Assets of the Parent Company - Vietnam Oil and Gas Group Include What?

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According to Article 9 Decree 06/2015/ND-CP, the assets of the Parent Company are formed from state capital invested in the Parent Company, loans, and other legitimate sources of capital directly managed and used by the Parent Company. The assets of the Parent Company include:

- Fixed assets, investment real estate, long-term receivables, other long-term assets, and short-term assets of the Parent Company office, dependent accounting units, project management boards, and public service providers.- Long-term financial investments include: Capital invested by the Parent Company in Corporations, one-member limited liability state companies owned by the Parent Company; capital contributions in joint-stock companies, joint venture companies, and other enterprises; capital contributions in business cooperation contracts; long-term bond and promissory note investments, and other long-term investments.

Note: The assets of the Parent Company do not include the assets of the Corporation, limited liability companies owned by the Parent Company, or the assets of joint-stock companies with dominant capital contributions from the Parent Company.

In particular, the fixed assets of the Parent Company include tangible and intangible fixed assets, finance-lease fixed assets, and ongoing basic construction costs. Furthermore, all existing fixed assets of the enterprise must be depreciated except for the following assets:

- Fixed assets that have been fully depreciated but are still being used in production and business activities.- Fixed assets that have not been fully depreciated but are lost.- Other fixed assets managed by the enterprise but not owned by the enterprise (except for finance-lease fixed assets).- Fixed assets that are not managed, tracked, or accounted for in the enterprise's accounting books.- Fixed assets used in the company's welfare activities for employees (except for fixed assets used for employees working at the company such as: mid-shift resting houses, mid-shift dining rooms, changing rooms, toilets, clean water tanks, parking lots, health rooms or medical stations for medical examination and treatment, employee shuttle buses, training facilities, vocational training facilities, employee housing invested and built by the company).- Fixed assets from non-refundable aid sources after being handed over to enterprises by competent authorities to serve scientific research purposes.

More details can be found in Decree 06/2015/ND-CP which takes effect on March 1, 2015.

Thu Ba

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