DECISION

ON THE SUPPLEMENT OF ACCOUNTS AND AMENDMENT OF SEVERAL PROVISIONS ON THE FOREIGN CURRENCY ACCOUNTING IN THE SYSTEM OF ACCOUNTS OF CREDIT INSTITUTIONS

THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on the Credit Institutions No. 02/1997/QH10 dated 12 December, 1997;
Pursuant to the Decree No. 15 CP dated 02 March, 1993 of the Government on the assignment, authority and responsibility for the State management of the ministries and ministry-level agencies;
Upon the proposal of the Director of the Accounting and Finance Department,

DECIDES

Article 1. To supplement accounts and amend several provisions on the foreign currency accounting in the System of accounts of credit institutions issued in conjunction with the Decision No. 435/1998/QD-NHNN2 dated 25 December, 1998 of the Governor of the State Bank as follows:

1. Supplement of following accounts to the System of accounts of credit institutions:

a. Account No. 204: Funds entrusted for lending

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Debit: - The amount transferred to entrusted organizations for lending.

Credit: - The amount repaid by entrusted organization.

Debit balance: - Reflecting the amounts being transferred to entrusted organizations for lending.

Sub-accounts: - Sub-accounts shall be opened for each entrusted organization

b. Account No. 315: Assets managed and explored

This account is used to account for the value(s) of pledged assets (determined in accordance with the provisions of applicable laws on pledged assets) that have been handed over by commercial banks to Assets Management Companies for their management and exploration (when and if the Assets Management Company is permitted to use the System of accounts of credit institutions).

Debit: - The value of assets received.

Credit: - The Value of assets returned

Debit balance: - Reflecting the value of pledged assets being managed and explored by Assets Management Company.

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c. Account No. 376: Difference between the loan amount and the value of assets handed over to Assets Management Company

This account is used to account for the difference between the outstanding amount of the loan, the payment made in lieu of customers and the value of the pledged assets that a commercial bank has handed over to the Assets Management Company for its business

Debit: - The difference of the outstanding loan amount over the value of the pledged assets that are handed over to the Assets Management Company.

- Treatment of the credit balance (if there is a credit balance in the account).

Credit: - The amount that has been collected by the commercial bank.

- The debit balance that has been treated and transferred to other appropriate accounts.

Debit balance: - reflecting the amount that the commercial bank needs to recover.

Sub-accounts: - Sub-accounts shall be opened for each organization, individual that has a payment relation with the bank

The commercial bank must monitor on its book the difference between each loan amount and the value of the asset that is handed over.

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This account is used for the accounting of the value of assets that the Assets Management Company has received from the commercial bank for its management and exploration (When and if the Assets Management Company is permitted to use the System of accounts of credit institutions).

The accounting content of the Account No. 476: counter- entries shall be made in relation to those on the account No. 315 Assets received for management and exploration.

e. Account No. 3791: Value of assets handed over to the Assets Management Company

This account is used to account for the value of pledged assets the commercial bank has handed over to the Assets Management Company for its business activity.

Debit: - The value of pledged assets handed over to the Assets Management Company.

Credit: - Settlement of the value of assets that have been handed over to the Assets Management Company (those liquidated, sold by the Company).

Debit balance: - Reflecting the value of pledged assets being managed by the Assets Management Company.

Sub-accounts: - Sub-accounts shall be opened for each type of pledged.

g. Account No. 59: Other provisions

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- 591: Provisions for payment service

- 592: Provisions for the falling price of inventory.

The content and structure of the sub-accounts shall be as follows:

*The account No. 591: Provisions for payment services

This account is used to reflect the provisioning and the use of provision for payment services.

Credit: - The provision that is made for payment service

Debit: - The settlement of risks arising from the payment service

- The transfer of the surplus to the provision.

Credit balance: - Reflecting the present provision for the payment service.

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* The Account No. 592: Provisions for the falling price of inventory

This account is used to reflect the provisioning and the use of provisions for the treatment of the falling price of stocks when there is evidence as to the continuous fall of price of the inventory of the credit institutions.

Credit: - The provision that is made for the falling price of inventory.

Debit: - The transfer to the provision for falling price

Credit balance: - Reflecting the present provision for the falling price of inventory.

Sub-accounts: - Sub-accounts shall be made by each type of inventory.

h. Accounts No. 829: Expenses on other activities

This account is used to account for other expenses (such as: payment of commission, agent fee, broker fee) relating to the operation of credit institutions, in addition to expenses that are accounted to appropriate accounts.

The accounting content of the account No. 829 is like that of accounts of expenses.

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This account is used to account for the expenses of the provision for payment services.

The accounting content of the account No. 8724 is like that of accounts of expenses.

k. Account No. 8752: Provision expenses on the falling price of inventory

This account is used to account for the expenses of the provision for the falling price of inventory.

The accounting content of the account No. 8752 is like that of accounts of expenses.

2. Amendment of several provisions on the foreign currency accounting in the System of accounts of credit institutions as follows:

a. Exchange rate used to determine the difference in the foreign currency dealing that is provided for in the Account No. 49 foreign exchange transaction is amended as follows: by the end of the accounting period, the difference between the value of the sold foreign currency at the monthly average actual selling exchange rate and the value of the bought foreign currency at the monthly average actual buying exchange rate, if no foreign currency is bought during the month, the monthly average actual buying exchange rate of the previous month shall be used, is determined and entered to the Account Income from the foreign currency business or the Account Expenses on the foreign currency business accordingly.

b. The treatment of the balance on the account No. 631 Difference of foreign currency Silver, precious stones shall be amended as follows: By the end of the year, these two accounts must be cleared of any balance. If there is any credit balance, the balance shall be entered to the Account Income (income from foreign currency, Gold, Silver, precious stones business if there is any debit balance, the balance shall be charged to the Account Expense (expenses on foreign currency, Gold, Silver, precious stones business).

Article 2. This Decision shall be effective from the date of signing.

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FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR




Nguyen Thi Kim Phung

Quyết định 522/2000/QĐ-NHNN2 bổ sung tài khoản và sửa đổi một số quy định về hạch toán ngoại tệ trong hệ thống tài khoản kế toán các tổ chức tín dụng do Thống đốc Ngân hàng Nhà nước ban hành