CIRCULAR guide extract mode and use the reserves off inventory, losses on financial investments, debt provision and maintenance products, goods, construction works in the business _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ securities pursuant to the law;
Pursuant to Decree No. 118/2008/ND-CP on November 27, 2008 of the Government regulations on functions, tasks, powers and organizational structure of the Ministry of finance;
Pursuant to Decree No. 124/2008/ND-CP on 11/12/2008 the Government detailing and guiding the implementation of some articles of the law on Enterprise Income Tax;
Pursuant to Decree No. 12/2009/ND-CP on 5/2/2009 the Government issued regulation on financial management of State-owned companies and the State capital management investments in other enterprises, the Ministry of finance instructed the quote up and use the reserves off inventory, loss prevention financial investments debt prevention, provision and maintenance of backup products, goods, construction works at the enterprises as follows: part I GENERAL PROVISIONS article 1. Applicable objects: The active organization of production, sales of goods or services taxable income under the provisions of the law of Vietnam (hereinafter enterprise).
1. for enterprises established on the basis of the agreements signed between the Government of the Socialist Republic of Vietnam and the Government of a foreign country, if the agreement contains the rules on quoting and using reserves other than the guide in this circular, the following provisions of that agreement.
2. The extract set of credit institutions to comply with the provisions of the text guide financial regime for credit institutions.
Article 2. Explanation of terms: 1. discounted inventory backup: backup is part of value suffered losses due to the price of materials, finished products, goods inventories were reduced.
2. Backup the main investments losses: backup is part of value suffered losses due to the type of investment securities of businesses suffering a discount; the value of financial investments suffered losses due to the economic organization that enterprises are investing in loss.
3. debt provision of backup: backup is part of value losses of the past due debt payments, debt have not yet expired but could not claim to be owed by the inability to pay.
4. Preventive maintenance products, goods, construction works: is the cost of backup for the products, goods, construction works were sold, handed over to the buyer but the enterprise still has an obligation to continue to repair, improve or committed by contract with the client.
Article 3. The general rule in the excerpt up reserves.
1. The reserves referred to in points 1, 2, 3, 4 Article 2 to this circular was quoted earlier on the cost of doing business in corporate reporting, help for businesses have financial resources to offset the losses that can occur in the year of the plan, which aims to preserve capital; guarantee for business reflected the value of supplies of goods inventory, financial investments are not higher prices on the market and the value of the debt no higher than the value can be recovered at the time of establishment of the financial reporting.
2. set time and entered the reserves is the end of the accounting period of the year. The business case is the Ministry of finance approved the application of a fiscal year other than the calendar year (beginning on January 1 and ending December 31 of every year), then the time and enter the reserves is the last day of the fiscal year.
For businesses listed on the stock market to financial reporting between the levels are set and quote enter the redundancy in both the time between financial reporting.
3. enterprises should build the mechanism of management of materials, goods, public debt management to limit the risk in the business. As for the debt, commodities, regulations must clearly define the responsibilities of each Department, each person in the track, management of cargo, recovery of the debt.
The advantage of enterprise prohibited to extract backup set to add on the cost of the reserves does not have enough bases to reduce obligations to the budget. The businesses deliberately breach will be sanctioned as acts of tax evasion under the provisions of the current law.
4. enterprises should set up the Council to appraise the level of extract formed reserves and handle the actual loss of materials and merchandise inventory, financial investments, debts do not have the ability to recover under the provisions of this circular and the other legal texts concerned. Extract the backup set in the private costs of warranty products, goods, construction works shall perform according to the contract or commitment with customers.
The composition of the Council include: the ceo (or Director), Chief Accountant, the head of the relevant Committee, and some experts (if needed). The Director General (or Director) decided to establish Business Council.
Part II EXCERPT and USE the RESERVES based on actual fluctuation of price inventory, stock price, the value of financial investments, debt provision and warranty products, commodities, Enterprise proactively determine the levels of extract, using reserves every right purposes and processed according to the specific regulations below : article 4. Discount backup inventory.
1. set backup objects include raw materials, manufacturing tools, supplies, merchandise, finished goods inventory (including damaged inventories, less loss of quality, outdated fad, backward techniques, outdated, stagnant, slow rotation ...), unfinished, incomplete service expenses (hereinafter referred to as inventory) that the original price on the window higher accounting reviews pure therapy can be performed and make sure the following conditions:-have bills, legal documents according to the regulations of the Ministry of finance or the other evidence demonstrating the price of capital inventory.
-Is the commodity supplies in the ownership of the business inventory at the time of establishment of the financial reporting.
Cases of pure value materials can perform is lower than the original price but the price of selling products and services that are produced from this material being extracted not off set the reserve price reduced raw material inventory.
2. backup methods: extract the backup set Level calculated according to the following formula: backup Level commodity supplies discount = the amount of the actual commodity materials inventory at the time of establishment of the financial reporting x original price inventory according to accounting-net worth can perform inventory inventory consists of original price : purchase cost, processing costs and other direct costs incurred to get the inventory in the location and current status as defined in accounting standards no. 02-inventory attached to decision No 149/2001/QD-BTC dated 31/12/2001 of the Minister of finance.
Net worth can perform inventory (anticipated value recovery) is the selling price (estimated) of inventory minus (-) cost of finished products and consumption costs (estimated).
Set the level of discount backup inventory is calculated for each type of inventory price-reduction and the entire sum to the pallet. Lists are based on the price of capital goods accounting for sale (whole price goods consumed in the period) of the business.
Private service provider, the establishment of discount rooms inventory by each service type has a separate price.
3. Handle reserves: at the time of the establishment of the reserve if the original price of the inventory is higher than net worth can perform inventory must then cite established discount backup inventory according to the provisions of point 1, point 2 of this Article.
-If the backup number to extract discounts established by the balance reserves off the inventory, then the business is not established to extract reserves off inventory;
-If the number of discount backup to extract higher up the balance reserves off the inventory, then the business is more capital goods on price spreads in part sold in the States.
-If the backup is set lower than the extract reserves off balance inventory, then business must complete the import portion of the difference and record the capital discount wholesale.
4. cancellation processing for materials, goods set aside reserve: a) Row backlog due to the expired use, product, disease, damage, due to no longer use value as: pharmaceuticals, food, medical supplies, animal breeds, pet, supplies and other cargo to cancel then processed as follows : the Business Council of the handle property to appraise the property abandoned. Report on the evaluation to which details the name, number, value of the goods to cancel, cancelled, causes the recovery value was due to the liquidation sale, the value of actual damage.
The extent of the actual loss of each type of order backlog is not recovered is the difference between the accounting book value minus the value recovered due to liquidation (due to the compensatory damage, due to the sale of liquidated merchandise).
b) competent to handle: the Board (for the business for the Board) or Board member (for Enterprise Board member); The Director General (or Director) for business without the Board, Board Member; business owners based on the minutes of the Assembly process, the evidence relating to the cargo backlog to decide to cancel the processing of materials, goods aforesaid; the decision to handle the responsibility of those related to the number of materials, goods and responsible his decision before the owner and before the law.
c) handles accounting: the value of the actual loss backlog irrecoverable has decided to handle the cancellation, after offset by discount backup sources of inventory, the disparity is lack of accounting on the price in the sales of business capital.
Article 5. Prevention of losses in financial investments.
1. for stock investments: a) the audience: are there enough stock of the following conditions:-Is the stock type be investment business in accordance with the provisions of the law.

-The freedom to buy and sell on the market that at the time of inventory, financial reporting have reduced price compared to the market prices are on the accounting ledger.
These securities are not allowed to buy and sell freely on the market as the stock transfer is restricted according to the provisions of the law; stock funds shall not be set off reserve.
Registered institutions in securities business operations such as securities companies, fund management companies are established and operate in accordance with securities laws, establish reserve stock discounts made according to the regulations.
b) backup methods: extract Levels established discount backup stock investment is calculated by the following formula: fallback discount Level securities investment = the number of securities was the rebate at the time of establishment of the financial reporting of stock price on accounting-ledger Reviews the actual stock market-listed securities : the actual stock prices on the market are calculated according to the actual price on the Hanoi stock exchange (HNX) is the average transaction price in the day quoting established backup; Transaction in Ho Chi Minh City stock exchange (HOSE) is the closing price quoted at the establishment.
-For other types of securities not listed on the stock market, the actual stock prices on the market are defined as follows: + for registered companies traded on the trading market of the unlisted public company (UPCom) then the actual stock price on the market is defined as the average trading price on the system at the backup set.   
+ For unregistered companies dealing in the market trading public company then reviews actual stock on the market is defined as the average price on the basis of the price of the transaction is provided by three (3) minimum securities companies at the time of the backup set.
The case could not determine the market value of the securities business is taken up off reserve stock.
-With regard to the securities transaction is cancelled, stopped transactions from the date the transaction Friday onwards is value in establishing the accounting balance sheet date.
Business must establish a separate backup for each type of investment securities, has discounted fluctuations at the time of establishment of the financial statements and are aggregated into detailed contingency stock discount investing, accounting as a base on the financial costs of the business.
c) handle reserves: At the time of the establishment of the reserve if the stock investment by enterprises was a discount versus the prices are above the ledger accounting to extract backup set under the regulation in detail b point 1 of this article;
If the backup number to extract created by backup account balances, then the business is not quoting established reserves;
If the backup number to extract a higher setting the balance account, then extract the business added to the financial costs of the enterprise difference.
If the backup number to extract lower setting the balance account, the business must complete the import portion of the difference recorded falling financial costs.
2. long-term financial investments: a) object: is the account which enterprises are investing in other economic organization was established under the provisions of the law as State companies, limited liability companies, joint stock companies, partnerships ... and other long-term investments to extract backup setting if organizations that business investment are being the hole (except the hole under the plan have been identified in the business plan before investing).
b) backup methods: extract the maximum Level for each financial investments with the capital invested and calculated according to the following formula: backup Levels of losses in financial investments = capital fact of parties in economic organizations-food equity x investment of the enterprise's total capital fact of parties in economic organizations


Of which:-capital practice of parties in economic organization is determined on the balance sheet accounting of economic organizations years ago time of extract formed reserve (code 411 and 412 accounting balance sheet-attached to the decision No. 15/2006/QD-BTC dated 20/3/2006 of the Minister of Finance).
-Real equity have been identified in the balance sheet accounting of economic organizations years ago time of extract formed reserve (code 410 accounting balance sheet-attached to the decision No. 15/2006/QD-BTC dated 20/3/2006 of the Minister of Finance).
Pursuant to established the reserve when the actual capital of the party at large economic organization than actual equity at the time of the financial report of economic organization.
Business must establish a separate backup for each financial investments are losses and are aggregated into detailed contingency financial investment losses. Lists are based on accounting for financial costs of the business.
c) handle reserves: At the time of the establishment of the reserve if the account is invested into economic organization losses due to loss of economic organization must then cite the loss of backup set financial investment under the regulation in detail b point 2 this;
If a backup of the financial investment losses are quoted in the balance account, the business does not have to cite established reserves in the financial investment losses;
If the backup number to extract a higher setting the balance account, then extract the business added to the financial costs of the enterprise difference.
If the backup number to extract lower setting the balance account, the business must complete the import portion of the difference recorded falling financial costs.
Article 6. Debt prevention provision.
1. eligibility: is the debt provision ensuring the following conditions:-the original vouchers must have debts, have reconciled debt's confirmation of the amount owed, including: the economic contracts, contract debt, a liquidated debt commitments, contracts, public debt and other vouchers.
The account is not sufficient to base identified as debt under this provision must be treated as one account losses.
-Have enough base is debt provision: + debt overdue payment record on economic contracts, the contract debt or other debt commitments.
+ Debt payment deadline yet but economic organizations (companies, private enterprises, cooperatives, credit institutions) were bankruptcies or dissolution procedures; the missing fugitive, debt, legal prosecution, detention, trial, execution or died.
2. backup methods: businesses are estimated probable losses or years of overdue debts and proceed to establish backup for each debt provision, attached the evidence proving the debt provision. Of which:-for overdue debt payments, extract levels of preventive setting as follows: + 30% of the value for the overdue debt from over 6 months to under 1 year.
+ 50% of the value for overdue debts from 1 year to under 2 years.
+ 70% of the value for the overdue debt from 2 years to under 3 years.
+ 100% of the value for debt from 3 years upwards.
-For debt payment due yet but economic organizations were bankruptcies or dissolution procedures; the missing fugitive, debt, legal prosecution, detention, trial or execution or died ... then the expected level of business losses not recovered to extract backup set.
-After the backup set for each debt provision, the entire general business account fallback debts on detailed to do based on the cost accounting of enterprise management.
3. Handle reserves:-When the debts identified provision, business must extract the backup setting according to the provisions in point 2 of this Article; If the backup is extracted using the reserve balance debt difficult, then the business is not quoted;
-If the contingency is set higher than the quoted reserves balance debt provision, then the business to extract more on enterprise management cost variances;
-If the backup is set lower than the extract reserves balance debt provision, the business must complete the import portion of the difference credited cost reduction of enterprise management.
4. Handle the financial debts are not likely to recover: a) the debt does not have the ability to recover the debts included the following:-for economic organizations: + owe has dissolved, bankrupt: the decision of the Court declaring bankruptcy bankruptcy law business or decision of the authority on dissolution for business debt automatic dissolution case, notice of the unit or confirm your organization decided to set up the unit, the organization.
+ Owe retired and cannot afford to pay: validation of the Agency decided to establish business or business organization of the enterprises, the organizations have withdrawn with no ability to pay.
-For the individual must have one of the following documents: + Paper vouchers (copy) or certified by the local Government to the creditor is dead but no inheritance to pay the debt.
+ Paper certified by the local Government to the creditor is alive or was missing but do not have the ability to repay.
+ Indictment or validation of legal authority for the debt has fled or is being prosecuted, is execution or certification by the local authorities about the owe or heirs have no ability to pay.
b) financial processing: the actual loss of each debt recovered is the difference between the debt on the window and the amount was recovered (due to the compensatory damages, caused by the broadcast unit's property business debt or the debt, because the property is divided according to the decision of the Court or other competent bodies ...).

The value of actual losses of the debt does not have the ability to recover, businesses use debt power provision, financial reserve Fund (if any) to offset the difference in part, lack of accounting on the cost management of enterprises.
The debt after the decision was handled, businesses still need to individually track on accounting books and are reflected off balance sheet accounting within a period of a minimum of 10 years, a maximum of 15 years from the date of implementation of the handle and continue measures to recover the debt. If recovered, the recovery amount owed after deducting the expenses related to the recovery of the debt, accounting business on other income.
c) When handling the debt does not have the ability to recover the business must file the following:-the minutes of the Council handled the business's debt. Which specify the value of each debt, the value of the debt has been recovered, the actual damage value (after deducting amounts recovered).
-Table of details of the debt has been cleared to do accounting, report on base against debt creditors and debt confirming or A liquidation of economic contract or confirmed by the Agency decided to establish the business, organization, or other objective documents prove to be of outstanding debt and the related papers.
-Accounting books, vouchers, documents proving debt not yet recovered, to handle corporate debt are debt accounting on accounting of the business.
d) authority to handle the debt: the Board (for the business for the Board) or Board member (for Enterprise Board member); General Manager, Director (for business without the Board or Board members) or business owners based on the minutes of the Assembly process, the evidence concerning the debt to decide to handle the debts not recovered and is responsible for his decisions before the law at the same time implementing measures to handle the responsibility according to the current mode.
Article 7. Preventive maintenance products, commodities, construction and installation works.
1. Object and set conditions: is the product, goods, construction works undertaken by enterprises and sold or handed in was in warranty business contract or other regulation documents.
2. backup methods: estimated business losses of extract of the product warranty, goods, construction works were consumed during the year and proceeded to set up redundancy for each type of product, goods, construction works have warranty. The total level of extract formed reserve warranty of the products, goods, construction works according to the regulations has been committed with the customers but must not exceed 5% of the total revenue for the consumption of the products, goods and not more than 5% on the total value of the work for the construction and installation works.
After the backup set for each type of product, goods, construction works of the entire general business account fallback on the pallet. Detailed accounting: to base-backup for product warranty, the merchandise when quoting up to cost of sales accounting.
-For preventive maintenance when construction works established accounting into general production costs.
3. Handle reserves: at the time of the establishment of the reserve if the actual warranty is greater than the number set aside reserve then the variances to the cost accounting is lack of sales. If the warranty reserve number must be quoted in the balance of the reserve account, the business does not have to cite established reserves of warranty;
If the warranty reserve number to extract higher up the balance of the reserve account of warranty, then extract the business added to the cost of sales for product warranty reserve, goods or general production costs for preventive maintenance of construction works, the business part of this disparity.
If the backup is set lower than the extract of the balance of the reserve clause, then the complete business enter the difference:-to guarantee backup products, commodities recorded lower the cost of sales.
-Preventive maintenance for construction works in the accounting of other income.
Expiry of warranty, if not the genus warranted or not used up reserve amount set aside, the remaining balance is entered according to the above principle.
Part III IMPLEMENTATION article 8. This circular effect after 45 days from the date of signing and the extract of the reserves of the enterprise from 2009, replacing circular No. 13/2006/TT-BTC dated 27/2/2006 of the Ministry of finance guidelines cite and use the reserves off inventory losses in financial investments, debt and maintenance products, goods, construction works in business and other text provisions on quoting and using reserves left to the provisions of this circular.
2. During the implementation process if there are obstacles to timely reflect the recommendation of the Ministry of finance to study the additional amendments./.