Compilation of Data and Calculation of Indicators in the Preparation of Consolidated Financial Statements
Article 15 of Circular 99/2018/TT-BTC, effective January 1, 2019, stipulates the preparation of a comprehensive data summary and index calculation in the preparation of consolidated financial statements as follows:
During the preparation of consolidated financial statements, the superior accounting unit must prepare a data summary in accordance with the form prescribed in this Circular. This data summary serves as the basis for the superior accounting unit to prepare consolidated financial statements and supplement its financial information.
The data summary is prepared based on the financial reports of the base accounting units, the consolidated financial statements of the intermediary accounting units, and the supplementary financial information reports of the accounting units within the scope of the consolidated reports.
After summarizing the data, the superior accounting unit must eliminate internal transactions and compute the indices to be presented in the consolidated financial statements. The indices from which internal transactions must be eliminated in the consolidated financial statements are specifically as follows:
a) For the consolidated statement of financial position
- Eliminate balances as of the financial statement date for internal receivables, including items such as: receivables from customers, advances to suppliers, and other receivables.
- Eliminate balances as of the financial statement date for payable debts, including items such as: payables to suppliers, customer advances received, and other payables.
- Eliminate balances as of the financial statement date for financial investments and investment receivables (short-term and long-term) among units within the reporting entity.
b) For the consolidated statement of performance results
- Eliminate internal sales transactions during the year.
- Eliminate internal revenue transfer transactions wherein both the transferring unit and the receiving unit reflect the revenue in the performance result report.
c) For the consolidated cash flow statement
Eliminate cash flow transactions within the scope of the reporting entity's consolidated financial statements.
The data summary is preserved and stored by the superior accounting unit in the same manner as consolidated accounting books.
Above is the regulation on the preparation of comprehensive data summaries and index calculations in the preparation of consolidated financial statements.
Sincerely!
