Thông tư 162/2010/TT-BTC

CIRCULAR

AMENDING AND SUPPLEMENTING THE CIRCULAR NO. 95/2008/TT-BTC DATED OCTOBER 24TH 2008 ON ACCOUNTING APPLICABLE TO SECURITIES COMPANIES

Pursuant to the Law on Accounting No. 03/2003/QH11 dated June 17^th 2003;

Pursuant to the Law on Securities No. 70/2006/QH11 dated June 29^th 2006;

Pursuant to the Government's Decree No. 118/2008/NĐ-CP dated November 27^th 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

Pursuant to the Government's Decree No. 129/2004/NĐ-CP dated May 31^st 2004 detailing and guiding the implementation of a number of articles of the Law on Accounting applicable to trading;

The Ministry of Finance guides the amendment and supplementation of some accounting techniques that are not specified in the Circular No. 95/2008/TT-BTC dated October 24^th 2008 on accounting applicable to securities companies as follows:

Article 1. Scope of regulation and subjects of application

1. This Circular guides the amendment and supplementation of some accounts and items in the Financial statements applicable to the securities companies prescribed in the Circular No. 95/2008/TT-BTC dated October 24^th 2008.

2. For accounting techniques not being guided in this Circular, securities companies shall comply with the Law on Accounting, the documents guiding the Law on Accounting, the Accounting regime applicable to enterprises, and the Circular No. 95/2008/TT-BTC dated October 24^th 2008, guiding the accounting of securities companies.

Article 2. Changing the Code 353– “Provision for paying compensation to investors” into Code 359  - “Provision for paying compensation for investors". The structure, content, and accounting method of Code 359 is not changed compared to Code 353 in the Circular No. 95/2008/TT-BTC.

Article 3. The Government bonds shall be sold and repurchased in accordance with the Circular No. 206/2009/TT-BTC dated October 27^th 2009, guiding the sale and repurchase of Government bonds.

Article 4. Amending and supplementing some items in Point 3.1 Part III – Financial statement – in the Circular No. 95/2008/TT-BTC (The Balance sheet – Form No. B01-CTCK)

- The values of item 112 “Cash equivalents” are the Debit balance of Account 121 “Commercial securities” in the detailed book of Account 121 and the Debit balance of Account 128 “Other short-term investments” in the detailed book of Account 128 of the financial investments that shall be recovered or mature within 03 months, facing minor risks, and easy to be converted into cash from the date of purchase.

- The values of item 311 “Short-term debts and loans” are the Credit balance of Account 311 “Short-term loans” in the Ledger, and the Credit balance of Account 341 in the detailed book of Account 341 “Long-term loans” (the long-term loan payable in the next accounting year), and the Credit balance in the detailed book of Account 342 “Long-term debts” (the long-term debts payable in the next accounting year).

- The values of item 334 “Short-term debts and loans” are the total Credit balance of Account 341 “Long-term loans”, Account 342 “Long-term debts”, and Account 343 “Issued bonds” in detailed books of Accounts 341, 342, and 343, after deducting the short-term loans and debts recorded in Account 311.

- Item 339 – “Provision for paying compensation to investors” is changed into item 359. The values of item “Provision for paying compensation to investors” are the Credit balance of Account 359 “Provision for paying compensation to investors” in the ledger of Account 359.

- Item 328 “Other short-term payables" is changed into item 319.

- The value of item 313 “Prepaid by buyers” is the Credit balance of Account 131 “Receivables from  customers” opened for each customer in the detailed book of Account 131. This item does not reflect the unrealized revenues (including prepaid revenues).

- Item 430 - “Bonus and welfare funds” is changed into item 323. This item reflects the bonus and welfare funds; the bonus funds for the board of directors that are not used at the time of reporting. The values of item “Bonus and welfare fund” are the Credit balance of Account 353 “Bonus and welfare funds” in the ledger.

-  Item 157 – “Repurchase of Government bonds” is added. This item reflects the value of Government bonds of the buyer before the expiry date of the sale contract at the reporting time. The values of item “Repurchase of Government bonds” are the Debit balance of Account 171 “Repurchase of Government bonds” in the accounting book of Account 171.

-  Item 327 – “Repurchase of Government bonds” is added. This account reflects the value of Government bonds of the seller before the expiry date of the sale contract at the reporting time. The values of item “Repurchase of Government bonds” are the Credit balance of Account 171 “Repurchase of Government bonds” in the accounting book of Account 171.

-  Item 328 “Short-term unrealized revenue” is added. This item reflects the unrealized revenue that shall be converted into realized revenue within the next 12 months from the reporting time. The values of item “Short-term unrealized revenue” are the Credit balance of Account 3387 - “Unrealized revenues” in the detailed accounting book of Account 3387 – the unrealized revenues that shall be converted into realized revenues within the next 12 months.

-  Item 338 “Long-term unrealized revenue” is added. This item reflects the unrealized revenue that shall be converted into realized revenue after 12 months from the reporting time. The value of item “Long-term unrealized revenue” is the Credit balance of Account 3387 - “Unrealized revenues” in the detailed accounting book of Account 3387 – the unrealized revenues that shall be converted into realized revenues after 12 months.

-  Item 339 - “Scientific and technological development funds” is added. This item reflects the Scientific and technological development funds that are not used at the reporting time. The values of item “Scientific and technological development funds” are the Credit balance of Account 356 “Scientific and technological development funds” in the accounting book of Account 356.

Article 5. Amending and supplementing some items in Point 3.3 Part III - Financial statement -  in the Circular No. 95/2008/TT-BTC (Cash flow statement – Form No. B03 – CTCK)

- The revenues from selling Government bonds under repurchase agreements (Repo) shall be recorded in item 33 - “Short-term and long-tern loans received”;

- The payment for purchasing/repurchasing Government bonds under repurchase agreements (Repo) shall be recorded in item 34 - “Principal payment”.  

Article 6. Amending and supplementing some items of the Description of the annual financial statement in Annex 02 enclosed with the Circular No. 95/2008/TT-BTC in Annex 01 enclosed with this Circular.

Article 7. Adding the form of Report on the fluctuation of owner’s equity (Form No. B05-CTCK) in Annex 02 enclosed with this Circular. 

The content and method of making the Report on the fluctuation of owner’s equity:

This report is to reflect the fluctuation of the owner’s equity of a securities company.

Column A “Items” reflects the items of the owner’s equity

Column 1 and column 2 “Opening balance” reflects the balance of in the beginning of the year (last year and this year) according to each item of the owner’s equity.

The values in Column 1 “ Last year” are based on the values in Column 7 of the last year’s report.

The values of column 2 are based on the values in column 8 of that last year’s report, or the Accounts 411, 412, 413, 414, 415, 418, 419 and 421 of the current accounting books.

Column 3, 4, 5, and 6 “Increases and decreases” reflect the increase and decrease of the owner's equity according to each item.

The values of Column 3, column 4 “Increases” and “Decreases” of the last year are based on the values in Column 5 “Increases” and Column 6 “Decrease” of the last year’s report.

The values of column 5, column 6 “Increases” and “Decrease” of the current year are based on the Accounts 411, 412, 413, 414, 415, 418, 419 and 421 of the current accounting books in the reporting year.

Column 7 and column 8 “Closing balance” reflects the closing balance (last year and this year) of the owner’s equity according to each item. The values of Column 7 (Last year’s balance) of this year’s report are based on the values in Column 8 (This year’s balance) of the last year's report.

The values of Column 8 “This year’s balance” of this year’s report are based on the closing balance of Accounts 411, 412, 413, 414, 415, 418, 419 and 421 of the reporting year.

Article 8. The items in each interim financial statement are similar to that of the annual financial statement provided in the Circular No. 95/2008/TT-BTC and this Circular.

Article 9. Effects

This Circular takes effect on January 01^st 2011.

Article 10. Responsibility for organizing the implementation

1. The Director of the Department of Audit and Accounting Regulation, the President of the State Securities Commission, the Directors of securities companies and directors of relevant agencies are responsible for organizing and guiding the implementation of this Circular.

2. The companies are recommended to send feedbacks on the difficulties arising during the course of implementation to the Ministry of Finance for consideration and settlement./.

ANNEX 01

(Enclosed with the Circular No. 162/2010/TT-BTC dated October 20^th 2010, amending and supplementing the Circular No. 95/2008/TT-BTC dated October 24^th 2008)

Amending and supplementing some items of the Description of the annual financial statement in Annex 02 enclosed with the Circular No. 95/2008/TT-BTC

1. Point 01 Section V – Cash and cash equivalents – is supplemented as follows:

2. Point 04 Section V – Financial investment status – is amended and supplemented as follows:

3. Point 13 Section V – Short-term loans – is supplemented as follows:

4. Point 13 Section V – “Other short-term payables” is changed into Point 14 Section V -  “Other short-term payables”, Point 14 Section V - "Internal long-term payables” is changed into Point 15 Section V – “Internal long-term payables”.

5. The content in Point 16 Section V “Increases and decreases of owner’s equity” is discarded

6. Point 15 Section V – “Long-term loans and debts” is changed into Point 16 Section V – “Long-term loans and debts” as follows:

7. Point 17 Section V – Payables in securities transactions – is added as follows:

8. Point 18 Section V – The establishment of provisions for bad debts – is added as follows:

9. Section VIII – Additional information for the Report on the fluctuation of owner’s equity – is added as follows:

1. The dividend suggested or announced after the Balance sheet is made and before the Financial statement is allowed to be published, and

2. The dividend value of the cumulative preference shares is not recorded

3. The incomes, expenses, profits or losses are directly recorded in the owner’s equity:

- Incomes:

......................

- Expenses:

......................               (..........)

- Profit (loss):

..............................................................

Total:

10. Section VIII “Other information” is changed into Section IX “Other information”.

ANNEX 02

(Enclosed with the Circular No. 162/2010/TT-BTC dated October 20^th 2010, amending and supplementing the Circular No. 95/2008/TT-BTC dated October 24^th 2008)

REPORT ON THE FLUCTUATION OF OWNER’S EQUITY

In:……………

Currency: ………………

* Explain some increases and decreases that greatly affect the fluctuation of the owner’s equity in a year