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SAP: Explanation for audit exception in the FS year 2012
On 15/03/2012, Textbook Printing JSC in Hochiminh City explained the audit exception in the FS year 2012 on the prolong of project of Textbook Printing Factory in Cat Lai industrial zone, No.2 district, Hochiminh city as follows: Audit exception: The project’s building permit has over dated since 07/2012 and machines fixing permit since 09/2012. Therefore, the Expenses in progress of the contract was VND 2,099,549,453 (until 31/12/2012) in Work in process is not following the precautionary principle in accounting standards of Vietnam. Explanation of the Company: - In 2012, due to difficulties of the economy, the materials prices and input expenses went up; the goods had sold slowly. That caused the Company had to concentrated into carry on operating and maintaining jobs for labors. Besides, the bank rates were very high, then it was hard to get loans; the securities market was decreased seriously made the investors not concern to long-term projects. Therefore, the Company has not raised enough capital for the project following the progress. - The Company has issued the requirement for prolong project’s construction until 09/2013 and has been accepted by the Hochiminh city Industrial zone Management (issue No 736/BQL-PQLDA dated 05/03/2013). - Our opinion is the Expenses in progress of Cat Lai (VND 2,099,549,453) should be considered as land rent and put into Work in process, then Projects value result after the project finishing.
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