The Ministry of Finance has issued Circular No. 26/2021/TT-BTC dated April 7, 2021 guiding the accounting work when converting public non-business units into joint stock companies. The Circular applies to organizations and individuals specified in Article 2 of Decree No. 150/2020/ND-CP dated December 25, 2020 of the Government on transforming public non-business units into joint stock companies effective from June 1, 2021.
According to the provisions of the Circular, the transformed public non-business units shall comply with the financial mechanism applicable to public non-business units and make accounting according to the provisions of the administrative and non-business accounting regime promulgated under the Circular No. 107/2017/TT-BTC dated October 10, 2017 of the Ministry of Finance.
There are two times when a public non-business unit is converted into a joint-stock company, which must make a report on its financial position, including: Firstly, the time to determine the value of the public non-business unit after having fully recorded the business activities arising cases related to financial handling to determine the unit value in accordance with regulations. Second, at the time of official transformation into a joint stock company (the time of initial registration of a joint stock company) after accounting for the results of financial handling at the time of official conversion into a joint stock company according to regulations as a basis for handing over to a joint stock company.
Statement of financial position in the form of an enterprise is a report of a converted public non-business unit prepared to serve the process of transforming into a joint stock company, which is built on the basis of a statement of financial position. prepared according to the administrative and non-business accounting regime and relevant documents on the determination of unit value according to the form with the criteria corresponding to the balance sheet prepared according to the corporate accounting regime.
The report on the financial position in the form of an enterprise prepared by the entity at the time of valuation of the public non-business unit shall be used as a publication document enclosed with the prospectus.
Report on the financial situation in the form of an enterprise prepared by the public non-business unit after it is officially converted into a joint stock company (at the time of first registration of a joint stock enterprise) as a basis for asset handover, liabilities and capital sources of non-business units for joint-stock companies; open the accounting books of a joint-stock company when commencing operations under the Law on Enterprises.
Circular No. 26/2021/TT-BTC stipulates that reporting on the financial situation according to the enterprise model must be reflected honestly and objectively on the content and value of the reported indicators. The content of the report is presented according to a strict and systematic structure of the financial situation at the time of valuing the public administrative unit and the time when the public administrative unit is officially transformed into a joint stock company.
The report on the financial position according to the enterprise model must be prepared in a timely manner, within the prescribed time for each time, and presented clearly, easily and accurately, accounting information and data. The content of the report must be honest, objective, and systematically presented on the financial situation at the time of valuing the public administrative unit and the time the public administrative unit is officially successfully transformed to joint stock company.
The unit must analyze the existing accounting data on the basis of detailed accounting books according to the closed administrative and non-business accounting regime, documents on asset re-valuation and other documents. other relevant information to ensure compliance with the content of indicators reflected in the financial position statement according to the enterprise template to prepare the report.
The Circular also guides the way of accounting for a number of detailed operations related to financial handling before the time the public non-business unit is transformed into a joint stock company.
Source: Hướng dẫn công tác kế toán khi chuyển từ đơn vị sự nghiệp công lập thành công ty cổ phần