Implementing asset transfer when converting state-owned enterprises into joint-stock companies in Vietnam

Implementing asset transfer when converting state-owned enterprises into joint-stock companies in Vietnam (Illustrative image)

Circular 106/2008/TT-BTC stipulates asset transfers when converting 100% state-owned enterprises into joint-stock companies as follows:

Case of independent enterprise equitization: In the case of independent enterprise equitization, accountants shall carry out the asset transfer procedures pursuant to the current regulations on asset transfer, liabilities, and capital sources to the joint-stock company. All accounting documents, accounting books, and financial statements of the equitized enterprise that are subject to archiving shall be handed over to the joint-stock company for continued storage.

Case of equitization of dependent accounting units of independent State-owned Companies, Corporations, Groups, Parent Companies, Independently-accounted Subsidiaries of Corporations: When transferring assets, liabilities, and capital to the joint-stock company, basing on the asset transfer minutes, detailed appendices of transferred assets, and relevant documents and accounting books, the accountants shall reflect a reduction in the value of assets transferred to the joint-stock company by recording:

- Debit Account 411 - Capital

- Debit Account 214 - Depreciation of Fixed Assets (Accumulated depreciation)

- Debit Accounts 311, 331, 335, 338, 341....

- Credit Accounts 111, 112, 121, 131, 152, 153, 154, 155, 156, 211, 213, 221, 222, 241,…

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

Ngoc Tai

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