Account 351 – External receivables

1. Accounting principles:

a) This account shall be designed for reflecting monetary amounts that other entities outside of microfinance institutions owe to them;

b) Microfinance institutions must keep a detailed record of each debtor and debt amount;

c) In order to post subaccounts on this account, accountants must classify debts likely to be repaid by due dates, doubtful debts or bad debts that can hardly be recovered as sufficient grounds for determining the amounts set aside for provisions against bad debts in accordance with laws, or taking measures to treat bad debts;

2. This account may have balances on the Credit side. Balances on the Credit side reflect the sums received in advance or the sums already collected which are greater than the sums receivable (in special cases and in detailed entries of specific receivables).

3. Account 351 can be subdivided into tier-2 accounts, including:

Account 3511- Receivables from provision of financial consulting services

This account is used for reflecting amounts that must be collected from providing financial counseling services for customers in accordance with laws.

Debit side: – Amounts receivable from provision of financial counseling services.

Credit side: – Amounts receivable from provision of financial counseling services that have already been collected.

Debit balance: – This section reflects amounts receivable from provision of financial consulting services that are currently available at a microfinance institution.

Detailed accounting: Accountants can use subaccounts relevant to specific customers.

Account 3512- Receivables from provision of authorized collection, payment and money transfer services

This account is used for reflecting amounts that must be collected from providing authorized collection, payment and money transfer services for customers in accordance with laws.

Debit side: – Amounts receivable from providing authorized collection, payment and money transfer.

Credit side: – Amounts receivable from providing authorized collection, payment and money transfer that have already been collected.

Debit balance: – This section reflects amounts receivable from provision of authorized collection, payment and money transfer services that are currently available at a microfinance institution.

Detailed accounting: Accountants can use subaccounts relevant to specific customers.

Account 3513- Receivables from insurance agent services

This account is used for reflecting amounts receivable from provision of insurance agent services in accordance with laws.

Debit side: – Amounts receivable from acting as insurance agents.

Credit side: – Amounts receivable from acting as insurance agents that have already been collected.

Debit balance: – This section reflects amounts receivable from insurance agent services that are currently available at a microfinance institution.

Detailed accounting: Accountants can use subaccounts relevant to specific customers.

Article 21. Account 353- VAT deductibles

1. Accounting principles:

a) This account shall be used for reflecting input VAT deductibles, VAT amounts already deducted and VAT amounts to be deducted at microfinance institutions;

b) Accountants shall be required to keep a separate record of deductible and non-deductible input VAT amounts. In case where it is impossible to do so, the input VAT amount shall be recorded in the Account 353. At the end of an accounting period, accountants must determine deductible or non-deductible input VAT amounts in accordance with laws on VAT;

c) The non-deductible input VAT shall be charged to value of purchased assets or expenses in specific cases;

d) The determination of the deductible input VAT amounts, preparation of tax returns, tax finalization and payment must conform to laws on VAT.

2. Structure and entries of the account 353:

Debit side: – Deductible input VAT amounts.

Credit side: – Input VAT already deducted.

– Carry-forward of non-deductible input VAT.

– Input VAT on goods that are purchased but returned or discounted.

– Input VAT refunds.

Debit balance: – This section reflects the remaining amount of input VAT to be deducted, input VAT amounts that are refunded, but not yet paid by the State Budget to microfinance institutions.

Detailed accounting: Accountants may use one subaccount for this account.