial statements of enterprises. If an accounting unit that mainly receives revenues and pays expenses in foreign currencies, provided that it conforms to standards prescribed in Article 4 of this Circular may choose a type of foreign currencies as a monetary unit for bookkeeping.

Article 4. Selection of monetary unit in accounting

1. Any enterprise that mainly receive revenues and pays expenses in foreign currencies shall base on regulations of the Law on accounting for consideration of selection of monetary unit in accounting and take legal responsibility. When selecting the monetary unit in accounting, the enterprise must notify supervisory tax authority.

2. The monetary unit in accounting means a monetary unit meeting requirements below:

a) It is mainly used in sales, provisions of services of the enterprise, which have great impact on selling prices and service fees and it is normally used as posting prices and used for payments; and

b) It is mainly used in purchases of goods or services, which have great impact on labor costs, materials costs and other production costs or operating costs and it is normally used for payments of that costs.

3. The following factors may also be considered as evidence of monetary unit in accounting of the enterprise:

a) The monetary unit used in mobilization of financial resources (such as issuance of shares or bonds);

b) The monetary unit which is regularly collected from business operation and accumulated.

4. The monetary unit in accounting reflects transactions, events, condition pertaining to the operation of the enterprise. After choosing the certain monetary unit in accounting, the enterprise shall not change it unless there are major changes in the transactions, events or condition.

Article 5. Conversion of financial statements made in foreign currency into Vietnamese dong

1. If an enterprise uses a foreign currency as monetary unit in accounting, it must not only prepare a financial statement in foreign currency but also converse their financial statement into Vietnamese dong when announcing and submitting the financial statement to regulatory authorities.

2. Rules for conversion of financial statements made in foreign currency into Vietnamese dong, comparison information between them shall be reported in accordance with Chapter III of this Circular.

3. When converting the financial statement made in foreign currency into Vietnamese dong, the enterprise must clarify the impact (if any) on the financial statement due to the conversion in the Description of financial statement.

Article 6. Audit of financial statements using foreign currency as monetary unit in accounting

The lawful financial statement used to announce and submit to Vietnamese competent agencies is a financial statement made in Vietnamese dong and audited.

Article 7. Changes in monetary unit in accounting

If there are major changes in managerial and business operations leading to the monetary unit in accounting used in economic transactions failing to satisfy the requirements specified in Clause 2 and 3 of Article 4 of this Circular, enterprises may change their monetary units in accounting. The change of a monetary unit for bookkeeping to another may be effected only at the beginning of a new fiscal year. The enterprise must notify supervisory tax authority of the change in monetary unit in accounting within 10 working days after the final day of the fiscal year.

Article 8. Rights and obligations of enterprises pertaining to organization of accounting in dependent accounting units having no legal status (hereinafter referred to as dependent accounting unit)

1. Enterprises must organize their accounting structures and accounting task delegation of dependent accounting unit in conformity with their operation and management requirements and not contrary to regulations of law.

2. The following accounts shall be kept records by dependent accounting units having accounting divisions according to the decision issued by the enterprise:

a) Operating capital granted by the enterprise: the operating capital shall be recorded to liabilities or owner's equity according to the decision of the enterprise;

b) Transactions in sale, purchase or circulation of goods or services intra-company: revenues or costs of goods sold only are separately recorded in every dependent accounting unit if such circulation creates added value in the goods or services. The recording of revenues from internal transactions to the financial statement does not depend on the format of accounting records (invoices or internal transaction documents);

c) Task delegation: Depending on centralized or decentralized accounting model, the dependent accounting units may record undistributed post-tax profit or record revenues and expenses.

Article 9. Registration for amendments to Accounting policies

1. Chart of accounts

a) According to chart of accounts of accounting policies for enterprises issued together with this Circular, the enterprise shall apply and detail chart of accounts in conformity with requirements pertaining business and management of every business line and unit, provided that it conforms to content, structure and method of accounting of equivalent ledger accounts.

b) If the enterprise need to add accounts or sub-accounts or modify accounts or sub-accounts about names, signs, content and accounting methods, the approval issued by the Ministry of Finance before the supplement or modification is required.

c) The enterprise may open sub-accounts or sub-sub accounts if the Chart of accounts prescribed in Appendix 1 of this Circular does not regulate such accounts without the approval of the Ministry of Finance.

2. Financial statements

a) According to forms and contents of items of the financial statement prescribed in Appendix 2 of this Circular, the enterprise shall detail the items (available) of the financial statement system in conformity with operation and management of every business line and unit.

b) If the enterprise need to add or modify names, signs, content of items of the financial statement, the approval issued by the Ministry of Finance before the supplement or modification is required.

3. Accounting documents and accounting records

a) All accounting documents are optional, enterprise may use forms issued together with Appendix No. 3 of this Circular or design their forms in conformity with their operation and management provided that their forms satisfy all requirements as prescribed in the Law on Accounting and their amended documents.

b) All forms of accounting records (including Ledgers or Journals) are optional. The enterprise may apply the forms as prescribed in Appendix No. 4 of this Circular or amendments to forms or accounting cards in conformity with their operation and management provided that they are sufficient, clear and easy to control.

Article 10. Accounting policies applying to foreign contractors

1. Foreign contractors having permanent resident facilities in Vietnam which are not an independent unit having legal status shall carry out accounting policies in Vietnam as follows:

a) There are particular contractors eligible for particular accounting policy issued by the Ministry of Finance;

b) Contractors not eligible for particular accounting policy issued by the Ministry of Finance may whether fully and partly apply Accounting policies for Vietnamese enterprises in conformity with their operation and management.

c) If the contractor applies Accounting policies for Vietnamese companies fully, it is required to apply during the fiscal year.

d) The contractor must notify the tax authority of the accounting policy applied within 90 days from the date on which it runs business in Vietnam. If there is any change in applying of accounting policy, the contractor must notify the tax authority within 15 working days from the date on which the change occurs.

2. Foreign contractor must keep records of every contract license, every transaction in details to settle contract and make tax declaration.

3. If a foreign contractor who applies fully Accounting policies for Vietnamese companies wishes to supplement or modify the policies, it is required to comply with Article 9 of this Circular and obtain approval issued by the Ministry of Finance. Within 15 working days from the date on which the sufficient documents are received, the Ministry of Finance must send response on registration of amendments of accounting policies to the foreign contractor.

Chapter II

CHART OF ACCOUNTS

Article 11. Rules for cash accounting

1. The accountant must keep records of revenues, expenses, dispatching or receiving of cash funds or foreign currencies in the Journals and then calculate the fund balance and every account in the bank at all times for verification.

2. Deposits made by other enterprises or individuals in the enterprise shall be managed and recorded similarly to money of the enterprise.

3. When obtaining revenues or paying for expenses, the receipt or payment slips with sufficient signatures are required as prescribed in regulations on accounting source documents.

4. The accountant must keep records of cash according to currency in details when generating transactions in foreign currencies, the foreign currencies shall be converted into VND following rules below:

- Debit accounts shall apply actual exchange rates;

- Credit accounts shall apply weight average bookkeeping rates;

5. When preparing financial statements as prescribed, the enterprise must re-evaluate balance of foreign currencies and monetary gold according to actual exchange rates.

Article 12. Account 111 – Cash on hand

1. Rules for accounting

a) This account is used to record revenues, expenses and balance of the enterprise's fund, including: Vietnamese dong, foreign currencies and monetary gold. Only received, dispatched or inventoried cash, foreign currencies, monetary gold shall be recorded to account 111 "Cash". If the receipts are transferred immediately to bank (not through enterprise 'cash fund), these amounts shall not be recorded to Dr 111 "cash", but recorded to Dr 113 "cash in transit".

b) Cash deposits made by other enterprises and individuals shall be managed and recorded similarly to monetary assets of the enterprise.

c) When receiving or dispatching cash fund, receipt slips, payment slips with signatures of payees and payers, competent persons are required in accordance with accounting source document. Deposit order and payment order must be attached in special cases.

d) The accountant of cash fund must write a Cash daybook and record all day-to-day financial transactions: revenues, expenses, dispatch or receiving of cash funds, foreign currencies and then calculate the fund balance at all times.

dd) The cashier shall be responsible for management, receiving and dispatch of the cash fund. The cashier must verify the actual cash balance, then collate the figures between cash fund book and cash ledger every day. If there is any difference, the accountant and the cashier must verify them again in order to uncover reasons and propose solutions for the differences.

e) When entering into transactions in foreign currencies, the accountant shall convert the foreign currencies into VND according to the following rules:

- Actual exchange rate shall be applied to Dr 1112. If the foreign currencies are withdrawn from banks to pay in the cash fund, the bookkeeping rate of account 1122 shall be applied;

- Weighted average rate shall be applied to Cr 1112

The actual exchange rate shall be determined as prescribed in guidelines for account 413 - Differences between exchange rates and relevant accounts.

g) Monetary gold recorded in this account is gold used for value storage, not including the gold recorded to inventory account and used as raw materials for production of goods for sale. The management and use of monetary gold shall comply with regulations of law in force.

h) Whenever preparing financial statements as prescribed, the enterprise must re-evaluate the balance of foreign currencies and monetary gold following the rules below:

- The actual exchange rate applied in the re-evaluation of the balance of foreign currencies in cash is the foreign currency-selling rate of the commercial bank where the enterprise regularly enters into transactions (chosen by the enterprise) at the time in which the financial statement is prepared.

- The monetary gold shall be re-evaluated according to the buying prices on the domestic market at the time in which the financial statement is prepared. The buying prices on the domestic market are prices announced by the State bank. In case the State bank fails to announce gold buying-prices, the buying-prices announced by enterprise entitled to trade in gold as prescribed shall be chosen.

2. STRUCTURE AND CONTENTS OF ACCOUNT 111 – CASH

Debit:

- Received cash, foreign currency or monetary gold;

- Cash, foreign currency or monetary gold in excess detected under verification;

- Exchange differences due to re-evaluation of foreign currency balance at the reporting time (if foreign currency rate rises against VND);

- Differences due to re-evaluation of monetary gold at the reporting time.

Credit:

- Dispatched cash, foreign currency or monetary gold;

- Cash, foreign currency or monetary gold in deficit detected under verification;

- Exchange rate differences due to re-evaluation of foreign currency balance at the reporting time (if foreign currency rate falls against VND);

- Differences due to re-evaluation of monetary gold at the reporting time.