16. LONG-TERM PREPAID EXPENSES

 

 

Long-term prepaid expenses include cost of furniture, office equipment, repair and exterior decoration of the Company. These expenses are amortized to the consolidated income statement for the maximum period of 36 months. 
 
17. DEFERRED CORPORATE INCOME TAX ASSETS/ PAYABLES
 
Deferred corporate income tax assets/ payables arise due to following temporary differences that are non-deductible in term of corporate income tax:
 
 
18. PAYMENT FOR SETTLEMENT ASSISTANCE FUND
 
Payment for settlement assistance fund represents the amounts deposited at Vietnam Securities Depository.
 
According to Decision No. 57/QD-VSD dated 28 May 2012 issued by the General Director of the Vietnam Securities Depository, Decision No. 87/2007/QĐ-BTC dated 22 October 2007 by the Minister of Finance regarding the issuance of regulations on registration, custody, clearing and settlement of securities, Circular No. 43/2010/TT-BTC dated 25 March 2010 amending and supplementing the regulations on registration, custody, clearing and settlement of securities, Decision No. 27/QD-VSD dated 13 March 2015 on the promulgation of regulations on management and use of the settlement assistance fund by the General Director of the Vietnam Securities Depository; the Company must deposit an initial amount of VND120 million at the Vietnam Securities Depository and pay an addition of 0.01% of the total amount of brokered securities in the previous year, but not over VND 2.5 billion per annum. The maximum contribution of each custody member which is a securities company providing brokerage service to the Settlement Assistance Fund is VND 20 billion for custody members who are the Company with trading securities and brokerage activities.
 
Details of the payment for settlement assistance fund are as follows:
 
 
19. COLLATERALS AND PLEDGED ASSETS
 
As at the date of the consolidated financial statements, the following assets have been used as collaterals for borrowings: 

 

 

20. SHORT-TERM BORROWINGS AND FINANCE LEASE LIABILITIES

 

 

(1) This is the borrowing from Bank Sinopac of Hong Kong under contract No. BFL/HK/161019/238 with a total value of USD 6,000,000, initial interest rate of 2.97% per annum and contractual term of 3 months. As at 20 December 2018, this borrowing was rolled forward with the newest term from 20 December 2018 to 20 March 2019 and interest rate of 4.58963% per annum. The Company has hedged against foreign exchange risk of this borrowing by entering into a foreign currency forward contract with Bank for Investment and Development of Vietnam JSC as at 20 December 2018 with a total contract value of USD 6,068,844.45, term corresponding to term of loan contract with Bank Sinopac of Hong Kong and forward rate of VND 23,436 per USD. The difference between forward rate and spot rate is allocated over the duration of the contract and is recognized as an unrealized loss during the year.
 
(2) The Company’s borrowing from Orient Commercial Joint Stock Bank is under contract No. 0324/2018/HDTD-OCB-DN dated 2 August 2018. As at 27 December 2018, Orient Commercial Joint Stock Bank’s borrowing ownership was transferred to Huong Viet Real Estate JSC. 
 
21. BOND ISSUANCE 
 
 
SSIBOND012016 are ordinary bonds, which were issued in phase 1 in August 2016 under Resolution No. 03/2016/NQ/HDQT dated 28 July 2016 with a quantity of 200 bonds and par value of VND 1 billion per bond. These bonds are collateralized using the Company’s listed shares in accordance with the bond contracts. These bonds are secured have maturity of 2 years and interest at rate which is maximum of 1.2% per year and the average interest rate of 12 months savings deposit dominated in VND, published by JSC Bank for Foreign Trade of Vietnam (operation center), JSC Bank for Investment and Development of Vietnam (operation center branch No. 1), JSC Bank for Industry and Trade of Vietnam (Hanoi branch) and Vietnam International Commercial Joint Stock Bank (Ly Thuong Kiet branch, Hanoi). In 2018, all bonds matured with a par value of VND 200 billion. 
 
SSIBOND012017 are ordinary bonds, which were issued in phase 1 in January 2017 under Resolution No. 01/2017/NQ/HDQT dated 16 January 2017 with quantity of 600 bonds and par value of VND 500 million per bond. These are unsecured bonds, with a 2 year-term. Bond yields, in the first 12 months from the date of issue, are fixed at 8.5% per annum. For the remaining term of the bonds, they bears interest at rate which is maximum of 2% per year and the average interest rate of 12 months savings deposit dominated in VND, published by JSC Bank for Foreign Trade of Vietnam (operation center), JSC Bank for Investment and Development of Vietnam (operation center branch No. 1), JSC Bank for Industry and Trade of Vietnam (Hanoi branch) and Vietnam Bank for Agriculture and Rural Development (operation center). On the Interest Determination date, if any Reference Bank does not announce the Reference Interest rate, the Bond interest rate will be calculated on the basis of the average of the Reference Interest Rates from the remaining Reference Banks. As at 31 December 2018, the total number of bonds purchased by the Company was 90 bonds with the total par value of VND 45 billion.
 
SSIBOND022017 are ordinary bonds, which were issued in phase 2 in April 2017 under Resolution No. 05/2017/NQ/HDQT dated 21 April 2017 with a quantity of 600 bonds and par value of VND 500 million per bond. These bonds are collateralized using the Company’s listed shares and land use rights in accordance with the bond contracts. These bonds have maturities of 2 years and interest at rate which is maximum of 1.2% per year and the average interest rate of 12 months savings deposit dominated in VND, published by JSC Bank for Foreign Trade of Vietnam (operation center), JSC Bank for Investment and Development of Vietnam (operation center branch No. 1), JSC Bank for Industry and Trade of Vietnam (Hanoi branch), Vietnam Bank for Agriculture and Rural Development (operation center) and Vietnam International Commercial Joint Stock Bank (Head Office). In the year, the Company bought the entire bonds with the total par value of VND 300 billion.
 
22. CONVERTIBLE BOND 

 

 

On 9 February 2018, the Company completed the issuance of convertible bonds with par value of VND 1,150 billion, maturity of 3 years, and interest rate at 4% per annum and coupon payment period of every 6 months on the last working day of the period in accordance with Resolution No. 01/2018/NQ-DHDCD dated 12 January 2018 of the General Shareholders Meeting. These bonds can be converted into ordinary shares of the Company until maturity and the conversion right shall belong to bondholders. The number of bonds converted each time shall be not less than 30% of the total value of bonds issued and the number of conversion shall be no more than 03 times. At the time of conversion, the Company will issue new shares to convert bonds and the charter capital will then be increased accordingly.
 
Accounting for equity component and debt component of convertible bonds are in accordance with guidance in Circular 200/2014/TT-BTC. Discount rate used to determine the initial debt component and the interest expense is 7.76% per annum. The difference between the interest expense of bonds at the discount rate and nominal interest payable is periodically allocated to the convertible bonds - debt component.
 
23. PAYABLES FOR SECURITIES TRADING ACTIVITIES
 

 

24. PAYABLES TO SUPPLIERS 

 

 

25. TAXATION AND STATUTORY OBLIGATIONS

 

 

Details of taxation and statutory obligations: 

 

 

26. SHORT-TERM ACCRUED EXPENSES

 

 

27. OTHER SHORT-TERM PAYABLES

 

 

(1) Deposits from customers for purpose of purchasing represent cash deposits of customers related to securities brokerage and securities purchase contracts. The Company has commitment to use these deposits for purchasing securities as requested by customers.
 
(2) Principal payables of deposit management contracts are the summary of investor’s deposits received by the Company in accordance with the contracts.