SECURITIES COMPANIES MUST NOTE TO FINANCIAL STATEMENTS
On March 12, 2018, the Ministry of Finance issues the Circular No. 23/2018/TT-BTC on accounting for covered warrants of securities companies being issuers.
Accordingly, each securities company must provide the following additional notes: Profit (loss) from reassessment of warrants of the issuer; Profit (loss) from reassessment of underlying assets for hedging warrant risks of the issuer; Total amount of margins provided for securing payment obligations at depository banks of the issuer; Total amount of margins additionally provided for hedging due to the difference between the theoretical and actual risk hedging positions; Total number of securities used for hedging; Total number of warrants to be issued; Total number of outstanding warrants.
There are some accounts used to record transactions in covered warrants, including: Account 329 – Payable warrants; Sub-accounts of account 112 - Bank deposits are opened to monitor sums for securing payment obligations at a depository bank before the offering of warrants, sums deposited in escrow account; Account 018 – Warrants.
This Circular takes effect on April 27, 2018.
