Accounting principles for account 171 – Transactions

a) Account 171 is the account used to reflect the repurchase transactions of Government bonds arising during the period. Account 171 only records the value of the repurchase contract of Government bonds, not the coupon that the buyer receives on behalf of the seller at the time(s) within the contract term.

b) Enterprises must comply with regulations related to transaction forms, transaction terms and income from government bonds in repurchase transactions as prescribed in current financial mechanisms on

government bond repurchase transactions.

c) The buyer of bonds under a repurchase agreement shall not recognize as revenue the receipt of bond coupons from the seller at the time(s) within the term of the repurchase transaction, but shall record as other payables.

2. Structure and content of account 171 – Transactions of buying and selling Government bonds
Debit Side – The value of the Government bonds repurchased by the seller upon contract expiration;
– The value of the bonds purchased by the buyer   when the Government bond repurchase contract takes effect;
– Allocation of the difference between the resale canada telegram data  price and the purchase price of the Government bonds under the Government bond repurchase contract to the buyer.
The side has – Value of government bonds when sold under the government bond repurchase agreement

of the buyer upon contract expiration

– Value of bonds when sold by the seller when decoding the language of dreams  the government bond repurchase agreement takes effect;
– Allocation of the difference between the resale price and the  consumer data repurchase price of government bonds under the government bond repurchase agreement to the seller.
Debit balance – The value of the buyer’s government bonds before the end of the repurchase agreement term.
Credit balance – The value of the seller’s government bonds before the end of the repurchase agreement term.
Note: Account 171 – Government bond purchase and resale transactions does not have a level 2 account.

3. Accounting method for some major economic transactions on account 171 – Transactions of buying

and reselling Government bonds

accounting account 1713.1. Accounting for the seller of government bonds under repurchase agreements
a) When the enterprise’s government bond repurchase contract takes effect, record:

Debit Account 111, 112 (amount based on selling price)
Credit Account 171 – Government bond repurchase transactions.
b) Periodically, the seller allocates the difference between the selling price and the repurchase price of the Government bonds of the Government bond repurchase contract into expenses, recorded as:

Debit Account 635 – Financial expenses (other than securities company)
Credit Account 171 – Government bond repurchase transactions (allocation time is consistent with contract time).
c) At the end of the Government bond repurchase contract term, the enterprise receives the securities back and pays the money stated in the Government bond repurchase contract, recorded as:

Debit Account 171 – Government bond repurchase transactions
Credit Account 111, 112 (according to the repurchase price stated in the contract).
d) When the buyer pays the seller the coupons that the buyer receives on behalf of the seller at the time(s) within the contract term, the seller records