On October 10, 2017, the Ministry of Finance issued Circular 107/2017/TT-BTC guiding the administrative accounting regime, replacing the accounting regime for administrative units issued under Decision 19/2006/QD-BTC and Circular 185/2010/TT-BTC.
This Circular provides accounting guidance applicable to: State agencies; public service units, except for public service units that self-insure regular and investment expenditures and are allowed to apply financial mechanisms like enterprises and apply the enterprise accounting regime when fully meeting the conditions under current regulations.
The Circular has inherited the advantages, overcome the shortcomings and limitations of the Administrative and Career Accounting Regime issued together with Decision No. 19/2006/QD-BTC (Decision 19) and Circular No. 185/2010/TT-BTC (Circular 185) dated November 15, 2010 of the Ministry of Finance. It details some Accounts, adds many new Accounts, and accounting methods, in order to fully reflect the economic and financial transactions that have arisen and have not been mentioned in previous regulations, and at the same time adds some types of books, financial statements, and settlement reports at accounting units.
Specifically:
1. Regarding accounting documents:
Administrative and public service units must uniformly use mandatory accounting voucher forms prescribed in this Circular and must not modify mandatory voucher forms.
In addition to the mandatory accounting documents prescribed in this Circular and other documents, administrative and public service units are allowed to design their own document templates to reflect arising economic transactions. Self-designed document templates must meet at least 7 contents prescribed in Article 16 of the Law on Accounting.
2. About accounting accounts
According to the provisions of Decision 19/2006/QD-BTC, the accounting system applied to administrative and public service units as prescribed by the Ministry of Finance includes 7 types, from Type 1 to Type 6 are accounts in the Balance Sheet and Type 0 are accounts outside the Balance Sheet.
According to the provisions of this Circular, the account system has many changes including 10 types, including:
From type 1 to type 9 accounts are double-entry (accounting for corresponding entries between accounts) used for financial accounting to reflect the situation: assets, liabilities, capital sources, revenue, expenses, surplus (deficit) of the unit in the accounting period.
Type 0 account is an off-balance sheet account, recorded in a single entry (no corresponding entries between accounts) used to account for state budget revenues and expenditures (abbreviated as budget accounting) for units funded by the state budget. If a financial economic transaction arises that is related to state budget revenues and expenditures, the accountant must simultaneously record financial accounting and budget accounting.
3. About accounting books
All financial and economic transactions arising in relation to the accounting unit must be recorded in the accounting books. At the same time, accounting books must be opened to separately track budget sources used from external aid and subsidies.
Each accounting unit uses only one accounting system for one accounting year, including general accounting books and detailed accounting books.
For accounting books, there are the following book forms:
– Journal: this is a type of book that records economic and financial transactions over time.
– Ledger: this is a book that records the occurrence of economic and financial transactions according to economic content. The data recorded in this book will clearly reflect the asset situation of the units as well as the funding sources and the funding usage situation of the administrative and career units.
– Detailed accounting book: This is the book that records the most detailed financial situation of administrative and career units, and these are not fully reflected in the General Ledger.
4. About the settlement report
Compared with Decision No. 19/2006/QD-BTC, the deadline for preparing financial statements according to Circular No. 107/2017/TT-BTC has differences, specifically:
According to Decision No. 19/2006/QD-BTC, the preparation of financial statements is as follows: Financial statements of administrative units and organizations using state budget funds are prepared at the end of the quarterly and annual accounting period. Financial statements of units and organizations not using state budget funds are prepared at the end of the annual accounting period; Accounting units that are divided, separated, merged, or terminated must prepare financial statements at the time of the decision to divide, separate, merge, or terminate operations.
For Circular No. 107/2017/TT-BTC, the deadline for preparing financial statements is at the end of the annual accounting period (December 31) according to the provisions of the Accounting Law.
In addition, the annual financial report of an administrative or public service unit must be submitted to the competent state agency or superior unit within 90 days from the end of the annual accounting period as prescribed by law.
For the state budget settlement report: The unit prepares the report according to the annual accounting period. The data for the annual state budget settlement report is the revenue and expenditure data of the budget year, calculated up to the end of the state budget settlement adjustment period (January 31 of the following year) according to the provisions of the law on the state budget. Report on the settlement of other sources of funding: The unit prepares the annual settlement report. The unit must prepare the settlement report at the end of the annual accounting period (after December 31). In cases where the law stipulates that reports must be prepared according to other accounting periods, in addition to the annual settlement report, the unit must also prepare a report according to that accounting period.
Excerpt from: taichinh.danang.gov.vn
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