04 Principles for Conducting Enterprise Valuation by the Asset Method

13:53, 11/07/2024

Circular 122/2017/TT-BTC has been issued by the Ministry of Finance regarding Vietnamese Valuation Standard No. 12.

Appraisal of enterprises' assets according to the asset-based approach is based on the principles stipulated in Circular 122 as follows:

- The assets considered during the appraisal process include all assets of the enterprise, both operating and non-operating assets.- When appraising an enterprise based on market value, the value of the enterprise's assets is the market value of those assets at the time of appraisal.- Intangible assets that do not meet the conditions to be recorded in the accounting books and assets not recorded in the accounting books must apply an appropriate appraisal method to determine their value.- For assets accounted for in foreign currency: the foreign exchange rate is determined based on the buying rate of the commercial bank where the enterprise has the largest foreign currency transactions at the time of appraisal.

More details can be found in Circular 122/2017/TT-BTC effective from January 1, 2018.

- Thanh Lam -

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