CIRCULAR

ACCOUNTING GUIDELINES FOR TRANSPORT AND HYDRAULIC INFRASTRUCTURE

Pursuant to the Law on Management and Use of Public Property No. 15/2017/QH14 dated June 21, 2017;

Pursuant to the Law on Accounting No. 88/2015/QH13 dated November 20, 2015;

Pursuant to the Government’s Decree No.174/2016/ND-CP dated December 30, 2016 elaborating certain articles of the Law on Accounting;

Pursuant to the Government’s Decree No. 129/2017/ND-CP dated November 16, 2017 prescribing the management, use and operation of water infrastructure assets;

Pursuant to the Government’s Decree No. 43/2018/ND-CP dated March 12, 2018 prescribing the management, use and exploitation of maritime infrastructure;

Pursuant to the Government’s Decree No. 44/2018/ND-CP dated March 13, 2018 prescribing the management, use and exploitation of aviation infrastructure assets;

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Pursuant to the Government’s Decree No. 46/2018/ND-CP dated March 14, 2018 prescribing the management, use and exploitation of national rail infrastructure;

Pursuant to the Government’s Decree No. 33/2019/ND-CP dated April 23, 2019 prescribing the management, use and exploitation of road infrastructure;

Pursuant to the Government's Decree No. 87/2017/ND-CP dated July 26, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Upon the request of the Director of Department of Accounting and Audit Management and Supervision,

Minister of Finance hereby promulgated the Circular providing accounting guidelines for transport and hydraulic infrastructure.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular provides for accounting documents, entries and books recording bookkeeping entries of transport and hydraulic infrastructure that the State funds and manages, including: Road, aviation, national rail, maritime, inland waterways, hydraulic, other transport and water infrastructure (hereinafter referred to as transport and hydraulic infrastructure).

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1. Entities authorized to keep bookkeeping accounts of transport and hydraulic infrastructure under the provisions of Government’s Decrees on instructions about the Law on Management and Use of Public Property regarding management, use and exploitation of transport and hydraulic infrastructure (these entities are authorized to take charge of keeping general accounts of infrastructure assets based on detailed accounts of other entities or units assigned duties to undertake accounting activities).

2. Enterprises authorized to manage, use and exploit transport and hydraulic infrastructure, excluding property classified as state capital invested in these enterprises, except as those that are authorized to manage, use and exploit transport and hydraulic infrastructure constituting state assets are allowed to apply the corporate accounting regulations and other relevant documents.

Chapter II

SPECIFIC PROVISIONS

Article 3. Regulations on Account 216 – Transport and hydraulic infrastructure assets.

1. This Account reflects the existing value, increases or decreases in all transport and hydraulic infrastructure assets that an entity or unit is authorized to manage and record according to their historical costs.

2. Accounting principles:

a) Only transport and hydraulic infrastructure assets that meet legally prescribed standards and conditions shall be recorded in accordance with laws on management and use of public property.

b) Accountants must open the logbook documenting historical costs, cumulative depreciation and residual value of transport and hydraulic infrastructure assets, depending on the time of formation and historical costs thereof which are determined according to laws on management and use of public property.

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d) Historical costs of transport and hydraulic infrastructure may be changed only in case of:

- Revaluation of these assets under decisions issued by competent state authorities;

- Implementation of projects for improvement, repair and expansion of these assets which are approved by competent state authorities;

- Demolition of part or all of components of these assets which are managed according to the standards regulations as applied to tangible assets;

- Serious damage which results from natural disasters or force majeure events or other unexpected impacts to an extent that devaluation in these assets is recorded as per laws.

dd) Any reduction in value of transport and hydraulic infrastructure shall be recorded only if such recording conforms to laws on management and use of public property. In all instances, in order to complete accounting records on all transport and hydraulic infrastructure, any increases or decreases in transport and hydraulic infrastructure must be based on initial or supplementary reports.

e) In all cases where any surplus or deficit in transport and hydraulic infrastructure compared to the number of such infrastructure specified in accounting journals is discovered, causes and responsibilities of entities and persons involved must be clearly determined, and timely actions should be taken in accordance with laws.

3. Composition and details

Debit side:

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- Historical costs of transport and hydraulic infrastructure assets which are increased due to receipt of those which are transferred;

- Historical costs of transport and hydraulic infrastructure assets which are increased due to improvement and expansion of projects for construction and development thereof which are approved by competent entities;

- Other cases in which historical costs of transport and hydraulic infrastructure assets are increased (e.g. revaluation of transport and hydraulic infrastructure assets which is carried out under competent entities' decisions; any surplus thereof discovered after stocktaking or making inventories, etc.).

Credit side:

- Historical costs of transport and hydraulic infrastructure assets which are decreased owing to recovery and transfer thereof to other entities under competent entities’ decisions, sale or liquidation thereof, damage or downgrading thereof;

- Historical costs of transport and hydraulic infrastructure assets which are decreased owing to partial removal of several components or project narrowing;

- Other cases in which historical costs of transport and hydraulic infrastructure assets are reduced (e.g. serious damage resulting from natural disasters, hostilities, force majeure events or other unexpected impacts that leads to reduction in their historical costs under laws; revaluation thereof that is carried out under competent entities’ decisions; any deficit that is discovered after stocktaking or making inventories, etc.).

Debit balances:

This section reflects historical costs of existing transport and hydraulic infrastructure assets that entities or units are authorized to manage and account for.

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- Account 2161- Road infrastructure assets: This section reflects value of road infrastructure assets that entities or units are authorized to manage and account for.

- Account 2162- Maritime infrastructure assets: This section reflects value of maritime infrastructure assets that entities or units are authorized to manage and account for.

- Account 2163- Aviation infrastructure assets: This section reflects value of maritime infrastructure assets that entities or units are authorized to manage and account for.

- Account 2164- Inland waterway infrastructure assets: This section reflects value of inland waterway infrastructure assets that entities or units are authorized to manage and account for.

- Account 2165- National rail infrastructure assets: This section reflects value of national rail infrastructure assets that entities or units are authorized to manage and account for.

- Account 2166- Hydraulic infrastructure assets: This section reflects value of hydraulic infrastructure assets that entities or units are authorized to manage and account for.

- Account 2168- Other infrastructure assets: This section reflects value of other transport and hydraulic infrastructure assets that entities or units are authorized to manage and account for.

4. Accounting methods for major economic activities:

a) Accounting for increases in transport and hydraulic infrastructure assets

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- In case of initial recording of assets currently transfer to be held in trust or increases in assets made owing to transfer thereof to be put under new administration, based on initial registration reports or handover reports, upon receipt of transport and hydraulic infrastructure assets, accountants must post the following accounts:

Debit A/C 216- Transport and hydraulic infrastructure assets

Credit A/C 467- Funding for formation of transport and hydraulic infrastructure assets.

- With respect to increases in transport and hydraulic infrastructure assets which are made owing to new construction, upgradation and expansion of projects, when completing these projects, based on Decisions on approval of completed projects (if finalization of costs of these completed projects is approved); A-B commissioning reports (if finalization of costs of these completed projects is awaited for approval), accountants must post the following accounts:

Debit A/C 241- Capital construction in progress

Relevant A/Cs to the Credit side.

Simultaneously, accountants must enter historical costs of transport and hydraulic infrastructure assets:

Credit A/C 216- transport and hydraulic infrastructure assets (Entering upgradation and expansion costs)

Credit A/C 241- Capital construction in progress.

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Debit A/C 366- Amounts received in advance, but not recognized as receipts yet (SubA/C 3664- Funds for capital construction in progress) (If upgradation or expansion of such assets is funded by the State Budget) (Applicable to public service units), or

Debit A/C 441- Investments in capital construction in progress (Intended for enterprises)

Credit A/C 467- Funding for formation of transport and hydraulic infrastructure assets.

- In case of increases in transport and hydraulic infrastructure assets made owing to receipt of those transferred from owners thereof that are units in charge of upgrading, improving and expanding projects, transferees of these assets shall, based on additional value gained after upgradation and expansion of these assets, accounts shall enter the following accounts:

Debit A/C 216- Transport and hydraulic infrastructure assets

Credit A/C 467- Funding for formation of transport and hydraulic infrastructure assets.

(2) If transport and hydraulic infrastructure assets are increased due to being transferred from other entities or units, based on supplementary declarations of transport and hydraulic infrastructure assets, accountants may post the following accounts:

Debit A/C 216- Transport and hydraulic infrastructure assets (Historical costs)

Credit A/C 218- Depreciation of transport and hydraulic infrastructure assets (Cumulative depreciation) (if any)

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b) Accounting for decreases in transport and hydraulic infrastructure assets

(1) Upon receipt of decisions from competent entities to request units to transfer transport and hydraulic infrastructure assets to other units for their continued administration and accounting, accountants shall enter the following accounts:

Debit A/C 467- Funding for formation of transport and hydraulic infrastructure assets (residual value)

Debit A/C 218- Depreciation of transport and hydraulic infrastructure assets (Cumulative depreciation)

Credit A/C 216- Transport and hydraulic infrastructure assets (Historical costs).

(2) In case of recovery of assets under decisions issued by competent entities, accountants shall enter the following accounts:

Debit A/C 467- Funding for formation of transport and hydraulic infrastructure assets (residual value)

Debit A/C 218- Depreciation of transport and hydraulic infrastructure assets (Cumulative depreciation)

Credit A/C 216- Transport and hydraulic infrastructure assets (Historical costs).

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Debit A/C 467- Funding for formation of transport and hydraulic infrastructure assets (residual value)

Debit A/C 218- Depreciation of transport and hydraulic infrastructure assets (Cumulative depreciation)

Credit A/C 216- Transport and hydraulic infrastructure assets (Historical costs).

(4) If transport and hydraulic infrastructure assets are seriously damaged due to natural disasters, hostilities, force majeure events or other sudden impacts, based on competent entities’ decisions to allow accounting units to record decreases in transport and hydraulic infrastructure assets, accountants shall enter the following accounts:

Debit A/C 467- Funding for formation of transport and hydraulic infrastructure assets (residual value)

Debit A/C 218- Depreciation of transport and hydraulic infrastructure assets (Cumulative depreciation)

Credit A/C 216- Transport and hydraulic infrastructure assets (Historical costs).

(5) If transport and hydraulic infrastructure assets are totally damaged to the extent of becoming unusable or cannot be repaired effectively, and may be liquidated by permission of competent entities (including input materials no longer in demand). Upon receipt of all required documents stating permission for liquidation from competent entities, accounting units must enter accounts in the following fashion:

- With respect to decreases in transport and hydraulic infrastructure assets which have already been liquidated, accounts shall post the following accounts:

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Debit A/C 218- Depreciation of transport and hydraulic infrastructure assets (Cumulative depreciation)

Credit A/C 216- Transport and hydraulic infrastructure assets (Historical costs).

- In order to reflect the amounts of spending on liquidation of transport and hydraulic infrastructure assets (including input materials no longer on demand), accountants shall enter the following accounts:

Debit A/C 337- Receipts in advance (applicable to state regulatory authorities), or

Credit A/C 811- Other expenses (applicable to enterprises and public service units)

Relevant A/Cs to the Credit side.

- In order to reflect the amounts of revenue gained from liquidation of transport and hydraulic infrastructure assets (including input materials no longer on demand), accountants shall enter the following accounts:

Relevant A/Cs to the Debit side

Credit A/C 337- Receipts in advance (applicable to state regulatory authorities), or Credit A/C 711- Other expenses (applicable to enterprises and public service units).

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c) Accounting for deficiencies in transport and hydraulic infrastructure assets after making inventories:

- If transport and hydraulic infrastructure assets are discovered in comparison to the preexisting number thereof, during the period before any decision to take a remedial action is made, accountants shall consult inventorying results to record decreases in transport and hydraulic infrastructure assets:

In order to reflect the residual value of transport and hydraulic infrastructure assets in deficit or lost that needs to be recovered, accounts must enter the following accounts:

Debit A/C 138- Other receivables (Residual value)

Debit A/C 218- Depreciation of transport and hydraulic infrastructure assets (Cumulative depreciation)

Credit A/C 216- Transport and hydraulic infrastructure assets (Historical costs).

Upon receipt of decisions to take remedial actions, as the case may be:

+ If such decision allows omission of those assets that are not present due to deficiency or loss, accountants may enter the following accounts:

Relevant A/Cs to the Debit side (Depending on competent entities’ decisions)

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+ If decisions to request insurance companies or other related persons or entities to be liable for damages or compensation, upon receipt of such amounts, accountants must enter the following accounts:

A/Cs 111 and 112 (In case of receiving these cash amounts)

Credit A/C 138- Other receivables.

+ If amounts of damage or compensation collected according to decisions to take remedial actions have to be remitted to the State Budget, accountants must enter the following accounts:

Debit A/C 138- Other receivables

Credit A/C 333- Payables to the State (applicable to public service units), or

Credit A/C 333- Taxes and other payables to the State (applicable to enterprises)

d) Accounting for surpluses of transport and hydraulic infrastructure assets after making inventories:

- In case of discovering any surplus of transport and hydraulic infrastructure assets as any asset has not yet been recorded in accounting books, accountants shall consult inventory forms and documents on transport and hydraulic infrastructure assets to record increases in transport and hydraulic infrastructure assets, and shall determine actual depreciation value, accountants must enter the following accounts:

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Credit A/C 218- Depreciation of transport and hydraulic infrastructure assets (Cumulative depreciation)

Credit A/C 467- Funding for formation of transport and hydraulic infrastructure assets (residual value determined after making inventories).

- If origins of surplus assets are unidentified; causes of such surplus are not known; none of decisions to take remedial actions has not been issued yet, accountants must record such surplus assets into the payable account and report to supervisory entities and same-level financial entities to seek their approval of possible remedial actions, accountants shall enter the following accounts:

Credit A/C 216- Transport and hydraulic infrastructure assets (Value thereof recorded according to historical costs thereof determined after making inventories)

Credit A/C 338- Other payables (applicable to public service units), or

Credit A/C 338- Other payables (applicable to enterprises)

Upon receipt of decisions to take remedial actions, accountants shall enter the following accounts:

Debit A/C 338- Other payables (applicable to public service units), or

Debit A/C 338- Other payables (applicable to enterprises)

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dd) Accounting for revaluation of transport and hydraulic infrastructure assets

- If historical costs of transport and hydraulic infrastructure assets are increased, accountants shall enter the following accounts:

Debit A/C 216- Transport and hydraulic infrastructure assets (Increasing differences in historical costs)

Credit A/C 218- Depreciation of transport and hydraulic infrastructure assets

Credit A/C 467- Funding for formation of transport and hydraulic infrastructure assets.

- If historical costs of transport and hydraulic infrastructure assets are decreased, accountants shall enter the following accounts:

Debit A/C 467- Funding for formation of transport and hydraulic infrastructure assets.

Credit A/C 218- Depreciation of transport and hydraulic infrastructure assets

Credit A/C 216- Transport and hydraulic infrastructure assets.

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1. This Account reflects the existing value of transport and hydraulic infrastructure assets, fluctuations in the depreciated value thereof during their useful life and other causes of increases or decreases in the depreciated value of those assets that accounting units are authorized to manage and account for.

2. Accounting principles:

a) The depreciated value of all transport and hydraulic infrastructure assets that are currently managed and accounted for by accounting units (excluding those assets held in trust by other units), except transport and hydraulic infrastructure assets of which depreciation is not allowed under laws, must be recorded. If nominal value of transport and hydraulic infrastructure assets are used as their historical costs based on which any increase in such assets is recorded, calculation of the depreciated value thereof shall not be required.

b) The depreciated value of transport and hydraulic infrastructure assets may be determined based on laws currently in force on calculation of the depreciated value of transport and hydraulic infrastructure assets.

c) Calculation of the depreciated value of transport and hydraulic infrastructure assets and recording thereof into accounting records and books must take place once a year in December before closing accounting books. In case of transfer, splitting, division, merger, dissolution or making inventories for revaluation of assets according to the State guidelines, the depreciated value of these assets shall be calculated on the date of receipt of competent regulatory authority's decisions.

3. Composition and details of Account 218- Depreciation of transport and hydraulic infrastructure assets

Debit side:

- This section shows decreases in the depreciated value of transport and hydraulic infrastructure assets in case of any reduction in these transport and hydraulic infrastructure assets (due to recovery, sale, liquidation, definite-term disposal, transfer and other transactions);

- This section shows decreases in the depreciated value of transport and hydraulic infrastructure assets upon revaluation thereof after receipt of competent regulatory authorities’ decision (in case of revaluation for any decrease in the depreciated value).

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- This section shows increases in the depreciated value of transport and hydraulic infrastructure assets during their useful life;

- This section shows increases in the depreciated value of transport and hydraulic infrastructure assets upon revaluation thereof after receipt of competent regulatory authorities’ decision (in case of revaluation for any increase in the depreciated value).

Credit balances:

This section shows the depreciation of transport and hydraulic infrastructure assets that currently exist.

4. Accounting methods for major economic activities:

a) With respect to calculating and keeping entries of the depreciation of transport and hydraulic infrastructure assets, based on the Depreciation Worksheet, accountants shall enter the following accounts:

Debit A/C 467- Funding for formation of transport and hydraulic infrastructure assets

Credit A/C 218- Depreciation of transport and hydraulic infrastructure assets.

b) When decreases in the depreciation of transport and hydraulic infrastructure assets arise due to recovery, transfer, sale, liquidation or discovery of deficiencies in such assets, accountants shall enter the following accounts:

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Debit A/C 467- Funding for formation of transport and hydraulic infrastructure assets (residual value)

Credit A/C 216- Transport and hydraulic infrastructure assets (Historical costs).

Article 5. Account 467- Funding for formation of transport and hydraulic infrastructure assets

1. This Account reflects the existing amount of funding for formation of transport and hydraulic infrastructure assets and any fluctuation in these assets.

2. Accounting principles:

a) Accounting for any increase in funding for formation of transport and hydraulic infrastructure assets which may be made owing to:

- Receipt of transport and hydraulic infrastructure assets allocated by competent regulatory authorities or transferred from other entities;

- Revaluation of these assets under decisions issued by competent state authorities;

- Improvement and expansion of projects which are approved by competent entities.

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- Reflecting the depreciation of transport and hydraulic infrastructure assets during their useful life;

- Recording decreases in transport and hydraulic infrastructure assets which may be made due to: Liquidation and transfer thereof to other entities authorized to continue to manage and account for them, and recording any decrease arising in other cases;

- Reflecting those assets which are seriously damaged due to consequences of natural disasters, hostilities, force majeure events or other sudden impacts.

3. Composition and details of Account 467- Funding for formation of transport and hydraulic infrastructure assets

Debit side: Funding for formation of transport and hydraulic infrastructure assets which is decreased due to:

- Recording of the annual depreciation of transport and hydraulic infrastructure assets;

- Liquidation and transfer of the residual value which are carried out according to decisions received from competent regulatory authorities and in other cases;

- Decreases in funding for formation of transport and hydraulic infrastructure assets (the residual value) which are made due to revaluation (in case of reduction).

Credit side: Funding for formation of transport and hydraulic infrastructure assets which is increased due to:

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- Value of transport and hydraulic infrastructure assets received from other entities;

- Decreases in funding for formation of transport and hydraulic infrastructure assets (the residual value) which are made due to revaluation (in case of increase).

Credit balances: This section reflects the funding for formation of transport and hydraulic infrastructure assets which exist in accounting entities.

4. Accounting methods for major economic activities:

a) Increases in transport and hydraulic infrastructure assets which are made as they are transferred by competent regulatory authorities to be kept under the management of other entities or units. Based on documents on assets received from transfers and other equivalents, accountants shall post the following entries:

Debit A/C 216- Transport and hydraulic infrastructure assets (Historical costs)

Credit A/C 218- Depreciation of transport and hydraulic infrastructure assets (Cumulative depreciation)

Credit A/C 467- Funding for formation of transport and hydraulic infrastructure assets.

b) If transport and hydraulic infrastructure assets are increased by being received from other entities, based on documents on transferred assets and transfer decisions, accountants shall post the following entries:

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Credit A/C 218- Depreciation of transport and hydraulic infrastructure assets (Cumulative depreciation)

Credit A/C 467- Funding for formation of transport and hydraulic infrastructure assets (residual value).

c) With respect to calculating and keeping entries of the depreciation of transport and hydraulic infrastructure assets, based on the Depreciation Worksheet, accountants shall enter the following accounts:

Debit A/C 467- Funding for formation of transport and hydraulic infrastructure assets

Credit A/C 218- Depreciation of transport and hydraulic infrastructure assets.

d) Accounting for revaluation of transport and hydraulic infrastructure assets:

- If historical costs of transport and hydraulic infrastructure assets are increased, accountants shall enter the following accounts:

Debit A/C 216- Transport and hydraulic infrastructure assets (Increasing differences in historical costs)

Credit A/C 218- Depreciation of transport and hydraulic infrastructure assets

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- If historical costs of transport and hydraulic infrastructure assets are decreased, accountants shall enter the following accounts:

Debit A/C 467- Funding for formation of transport and hydraulic infrastructure assets

Credit A/C 218- Depreciation of transport and hydraulic infrastructure assets

Credit A/C 216- Transport and hydraulic infrastructure assets

* Entities and units may provide subaccounts for Accounts specified in Article 3, 4 and 5 hereof to meet managerial requirements.

Article 6. Regulations on accounting documents and records

1. Accounting units undertaking accounting for transport and hydraulic infrastructure assets may use the following accounting documents for posting entries of transport and hydraulic infrastructure assets:

- Inventory form (Sample No. C60-HD);

- Depreciation Worksheet (Sample No. C61-HD).

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3. As for economic transactions that have not yet been documented by those specified in Appendix No. 01, accounting units preparing accounting documents and records must ensure compliance with 7 requirements set out in Article 16 of the Law on Accounting.

Article 7. Regulations on accounting books

1. Entities may open books recording and keeping track of transport and hydraulic infrastructure assets.

2. Forms, samples or templates and interpretation of contents and methods of preparation of accounting documents stated in clause 1 of this Article shall be regulated in the Appendix 02 hereto.

Article 8. Reporting regulations

Entities authorized to manage and account for transport and hydraulic infrastructure assets must report on transport and hydraulic infrastructure assets in accordance with laws on management and use of public property.

Chapter III

IMPLEMENTATION PROVISIONS

Article 9. Implementation responsibilities

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2. This Circular shall enter into force from January 1, 2020. With regard to accounting for transport and hydraulic infrastructure assets, this Circular shall serve as a replacement for the Circular No. 98/2014/TT-BTC dated July 25, 2014 of the Minister of Finance, providing guidance on accounting for road transport infrastructure assets.

3. In the course of implementation hereof, if there is any difficulty likely to arise, the Ministry of Finance should be promptly informed to consider approving possible solutions./.

PP. MINISTER
DEPUTY MINISTER




Do Hoang Anh Tuan

Thông tư 76/2019/TT-BTC về hướng dẫn kế toán tài sản kết cấu hạ tầng giao thông, thủy lợi do Bộ trưởng Bộ Tài chính ban hành