What are principles and components of Account 441 – Entrusted loans of microfinance institutions in Vietnam?

Pursuant to Article 30 of the Circular 05/2019/TT-BTC (takes effect from 01/04/2019) stipulating principles and components of Account 441 – Entrusted loans of microfinance institutions in Vietnam as follows:

1. Accounting principles

a. This account shall be designed for reflecting funds that are entrusted as loans to microfinance institutions by the Government, domestic and overseas organizations and persons for specified purposes, and that these microfinance institutions are charged with repay upon maturity.

b. Microfinance institutions shall have to use subaccounts to record types of funds lent by specific entrustors.

2. Components and contents of this account

Debit side:

- Lending fund amounts repaid to entrustors.

- Negative difference that may occur owing to revaluation of the foreign currency balance at end of an accounting period.

Credit side:

- Amounts entrusted by partners to microfinance institutions.

- Positive difference that may occur owing to revaluation of the foreign currency balance at end of an accounting period.

Balances on the Credit side:

Total amount of loans entrusted from microfinance institution’s partners at the end of an accounting period.

Above are principles and components of Account 441 – Entrusted loans of microfinance institutions in Vietnam.

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