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TRI: Explanation for setting up the integrated financial statement
Sai Gon Beverages Joint Stock Company (Tribeco) has explained about setting up the integrated financial statement Q2/2010 as follows:
According to the resolution of the shareholders’ meeting dated 15th June 2010, TRIBECO sold its capital contribution in the Binh Duong Tribeco JSC (VND117 billion or 1,170,000 shares) and the Northern Tribeco JSC (VND40 billion or 400,000 shares) with its initial investment value.
Under the accounting standards of the Ministry of Finance, business results of subsidiaries are recorded in the integrated financial statement from the purchase date when the parent company actually takes over the subsidiaries. Business results of liquidated subsidiaries are recorded in the integrated financial statement until the date of liquidation is the date when the parent company actually ends its control of subsidiaries.
Difference between receivables of liquidating subsidiaries and the remaining book value of assets minus payables of subsidiaries at the liquidation date is recorded in the integrated financial statement as profit/loss of liquidation of subsidiaries. In order to ensure comparison of financial statements between periods, companies need to provide information on impact of purchase and liquidation of subsidiaries on financial situation at the reporting date and effects to equivalent items in previous period.
For the reasons above, TRIBECO has set up the integrated financial statement Q2/2010 in order to reflect transference of capital contribution accurately and adequately.
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