Headlines 10/05/2021 15:11 CH

Business valuation standards in force as of July 1, 2021

Đình Thiên

Ministry of Finance issues the Circular No. 28/2021/TT-BTC dated April 7, 2021 regarding business valuation standard No. 12.

According to this document, instructions for valuation of public service units transformed into joint stock companies as follows:

When applying the asset-based approach under Article 23 in the Decree No. 150/2020/ND-CP dated December 25, 2020,

Brands of public service units are valued according to the approach of valuation of unvaluable intangible assets specified in Part II (subparagraph a of paragraph 5.5 of section 5) of the business valuation standard No. 12.

This is an approach for estimation of total intangible assets in a target company through estimation of value of each valuable or unvaluable intangible asset (residual intangible assets).

Indicators for income of a public service unit are determined according to laws on financial autonomy mechanism of a public service unit.

Circular No. 28/2021/TT-BTC is entering into force as of July 1, 2021, replacing the Circular No. 122/2017/TT-BTC dated November 15, 2017.

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