July 10, 2020 07:38

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Ministry of Finance rectifies violations in valuation

11:13 | 08/02/2020

VCN –The Department of Price Management under the Ministry of Finance has issued a written request to enterprises to strictly comply with laws on technical aspects on valuations.

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Illustrative photo: source: internet

The Department of Price Management has inspected valuationsat enterprises. According to the valuation, most of the inspected enterprises have complied with the regulations on management of valuations and Vietnamese valuation standards. Some of the shortcomings that inspected enterprisesin 2018 often encounteredwere less common in 2019, such as keeping valuation plans in the valuationrecords and using the second valuation method to check.

As a result, these enterprises had a better sense of compliance with the law on valuation and the former shortcomings were basically overcome. The quality evaluation of valuations in accordance with the new regulations gives a more comprehensive and accurate assessment of the quality and capacity of price appraisal enterprises.

However, there are still some technical shortcomings, some enterprises have acts of violation of law on valuation (such as failure to notify the Ministry of Finance of changes on the list of appraisers; delays in the submission of annual reports; failure to strictly follow the valuation process; valuation record archive not in accordance with law).

The inspection missionshave made records of administrative sanctions and sanctioned them according to regulations.

So far, about 300 price appraisal enterprises are operating with 1,400 appraisers in practice

It is mainly due to some enterprises that have not fully and promptlycomplied with the new regulations on valuation. Some enterprises have not performed well in reviewing and controlling the quality of internal valuation at enterprises. In addition, some appraisers still lack experience in valuation and professionalknowledge and market of appraisal assets, so there are no necessary appraisals and arguments to come to reasonable conclusion on the value of the appraisal assets.

In the dispatch, the Ministry of Finance asked the general director and directors of price appraisalenterprises to regularly update relevant legal documents and Vietnamese standards of price appraisal in the price appraisal process, and strictly and fully comply with the provisions of law, first of all the Vietnam Valuation Standard System.

In which, there are notes on fully and seriously implementing the valuation process, especially the survey, collection and analysis of information; making the actual survey records in the information collection form. Accordingly, the collected information must clearly indicate the source, be objective and honest, be checked and verified to ensure the reliability and quality before applying valuation methods to estimate the value of assets subject to appraisal. At the same time, all steps of calculation in each valuation method that the appraiser chooses must be performed.

In addition, the valuation enterprises need to issue a report on results of valuation and certificate of valuation in accordance with the form prescribed in Vietnam Valuation Standards; keep records as prescribed; review all the valuation records in accordance with the regulations, add missing documents and rectify the archives in compliance with regulations.

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In addition, the Department of Price Management has also requested the general director and directors of price appraisal enterprises to issue regulations on quality control of internal valuation of enterprises; regularly evaluate the quality of valuation activity of enterprises and promptly detect and immediately overcome errors in the valuation process.

By Hong Van/ Huyen Trang