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Prepare financial statements when converting a public non-business unit into a joint stock company

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The Ministry of Finance has issued Circular No. 26/2021 / TT-BTC guiding the accounting work when converting public non-business units into joint stock companies.

When a public unit transforms, it must make a report on the financial situation based on the business model at 2 times. Photo: KH

Circular No. 26/2021 / TT-BTC applies to organizations and individuals defined in Article 2 of the Government’s Decree No. 150/2020 / ND-CP on successful transfer of public non-business units (SNCL) Joint Stock Company (JSC).

According to the instructions, the transformed SNCL unit follows the financial mechanism applicable to SNCL units and accounts under the regulations of the administrative and non-business accounting regime issued together with Circular No. 107/2017 / TT -BTC until the time to officially convert to JSC.

JSC is converted from a SNCL unit operating under the provisions of the Enterprise Law, specialized laws and the current law provisions and accounting under the provisions of the corporate accounting regime issued together. According to Circular No. 200/2014 / TT-BTC for activities arising from the official time of transforming into JSC.

When a converted SNCL unit has to make a financial statement based on the business model at two times: Time of determining the value of the SNCL unit after having fully accounted for arising transactions related to arbitration. financial management to determine the unit value according to regulations; At the time of officially converting into a JSC after accounting for the financial settlement results at the time of officially converting into a JSC as a basis for handover to a JSC.

Steps to make a financial statement include:

Take steps to close accounting books according to the regulations of the administrative and non-business accounting regime.

Make a report on the financial situation in the form B01 / BCTC specified in the administrative and non-business accounting regime.

Analyzing detailed data based on accounting books, asset reassessment documents to convert, records of SNCL unit valuation results of other relevant documents.

Make a data conversion table according to the provisions of this Circular.

Based on the data of the data conversion table and instructions on setting up detailed indicators on the financial statement according to the model that the enterprise synthesizes the indicators according to instructions in Appendix 02.

Circular No. 26/2021 / TT-BTC takes effect from June 1, 2021. /.