General Provisions of the Accounting Account System for VAMC Asset Management Company, Circular 42/2014/TT-NHNN

General Provisions of the Accounting Account System for VAMC Asset Management Company (illustrative image)

In the accounting regime issued with Circular 42/2014/TT-NHNN, general regulations on the Accounting Account System apply to the Vietnam Asset Management Company (VAMC) are as follows:

- VAMC is only allowed to open and use accounts specified in the Accounting Account System when there is an existing operational mechanism and in accordance with permitted activities.

- VAMC's Accounting Account System includes accounts on the balance sheet and off-balance sheet accounts, arranged into 10 categories:- Accounts on the balance sheet consist of 9 categories (from category 1 to category 9);- Off-balance sheet accounts consist of 1 category (category 0);- Accounts on the balance sheet (commonly referred to as internal accounts) and off-balance sheet accounts (commonly referred to as external accounts) are arranged from first-level accounts to third-level accounts, denoted by 3 to 5 digits;- First-level accounts are denoted by 3 digits from 111 to 999;- Second-level accounts are denoted by 4 digits, the first three digits (from left to right) represent the first-level account code, the fourth digit is the sequence number of the second-level account within the first-level account, denoted from 1 to 9;- Third-level accounts are denoted by 5 digits, the first four digits (from left to right) represent the second-level account code, the fifth digit is the sequence number of the third-level account within the second-level account, denoted from 1 to 9.

- First-level, second-level, and third-level accounts are comprehensive accounts regulated by the Governor of the State Bank. Fourth-level, fifth-level accounts, etc., are comprehensive accounts regulated by the General Director of VAMC to meet specific requirements for accounting arising operations in the unit but must conform to the nature and content of the first-level, second-level, and third-level accounts regulated by the Governor of the State Bank.

- Detailed accounts (sub-accounts): Detailed accounts (sub-accounts) are used to reflect detailed accounting objects of the comprehensive accounts. Opening detailed accounts is carried out according to regulations in the content section of accounting accounts, the sequence number of the sub-account is indicated to the right of the comprehensive account number and separated from the comprehensive account number by a dot (.). Additionally, VAMC is allowed to open more detailed accounts according to operational management needs when necessary.

- Accounting on foreign currency and gold accounts specified in this accounting account system, VAMC must adhere to the following principles:- Convert foreign currency and gold to Vietnamese dong and monitor the amount received, spent, and remaining foreign currency and gold by original currency of each type of foreign currency and gold at VAMC;- Record, evaluate, and handle exchange rate differences according to current regulations of the Ministry of Finance.

Details can be found in Circular 42/2014/TT-NHNN effective from February 2, 2015.

Ty Na

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