State non-business units converted into joint-stock companies are required to inventory and classify assets.
Does a public service provider converted into a joint-stock company need to inventory and classify its assets?
Based on Clause 1 Article 10 Decree 150/2020/ND-CP the regulations are as follows:
Inventory, classify assets and handle financial issues
1. Within 30 days from the date of receiving the decision on conversion from the competent authority, the public service provider being converted is responsible for:
a) Organizing the inventory and classification of assets, capital sources, and funds that the converting public service provider is managing and using, specifying: Public assets counted as part of the state capital at the converting public service provider; public assets assigned to the enterprise converted from the public service provider but not counted as part of the state capital at the converting public service provider; assets not continued to be used to be transferred to the public asset management authority for handling.
Thus, the inventory and classification of assets must be carried out within 30 days from the date of receiving the decision on conversion from the competent authority by the converting public service provider.
How is a public service provider converted into a joint-stock company responsible for inventorying and classifying assets?
Which assets at the converting public service provider do not need to be valued?
Based on Clause 2 Article 10 Decree 150/2020/ND-CP the regulations are as follows:
Inventory, classify assets and handle financial issues
...
2. All assets at the converting public service provider must be valued, except for the following assets:
a) Assets rented, borrowed, entrusted, processed, consigned, capital contributed, joint venture, affiliated with others and other assets that do not belong to the unit;
b) Unused assets, surplus assets, assets pending liquidation;
c) Premises, land, and other public assets not approved by a competent authority, to be retained for continued use and handed over to authorized public asset management authorities for handling;
d) Public assets not included in the public service provider's value.
The assets at the converting public service provider not required to be valued include:
- Assets rented, borrowed, entrusted, processed, consigned, capital contributed, joint venture, affiliated with others and other assets that do not belong to the unit;
- Unused assets, surplus assets, assets pending liquidation;
- Premises, land, and other public assets not approved by a competent authority, to be retained for continued use and handed over to authorized public asset management authorities for handling;
- Public assets not included in the public service provider's value.
How are assets classified when a public service provider is converted into a joint-stock company?
Based on Clause 3 Article 4 Circular 111/2020/TT-BTC, the assets inventoried when the public service provider is converted into a joint-stock company are classified into the following groups:
- Public assets assigned to the enterprise converted from the public service provider without counting them as part of the state capital at the public service provider, including:
Special assets, specialized assets serving national defense and security tasks; infrastructure assets serving national interests and public benefits; assets serving the operation of state projects; resources and other assets as prescribed by law on public assets;
- Assets that are no longer used to be handed over to the competent public asset management authority for handling;
- Assets used in operational activities, production and business activities;
- Assets formed from welfare funds, development funds for operational activities;
- Leased, borrowed assets, entrusted materials and goods, procured, consigned, joint venture contributed assets and other assets that do not belong to the converting public service provider;
- Land-attached assets subject to arrangement and handling according to the approved plan by competent authorities in accordance with the law on the arrangement and handling of state-owned premises and land;
- Assets pending decision from competent authorities for handling;
- Financial investments (capital contributions, joint venture, affiliated capital contributed with enterprises, organizations; equity shares, partner contributions to form a liability company and other capital contributions);
- Other assets (if any).
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