What are regulations on method of for preparation of pro forma financial statements in case of partial division according to Ministry of Finance in Vietnam?
What are regulations on method of for preparation of pro forma financial statements in case of partial division according to Ministry of Finance in Vietnam?
What are regulations on method of for preparation of pro forma financial statements in case of acquisition according to Ministry of Finance in Vietnam?
Pursuant to Clause 2, Article 6 of the Circular 10/2022/TT-BTC (takes effect from 01/4/2022) stipulating method of for preparation of pro forma financial statements in case of acquisition according to Ministry of Finance in Vietnam as follows:
a) In case the acquiring enterprise and the acquired enterprises do not have subsidiary companies:
- The pro forma balance sheet shall be prepared on the basis of aggregation of financial position statements of the acquiring enterprise and the acquired enterprises on the ending date of the period of the pro forma balance sheet.
- The pro forma income statement shall be prepared on the basis of aggregation of the income statements of the acquiring enterprise and the acquired enterprises of the same period as that of the pro forma income statement.
- The enterprise shall exclude all debts, financial investments and other balances, revenues, expenses, profits, losses derived from the transactions among the parties to the acquisition.
b) In case the acquiring enterprise or acquired enterprise has subsidiary companies and the acquiring enterprise has to prepare a consolidated financial statement after the acquisition is completed:
- In case the acquisition is identified as purchase of a business operation:
The pro forma balance sheet and the pro forma income statement shall be prepared similarly to the case in which the consolidating enterprises do not have subsidiary companies and the purchase is identified as purchase of a business operation as prescribed in Point b Clause 1 of this Article.
- In case the enterprise purchases a group of assets or net assets but the purchase does not constitute a business operation:
The pro forma balance sheet and the pro forma income statement shall be prepared similarly to the case in which the consolidating enterprises do not have subsidiary companies and purchase a group of assets or net assets but the purchase does not constitute a business operation as prescribed in Point b Clause 1 of this Article.
What are regulations on method of for preparation of pro forma financial statements in case of partial division according to Ministry of Finance in Vietnam?
Pursuant to Clause 4, Article 6 of the Circular 10/2022/TT-BTC (takes effect from 01/4/2022) stipulating method of for preparation of pro forma financial statements in case of partial division according to Ministry of Finance in Vietnam as follows:
a) In case part of the assets is transferred for establishment of a new enterprise which does not exist on the ending date of the period of the pro forma financial statement, the enterprise is not required to prepare the pro forma financial statement. Instead, the enterprise may use the financial statement of the same period as that of the pro forma financial statement.
b) In case part of the assets is transferred for establishment of a new enterprise which has been existing or is being establishing on the ending date of the period of the pro forma financial statement:
- The pro forma balance sheet shall be prepared on the basis of aggregation of financial position statements of the partially divided enterprise minus (-) book values of the transferred assets on the ending date of the period of the pro forma financial statement.
- The pro forma income statement shall be prepared on the basis of the income statement of the partially divided enterprise minus (-) the part of the income statement of the transferred assets in the same period as that of the pro forma financial statement.
- The enterprise shall prepare and monitor detailed information in the administrative accounting system to serve the determination of book values of transferred assets on the ending date of the period of the pro forma financial statement and the part of the income statement of the transferred assets in the same period as that of the pro forma financial statement.
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