What are the methods of assessing the capital reservation level of Deposit Insurance of Vietnam?
When will the Deposit Insurance of Vietnam carry out inventory of assets?
Pursuant to the provisions of Clause 1, Article 10 of Circular 312/2016/TT-BTC as follows:
Inventory and re-evaluation of assets
1. Inventory of assets
Deposit Insurance of Vietnam shall carry out periodical or irregular inventory of assets after accounting books are closed for the formulation of annual financial statements; after natural disaster and hostility; or assets of Deposit Insurance of Vietnam are changed for some reason; or as stipulated by the law. Deposit Insurance of Vietnam should inventory assets in surplus and in shortage, determine causes, responsibility of relevant organizations and individuals and put forth an indemnity according to the regulations.
Deposit Insurance of Vietnam shall handle and inventory assets of the enterprises of which 100% charter capital is held by the State according to the law.
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Thus, Deposit Insurance of Vietnam shall carry out periodical or irregular inventory of assets in the following cases:
- accounting books are closed for the formulation of annual financial statements;
- after natural disaster and hostility;
- assets of Deposit Insurance of Vietnam are changed for some reason;
- as stipulated by the law.
Note: Deposit Insurance of Vietnam should inventory assets in surplus and in shortage, determine causes, responsibility of relevant organizations and individuals and put forth an indemnity according to the regulations.
What are the methods of assessing the capital reservation level of Deposit Insurance of Vietnam?
What are the principles for handling loss of assets caused to Deposit Insurance of Vietnam?
Principles for handling property losses are specified in Article 12 of Circular 312/2016/TT-BTC as follows:
Handling of asset losses
Any loss of assets caused to Deposit Insurance of Vietnam (except for losses subject to deposit insurance commitments of Deposit Insurance of Vietnam) must be documented to determine lost value, causes, and responsibilities and handled as below:
1. If the loss is caused by human errors, the person causing such loss shall pay compensation. Board of Directors of Deposit Insurance of Vietnam shall decide degree of compensation and take responsibility for its decision.
2. Insured assets shall be handled under the contract of insurance.
3. Shortage of the lost value after being recovered and compensated by individuals, collectives, insurers, loan loss reserves, and the deficit shall be included in the expenses in the period.
4. With respect to losses or serious damage caused by natural disaster, hostility or force majeure events respectively that could not be tackled by Deposit Insurance of Vietnam, its Board of Directors shall plan a measure of handling and report to the State Bank of Vietnam who shall then make submission to the Prime Minister for decision.
5. Deposit Insurance of Vietnam shall be responsible for handling losses of assets punctually. In case those losses are not tackled, the Board of Directors and General Director shall be held accountable to law.
Thus, any loss of assets caused to Deposit Insurance of Vietnam (except for losses subject to deposit insurance commitments of Deposit Insurance of Vietnam) must be documented to determine lost value, causes, and responsibilities and handled as below:
(1) If the loss is caused by human errors, the person causing such loss shall pay compensation. Board of Directors of Deposit Insurance of Vietnam shall decide degree of compensation and take responsibility for its decision.
(2) Insured assets shall be handled under the contract of insurance.
(3) Shortage of the lost value after being recovered and compensated by individuals, collectives, insurers, loan loss reserves, and the deficit shall be included in the expenses in the period.
(4) With respect to losses or serious damage caused by natural disaster, hostility or force majeure events respectively that could not be tackled by Deposit Insurance of Vietnam, its Board of Directors shall plan a measure of handling and report to the State Bank of Vietnam who shall then make submission to the Prime Minister for decision.
(5) Deposit Insurance of Vietnam shall be responsible for handling losses of assets punctually. In case those losses are not tackled, the Board of Directors and General Director shall be held accountable to law.
In case property losses are not handled in accordance with regulations, the Board of Directors and General Director must be responsible before the law.
What are the methods of assessing the capital reservation level of Deposit Insurance of Vietnam?
Pursuant to the provisions of Article 7 of Circular 312/2016/TT-BTC (with regulations amended by Clauses 4, 5, 6, Article 1 of Circular 20/2020/TT-BTC) as follows:
Capital preservation of Deposit Insurance of Vietnam
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3. Annually, Deposit Insurance of Vietnam shall assess the capital reservation level of Deposit Insurance of Vietnam as follows:
a) The operating results of Deposit Insurance of Vietnam shall be considered capital preservation if no negative balance arises or positive balance arises.
b) The operating results of Deposit Insurance of Vietnam shall be considered non capital preservation if negative balance arises (including negative accumulated balance).
4. When the capital preservation level is assessed, Deposit Insurance of Vietnam is entitled to exclude objectives factors that affect its capital and revenues, including the following cases:
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Thus, the Deposit Insurance of Vietnam shall assess the capital reservation level of Deposit Insurance of Vietnam according to the following two methods:
Firstly, the operating results of Deposit Insurance of Vietnam shall be considered capital preservation if no negative balance arises or positive balance arises.
Second, the operating results of Deposit Insurance of Vietnam shall be considered non capital preservation if negative balance arises (including negative accumulated balance)..
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