05 latest cash flow statement forms in Vietnam

05 latest cash flow statement forms in Vietnam (Internet image) 

What is a cash flow statement?

A cash flow statement is a report that summarizes the cash flow in and out of a business during a certain period of time.

The Cash Flow Statement shows changes in assets, the ability to convert assets into cash as well as the ability to pay... In which:

- Cash outflow:

+ Expenses for purchasing stocks, raw materials, goods for business, or tools.

+ Payment of salaries, rent, and daily operating expenses.

+ Expenses for purchasing fixed assets - personal computers, machinery, office equipment, etc.

+ Payment of income.

+ Payment of income tax, corporate tax, value-added tax, and other taxes and fees.

- Cash inflow:

+ Customer payments for purchases of goods and services.

+ Interest on deposits from banks.

+ Savings interest, and investment return.

+ Shareholder investment.

05 cash flow statement forms in Vietnam

05 cash flow statement forms are specified in Circular 200/2014/TT-BTC.

- Direct annual cash flow statement

Báo cáo lưu chuyển tiền tệ năm trực tiếp

- Indirect annual cash flow statement

Báo cáo lưu chuyển tiền tệ năm gián tiếp

- Interim cash flow statement (full form) using the direct method

Báo cáo lưu chuyển tiền tệ giữa niên độ (dạng đầy đủ) - trực tiếp

- Interim cash flow statement (full form) using the indirect method

Báo cáo lưu chuyển tiền tệ giữa niên độ (dạng đầy đủ) - gián tiếp

- Mid-year cash flow statement (summary form)

Báo cáo lưu chuyển tiền tệ giữa niên độ (dạng tóm lược)

Meaning of cash flow statement in Vietnam

The cash flow statement is important for every business, helping administrators capture and analyze the business's revenue and expenditures.

Thanks to the cash flow statement, managers can know the relationship between net cash flow and profits. The report also clearly reflects the reason for the difference between the inflow and outflow of cash, helping corporate governance effectively balance revenue and expenditure.

In addition, the cash flow statement also helps administrators accurately identify and evaluate the ability to generate money from internal or external factors in the future, the ability to repay debt on time, and the business's need for additional capital.

Methods of preparing cash flow statements in Vietnam

Currently, there are two methods of preparing a Cash Flow Statement: direct method and the indirect method. Specifically:

- Method of preparing indirect cash flow statements

When preparing a cash flow statement using the indirect method, you must ensure that cash inflows and outflows are determined and calculated by adjusting profit before corporate income tax to avoid affecting non-cash items and specific monetary effects such as:

Non-cash expenses are the depreciation of fixed assets and provisions

Non-monetary profits and losses, such as profits and losses from exchange rate differences that the enterprise has not yet realized

Cash flows from investment activities where profit and loss are classified: real estate sales, loans, dividends, etc.

In addition, there are recorded loan costs...

In addition, there are also adjusted cash flows that continue with changes in working capital from business activities along with long-term prepaid expenses and other revenues and expenses (interest paid, corporate income tax paid, changes in prepaid expenses, etc.).

- Method of preparing direct cash flow statements

Under the direct cash reporting method, cash inflows and outflows are determined and presented by direct synthesis and analysis of the money spent, according to the revenue and expenditure content of the business and the accounting books.

When preparing a cash flow statement, you need to ensure the above principles to ensure the accuracy and legality of the report.

Chau Thanh

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