Early in 2002, the MOF issued a new separate – though similar – accounting system for Financial Institutions. It must be adopted, starting 1 January 2002, by all listed and foreign invested banks, insurance companies, brokerages, leasing companies, and finance companies.
Unlisted financial institutions that are joint stock limited enterprises are encouraged to follow the new system. Other unlisted financial institutions should continue to use the old Accounting Systems for Financial Institutions.
The Accounting System for Financial Institutions is similar to the accounting system for general business enterprises. But it comprises principles specific to financial institutions, such as how to recognise interest, repurchase agreements, securities transactions, insurance reserves, accounting by trusts, and accounting by investment funds.
