Accounting Method for Contributions to the Public-Utility Telecommunications Service Fund

Accounting Methods for Contributions to the Public Telecommunications Service Fund - Illustrative Image

Per Article 5 of Circular 57/2016/TT-BTC, the accounting methods for primary economic transactions related to financial contributions to the Vietnam Public Telecommunications Service Fund and the transfer of assets formed from the Fund's expenditures until 2020 are implemented as follows:

1. At the end of the quarter:

- Based on the Fund's notice of the financial contribution, record:

- Debit Account 642: Enterprise Management Expenses (Level 2 Detail Account - Financial Contribution to the Fund);- Credit Account 338: Other Payables (Level 2 Detail Account - Payable to the Fund)

- When transferring the contribution to the Fund's account, record:

- Debit Account 338: Other Payables (Level 2 Detail Account - Payable to the Fund);- Credit Accounts 111, 112

2. At the end of the financial year:

- Based on the actual revenue generated during the year, the enterprise determines the difference between the amount payable according to the Fund's notice and the amount payable as determined by the enterprise to account for:

+ In case the amount payable according to the Fund's notice is less than the amount payable as determined by the enterprise, the additional payable amount is recorded:

- Debit Account 642: Enterprise Management Expenses (Level 2 Detail Account - Financial Contribution to the Fund);- Credit Account 338: Other Payables (Level 2 Detail Account - Payable to the Fund)

+ In case the amount payable according to the Fund's notice is greater than the amount payable as determined by the enterprise, the payable amount shall be reduced (recorded as a negative):

- Debit Account 642: Enterprise Management Expenses (Level 2 Detail Account - Financial Contribution to the Fund);- Credit Account 338: Other Payables (Level 2 Detail Account - Payable to the Fund)

- When transferring the additional payable amount to the Fund's account, the accounting entry is recorded as in point a, Clause 2 of this Article.

- In case the enterprise has overpaid the Fund, the overpaid amount is deducted from the amount payable of the following period; in case the overpaid amount is refunded (if any), record:

- Debit Accounts 111, 112;- Credit Account 338: Other Payables (Level 2 Detail Account - Payable to the Fund)

3. At the time when the Fund finalizes with the enterprises, if there is a difference between the amount payable as determined by the enterprise and the amount payable as determined by the Fund, the accounting shall make adjusting entries similarly to the end of the financial year.

For more details, refer to Circular 57/2016/TT-BTC, effective from May 15, 2016.

Le Vy

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