Portal
Type: Instruction
Responsible Agency: Security Exchange commission
Issuing Date: 2010-12-15
Click here to see the measures contained in this document
Although every effort has been made to convey the meaning and effect of each provision of the original Lao language version as accurately as possible, this English translation does not carry any legal authority. Only the original Lao text has legal force; this English translation is strictly for reference.
LAO PEOPLE’S DEMOCRATIC REPUBLIC
PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY
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Bank of the Lao PDR
Accounting-Finance Department Ref. No. 207/AFD
Vientiane capital, dated 15 December 2010
Instruction
on Accounting for Commercial Banks and Financial Institutions
relating to Securities Transaction
- Pursuant to a Decision on the Organization and Operation of an Accounting-Finance Department ref. no. 04/BOL, dated 25 March 2005;
- Pursuant to a Decision of the Bank of the Lao PDR’s governing the adoption of an Accounting Manual and a Financial Reporting format for Commercial banks and Financial institutions under the Bank of the Lao PDR ref. no. 672/BOL, dated 02 September 2008;
- Pursuant to the Proposal of BCEL ref. no. 542/BCEL, dated 26 September 2010 about an Accounting Record for Privatization of BCEL.
In responding to the necessary and urgent requirement of commercial banks conducting accounting transactions relating to securities, particularly the issuance of stocks to the public and the acceptance of deposits from securities firm, the Accounting- Finance Department, Bank of the Lao PDR hereby issues this instruction regarding:
- Adding an account number to a bank account of a commercial bank or financial institution by classifying these into related categories and types of account; and
- Record transaction related to the stocks issuance to the public by choosing to follow each case that has actual operation with the following details:
I.Add an account number into a bank account
I.1. An account number in a balance sheet
21313 deposit from Securities Company
213131 deposit from Domestic Securities Company
2131311 current deposits
2131313 saving deposits
2131314 daily deposits
2131315 fixed deposits
213132 deposit from Foreign Securities Company
2131321 current deposits
2131323 saving deposits
2131324 daily deposits
2131325 fixed deposits
213713 interest payable to Securities Company
2137131 interest payable to Domestic Securities Company
2137132 interest payable to Foreign Securities Company
32012 share impairment, financing, mergers and acquisitions
410133 interest expense for deposits of Securities Company
4101331 interest expense for deposits of Domestic Securities Company
4101331 interest expense for deposits of Foreign Securities Company
44031 Commission fee
440311 Brokerage fees
440312 Advisory fees
440318 others commission fees
I.2. An account number off balance sheet
9703 Share Issuing account
97031 Ordinary stocks
970311 Ordinary stocks distributed through an agent
970312 Ordinary stocks subscription
97032 Preferred stocks
970321 Preferred stocks distributed through an agent
970322 Preferred stocks subscription
98703 Dual accounts for share issuing
987031 Dual accounts for ordinary stocks issuing
987032 Dual accounts for preferred stocks issuing
II. Accounting record for the issuance of stocks to the public
II.1. Account number used
1 .1 Balance sheet account
1101100 Cash on hand
3101000 Subscribed capital receivable
3102000 Un-subscribed capital receivable
3108100 Shareholders for Un-subscribed capital receivable
3108200 Shareholders for un-paid subscribed capital receivable
3201100 Share premiums
3201200 Share impairments
4403110 Underwriting fees
4403120 Advisory fees
1. 2 Off balance sheet account
97031 Ordinary stocks
9703110 Ordinary stocks distributed through an agent
9703120 Ordinary stocks subscription
97032 Preferred stocks
9703210 Preferred stocks distributed through an agent
9703220 Preferred stocks subscription
98703 Dual accounts for share issuing
987031 Dual accounts for ordinary stocks issuing
987032 Dual accounts for preferred stocks issuing
II.2. Accounting record
II.2.1 Share distribution by its self (Bank)
- Bank opens for share subscription: in a case of no guarantee deposit
- ) When investors subscribed for buying shares: bank monitors numbers and value of shares that investors subscribed for in off balance sheet by recording an account as follows:
Debit: 00-9703120 Subscribed ordinary stocks
Credit: 00-9870312 Dual account monitoring that the bank distributes
2.)When the subscription period is completed, the bank allocates shares to subscribers and records an account as follows:
Debit: 00-3108100 Shareholders for Un-subscribed capital receivable
Credit: 00-3102000 Un-subscribed capital receivable
- The Bank announces for paid-up capital and records as follows:
Debit: 00-3108200 Shareholders for un-paid subscribed capital receivable
Credit: 00-3108100 Shareholders for Un-subscribed capital receivable
3.) When the investors paid up for subscribed shares
- The Bank shall make a payment for un-paid subscribed capital receivable account and record an account as follows:
Debit: 00-3102000 Un-subscribed capital receivable
Credit: 00-3108200 Shareholders for un-paid subscribed capital receivable
- If the shares can be sold with par value, records an account as follows:
Debit: 00-11011/xx Cash or other related account
Credit: 00-3101000 Subscribed capital receivable
- If the shares can be sold at higher price than par value, records an account as follows:
Debit: 00-11011/xx Cash or other related account
Credit: 00-3101000 Subscribed capital receivable
Credit: 00-3201100 Share premiums
- If the shares could be sold at lower price than par value, records an account as follows:
Debit: 00-11011/xx Cash or other related account
Debit: 3201200 Share impairments
Credit: Subscribed capital receivable
2. The Bank opens for share subscription: in instances where investors pay guarantee deposit.
- When the investors subscribed for buying shares:
Investors subscribed for buying shares shall make a payment to the bank as a guarantee deposit for the share subscription and the bank records an account as follows:
Debit: 00-11011/xx Cash or other related account
Credit: 00-2201280 placing others guarantees deposit
- The Bank also monitors numbers and value of shares that investors subscribed in off balance sheet by recording an account as follows:
Debit: 00-9703120 Subscribed ordinary stocks
Credit: 00-9870312 Dual account monitors share distributed by the bank
2. When the subscription period has expired, the bank allocates shares to subscribers and then notifies the investors and clears dual accounts for monitoring numbers of shares subscription in off balance sheet by the investors and recording an account as follows:
- Clearing off balance sheet account:
Debit: 00-9870312 Dual account monitoring share being sold by the bank
Credit: 00-9703120 Subscribed ordinary stocks
2.1). numbers of shares that the bank allocate to be equal to numbers being subscribed, records an account as follows:
Debit: 00-2201280 placing other guarantee deposit
Credit: 00-3101000 Subscribed capital receivable
2.2). numbers of shares that the bank allocates less than numbers of subscribed shares, the bank will refund guarantee deposit to the investors and records an account as follows:
Debit: 00-2201280 placing others guarantee deposit
Credit: 00-3101000 Subscribed capital receivable
Credit: 00-11011/xx cash or other related account
2.3). In case of placing guarantee deposit for share subscription, records an account as follows:
Debit: 00-2201280 placing others guarantee deposit
Debit: 00-11011/xx cash or other related account
Credit: 00-3101000 Subscribed capital receivable
II.2.2 Share sold through an agent
II.2.2.1 When the bank transfers shares to an agent
The Bank records numbers of shares in monitoring account and amount of money in an off balance sheet, recording an account as follows:
Debit: 00-9703110 Ordinary stocks sold through an agent
Credit: 00-9870311 Dual account monitors share distributed by the bank
II.2.2.2 When receiving money from selling shares
- Clearing off balance sheet account with numbers of shares and amount of money received
Debit: 00-9870311 Dual account monitors share distributed by the bank
Credit: 00-9703110 Ordinary stocks sold through an agent
2. Recording transaction account in the balance sheet
2.1) If the shares can be sold at par value, an account should be recorded as follows:
Debit: 00-11011/xx Cash or other related account
Credit: 00-3101000 Subscribed capital receivable
2.2) If the shares can be sold at higher price than par value, an account should be recorded as follows:
Debit: 00-11011/xx Cash and other related account
Credit: 00-3101000 Subscribed capital receivable
00-3201100 Share premiums
2.3) If the shares can be sold at a lower price than par value, an account should be recorded as follows:
Debit: 00-11011/xx Cash and other related account
Debit: 3201200 Share impairments
Credit: 00-3101000 Subscribed capital receivable
3. When paying a commission fee or advisory fees to an agent
Debit: 00-4403110 commission fees
Debit:00-4403120 Advisory fees
Credit: 00-11011/xx Cash or other related account
This instruction shall be entered into force starting from the date of signing. In case of facing difficulties in the implementation, the Bank and financial institutions shall propose to the Accounting-finance department for consideration and providing further advice.
Acting Director-General
Accounting-Financing department
(signed and sealed)
Khankeo Larmanijoa
cc:
- Commercial banks and financial institutions
- ITCB, BOL
- Commercial bank supervision department, BOL
- Banking operations department, BOL
- Securities commission office
Download English:Instruction on accounting of commercial banks and Financial institutions relating to securities transaction No. 207/AFD, dated 15 December 2010
Download Lao:Instruction on accounting of commercial banks and Financial institutions relating to securities transaction No. 207/AFD, dated 15 December 2010
List Measures Related to Legal Documents
| Name | Description | Status |
|---|---|---|
| Requirement for commercial banks to keep accounting records | Commercial banks conducting accounting transactions relating to securities, particularly the issuance of stocks to the public and the acceptance of deposits from securities firm, must comply with conditions relating to adding an account number to a bank account of a commercial bank or financial institution and recording transaction related to the stocks issuance to the public. | Active |