One of the notable contents in the Draft amending Circular 91/2020/TT-BTC is the regulation on the amount of "ored after-tax profit not yet distributed" in the available capital of securities companies. Many companies have suggested clarifying this concept to avoid causing misunderstanding and applying it inconsistently in practice.
According to the reflection of a series of securities companies such as BIDV, VinaCapital, VNDIRECT, Bao Minh, VIX... currently, "undist distributed profits" on financial statements may include differences due to revaluation of assets according to market prices. Although these items increase accounting profits, they have not actually generated cash flow, so if included in available capital, it will not accurately reflect actual financial capacity.
Enterprises believe that it is necessary to clearly stipulate that: "undist distributed after-tax profit" used to calculate available capital does not include profits arising from the difference in asset valuation according to market price, because this is an uncertain amount and may fluctuate from time to time.
Some opinions also suggest that the phrase "implemented" should be removed from the regulation because the criteria for determination are unclear. Instead, it is advisable to clearly guide factors included in or excluded from this target in the financial report for unified application.
In response to those proposals, the Ministry of Finance has absorbed and adjusted the content of the Draft. Accordingly, the Ministry has revised the regulation to: "Undivided after-tax profit does not include the value of the amounts as prescribed in Clause 3, Article 5 and Clause 1, Article 7 of this Circular". These are items related to the difference in financial asset valuation and adjustment of increase/decrease value, which are for accounting only.
Explaining more clearly, excluding these uncertainties from un disbursed profits is to ensure that available capital honestly reflects the company's financial situation, avoiding the phenomenon of some businesses "beautifying" available capital by recording unrealistic profits.
However, the Ministry of Finance does not use the phrase "implemented" as in the old draft because the understanding may not be unified, there is no specific guidance in the current accounting regime. Instead, the regulation of excluding certain amounts will help companies have a clear basis when calculating and reporting available capital.
