1. Rules for accounting

This account is used to record debt receivables other than account 131, 136 and payment of debts, containing:

- Value of shortage of assets detected, but the reasons are not uncovered awaiting resolution;

- Material compensation for losses or damage to materials, goods or capital, etc caused by individuals or groups (inside or outside enterprise);

- Non-monetary assets borrowed by other entities (if lending in money, the loan shall be recorded to account 1283);

- Expenditures on public activities, projects, investment in capital investment, production or business shall be recovered because they are not approved by competent agency;

- Expenditures on behalf of a third party required recovery, such as banking fees, customs inspection fees, delivery expenses, material handling expenses, taxes, etc

- Receivables arising from equitization of state-owned enterprises, such as: equitization costs, allowance for unemployed, support for re-training provided for employees in the equalized enterprises, etc.

- Loan interests, dividends, profits receivables from financial investment;

- Other receivables.

2. Structure and contents of account 138 – Other receivables

Debit:

- Value of assets in shortage awaiting resolution;

- Receivables from individuals or groups (inside or outside enterprise) for assets in shortage whose reasons are uncovered and there is a resolution report,

- Receivables from equitization of state-owned enterprises;

- Loan interests, deposit interests, dividends or profits receivables from financial investment;

- Expenditures on behalf of a third party subject to recovery, debts receivables;

- Revaluation of receivables in foreign currencies (if the foreign currency rates rise against VND).

Credit:

- Transfer value of assets in shortage to relevant accounts according to resolution decision;

- Transfer receivables to equitization of state-owned enterprises;

- Collected amounts of other debts receivables.

- Revaluation of receivables in foreign currencies (if the foreign currency rates fall against VND).

Debit balance:

Non-collected amounts of other debts receivables.

This account may have balance in Credit side. The balance of Credit side records the positive difference between collected amounts and amounts receivables (in details).

Account 138 – Other receivables, comprises 3 sub-accounts:

- Account 1381 – Assets in shortage awaiting resolution: recording value of assets in shortage awaiting resolution.

In principle, whenever asset deficiency is detected, the reasons and the person in charge must be uncovered. The asset deficiency is only recorded to account 1381 if reasons for deficiency, losses or damage of assets in shortage awaiting resolution are not uncovered. In case the reasons for asset deficiency are uncovered and they are settled within a tax period, they shall be recorded to equivalent accounts, not recorded to account 1381.

- Account 1385 – Equitization receivables: recording equitization receivables which the enterprise spends, such as: equitization costs, unemployment allowances, support for re-training of employees in the equitized enterprises, etc.

- Account 1388 – Other receivables: recording receivables of the enterprise other than amounts receivables recorded to accounts 131, 133, 136 and 1381, 1385, such as: dividends, profits or interests receivables; compensation receivables due to losses of money or assets; etc.

3. Accounting methods for several major transactions:

3.1. If the deficiency of tangible fixed assets for business are detected without reasons and pending settlement, the following accounts shall be recorded:

Dr 138 - Other receivables (1381) (residual value of fixed assets)

Dr 214 - Depreciation of fixed assets (depreciation value)

Cr 211 - Tangible fixed assets (cost prices).

3.2. If the deficiency of tangible fixed assets for public, projects or welfare are detected without reasons and pending settlement, the decrease in fixed assets shall be recorded as follows:

Dr 214 - Depreciation of fixed assets (depreciation value)

Dr 466 – Funding sources forming fixed assets (residual value) (fixed assets used for public or projects)

Dr 3533 – Welfare funds forming fixed assets (residual value) (fixed assets used for welfare)

Cr 211 – Tangible fixed assets (cost prices).

And the residual value of assets in shortage awaiting resolution shall be recorded as follows:

Dr 138 - Other receivables (1381)

Cr 353 - Welfare fund (3532)

Cr 338 – Others payable (fixed assets for public or projects).

3.3. When the deficiency of cash balance, materials, goods, etc is detected:

a) If the reasons for deficiency are not uncovered and pending settlement, the following accounts shall be recorded:

Dr 138 - Other receivables (1381)

Cr 111, 152, 153, 155, 156.

b) If there is a written settlement of asset deficiency issued by the competent agency, the following accounts shall be recorded:

Dr 111 – Cash (individual or organization paying compensation)

Dr 1388 – Others receivables (individual or organization paying compensation)

Dr 334 – Amounts payable to employees (compensation offsetting against salaries)

Dr 632 – Costs of goods sold (value of depreciation of inventory after offsetting against compensation according to the written settlement)

Dr 811 - Other receivables (residual value of deficient fixed assets shall be accounted for losses of the enterprise)

Cr 1381 – Assets in shortage awaiting resolution.

c) If the reasons and persons in charge of asset deficiency are uncovered, the following accounts shall be recorded according to the reasons or persons in charge:

Dr 1388 – Others receivables (1388 – Others receivables) (amounts of compensation)

Dr 334 – Amounts payable to employees (compensation offsetting against salaries)

Dr 632 – Costs of goods sold (value of depreciation of inventory after offsetting against compensation according to the written settlement)

Cr 621 – Direct material costs

Cr 627 - Factory overhead

Cr 152, 153, 155, 156.

Cr 111, 112.

3.4. Temporary asset borrowings shall be recorded as follows:

Dr 138 - Other receivables (1388)

Cr 152, 153, 155, 156, etc.

3.5. Expenditures on behalf of a third party subject to recovery, other receivables, and the following accounts shall be recorded as follows:

Dr 138 - Other receivables (1388)

Cr, relevant accounts.

3.6. Accounting for trust transactions in import-export carried out by the trustee:

a) When the trustee pays for the trustor, the following accounts shall be recorded:

Dr 138 - Other receivables (1388) (if the trustor has not paid advance)

Dr 3388 - Other receivables (offsetting against payment of trustor)

Cr 111, 112, etc.

b) When the export trustor offsets against expenses paid on behalf of a third party, the export trustee shall record as follows:

Dr 338 - Other receivables (3388)

Cr 138 - Other receivables (1388)

c) Transactions in export-import entrustment shall be accounted similarly to account 138 – Others receivables; VAT on imported goods, special excise duty, import duty carried out by the trustee and the trustor shall be accounted similarly to account 333 – Taxes and other payables to the State.

3.7. When determining loan interests, deposit interests, dividends or profits receivables, the following accounts shall be recorded:

Dr 111, 112, etc. (collected amounts)

Dr 138 - Other receivables (1388)

Cr 515 - Financial income.

3.8. When collecting other debt receivables, the following accounts shall be recorded:

Dr 111 - Cash

Dr 112 – Cash in bank

Cr 138 - Other receivables (1388)

3.9. When receiving decision on solutions for other debt receivables unable to recover:

Dr 111 – Cash (compensation paid by individuals or groups)

Dr 334 – Amounts payable to employees (compensation offsetting against salaries)

Dr 229 – Provision for asset losses (2293) (using provision for doubtful debts, if applicable)

Dr 642 - Administrative expenses (recording to costs)

Cr 138 - Other receivables (1388 – Other receivables).

3.10. When enterprises have sold other receivables (recording in balance sheet) to debt trading company, the following accounts shall be recorded:

Dr 111, 112, etc. (Collected amounts of sale of debts receivables)

Dr 229 – Provision for asset losses (2293) (using provision for bad debts for the differences)

Debit of relevant accounts (difference between original price of doubtful debt and collected amounts of sale of doubtful debt shall be covered by provision for doubtful debt)

Cr 138 - Other receivables (1388)

3.11. When incurring costs of equitization of state-owned enterprises, the following accounts shall be recorded:

Dr 1385- Equitization receivables (detail costs of equitization)

Cr 111, 112, 152, 331, etc.

3.12. When finishing equitization, the enterprise must send reports and make declaration of expenditures on equitization to agency deciding the equitization. Total costs of equitization, allowances for unemployment, re-training of employees, etc shall be deducted (-) from collected amounts of sale of state-owned stocks collected from equitization of state-owned enterprises, the following accounts shall be recorded:

Dr 3385 – Equitization payable (collected amounts of sale of state-owned stocks)

Cr 1385 – Equitization receivables.

3.13. With regard to expenditures on public activities, projects, investment in capital investment or business which is not approved by competent agency and subject to recovery, the following accounts shall be recorded:

Dr 138 - Other receivables

Cr 161, 241, 641, 642, etc.

3.14. When preparing financial statements, other outstanding debts receivables derived from foreign currencies shall apply actual exchange rates:

- If foreign currency rates rise against VND rates, the following accounts shall be recorded:

Dr 138 - Other receivables

Cr 413 – Exchange rate differences (4131).

- If foreign currency rates fall against VND rates, the following accounts shall be recorded:

Dr 413 – Exchange rate differences (4131)

Cr 138 - Other receivables

Source: Circular 200