Principles for Building the Accounting System for Small and Medium-sized Enterprises

Translation of Vietnamese Text into English (Legal Document Style):

Accounting Accounts (TKKT) are used to classify and systematize economic and financial transactions according to economic content. The TKKT system consists of the accounting accounts that need to be used. Each accounting unit is allowed to use only one TKKT system for financial accounting purposes as prescribed by the Ministry of Finance.

Small and Medium Enterprises shall base on accounting principles, the content, and structure of the TKKT stipulated in Circular 133/2016/TT-BTC to reflect and account for economic transactions arising in conformity with the operational characteristics and management requirements of the unit. The construction of the TKKT system for small and medium enterprises must ensure:

- TKKT is classified into asset types:- Asset accounts;- Liabilities;- Owners' equity;- Revenue;- Production and business costs;- Other income;- Other expenses;- Business result determination accounts.- Classification of financial investment accounts according to the holding purpose.- Asset and liability accounts should not be classified into short-term and long-term. Asset and liability accounts should only be presented as short-term and long-term when preparing and presenting financial reports;- Merge provision accounts (TK 159) and long-term financial investment provision (TK 229) into TK 229 - Asset Loss Provision (detailed for each suitable level 2 TK);- Merge short-term deposits and collaterals (TK 1388) and long-term deposits and collaterals (TK 224) into TK 1386 - Collateral, deposit, and guarantee;- Merge short-term prepaid expenses (TK 142) and long-term prepaid expenses (TK 242) into TK 242 – Prepaid Expenses;- Merge short-term loans (TK 311), long-term payable liabilities due (TK 315), long-term loans (TK 3411), and long-term liabilities (TK 3412) into TK 341 - Loans and Financing Leases;- Merge accounts for long-term received deposits and collaterals (TK 3414) and short-term received deposits and collaterals (TK 3386) into TK 3386 - Received Deposits and Collaterals;- Add TK 136 - Internal Receivables (TK 1361 - Business Capital in Sub-units; TK 1368 - Other Internal Receivables) into the accounting account system;- Add TK 128 - Held-to-Maturity Investments;- Add TK 151 - Purchases in Transit;- Rename TK 411 - Business Capital Source to Owners' Investment Capital;- Remove the following accounts:- TK 1113 - Gold, Silver, Precious Metals, Gems;- TK 1123 - Gold, Silver, Precious Metals, Gems;- TK 311 - Short-term Loans, TK 315 - Long-term Payable Due;- TK 351 - Unemployment Reserve Fund;- TK 521 - Revenue Deductions;- And any accounts outside the list of accounting account system applied for small and medium enterprises.

Circular 133 guides accounting policies for small and medium enterprises, replacing Decision 48/2006/QD-BTC and Circular 138/2011/TT-BTC.

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