Circular 202: Compilation of Cash Flows in the Statement of Cash Flows

Circular 202: Summary of cash flows during the period of the Cash Flow Statement (illustrative image)

Article 76 of Circular 202/2014/TT-BTC stipulates the compilation of consolidated cash flows during the cash flow statement period as follows:

1. Net cash flows during the period - Code 50

The item “Net cash flows during the period” reflects the difference between the total inflows and the total outflows from three types of activities: Business operations, investment activities, and financial activities of the enterprise during the reporting period.

Code 50 = Code 20 + Code 30 + Code 40

If the figure for this item is negative, it is recorded in parentheses (***).

2. Cash and cash equivalents at the beginning of the period - Code 60

This item reflects the balance of cash and cash equivalents at the beginning of the reporting period, including cash on hand, bank deposits, cash in transit, and cash equivalents.

This item is compiled based on the balance of cash and cash equivalents at the beginning of the reporting period - Code 110, column “Beginning balance” on the Consolidated Balance Sheet.

3. Effect of exchange rate changes - Code 61

This item reflects the total exchange rate differences due to the revaluation of the ending balance of cash and cash equivalents in foreign currency at the end of the reporting period and the exchange rate differences due to the conversion of financial statements of the subsidiary prepared in a currency different from the parent's accounting currency.

This item is compiled based on the Consolidated Statement of Income (detailed part of the revaluation difference of cash balance in foreign currency), the Consolidated Balance Sheet, the Cash Flow Statement of the parent company, and subsidiaries for the reporting period. The data for this item is determined by consolidating the corresponding items on the Cash Flow Statement of the parent company and subsidiaries and the exchange rate difference due to conversion of the financial statements of the subsidiary on the Consolidated Balance Sheet. This item can be recorded as either a positive or negative number in the form of being in parentheses (…).

4. Cash and cash equivalents at the end of the period - Code 70

- This item reflects the balance of cash and cash equivalents at the end of the reporting period, including cash on hand, bank deposits, cash in transit, and cash equivalents.- This item is compiled based on the balance of cash and cash equivalents at the end of the reporting period - Code 110, column “Ending balance” on the Consolidated Balance Sheet.

Code 70 = Code 50 + Code 60 + Code 61 + Code 62

See details at Circular 202/2014/TT-BTC effective from February 27, 2015.

Ty Na

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