Amending the object of provision for loss on investments

7/14/2022
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On 7 April 2022, the Ministry of Finance issued Circular 24/2022/TT-BTC amending Circular 48/2019/TT-BTC providing instructions about creation and management of provisions for devaluation of inventories, loss of investments, bad debts and warranties for products, goods, services and construction works at the enterprise. This Circular takes effect from 25 May 2022. As follows:

1. Government bonds, Government-guaranteed bonds and municipal bonds are exempted from such provisioning requirement.

2. The remaining balance of provisions for investments in Government bonds, Government-guaranteed bonds, municipal bonds that enterprises made before the entry into force of this Circular (if any) shall be reversely recorded as deductions for expenses at the time of preparation of the year-end financial statement of 2022.