SOEs to review assets and liabilities in July

A plan to review and re-evaluate the existing assets and debts of many state-owned enterprises will be effective as of July, as stated in the newly-issued draft circular by the Ministry of Finance.

Enterprises to undertake the review and re-evaluation process are those with significant total assets, whose book values are no longer consistent with market values, the ministry said.

The enterprises will have to re-evaluate and declare all their fixed assets, including properties, real estate, stock investment as well as assets that are gifted, donated, rented or deposited for safekeeping.

As for liquid assets, SOEs have to inventory all capital in their possession in the forms of cash, foreign currency, gold and precious stones, bank deposits, credit certificates as well as joint venture capital.

The enterprises will also have to inventory all the debts they owe the government, their staff and internal departments or affiliated agencies.

If approved, the auditing process will start on July 1 and the final report is to be submitted to the Ministry of Finance before November 30. – Tuoitre

Posted by VBN on Jun 1 2011. Filed under Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry