Account 357 - Price stabilization fund

1.Accounting Principles

a) This account is used to record changes and value of price stabilization fund value at the time of the report of the enterprises which are entitled to set up the price stabilization fund from the cost of production and business in accordance with law. Depending on the industry, business sector, enterprises are entitled to actively add to the name of this Fund in accordance with their industry, business areas, such as the petrol price stabilization fund.

b) Enterprises must set up, use and settle the price stabilization fund in accordance with the law. Enterprises only use this account if required by law to set up price stabilization fund from the cost of production, turnovers in period.

c) Price stabilization fund when set up is included in cost price of goods sold, when used for the purpose of stabilizing prices, enterprises record a decrease in cost price of goods sold.

2.Structure and contents of account 357 - Price stabilization fund

Debit side: Used price stabilization fund

Credit side: Price stabilization fund set up from production and business costs in the period.

Credit balance: The current price stabilization fund of enterprises at the end of the period.

3.Methods of accounting for price stabilization Fund

- When setting up Price stabilization fund, record:

632 - Cost price of goods sold

Cr 357- Price stabilization fund

- When using price stabilization Fund, record:

Dr 357- Price stabilization fund

Cr 632 - Cost price of goods sold

Source: Circular 200