What is a financial statement in Vietnam? When to submit a financial statement in Vietnam?

What is a financial statement in Vietnam? What does the content of a financial statement include in Vietnam?

According to Article 97 of Circular 200/2014/TT-BTC, the purposes of financial statement is as follows:

Purposes of financial statement

1. Financial statements are used to provide information about financial situations, trading performance and cash flows of enterprises, meet the requirements for management of employers, regulatory agencies and useful demands of users in making economic decisions. Financial statements must provide information about an enterprise about :

a) Assets;

b) Liabilities;

c) Equity;

d) Revenue, other income, production and business costs and other expenses;

dd) Profit, loss and allocation of income ;

e) The cash flows.

2. In addition to this information, an enterprise must also provide other information in the "Notes to the Financial Statements" for further explanation of standards recorded in general financial statements and accounting policies applied to record the economic transactions arising, preparation and presentation of financial statements.

Currently, the concept of a financial statement is not specifically recognized in any document. In practice, a financial statement can be understood as a summary presentation of the financial and business performance of a business over a specific period of time.

The content of the financial statement must provide information about the following issues of a business:

- Assets;

- Liabilities;

- Equity;

- Revenue, other income, production and business costs and other expenses;

- Profit, loss and allocation of income ;

- The cash flows.

What is a financial statement in Vietnam? When to submit a financial statement in Vietnam? (Image from the Internet)

When to submit a financial statement in Vietnam?

According to Article 109 of Circular 200/2014/TT-BTC, the deadline for submission of financial statements is as follows:

Deadline for submission of financial statements

1. For state-owned enterprises

a) Deadline for submission of quarterly financial statements:

- Accounting unit must submit quarter financial statements at the latest 20 days from the end of the quarterly accounting period; It is at the latest 45 days for the parent companies, state-owned general companies;

- accounting unit affiliated enterprises, state-owned general companies submit quarter financial statements to parent companies, general companies under the time limit set by parent companies, general companies.

b) Deadline for submission of annual financial statements:

- Accounting unit must submit annual financial statements at the latest 30 days from the end of the annual accounting period; It is at the latest 90 days for the parent companies, state-owned general companies;

- Accounting unit affiliated state-owned general companies submit annual financial statements to parent companies, general companies under the time limit set by parent companies, general companies.

2. For other types of enterprises

a) Accounting unit being private enterprises and partnership must submit annual financial statements at the latest 30 days from the end of annual accounting period; for other accounting units, the deadline for submission of annual financial statements is within 90 days;

b) Subordinate accounting unit affiliated submit annual financial statements to superior accounting unit within the time limit given by the superior accounting units

Therefore, depending on whether it is a state-owned enterprise or another type of business (accounting unit), the deadline for submission of financial statements as follows:

(1) For state-owned enterprises

a) Deadline for submission of quarterly financial statements:

- Accounting unit must submit quarter financial statements at the latest 20 days from the end of the quarterly accounting period; It is at the latest 45 days for the parent companies, state-owned general companies;

- accounting unit affiliated enterprises, state-owned general companies submit quarter financial statements to parent companies, general companies under the time limit set by parent companies, general companies.

b) Deadline for submission of annual financial statements:

- Accounting unit must submit annual financial statements at the latest 30 days from the end of the annual accounting period; It is at the latest 90 days for the parent companies, state-owned general companies;

- Accounting unit affiliated state-owned general companies submit annual financial statements to parent companies, general companies under the time limit set by parent companies, general companies.

(2) For other types of businesses

a) Accounting unit being private enterprises and partnership must submit annual financial statements at the latest 30 days from the end of annual accounting period;

For other accounting units, the deadline for submission of annual financial statements is within 90 days;

b) Subordinate accounting unit affiliated submit annual financial statements to superior accounting unit within the time limit given by the superior accounting units

When changing the accounting period, how do businesses prepare and present annual financial statements in Vietnam?

Based on Article 103 of Circular 200/2014/TT-BTC stipulating the principles of preparation and presentation of financial statements when changing the accounting period as follows:

Principles of preparation and presentation of financial statements when changing the accounting period.

When changing the accounting period, for example, change the accounting period from the calendar year into accounting period other than calendar year, enterprises must close accounting books, prepare financial statements in accordance with the following principles:

1. The change in the accounting period must comply with the provisions of the Law on Accounting. When changing the annual accounting period, accountants must prepare a separate financial statements for the period between the two accounting periods of the previous financial year and the new financial year, for example:

Enterprises with the accounting period in 2014 under calendar year. In 2015, enterprises switch to the annual accounting year starting from April 1 of previous year to March 31 of the next year. In this case, enterprises must establish separate financial statements for the period from January 01, 2015 to March 31,2015.

2. For the Balance Sheet: All balances of assets, liabilities and equity of the accounting period prior to switch are recorded  the opening balance of the new accounting period and are presented in the "Beginning".

3. For income statements and cash flow statements: Figures from the time of change of the accounting period to the end of the first reporting period are shown in column "This time". Figures of previous 12 months equivalent to the accounting period of current year are presented in the "previous"

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