Official letter No 10385/BTC-QLKT dated Sept 10th 2021 of MOF responded to VACPA regarding to concerns on bookkeeping and presentation, notes on financial statement regarding to expenses related to manufacturing division incurred due to Covid-19 pandemic affection .
VACPA has sent to MOF concerned issues as follow:
“Some corporation is Audit firm’s client ( apply accounting regime based on the Circular 200/TT-BTC dated Dec 11th 2014) in the area applying social distancing (such as Ho Chi Minh City, Binh Duong province, Dong Nai Porvince,,.) has temporarily stop manufacturing activities due to many F0, F1 cases identified. Temporarily stop operation due to Covid-19 pandemic affection lead the corporation incurred many expenses related to direct manufacturing division such as: FA amortization expense and other expenses incurred in temporarily stop manufacturing time, salary expense and accrual salary amount, actually Covid-19 testing expense, protection gear expense, mask, disinfectants, costs of supplies for employees to be isolated at factories, costs of vaccination against Covid-19 (if any)… Since this is a new issue, currently these businesses are facing problems in accounting for the above-mentioned expenses into the account and present, notes in the financial statements in accordance with the accounting standards and regimes of enterprises according to current regulations.”
For those concerns above, according to official letter No 10385/BTC-QLKT dated Sept 10th 2021, MOF has guidance as follow:
- For preparation and presentation financial statement purpose: The corporation records expense related to direct manufacturing division in the temporarily stop manufacturing time due to Covid-19 pandemic into account 811- Other expense. The corporation has to note for this recording on the Notes of financial statement of the corporation
- The determination tax liability for expenses related to direct manufacturing division incurred due to Covid-19 pandemic affection comply on Tax law