Under the new Circular of the Minister of Finance of Vietnam, how must an equitized enterprise prepare its financial statements?
On July 24, 2026, the Minister of Finance of Vietnam promulgated Circular No. 108/2026/TT-BTC providing accounting guidelines for the equitization of enterprises wholly owned by the State.
According to the Circular, financial statements prepared upon the equitization of an enterprise wholly owned by the State (hereinafter referred to as an “equitized enterprise”) shall comply with the following requirements:
(i) At the time of preparing financial statements as prescribed by the law on equitization, if the equitized enterprise still has outstanding equitization-related receivables or payables, it shall add items to the Statement of Financial Position prepared using the form prescribed under its applicable accounting regulations to reflect such receivables and payables. Specifically:
- The item “Other short-term receivables (Code 135)” shall include the detailed debit balance of Account 1385-Receivables from equitization;
- The item “Other short-term payables (Code 320)” shall include the detailed credit balance of Account 3385-Payables from equitization.
(ii) In addition to the items required to be disclosed under its applicable enterprise accounting regulations, the equitized enterprise shall disclose the following information in the Notes to the Financial Statements:
- Receivable debts excluded from the value of the equitized enterprise, as prescribed, that the enterprise retains for continued monitoring, management, and recovery;
- Payable debts that have not been confirmed by creditors and have been accounted for as an increase in state capital in accordance with the law on equitization, but which the joint-stock company continues to assume and monitor to fulfill its repayment obligations at the creditors’ request, if any;
- The balance of exchange-rate differences arising from the revaluation of foreign-currency-denominated monetary items at the time of official conversion into a joint-stock company, which is transferred to the joint-stock company following the conversion of the state-owned enterprise for monitoring and handling in accordance with regulations;
- The number of shares received as stock dividends that are under state ownership. The equitized enterprise shall disclose the increase in the number of shares in the Notes to the Financial Statements, etc.
See more details in Circular No. 108/2026/TT-BTC effective as of July 24, 2026.
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