Principles for preparing commune financial reports in Vietnam

Principles for preparing commune financial reports in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. What are financial reports used for?

Financial reports are used to provide information about the commune's financial situation, operating results, and cash flows. After the end of the annual accounting period, communes must close their books and prepare financial reports.

The commune's financial report information is the basis for synthesizing state financial reporting information for the district.

2. Principles for preparing commune financial reports in Vietnam

Principles for preparing commune financial reports are prescribed as follows;

The preparation of financial statements must be based on accounting data after closing the accounting books. Financial reports must be prepared in accordance with the principles, content, and methods according to regulations and presented consistently between accounting periods; If the financial statements are presented differently between accounting periods, the reason must be clearly explained.

The financial report must be signed by the preparer, the commune accountant in charge and the Chairman of the Commune People's Committee. The person who signs the financial report is responsible for the content of the report.

Thus, according to the above regulations, the commune's financial statements are prepared according to the following principles:

- The preparation of financial statements must be based on accounting data after closing the accounting books. Financial reports must be prepared in accordance with the principles, content, and methods according to regulations and presented consistently between accounting periods; If the financial statements are presented differently between accounting periods, the reason must be clearly explained.

- The financial report must be signed by the preparer, the commune accountant in charge, and the Chairman of the Commune People's Committee. The person who signs the financial report is responsible for the content of the report.

3. Requirement to prepare commune financial reports

The commune's financial reporting requirements must reflect honestly and objectively the content and value of reported indicators; Present, according to the prescribed form, the financial situation, operating results, and cash flow of the commune.

Financial reports must be prepared promptly and on time as prescribed for the commune, presenting clear, easy-to-understand, and accurate accounting information and data.

Reported information and data must be continuously reflected; this period's data must succeed the previous period's data.

4. When is the financial reporting period?

- Financial statements are prepared at the end of the annual accounting period according to the provisions of the Law on Accounting.

- Communes are responsible for preparing financial reports

Communes must prepare annual financial reports according to the form specified in Appendix No. 04, attached to Circular 70/2019/TT-BTC.

- Place and deadline for submitting financial reports

+ Place of submission:

Communes submit financial reports to the district-level State Treasury where the commune conducts transactions, the Commune People's Council, the district finance department, and other competent State agencies according to the provisions of the law.

+ Deadline for submitting financial reports:

The commune's annual financial report must be submitted to the competent authority within 90 days from the end of the annual accounting period, according to the provisions of the law on accounting.

- Financial reports are disclosed in accordance with the provisions of law on accounting and relevant documents.

- List of reports, report templates, and explanation of financial reporting methods are stated in Appendix No. 04 "Financial Reporting System", attached to Circular 70/2019/TT-BTC.

Thus, according to the above regulations, the commune's financial statements are prepared at the end of the annual accounting period according to the provisions of the Law on Accounting.

Legal basis: Article 7 of Circular 70/2019/TT-BTC.

Nguyen Ngoc Que Anh

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