D2D: Explains Auditing Company Opinions in H1/2012 Audited Financial Statements

Firstly, the fact that D2D recorded earnings from selling A1 apartment building and the area A1&A2-high-rise building at Nguyen Van Troi street, Quang Vinh ward, Bien Hoa city, Dong Nai province in 2011 and H1/2012 with VND63.45 billion and VND54.5 billion respectively was not appropriate with the accounting standard no. 14 – Revenue and other incomes. Costs of goods sold for this incomes were VND63.45 billion and VND48.6 billion respectively.

The firm said the firm recorded such incomes following the accounting standard no. 15 – Construction contract. This earning record was approved by DTL auditing company in 2011. However, in 2012, A&C Auditing and Accounting Co. opined that these should be accounted in accordance with the accounting standard no. 14.

Secondly, the company had not recorded earnings from transferring land use right at the market Quan Thu which had enough conditions to be recorded in H1/2012 with an amount of VND12.4 billion as the firm had not defined costs of goods sold for this income.

D2D explained that the firm released a value added tax invoice to transfer land use right of some land lots to its customers but had not accounted into revenue in order to define business results in H1/2012 because the firm was building costs of goods sold for investment of the project in general and costs of goods sold of each land lot in particular. The company will account that income in H2/2012.