What are regulations on Account 631 - Differences upon asset revaluation of non-bank credit institutions in Vietnam?
Hello Lawnet. According to current regulations promulgated by the Ministry of Finance, what are regulations on Account 631 - Differences upon asset revaluation of non-bank credit institutions in Vietnam? Thank you!
Pursuant to Article 45 of the Circular 05/2019/TT-BTC (takes effect from 01/04/2019) stipulating regulations on Account 631 - Differences upon asset revaluation of non-bank credit institutions in Vietnam as follows:
1. Accounting principles
a. This account shall be used for reflecting the differences upon revaluation of existing assets and current conditions of disposal of these differences at microfinance institutions.
b. Microfinance institutions shall only be allowed to revaluate assets at the market price in case Vietnamese accounting standards or financial policies permit or once they receive decisions from competent entities.
c. Microfinance institutions shall use subaccounts recording details of specific assets subject to revaluation.
2. Components and contents of this account
Debit side:
- Negative differences arising due to revaluation of assets;
- Actions against positive differences arising due to revaluation of assets.
Credit side:
- Positive differences arising due to revaluation of assets;
- Actions against negative differences arising due to revaluation of assets.
Account 631 may have balances on the Debit side or the Credit side.
Balances on the Debit side:
Reflecting negative differences arising due to revaluation of assets awaiting resolution.
Balances on the Credit side:
Reflecting positive differences arising due to revaluation of assets awaiting resolution.
Above are regulations on Account 631 - Differences upon asset revaluation of non-bank credit institutions in Vietnam.
Best regards!
