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Auditor’s report on the composition and value of an enterprise as an asset complex

Auditor's report on the composition and value of the enterprise as an asset complex is a required document during state registration of rights for an enterprise as an asset complex. This opinion report differs from the auditor's report on financial statements as a whole, the report on composition and value of enterprise as an asset complex is expressed only relative to assets and liabilities value as of specific date.

The enterprise as an asset complex is recognized as real estate and may be subject to purchase and sale (item 1 and 2 art. 132 of the Civil Code).

The enterprise as an asset complex includes all property designated for its business function (if otherwise is not specified by law or by contract). This may include land, buildings, equipment, inventory, claims, accounts payable, accounts receivable, exclusive rights (commercial name, trademarks, service marks, and so on).

The enterprise sales agreement is considered concluded from the moment of state registration (§ 3 of Art. 560 of the Civil Code).

According to article 560 of the Civil Code the enterprise as an asset complex sales agreement is a single document signed by the parties. The agreement must be accompanied by a set of documents referred to in § 2 of Article 561 of the Civil Code. These include the enterprise balance sheet, an independent auditor’s report on the composition and value of the enterprise, inventory act, a list of all debts (liabilities) owed by the enterprise, indicating the lenders, nature, size and timing of their claims. Failure to comply with the form of agreement entails its invalidity. A complete list of required documents is published on State Register’s web page.

EY performs independent audit assignments for audit of enterprise as an asset complex composition and value as well as issuing such a report in conjunction with audit of the whole financial statements for a client. The latter assumes a significant discount for price of services.

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