Methods of Accounting for the Fund as a Lending Trustee

17:48, 10/07/2024

The following is the significant content stipulated in Circular 209/2015/TT-BTC providing guidance on accounting applied to local development investment funds, issued by the Ministry of Finance on December 28, 2015.

To be specific:, Circular 209/2015/TT-BTC stipulates that the Fund, as the trustee for lending, shall apply the following accounting methods:

- Based on the investment lending trust contract between the Fund and the trustee, when the Fund transfers money to the trustee, it shall record:

Debit Account 1341 - Receivables from funds entrusted for lending (Detail the trustee)

Credit Account 112 - Bank deposits.

- Upon receiving the notice of entrusted funds disbursed to borrowers along with the loan documents from the trustee, it shall record:

Debit Account 12832 - Fund entrusted for lending (Detail the principal amount lent by term and borrower)

Credit Account 1341 - Receivables from funds entrusted for lending (Detail the trustee).

- When the customer fails to repay the principal on the due date as per the Credit Agreement notified by the trustee: The principal overdue debt is classified as overdue debt, accounting must track details in the management system and explain in the financial statements, simultaneously record a reduction in interest receivable, it shall record:

Debit Account 511 - Revenue from professional activities (5111) (interest receivable recognized as revenue from professional activities in the same period)

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See detailed information at Circular 209/2015/TT-BTC effective from February 11, 2016.

- Khanh Chi -

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