Account 417 - Fund for support of arrangement of enterprises

1. Accounting principles

a) This account is used to record the appropriation and use of " fund for support of arrangement of enterprises " in one member limited liability companies of which 100% charter capital is held by the State as prescribed by law.
b) Management and use of funds; Report, settlement; Storage of records and documents must comply with the provisions of current law. Fund management unit must open a separate account to monitor revenues and expenses of the Fund; Open accounting books to account clearly, fully and promptly incurred transactions.
c) Revenues of the Fund may include:
- Revenues from equitization; Revenues from forms of reorganization and transformation of enterprises;
- Supportive budget under decision of the competent authority;
- Interest on deposits in banks of the Fund;
- Penalty for late payment;
- Other revenues under provisions of the law.
d) Expenditures of Fund shall include :
- Support for enterprises in reorganization and transformation of ownership and settlement of policies for redundant workers and handling of financial matters in accordance with law;
- Supplement charter capital for units in accordance with the law;
- Transfer, investments in enterprises under the decision of the competent authority;
- Other expenditures under provisions of the law.

2. Structure and content of account 417 - Fund for support of arrangement of enterprises
Debit side: Other expenditures from Fund under provisions of the law.
Credit side: Revenues of the Fund Credit balance: The existing balance of fund for support of arrangement of enterprises at the end of period.

3. Method of accounting for several major transactions
a) Accounting for revenues for equitization:
Dr 1385 - receivables for equitization Cr 417 - Fund for support of arrangement of enterprises.
b) Accounting for recording of Fund's revenues under decision of the competent authority, record:
Dr 111, 112, 138
Cr 417 - Fund for support of arrangement of enterprises.
c) Based on the settlement report on expenditures on implementation of policies for employees in the equitized enterprise and equitization cost made by the equitized enterprise, accountants in parent Companies, Corporation, state-owned general companies record the difference between revenue and expenditure of equitization of enterprises and record sum paid for employees, cost of equitization, record:
Dr 111, 112
Dr 417 - Fund for support of arrangement of enterprises.
Cr 1385 - receivables for equitization
d) When transferring Fund or spending money from Fund under decision of competent agencies, record :
Dr 417 - Fund for support of arrangement of enterprises.
Cr 111, 112.
dd) Upon approval of the Prime Minister on supplementing charter capital for Groups, state-owned general companies, parent companies, accountants record:
Dr 417 - Fund for support of arrangement of enterprises.
Cr 411 - owner‘s capital

Source: Circular 200