03 Key Points in Preparing Consolidated Financial Statements in Vietnam

03 Key Points in Preparing Consolidated Financial Statements in Vietnam

Circular 202/2014/TT-BTC specifies 03 important points in preparing Consolidated Financial Statements in Vietnam as follows:

1. Requirements for Consolidated Financial Statements

• Summarize and present a comprehensive view of the assets, liabilities, and equity at the end of the accounting period, the business performance and cash flows during the accounting period of the group as a single economic entity, disregarding the legal boundaries of separate legal entities such as the parent company or its subsidiaries;
• Provide economic and financial information to assess the financial status, business performance, and cash-generating ability of the group during the past accounting period and make predictions for the future, serving as a basis for decision-making regarding the management, operation, or investment in the group by owners, investors, current and future creditors, and other users of the financial statements.

2. Period for Preparing Consolidated Financial Statements

• The consolidated financial statements include annual and interim (quarterly, including Q4 and semi-annual) consolidated financial statements. The annual consolidated financial statement is prepared in full, while the interim consolidated financial statement can be prepared in full or summarized form;
• Both annual and interim consolidated financial statements comprise: the Consolidated Balance Sheet, the Consolidated Income Statement, the Consolidated Cash Flow Statement, and the Notes to the Consolidated Financial Statements.

3. Submission and Disclosure Deadlines for Consolidated Financial Statements

• The annual consolidated financial statement must be submitted to owners and relevant State management agencies no later than 90 days from the end of the fiscal year and publicly disclosed within 120 days from the end of the fiscal year. Parent companies in the public interest sector of securities must submit and disclose the annual consolidated financial statement as per the securities law regulations;
• The interim consolidated financial statements must be submitted to owners and relevant State management agencies no later than 45 days from the end of the accounting period. Parent companies in the public interest sector of securities must submit and disclose the interim consolidated financial statement as per the securities law regulations.

For details, refer to Circular 202/2014/TT-BTC which comes into effect in Vietnam from February 27, 2015.

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE