Principles of Managing Current Assets of Cooperatives

Management of current assets must comply with the following principles:

- Cooperatives and unions of cooperatives must establish regulations to manage current assets strictly. Cooperatives and unions of cooperatives must maintain close records of cash receipts and disbursements, deposits, stocks, bonds, and foreign currency, and must fully and promptly reflect all receipts and disbursements, adhering to cash management regulations. Monthly, cash fund inventories and bank account balance reconciliations must be performed.- All instances of warehouse entries and exits must be documented entirely and recorded in the relevant books (warehouse entry and exit slips, material warehouses, product goods books).- The original cost of externally purchased current assets: This is the purchase price plus transportation, storage, insurance, selection, recycling fees (if any), and related taxes and fees (excluding refundable taxes).- The original cost of current assets manufactured by the cooperative or union of cooperatives: This consists of the warehouse-issued material costs plus actual incurred costs during the self-manufacturing process.- The original cost of materials outsourced for processing: This is the actual value of materials issued from the warehouse for outsourcing, plus processing, transportation, and handling fees.- The entire value of used current assets must be accounted for in the expenses of the user entity during the cooperative's or union of cooperatives' business and service production period.- For cases of issuing tools and equipment with high value and a usage period of one year or more, the expenses shall be allocated across multiple business production cycles, but not exceeding 3 years.

More details can be found in Circular 83/2015/TT-BTC, effective from July 15, 2015.

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