Account 130- Deposits made at credit institutions

 

1. Accounting principles:

a) This Account shall be used for recording a microfinance institution’s deposits made at domestic credit institutions;

b) Bases for recording entries on this account include the notice of Credit, Debit or the account statement issued by a credit institution, enclosing original vouchers;

c) Upon receipt of vouchers from credit institutions, the accountant must check whether they are matched to attached original ones. In case where there is any difference between data available in the accounting book of a microfinance institution or data available in original vouchers and those available on vouchers of a credit institution, the accountant must inform the credit institution to double-check and verify these data, and take any possible action in a timely manner. At end of the reporting month, if causes of such difference have not been identified yet, the accountant must keep bookkeeping entries according to data specified in the note or account statement issued by a credit institution. The differential amount is recorded on the Debit side of the account 3629- “Other receivables” (if the deposit amount defined in the accountant’s data is greater than in a credit institution’s data), or on the Credit side of the account 4629- “Other payables” (if the deposit amount defined in the accountant’s data is less than in a credit institution’s data). In the following month, the accountant must carry out further verification and assessment to seek causes of such difference to make any necessary adjustment in book data.

 

2. Account 130 can be subdivided into tier-2 and tier-3 subaccounts, including:

 

Account 1301- Demand deposits made at commercial banks

This account is used for recording a microfinance institution’s Vietnamese dong or foreign currency demand deposits made at other credit institutions.

Account 13011- Vietnamese dong demand deposits made at commercial banks

This account is used for recording a microfinance institution’s Vietnamese dong demand deposits made at other commercial banks.

Debit side: – Amounts deposited by a microfinance institution at other commercial banks.

Credit side: – Amounts that a microfinance institution withdraws.

Debit balance: – – Amounts deposited by a microfinance institution at other commercial banks.

Detailed accounting: Accountant can use subaccounts for specific receiving commercial banks.

Account 13012 – Foreign currency demand deposits made at commercial banks

This account is used for recording a microfinance institution’s foreign currency demand deposits made at commercial banks.

Debit side: – Value of foreign currency deposited by a microfinance institution at commercial banks.

Difference in which foreign exchange rate is increased owing to revaluation of foreign currency balance at the reporting date.

Credit side: – Value of foreign currency that a microfinance institution has withdrawn.

– Exchange difference arising owing to revaluation of foreign currency balance at the reporting date.

Debit balance: – This section reflects value of foreign currency that a microfinance institution is depositing at commercial banks.

Detailed accounting: Accountant can use subaccounts for specific receiving commercial banks.

 

Article 8. Account 201- Lending

 

1. Accounting principles:

a) This account shall be used for reflecting funds that a microfinance institution lends to borrowing customers;

b) This account does not reflect loans derived from trust funds accounted for on the account 441 “Trust funds used for lending purposes”;

c) Microfinance institutions shall have to keep a detailed journal of loans specific to lending contracts or agreements, terms, maturity dates, interest rates, borrowers and repaid amounts, etc.;

d) Microfinance institutions must comply with applicable regulations set out in laws for microfinance institutions on lending operations, including those regulations on qualified borrowers, lending term and property put up as collateral for loans, etc.;

dd) Microfinance institutions classify debts on loans granted to borrowing customers and account for loans classified into debt groups in accordance with existing regulations on debt classification applied to microfinance institutions.

2. Account 201 can be subdivided into tier-2 subaccounts, including:

Account 2011- Short-term loans granted to microfinance customers

This account shall be used for reflecting Vietnamese dong funds that a microfinance institution lends to borrowing customers during a short term.

Account 2011 can be subdivided into tier-3 subaccounts, including:

Account 20111- Pass/standard loans

Account 20112- Watch/special mention loans

Account 20113- Substandard loans

Account 20114- Doubtful loans

Account 20115- Loss loans

Structure and entries of tier-3 subaccounts to the account 2011:

Debit side: Amounts lent to borrowing customers.

– Amounts moved from relevant accounts.

Credit side: – Amounts of borrowing customer’s debt repayments.

– Amounts moved to relevant accounts.

Debit balance: – This section reflects the amounts currently owed to a microfinance institution.

Detailed accounting: Accountant can use subaccounts relevant to specific borrowing customers.

Account 2012- Medium-term loans granted to microfinance customers

This account shall be used for reflecting Vietnamese dong funds that a microfinance institution lends to borrowing customers during a medium term.

Account 2012 can be subdivided into tier-3 accounts, including:

Account 20121- Pass/standard loans

Account 20122- Watch/special mention loans

Account 20123- Substandard loans

Account 20124- Doubtful loans

Account 20125- Loss loans

Structure and entries of the account 2012 are the same as the account 2011.

Account 2013- Long-term loans granted to microfinance customers

This account shall be used for reflecting Vietnamese dong funds that a microfinance institution lends to borrowing customers during a long term.

Account 2013 can be subdivided into tier-3 accounts, including:

Account 20131- Pass/standard loans

Account 20132- Watch/special mention loans

Account 20133- Substandard loans

Account 20134- Doubtful loans

Account 20135- Loss loans

Structure and entries of the account 2013 are the same as the account 2011.

Account 2014- Short-term loans granted to other borrowing customers

This account shall be used for reflecting Vietnamese dong funds that a microfinance institution lends to other borrowing customers during a short term.

Account 2014 can be subdivided into tier-3 accounts, including:

Account 20141- Pass/standard loans

Account 20142- Watch/special mention loans

Account 20143- Substandard loans

Account 20144- Doubtful loans

Account 20145- Loss loans

Structure and entries of the account 2014 are the same as the account 2011.

Account 2015- Medium-term loans granted to other borrowing customers

This account shall be used for reflecting Vietnamese dong funds that a microfinance institution lends to other borrowing customers during a medium term.

Account 2015 can be subdivided into tier-3 accounts, including:

Account 20151- Pass/standard loans

Account 20152- Watch/special mention loans

Account 20153- Substandard loans

Account 20154- Doubtful loans

Account 20155- Loss loans

Structure and entries of the account 2015 are the same as the account 2011.

Account 2016- Long-term loans granted to other borrowing customers

This account shall be used for reflecting Vietnamese dong funds that a microfinance institution lends to other borrowing customers during a long term.

Account 2016 can be subdivided into tier-3 accounts, including:

Account 20161- Pass/standard loans

Account 20162- Watch/special mention loans

Account 20163- Substandard loans

Account 20164- Doubtful loans

Account 20165- Loss loans

Structure and entries of the account 2016 are the same as the account 2011.