Vietnam: Account 130 records a microfinance institution’s deposit amounts at domestic credit institutions

According to Circular No. 05/2019/TT-BTC of the Ministry of Finance of Vietnam, accounting principles of Account 130 – Deposits at credit institutions are as follows:

- This Account shall be used for recording a microfinance institution’s deposit amounts at domestic credit institutions.

- Bases for recording entries into this account shall include the notice of Credit, Debit or the account statement issued by a credit institution, enclosing original evidencing documents.

- Upon receipt of evidencing documents from credit institutions, the accountant must make comparisons with attached original documents. In case where there is any difference between data available in the accounting book of a microfinance institution or data available in original evidencing documents and those available on evidencing documents of credit institutions, it shall be obligatory to inform credit institutions to make comparison and then verify and deal with such difference in a timely manner.

Components and contents of Account are specified in Circular No. 05/2019/TT-BTC as follows:

- Debit side:

+ Deposit amounts at domestic credit institutions;

+ Exchange differences increased owing to revaluation of foreign currency balances at the reporting date.

- Credit side:

+ Withdrawn deposits;

+ Exchange differences decreased owing to revaluation of foreign currency balances at the reporting date.

- Balances on the Debit side: Microfinance institution’s total deposits made at domestic credit institutions on the reporting date.

View more details at Circular No. 05/2019/TT-BTC of the Ministry of Finance of Vietnam, effective from January 25, 2019.

-Thao Uyen-

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE