Circular No. 87/2011/TT-BTC guides the inventory and revaluation of assets and capital of state-owned enterprises with 100% state-owned charter capital at 00:00 on July 1, 2011, pursuant to Decision No. 352/QĐ-TTg dated March 10, 2011, of the Prime Minister.

CIRCULAR

Guidelines for inventorying, re-evaluating assets and capital of enterprises wholly owned by the state at 00:00 on July 1, 2011 pursuant to Decision No. 352/QD-TTg dated March 10, 2011 of the Prime Minister

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Pursuant to the Enterprise Law dated November 29, 2005;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 25/2010/NĐ-CP dated March 19, 2010 of the Government on converting state-owned companies into limited liability companies with one member and organizing management of such limited liability companies with the State as the sole owner;

Pursuant to Decision No. 352/QD-TTg dated March 10, 2011 of the Prime Minister on piloting inventorying and re-evaluating assets and capital of certain enterprises wholly owned by the state at 00:00 on July 1, 2011;

The Ministry of Finance issues guidelines for inventorying and re-evaluating assets and capital of enterprises wholly owned by the state at 00:00 on July 1, 2011 pursuant to Decision No. 352/QD-TTg dated March 10, 2011 of the Prime Minister as follows:

Article 1. Scope of Application and Regulatory Scope

Enterprises implementing the pilot inventorying and re-evaluating assets and capital at 00:00 on July 1, 2011 are enterprises under State-owned Groups and Corporations holding 100% of the charter capital and approved by relevant Ministries managing industries, People's Committees of provinces and centrally-run cities based on proposals from said Groups and Corporations in accordance with Article 2 of Decision No. 352/QD-TTg dated March 10, 2011 of the Prime Minister.

Article 2. Object of inventorying, principles for re-determining value:

1. Object of inventorying:

1.1. Inventory all assets under the management and use of the enterprise:

a) For fixed assets (Tangible Fixed Assets): inventory all tangible fixed assets currently held by the enterprise, including those leased out, assets kept in custody, gifts, donations, found property within the enterprise’s management area, intangible fixed assets (rights to issue; copyrights, patents; trademarks; computer software; licenses and license rights; other intangible fixed assets).

b) For unfinished construction projects, inventory all parts of the project and sub-projects invested in directly. If contracted out to Party B, only inventory completed parts of the project and sub-projects handed over by Party B and accepted for payment by Party A. Uncompleted construction projects not yet accepted for payment by Party A are considered current assets (unfinished production and business costs) of Party B.

c) For land assets: conduct an inventory of all land areas managed by the enterprise, including land allocated, transferred, rented...

d) For current assets:

- All types of raw materials, materials in stock, tools and equipment in storage, finished goods, semi-finished goods in stock, tools and equipment already issued for use, goods purchased but still in transit, goods sent for sale, various unfinished production and business costs...

- All types of monetary funds including cash in the fund, money in transit, bank drafts, gold, silver, precious metals, precious stones, and certificates equivalent to money, various deposits at banks, including money taken for joint ventures and associations, foreign currencies in the fund and deposited in banks...

- All financial investment assets such as: long-term securities investments, joint venture contributions, other long-term investments, short-term securities investments, other short-term investments; short-term and long-term margin deposits; other types of assets.

e) Accounts receivable such as: receivables from customers, advance payments to suppliers, internal receivables, other receivables...

1.2. Inventory accounts payable and owners' equity of the enterprise:

a) Accounts payable include short-term and long-term loans, long-term debts, payables to suppliers, prepayments from buyers, taxes and other payments due to the state, payables to employees, payables to internal units, other payables, other debts.

b) Total owners' equity includes: investment capital of owners, surplus of share capital, other capital of owners, revaluation surplus of assets, exchange rate differences, development investment fund, financial reserve fund, other reserves belonging to owners' equity, undistributed post-tax profit, basic construction investment capital, enterprise restructuring support fund (if any), reward and welfare fund, operating funds, funds that have formed fixed assets.

2. Principles for re-determining value:

2.1. For fixed assets: re-determine the value of all fixed assets according to the principle:

- Remaining value of revalued fixed assets = Original cost x (multiplied by) remaining quality of fixed assets (%)

Where:

+ Original cost: taken from the market price at the time of inventory on July 1, 2011, if there is no market price, then take the price guided by relevant Ministries managing industries, or the price of similar assets.

+ Remaining quality of fixed assets: determined based on the actual remaining quality of fixed assets and calculated as a percentage (%).

- Certain fixed assets with special characteristics that cannot apply the above principle shall be carried out according to the guidance of relevant Ministries managing industries. In cases where there is no guidance from the relevant Ministries managing industries, take the book value at the time of inventory.

- Specifically, newly acquired fixed assets from July 1, 2008 to July 1, 2011, newly completed construction projects within three years before the inventory date (from July 1, 2008 to July 1, 2011), and intangible fixed assets do not need to be revalued, take the book value at the time of inventory.

2.2. For current assets:

a) Re-determine the value of raw materials, materials, tools, equipment, goods, finished products, semi-finished products in stock for more than 12 months up to the inventory date. Particularly, assets that are poor quality, deteriorated, stagnant, slow-moving, unnecessary, awaiting liquidation must be re-determined in value regardless of the period in stock.

Principle for revaluation: revaluation based on market value at the time of inventory (July 1, 2011). For low-quality, deteriorated, stagnant, slow-moving current assets awaiting liquidation, the remaining value is determined = Market price of similar or equivalent assets x (multiplied by) actual remaining quality percentage. In case there is no market price, take the book value at the time of inventory.

b) Types of monetary capital with foreign currency basis: valuation shall be carried out according to the average inter-bank exchange rate published by the State Bank of Vietnam at the time of July 1, 2011. For foreign currencies without an exchange rate against the Vietnamese Dong (VND), use the cross-rate with USD published by the State Bank of Vietnam to convert to VND at the time of July 1, 2011.

2.3. For land assets: revaluation of the value of land use rights shall be conducted in accordance with the guidelines of the Ministry of Natural Resources and Environment.

2.4. For financial investments, revaluation shall be carried out as follows:

a) Securities investment:

Principle for revaluation: based on the trading price on the market at the time of inventory:

- For listed securities: the average trading price on July 1, 2011 for securities listed on the Hanoi Stock Exchange (HNX) or the closing price on July 1, 2011 for securities listed on the Ho Chi Minh City Stock Exchange (HOSE).

- For unlisted securities on the stock market, the actual market price of securities shall be determined as follows:

+ For companies that have registered for trading on the over-the-counter market of public companies not yet listed (UPCom), the security price is the average trading price on the system on July 1, 2011.

+ For companies that have not registered for trading on the over-the-counter market of public companies not yet listed, the security price is determined as the average price based on the trading price on July 1, 2011 provided by a minimum of three (03) securities companies.

In case the market price of securities cannot be determined, take the book value on July 1, 2011.

- For listed securities that have been delisted or suspended from trading, take the book value at the date of the balance sheet preparation on June 30, 2011.

b) Investment in other enterprises (investment to establish a single-member limited liability company, investment to establish a two-member limited liability company, investment in joint ventures, associated companies):

The long-term investment value of the enterprise in other enterprises is determined based on:

- The proportion of the enterprise's investment capital to the charter capital or total contributed capital in other enterprises;

- The net asset value in other enterprises according to the audited financial statements. If not audited, base it on the net asset value according to the most recent financial statement of the enterprise to determine;

- In case the investment capital is in foreign currency, convert it to Vietnamese Dong (VND) according to the average inter-bank foreign exchange transaction rate published by the State Bank of Vietnam at the time of inventory.

2.5. For receivables and payables: only revalue receivables and payables with a foreign currency basis.

Principle for revaluation: take the average inter-bank exchange rate published by the State Bank of Vietnam at the time of July 1, 2011.

For foreign currencies without an exchange rate against the Vietnamese Dong (VND), use the cross-rate with USD published by the State Bank of Vietnam to convert to VND at the time of July 1, 2011.

Article 3. Guidelines for inventory:

1. Inventory of Assets:

1.1. For fixed assets (Inventory Form 01/PKK, Inventory Sheets from No. 01/FAS to No. 04/FAS):

a) Inventory Form 01/PKK is used for one fixed asset; Based on Inventory Form 01/PKK to compile into Inventory Sheets 01/FAS, 02/FAS, 03/FAS, 04/FAS.

b) Physical indicators: determine quantity, capacity, quality, condition, and usage status of fixed assets according to accounting records and actual conditions.

c) Value indicators: original cost, depreciation value, and remaining value of fixed assets. Specifically, for fixed assets whose value has been reassessed, calculate based on the recorded value in accounting books and the reassessed value.

d) Analyze and evaluate to classify assets into groups and usage status: in use, not needed, no longer needed, damaged awaiting liquidation.

1.2. For current assets:

a) For monetary capital, inventory is conducted by type of currency: Vietnamese dong and other foreign currencies (if any) (Inventory Sheet 05/IIS).

b) For current assets such as raw materials, materials, tools, equipment, inventory goods, finished products, semi-finished products, tools and equipment that have been issued for use: conduct inventory according to:

- Physical indicators: quantity, quality, usage condition (inventory surplus not needed, deteriorated quality) according to accounting records and actual conditions.

- Value indicators: according to the recorded value in accounting books and actual value (Inventory Sheet 08/IIS).

1.3. Financial investments: stocks, bonds, joint venture assets, long-term financial investments, long-term investment impairment reserves, short-term financial investments... (Inventory Sheet 09/IIS).

1.4. For receivables: determine value based on the balance in accounting records for each receivable, reconcile with invoices and supporting documents for each receivable; classify receivables into short-term receivables (receivables not exceeding one year from the date of occurrence); long-term receivables (receivables from one year or more from the date of occurrence); overdue receivables (receivables due but not collected), including overdue receivables classified as: overdue for one year, overdue for two years, and overdue for three years or more; For difficult-to-collect receivables, clearly record the amount and reasons for non-collection (Inventory Sheet 10/IIS).

1.5. For credit organizations conducting inventory: inventory of receivables (loans) is carried out as follows:

- Reconcile assets and loan balances (including off-balance sheet loan balances) as follows:

+ Base on the credit files of each customer at the credit organization to prepare a list of customers with outstanding loan balances and the balance of each customer's loan, detailed by each credit contract.

+ Reconcile the figures determined from the credit files with the accounting records of the credit organization; reconcile the loan balance with each customer to obtain confirmation from the customer regarding the loan balance. For individual customers, if reconciliation with the customer cannot be organized, the credit organization must reconcile with the storage card.

+ In case there is a discrepancy between the figures in the credit files and the accounting records and customer confirmation, the commercial bank must clarify the cause of the discrepancy and determine the responsibility of related organizations and individuals to handle according to current regulations of the State.

- For financial lease assets: must reconcile with each customer, clearly determine the remaining debt for each financial lease asset.

2. Inventory of sources of funds:

2.1. Inventory of liabilities payable: The inventory indicator is the value of liabilities payable according to the recorded value in accounting books; classify liabilities payable according to indicators: short-term liabilities, long-term liabilities, other liabilities; not yet due, overdue, including overdue for one year, two years, three years or more, classified by major creditors: government debt, bank debt, employee debt, foreign debt, payable but not required to be paid (Inventory Sheet 12/IIS).

For credit organizations conducting inventory: Inventory and reconcile customer deposits, deposit certificates such as promissory notes, bills of exchange, bonds... (loans) as follows:

- Conduct detailed inventory for each item on the accounting books.

- Reconcile and confirm the deposit balance of corporate customers.

- Savings deposits, personal deposits, deposit certificates may not be reconciled directly with customers, but must be reconciled with the storage card. For specific cases (with large deposit balances or discrepancies between accounting records and storage cards), direct reconciliation with customers should be carried out.

2.2. Inventory of equity sources: All equity sources include: owner's investment capital, other owner's capital, revaluation differences, exchange rate differences, development investment fund, financial reserve fund, undistributed post-tax profit, construction investment capital, enterprise restructuring support fund (if any) and other operating funds, other funds (Inventory Sheet 13/IIS).

Article 4. Inventory Methods.

1. Prior to conducting the inventory, enterprises shall perform the following:

1.1. Distribute profits for the year 2010. Do not distribute profits generated in the first six months of 2011.

1.2. Close accounting books.

1.3. Prepare a settlement report at the time of June 30, 2011 according to regulations (determine the quantity and value of each asset and current capital recorded in the accounting books up to 00:00 on July 1, 2011).

2. Conduct the inventory using the actual inventory method, compare with figures in the accounting books, specifically:

2.1. Weigh, measure, gauge, and count each asset to determine quantity and value.

2.2. For receivables, payables, financial investments, intangible assets (rights to issue; copyrights, patents; trademarks; computer software; licenses and franchise rights; other intangible fixed assets) must be compared with invoices and supporting documents (for receivables and payables, each debt must be individually verified and confirmed by the debtor and creditor).

2.3. Compare actual inventory figures with those recorded in the accounting books. Identify discrepancies, causes, and responsibilities for excess or shortage of assets.

3. For certain specialized assets that cannot apply the above methods, follow the guidelines provided by relevant Ministries for each type of asset.

Article 5. Consolidation, Submission of Reports, Approval of Inventory Results, and Revaluation of Assets and Capital (hereinafter referred to as the inventory report):

1. Enterprises conducting the inventory, revaluation of assets and capital at 00:00 on July 1, 2011 shall be responsible for:

1.1. Establishing an Inventory Steering Committee including:

- The Chairman of the Board of Members or the Company Chairman (for companies without a Board of Members) as the Head.

- The General Director (Director) of the company as a member.

- Representatives from the Party Committee, Trade Union, Youth League as members.

- Heads of departments: accounting, auditing, technical as members.

1.2. The implementation of inventory and revaluation of assets and capital: enterprises may conduct their own inventory and revaluation or hire consulting firms with asset valuation functions to assist in the inventory and revaluation process according to Ministry guidelines. Inventory and revaluation costs shall be implemented based on the principle of thrift and direct service to the work, with the level of expenditure decided and responsible by the General Director (Director) of the enterprise and allowed to be included in the reasonable expenses of the enterprise when determining corporate income tax.

1.3. Enterprises organize the inventory and revaluation of assets and capital, prepare and submit the inventory report (including signed and stamped forms of the unit) to the Parent Company (Group, Corporation) before October 30, 2011, which includes explanations of surplus and shortages due to inventory and increases or decreases in asset and capital values due to revaluation (if applicable).

1.4. Parent Companies - Groups, Corporations shall review, consolidate (according to the review report form), analyze reports, send them to the relevant Ministry (or Provincial People's Committee) for approval of the inventory and revaluation results, and simultaneously send to the Ministry of Finance for monitoring and supervision before November 30, 2011.

2. Ministries, People's Committees of provinces and centrally-administered cities with enterprises participating in the pilot inventory and revaluation shall examine and approve the inventory and revaluation results of each enterprise, notify the Parent Company (Group, Corporation), and the enterprise conducting the inventory, while sending to the Ministry of Finance before January 1, 2012. The Ministry of Finance shall be responsible for analyzing, evaluating, and consolidating issues needing improvement during the pilot inventory at 00:00 on July 1, 2011, provide guidance on handling inventory results, and report to the Prime Minister before February 28, 2012 for the Prime Minister to consider and decide on a comprehensive inventory and revaluation of assets and capital for all state-owned enterprises with 100% state ownership.

Article 6. Inventory system:

1. Inventory forms and tables:

1.1. Form 01/PKK: Inventory and revaluation form for fixed assets;

1.2. Table 01/FIXAS: Machinery, equipment, and transportation vehicles belonging to the company's fixed assets;

1.3. Table 02/FIXAS: Buildings and structures belonging to the company's fixed assets;

1.4. Table 03/FIXAS: Tools and management equipment belonging to the company's fixed assets;

1.5. Inventory form for working animals, animals for products, and long-term crops belonging to the company's fixed assets (according to the guidelines of the Ministry of Agriculture and Rural Development);

1.6. Table 04/INV: Intangible fixed assets (rights to issue; copyrights, patents; trademarks; computer software; licenses and franchise rights; other intangible fixed assets) of the company;

1.7. Table 05/INV: Inventory table for funds and deposit certificates with cash value of the company;

1.8. Table 06/INV: Inventory table for unfinished production and business costs of the company (according to the company's current model);

1.9. Table 07/INV: Inventory table for unfinished construction projects of the company (according to the company's current model);

1.10. Table 08/INV: Inventory table for raw materials, supplies, tools, equipment, goods, finished products in stock; tools and equipment that have been issued for use by the company;

1.11. Table 09/INV: Inventory table for financial investments of the company;

1.12. Land inventory form of the company (according to the guidelines of the Ministry of Natural Resources and Environment);

1.13. Table 10/INV: Inventory table for receivables of the company;

1.14. Table 11/INV: Inventory table for other current assets of the company;

1.15. Table 12/INV: Inventory table for payables of the company;

1.16. Table 13/INV: Inventory table for equity capital of the company;

2. Reporting forms for inventory results:

2.1. Form 1 INF/DN: Identification information about the company;

2.2. Form 2 INV/DN: Inventory report on the company's assets:

a) Form 2a INV/DN: Inventory report on the company's receivables;

b) Form 2b INV/DN: Inventory report on the company's raw materials, supplies, tools, equipment, goods, finished products in stock;

c) Form 2c INV/DN: Inventory report on the company's fixed assets;

2.3. Form 3 INV/DN: Inventory report on the company's capital sources:

a) Form 3a INV/DN: Inventory report on the company's payables (classified by repayment period);

b) Form 3b INV/DN: Inventory report on the company's payables (classified by domestic and foreign debt);

2.4. Report on land as fixed assets of the company (according to the guidelines of the Ministry of Natural Resources and Environment);

2.5. Form 4 INV/DN: Summary table of inventory results and asset revaluation of the company;

3. Reporting form for reviewing inventory results and asset revaluation of the company;

4. Approval form for inventory results and asset revaluation of the company.

Article 7. Implementation Organization

This Circular takes effect from the date of signature. During implementation, if there are any difficulties, please promptly reflect them to the Ministry of Finance for timely resolution./.