Circular No. 10/2019/TT-BTC dated February 20, 2019 of the Ministry of Finance on guiding the valuation of assets formed by science and technology tasks using central capital

CIRCULAR

GUIDING THE VALUATION OF ASSETS FORMED BY SCIENCE AND TECHNOLOGY TASKS USING CENTRAL CAPITAL

Pursuant to the Law on Management and Use of Public Asset dated 21 June 2017;

Pursuant to the Law on Science and Technology dated  June 18, 2013;

Pursuant to the Law on Technology Transfer dated  June 21, 2017;

Pursuant to the Law on Prices dated  June 20, 2012;

Pursuant to the Government’s Decree No. 70/2018/ND-CP dated  May 15, 2018 regulating the management and use of assets formed through the implementation of scientific and technological tasks used state capital;

Pursuant to the Government's Decree No. 87/2017/ND-CP dated  July 26, 2017 stipulating the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the request of the Director of Department of Price Management;

Minister of Finance issues the Circular guiding the valuation of assetsgenerated by scientific and technological tasks using central capital.

Chapter I. GENERAL PROVISIONS

Article1. Scope of regulation

This Circular guides the valuation of assets formed by scientific and technological tasks using central capital (fully or partly funded by state budget) for the purposes of transferring the ownership and use right regarding those assets.

Article 2. Subjects of implementation

This Circular shall apply to the objective as followings:

1. Agencies which manage scientific and technological tasks using state capital.

2. Agencies, organizations and individuals that are entitled with ownership and use rights of those assets formed by scientific and technological tasks using state capital (hereinafter referred to as entitled agencies, organizations and individuals).

3. Valuation enterprises; competent and experienced service providers with the function of providing price consultancy being hired to valuate and consult the value of assets formed by scientific and technological tasks.

4. Other organizations and individuals related to valuation of assets generated by scientific and technological tasks.

Chapter II

VALUATION OF ASSETS FORMED BY SCIENTIFIC AND TECHNOLOGICAL TASKS

Article 3. Competence and method of asset valuation

1. Agenciesin charge of managing scientific and technological tasks having competence to valuate the assets formed by scientific and technological tasks shall submit plan for settlement and decision of considered assetsto the authorized authorities or individuals.

Agenciesin charge of managing scientific and technological tasks are authorized to hire valuation enterprises or competent and experienced organizations with the function of providing price consultancy to conduct valuation and providing valuation services or consultancy on valuation of assets formed by scientific and technological tasks.

2. Methods forassetvaluation are methods prescribed under Article 7, Article 8, Article 9 and Article 10 of this Circular. In case of two or more methods applied, it is recommended to assess and specify which method is the main method, which method is used to check and compare the results, thereby analyzing and calculating to come up with the final conclusion about asset value.

Article 4. Steps of asset valuation

The valuation of assets generated by scientific and technological tasks is carried out in the following steps:

1. Valuation of assets formed by scientific and technological tasks:

a) Identifying characteristics of assets formed by scientific and technological tasks (legal, economic, technical and other characteristics);

b) Determining such valuation result purposes and objects, time of valuation and valuation basis of process for asset valuation;

c) Selecting methods of assetvaluation stipulated under Article 7, Article 8, Article 9 and Article 10 of this Circular;

d) Conducting surveys, investigating, collecting relevant information and data (for example, investment expenditure for such tasks, market prices, costs incurred and income generated from commercialization of results of scientific and technological tasks, etc.);

d) Analyzing and processing information and data;

e) Valuating the results of scientific and technological tasks based on selected method.

2. Preparation of reports on the valuation results or reports on the results of asset valuation of assets as stipulated under Article 11 of this Circular, followed by submission of such reports to the authorized authorities for consideration and decision of value of assetsformed by scientific and technological tasks.

Article 5. Basis for valuation of assets formed by scientific and technological tasks

1. Scope of entitlement: assignment of ownership or assignment of asset use rights formed by scientific and technological tasks.