CIRCULAR guide some specific financial policy for agricultural and forestry company after the completion of the arrangement, renovation _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ pursuant to Decree No. 215/2013/NĐ-CP on December 23, 2013 of government functions, tasks, powers and organizational structure of the Ministry of finance;
Pursuant to Decree No. 118/2014/NĐ-CP on 17/12/2014 of the Government on the arrangement, innovation and development, enhance the performance of the agricultural and forestry companies (hereinafter the Decree 118/2014/ND-CP);
Pursuant to Decree No. 71/2013/ND-CP on 11/07/2013 of Government on state capital investment in the business and financial management for enterprises by the State holds 100% of the Charter capital (hereinafter the Decree No. 71/2014/ND-CP);
According to the proposal of the Director General corporate finance;
The Minister of Finance issued circulars some specific financial policy for agricultural and forestry company after the completion of the arrangement, renovation.
Article 1. Scope this circular guide some specific financial policy for agricultural and forestry company after the completion of the arrangement, renovation under Decree No. 118/2014/ND-CP, in particular: – capital for agricultural, forestry and industrial companies by the State holds 100% of the Charter capital;
-Extract and use risk prevention for the production forest is planted;
-Management of currency, the genus of nursery, kindergarten, Medical Center on hold to serve production and business activities of the company.
Article 2. The object that applies to this circular apply to agricultural and forestry companies operating under the enterprise law has completed the arrangement, renovation under Decree No. 118/2014/ND-CP of article 3. Capital for agricultural, forestry and industrial companies by the State holds 100% of the Charter capital 1. Agricultural, forestry and industrial companies by the State holds 100% of the Charter capital made determining the adjusted capital as defined in article 19 paragraph 1 of Decree 118/2014/NĐ-CP on December 17, 2014.
2. The principle of adjusting the increase, records and procedures for approving capital follow specified in point a, point c, paragraph 2, article 9 circular No. 220/2013/TT-BTC dated 31/12/2013 the Ministry of Finance shall guide the implementation of a number of articles of Decree No. 71/2013 issued. 3. The method of determining the adjusted capital increase made in accordance with point b, paragraph 2, article 9 circular No. 220/2013/TT-BTC dated 31/12/2013 the Ministry of Finance shall guide the implementation of a number of articles of Decree No. 71/2013/ND-CP for some specific cases, the business determine the adjusted increase of Charter capital as defined later : a) for forestry forest management planted forests production; agricultural company industrial crops: Vđl adjust the back = Vđl was browsing + up to 50% of the total capital investment needs, asset formation shopping serves the main business activity of the business + Vsxsp-kdhhdv where:-Vđl have browser's capital levels have been approved by the authorized before adjusting.
-Total capital investment needs, asset formation shopping serves the main business activity of the business identified under the provisions of paragraph 2, point b article 9 circular No. 220/2013/TT-BTC dated 31/12/2013 of the Ministry of finance.
-Vsxsp-kdhhdv is the capital needs for the production of products, commodities trading business services.
The method determines the following: Vsxsp-hhkd = a maximum of 50% of the difference between the total increase x capital needs of business, manufacturing goods and services to the third year since reassessed the level of capital than capital needs, product production and trading and/or service provision, made of five adjacent years ago made reassessed capital levels increased disparity Levels between the total manufacturing capital needs for products, goods, and services to the third year since reassessed the level of capital than capital needs, product production and trading and/or service provision, made of five adjacent years ago reassessed the level of capital is calculated according to the provisions in point b of paragraph 2 , Article 9 circular No. 220/2013/TT-BTC dated 31/12/2013 of the Ministry of finance.
b) for agricultural and forestry companies were Government regulations specific mechanisms of capital shall be according to the rules continue to apply.
Article 4. Extract and use prevention risks to the production forest is planted for forestry, agriculture, companies make a backup set excerpt risks to the production forest is planted according to the following rules: 1. Each year at the end of accounting period of the year, agricultural and forestry companies made inventory, quality assessment and classification of forest plantation is the production by area , age, type of tree as the basis of extract formed reserve.
2. time to extract backup set is the end of the accounting period the first year since the start of the afforestation. For an area of the forest was planted prior to the time this circular effect the enforcement of agricultural and forestry company, is established in the end of the accounting period the first year since the time this circular effect.
3. extract the backup set Level: the level of extract formed reserve maximum 5% of the total costs due to forestry companies have invested to plant, care for, manage production forest protection is the forest planting. Extract specific items and time quote (can allocate for many years) due to the company to decide depending on the financial possibilities of the business every year, to ensure businesses do not arise.
Backup set deductions are accounted into the costs of production, the business of business in the States and unless determined taxable income.
4. Use backup source: Enterprise only used reserves set aside to offset the losses caused by natural disasters, fire, epidemics for the plantation area was extracted; the value of losses still missing after backup sources were offset by accounting is production costs, business in the States. After the case compensated the losses still balance deductions set up backup, Enterprise continues to monitor and extract for the next years to exploit the production forest is planted.
When the planting of forest exploitation has quoted estimate is, deductions the remaining backup set must be completed to enter the manufacturing cost accounting, business.
5. where the business has bought insurance for its area planted is not taken up. The business case has been made to extract backup set before you buy no insurance is taken up next. When a loss occurs, the value after the losses were offset by compensation of the insurance organization, redundant (if any), the missing part is accounting is production costs, business in the States.
6. enterprises should set up the Council to appraise the level of extract formed reserves and handle actual losses. The composition of the Council include: the ceo (or Director), Chief Accountant, the head of the relevant Committee, and some experts (if needed), Director General (or Director) decided to establish Business Council.
Article 5. Management of currency, the genus of nursery, kindergarten, Medical Center on hold to serve production and business activities of the company the case of agricultural, forestry companies keep nursery, kindergarten, health centers to cater for the business and production operations, the management of the accounts receivable , of this organization was to follow the following instructions: 1. principles of currency management,: a) the base content and costs according to the provisions of the law apply to the public due to the State budget to ensure full funding of the field operation is equivalent , head of the kindergarten, nursery unit, the Medical Center is responsible for the construction and the authority as prescribed in the regulations of the financial management of the company issued the costs for operation of the unit. The norms have to be popular to the people who make, publicize for workers.
b) the whole of the revenues and expenses of the facility must have adequate documentation in accordance with the accounting law and reflected in the accounting books of premises under current accounting mode applied to the base.
c) the management, use and depreciation of fixed assets performed in accordance with the relevant legislation.
2. Every year, the Mission of the base year costs and plans, results, activities, financial income situation of adjacent years ago; estimating unit currency, spent years planning the authority as prescribed in the regulations of the financial management of the company for approval.
3. The end of the fiscal year, which created the report currency, to the authority for approval under the financial management of the company for approval. The case of the actual expenses for the year exceed or fall outside the genus estimation units must explain clearly the cause to report the authority to review the decision.
4. in case the revenues weren't enough to offset expenses (including depreciation of fixed assets) and the other part to pay disparity of incomes and expenses are accounted into the costs of production and business of the company and unless determined taxable income.
5. The case of the larger expenses and revenues the account must file more then this difference be accounted on the other income of the business.
Article 6. Effect 1. This circular effect since October 6, 2015.
2. In the process of implementing if there difficult obstacles suggest that timely reflect the units of the Ministry of finance to study the guidelines,./.