State-Owned Enterprises Must Inventory and Handle Inventory Results

Content of inventory and handling of inventory results are defined as follows:

1. State enterprises must organize actual inventory to determine the quantity of short-term assets and long-term assets under the management and use of the enterprise (including crops, livestock, herds); the number of shares that the enterprise receives without having to pay for; reconciliation of payable and receivable debts in the following cases:

- At the time of closing the accounting books to prepare annual financial statements;- When implementing decisions of competent authorities on division, separation, merger, consolidation, or change of ownership;- After natural disasters, enemy destruction, or other causes affecting the assets of state enterprises;- Following State guidelines.

2. Handling inventory results:

- Handling inventory results at the time of preparing annual financial statements:- In cases where inventory results show a shortage of assets compared to the assets recorded in the accounting books, if caused by subjective reasons of the related collective or individuals, the collective or individuals must compensate. The Board of Members or the President of the company (for enterprises without a Board of Members), General Director, or Director of the state enterprise decides the compensation level and takes responsibility for their decision. The value of the missing assets after being compensated in cash by the collective or individuals (or the value of assets lacking due to objective reasons) shall be recorded in the business production costs of the enterprise.- In cases where inventory results show an excess of assets compared to the assets recorded in the accounting books, the enterprise must identify the reason for the excess assets. For excess assets that are not required to be returned, they shall be recorded as other income of the enterprise; for excess assets with undetermined reasons, they shall be recorded as other payables, payable to others; when the value of the excess assets has determined the reason and has a handling record, the handling decision will be the basis for appropriate accounting.- The handling of inventory results is carried out according to legal regulations for each specific inventory case.- Enterprises are responsible for promptly handling asset losses and debts. In cases where asset losses and debts are not handled, the Board of Members or the President of the company (for enterprises without a Board of Members), General Director, or Director of the state enterprise shall be responsible to the representing agency for the owner as in the case of dishonest reporting of the financial situation of the enterprise and shall be responsible before the law for violations causing asset losses of the enterprise.

Details can be found in Circular 219/2015/TT-BTC effective from February 15, 2016.

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