Tải bản đầy đủ - 83 (trang)
Business decisions Accounting The petitioners arguments

Business decisions Accounting The petitioners arguments

Tải bản đầy đủ - 83trang

Source: Official Journal of the European Union

2.3.1.1. Business decisions


Business decisions are decisions of firms regarding prices, costs, and inputs, including for instance raw materials, cost of technology and labor,
output, sales, and investment, made in response to market signals reflecting supply and demand, and without significant State interference in this regard,
and costs of major inputs substantially reflect market values.
Regarding the first criterion, six companies failed to demonstrate that their business decisions are made in response to market signals and without
significant State interference. Four of them operate under the obligation to export either all or a significant part of their production. The companies
concerned claimed that they were allowed to sell on their domestic market. However, their submission failed to give any relevant counter arguments. The
companies merely argued that they are free to ask for a modification of their investment license if they want to sell on their domestic market andor that
quantitative sales restriction have a tax purpose. In that respect, the Commission services cannot but note that the companies are apparently free to
remove this restriction from their investment license but did not request any modification during the investigation period nor thereafter. These companies
were thus still subject to a sales ratio and were therefore not able to take their business decisions in reaction to market signals. The claims were therefore
rejected. The two remaining companies were found to be entirely state owned with direct management links to the state. Both of these companies challenged
the fact that there was significant State interference but did not provide
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additional new arguments to substantiate their claims which were, therefore, rejected.

2.3.1.2. Accounting


Firms have on clear set of basic accounting records which are independently audited on line with International Accounting Standards IAS
and are applied for all purposes.
As far as the second criterion is concerned, seven companies failed to fulfill the condition. Three companies had no audited accounts nor published
financial statements. For three other companies, it could not be guaranteed that accounting records are in line with the IAS and applied for all purposes
since the auditors specifically mentioned in the published financial statements that the accounting statements are not interested to present the financial
position of the company in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Vietnam.
this was found to be in contradiction to the IAS norms which state in their Framework for the preparation and presentation of financial statements that
the objective of financial statement is to provide information about the financial position, performance and changes in financial position of an entity
that is useful to wide range of users in making economic decisions. In addition, any entity whose financial statements comply with IAS shall make
an explicit and unreserved statement of such compliance in the notes which is obviously not the case for these companies. For two of these companies,
significant problems have been raised by the auditors in their report and for one of them, the verification performed by the auditors was found to be highly
insufficient to guarantee the reliability of the accounts. The seven exporting
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producers concerned contested the conclusion. However, in view of the absence of audited accounts for three of them, the substantial problems raised
by the auditors themselves in their report for two others, and the significant remark made by the auditors concerning the last two companies, which clearly
warns the users that their accounts do not comply with the generally accepted accounting principles: the submission made by these seven companies did not
contain any new elements that would permit the Commission services to revise their conclusions. The claims were rejected.

2.3.1.3. Assets and carry over


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