What are regulations on Account 691 - Undistributed post-tax profits of non-bank credit institutions in Vietnam?
Hello Lawnet. Please provide me with regulations on Account 691 - Undistributed post-tax profits of non-bank credit institutions in Vietnam. Thank you!
Pursuant to Article 47 of the Circular 05/2019/TT-BTC (takes effect from 01/04/2019) stipulating regulations on Account 691 - Undistributed post-tax profits of non-bank credit institutions in Vietnam as follows:
1. Accounting principles
a. This account shall be used for reflecting business results (profit or loss) after CIT and assessing distribution of profits or handling of losses incurred by microfinance institutions.
b. The distribution of profits gained from business operations of microfinance institutions must be clear, apparent and conform to current financial policies.
c. It shall be necessary to record details of business results in each fiscal year (previous or present year).
2. Components and contents of this account
Debit side:
- Business losses of microfinance institutions;
- Setting up funds of microfinance institutions;
- Distribution of profits to owners;
- Supplementing the paid-in capital.
Credit side:
- Actual amounts of profits generated from business operations within an accounting period;
- Handling losses incurred from business operations.
Account 691 may have balances on the Debit side or the Credit side.
Balances on the Debit side:
Business losses awaiting resolution.
Balances on the Credit side:
Total amount of after-tax profits not yet to be distributed or used.
Above are regulations on Account 691 - Undistributed post-tax profits of non-bank credit institutions in Vietnam.
Best regards!
