DST: Explanation for auditor's opinion in financial statement of 2013
Nam Dinh
Educational Book and Equipment JSC explained auditor's opinion in financial
statement of 2013 approved on 12 March 2014 as follows:
1. Auditor’s
opinion: The Company had not set aside sufficient provision for inventory
depreciation for books, stationary hard to sell. The provision had to be supplemented
with VND 91,306,122. The entering the inventory as above was not in compliance
with the prudence in Accounting Standards of Vietnam and Circular No. 228/2009/TT-BTC
dated 07 Dec. 2009 of Ministry of Finance. If entering the above provision into
“Inventory” (code 140) of the balance sheet, there would be a decrease of VND
91,306,122. At the same time, indicator “cost of goods sold” in the operating
result report would increase by VND 91,306,122; indicators “corporate income
tax expense” and “profit after tax” would shrink by VND 22,826,531 and VND
68,479,591 respectively.
2.
Explanation: The inventory was mainly reference books of previous years of
which contents were not outdated. Since the business in 2013 was difficult, the
Company had not made sufficient provision for inventory depreciation as
prescribed.
The Company
would make provision for the above goods gradually in the following years and
actively do promotions to the schools to sell the above inventory
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