Methods for Collecting Information on Asset Valuation under Circular 31/2024/TT-BTC from July 1, 2024: What are the Methods?
Collection of Information on Appraised Assets according to the Latest Regulations in 2024
Based on Article 4 of the Vietnam Valuation Standards on Collection and Analysis of Information on Appraised Assets promulgated with Circular 31/2024/TT-BTC regulating the collection of information as follows:
- Information to be collected on appraised assets includes legal characteristics, economic-technical characteristics, market information, and other related information about the appraised assets.
If the appraised asset is property rights or future-forming assets, information on the establishment of ownership and formation of these assets, land use planning, and construction planning (if any) from authorized agencies must be collected according to relevant legal regulations.
- The collection of information about appraised assets is mandatory when appraising assets.
The information collection must be objective, factual, systematic, appropriate to the appraised asset, valuation purpose, valuation basis, and consistent with the valuation approach and methods stipulated in the Vietnam Valuation Standards issued by the Ministry of Finance.
- The person performing the valuation activity is responsible for organizing the information collection and must include the collected information in the valuation dossier as per regulations.
If the information collector is not the person performing the valuation activity, the person performing the valuation activity must assign and guide the information collector to carry out the information collection as regulated.
- The information collector is responsible for the objectivity and truthfulness of the information and data they have collected.
The person executing the valuation activity is responsible for reviewing, evaluating, analyzing, and using the collected information to appraise the asset as regulated.
- In case of arising limitations that cannot be remedied in information collection due to objective or force majeure reasons, possibly affecting the valuation activity and the estimation of the appraised asset's value, the information collector must report to the person performing the valuation activity for them to clearly reflect this content in the valuation report and valuation certificate or notify the valuation result.
- For collected information subject to confidentiality or restricted use as per legal regulations, such as unpublished information or state secrets, the information collector must comply with the legal regulations on information confidentiality when collecting and using this information.
06 Methods for Collecting Information on Appraised Assets according to Circular 31/2024/TT-BTC
Based on Article 6 of the Vietnam Valuation Standards on Collection and Analysis of Information on Appraised Assets promulgated with Circular 31/2024/TT-BTC, the 06 methods for collecting information on appraised assets include:
(1) Requesting organizations, individuals needing the valuation to provide complete and prompt dossiers and documents on the appraised asset, including documents on the asset usage, operation, and exploitation processes, and documents on asset repair and upgrading (if any).
Organizations and individuals requesting the valuation confirm in writing the information they provided;
(2) Surveying the current status of the appraised asset:
The information collector conducts a direct survey and fully records the characteristics and condition of the asset, information, and factors greatly affecting the asset's value; photographs the asset and images documenting the asset's current condition; draws up a survey report on the asset's current status.
The survey report on the current status of the appraised asset must be signed by the information collector and the organizations, individuals requesting the valuation.
For appraised assets being enterprises, intangible assets, financial assets, services, or future-forming assets: the information collector surveys the current status of the assets or components constituting the asset that can be directly surveyed in practice.
Cases where it is unnecessary to survey the current status of the asset if the information collector provides sufficient reasons for being unable to survey the asset, including:
- Appraised assets are new machinery, equipment, tools, or services where the valuation request list or labels or attached documents state full economic-technical characteristics of the asset; simultaneously, there are identical assets to the appraised asset being traded, bought, or sold on the market;
- Appraised assets are lost, missing, or completely destroyed;
- Appraised assets in cases where direct access is not possible due to objective or force majeure reasons and the information collector must clearly state the possible impact on the valuation activity (if any).
The person performing the valuation must clearly state the possible impact on the estimation of the appraised asset's value (if any) in the valuation report and valuation certificate or notify the valuation result;
(3) Using opinions from experts, organizations, and individuals providing consulting services in inspection, design, construction, technical and other services related to the appraised asset;
(4) Based on the characteristics of the appraised asset, the valuation approach, and method issued by the Ministry of Finance considered to be chosen by the person performing the valuation activity, the market survey and information collection on the market participants at the time of valuation are performed by one of the following methods:
- Interviewing by one of the forms: directly, by phone, or by email with individuals or organizations having information on owning, using, and transferring the asset, such as: owners; users, operators, exploiters, maintainers, or repairers of the asset; customers; suppliers; manufacturers; consumers.
The interview process and results must be recorded in the survey form and stored as regulated in Circular 31/2024/TT-BTC;
- Collect information on customs declarations, contracts, invoices, purchase documents, quotations, catalogs, documents, reports from importers, manufacturers, suppliers, investors, and other related subjects;
- Collect information via media and communication, such as books, newspapers, magazines, publications, articles, evaluations by research organizations, industry associations, experts, domestic and international evaluation and rating organizations; on the internet; electronic portals; radio stations, television stations;
(5) Collecting information via the national database on prices, information from documents of state agencies with authority, including price levels set by state agencies with authority; unit prices, specialized norms related to appraised assets; socio-economic, environmental, planning data, and other content affecting the appraised asset's value published or regulated by state agencies with authority (if any);
(6) Using other methods of information collection as regulated.
When does Circular 31/2024/TT-BTC come into effect?
Based on Article 2 of Circular 31/2024/TT-BTC:
Implementation Clause
1. This Circular takes effect from July 01, 2024.
2. Related organizations and individuals are responsible for implementing the Vietnam Valuation Standards promulgated with this Circular.
3. During the implementation process, if there are any issues, organizations and individuals are requested to promptly report to the Ministry of Finance for study and resolution./.
Thus, Circular 31/2024/TT-BTC takes effect from July 01, 2024.
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