Financial reporting upon converting wholly state-owned enterprises into joint-stock companies in Vietnam

Financial reporting upon converting wholly state-owned enterprises into joint-stock companies in Vietnam (Illustration)

Circular 106/2008/TT-BTC regulates financial reporting upon converting wholly state-owned enterprises into joint-stock companies as follows:

In the case of equitizing independent enterprises

- At the time the joint-stock company is granted the Business Registration Certificate, the equitized enterprise must close its books. Within 30 days from the date the Business Registration Certificate is granted, the equitized enterprise must prepare financial reports for the accounting period from the date the enterprise value is determined to the date the Business Registration Certificate is granted and submit them to the agency deciding the enterprise value and the corresponding financial management agency for coordinated verification of the enterprise value.

- Financial reports for the accounting period from the date the enterprise value is determined to the date the Business Registration Certificate is granted must be prepared in accordance with the prevailing enterprise accounting regime and the guidelines in this Circular.

In the case of equitizing dependent accounting units of independent State-owned Companies, Groups, Corporations, Parent Companies, and independently accounting member companies of Corporations

- At the time the joint-stock company is granted the Business Registration Certificate, the equitized dependent accounting unit must close its books and prepare financial reports for the accounting period from the date the enterprise value is determined to the date the Business Registration Certificate is granted.-

- Independent State-owned Companies, Groups, Corporations, Parent Companies, or independently accounting member companies of Corporations that have dependent accounting units being equitized are not required to prepare financial reports for the Group, Corporation, or Company at the time the joint-stock company is granted the Business Registration Certificate, but only need to prepare annual and interim financial reports as prescribed.

More details can be found in Circular 106/2008/TT-BTC, effective from December 20, 2008.

Ngoc Tai

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