Hello Lawnet. I have a question. What are regulations on Account 451 – Payables outside microfinance institutions in Vietnam? Thank you!
Pursuant to Article 31 of the Circular 05/2019/TT-BTC (takes effect from 01/04/2019) stipulating regulations on Account 451 – Payables outside microfinance institutions in Vietnam as follows:
1. Accounting principles
a. This account shall be designed for reflecting monetary amounts that microfinance institutions owe to other entities outside of microfinance institutions. b. Details of specific amounts that microfinance institutions have to pay sellers, providers and bidders winning capital construction contracts shall need to be recorded. In addition to details about amounts payable, this account must reflect the amounts paid in advance to sellers, providers and bidders winning capital construction contracts for goods and services that have not yet been rendered.
c. This account shall not be constituted by entries recording purchases of tools, instruments and services from the outside, etc. that are paid immediately (e.g. in cash, cheque or by wire transfer).
d. Detailed subaccounts shall be used for recording specific entities or persons involved in payment relationships.
2. Components and contents of this account
Debit side:
Amounts already paid to providers.
Credit side:
Amounts payable.
Balances on the Credit side:
Reflecting the remaining amounts to be paid at end of an accounting period.
This account may have balances on the Debit side. Balances on the Debit side shall reflect the amounts at end of an accounting period.
Above are regulations on Account 451 – Payables outside microfinance institutions in Vietnam.
Best regards!