| THE STATE BANK OF VIETNAM ------------ | SOCIALIST REPUBLIC OF VIETNAM Independence- Freedom – Happiness -------------- |
| No. 29/2006/QD-NHNN | Hanoi, July 10, 2006 |
DECISION
ON THE AMENDMENT, SUPPLEMENT, CANCELLATION OF SOME ACCOUNTS IN THE ACCOUNTS SYSTEM OF CREDIT INSTITUTIONS ISSUED IN CONJUNCTION WITH THE DECISION NO. 479/2004/QD-NHNN DATED 29 APRIL 2004 AND THE DECISION NO. 807/2005/QD-NHNN DATED 1/6/2005 OF THE GOVERNOR OF THE STATE BANK
THE GOVERNOR OF THE STATE BANK
- Pursuant to the Law on the State Bank of Vietnam issued in 1997 and the Law on the amendment, supplement of several Articles of the Law on the State Bank of Vietnam issued in 2003;
- Pursuant to the Law on Credit Institutions issued in 1997 and the Law on the amendment, supplement of several Articles of the Law on Credit Institutions issued in 2004;
- Pursuant to the Law on Accounting issued in 2003;
- Pursuant to the Decree No. 52/2003/ND-CP dated 19 May 2003 of the Government providing for the function, assignment, authority and organizational structure of the State Bank of Vietnam;
- Being approved of the amendment, supplement of the Accounts System of credit institutions in the Official Dispatch No. 8177/BTC-CDKT dated 3 July 2006 of the Ministry of Finance.
- Upon the proposal of the Director of the Finance - Accounting Department,
DECIDES:
Article 1. To cancel some accounts in the accounts System of credit institutions (CIs) issued in conjunction with the Decision No. 479/2004/QD-NHNN dated 29/4/2004 and the Decision No. 807/2005/QD-NHNN dated 1 June 2005 of the Governor of the State Bank as follows:
| 1. Account 15 2. Account 399 3. Account 472 4. Account 479 5. Account 561 | - Investment securities; - Provisions for risk of interest receivable - Purchase, sale of foreign currency from other sources - Conversion of foreign currency for domestic payment - Conversion of foreign currency for payment |
Article 2. To amend, supplement name and accounting content of some accounts in the accounts System of CIs issued in conjunction with the Decision No. 479/2004/QD-NHNN dated 29 April 2004 of the Governor of the State Bank as follows:
1. To amend point 7, Section I - General provisions as follows:
“7. The concepts “domestic” and “foreign” stipulated in this accounts System of credit institutions shall be construed in line with the concepts “resident” and “non-resident” as provided for in the Ordinance on foreign exchange No. 28/2005/PL-UBTVQH11dated 13/12/2005.
2. To amend the accounting contents of Account 1011 - Cash at unit, the part “detailed accounting” as follows:
Detailed accounting:
| To open 02 detailed accounts: | - Cash already tallied and counted - Cash collected under sealed bags |
3. To amend Account 105 - Precious metal, precious stone as follows:
“Account 105- Precious metal, precious stone”
This account shall be used to record the value of precious metal, precious stone of CIs
The accounting of this account shall be implemented under following provisions:
1. CIs must distinguish monetary gold from non-monetary gold
- Monetary gold (belonging to the currency item) means foreign exchange in accordance with provisions in point d, Paragraph 1 Article 4 of the Ordinance on Foreign Exchange No.28/2005/PL-UBTVQH11 dated 13/12/2005, or gold of international standard (means mass gold, bar gold, piece gold, leaf gold with seal of quality and weight verification, trademark of an international gold manufacturer or domestic gold manufacturer which is internationally acknowledged).
Monetary gold is considered as a type of foreign currency and is a reserved asset for international payment.
- Non-monetary gold (belonging to the non-currency item) is the gold which is purchased for the purpose of processing, creation for jewelry making. Non-monetary gold is considered as a type of common materials, goods.
2. Detailed accounting, general accounting in respect of account “monetary gold” are similar to the accounting of foreign currency account. For the operation of sale, purchase and derivation of monetary gold, accountants shall use accounts of sale, purchase and derivation of foreign currency for accounting (considering gold as a type of foreign currency).
3. Accounting in respect of account “non-monetary gold” under the basis price, specifically as follows:
- Value of non-monetary gold upon store-in and store-out shall be calculated under the real buying price. In the event where non-monetary gold to be stored in is purchased at different buying prices, the value of non-monetary gold upon store-out shall be accounted at the average buying price of the in-stock non-monetary gold
- In respect of credit institutions, which have full conditions for organizing the accounting, following up and preservation of the in-stock non-monetary gold at different buying prices, the accountants may apply the method for accounting the value of non-monetary gold stored out at its real buying price.
- The consumption of non-monetary gold shall use Account 478 – Consumption of gold, silver and precious stones.
4. In respect of the detailed accounting of gold, CIs shall account both value and volume of gold, which is stored in, stored out, in stock. Upon making accounting report, value of gold shall be converted into Vietnamese dong under the stipulated exchange rate.
Account 105 – Precious metal, precious stone consists of following level III accounts:
1051 – Gold at the unit
1052 – Gold at units which perform book-entry accounting
1053 – Gold carried away for processing, creation
1054 – Precious metal, precious stone in transport
1058 – Other precious metals, precious stones
Account 1051 – Gold at the unit
This account is used for accounting the gold value of the CI
| Debit: | - Value of gold stored in |
| Credit: | - Value of gold stored out |
| Debit balance: | - To reflect the value of in-stock gold at the unit |
| Detailed accounting: | - To open detailed accounts by monetary gold and non-monetary gold. |
Account 1052 – Gold at units which perform book entry accounting
| Debit: | - Value of gold supplied to the treasury of unit performing book entry accounting. - Value of gold received by the unit that performs book entry accounting |
| Credit: | - Value of gold the unit performing book entry accounting returns to the unit in charge - Value of gold spent by the unit that performs book entry accounting |
| Debit balance: | - Value of gold in stock of the unit performing the book entry accounting |
| Detailed accounting: | - To open detailed accounts by each unit that performs the book entry accounting |
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