Accounting, presenting, and disclosure of expenses related to the direct production unit arising from the impact of the Covid-19 pandemic
On 10 September 2021, the Ministry of Finance had issued Official Letter No. 10385/BTC-QLKT guiding on accounting, presenting, and disclosure in audited financial statement of expenses related to the direct production unit incurred due to Covid-19 pandemic’s impact.
Accordingly, the entity records the expenses related to the direct production unit during the suspended time due to the Covid-19 pandemic (e.g. depreciation expenses of tangible non-current assets, expenses incurred during the suspended operation period, salary and salary-formed expenses, cost of carrying out Covid-19 test, cost of protective gear, mask, disinfectant, cost of supplies for staff to be isolated at the factory, cost of vaccination against Covid-19, etc.) in Account 811 – Other expenses. At the same time, the entity must disclose the information in the Notes to the financial statements of the entity.
The determination of tax liability related to these expenses is based on the current tax regulation.