THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 100/2005/QD-BTC
Hanoi, December 28, 2005
 
DECISION
ON THE ISSUANCE AND PUBLICATION OF SIX VIETNAMESE STANDARDS ON ACCOUNTING (BATCH 5)
THE MINISTER OF FINANCE
- Pursuant to the Law on Accounting No. 03/2003/QH11 dated June 17, 2003;
- Pursuant to Governmental Decree No. 77/2003/ND-CP dated July 1, 2003 on the functions, jurisdictions and organization of the Ministry of Finance;
- In response to the requirement of economic and financial management reform, improvement of the qulaity of accounting information provided in the mantional economy and examination and verification of accounting practice.
Upon the proposal of the Director of the Accounting and Auditing Policy Department and Chief of the Ministry Office,
DECIDES:
Article 1. To issue four (04) Vietnamese Standards on Accounting (Batch 5) with the codes and titles specified:
- Standard 11 Business Combination;
- Standard 18 Provisions, contingent assets and liabilities;
- Standard 19 Insurance Contract;
- Standard 30 Earning Per Share.
Article 2. Four (04) Vietnamese Standards on Accounting issued folowing this decision shall be applicable nation-wide to enterprises of all industries and economic sectors.
Article 3. This Decision shall come into effect 15 days after it is published in the Official Gazette. Individual accounting regulations and systems shall be amended and supplemented in accordance with the four (04) Vietnamese Standards on Accounting issued hereby.
Article 4. The Director of the Accounting and Auditing Policy Department, the Ministry Office Chief, and heads of relevant affiliate and subsidiary units of the Ministry of Finance shall be responsible for guiding
 
 
FOR THE MINISTER OF FINANCE
DEPUTY MINISTER


Tran Van Ta
 
VIETNAMESE STANDARDS ON ACCOUNTING
STANDARD 11
BUSINESS COMBINATION
(Issued in pursuance of the Minister of Finance Decision No. 100/2005/QD-BTC dated 28 December 2005)
GENERAL
01. The objective of this Standard is to prescribe the accounting policies and procedures in relation to business combinations using the purchase method. The acquirer recognizes identifiable assets and liabilities and contingent liabilities at their fair value on the acquisition date, thereby goodwill is recognized.
02. This Standard should be applied to business combinations using the purchase method.
03. This Standard does not apply to:
(a) Business combinations in which separate entities or businesses are brought together to form a joint venture.
(b) Business combinations involving entities or businesses under common control.
(c) Business combinations involving two or more mutual entities.
(d) Business combinations in which separate entities or businesses are brought together to form a reporting entity by contract alone without the obtaining of an ownership interest.
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