Vietnam: What information does a sole proprietorship's financial statement for 2024 include?
Vietnam: What information does a sole proprietorship's financial statement for 2024 include?
Based on Article 111 of Circular 200/2014/TT-BTC, it is stipulated that in the 2024 financial statements, sole proprietorships must present the following general information:
- Name and address of the reporting enterprise;
- Clearly state whether these financial statements are the separate financial statements of the enterprise, consolidated financial statements, or group financial statements of the parent company;
- The end date of the accounting period;
- The date the financial statements were prepared;
- The currency unit used for bookkeeping;
- The currency unit used for preparing and presenting the financial statements.
Vietnam: What information does a sole proprietorship's financial statement for 2024 include? (Image from Internet)
What are requirements for information in the 2024 sole proprietorship's financial statement in Vietnam?
The requirements for information presented in the 2024 sole proprietorship's financial statement as stipulated by Article 101 of Circular 200/2014/TT-BTC are as follows:
(i) Information presented in the financial statements must accurately and reasonably reflect the financial situation, performance, and business results of the enterprise. To ensure accuracy, the information must have three qualities: completeness, objectivity, and absence of errors.
- Information is considered complete when it includes all necessary data to help users of the financial statements understand the nature, form, and risks of the transactions and events. For certain items, complete presentation may also require additional descriptions of quality, factors, and conditions that could affect the quality and nature of the item.
- Objective presentation means being unbiased in selecting or describing financial information. Objective presentation must ensure neutrality, refraining from emphasizing or diminishing aspects, or manipulating the information’s impact in a way that is advantageous or not advantageous to users of the financial statements.
- Absence of errors means no omissions in describing phenomena and no errors in the process of providing chosen and applicable reporting information. Absence of errors does not mean absolute accuracy in all respects; for example, estimating unobservable prices and values is difficult to determine as accurate or inaccurate. An estimate is considered truthful if its value is clearly described, the nature and limitations of the estimation process are explained, and there are no errors in selecting the appropriate data in the estimation process.
(ii) Financial information must be relevant to help users of the financial statements anticipate, analyze, and make economic decisions.
(iii) Financial information must be presented fully on all material aspects. Information is considered material if its absence or inaccuracy could affect the decisions of users of the financial information of the reporting entity. Materiality is based on nature and size, or both, of the items related to the specific entity’s financial statements.
(iv) Information must ensure verifiability, promptness, and comprehensibility.
(v) Financial information must be presented consistently and be comparable between accounting periods; comparability between different enterprises is also essential.
When is the deadline for submitting the 2024 sole proprietorship's financial statement in Vietnam?
According to point a, clause 1, Article 12 of the Accounting Law 2015, the fiscal year is 12 months, starting from January 01 to December 31 of the calendar year. Accounting units with specific organizational or operational characteristics may choose a fiscal year of 12 months aligned with the calendar year, starting from the first day of the first month of this quarter to the end of the last month of the previous quarter of the next year, and must notify the financial and tax authorities.
The deadline for submitting the 2024 sole proprietorship's financial statement is determined according to clause 2, Article 109 of Circular 200/2014/TT-BTC as follows:
- Accounting units that are sole proprietorships and partnerships must submit their annual financial statements no later than 30 days from the end of the fiscal year; for other accounting units, the deadline is no later than 90 days;
- Subordinate accounting units submit their annual financial statements to the superior accounting unit according to the deadline set by the superior accounting unit.
Therefore, for the accounting year of 2024, from January 01, 2024, to December 31, 2024, the deadline for submitting the 2024 sole proprietorship's financial statement is January 30, 2025.
