Guidance on conversion of balance in accounting books for small and medium enterprises in Vietnam

14:38, 19/09/2016

Circular No. 133/2016/TT-BTC of the Ministry of Finance of Vietnam on accounting for small and medium enterprises (SMEs), which replaces Decision No. 48/2006/QĐ-BTC and Circular No. 138/2011/TT-BTC, has many new points. This Circular promotes feasibility of application in business practice.

The accounting regime applied to SMEs is open and highly flexible, offering many options for businesses. The accounting regime mainly regulates level 1 accounts, with only a few detailed level 2 accounts, each account only reflects one content, there are no separate short-term or long-term accounts. Enterprises can detail and monitor short-term and long-term accounts or open detailed accounts according to their management requirements;

For accounts specified in Decision No. 48/2006/QĐ-BTC but not mentioned in Circular No. 186/2013/TT-BTC of the Ministry of Finance of Vietnam, enterprises shall convert account balances as follows:

No.	Accounts according to Decision No. 48/2006/QĐ-BTC	transferred to	Accounts according to Circular No. 186/2013/TT-BTC
1	Gold, silver, valuable metals and gemstones in Account 1113 and 1123	⇒	Account 152 (Inventory), Account 155 (Finished products), Account 156 (for those classified as inventory) Account 2288 (for those not classified as inventory)
2	Bonds, treasury bills, exchange bills held to maturity and/or not held for trading in Account 121 (Short-term financial investments)	⇒	Account 128 (Held to maturity investments) (1288)
3	The balance of Account 142 (Short-term prepaid expenses)	⇒	Account 242 (Prepaid expenses)
4	Short-term deposits in Account 1388 and Account 244 (Long-term deposits)	⇒	Account 1386 (Pledges and deposits)
5	The provisions in Account 159 and Account 229	⇒	Account 229 (Provision against impairment of assets)
6	The balance of Account 311, Account 315, Account 3411 and Account 3412	⇒	Account 341 (Borrowings and finance lease liabilities)
7	Account 3414	⇒	Account 3386
8	Accrued expenses for repair and maintenance of fixed assets (if required), environmental costs, relocation costs and similar amounts reflected by Account 335 (Expenses payable)	⇒	Account 352 (Provisions for payables (sub-account 3524)

Other contents that are not conformable with Circular No. 186/2013/TT-BTC of the Ministry of Finance of Vietnam must be adjusted to this Circular.

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