Guidance on Handling Inventory of Assets for Agricultural and Forestry Companies during Transition

According to Circular 51/2015/TT-BTC, at the time of conversion, the Company must inventory all assets under its management and usage, including fixed assets and long-term investments, current assets and short-term investments, receivables, payables, and owner's equity (including planted forests, orchards, livestock). Classify assets into necessary, unnecessary, not yet necessary for business production, and assets pending liquidation (including damaged, inferior, and degraded assets). Compile statistics on surplus and missing assets, uncollectible receivables, overdue debts, identify the causes, and the responsibilities of related organizations and individuals, and determine compensations according to the provisions of the law.

Guidelines for handling inventory of assets in agricultural and forestry companies during conversion (Illustrative image)

To be specific, Clause 2, Article 5 of this Circular guides the handling of inventory of assets in agricultural and forestry companies during conversion as follows:

For agricultural and forestry companies that continue to maintain and strengthen under the form of the State holding 100% of charter capital:

- Handling of missing assets during inventory:

- For lost, missing, damaged, inferior, degraded, outdated, or stagnant inventory identified during the inventory; the enterprise must determine the value of losses, the compensation responsibility of individuals or collectives causing the loss, the insurance organization's compensation (as stipulated in the insurance contract), and the remaining shortage is accounted for as business production expenses in the period.- For assets missing during the inventory compared to accounting records due to objective reasons (natural disasters, floods, fires, epidemics, or other force majeure reasons); the difference between the value of lost assets after deducting the insurance organization's compensation (if any), the remaining shortage is considered for a reduction in state capital.

- Surplus assets after inventory are the difference between the actual inventory assets and the assets recorded in the accounting books, and the value of the surplus assets from the inventory is accounted for as the enterprise's income.

For forestry companies converted to a protection forest management board, the difference between the value of lost assets due to objective reasons after deducting the insurance organization's compensation (if any), the remaining shortage is considered for a reduction in state capital. The value of surplus assets after inventory compared to the accounting records is accounted for as an increase in state capital.

Details can be found at Circular 51/2015/TT-BTC, effective from June 2, 2015

Le Hai

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