Vietnam: What is financial statement? Regulations on financial statements according to Circular 200

Vietnam: What is financial statement? Regulations on financial statements according to Circular 200 (Internet image)

1. What are financial statements?

According to Clause 1, Article 3 of the Law on Accounting 2015, financial statement means a system of financial information of an accounting unit demonstrated according to a form provided for by accounting standards and accounting regime.

2. Financial statements of the State in Vietnam

- Financial statements of the State are made according to consolidation of financial statements of regulatory agencies, public service agencies, business organizations, and relevant units of the State, used for consolidating and describing financial conditions of the State, result of financial activities of the State, and cash flow thereof nationwide and of each administrative division.

- Financial statements of the State provide information about revenues and expenditures of state budget, public funds, public debts, state capital in enterprises, assets, sources of capital, and use of state capital. Financial statements of the State include:

+ Financial condition statement;

+ Statement of financial activity result;

+ Cash flow statement;

+ Note to financial statements of the State.

- Financial statements of the State are made as follows:

+ The Ministry of Finance shall make nationwide financial statements, submit them to the Government for reporting to the National Assembly; direct State Treasuries to take charge and cooperate with finance authorities in making financial statements of local governments and submitting them to the People’s Committees of provinces for reporting to the People’s Councils of provinces;

+ Other regulatory agencies, public service agencies, business organizations, and relevant units shall make their own financial statements and provide financial information serving the making of nationwide and local financial statements.

- Financial statements of the State shall be made and submitted to the National Assembly or the People’s Council at the same time as the state budget statement according to the Law on State budget.

- The Government shall promulgate specific regulations on financial statements of the State; the making and publishing of financial statements of the State; responsibility of agencies, units, and local governments for provision of information serving the making of financial statements of the State.

(Article 30 of the Law on Accounting 2015)

3. Disclosure of financial statements in Vietnam

3.1. Published contents of financial statement in Vietnam

Published contents of financial statement include:

- Accounting units using state budget shall publish information about revenues, expenditures of state budget in accordance with the Law on State budget.

- Accounting units that do not use state budget shall publish their annually revenue and expenditure statements.

- Accounting units using the people’s contributions shall publish the purposes and use of such contributions, contributors, contributed amount, results, revenues and expenditures related to such contributions.

- Accounting units doing business shall publish:

+ Assets, liabilities and owner’s capital;

+ Business performance;

+ Development and use of funds;

+ Workers’ incomes;

+ Other contents required by law.

- Financial statements of accounting units that are, by law, required to be audited must be enclosed with audit reports made by the auditing bodies.

3.2. Manners and deadline for publishing financial statements

- A financial statement shall be published in one of the following manner:

+ Publication;

+ Written notice;

+ Posting;

+ Publication on a website;

+ Other manners prescribed by law.

- The manners and deadlines for publishing financial statements of accounting units using state budget shall comply with regulations of law on state budget.

- Accounting units that do not use state budget, accounting units using the people’s contributions shall publish their annual financial statements within 30 days from their submission dates.

- Accounting units doing business shall publish their annual financial statements within 120 days from the end of the annual accounting period. Where regulations of law on securities, credit, or insurance provide for different manners and deadlines for publishing financial statements; such regulations shall apply.

(Articles 31 and 32 of the Law on Accounting 2015)

Diem My

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