Accounting for syndicated leasing in Viet Nam

Abstract

Among the methods of finacial leasing, the syndicated leasing method is applied commonly by companies in countries with developed leasing industry because of its advantages like minimizing credit risk, reducing capital burden, especially in the case of the high value leasing contract; and expanding financial leasing market. In Vietnam, since the promulgation of Circular 08/2006/TT-NHNN on “Guidelines on syndicated financial leasing for financial leasing companies as prescribed in Decree No.16/2001/ND-CP dated 02/05/2001 and Decree No. 65/2005/ND-CP dated 19/05/2005”, so far there is no specific guidance on accounting for this method. This makes it difficult for financial leasing companies when account for theirs incurred transactions. The paper aims to study the content and benefits of the syndicated leasing method, distinguish with syndicated loan, analyze the accounting situation of the syndicated leasing in Vietnam, then propose solutions to improve methods of accounting for syndicated leasing in financial leasing companies in Vietnam.