Vietnam: Accounts used to record transactions in covered warrants

11:01, 24/03/2018

On March 12, 2018, the Ministry of Finance of Vietnam issued Circular No. 23/2018/TT-BTC providing guidance on accounting for covered warrants of securities companies being issuers.

According to Circular No. 23/2018/TT-BTC of the Ministry of Finance of Vietnam, accounts used to record transactions in covered warrants are guided as follows:

1. Account 329 – Payable warrants: This account reflects the current payable warrants and changes in the payable warrants account due to the mark-to-market revaluation of warrants.

Structure of account 329 – Payable warrants:

Debit:

- Payments for warrants;

- Decreased amounts of payable warrants.

Credit:

- Amounts payable for warrants;

- Increased amounts of payable warrants.

Credit balance: Remaining amounts payable for warrants.

2. Sub-accounts of account 112 - Bank deposits are opened to monitor sums for securing payment obligations at a depository bank before the offering of warrants, sums deposited in escrow account (proceeds from offering of warrants on the primary market) and sums deposited in proprietary trading account (for hedging risks at the request of the Stock Exchange).

3. Account 018 - Warrants (sub-accounts are opened to record every type of warrants).

Structure of account 018 – Warrants:

Debit: Reflecting the quantity of warrants to be issued.

Credit: Reflecting the quantity of outstanding warrants.

Debit balance: Reflecting the quantity of untraded warrants.

View more details at Circular No. 23/2018/TT-BTC of the Ministry of Finance of Vietnam, effective from April 27, 2018.

- Thanh Lam -

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