ANNOUNCING VIETNAM VALUATION STANDARD
On November 15, 2017, the Ministry of Finance promulgated Vietnamese Valuation Standard 12 - business valuation Standard at Circular No. 122/2017/TT-BTC.
Normally, the value of business is going concern value. If the valuer considers that the company will go out of business after the valuation time, the value of business is limited or liquidation value.
The final business value can be determined by the weighted average of the results of the applied valuation methods. The weighing factor for each approach is based on the reliability of each method, input data, valuation purposes, etc., which are suitable for the market.
Financial statements to be used in business valuation include: Annual financial statements, audited annual financial statements, interim financial statements, reviewed interim financial statements, audited financial statements at the valuation time. In which, regarding the same data and item, the order of precedence is below: Data and item of the latest financial statement made closely to the valuation time shall be given priority; At the same time, data and items of the audited or reviewed financial statement shall be given priority.
This Circular takes effect on January 01, 2018.
