Guidance on accounts for cooperatives in Vietnam

Guidance on accounts for cooperatives in Vietnam

Article 3 of Circular 71/2024/TT-BTC prescribes the accounts applicable to cooperatives established and operating under the regulations in Vietnam as follows:

- accounts are used to classify and systematize economic and financial transactions according to economic content.

- Cooperatives shall apply the system of accounts guided in Appendix I issued together with Circular 71/2024/TT-BTC for the purpose of recording in accounting books. The accounts applicable to cooperatives include accounts within the balance sheet (including accounts from type 1 to type 6 and type 9 accounts) and accounts off the balance sheet (type 0 accounts). For accounts within the balance sheet, double-entry bookkeeping is applied (economic transactions arising are recorded on the Debit side of at least one account and on the Credit side of at least one other account). For accounts off the balance sheet, single-entry bookkeeping is applied (economic transactions arising are recorded only on the Debit or the Credit side of an account, without reciprocal recording with another account).

- Cooperatives are allowed to supplement detailed accounts for the accounts regulated in the accounting account system list (Appendix I) issued with Circular 71/2024/TT-BTC to record detailed transactions suitable for the cooperative's management requirements.

- In cases where it is necessary to supplement accounts parallel to the accounts regulated in the accounting account system list (Appendix I) issued with Circular 71/2024/TT-BTC, cooperatives must comply with the regulations of the Accounting Law to ensure consistency in account usage and presentation of information on financial statements, avoiding omission or duplication of financial report information.

- The catalog of the accounting account system, explanation of the content, structure, and accounting method for accounts is stated in Appendix I, "Catalog of System of Accounts and Accounting Methods," issued with Circular 71/2024/TT-BTC.

More details can be found in Circular 71/2024/TT-BTC which comes into force in Vietnam from October 7, 2024.

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