My Nguyễn
Pursuant to the Minister of Finance’s Circular No.
24/2022/TT-BTC dated April 7, 2022 on amendments to the Circular No.
48/2019/TT-BTC , providing instructions about creation and management of provisions for devaluation of inventories, loss of investments, bad debts and warranties for products, goods, services or construction works at enterprises, below are types of securities subject to the provisioning requirement for protection against investment losses:
- Securities subject to the provisioning requirement are types of securities issued by domestic business entities in accordance with law and under the ownership of enterprises:
+ listed or registered for their business transactions to be performed on the domestic securities market;
+ enjoying freedom to trade securities on the market at the actual price determined at the time of completion of annual financial statements which is less than the book value of investments in securities.
- Government bonds, Government-guaranteed bonds and municipal bonds are exempted from such provisioning requirement (This is a new regulation).
Circular No. 24/2022/TT-BTC is entering into force as of May 25, 2022.
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