Responsibility for Preparing Consolidated Financial Statements in accordance with Circular 202

Responsibilities for preparing consolidated financial statements according to Circular 202 (illustrative image)

In Article 5 of Circular 202/2014/TT-BTC, the specific responsibilities for preparing consolidated financial statements are stipulated as follows:

1. At the end of the accounting period, the parent company is responsible for preparing consolidated financial statements for the entire group, specifically:

The parent company, which is a listed organization on the stock market, a large-scale public company, and a state-owned parent company, must prepare annual consolidated financial statements and semi-annual consolidated financial statements in full format, and quarterly consolidated financial statements in summary format (can be prepared in full format if needed).

For parent companies that do not fall into the above categories:

- Must prepare annual consolidated financial statements in full format;- Encouraged to prepare mid-year consolidated financial statements in full or summary format (if needed).

2. The parent company is not required to prepare consolidated financial statements when all of the following conditions are met:

- The parent company is not a public interest entity;- The parent company is not state-owned or state-controlling in terms of capital;- The parent company is also a subsidiary owned by another company, and the waiver of preparing consolidated financial statements is agreed upon by shareholders, including non-voting shareholders;- The parent company's equity or debt instruments are not traded on any market (including domestic, foreign, over-the-counter (OTC), local, and regional markets);- The parent company is not filing or in the process of filing with an authority to issue financial instruments to the public;- The parent company's owning company prepares consolidated financial statements for public disclosure in accordance with Vietnamese Accounting Standards.

For more details, see Circular 202/2014/TT-BTC, effective from February 27, 2015.

Ty Na

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