Principles for Determining the Value of Assets of a Public Service Provider Converting to a Joint Stock Company
According to Article 24 of Decree 150/2020/ND-CP (Effective from February 15, 2021), the following provisions are stipulated:
For intangible assets, if the converting public service provider requires continued use, it must re-evaluate the value of the intangible assets to incorporate into the value of the converting public service provider. The re-evaluation of intangible asset values must comply with the regulations on price appraisal and be determined by an organization with the function of price appraisal.
Other assets are determined based on the original price aligned with the market value of similar assets or with equivalent technical standards, quality, and origin, multiplied by the remaining quality ratio at the time of valuation, but not less than 20% of the value of newly purchased assets.
The value of financial investments of the converting public service provider at the time of valuation is determined according to the provisions of Article 26 of this Decree, including existing shares and shares to be received without payment that the converting public service provider is entitled to before and at the time of valuation of the converting public service provider.
The value of public assets assigned to the joint-stock company converted from the public service provider’s management must be calculated into the state capital portion in the enterprise. If public assets assigned to the joint-stock company converted from the public service provider’s management are not calculated into the state capital portion in the enterprise, they will be managed and used according to the law on the management and use of public assets.
The Ministry of Finance will provide specific guidance on the provisions of this Article.
Sincerely!
