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DAC: Explanation for auditor\u2019s exception opinion for financial statement of first 6 months of 2014
On 18 Aug
2014, Viglacera Dong Anh Joint Stock Company explained the auditor’s exception
opinion for financial statement of first 6 months of 2014 as follows:
1. Value of
commercial advantage: The auditor had exception opinion on value commercial
advantage of 1,175 million dongs pursuant to Circular No. 138/2012/TT-BTC dated
20 Aug 2012 of Ministry of Finance. Based on the financial statement, the
recorded value commercial advantage was intangible fixed assets valued at 3
billion dongs as at 30 Jun 2014; accumulated depreciation was 1,825 million
dongs; remaining value was 1,175 million dongs. However, since the Company
converted from State owned enterprise to Joint Stock Company in Oct 2003, the
Company has selected and registered for depreciation extraction duration of 20 years;
otherwise, based on Circular No. 138/2012/TT-BTC dated 20 Aug 2012 guiding
commercial advantage value distribution for Joint Stock Companies converted
from State owned companies, duration of commercial advantage value distribution
is not over 10 years
- In 2012 and
2013 and first 6 months of 2014, the Company did not adjust the commercial
advantages in accordance with Circular No. 138/2012/TT-BTC dated 20 Aug 2012 of
Ministry of Finance due to frozen real estate market, series of abandoned
property projects, high increase in bad debts of the bank system caused
enterprises producing tile, brick, fired clay to face difficulties in production,
investment and development. Many enterprises suffered losses, difficult finance
and insolvency to banks. As a result, the Board of Directors and Management
Board agreed not to adjust the commercial advantage value
2. Land
rental
- In 2011,
2012, the Company entered the land rental into the operation results according
to notice of Dong Anh Tax Department. In 2013, the Company recorded the land
rental of 2011 and 2012 twice less than land rental of 2010 with an amount of
1,163 billion dongs based on Decision No. 2093/QD-TTg dated 23 Nov 2011 of
Prime Minister
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