Legal document newsletter week 10/05/2024
GUIDANCE ON ADMINISTRATIVE AND CAREER ACCOUNTING REGIME
On April 17, 2024, the Ministry of Finance issued Circular No. 24/2024/TT-BTC guiding the administrative and public accounting regime. Circular No. 24/2024/TT-BTC takes effect from January 1, 2025, applicable from fiscal year 2025 (replacing Circular No. 107/2017/TT-BTC dated October 10, 2017 of the Ministry Finance on guidance on administrative and professional accounting regimes and a number of related circulars) and has some notable contents as follows:
1. Subjects of application
- State agencies (except People’s Committees at commune, ward and town levels that use commune-level budget); –
- Public service units (except for units that self-guarantee regular and investment expenditures and are allowed by competent authorities to apply corporate accounting regime);
- Social and political organizations; Political organizations; The Vietnam Fatherland Front and other agencies, units and organizations are state budget users;
- Agencies, units and organizations implementing financial mechanisms of public service units;
- Organizations, agencies, and units assigned to manage and record infrastructure assets in accounting books according to the law on management and use of public assets. In particular, enterprises assigned to manage infrastructure assets excluding state capital at the enterprise shall apply off-balance sheet accounts specified in this Circular to record in accounting books; In case an enterprise is assigned to manage infrastructure assets to calculate the state capital component at the enterprise, it shall be accounted for according to the provisions of the enterprise accounting regime.
- Other organizations, agencies, and units that are not state budget users can apply this accounting regime in accordance with their activities.
2. Add account 229 – Provision for asset losses and instructions on accounting principles and accounting methods for provisions for asset losses (including: Provision for devaluation of inventory; Provision for bad debts ; Investment loss provisions for units allowed to make provisions according to financial mechanisms.
3. Supplementing accounting guidance on forms of using assets to contribute capital for investment, joint ventures, and partnerships