What is method and order of preparing financial statement according to the enterprise template in Vietnam?
What is method and order of preparing financial statement according to the enterprise template in Vietnam? What is a business model financial statement conversion table in Vietnam?
What is method and order of preparing financial statement according to the enterprise template in Vietnam?
In Article 10 of Circular 26/2021/TT-BTC, the unit prepares the financial position statement according to the enterprise template according to the following steps:
- Take steps to close accounting books according to the regulations of the administrative and non-business accounting regime.
- Prepare a report on the financial situation according to the form B01/BCTC prescribed in the administrative and non-business accounting regime.
- Analyze detailed data based on accounting books, documents on re-valuation of assets for conversion, records on results of valuation of public non-business units and relevant documents other.
- Make a data conversion table according to the provisions of this Circular.
- Based on the data on the Data Conversion Table and instructions on setting detailed targets on the Financial Situation Statement according to the enterprise template, summarize the indicators according to the instructions in Appendix 02 " Report on financial situation according to the enterprise model” attached to this Circular.
What is a business model financial statement conversion table in Vietnam?
In Article 13 of Circular 26/2021/TT-BTC, the data conversion table in the financial position statement according to the enterprise template is as follows:
1. Purpose
Data conversion table is a document that converts detailed data according to the accounts of the converted public non-business unit in order to prepare a financial statement according to the enterprise model.
The data conversion table at the time of official transformation into a joint stock company is also the basis for handing over and recording the initial books of the joint stock company according to the corporate accounting regime.
2. Request
The data conversion table is made at two times: the time of determining the unit value and the time of officially converting it into a joint stock company.
The data conversion table must be prepared in a timely manner, in accordance with the prescribed form, fully analyzed the existing detailed content, and properly reflected the nature of the transactions arising at the unit.
3. Basis for determining data on the data conversion table
- Detailed accounting books of the unit according to the administrative and non-business accounting regime after the accounting books have been closed. The figures in the accounting books must reflect all economic and financial transactions arising at the unit, which have been properly recorded and recorded in accordance with regulations, including financial handling during the conversion process.
- Document to redefine the value of assets for the conversion process
- Dossier on results of valuation of public non-business units.
- Other relevant documents.
4. Principles of determining detailed data on the Data Conversion Table
a) Data of converted items are taken according to the re-evaluated value, if the detailed criteria do not have regulations on re-valuation, they shall be taken according to the remaining balance on the accounting books of the company at the reporting date, unless otherwise specified.
b) Some criteria must be classified in detail
In order to prepare a statement of financial position according to the enterprise format, an entity must make a detailed classification of the balances of a number of accounts at the reporting date on the Conversion Table, specifically as follows:
- Balance of financial investments at the reporting date: On the basis of detailed accounting books to monitor financial investments, documents re-evaluating the value of remaining investments at the reporting date, You must perform the classification according to the appropriate criteria in order to establish the financial investment target on the financial position statement according to the enterprise format. In which, short-term investments with a maturity of not more than 3 months from the date of investment are readily convertible into a known amount of cash and are subject to no risk of conversion into cash at the reporting time, are classified as cash equivalents.
- Balance of receivables from customers, prepayments to sellers and other receivables at the reporting date: The entity must classify according to the remaining collection period of no more than 12 months to convert to corresponding short-term targets and over 12 months to convert into corresponding long-term targets.
- Inventories: Classify equipment, supplies and spare parts with an expected reserve period of more than 12 months to set targets for long-term equipment, supplies and spare parts.
- Fixed assets: Based on the value of fixed assets at the time of reporting, the unit must reclassify fixed assets according to the standards and identify fixed assets applicable to the enterprise, as follows:
+ Fixed assets that are eligible for recognition as fixed assets according to regulations applicable to enterprises, are converted into fixed assets.
+ Fixed assets that are not eligible to be recognized as fixed assets according to regulations applicable to enterprises, the unit considers and classifies them as short-term prepaid expenses or long-term prepaid expenses in accordance with reality at the reporting time.
- Balance of purchase of fixed assets which are in unfinished or unfinished state (accounting in Account 241- Construction in progress): Reclassification shall be carried out, accordingly, for assets that are eligible for recognition Fixed assets according to the enterprise shall be transferred to the corresponding fixed asset purchase account, for the remaining uncompleted assets, they shall be transferred to inventory.
- Remaining balance for payables to suppliers, pre-receipts from customers, other payables: The unit shall classify the amounts with the remaining payment term not exceeding 12 months to convert into corresponding short-term targets and over 12 months to convert into corresponding long-term targets.
- Balance of loan payables: After the unit compares and confirms all payables with organizations and individuals to ensure that they are exactly matched, classification of payables can be made. The remaining payment term does not exceed 12 months to convert into short-term loan targets and over 12 months to convert into long-term loans at the reporting time.
- Prepaid expense balance: The unit makes the classification at the time of reporting the amount of prepayment for the provision of goods and services within a period not exceeding 12 months to convert it into a short prepaid expense term and over 12 months to convert into long-term prepaid expenses at the reporting time.
5. The form and method for making the data conversion table are specified in Appendix 1 "Data conversion table" attached to this Circular.
Best Regards!
