DETERMINATION OF HISTORICAL COST OF TANGIBLE FIXED ASSETS

DETERMINATION OF HISTORICAL COST OF TANGIBLE FIXED ASSETS ON A CASE-BY-CASE BASIS Procured tangible fixed assets 14. The historical cost of a procured tangible fixed asset consists of the buying price (minus (-) trade discounts and price reductions), taxes (excluding reimbursed tax amounts) and expenses directly related to the putting of the assets into the ready-for-use state, such as ground preparation expense; initial transportation, loading and unloading expense; installation and trial operation expense (minus (-) amounts recovered from products and wastes [...]

Read more...

RECOGNITION OF TANGIBLE FIXED ASSETS

RECOGNITION OF TANGIBLE FIXED ASSETS 06. Criteria for recognition of tangible fixed assets: To be recognized as tangible fixed assets, assets must meet simultaneously all the following four (4) recognition criteria: a/ Future economic benefits will surely be obtained; b/ Their historical cost has been determined in a reliable way; c/ Their useful life is estimated at more than one year; d/ They meet all value criteria according to current regulations. 07. Tangible asset accounting is classified by groups of assets of the same nature and [...]

Read more...

NET REALIZABLE VALUE

NET REALIZABLE VALUE AND SETTING UP OF THE INVENTORY PRICE DECREASE RESERVE 18. The value of inventories cannot be fully recovered when they become damaged, outmoded, their selling prices fall or the finishing and/or sale costs rise. The marking-down of inventories to the level equal to the net realizable value is compliant with the principle that assets must not be shown at a value higher than the realized value estimated from their sale or use. 19. At the end of the [...]

Read more...

DETERMINATION OF THE VALUE OF INVENTORIES

DETERMINATION OF THE VALUE OF INVENTORIES 04. Inventories are valued according to their original prices. Where the net realizable value is lower than the original price, they must be valued according to the net realizable value. ORIGINAL PRICES OF INVENTORIES 05 The original price of inventories consists of the purchasing cost, processing cost and other directly-related costs incurred for having the inventories stored in the present place and conditions. Purchasing cost 06. The purchasing cost of inventories consists of the buying price, non-refundable taxes, [...]

Read more...

Nature of Tests of Controls

Nature of Tests of Controls 30. The auditor selects audit procedures to obtain assurance about the operating effectiveness of controls. As the planned level of assurance increases, the auditor seeks more reliable audit evidence. In circumstances when the auditor adopts an approach consisting primarily of tests of controls, in particular related to those risks where it is not possible or practicable to obtain sufficient appropriate audit evidence only from substantive procedures, the auditor ordinarily performs tests of controls to obtain [...]

Read more...

Considering the Nature, Timing, and Extent of Further Audit Procedures

Considering the Nature, Timing, and Extent of Further Audit Procedures Nature 12. The nature of further audit procedures refers to their purpose (tests of controls or substantive procedures) and their type, that is, inspection, observation, inquiry, confirmation, recalculation, reperformance, or analytical procedures. Certain audit procedures may be more appropriate for some assertions than others. For example, in relation to revenue, tests of controls may be most responsive to the assessed risk of misstatement of the completeness assertion, whereas substantive procedures may [...]

Read more...

THE AUDITOR’S PROCEDURES IN RESPONSE TO ASSESSED RISKS

THE AUDITOR’S PROCEDURES IN RESPONSE TO ASSESSED RISKS GENERAL PROVISIONS 01. The purpose of this Vietnamese Standard on Auditing (VSA) is to establish standards and provide guidance on determining overall responses and designing and performing further audit procedures to respond to the assessed risks of material misstatement at the financial statement and assertion levels in a financial statement audit. 02. The auditor and the audit firm should obtain an understanding of the entity and its environment, including its internal control, sufficient to [...]

Read more...

AUDIT MATERIALITY

AUDIT MATERIALITY GENERAL PROVISIONS 01. The purpose of this standard is to prescribe the basic principles and procedures and guide the modes of application thereof to the responsibilities of auditors and audit firms when determining materiality in auditing financial statements and the relationship between materiality and audit risk. 02. When conducting audits, auditors must pay attention to materiality and its relationship with audit risk. 03. This standard shall apply to the audit of the financial statements and also to the audit of other [...]

Read more...

UNDERSTANDING OF BUSINESS SITUATION

UNDERSTANDING OF BUSINESS SITUATION   GENERAL PROVISIONS 01. This standard aims to prescribe the basic principles and procedures and guide ways of applying the basic principles and procedures in order to inquire into the business situation and the use of such knowledge in the process of auditing the financial reports. 02. To perform the auditing of financial reports, the auditors must have necessary and adequate understanding of the business situation in order to be able to assess and analyze events, operations and practical [...]

Read more...

Account 359- Provisions for bad debts

Account 359- Provisions for bad debts   1. Accounting principles: a) This account is used for reflecting funding for, treatment and reversal of allowance for uncollectible accounts in accordance with laws; b) As of the date of preparation of financial statements, microfinance institutions shall have to determine doubtful debts or uncollectible accounts in order to set aside funds for or reverse allowance for bad debts; c) Microfinance institutions must create provisions for bad debts in compliance with regulations on the applicable financial regime. The [...]

Read more...