DAC: Explanation for negative profit in 2012 compared to 2011

[congtythienlong]

On 13/03/2013, Viglacera Dong Anh JSC explained the audit opinion and negative profit in 2012 as follows:

• Audit opinion

-Auditors requested to recognize goodwill amount of VND735.7 million according to Circular 138/2012/TT-BTC dated 20/8/2012
-In FS, goodwill was recorded as intangible fixed assets with historical cost of VND3 billion. As of 31/12/2012, the accumulated amortization was VND1.6 billion, the rest amount was VND1.4 billion. However, the company applied depreciation period for 20 years since conversion into Joint Stock Company in 2003 while the company must apply depreciation period for not longer than 10 years according to Circular 138/2012/TT-BTC dated 20/8/2012

• Negative profit

-Income in 2012 were VND19.9 billion higher than the same period of 2011, leading to negative profit after tax of VND 4.5 billion
-Freezing real estate market led to difficulties in consumption market, reduction in consumption volume and selling price, higher cost of land lease, particularly at VND1.46 billion in 2012.

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