Procedure for Consolidating the Balance Sheet and Income Statement in Vietnam

22:49, 10/07/2024

Recently, the Ministry of Finance issued Circular 202/2014/TT-BTC guiding the methods of preparing and presenting consolidated financial statements in Vietnam.

Trình tự hợp nhất Bảng CĐKT và báo cáo kết quả hoạt động kinh doanh, Thông tư 202/2014/TT-BTC

Procedure for Consolidating the Balance Sheet and Income Statement in Vietnam

Circular 202/2014/TT-BTC stipulates the Procedure for consolidating the Balance Sheet and Income Statement between the parent company and its subsidiaries in Vietnam as follows:

Aggregate the items in the Balance Sheet and Income Statement of the parent company and its subsidiaries in the group.
Eliminate the entire book value of the parent company's investment in each subsidiary, the net assets held by the parent company in the equity of the subsidiary, and recognize goodwill or gain from a bargain purchase (if any).
Allocate goodwill (if any).
Separate non-controlling interests.
Eliminate all intra-group transactions.
Prepare the Consolidated Adjustment Entries Sheet and the Consolidated Items Summary Sheet. After preparing the adjustment entries, based on the difference between the increase and decrease adjustment amounts of the items in the Income Statement, the accountant shall make transfer entries to reflect the total impact arising from revenue and cost adjustments on undistributed post-tax profits.
Prepare the consolidated financial statements based on the Consolidated Items Summary Sheet after adjustments and eliminations for intra-group transactions.

More details can be found in Circular 202/2014/TT-BTC which comes into effect in Vietnam from February 27, 2015.

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

0 lượt xem

- This translation is generated by OpenAI's GPT-4o model;
- The legal regulations in this article are according to Vietnamese Law;
- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email banquyen@lawnet.vn