Vietnam: Asset inventory and classification upon equitization

According to Circular No. 41/2018/TT-BTC of the Ministry of Finance of Vietnam, asset inventory and classification upon equitization are specified as follows:

1. The equitized enterprise must inventory and classify its assets, funding sources and funds under management or in use at the date of enterprise valuation and cooperate with the consultancy (if any) in inventorying and classifying assets.

2. At the date of enterprise valuation, the equitized enterprise must make an inventory listing the accurate quantity, actual status, quality and value of assets in hand used and managed by such enterprise; check cash in hand and cash at bank; determine the asset or cash surplus or deficit compared to the figures recorded in the accounting book and reason out such surplus or deficit, responsibility of relevant individuals and compensation amounts in compliance with provision of laws.

3. Assets listed in the inventory shall be classified into the following categories:

- Assets used in production and business activities.

- Non-operating, redundant or slow-moving assets and assets awaiting liquidation.

- Assets generated from welfare and reward funds (if any).

- Leased or borrowed assets, supplies held, processed, distributed or deposited for other enterprises or assets contributed as capital under a joint venture or association agreement and other assets not owned by the equitized enterprise.

- Assets attached directly to lands that must be disposed according to the disposition methods approved by competent authorities in accordance with provisions of the law on disposition of public property.

- Assets owned by revenue-generating service providers (including houses and lands of these service providers as prescribed in the law on disposition of public property) and operating assets of such service providers.

- Assets awaiting settlement decision from competent authorities.

- Financial investment by land-use rights (including contribution to joint ventures, limited liability companies and others).

- Other assets (if any).

More details can be found in Circular No. 41/2018/TT-BTC of the Ministry of Finance of Vietnam, which takes effect from June 18, 2018.

- Thanh Lam -

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