THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No: 95/2006/TT-BTC
Hanoi, October 12, 2006
 
CIRCULAR
AMENDING AND SUPPLEMENTING THE FINANCE MINISTRY'S CIRCULAR NO. 126/2004/TT-BTC OF DECEMBER 24, 2004, WHICH GUIDES THE IMPLEMENTATION OF THE GOVERNMENT'S DECREE NO. 187/2004/ND-CP OF NOVEMBER 16, 2004, ON CONVERSION OF STATE COMPANIES INTO JOINT STOCK COMPANIES
In order to solve problems in the course of implementation of the Finance Ministry's Circular No. 126/2004/TT-BTC of December 24, 2004, which guides the implementation of the Government's Decree No. 187/2004/ND-CP on conversion of state companies into joint stock companies (referred to as Circular No. 126/2004/TT-BTC for short) and to guide the implementation of Article 6 of the Government's Decree No. 17/2006/ND-CP of January 27, 2006, amending and supplementing a number of articles of the Decrees guiding the implementation of the Land Law, the Ministry of Finance amends and supplements a number of points of Circular No. 126/2004/TT-BTC as follows:
1. To amend and supplement Point 2.2, Section B, Part II of Circular No. 126/2004/TT-BTC as follows:
"2.2. When obtaining the decision publicizing its value, the enterprise shall:
a/ Adjust the accounting book and the balance sheet based on that decision.
b/ Preserve and hand over its debts and assets (enclosed with relevant records) which have been excluded from its value to the Company Purchasing and Selling Outstanding Debts and Assets of Enterprises within 60 days after the publicization of its value.
c/ Fully account arising expenses related to the equitization.

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d/ Depreciate fixed assets in the period from the time of its valuation to the time of its official conversion into a joint stock company as follows:
- When the enterprise has made a financial statement according to the reporting period, it shall not adjust the depreciation level based on the new historical cost.
- When the enterprise has not yet made a financial statement, it shall adjust the depreciation level based on the new historical cost from the time of its valuation.
e/ If the period from the time the investor pays money for the purchase of shares to the time the company is granted a business registration certificate is longer than 3 months, the enterprise may calculate and pay interests on the paid money to the investors on the following principles:
- Interests on the total par value of the purchased shares shall be paid only from the fourth month on.
- The interest rate must not exceed the interest rate of short-term loans of the same term, set by commercial banks at the time of interest calculation.
- The payment of interests must not cause losses to the enterprise.
The enterprise may account these paid interests as its business expense.
f/ The distribution of profits generated from the time of enterprise valuation to the time of official conversion into a joint stock company shall comply with the current provisions of law on state companies."
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