On May 04, 2018, the Ministry of Finance issued Circular No.41/2018/TT-BTC guiding some contents on financial handling and valuation of enterprises when transferring state-owned enterprises and single-member limited liability company whose 100% charter capital is invested by a State into a joint stock company. This Circular took effect since June 18, 2018.
Accordingly, Circular No.41/2018/TT-BTC regulates the inventory and classification of assets before equitization state-owned enterprises as follows:
– Assets used in production and business activities.
– Assets do not need to use, assets are stagnant, slow rotation, property awaiting liquidation.
– Assets formed from reward and welfare funds (if any).
– Assets leased or borrowed, supplies and goods kept for preservation, processing, agency, consigned, joint venture assets and other assets don’t belong to the enterprises.
– Assets attached to land which must be handled according to the plan on re-arrangement of house and land establishments under decisions approving by competent agencies in accordance with the law on rearrangement of state-owned houses and land.
– Assets of non-business units with revenues (land and housing establishments of non-business units with revenues under the law on reorganization and treatment of state-owned land and houses), non-business operating assets .
– Assets awaiting settlement decisions of competent agencies.
– Financial investments (contributing capital to joint ventures, contributing capital to establishing limited liability companies and other capital contribution activities) equal to the value of land use rights.
– Other assets (if any).
With detailed and specific regulations, Circular No.41/2018/TT-BTC is expected to provide a solid legal basis for the process of valuation of state-owned enterprises before equitization, thereby ensuring the transparency of this activity, avoid causing loss of state property.