Chương 2 Nghị định 206/2013/NĐ-CP: Quản lý và xử lý các khoản nợ phải thu của doanh nghiệp

Chapter II

MANAGEMENT AND HANDLING OF RECEIVABLES OF ENTERPRISES

Section 1. MANAGEMENT OF RECEIVABLES OF ENTERPRISES

Article 5. Responsibilities of enterprises in the management of receivables

1. To issue and implement Regulations on debt management under Clause 1, Article 4 of this Decree, specifying responsibilities of collectives and individuals for monitoring and collecting receivables.

2. To open books to monitor debts by debtor; to regularly classify debts (undue, due, overdue, bad and irrecoverable debts), urge the collection of debts and periodically compare debts.

3. The Members’ Councils, chairpersons of the Members’ Councils (company presidents) and directors general (directors) of enterprises shall promptly handle bad and irrecoverable debts. If enterprises fail to handle in time irrecoverable debts according to regulations and have been reminded more than once by the owners, depending on the consequences of the late handling on the financial status and business results of enterprises, the owners shall decide on the forms of disciplining under law the chairpersons of the Members’ Councils, Members’ Councils, company presidents and directors general or directors; if the failure to handle in time irrecoverable debts causes losses to the owners’ capital at the enterprises, they shall pay compensations with personal properties and take responsibility before the owners and law.

4. Enterprises shall make provisions according to regulations of the Ministry of Finance for bad debts upon identification.

5. Enterprises shall clearly identify objective or subjective causes of irrecoverable debts. For subjective causes, enterprises shall demand responsible individuals and collectives to pay compensations. For objective causes, the Members’ Councils, the Boards of Executives and related divisions shall clearly identify the causes and make written records thereof; if determining that these debts are related to production and business activities, enterprises may offset them with provisions for bad debts and account the remaining deficit, if any, into their business expenses.

6. After handling irrecoverable debts under Clause 5 of this Article, enterprises shall still monitor them off balance sheets and in the notes to financial statements for at least 10 years from the date of handling, and take measures to recover these debts. If recovering these debts, enterprises may account the recovered amounts minus related expenses as their incomes.

7. For enterprises that fail to issue a Regulation on debt management under Clause 1, Article 4 of this Decree, their Members’ Councils and Boards of Executives shall be regarded as failing to fulfill their tasks (when their enterprises are rated), and they may not make deductions for the bonus fund for enterprise managers and may only receive 80% of monthly salaries.

For enterprises that fail to issue a Regulation on debt management although competent agencies have urged in writing more than once, their Members’ Councils and Members’ Council chairpersons, company presidents and directors general (directors) shall be removed as in the case of untruthful reporting on the financial status of enterprises.

Article 6. Powers of enterprises in the management of receivables

1. Enterprises may sell overdue, bad and irrecoverable debts in order to recover capital on the principle of making adequate provisions according to regulations. Enterprises may sell debts only to economic entities licensed to purchase and sell debts, but not directly to debtors.

2. Parties may agree on the sale prices of receivable debts on the basis of referring to prices of valuation organizations and market prices (if any) and take responsibility for decisions on sale of these debts. If the sale of debts makes enterprises suffer losses, lose capital or become insolvent and consequently be dissolved or fall bankrupt, the Members’ Councils, chairpersons of the Members’ Councils (company presidents) and directors general (directors) and persons directly related to the occurrence of bad debts shall pay compensations and be handled in accordance with law and the enterprises’ charters.

3. The owners shall base themselves on the scale and lines of business, characteristics and value of debts of enterprises to decentralize the decision-making power to the Members’ Councils (company presidents) and determine cases in which the sale prices of debts are lower than their book value to be reported by enterprises to the owners for decision. This level of decentralization must be specified in the enterprises’ Regulation on financial management and Regulation on debt management.

4. Enterprises shall make debt sale plans (including production and business plans to be implemented with the proceeds from the debt sale) and compare with the non-sale of debts for decision or submission to the owners for consideration and approval before selling receivables under Clause 3 of this Article (the negative difference between the book value of debts and their sale price is offset with the provisions for bad debts). Enterprises shall further offset losses (if any) with revenues from production and business activities without causing loss to state-invested capital. If failing to do so, the chairpersons of the Members’ Councils, the Members’ Councils, company presidents and leaders of enterprises shall take joint responsibility therefor before the owners and law.

5. Other rights of enterprises, such as the right to lodge complaints or file lawsuits when unable to recover debts, the right to authorize or hire debt claim as prescribed by law.

Section 2. HANDLING OF OUTSTANDING RECEIVABLES OF ENTERPRISES

Article 7. Handling of irrecoverable debts

1. For operating enterprises, irrecoverable debts defined in Clause 4, Article 3 of this Decree must be handled in the following sequence:

a/ Enterprises clearly identify causes and responsibilities of collectives and individuals and request responsible collectives and individuals to pay compensations under law.

b/ Using the provisions for bad debts to offset.

c/ Accounting them into business expenses or incomes of enterprises on a case-by-case basis.

In case of selling debts in accordance with law, after clearly identifying causes and responsibilities of collectives and individuals and request responsible parties to pay compensation in accordance with law, enterprises may offset the negative difference between the value of debts and the sale price with the provisions for bad debts and further account the remaining difference, if any, into their business expenses.

2. For enterprises currently undergoing transformation, if they suffer losses after handling once irrecoverable debts under Clause 1 of this Article, they may continue handling them under state regulations applicable to transformed enterprises.

3. For irrecoverable debts which have been handled (excluding sale of debts) but debtors still exist, enterprises shall continue monitoring them off balance sheet and in the notes to financial statement for at least 10 years from the date of handling, and take measures to recover these debts. If recovering these debts, enterprises may account the recovered amounts minus related expenses into their incomes.

Transformed enterprises shall hand over debts not included in their value according to regulations. Agencies receiving these debts shall continue monitoring and collecting irrecoverable debts which have been handled but whose debtors still exist. Pending the handover, enterprises are still responsible for monitoring and collecting these debts.

4. Enterprises may handle and account once irrecoverable debts into their annual production and business results according to Point c, Clause 1 of this Article.

Article 8. Handling of recoverable outstanding debts

1. For outstanding recoverable debts, enterprises shall actively urge and apply every measure to recover them.

2. For receivables that have been overdue for 6 months or more and are still recoverable, enterprises shall set up provisions and account them into their expenses in the year.

Article 9. Handling of state budget-related receivables of enterprises

1. Amounts supported or offset by the state budget according to regulations and approved by competent agencies but not yet allocated by a budget of any level must be fully allocated to enterprises by such budget.

2. Amounts remitted in excess by enterprises into a budget of any level must be refunded by such budget to the enterprises at the latter’s request or subtracted from their payable amount of the subsequent period according to the law on tax administration.

3. For debts owed by enterprises due to non-allocation or insufficient allocation of capital for payment for capital construction investments already made under works or projects invested with state budget capital, government bond capital or capital of budget origin; or for payment for the sale of assets and working offices to non-business units and state management agencies in localities under approved investment plans, ministries, sectors and localities with investment-deciding competence shall arrange budget capital for full and timely payment to enterprises under current laws. It is not allowed to request enterprises to advance capital for implementing projects for which the State has not yet arranged capital, which may cause capital construction debts.

4. Amounts to be paid by local budgets to enterprises whose assets have been mobilized for non-business units or state management agencies in localities must be paid by the localities to these enterprises from their budgets.

5. Enterprises’ money amounts temporarily seized by state agencies in the process of examination, inspection or investigation must be returned to enterprises by the agencies that have decided on the seizure within 5 working days after there are conclusions that enterprises are not at fault or do not have to remedy the consequences.