Year-end asset inventory is crucial because it helps businesses accurately determine their existing assets, ensuring transparency in financial reporting, detecting and addressing discrepancies, preventing asset losses and misrepresentation. Inventory activities also help businesses tightly manage their assets and capital, and serve purposes such as management, mergers, acquisitions, or company splits. Many businesses neglect asset inventory without realizing the consequences.
This article will provide detailed guidance for businesses on how to implement and comply with current legal regulations.
I. Regulations on asset inventory and timing of implementation
1. What is an asset inventory?
According to the Clause 1 Article 40 Accounting Law No. 88/2015/QH13 The regulation dated November 20, 2015 stipulates:
" Inventory of assets involves weighing, measuring, and counting the quantity; confirming and evaluating the quality and value of existing assets and capital at the time of inventory in order to verify and compare them with the data in the accounting records. "
Businesses use the asset and capital figures in their financial statements to determine which items require inventory checks, such as cash, inventory, fixed assets, tools and equipment, and other related items.
2. When should an asset inventory be conducted?
According to the regulations at Clause 2 Article 40The accounting unit must conduct an inventory in the following cases:
- At the end of the accounting year;
- The accounting unit is divided, separated, merged, acquired, dissolved, ceases operations, goes bankrupt, or is sold or leased;
- The accounting unit has undergone a change in type or form of ownership;
- Fires, floods, and other unusual damages occur;
- Re-evaluate assets according to the decision of the competent state authority;
- Other cases as prescribed by law.
3. Some notes
➤ After inventoryThe accounting unit must Prepare a summary report of the inventory results..
➤ In case of data discrepancies Between the actual inventory count and the figures recorded in the accounting books, the accounting unit must... identify the cause and must Reflecting the difference, the processing results Enter into the accounting books before prepare financial statements.
The inventory must be conducted. accurately reflects reality Assets, sources of asset formation. The person who prepares and signs the consolidated inventory report is responsible for the inventory results.
II. Administrative penalties for failure to conduct inventory
According to the Article 16 Decree No. 41 / 2018 / ND-CP March 12, 2018, regarding penalties for violations of regulations on asset inventory:
1. A fine of between 1,000,000 VND and 2,000,000 VND will be imposed. for any of the following acts:
- Failure to prepare a consolidated inventory report or the inventory report lacking the required signatures;
- It does not reflect the difference and the results of handling the difference between the actual inventory figures and the accounting records.
2. A fine of between 3,000,000 VND and 5,000,000 VND will be imposed. regarding the behavior No asset inventory was conducted. as per regulations.
III. Steps to conduct year-end inventory
Step 1: Issue and publish the Inventory Decision;
Step 2: Establish an Inventory Council comprising:
- The Director, representing the Company, serves as the Chairman of the Board;
- Heads of departments and divisions that directly use the assets;
- Chief Accountant, Asset Accountant;
- Other members if needed.
Step 3: The inventory committee meets and prepares an inventory plan, including a list of the company's assets.
Step 4: Conduct the inventory as planned (notify the auditing firm to participate as a witness to the inventory, if applicable).
Step 5: Compile the results, prepare an inventory report, identify the causes of discrepancies, process the data, and submit it for approval.
IV. Sample forms for implementation
Businesses apply the Corporate Accounting System according to Circular 200 / 2014 / TT-BTC You can refer to the following forms when conducting an asset inventory at your company:
- Cash inventory form:
- Cash inventory sheet for VND (Form 08a –TT);
- Inventory sheet for foreign currency and gold. (Form 08b-TT).
- Inventory count form: Inventory record of materials, tools, products, and goods. (Form 05-VT).
- Fixed asset inventory form: Minutes of the fixed asset inventory (Form 05-TSCĐ).
Within the scope of this article, EXPERTIS Hopefully, this will help businesses better understand the regulations regarding asset inventory at the end of the fiscal year. For other issues requiring consultation, please contact our Consulting Department for prompt assistance.
📑 Excerpt from the law:
- Accounting Law No. 88/2015/QH13 Article 40. Inventory of assets
- Decree No. 41 / 2018 / ND-CP – Article 16. Penalties for violations of regulations on asset inventory.
- Circular 200 / 2014 / TT-BTC – Guidelines for the Corporate Accounting System.