New accounting guidance for equitization of State-owned enterprises applies from July 24, 2026

Circular No. 108/2026/TT-BTC, issued by the Ministry of Finance on July 24, 2026, provides guidance on accounting for the equitization of enterprises wholly owned by the State.

Under Clause 1, Article 2 of Circular No. 108/2026/TT-BTC, the Circular applies to parent companies of economic groups, parent companies of State corporations, parent companies in parent company–subsidiary groups, and independent single-member limited liability companies wholly owned by the State.

In addition, Clause 2, Article 2 provides that the Circular also applies to owner representative agencies, direct owner representatives, and other relevant agencies, organizations, and individuals.

During the equitization process, enterprises shall apply Circular No. 108/2026/TT-BTC to account for economic transactions directly related to equitization. Other transactions shall continue to be accounted for under the accounting regime applicable to the enterprise, as prescribed in Clause 1, Article 3. Where an equitization-related transaction is not specifically addressed by the Circular, enterprises shall account for it based on the substance of the transaction, the legislation on equitization, the Law on Accounting, the Vietnamese Accounting Standards, and the Circulars guiding the implementation of those standards, in accordance with Clause 2, Article 3.

The Circular also provides detailed guidance on accounting for the inventory, classification, and settlement of assets and liabilities under Articles 4–8, and for provisions, profits or losses, investment capital, and funds under Articles 9–12. Notably, Clause 1, Article 13 requires enterprises to open Account 1385 – Receivables from Equitization and Account 3385 – Payables from Equitization to separately record transactions related to the equitization process.

When preparing financial statements, Clause 1, Article 16 requires enterprises to present receivables from equitization under “Other Short-term Receivables” and payables from equitization under “Other Short-term Payables.”

Furthermore, from July 24, 2026, the accounting guidance on equitization previously provided in various articles and clauses of Circular No. 200/2014/TT-BTC is repealed, pursuant to Clause 2, Article 17 of Circular No. 108/2026/TT-BTC.