AMENDMENTS TO CIRCULAR NO. 48/2019/TT-BTC GUIDING THE TREATMENT
On 7 April 2022, the Ministry of Finance issued Circular No. 24/2022/TT-BTC (Cir. 24) amending and supplementing a number of articles of Circular No. 48/2019/TT-BTC (Cir 48) dated 8 August 2019 of the Minister of Finance guiding the treatment of provisions for devaluation of inventories, losses on financial investments, doubtful debts and warranties for products, goods, services, construction works at enterprises.Accordingly, Cir. 24 amends and supplements Points a and b, Clause 1, Article 5 – Provision for losses on financial investments of Cir. 48, specifically as follows:
1. Amending the regulation that Government bonds, Government-guaranteed bonds and local government bonds are not subject to making provision for losses from investments in securities.
2. At the same time, the regulation on the level of provision for Government bonds, local government bonds and Government-guaranteed bonds shall be removed.
Note: The balance of the existing provision of Government bond, Government-guaranteed bond and municipal bond investment that has been appropriated before the effective date of this Circular 25 February 2022 (if any) shall be reversed and recorded as a decrease at the reporting date of the 2022 financial statements.This Circular takes effect from 25 May 2022.