Chương III Thông tư 200/2014/TT-BTC: Báo cáo tài chính

Chapter III

FINANCIAL STATEMENT

SECTION 1. GENERAL PROVISIONS

Article 97. Purposes of financial statement

1. Financial statements are used to provide information about financial situations, trading performance and cash flows of enterprises, meet the requirements for management of employers, regulatory agencies and useful demands of users in making economic decisions. Financial statements must provide information about an enterprise about :

a) Assets;

b) Liabilities;

c) Equity;

d) Revenue, other income, production and business costs and other expenses;

dd) Profit, loss and allocation of income ;

e) The cash flows.

2. In addition to this information, an enterprise must also provide other information in the "Notes to the Financial Statements" for further explanation of standards recorded in general financial statements and accounting policies applied to record the economic transactions arising, preparation and presentation of financial statements.

Article 98. Periods of financial statement

1. Periods of annual financial statements: Enterprises must prepare annual financial statements in accordance with the Law on Accounting.

2. Periods of interim financial statements: Interim financial statement shall include quarter financial statements (including quarter IV) and semi-annual financial statements.

3. Periods of other financial statements:

a) Enterprises may establish financial statements in accordance with other accounting periods (such as week, month, 6 months, 9 months ...) as required by law, parent companies or owners.

b) Accounting units divided, splited, amalgamated or conversed their ownership, dissolved, terminated their operation, bankrupt must prepare financial statements at the time of division, split, amalgamation or conversion of ownership, dissolution, termination of activities, bankruptcy.

4. Determination of sum year of financial statements of financial and statistic agencies.

When summarizing statistics, in case of receipt of financial statements of enterprises whose fiscal year is different from calendar year, State management agencies shall comply with the following principles:

a) In case the financial statements of the enterprises begin on April 1 and end on March 31 annually, the figures on financial statements shall be summarized statistics on figures of the preceding year;

b) In case the annual financial statements of enterprises begin on July 1 and end on June 30 annually, financial statements used to summarize statistics are semi-annual financial statements;

c) In case financial statements of the enterprises begin on October 1 and end on September 30 annually, the figures on financial statements shall be summarized statistics on figures of the following year;

Article 99. Regulated entities , preparation responsibilities and signature on financial statements

1. Entities of annual financial statements:

Annual financial statement system is applied to all types of enterprises in all sectors and economic sectors. Financial statements must be prepared fully.

2. Entities of interim financial statement (quarterly financial statements and semi-annual financial statements)

a) Enterprises of which 100% charter capital or controlling shares is held by the State, units of the public interest must prepare interim financial statements;

b) Other enterprises which are not subject at point an above are recommended to prepare interim financial statements (optional).

c) Interim financial statements are prepared fully or summarily. Unit owners decide to choose the full or summary form for interim financial statements of their units if it is not contrary to the provisions of law that the units are subject to adjustment.

3. Superior enterprises whose subordinate units have no legal status must prepare their own financial statements and summarized financial statements. The summarized financial statements are prepared on the basic of including figures from all subordinate units without legal status and must exclude all figures arising from internal transactions between superior and subordinate units, among  subordinate units.

Subordinate units without legal status must establish their financial statements in accordance with the reporting period of superior units to serve summarizing financial statements of superior units and inspection of state management agencies.

4. The preparation and presentation of financial statements of enterprises of special branches must be complied with provisions in accounting policy issued or approved to be issued by the Ministry of Finance.

5. The preparation, presentation and publicity of annual consolidated financial statements and interim consolidated financial statements shall comply with the legislation on consolidated financial statements.

6. Signing financial statements must comply with the Law on Accounting. Units which do not prepare financial statement by themselves but hire accounting services to prepare financial statements, practitioners of units of accounting services must sign and write clearly the number of practice certificate, name and address of Unit provide accounting services. Individual practitioners must clearly record the number of practicing certificate.

Article 100. Financial reporting system of enterprises

Financial statement system includes annual financial statements and interim financial statements. Forms of financial statement are enclosed in Appendix 2 of this Circular. Items without figures shall not be presented in financial statement, enterprises actively re-number items of financial statements in accordance with the principle of continuity in each section.

1. Annual financial statements include:

2. Interim financial statements include:

Full interim financial statements, including:

b) Summary interim financial statement, including:

Article 101. Requirements for information presented in financial statements

1. Information presented in the financial statements must be recorded honestly and reasonably the financial situation, trading situation and income of enterprises. To ensure honesty, the information must be complete, objective, unmistaken.

- Information is only complete when including all the necessary information to help users of financial statements to understand the nature, forms and risks of transactions and events. For some items, the full presentation must also describe more information about the quality, the factors and circumstances that may affect the quality and nature of the items.

- Objective presentation is unbiased selection or description on financial information. Objective presentation must ensure neutrality which do not focus, emphasis or reduce as well as perform other acts to alter the impact of the financial information to become beneficial or unbeneficial for users of financial statements.

- No errors mean no omissions in the description of the phenomenon and no errors in the process of providing reporting information selected and applied. No errors do not mean complete accuracy in all respects, for example, estimating unobservable cost and value is difficult to determine to be correct or incorrect. The presentation of an estimate is considered to be honest, if the estimated value is described clearly, and the nature and limitation of the estimating process is explained and there is no error in the selection of appropriate figures in the estimate.

2. Financial information must be appropriate to help users of financial statements to predict, analyze and make economic decisions.

3. Financial information must be presented fully in all important respects. Information is considered to be important in case information is not sufficient or inaccurate information may affect the decisions of users of financial information of the reporting unit. Materiality shall be based on the nature and magnitude, or both, of the relevant items presented in the financial statements of a particular unit.

4. Information must be verifiable, timely and understandable.

5. Financial information must be presented consistently and must be comparable among the accounting periods and enterprises.

Article 102. Principles of preparation and presentation of financial statements of enterprises meeting assumption of continuous operation

1. The preparation and presentation of financial statements must comply with the provisions of Accounting Standards, "Presentation of financial statements" and other accounting standards related. The important information must be explained to help users understand the true financial situation of enterprises.

2. Financial statements must record exactly the economic substance of transactions and events, rather than the legal form of such transactions and events (respecting nature rather than form).

3. Assets are not recorded higher than the recoverable value; Liabilities are not recorded lower than payment obligations.

4. Classification of assets and liabilities: Assets and liabilities in the Balance sheet must be presented in short and long term; In short-term and long-term parts, items are sorted under decreasing liquidity.

a) Assets or liabilities whose maturity is within 12 months or a production cycle, the ordinary business from the time the report is classified as short-term;

b) Assets and liabilities which are not classified as short term are classified as long-term.

c) When preparing financial statements, accountants must reclassify assets and liabilities classified as long-term in the previous period whose maturity is within 12 months or a production cycle, the ordinary business from the time the report is classified as short-term.

5. Assets and liabilities must be presented separately. Offsetting when assets and liabilities relating to the same entities, with fast turnarounds, short maturities, arising from transactions and events of the same type.

6. The items of revenue, income, expenses must be presented in a consistent principle and ensure the precautionary principle. Income statement and cash flow statement shall record revenues, income, expenses and cash flows of the reporting period. Revenues, income, cost of previous period which have errors affecting income and cash flows must be adjusted retroactively, not be adjusted in the reporting period.

7. When preparing the consolidated financial statements between enterprises and the subordinate units which have no legal status in dependent cost-accounting, balance the internal items of the Balance sheet, revenues, expenses, profits and losses considered to be unearned arising from internal transactions must be excluded.

Article 103. Principles of preparation and presentation of financial statements when changing the accounting period.

When changing the accounting period, for example, change the accounting period from the calendar year into accounting period other than calendar year, enterprises must close accounting books, prepare financial statements in accordance with the following principles:

1. The change in the accounting period must comply with the provisions of the Law on Accounting. When changing the annual accounting period, accountants must prepare a separate financial statements for the period between the two accounting periods of the previous financial year and the new financial year, for example:

Enterprises with the accounting period in 2014 under calendar year. In 2015, enterprises switch to the annual accounting year starting from April 1 of previous year to March 31 of the next year. In this case, enterprises must establish separate financial statements for the period from January 01, 2015 to March 31,2015.

2. For the Balance Sheet: All balances of assets, liabilities and equity of the accounting period prior to switch are recorded  the opening balance of the new accounting period and are presented in the "Beginning".

3. For income statements and cash flow statements: Figures from the time of change of the accounting period to the end of the first reporting period are shown in column "This time". Figures of previous 12 months equivalent to the accounting period of current year are presented in the "previous"

Example: Following the example above, when presenting column "Previous" in  income statement starting on April 01, 2015 and ending on March 31, 2016, enterprises must present figures from April 01, 2014 to March 31, 2015.

Article 104. Principles of preparation and presentation of financial statements in transformation of enterprise ownership.

When transforming their ownership, enterprises must close accounting books, prepare financial statements in accordance with law. In the first accounting period after the transformation, enterprises must record accounting books and present financial statement in accordance with the following principles:

1. For accounting books recording assets, liabilities and equity: All balances of assets, liabilities and equity in the accounting books of the old enterprises are recorded opening balances in accounting books of the new enterprises.

2. For the Balance Sheet: All balances of assets, liabilities and equity of the old enterprises prior to transformation are recorded in the opening balance of the new enterprises and are presented in the "Beginning".

3. For income statements and cash flow statements: Figures from the time of transformation to the end of the first reporting period are shown in column "This time". Cumulative figures from the beginning of reporting year to the time of transformation of ownership are presented in the "previous"

Article 105. Principles of preparation and presentation of financial statements in division, acquisition of enterprises

When partially dividing an enterprise into many new enterprises which have legal status or when acquisiting many enterprises into another enterprise, the divided or acqquisited enterprises must close accounting books, prepare financial statement as prescribed by law. In the first accounting period after division or acquisition, new enterprises must record accounting books and present financial statement in accordance with the following principles:

1. For accounting books recording assets, liabilities and equity: All balances of assets, liabilities and equity in the accounting books of the old enterprises are recorded an incurred balance in accounting books of the new enterprises. The "Opening balance” in accounting books of new enterprises has no figures.

2. For the Balance Sheet: All balances of assets, liabilities and equity of the old enterprises prior to transformation are recorded an incurred balance of the new enterprises and are presented in the "Ending". The "Beginning" has no figures.

3. For income statements and cash flow statements: Figures from the time of transformation to the end of the first reporting period are shown in column "This time". The "previous" has no figures.

Article 106. Principles of preparation and presentation of financial statements of enterprises not meeting assumption of continuous operation

1. When preparing and presenting financial statements, enterprises must consider the assumption of continuous operation. Enterprises shall be considered as discontinuous operation if at the expiry of operation, they do not have applications for extension their operation, schedule of termination of operations (specific documents submitted to the competent agencies) or they are requested for dissolution, bankruptcy or termination of operations within 12 months from the date of the financial statements by competent agencies. For enterprises with ordinary trading and production cycle for more than 12 months, it shall be within a production cycle of ordinary trading and production.

2. In following cases, units are still considered as continuous operation:

- Equitization of a state-owned enterprise to a joint-stock company. The financial settlement upon equitization is a special case, in spite of revaluation of enterprises, revaluation of assets and liabilities, enterprises essentially maintain their production and trading as usual;

- Transformation of enterprise ownership, eg. a limited company is transformed into a joint stock company or vice versa;

- Transformation of a unit with the legal status of independent cost-accounting into a unit without legal status of dependent cost-accounting or vice versa (for example, a subsidiary is transformed into a branch or vice versa)

3. In case of not meeting assumption of continuous operation, enterprises still must present fully financial statements and record clearly:

- The Balance Sheet applied to enterprises not meeting the assumption of continuous operation -Form B01 / CDHDD - DNKLT presented in a separate form;

- Income statement applied to enterprises not meeting the assumption of continuous operation - Form B02 / CDHDD - DNKLT presented in a general form similar to enterprises with normal operations;

- cash flow statement applied to enterprises not meeting the assumption of continuous operation - Form B03 / CDHDD - DNKLT presented in a general form similar to enterprises with normal operations;

- Note to the financial statements applied to enterprises not meeting the assumption of continuous operation -Form B09 / CDHDD - DNKLT presented in a separate form;

4. If the assumption of continuous operation is no longer appropriate at the time of reporting, enterprises must reclassify long-term assets and long-term liabilities into short-term assets and short- term liabilities.

5. If the assumption of continuous operation is no longer appropriate at the time of reporting, enterprises must re-evaluate the entire assets and liabilities except where third parties have a right to inherit asset or the obligation to the liabilities according to the book value. Enterprises must record in the accounting books at re-evaluated prices prior to the Balance Sheet.

Assets and liabilities shall not be revaluated if a third party has the right to inherit assets or obligations to liabilities in some specific cases as follows:

a) In case a unit is dissolved to acquire into another unit, if the acquired unit commits to inherit all rights and obligations of the dissolved unit under book value;

b) In case a unit is dissolved to divide into another unit, if the unit after division commits to inherit all rights and obligations of the dissolved unit under book value;

c) Any specific asset committed, guaranteed to recovery for dissolved unit under the book value by another party and the recovery takes place before the unit officially terminates its operation;

d) Each specific liability committed, guaranteed to pay for the dissolved unit by a third party and the dissolved unit must only pay for such third party under book value books;

Re-evaluation is carried out for each type of asset and liability on the principle:

(a) For assets;

- Inventory, long-term work in progress, long-term equipment, materials, spare parts are evaluated lower than the cost price and net realizable value at the time of reports;

- Tangible fixed assets, intangible fixed assets, investment real property are evaluated lower than the net book value and the recoverable value at the time of reporting (liquidation price minuses the estimated liquidation expenses). Finance lease fixed assets, if there is a term requiring to repurchase, shall be revalued similarly to fixed assets of enterprises, if they are returned to the lessor, shall be revalued according to the finance lease liabilities payable to the lessor;

- The cost of fundamental construction in progress is valued lower between book value and the recoverable value at the time of reporting (liquidation price minuses the estimated liquidation expenses);

- Trading securities are evaluated according to the fair values. The fair value of listed securities or securities on UPCOM is defined as the closing price of the session at the reporting date (or the preceding session if the market does work on the reporting date);

- Investments in subsidiaries, joint ventures, associates and other units are recorded at the lower price of book value and recoverable value at the time of reporting (selling price minuses the estimated selling costs);

- Investments held to maturity, receivables are valued according to the actual recoverable amount.

b) For liabilities: In case there is agreement between the parties in writing of the amount payable, revaluation shall be depended on the agreed amount. If there is no specific written agreement, it shall be as follows:

- Debts payable in cash are revalued at a higher price between the book value of debts payable and debts paid before the deadline as stipulated by the contract;

- Debts payable in financial assets are revalued at a higher price between the book value of debts payable and the fair value of such financial assets at the time of the report;

- Debts payable in inventories are revalued at a higher price between the book value of liabilities and the purchase price (are plus directly related costs) or production cost of inventories at the same time of the report;

- Debts payable in fixed assets are revalued at a higher price between the book value of liabilities and the purchase price (are plus directly related costs) or the net book value of fixed assets at the time of the report;

c) Accounts derived from foreign currencies are revalued at the actual exchange rate at the time of reporting as usual.

6. Accounting method of some assets when enterprises do not meet the assumption of continuous operation:

a) Setting up provision or evaluating asset loss is recorded a decrease directly in the book value of assets, provision in account 229 - "Provision for asset losses" shall not be made;

b) The calculation of depreciation or recording losses of fixed assets, investment real property is recorded a decrease in the book value of assets, account 214 shall not be used to record accumulated depreciation .

7. When assumption of continuous operation is no longer appropriate, enterprises must handle several following financial problems:

- Advancing costs to determine income for the expected losses arising in the future if the possibility of arising loss is probable and the value of the losses are estimated reliably; Recording current obligations for the liabilities, including cases of insufficient documents (such as volume acceptance records of contractors ..) which are surely paid;

- For differences upon accumulated asset revaluation of equity, after handling tangible, intangible fixed assets, investment real property, the rest is transferred to other income (if profit) or other expenses (if loss);

- For exchange differences recorded a accumulation in the balance sheet (such as exchange differences arising from the conversion of financial statements), enterprises shall transfer all to financial income (if profit) or financial expense (if loss);

- Unallocated prepaid expenses such as goodwill arising from business acquisition which does not lead to the parent-subsidiary relationship, goodwill in equitization, tools and instruments delivered for use, cost of enterprise establishment, cost of commence stage ... are all recorded a decrease to include in cost during the period. Prepaid expenses related to the lease of assets, prepaying interest are calculated and allocated to match the remaining actual prepaid time until official termination;

- The parent company stopped recording goodwill in the consolidated financial statements, the unallocated goodwill is included in enterprise management expenses;

- The differences of profit or loss upon revaluation of assets and liabilities after offsetting the provision set up (if any) are recorded in financial income, other income or financial expense and other expenses, depending on the specific items similar to recording of operating enterprises.

8. In case the assumption of continuous operation is no longer appropriate at the time of the report, enterprises must explain in detail the ability to pay cash and liabilities, equity for shareholders and explain the reasons for not being comparable between information of reporting period and information of comparison period, namely:

- The recoverable amount from the liquidation or sale of assets, recovery of liabilities;

- Ability to pay liabilities in order of priority, such as the ability to pay to the State budget, workers, loan, providers;

- Ability to pay to owners, for joint-stock companies, the ability of how much that each stock will receive shall be announced clearly;

- The time for payment of liabilities and equity.

- Reasons for incomparable information of reporting period and comparative period: Due to previous period, enterprises present financial statements in accordance with the principle of continuous operating enterprises; in reporting periods when enterprises are going to dissolve, bankrupt or terminate their operations under decisions of competent agencies (specify the name of the agency, the number of the decision) or the Board of Directors have plans under the documents( number, date) financial statements shall be presented in accordance with other principles.

Article 107. Currency used for the financial statements as publicized and submitted to state management agencies in State management in Vietnam

1. Financial statements used to publicize and submit to state management agencies in State management in Vietnam must be presented in Vietnam Dong. In case enterprises make financial statements in foreign currency, they must convert financial statements into Vietnam dong when they are publicized and submitted to state management agencies in State management in Vietnam.

2. The method of converting financial statements prepared in foreign currencies into Vietnam dong to publicize information and submit to State management agencies shall be as follows:

a) When converting financial statements prepared in foreign currencies into Vietnam dong, accountants must convert the norms of financial statements in accordance with the following principles:

- Assets and liabilities shall be converted into Vietnam dong at the actual exchange rate at the end of period (the transfer rate of a commercial bank where enterprises regularly trade at the time of the report);

-  Equity (capital contributed by the owners, share premium, other capital, bond conversion option) shall be converted into Vietnam dong at the actual exchange rate on the date of capital contribution;

- Foreign exchange differences and differences upon asset revaluation are converted into Vietnam dong at the actual exchange rate at the date of valuation;

- Undistributed post-tax profits, funds deducted from undistributed post-tax profits the arising after the investment are converted into Vietnam dong by calculating according to items of income statements;

- Profits, dividends payable shall be converted into Vietnam dong at the actual exchange rate at the date of payment of income, dividends;

- Items of income statements and cash flow statements shall be converted into Vietnam dong at the actual exchange rate at the time of the transaction. In case the average exchange rates of the accounting period approximates the actual rate at the time of the transaction (the difference does not exceed 3%), the average exchange rate can be applied.

b) Accounting method of exchange differences due to conversion of financial statements prepared in foreign currencies into Vietnam Dong.

Foreign exchange differences arising when converting financial statements prepared in foreign currencies into Vietnam Dong under the item "exchange rate differences" - No. 417 of the equity of the Balance sheet.

Article 108. Principles of preparation of financial statements upon change of currency in accounting.

1. When changing the accounting currency, in the first period after the change, accountants convert the balances of accounting books into the currency of the new accounting at the transfer rate of a commercial bank where enterprises frequently trade at the date of conversion of currency in accounting.

2. The rate applied to comparative information (previous column) in income statements and cash flow statements:

When presenting comparative information in income statements and cash flow statements of the period of conversion of currency in accounting, units apply the average transfer rate of the period preceding the change period (if the average exchange rate is approximate the actual cost).

3. When changing the currency in accounting, enterprises must present clearly in the notes to financial statements reasons of change of the currency in the accounting and impacts (if any) for financial statement due to changes in currency in accounting.

Article 109. Deadline for submission of financial statements

1. For state-owned enterprises

a) Deadline for submission of quarterly financial statements:

- Accounting unit must submit quarter financial statements at the latest 20 days from the end of the quarterly accounting period; It is at the latest 45 days for the parent companies, state-owned general companies;

- accounting unit affiliated enterprises, state-owned general companies submit quarter financial statements to parent companies, general companies under the time limit set by parent companies, general companies.

b) Deadline for submission of annual financial statements:

- Accounting unit must submit annual financial statements at the latest 30 days from the end of the annual accounting period; It is at the latest 90 days for the parent companies, state-owned general companies;

- Accounting unit affiliated state-owned general companies submit annual financial statements to parent companies, general companies under the time limit set by parent companies, general companies.

2. For other types of enterprises

accounting unit being private enterprises and partnership must submit annual financial statements at the latest 30 days from the end of annual accounting period; for other accounting units, the deadline for submission of annual financial statements is within 90 days;

b) Subordinate accounting unit affiliated submit annual financial statements to superior accounting unit within the time limit given by the superior accounting units

Article 110. Recipients of financial statements

1. State-owned enterprises in central-affiliated cities and provinces must prepare and submit financial statement to the Service of Finance in central-affiliated cities and provinces. Central state-owned enterprises must submit financial statements to the Ministry of Finance (Department of Corporate Finance).

- State-owned enterprises such as commercial banks, lottery companies, credit institutions, insurers, securities trading companies must submit financial statements to the Ministry of Finance (Department of Banking and Finance or Administration of Insurance Supervision).

- Securities trading companies and public companies must submit financial statements to the State Securities Commission and the Stock Exchange.

2. Enterprises must submit financial statements to supervisory tax authority in local. State-owned general companies must submit financial statements to the Ministry of Finance (General Department of Taxation).

3. Enterprises having superior accounting units must submit financial statements to the superior accounting unit in accordance with the provisions of the superior accounting units.

4. Enterprises required for financial audit by law must be audited prior to submission of financial statements in accordance with regulations. The financial statements of enterprises audited must be enclosed with the audit report when being submitted to State management agencies superior enterprises.

5. The financial agency to which enterprises have foreign direct investment (FDI) must submit financial statements is the Service of Finance in central-affiliated cities and provinces where the enterprises register their main business office .

6. state-owned enterprises owning 100% of the charter capital, in addition to the agencies where enterprises must submit financial statements as defined above, they must also submit financial statements to the agencies, organizations assigned, decentralized to exercise rights of owners under Decree No. 99/2012 / ND-CP and documents amending, supplementing, replacing.

7. Enterprises (including domestic enterprises and foreign-invested enterprises ) whose headquarters are in processing and exporting zones, industrial zones, hi-tech zones must also submit annual financial statements to the management board of processing and exporting zones , industrial zones , hi-tech zones if required.

SECTION 2. CONTENT AND METHOD OF PREPARATION OF FINANCIAL STATEMENTS

Article 111. General information about enterprises

In annual financial statements, enterprises must present the following general information:

- Name and address of the reporting enterprise;

- Specification of separate financial statements of the business, combined financial statements or consolidated financial statements of the parent company, corporation;

- Ending date of the accounting period ;

- Date of the financial statements:

- Currency used in accounting books;

- Currency used for preparation and presentation of financial statements.

Article 112. Guidelines on preparation and presentation of annual Balance sheet

1. Preparation and presentation of Balance sheet of enterprises meeting the assumption of continuous operation.

Purposes of the Balance sheet

The Balance sheet is a combined financial statements,  recording generally all value of the current assets and sources that set up assets of enterprises at a certain time. Figures on the balance sheet show the full value of current assets of enterprises according to the structure of assets and of capital setting up such assets. Based on the Balance Sheet, the financial situation of enterprises may be considered, assessed generally.

Principles of preparation and presentation of the Balance Sheet

Under the provisions of Accounting Standards, "Presentation of financial statements" when the balance sheet is prepared and presented, the general principles of preparation and presentation of financial statements must be complied with. Also, on the balance sheet, the assets and liabilities should be presented separately as short-term and long-term, depending on the duration of the normal operating cycle of enterprises, namely as follows:

a) For enterprises with normal operating cycle within 12 months, the assets and liabilities are classified as short-term and long-term according to the following principles:

- Assets and liabilities are recovered or paid within 12 months from the time the balance sheet is classified as short-term;

- Assets and liabilities are recovered or paid for 12 months or more from the time the balance sheet date are classified as long-term.

a) For enterprises with normal operating cycle longer than 12 months, assets and liabilities are classified as short-term and long-term according to the following principles:

- Assets and liabilities are recovered or paid within a normal operating cycle are classified as short-term;

- Assets and liabilities are recovered or paid in a time that is longer than a normal operating cycle are classified as long-term.

In this case, enterprises must clearly explain the characteristics to determine the normal operating cycle, the average duration of a normal operating cycle, the evidence of the production and trading cycle of enterprises as well as of operation sectors of enterprises.

c) For enterprises which due to the nature of operations cannot rely on the operating cycle to distinguish between short term and long term, the assets and liabilities are presented under decreasing liquidity.

When preparing the combined balance sheet between the superior unit and subordinate unit which have no legal status, the superior unit must eliminate all balances of items arising from the internal transactions, such as amounts receivable and payable, internal loans...between the superior unit and the subordinate unit, among the subordinate units.

The technique of elimination internal items in summarizing Reports between superior units and dependent cost-accounting subordinate units is similar to the technique of consolidated financial statements.

Items without figures are exempted from presentation on the Balance sheet. Enterprises actively re-number of the items under the continuity principle in each section.

Basis for preparation of the Balance Sheet

- Based on the general accounting books;

- Based on detailed accounting books, cards on detailed summary sheet;

- Based on the balance sheet of previous accounting year (to present the first column).

Content and methods of setting up items in balance sheet of enterprises to meet the assumption of continuous operation (Form B01-DN)

a) Short-term assets (Code 100)

Short-term assets records the total value of cash, cash equivalents and other short-term assets that can be converted into cash, can be sold or used within 12 months or a normal operating cycle of enterprises at the time of the report, including: cash, cash equivalents, short-term financial investments, short-term receivables, inventories and other short-term assets.

Code 100 = Code 110 + code 120 + Code 130 + code 140 + code 150.

- Cash and cash equivalents (Code 110)

They are general items to record the total current cash and cash equivalents of enterprises at the time of reporting, including: cash in hand, deposits (demand deposits), cash in transit and the cash equivalents of enterprises. Code 110 = code 111 + Code112.

Cash (Code 111)

It is a general item to record the total current cash of enterprises at the time of reporting, including: cash in hand, demand deposits and cash in transit. Figures recorded in item “Cash” are the total debit balance of account 111 “Cash”, 112 “ deposits” and 113 “ Cash in transit”

Cash equivalents (Code 112)

This item records the short-term investments with maturity less than 3 months from the date investment can be converted easily into a certain amount of cash and there is no risk in conversion into cash at the time of reporting.

Figures recorded in this item shall mainly base on the detailed debit balance of account details Debt 1281 "term deposits" (details of deposits with maturity of 3 months) and accounts 1288 " Other investments held to maturity "(details of eligible items classified as cash equivalents). In addition, the reporting process, if the items recorded in other accounts are found to meet the definition of cash equivalents, accountants shall be permitted to present in this item. Cash equivalents may include: Bank exchange bills, treasury bills, bank deposits with an original maturity of 3 months ...

These amounts previously classified as cash equivalents but unrecovered over maturity are presented in other items in accordance with the contents of each item.

When analyzing the financial indicators, in addition to the cash equivalents presented in this item, accountants can consider cash equivalents including amounts with the remaining maturity of less than 3 months from the date of the report (but with an original maturity of more than 3 months) which can be converted easily into a certain amount and there is no risk of conversion into cash.

- Short-term financial investments (Code 120)

It is a general item records the total value of short-term investments (after deduction of provision for decrease in value of trading securities ), including: Securities held for trading purposes, investments held-to-maturity and other investments with the remaining term within 12 months from the time of reporting.

Short-term investments recorded in this item excluding short-term investments presented in the item "cash equivalents" and item "receivables from short-term loans".

Code 120 = Code 121 + code 122 + Code 123.

Trading securities (Code 121)

This item records the value of securities and other financial instruments held for trading purposes at the time of reporting (held for the purpose of waiting for increase in price to sell for profit). This item may include unsecuritized financial instruments, such as commercial papers, forward contracts, swap contracts ... held for trading purposes. Figures recorded in this item are debit balance of the account 121 - "trading securities".

Provision for decrease in value of trading securities (Code 122)

This item records the provision for decrease in value of trading securities at the time of reporting. Figures recorded in this item is credit balance of account 2291 " provision for decrease in value of trading securities” and is recorded in negative number under the form of parentheses (...).

Investments held to maturity (Code 123)

This item records the investments held to maturity with the remaining term within 12 months from the time of reporting, such as term deposits, bonds, commercial papers and other debt securities . This item does not include investments held to maturity presented in the item "cash equivalents", item "receivables for short-term loans". Figures recorded in this item are debit balances accounts 1281, 1282, 1288 (details of amounts with remaining maturity within 12 months which are not classified as cash equivalents).

- Short-term receivables (Code 130)

It is a general item recording the total value of short-term receivables with recovery term within 12 months or within a normal operating cycle at the time of the report (after subtracting the provisions for bad short-term receivables), such as: receivables of customer, prepayments to suppliers, internal receivables, receivables according to the progress of construction contracts, receivables for loans and other short-time receivables. Code 130 = Code 131 + Code 132 + Code 133 + Code 134 + Code 135 + Code 136 + Code 137 + Code 139

Short-term receivables from customers (Code 131)

This item records the amounts receivable from customer with the remaining recovery term within 12 months or within a normal operating cycle at the time of reporting. Figures recorded in this item shall be based on the total debit balance of account 131 "receivables from customer " opened for each customer.

Prepayments to sellers in short-term (Code 132)

This item records the amount prepaid to the seller within 12 months or within a normal operating cycle to purchase assets but assets have not been delivered at time of reporting. Figures recorded in this item are based on total amounts arising detailed debts of Account 331 "Payables to suppliers" opened according to each seller.

Short-term intercompany receivables (Code 133) 

This item records the receivables between the superior unit and the subordinate unit which has no legal status in dependent cost-accounting and between subordinate units which have no legal status in dependent cost-accounting in payment relationship besides capital allocation relationship, with the remaining recovery term within 12 months, or in a normal operating cycle at the time of reporting. Figures recorded in this item are the debit balance accounts 1362, 1363, 1368 in accounting books detailing Account 136. When the superior units prepare combined financial statement with subordinate units in dependent cost-accounting, this item is offset with the item "short-term intercompany payables" in the balance sheet of dependent cost-accounting units.

Receivables according to the progress of construction contracts (Code 134)

This item records the difference between total revenue recorded accumulatively in proportion to the completed work which is greater than the accumulative total amount customer must pay according to the progress of the plan by the end of the reporting period of construction contracts in progress. Figures recorded in this item shall be based on the Debit Balance of account 337 " Payments under the progress of plan of construction contracts"

Short-term loan receivables (Code 135)

This item records the loans (not including the content recorded in the item "Investments held to maturity") which have recovery term within 12 months or in a normal operating cycle at the time of reporting, such as loans by agreements, contracts between the two parties. Figures recorded in this item are the debit balance of  accounts 1283 - Loans

Other short-term receivables (Code 136)

This item records other receivables with the remaining recovery term within 12 months or within a normal operating cycle at the time of reporting, such as receivables of expenditures, interest, dividends, advances, pledge, deposit, temporary loan ... that enterprises are entitled to recover within 12 months.  Figures recorded in this item are the detailed debit balance of accounts : 1385, TK1388, TK334, TK338, TK 141 TK 244. Figures recorded in this item are the detailed debit balance of accounts : 1385, 1388, 334, 338, 141, 244.

Provision for uncollectible short-term receivables (Code 137)

This item records the provision for uncollectible short-term receivables at the time of reporting. Figures recorded in this item are detailed credit balance in account 2293, "Provision for bad debts", detailed provisions for uncollectible short-term receivable and are recorded in negative number under the form of parentheses (...).

Shortage of assets awaiting resolution (code 139)

 This item records the shortage and loss of assets of which reasons are unknown awaiting resolution at the time of reporting. Figures recorded in this item are Debit balance of account 1381- Shortage of assets awaiting resolution

- Inventories (Code 140)

It is a general item recording the total current value of inventories for the production and trading of enterprises (net of provision against devaluation of goods in stock) until the time of reporting. Code 141 = Code 141 + Code 149.

Inventories (Code 141)

This item records the total value of inventories owned by the enterprises, rotated in a normal operating cycle at the time of reporting. This item does not include the value of costs of long-term work in progress and the value of equipment, materials, long-term spare parts. Figures recorded in this item are the debit balance of account 151 - "Goods in transit", account 152 - "Raw materials, materials", account 153 - "tools and instruments" account 154 - "The cost of work in progress", account 155 - "finished products ", account 156 - "Goods", account 157 - "Goods sent for sale", account 158 ​​- " goods in tax-suspension warehouse "

Costs of work in progress beyond a normal operating cycle which do not meet the definition of inventory in accordance with Accounting Standards are not presented in this item but are presented in item "costs of long-term work in progress "- Code 241.

Equipment, supplies, spare parts over 12 months or beyond a normal operating cycle do not meet the definition of inventory under Accounting Standards are not presented in this item but are presented in item " long-term equipment, supplies, spare parts "- Code 263.

Provision against devaluation of goods in stock (149)

This item records the provision for devaluation of goods in stock at the time of reporting, after deduction of provision for devaluation set up for costs of long-term work in progress. Figures recorded in this item are the credit balance of account 2294 "Provision for devaluation of goods in stock", details of provisions for the items are presented as inventory in item code 141 and recorded in negative under the form of parentheses: (...).This item does not include provision for devaluation of costs of long-term work in progress and long term equipment, materials, spare parts.

- Other short-term assets (Code 150)

It is a general item recording the total value of other short-term assets with recovery or use term within 12 months at the time of reporting, such as short-term prepaid expenses, deductible VAT, taxes receivable, purchase and resale of government bonds and other short-term assets at the time of reporting. Code 150 = Code 151 + code 152 + Code 153 + code 154 + code 155.

Short-term prepaid expenses (code 151)

This item records the prepaid amount for the provision of goods or services within 12 months or a normal operating cycle from the time of prepayment. Figures recorded in the item "short-term prepaid expenses" are detailed Debit balance of Account 242 "prepaid expenses".

Deductible VAT (Code 152)

This item records the deductible VAT and refunded VAT by the end of the reporting year. Figures recorded in the item " deductible VAT" are based on the Debit balance of Account 133 " deductible VAT."

Taxes and other revenues to the state (Code 153)

This item records tax and other amounts overpaid to the State at the time of reporting. Figures recorded in the item "Taxes and other revenues to the state" are based on detailed Debit balance of Account 333 "Tax and other payables to the State" on the detailed accounting books of account 333.

Purchase and resale of government bonds (Code 154)

This item records the value of government bonds of the purchaser before the expiration of the contract of resale at the time of reporting. Figures recorded in the item "Purchase and resale of government bonds," are the Debit balance of Account 171 - "purchase and resale of government bonds."

Other short-term assets (Code 155)

This item records the value of short-term assets, such as precious metals, jewels (not classified as inventories), investments held awaiting increase in price to sell for profit are not classified as investment real properties such as paintings, photographs, and other valuable articles. Figures recorded in this item are in the debit balance of account 2288 - "Other Investments”

b) Long-term assets (Code 200)

This item records the value of assets which are not recorded in the item of short-term assets. Long-term assets are assets with maturity of more than 12 months or at the time of reporting, such as long-term receivable, fixed assets, investment real property, long-term financial investment and long-term assets. Code 200 = Code 210 + Code 220 + Code 230 + Code 240 + Code 250 + Code 260.

- Long-term receivables (Code 210)

It is a general item recording the total value of the receivables with recovery term of more than 12 months or more than a operating and trading cycle at the time of reporting, such as: receivables from customer, business capital in subordinate units, internal receivables, loan receivables, other receivables (net of provision for uncollectible long-term receivables). Code  210 = Code 211 + Code 212 + Code  213 + Code 214 + Code 215 + Code 216 + Code 219.

Long-term receivables from customers (Code 211)

This item records the amounts receivable from customer with the recovery term of more than 12 months or more than one normal operating cycle at the time of reporting. Figures recorded in this item shall be based on the details of debit balance of account 131 "receivables from customer " opened for each customer.

Prepayments to suppliers in long-term (Code 212)

This item records the amount prepaid to the seller  for more than 12 months or more than one normal operating cycle to purchase assets but assets have not been delivered at time of reporting. Figures recorded in this item are based on total amounts arising detailed debts of Account 331 "Payables to suppliers" opened according to each seller.

Working capital provided to subordinate units (Code 213)

This item only recorded in the balance sheet of superior units records the working capital allocated to subordinate units which have no legal status in dependent cost-accounting. When setting up the general balance sheet total of the whole enterprise, this item is offset with the item "intercompany payables on working capital" (Code 333) or item "Contributions from owners' ( Code 411) in the Balance Sheet of the dependent cost-accounting units, details of the capital received from the superior units. Figures recorded in this item shall be based on the debit balances of account 1361 "Working capital provided to subordinate units".

Long-term intercompany receivables (Code 214)

This item records the receivables between the superior unit and the subordinate unit which has no legal status in dependent cost-accounting and between subordinate units which have no legal status in dependent cost-accounting in payment relationship besides capital allocation relationship, with the remaining recovery term of more than 12 months, or more than a normal operating cycle at the time of reporting. Figures recorded in this item are based on the debit balance accounts 1362, 1363, 1368 in accounting books detailing Account 136. When the superior units prepare combined financial statement with subordinate units in dependent cost-accounting, this item is offset with the item "long-term intercompany payables" in the balance sheet of dependent cost-accounting units.

Receivables on long-term loans (Code 215)

This item records the loans by agreements, contracts between two parties (including the content recorded in the item "Investments held to maturity") which have recovery term of more than 12 months at the time of reporting. Figures recorded in this item are based on the debit balance of accounts 1283 - Loans

Other long-term receivables (Code 216)

This item records other receivables with the remaining recovery term of more than 12 months or more than a normal operating cycle at the time of reporting, such as receivables of expenditures, interest, dividends, advances, pledge, deposit, loan ... that enterprises are entitled to recover. Figures recorded in this item are based on the detailed debit balance of accounts :1385, 1388, 334, 338, 141, 244.Provision for doubtful long-term receivables (Code 219)

This item records the provision for doubtful long-term receivables at the time of reporting. Figures recorded in this item are detailed credit balance in account 2293, "Provision for doubtful debts", detailing provisions for doubtful long-term receivables and are recorded in negative number under the form of parentheses (...).

- Fixed assets ( code 220)

It is a general item recording the net book value (Costs minus the value of accumulated depreciation) of fixed assets at the time of reporting. Code 220 = Code 221+ Code 224 + Code 227.

- Tangible fixed assets (code 221)

It is a general item recording the net book value of tangible fixed assets at the time of reporting. Code 221 = Code 221+ Code 223.

Costs (Code 222)

This item records the total costs of tangible fixed assets at the time of reporting. Figures recorded in this item are the debit balance of Account 211 "tangible fixed assets".

Value of accumulated depreciation (Code 223)

This item records the total depreciation value of tangible fixed assets accumulated at the time of reporting. Figures recorded in this item are the credit balances of account 2141 " depreciation of tangible fixed assets” and are recorded in negative number under the form of parentheses (...).

- Finance lease fixed asset (Code 224)

It is a general item recording the total net book value of finance lease fixed assets at the time of reporting. Code 224 = Code 225+ Code 226.

Costs (Code 225)

This item records the total costs of finance lease fixed assets at the time of reporting. Figures recorded in this item are the debit balance of Account 212 " Finance lease fixed assets".

Value of accumulated depreciation (Code 226)

This item records the total depreciation value of finance lease fixed assets accumulated at the time of reporting. Figures recorded in this item are the credit balances of account 2142 " depreciation of finance lease fixed assets” and are recorded in negative number under the form of parentheses (...).

- Intangible fixed assets (code 227)

It is a general item recording the total net book value of intangible fixed assets at the time of reporting. Code 227 = Code 228+ Code 229.

Costs (Code 228)

This item records the total costs of intangible fixed assets at the time of reporting. Figures recorded in this item are the debit balance of Account 213 "intangible fixed assets".

Value of accumulated depreciation (Code 229)

This item records the total depreciation value of intangible fixed assets accumulated at the time of reporting. Figures recorded in this item are the credit balances of account 2143 " depreciation of intangible fixed assets” and are recorded in negative number under the form of parentheses (...). Investment real property (Code 230)

It is a general item recording the total net book value of investment real property at the time of reporting. Code 230 = Code 231+ Code 232.

Costs (Code 231)

This item records the total cost of investment real property at the time of reporting after deduction of losses due to devaluation of investment real property held for increase in price. Figures recorded in this item are the debit balance of Account 217 " Investment real property".

Value of accumulated depreciation (Code 232)

This item records the total depreciation value of investment real property used for lease at the time of reporting. Figures recorded in this item are the credit balances of account 2147 " depreciation of investment real property” and are recorded in negative number under the form of parentheses (...).

Long-term unfinished assets (Code 240)

It is a general item recording the value of cost of long-term work in progress and cost of long-term construction in progress at the time of reporting. Code 240 = Code 241 + Code 242.

Cost of long-term work in progress ( Code 241)

Costs of long-term works in progress are expected costs to produce inventory but production is delayed, interrupted or temporarily suspended for more than one normal operating cycle of the enterprises at the time of reporting. This item is often used to present projects in progress of investors of real properties for sale which have slow commencement, slow progress.

This item records the net realizable value (cost price minuses the provision for devaluation set up for this amount ) of the cost of work in progress for more than one operating cycle, which do meet the definition of inventory according to accounting standards. Figures recorded in this item are based on the debit balance of account 154 - " work in progress" and the credit balance of account 2294 - "Provision against devaluation of goods in stock ".

Cost of construction in progress (Code 242)

This item records the total value of fixed assets that are being purchased, the cost of capital investment, the costs of great repair of fixed assets in progress or completed but not yet transferred or put in use. Figures recorded in this item are the debit balance of Account Debit 241 "Construction in progress"

- Long-term financial investments (Code 250)

It is a general indicator recording the total value of long-term financial investments at the time of reporting (after deducting provision for investment losses in other units), such as: Investments in subsidiaries, Investments in associates and joint ventures, investments in other units, investments held to maturity with remaining maturity of more than 12 months or more than one operating cycle. Code 250 = Code 251 + Code 252 + Code 253 + Code 254 + Code 255.

Investments in subsidiaries (Code 251)

This item records the value of investments in subsidiaries and subordinate units which have legal status in independent accounting which is essential subsidiaries (irrespective of the name or form of unit ) at the time of reporting. Figures recorded in this item are the debit balance of Account 221 "Investments in subsidiaries".

Investments in associated companies and joint-ventures (Code 252)

This item records the value of investments in associated companies and joint ventures at the time of reporting. Figures recorded in this item are the total debit balance of Account 222 "Investments in associated companies and joint ventures".

Investments in other units (Code 253)

This item records the investments in equity of other units, but enterprises have no rights in control, joint control, significant influence (other than investments in subsidiaries, associated companies, joint ventures). Figures presented in this item are the debit balance of account 2281 - "Investments in other units."

Provisions for long-term financial investments (Code 254)

This item records the provision for investment losses in other units because invested units suffer losses and investors may loss their capital at the time of reporting. Figures recorded in this item are the credit balance of account 2292 "Provision for investment losses in other units" and are recorded in negative number under the form of parentheses (...).

Investments held to maturity (Code 255)

This item records the investments held to maturity with the remaining term of more than 12 months from the time of reporting, such as term deposits, bonds, commercial papers and other debt securities. This item does not include loans recorded in item "receivables on long-term loans". Figures recorded in this item are debit balances of accounts 1281, 1282, 1288.

- Other long-term assets (Code 260)

It is a general item recording the total value of other long-term assets with maturity of more than 12 months at the time of reporting, such as long-term prepaid expenses, deferred income tax assets and long-term assets which are not presented in other items at the time of reporting. Code 260 = Code 261 + Code 262 + Code 268.

Long-term prepaid expenses (code 261)

This item records the amount prepaid for the provision of goods and services with a term of more than 12 months or more than one normal operating cycle since the time of prepayment; Goodwill and business advantage unallocated to expense at the time of reporting. Figures recorded in item "long-term prepaid expenses" are the Debit balance of Account 242 "prepaid expenses". Enterprises do not reclassify long-term prepaid expenses as short-term prepaid expenses.

 Deferred income tax assets (Code 262)

This item records the value of deferred income tax assets at the time of reporting. Figures recorded in item "deferred income tax assets " are based on the Debit balance of Account 243 " Deferred income tax assets ".

If the taxable temporary differences and deductible temporary differences are related to the same taxpayer and are settled at the same tax authority, deferred tax payable is offset to deferred tax assets. In this case, the item "Deferred income tax assets" records the difference between the deferred income tax assets which is greater than the deferred income tax payable.

Long term equipment, supplies and spare parts (Code 263)

This item records the net value (after deducting provision for devaluation) of equipment, materials and spare parts used for storage, replacement, preventing damage of assets but are not qualify for classification as fixed assets and are not classified as inventory due to having storage time of more than 12 months, or more than one normal operating cycle. Figures recorded in this item are based on detailed balance of account 1534 - "equipment, spare parts" (details of parts and equipment replacement stored for long-term) and detailed credit balance of account 2294 - "Provision for devaluation of inventories".

Other long-term assets (Code 268)

This item records the value of long-term assets other than the long-term assets mentioned above, such as valuable articles for display, museum, traditional introduction, history ... which are not classified as fixed assets and are not intended for sale within 12 months from the time of reporting. Figures recorded in this item are based on detailed balance of account 2288.

c) Total assets (Code 270)

It is a general indicator recording the total value of current assets of enterprises at the time of reporting, including short-term assets and long-term assets.

Code 270 = Code 100 + Code 200.

d) Liabilities (Code 300)

It is a general item recording the total liabilities at the time of reporting, including short-term debt and long-term debt. Code  300 = Code 310 + Code 330.

e) Short-term debt (Code 310)

It is a general item recording the total value of the debts payable with payment term of within 12 months or less than one normal operating, such as loans and short-term finance lease liabilities or supplier payables, taxes and payables to the State and employees, payable costs, inter-company payables, unearned revenue, provisions payable... at the time of reporting. Code 310 = Code 311 + Code 312 + Code 313 + Code 314 + Code 315 + Code 316 + Code 317 + Code 318 + Code 319 + Code 320 + Code 321 + Code 322 + Code 323 + Code 324.

Short-term supplier payables (Code 311)

This item records the amount payable to the seller with payment term of within 12 months or within one operating cycle at the time of reporting. Figures recorded in this item are based on the credit balance of account 331 "supplier payable” open in detail for each seller.

Short-term deferred revenues (Code 312)

This item records the amount advanced by the purchaser to buy products, goods, services, fixed assets, investment real property and enterprises must provide services within 12 months or within one normal operating cycle at the time of the report (not including the revenue received in advance). Figures recorded in this item are based on the arising credit amount in detail of account 131 "receivables from customers " opened in details for each customer.

Taxes and other payables to State (Code 313)

This item records the total amounts that enterprises must pay to the State at the time of reporting, including taxes, fees, charges and other payables. Figures recorded in this item are based on detailed credit balance of account 333 "Tax and other payables to the State".

Payables to employees (Code 314)

This item records the amounts that enterprises must pay to employees at the time of reporting. Figures recorded in this item are based on the credit balance of account 334 "Payables to employees".

Short-term expenses payable (code 315)

This item records the value of debts payable due to receipt of goods and services without invoice or expenses of the reporting period which have not had sufficient records and documents but shall definitely arise must be calculated into the cost of production, business and shall be paid within 12 months or within the next one normal operating cycle at the time of reporting, such as vacation pay accruals, interest payable ... Figures recorded in this item are based on detailed credit balance of account 335 "Accrued expenses".

Short-term intercompany payables (Code 316)

This item records the intercompany payables with the remaining recovery term within 12 months, or in a normal operating cycle at the time of reporting ( besides payable to business capital) between the superior unit and the subordinate unit which has no legal status in dependent cost-accounting and between subordinate units in an enterprise. Figures recorded in this item are based on the detailed credit balance accounts 1362, 1363, 1368. When the superior units prepare combined financial statement with subordinate units in dependent cost-accounting, this item is offset with the item "short-term intercompany receivables" in the balance sheet of dependent cost-accounting units.

Payables according to the progress of construction contracts (Code 317)

This item records the difference between total cumulative amount customers must pay according to the progress which is greater than the recorded accumulative revenue in proportion to the completed work by the end of the reporting period of construction contracts in progress. Figures recorded in this item shall be based on the credit Balance of account 337 " Payments under the progress of plan of construction contracts"

Short-term unearned revenue (Code 318)

This item records the unearned revenues corresponding to the obligations which enterprises shall fulfill within the next 12 months or one normal operating cycle at the time of reporting. Figures recorded in this item are detailed credit balance of account 3387 - "Unearned revenue".

Other short-term payables (Code 319)

This item records other payables with payment term of within 12 months or within one operating cycle at the time of the report, in addition to the liabilities recorded in other items, such as the value of assets detected surplus of unknown cause, payables to social insurance agencies, trade union fee, amounts received from short-term deposits... Figures recorded in this item are based on the detailed Credit balance of accounts: 338, 138, 344

Short-term loans and finance lease liabilities (Code 320)

This item records the total value of amounts that enterprises borrow and owe to banks, institutions, finance companies and other entities with maturities of within 12 months at the time of reporting. Figures recorded in this item are based on the detailed credit balance of accounts 341 and 34311 (details of payments which due in the next 12 months)

Provision for short term payables (Code 321) 

This item records the provision for amounts expected to be paid within 12 months, or within one next normal operating cycle at the time of reporting, such as provisions for warranty for products, goods, construction, provisions for restructuring, accrued expense for periodic repair of fixed assets, costs for environmental reconstitution... The provisions payable are often estimated which are not sure about the right time of payment, value payable and enterprises have not received goods and services from suppliers. Figures recorded in this item are based on the credit balance of account 352 "Provisions payable".

Bonus and bonus and welfare fund ( Code 322)

This item records bonus funds, bonus and welfare funds, reward fund of the executive management board unused at the time of reporting. Figures recorded in this item are the credit balance of account 353 "Bonus and bonus and welfare funds".

Price stabilization fund ( Code 323)

This item records the value of current price stabilization Fund at the time of reporting. Figures recorded in this item are the Credit balance of account 357 - Price Stabilization Fund.

Purchase and resale of government bonds (Code 324)

This item records the value of government bonds of the purchaser before the expiration of the contract of resale at the time of reporting. Figures recorded in the item are the Credit balance of Account 171 - "purchase and resale of government bonds."

g) Long-term liabilities (Code 330)

It is a general item recording the total value of long-term debt of enterprises including debt with the remaining payment term of 12 months or one normal operating cycle or more at the time of reporting, such as: payables to suppliers, internal payables and other long-term liabilities, long-term loans and finance lease liabilities... at the time of reporting. Code 330 = Code 331 + Code 332 + Code 333 + Code 334 + Code 335 + Code 336 + Code 337 + Code 338 + Code 339 + Code 340 + Code 341 + Code 342 + Code 343.

Long-term supplier payables (Code 331)

This item records the amount payable to the seller with payment term of more than 12 months or more than one operating cycle at the time of reporting. Figures recorded in this item are based on the Credit balance of account 331 "supplier payables” opened in detail for each seller.

Long-term deferred revenues (Code 332)

This item records the amount advanced by the purchaser to buy products, goods, services, fixed assets, investment real property and enterprises must provide services for more than 12 months or more than one normal operating cycle at the time of the report (not including the revenue received in advance). Figures recorded in this item are based on the credit arising amount in detail of account 131 "receivables from customers " opened in details for each customer.

Long-term expenses payable (code 333)

This item records the value of debts payable due to receipt of goods and services without invoice or expenses of the reporting period which have not had sufficient records and documents but shall be definitely arisen must be calculated into the cost of production, business and shall be paid after 12 months or after the next one normal operating cycle at the time of reporting, such interest payable of reporting period which is paid at the maturity of the long –term loan contract. Figures recorded in this item are based on detailed credit balance of account 335 "Accrued expenses".

Intercompany payables on working capital (Code 334)

Depending on the operating characteristics and management models of each unit, enterprises decentralize and prescribe dependent cost-accounting units to record capital allocated in this item or item "Contributions of owners "  Code 411 by enterprises.

Items are only recorded in the balance Sheet of subordinate units without legal status in dependent accounting, recording the amounts that subordinate units must pay to their superior units the working capital.

Figures recorded in this item shall be based on the credit balances of account 3361 "Intercompany payables on working capital ". When superior units set up the general balance sheet total of the whole enterprise, this item is offset with the item " working capital provided to subordinate units” in the Balance sheet of superior units.

Long-term intercompany payables (Code 335)

This item records the intercompany payables with the remaining payment term of more than 12 months, or more than one normal operating cycle at the time of reporting (besides payable on working capital) between the superior unit and the subordinate unit which has no legal status in dependent cost-accounting and between subordinate units in an enterprise. Figures recorded in this item are based on the detailed credit balance accounts 3362, 3363, 3368. When the superior units prepare combined financial statement with subordinate units in dependent cost-accounting, this item is offset with the item "long-term intercompany receivables" in the balance sheet of dependent cost-accounting units.

Long-term unearned revenue (Code 336)

This item records the unearned revenues corresponding to the obligations which enterprises shall fulfill after 12 months or after the next one normal operating cycle at the time of reporting. Figures recorded in this item are detailed credit balance of account 3387 - "Unearned revenue".

Other long-term payables (Code 337)

This item records other payables with payment term of more than 12 months or more than one operating cycle at the time of the report, in addition to the liabilities recorded in other items, such as: long-term deposits, long-term loans, differences between the deferred, installment sale price committed and long-term price in cash... Figures recorded in this item are based on the detailed Credit balance of accounts: 338, 344

Long-term loans and finance lease liabilities (Code 338)

This item records amounts that enterprises borrow and owe to banks, institutions, finance companies and other entities with maturities of more than 12 months at the time of reporting such as: Loans from banks, payables on finance lease fixed assets, sum received from normal bond issuance.. Figures recorded in this item are detailed Credit balance of accounts  341 and results of the credit balance of account 34311 subtracting (-) the Debit balance of account 34312 adding (+) the Credit balance of Account 34313

Convertible bonds ( Code 339)

This item records the value of principals of convertible bonds issued by the enterprises at the time of reporting. Figures recorded in this item are detailed Credit balance of account 3432 - "Convertible Bonds".

preference shares (Code 340)

This item  records the value of preference shares under par value which require the issuer to repurchase at an indentified time in the future. Figures recorded in this item are based on the detailed Credit balance of accounts 41112 - Preference shares (details of type of preference shares classified as liabilities).

 Deferred income tax (Code 341)

This item records the deferred enterprise income tax payable at the time of reporting. Figures recorded in this item shall be the Credit balance of account 347 " Deferred income taxes payable".

If the taxable temporary differences and deductible temporary differences are related to the same taxpayer and are settled at the same tax authority, deferred income tax payable is offset to deferred tax assets. In this case, the item "Deferred income tax assets" records the difference between the deferred income tax payable greater than the deferred tax assets.

Provision for long term payables (Code 342)

This item records the provision for amounts expected to be paid after 12 months, or after one next normal operating cycle at the time of reporting, such as provisions for warranty for products, goods, construction, provisions for restructuring, accrued expense for periodic repair of fixed assets, accrued expense for environmental reconstitution... The provisions payable are often estimated which are not sure about the right time of payment, value payable and enterprises have not received goods and services from suppliers. Figures recorded in this item are based on the credit balance of account 352 "Provisions payable".

Scientific and technological development fund (Code 343)

This item records the unspent scientific and technological development fund at the time of reporting. Figures recorded in this item are in the Credit balance of Account 356 "scientific and technological development fund."

h) Equity (Code 400 = Code 410 + Code 430)

- Equity (Code 410)

It is a general item recording the working capital owned by shareholders, members, such as investment capital of owners, funds deducted from post-tax profits and undistributed post-tax profits, differences upon asset revaluation, exchange rate differences ...

Code 410 = Code 411 + Code 412 + Code 413 + Code 414 + Code 415 + Code 416 + Code 417 + Code 418 + Code 419 + Code 420 + Code 421 + Code 422.

- Contributions from owners (Code 411)

This item records the total capital actually contributed by owners in enterprises (for joint-stock companies, contributions of shareholders at par value of shares are recorded) at the time of reporting. In dependent cost-accounting units, this item may record the capital allocated if enterprises prescribe dependent cost-accounting units for recording in Account 411. Figures recorded in this item are the Credit balance of account 411 "Contributions from owners". For joint stock companies, Code 411 = Code 411a + Code 411b

Ordinary shares with voting rights (No. 411a)

This item is only used in joint-stock companies, recording the par value of ordinary shares with voting rights. Figures recorded in this item are the Credit balance of Account 41111 - Ordinary shares with voting rights.

Preference shares (Code 411b)

This item records the value of preference shares under par value which the issuer is not obliged to repurchase. Figures recorded in this item are based on the detailed Credit balance of accounts 41112 - Preference shares (details of type of preference shares classified as equity).

- Share premium (Code 412)

This item records the share premium at the time of reporting of joint-stock companies. Figures recorded in this item are the Credit balance of account 4112 "Share premium". If account 4112 has Debit balance, this item is written in negative numbers under the form of parentheses (...).

- Conversion options on bond ( Code 413)

This item records the value of capital component of convertible bonds issued by enterprises at the time of reporting. Figures recorded in this item are detailed Credit balance of account 4113 - "Conversion options on bonds".

- Other capital of owners (Code 414)

This item records the value of other capital of owners at the time of reporting. Figures recorded in this item are the Credit balance of account 4118 – “Other capital”.

- Treasury shares ( Code 415)

This item records the value of current treasury shares at the time of reporting of joint-stock companies. Figures recorded in this item are the Debit balance of account 419 " Treasury share are written in negative numbers under the form of parentheses (...).

- Differences upon asset revaluation (Code 416)

This item records the total differences upon asset revaluation recorded directly in current equity at the time of reporting. Figures recorded in this item are the Credit balance of the account 412 "Differences upon asset revaluation ". If account 412 has the Debit balance, the item is recorded in negative numbers under the form of parentheses (...). 

- Exchange differences (Code 417)

This item records the exchange differences arising in the period prior to operation of enterprises of which 100% charter capital is held by the State performing the tasks of security, national defense, macroeconomic stability which are handled at the time of reporting.

Figures recorded in this item are the Credit balance of Account 413 "exchange rate differences". If account 413 has the Debit balance, this item shall be recorded in negative numbers under the form of parentheses (...).

In case foreign currencies are used as currency unit in accounting, this item records the difference exchange rate due to conversion from financial statements prepared in foreign currencies into Vietnam dong.

- Development investment funds (Code 418)

This item records the unspent development investment funds at the time of reporting. Figures recorded in this item are in the Credit balance of Account 414 "development investment funds."

- Enterprise reorganization assistance fund (Code 419)

This item records the unspent enterprise reorganization assistance fund at the time of reporting. Figures recorded in this item are the Credit balance of Account 417 - "Enterprise reorganization assistance fund."

- Other equity fund (Code 420)

This item records the other equity funds of enterprises set up from current undistributed post-tax profits at the time of reporting. Figures recorded in this item are the Credit balance of Account 418 "Other equity funds".

- Undistributed post-tax profits (Code 421)

This item records the profit (or loss) after tax unsettled or undistributed at the time of reporting. Figures recorded in this item are the Credit balance of Account 421 "Undistributed post-tax profits." If account 421 has Debit balance, the figures in this item are written in negative numbers under the form of parentheses (...). Code 421 = Code 421a + Code 421b

Undistributed post-tax profits accumulated by the end of the previous period (Code 421a)

This item records the profit (or loss) unsettled or undistributed accumulated by the end of the previous period (beginning of the reporting period).

Figures recorded in the item "undistributed post-tax profits accumulated by the end of the previous period" on the Balance Sheet are the Credit balance of account 4211 "undistributed post-tax profits of previous year" are plus the Credit balance of Account 4212 "undistributed post-tax profits of current year," detailing the cumulative profit from the beginning of the year to the beginning of the reporting period. If accounts 4211, 4212 have the Debit balance, figures in this item shall be recorded in negative numbers under the form of parentheses (...).

Figures recorded in the item “undistributed post-tax profits by the end of previous period” on the annual Balance sheet are the Credit balance of Account 4211 "Undistributed post-tax profits of previous year." If accounts 4211, 4212 have Debit balance, the figures in this item are written in negative numbers under the form of parentheses (...).

Undistributed post-tax profits of current period (Code 421b)

This item records the profit (or loss) unsettled or undistributed accumulated arising in the reporting period.

Figures recorded in the item "undistributed post-tax profits of current period" on the quarterly Balance Sheet are the Credit balance of account 4212 "undistributed post-tax profits of current year", detailing the profit arising in reporting quarter. In case account 4212 has the Debit balance, figures in this item are written in negative numbers under the form of parentheses (...).

Figures recorded in the item "undistributed post-tax profits of current period" on the annual balance Sheet are the Credit balance of account 4212 "undistributed post-tax profits of current year" In case account 4212 has the Debit balance, figures in this item are written in negative numbers under the form of parentheses (...).

- Capital expenditure fund ( Code 422)

This item records the total current capital expenditure fund at the time of reporting. Figures recorded in this item are the Credit balance of Account 441 "Capital expenditure fund".

Funding and other funds ( Code 430)

It is a general item recording the total non-business and project funding allocated to non-business activities, projects (after deducting non-business, project expenditures); Funding that forms fixed assets at the time of reporting. Code 430 = Code 431 + Code 432.

Funding (Code 431)

This item records the non-business, project funding allocated but unused, or non-business, project expenditures greater than non-business, project findings. Figures recorded in this item are the differences between the Credit balance of Account 461 "Non-business funds” and the Debit balance of account 161 "Non-business expenditures". In case the Debit balance of account 161 is greater than the Credit balance of Account 461, this item is recorded in negative numbers under the form of parentheses (...).

Funds that form fixed assets (Code 432)

This item records the total current funds that forms fixed assets at the time of reporting. Figures recorded in this item are the Credit balance of Account 466 "Funds that form fixed assets".

k) Total capital (Code 440)

It records the total capitals that are used for asset acquisition of enterprises at the time of reporting. Code 440 = Code 300 + Code 400.

2. Preparation and presentation of the balance sheet of enterprises which do not meet the assumption of continuous operation (Form B 01 / CDHDD - DNKLT)

Presentation in the Balance sheet of enterprises which Table do not meet the assumption of continuous operation is made the same with the balance sheets of enterprises which are operating except a number of adjustments:

 Short-term and long-term shall not be distinguished: The items set are not based on the remaining period from the reporting date which is over 12 months or within 12 months or more than one normal operating cycle or within one normal operating cycle;

(b) Items of provisions for assets, liabilities revalued under net realizable value, recoverable value or fair value shall not be presented;

Some items have setting method which is different from the Balance sheet of enterprises which are operating continuously as follows:

a) Item "trading securities" (Code 121)

This item records the book value of trading securities after revaluation. Enterprises shall not present the item "provisions for devaluation of trading securities" because the provisions for devaluation are recorded directly a decrease in the book value of trading securities.

b) Items relating to investments in subsidiaries, associated companies and joint ventures, investments in other units are recorded in the book value after revaluation of investments above. Enterprises shall not present the item "Provision for long-term financial investments" because the provisions are recorded a decrease directly in the book value of the investments.

c) Items relating to receivables are recorded under the book value after revaluation of receivables. Enterprises shall not present the item "Provision for doubtful receivables" because the provisions are recorded a decrease directly in the book value of receivables.

d) Item "Inventories" (Code 140):

This item records the book value of inventories after revaluation. Figures in this item include costs of work in progress and equipment, materials and spare parts classified as long-term on the Balance Sheet of enterprises which are operating continuously . Enterprises shall not present the item "provision against devaluation of goods in stock " because the provisions for devaluation are recorded a decrease directly in the book value of inventory.

e) Items relating to tangible assets, intangible assets, finance lease assets, investment real properties are recorded at book value after revaluation of such assets . Enterprises shall not present the item "Cost" because the book value is revalued price, shall not present the item "accumulated depreciation " because the depreciation has been recorded a decrease directly in the book value of assets.

Other items are set and presented by combining contents and figures of corresponding in the long-term and short-term parts of enterprises which are operating continuously.

Article 113. Guidelines on preparation and presentation of income statement (Form B02-DN)

1. Content and structure of reports:

a) Income statement records situations and results of operations and business of enterprises, including the results of operations and the results from financial operations and other operations of enterprises.

When preparing consolidated income statement between enterprises and subordinate units which have no legal status in dependent accounting, enterprises must eliminate all of the revenues, income, expenses incurred from intra-company transactions.

b) Income statements shall include 5 columns:

- Column 1: Report items;

- Column 2: Code of the relevant items;

- Column 3: Number corresponding to items of this report is shown in the notes to the financial statement;

- Column 4: Total incurred during the annual reporting period;

- Column 5: Figures from previous years (for comparison).

2. Basis of reporting

- Based on income statement of previous year.

- Based on general accounting books and detailed accounting books in period used for accounts from 5 to 9.

3. Contents and methods of preparation of item in income statement

Revenues from sales and service provisions (Code 01):

- This item records the total revenues from sales of goods and finished products, investment real property, revenues from service provision and other revenues in the reporting year of enterprises. Figures recorded in this item are arising accumulation of the Credit Side of Account 511 "Revenue from sales and service provisions" in the reporting period.

When superior units make general reports with subordinate units without legal status, revenues from sales and service provisions arising from intra-group transactions are all excluded.

- This item does not include indirect taxes, such as VAT (including VAT paid under subtraction method), excise tax, export taxes, environmental protection taxes and other indirect taxes and fees.

Revenue deductions (Code 02):

This item records the total amounts recorded a decrease in the total revenue in year, including: trade discounts, sales allowances, sales returns in the reporting period. Figures recorded in this item are accumulation the arising sum in the Debit side of Account 511 "Revenue from sales and service provisions" corresponding to the Credit side of Account 521 "revenue deductions" during the reporting period.

This item does not include indirect taxes and fees that enterprises are not entitled to enjoy payable to the state budget (to be recorded a decrease in accounting books of account 511) because these amounts are essential collections of the State, not in the revenue structure and are not considered revenue deductions.

Net revenues from sales and service provisions (Code 10):

This item records the revenues from sales of goods, finished goods, investment real property, revenues from service provision and other deducted revenues (trade discounts, sales allowances, sales returns) during the reporting period, which is the basis of calculation of income of enterprises’ operations. Code 10 = Code 01 - Code 02.

Costs of goods sold ( Code 11):

This item records the total cost of goods, investment real property, the production cost of finished goods sold, direct costs of completed service volume provided, other costs included in cost or recorded a decrease in cost of goods sold during the reporting period. Figures recorded in this item are arising accumulated amounts of Credit side of Account 632 "Cost of goods sold" in the reporting period corresponding to the Debit side of Account 911 "income summary".

When superior units make general reports with subordinate units without legal status, revenues costs of goods sold arising from intra-group transactions are all excluded.

Gross revenues from sales and service provisions (Code 20):

This indicator records the difference between the net revenue from sales of goods, finished products, investment real property and service provision and the cost of goods sold incurred during the reporting period. Code 20 = Code 10 - Code 11.

Financial income ( Code 21):

This item records the net financial income incurred during the reporting period of enterprises. Figures recorded in this item are the arising accumulated amounts of the Debit side of Account 515 " Financial income " corresponding to the Credit side of Account 911 "income summary" during the reporting period.

When superior units make general reports with subordinate units without legal status, financial income arising from intra-group transactions are all excluded.

Financial expense ( Code 22):

This item records the total financial income, including loan interest payable, copyright expenditures, joint-venture expenditures, ... incurred during the reporting period of enterprises. Figures recorded in this item are the arising accumulated amounts of the Credit side of Account 635 " Financial expense" corresponding to the Debit side of Account 911 "income summary" during the reporting period.

When superior units make general reports with subordinate units without legal status, financial expenses arising from intra-group transactions are all excluded.

Interest expense (Code 23):

This item records the cost of accrued interest included in financial expenses during the reporting period. Figures recorded in this item are based on detailed accounting books of Account 635.

Selling expense ( Code 25):

This item records the total selling expense of goods, finished goods sold, provided services incurred in the period. Figures recorded in this item are the total numbers of arising amounts of Credit side of Account 641 "Selling expense" corresponding to the Debit side of Account 911 "Income summary".

Enterprise administrative expense ( Code 26):

This item records the total enterprise administrative expenses incurred in the period. Figures recorded in this item are the total numbers of arising amounts of Credit side of Account 642 "Enterprise administrative expense" corresponding to the Debit side of Account 911 "Income summary" in reporting period.

Net profit from operations (Code 30):

This item records the income of enterprises during the reporting period. This item is calculated on the basis of gross profit on sales and service provisions are plus (+) financial income minus (-) financial expenses, selling expense and enterprise administrative expense incurred during the reporting period. Code 30 = Code 20 + (Code 21 - Code 22) - Code 25 - Code 26.

Other income (Code 31):

This item records other income incurred in the period. Figures recorded in this item are based on the total arising amounts of Debit side of Account 711 "Other income" corresponding to the Credit side of Account 911 "Income summary" in reporting period.

For liquidation or sale of fixed assets, investment real property, figures recorded in this item are the differences between sums received from the liquidation or sale of fixed assets, investment real property higher than the net book value of fixed assets, investment real property and liquidation expenses.

When superior units make general reports with subordinate units without legal status, other income arising from intra-group transactions are all excluded.

Other expenses (Code 32):

This item records the total other expenses incurred in the period. Figures recorded in this item are based on the total arising amounts of Credit side of Account 811 "Other income" corresponding to the Debit side of Account 911 "Income summary" in reporting period.

For liquidation or sale of fixed assets, investment real property, figures recorded in this item are the differences between sums received from the liquidation or sale of fixed assets, investment real property less than the net book value of fixed assets, investment real property and liquidation expenses.

When superior units make general reports with subordinate units without legal status, other expenses arising from intra-group transactions are all excluded.

Other profit (Code 40):

This item records the difference between other income (after deduction of VAT payable under subtraction method) and other expenses incurred during the reporting period. Code 40 = Code 31 - Code 32.

Total pre-tax profit (Code 50):

This item records the total profit earned in reporting year of enterprises before deducting expenses on enterprise income tax from trading, other operations incurred during the reporting period. Code 50 = Code 30 + Code 40.

Current enterprise income tax expense (Code 51):

This item records the current enterprise income tax expenses incurred in reporting year. Figures recorded in this item are based on the total arising number of Credit side of Accounts 8211, " Current enterprise income tax expense" corresponding to the Debit side of Account 911 "income summary" in the detailed accounting books of Account 8211, or based on the arising numbers of the Debit side of Account 8211 corresponding to the Credit side of Account 911 in the reporting period (in this case figures are written in this item in negative numbers under the form of parentheses (...) in accounting books detailing account 8211).

Deferred enterprise income tax expense (Code 52):

This item records the deferred enterprise income tax expenses or the deferred enterprise income tax income incurred in reporting year. Figures recorded in this item are based on the total arising number of Credit side of Accounts 8212 " Deferred enterprise income tax expense" corresponding to the Debit side of Account 911 "income summary" in the detailed accounting books of Account 8212, or based on the arising numbers of the Debit side of Account 8212 corresponding to the Credit side of Account 911 in the reporting period (in this case figures are written in this item in negative numbers under the form of parentheses (...) in accounting books detailing account 8212).

Profits after enterprise income tax ( Code 60):

This item records the total net profit (or loss) after tax from operations of enterprises (after deducting enterprise income tax expenses) incurred during the reporting year. Code 60 = Code 50 – (Code 51 + Code 52).

Earnings per Share (Code 70):

This item records the earnings per share, excluding instruments released in the future, potentially diluting the share value. This item is presented in the financial statements of joint-stock companies being independent enterprises. For parent companies being joint-stock companies, this item is presented in the consolidated financial statements, not presented in the separate financial statements of parent companies.

In case bonus and bonus and welfare funds are deducted from post-tax profits, earnings per share are determined by the following formula:

The determination of the profit or loss allocated to shareholders holding common shares and the number of weighted mean of common shares circulated in the period is done under the guidance of Circular No. 21/2006 / TT BTC dated March 20, 2006 of the Ministry of Finance and documents amending, supplementing, replacing.

Diluted earnings per share (Code 71):

This item records the diluted earnings per share, taking into account the impact of instruments in the future that may be converted into shares and may dilute the value of shares.

This item is presented in the financial statements of joint-stock companies being independent enterprises. For parent companies being joint-stock companies, this item is presented in the consolidated financial statements, not presented in the separate financial statements of parent companies.

Diluted earnings per share are defined as follows

Determination of profit (or loss) allocated to shareholders holding common shares used to calculate diluted earnings per share

If the Company presents earnings per share in the consolidated financial statements, the profit or loss after enterprise income tax in period is the profit or loss after enterprise income tax calculated on the basis of consolidated information. In case the company presents in the separate financial statements, the profit or loss after enterprise income tax in period is the profit or loss after tax of the company.

Amounts adjusted a decrease in profit or loss after enterprise income tax to calculate the profit or loss allocated to common shares when determining diluted earnings per share

a1. Dividends of preference shares: Dividends of preference share include: Dividends of non-cumulative preference shares which are not cumulative notified during the reporting period and dividends of cumulative preference shares arising during the reporting period. Dividends of preference shares are calculated as follows:

- The positive difference between the fair value of payments to the owner and the book value of preference shares when joint-stock companies repurchase the preference shares of owners.

- The positive difference between the fair value of common shares or other payments made under conditions for beneficial conversion at the time of payment and the fair value of the common shares issued under original converting condition.

- Dividends or other items related to dilutive potential common shares;

- Gains are recorded in the period related to dilutive potential common shares; and

- Other factors reduce post-tax profits if converting dilutive potential common shares into common shares. For example, the cost to convert the convertible bonds into common shares reducing the profits after enterprise income tax in period.

Determination of adjustments of an increase in profits or losses after enterprise income tax:

- The positive difference between the fair value of payments to the owner and the book value of preference shares when joint-stock companies repurchase the preference shares of owners.

- Factors increase post-tax profits if converting dilutive potential common shares into common shares. For example, the cost to convert the convertible bonds into common shares, enterprises shall be reduced loan interest expense related to the convertible bond and the increase in profit after enterprise income in period.

Number of shares used to calculate diluted earnings per share

Number of shares used to calculate diluted earnings per share is defined as the weighted average of common shares circulated in period are plus (+) the weighted average of common shares which shall be issued more in case all dilutive potential common shares are converted into common shares.

The determination of the number of weighted mean of common shares circulated in the period is done under the guidance of Circular No. 21/2006 / TT BTC dated March 20, 2006 of the Ministry of Finance and documents amending, supplementing, replacing.

b. Determination of number of weighted mean of common shares issued more in period

Common shares that shall be issued in the period considered potential common shares reducing interest of shares; including:

- call option of purchase the warrants and equivalent instruments;

- Convertible financial instruments;

- Common shares issued with conditions;

- Contracts settled in common shares or in cash;

- Purchased option;

- Issued put option.

The determination of the number of common shares that shall be issued in period shall be complied with the provisions of Accounting Standards, "Earnings per Share".

Article 114. Guidelines on preparation and presentation of cash flow statement (Form B03 - DN)

1. Principles of preparing and presenting cash flow statement

The preparation and presentation of cash flow statement yearly and in interim accounting periods must comply with the provisions of Accounting Standard "Cash flow statement" and Accounting Standards "interim financial statement ". Method for preparation of cash flow statements is guided for the most common transactions, enterprises base on the nature of each transaction to present cash flows accordingly if there is no specific guidance in this Circular. Items without figures are not presented, enterprises may renumber but must not change codes of items.

Short-term investments considered cash equivalents presented in cash flow statements only including short-term investments with recovery term or maturity of within three months may be converted easily into a certain amount and there is no risk of conversion into money from the date of buying such investments at the time of reporting. For example, bank exchange bills, treasury bills, deposit certificates ... with recovery term or maturity of less than 3 months from date of purchase.

Enterprises must present the cash flows in the cash flow Statement in three types of activities: trading, investment and financing activities as prescribed by the standards of "Cash flow statement":

- Cash flows from trading are cash flows arising from activities generating main revenues of enterprises and activities other than investing or financing activities;

- Cash flows from investment are cash flows arising from purchase, construction, liquidation or sale of long-term assets and other investments which are not classified as cash equivalents;

- Cash flows from financial activities are cash flows arising from operations generating changes in the size and structure of equity and borrowing capital of enterprises.

Enterprises may present cash flows from trading, investing and financial activities in a manner that best suits to the characteristics of the enterprises.

The following cash flows arising from trading, investing and financial activities are reported on a net basis:

- Collecting money and paying of customers such as rental collected, paid and repaid to the owner of the property;

- Collecting money and paying for items with fast turnarounds, short maturities such as: Buying, selling foreign currencies; buying and selling investments; loans or other short-term loans with payment term of within 3 months.

Cash flows arising from transactions in foreign currency must be converted into the official currency used in accounting books and financial statements under the exchange rate at the arising time of transactions.

Transactions in investments and finance which do not directly use cash or cash equivalents are not presented in the Cash flow statement, for example:

- The purchase of assets by receipt of debts related directly or through finance lease operations;

- The purchase of an enterprise through the issuance of shares;

- The transfer of debt into equity.

The cash and cash equivalents at the beginning and end of the period, the effect of changing exchange rates in currency conversion and current cash equivalents in foreign currencies at the end of period must be presented in separate items in Cash flow statements for comparison of figures with the corresponding items in the Balance Sheet.

Enterprises must present values ​​and reasons of cash and cash equivalents which have the great balance at end of period held by enterprises but unused due to the limitation of legislation or other constraints imposed on enterprises.

If enterprises borrow to make payments directly to contractors, suppliers of goods and services (loans are transferred directly from the lender to the contractors and suppliers without being transferred through the accounts of enterprises), enterprises must still present on the cash flow statement, namely:

- The amount borrowed is presented as cash inflows from financing activities;

- The amount paid to suppliers of goods, services or to contractors is presented as cash outflows from trading or investments, depending on each transaction.

In case enterprises incur the offsetting payment for the same object, the presentation in cash flow statement shall comply with the following principles:

- If the offsetting relates to transactions classified in the same cash flows, enterprises shall present on a net basis (in dissimilar barter transactions...);

- If the offsetting relates to transactions classified in different cash flows, enterprises shall not present on a net basis but must present separately the value of each transaction (for example offsetting the selling money receivable with borrowings ...).

12. For the cash flow from repurchases and resale of government bonds and securities REPO transactions: The seller presents it as the cash flow from financial activities; The buyer presents it as the cash flow from investing activities.

2. Basis of preparation of cash flow statement

The preparation of cash flow statement is based on:

- the Balance sheet;

- The income statement;

- The notes to the financial statements;

- The cash flow statement of previous period;

- The other accounting documents, such as: General accounting books, detailed accounting books of accounts "Cash", "Cash in bank", "Cash in transit"; General accounting books and detailed accounting books of the relevant accounts, spreadsheets and allocation of depreciation of fixed assets and other detailed accounting documents...

3. Requirements for opening and recording accounting books served for preparation of cash flow statement

- Accounting book detailing the amounts receivable and payable, inventory must be monitored in detail for each transaction so that it is able to be presented cash flows recovered or paid in three types of activities: Trading, investment and financial activities. For example: Amounts paid to contractors related to fundamental construction are classified as cash flows from investment, amounts paid to suppliers of goods and services for the production and trading are classified as Cash flows from trading.

- Accounting books detailing accounts recording the money must be detailed to monitor the cash flows collected and paid related to three types of activities: trading, investment and financial activities as a general basis in preparation of cash flow statement. For example, for the payment to banks of loan principal and interest, accountants must record separately the amount paid for loan interest as cash flows from trading or investments and the amount paid for loan principal as cash flows from financial activities.

- At the end of the accounting year, when preparing cash flow statements, enterprises must identify short-term investments with recovery term or maturity of less than 3 months from date of purchase which meets the definition of cash equivalents in consistence with the provisions of the Standards "Cash flow statement" to exclude from the cash flows from investment. The value of the cash equivalents are plus (+) to the item "Cash and cash equivalents at end of period" in the cash flow statement.

4. Methods of preparing annual Cash flow statements

Reporting on items of cash flows from trading:

Cash flows from trading record the cash inflows and cash outflows related to production, trading in the period, including cash flows related to securities held for trading purposes.

Cash flows from trading are reported in either methods: direct or indirect method.

Reporting on items of cash flows from trading under direct method (see Form B 03-DN)

Principles of report:

Under the direct method, the cash inflows and cash outflows from trading are determined and presented in the Cash flow statement by analyzing and summarizing directly sums received and paid according to each content of revenues and expenditures from the general accounting books and the details of enterprises.

Method of setting up specific items

- Revenues from sales and service provisions and other revenues (Code 01)

This item is set up based on the total amount collected (total payments) in the period from the sale of goods, finished goods, service provisions, copyright fees, fees, commissions and other revenues (such as sale of trading securities), including amounts collected from the debts receivable related to the sale of goods or provision of services and other revenues arising from the previous period, but received money in current period and the advanced amount of purchasers of goods and services.

This item does not include sums received from liquidation, sales of fixed assets, investment real property, sums received from loans, investment contribution in other units, shared dividends and profits and other revenues classified as cash flows from investment; Sums received from borrowings and capital contributed by the owners classified as cash flows from financial activities.

Figures recorded in this item are from the accounting books of Accounts 111, 112 (money received), accounting books of accounts receivable (details of sums received from sales, service provision immediately paid for liabilities), after comparing with the accounting books of accounts 511, 131 (details of revenues from sales, service provision of which money is paid immediate, the amount of recovery of receivables or advances in period) or Accounts 515, 121 (details of sums received from the sale of trading securities).

- Cash paid to suppliers of goods and services (Code 02)

This item is set up based on the total amount paid in the period due to the purchase of goods and services, payment of service charges for manufacturing, trading, including the amounts spent on buying trading securities and amounts paid for debts payable or advanced to suppliers of goods or services related to production and trading.

This item does not include the amounts spent to purchase of fixed assets, investment real property, construction (including the purchase of raw material used for construction), money spent on lending and investment contribution in other units, and other expenses classified as cash flows from investment; Amounts paid the principal, returned to the owners, dividends and interest paid to owners classified as cash flows from financial activities.

Figures recorded in this item are from the accounting books of Accounts 111, 112 (money paid), accounting books of accounts receivable (details of loans received or debts collected immediately paid for liabilities), after comparing with the accounting books of accounts 331, accounts recording inventories. This item is recorded in negative numbers under the form of parentheses (...).

- Amounts paid to employees (Code 03)

This item is set up based on the total amount paid to employees during the period of salary, wages, allowances, bonuses ... paid or advanced by enterprises.

Figures recorded in this item are from the accounting books of Accounts 111, 112 (detailing payments to employees), after comparing with the accounting books of Account 334 (details of sums paid in cash) in reporting period. This item is written in negative numbers under the form of parentheses (...).

- Interest paid (Code 04)

This item is set up based on the total amount of interest paid during the reporting period, including interest incurred in period and paid in current period, interest payable of previous period paid in current period, interest prepaid in current period.

This item does not include the amount of interest paid during the period capitalized into the value of assets in progress classified as cash flows from investment. In case the interest paid in the period has been capitalized and included in the financial cost, accountants shall base on interest capitalizing rate applied to the reporting period in accordance with the provisions of Accounting Standards “ Borrowing cost " to determine the interest payable of cash flows from trading and cash flows from investments.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 (details of loan interest payments); accounting books of accounts receivable (details of interest payments from sums received from receivables) in the reporting period, after comparing with the accounting books of Account 335, 635, 242 and other related accounts. This item is written in negative numbers under the form of parentheses (...).

- Enterprise income tax paid ( Code 05)

This item is set up based on the total amount paid for enterprise income tax to the State during the reporting period, including the enterprise income tax paid in current period, enterprise income tax owed from previous period paid in current period and enterprise income tax prepaid (if any).

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 (detailing payments of enterprise income tax), after comparing with the accounting books of Account 3334. This item is written in negative numbers under the form of parentheses (...).

- Other receipts from trading ( Code 06)

This item is set up based on the total amounts received from other sums of trading, in addition to sums recorded in Code 01, such as: Receipts from other income (amounts received from indemnity, fine, bonuses and other revenues ...); Sum received from tax refund; Sum received from receipt of deposits; Sum recovered of deposits; Sum received from non-business, project funding (if any); Sum rewarded, supported by outside organizations or individuals; Sum received recorded an increase in funds paid by the superior or inferior units...

Figures recorded in this item are from the accounting books of Accounts 111, 112 after comparing with the accounting books of accounts 711, 133, 141, 244 and the accounting books of accounts related in the  reporting period .

- Other expenditures on trading ( Code 07)

This item is set up based on the total amount spent for other items, in addition to the amounts spent related to production, trading in the reporting period recorded in Code 02, 03, 04, 05 such as: Payments for compensation, penalty and other expenses; Payments of taxes (excluding enterprise income tax); Payments of fees and charges, land rent; Payment of social insurance, health insurance, unemployment insurance, unions fees; Payments for deposits; Refund of receipt of deposits, direct expenditure by provisions payable; direct expenditure from bonus and bonus and welfare fund; science and technology fund; Direct expenditures from other funds of equity; direct expenditures from non-business, project funding ...

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113  in the reporting period, after comparing with the accounting books of Account 811, 161, 244, 333, 338, 344, 352, 353, 356 and other related accounts. This item is written in negative numbers under the form of parentheses (...).

- Net cash flow from trading ( Code 20)

Item "Net cash flow from trading " records the difference between the total amount received and the total amount paid from trading during the reporting period. Figures recorded in this item are calculated on the total figures of items from Code 01 to Code 07. If the figures in this item are negative numbers, they shall be shown in parentheses (...).

Code 20 = Code 01 + Code 02 + Code 03 + Code 04 + Code 05 + Code 06 + Code 07.

Reporting on items of cash flows from trading under indirect method (see Form B 03-DN)

Principles of report:

Under the indirect method, cash inflows and cash outflows from trading are calculated and determined primarily by adjusting the profit before enterprise income tax of trading out of impact of non-cash items, changes in the period of inventory, receivables and payables from trading and amounts of which cash impact is the cash flows trading, including:

- The non-cash expenses such as: depreciation of fixed assets, provisions ...

- Non-cash profits and losses such as profit and loss of exchange rate differences, capital contributions by non-monetary assets;

- Profits and losses classified as cash flows from trading, such as: Profits or losses in liquidation, sales of fixed assets and investment real property, interest from loans, interest from deposits, shared dividends and profits...; Interest expenses recorded in income statements in the period.

- Cash flows from trading adjusted continuously to the change in working capital, long-term prepaid expenses and other revenues and expenses from trading, such as:

Changes in the reporting period of inventory item, receivables, payables from trading;

Changes in prepaid expenses;

Interest paid;

Paid enterprise income tax;

Other receipts from trading;

Other expenses from trading.

Method of setting up specific items

- Pre-tax profits ( Code 01)

This item is from the item the total pre-tax accounting profit (Code 50) in the income statements in the reporting period. If this figure is negative (loss), it is recorded in parentheses (...).

- Depreciation of fixed assets and investment real property (Code 02)

In case enterprises separate the depreciation in inventory and the depreciation counted in the income statements in the period: Item "Depreciation of fixed assets and investment real property" only includes the depreciation counted in the income statements in the period; Item "Increase or decrease in inventory" does not include the depreciation in the value of inventories at the end of the period (undetermined to be consumed in period);

In case enterprises cannot separate the depreciation in inventory and the depreciation counted in the income statements in the period: Item "Depreciation of fixed assets and investment real property" includes the depreciation counted in the income statements in the period are plus the depreciation related to inventories unconsumed; Item "Increase or decrease in inventory"  includes the depreciation of fixed assets in the value of inventories at the end of the period (undetermined to be consumed in period);

In all cases, enterprises must exclude the depreciation in the value of construction in progress, the depreciation recorded a decrease in funding, bonus and bonus and welfare fund that forms fixed assets, decrease in science and technology development fund that forms fixed assets in the period from the Cash flow statement. This figure is plus (+) to the figure of the item "Pre-tax profit ".

- Provisions (Code 03)

This item records the influence of the setting, refund and use of provisions to the cash flows of the reporting period. This item is set up based on the difference between the beginning balance and the ending balance of provisions for asset losses (provisions for devaluation of trading securities, provision for loss of financial investment, provisions for devaluation of inventories, provisions for bad debts) and provisions payable in the balance sheet.

Figures of this item are plus (+) to the figures of "Pre-tax profit " if the total ending balance of the provision is greater than the total beginning balance or is subtracted from the figures of item "Pre-tax profit " if the total ending balance of the provision is less than the total beginning balances and recorded in negative numbers under the form of parentheses (...).

- Profits / losses of exchange rate differences from revaluation of accounts derived from foreign currencies (Code 04)

This item records the interests (or losses) of exchange rate differences from revaluation of accounts derived from foreign currencies recorded in pre-tax profit in the reporting period. This item is set up based on the difference of Credit arising numbers and Debit arising numbers of Account 4131 compared with the accounting books of Account 515 (details of interest from revaluation of accounts derived from foreign currencies) or Account 635 (details of losses from revaluation of accounts derived from foreign currencies).

Figures in this item are subtracted (-) from the figures of the item "Pre-tax profit ", if there are interests in exchange differences, or are plus (+) to the item "Pre-tax profit ", if there are losses in exchange differences.

- Profits / losses from investment (Code 05)

This item is based on the total profit or loss arising in the period recorded in pre-tax profit, but classified as cash flows from investment, including:

Gains and losses from liquidation, sales of fixed assets, investment real property;

Gains and losses from the revaluation of non-monetary assets contributed as capital, investment in other units

Gains and losses from the sale or recovery of financial investments (excluding profit or loss of buying and selling trading securities), such as: investments in subsidiaries, joint ventures and associates; Investments held to maturity;

Losses or refund of losses of investments held to maturity;

Loan interest, deposit interest, dividends and profits shared.

This item is set up based on the accounting books of Accounts 5117, 515, 711, 632, 635, 811 and other related accounts (details of profit and loss defined as cash flows from investment) during the reporting period.

Figures in this item are subtracted (-) from the figures of item  "Pre-tax profits" if investment has net profits recorded in negative numbers under the form of parentheses (...); or are plus (+) to item "Pre-tax profit ", if investment has net losses.

- Interest expense (Code 06)

This item records interest expense recorded in income statements in the reporting period, including the costs of bond issuance of common bonds and convertible bonds; The interest expense every period according to the actual interest rate recorded an increase in the debt component of convertible bonds. This item is set up based on the accounting books of account 635 (details of interest expense in reporting period) after comparing with the item "Interest expense" in the report on income.

Figures in this item are added to the figures of item "Pre-tax profit "

- Other adjustments (Code 07)

This item records the deduction or refund the Price Stabilization Fund or the scientific and technological development Fund in the period. This item is set up based on the accounting books of accounts 356, 357.

Figures of this item are added to the figures of item "Pr—tax profits" if during the period, more funds are set up or are subtracted from the item "Pre-tax profit " if during the period, funds are refunded.

- Operating profit before changes in working capital (Code 08)

This item records the cash flows generated from operating activities during the reporting period after excluding the impact of items of non-cash income and expense. This item is set up based on the profit before enterprise income tax are plus (+) adjustments. Code 08 = Code 01+ Code 02 + Code 03 + Code 04 + Code 05 + Code 06 + Code 07. If the figures in this item are negative number, they shall be shown in parentheses (...). 

- Increase or decrease in amounts receivable (Code 09)

This item is set up based on the total difference between the ending balance and the beginning balance of accounts receivable (details related to manufacturing, business), such as: Accounts 131, 136 , 138, 133, 141, 244, 331 (details of prepaid amounts to the sellers) during the reporting period.

This item does not include amounts receivable related to investment, such as: The amount advanced for construction contractors; Receivables on loans (principal and interest); Receivables on deposit interest, dividends and profit shared; Receivables on liquidation, sales of fixed assets, investment real property, financial investments; Value of fixed assets pledged or mortgaged ...

Figures in this item are plus (+) to the item "Operating profit before changes in working capital" if the total ending balances are less than the total opening balances. Figures of this item are subtracted (-) from figures of the item "Operating profit before changes in working capital" if the total ending balances are greater than the total beginning balances and recorded in negative numbers under the form of parentheses (...).

- Increase or decrease in inventories (Code 10)

This item is set up based on the total difference between the ending balance and the beginning balance of the inventory accounts (excluding the balance of the account "Provision against devaluation of goods in stock "on the basis of having excluded: Value of inventory used for investment for construction or inventory used in exchange for fixed assets, investment real property; trial production costs counted on the cost of fixed assets formed from construction. In case of any purchase inventory in period which is not identified use purposes (for trading or investment in construction), the value of inventories is included in this item.

In case enterprises separate the depreciation of fixed assets in inventory and the depreciation counted in the income statements in the period (item "Depreciation of fixed assets”- code 02 only includes the depreciation counted in the income statements in the period), this item does not include the depreciation of fixed assets in the value of inventories (undetermined to be consumed in period);

In case enterprises cannot separate the depreciation of fixed assets in inventory and the depreciation counted in the income statements in the period (item "Depreciation of fixed assets”- code 02 include the depreciation of fixed assets related to unconsumed inventories), this item does not include the depreciation of fixed assets in the value of inventories at the end of period (undetermined to be consumed in period);

Figures in this item are plus (+) the item "Operating profit before changes in working capital" if the total ending balances are less than the total beginning balances. Figures of this item are subtracted (-) from the item "Operating profit before changes in working capital" if the total ending balances are greater than the total beginning balances and recorded in negative numbers under the form of parentheses (...).

- Increase or decrease in amounts payable (Code 11)

This item is set up based on the total difference between the ending balance and the beginning balance of debts payable (details related to manufacturing, business), such as: Accounts 331, 333, 334, 335, 336, 337, 338, 344, 131 (details of prepaid amounts of the sellers)

This item does not include enterprise income tax (arising Credit 3334), loan interest payable (arising Credit  335, details of loan interest payable).

This item does not include amounts payable related to investment, such as amounts prepaid by purchasers related to the liquidation or sale of fixed assets, investment real property; Payables related to purchasing, construction of fixed assets, investment real property; Payables to buy the capital and debt instruments ..; and payables related to financial activities, such as: principal payables, bond principal, finance lease liabilities; Dividends, profits payable.

Figures in this item are plus (+) the item "Operating profit before changes in working capital" if the total ending balances are greater than the total opening balances. Figures of this item are subtracted (-) from figures of the item "Operating profit before changes in working capital" if the total ending balances are less than the total beginning balances and recorded in negative numbers under the form of parentheses (...).

- Increase or decrease in prepaid expenses (Code 12)

This item is set up based on the total difference between the ending balance and the beginning balance of Account 242 "prepaid expenses" in the reporting period on the basis of having excluded prepaid expenses related to cash flow from investment, such as: land rents qualified for being recorded as intangible assets and prepayments of interest capitalized.

Figures in this item are plus (+) the item "Operating profit before changes in working capital" if the total ending balances are less than the total opening balances. Figures of this item are subtracted (-) from figures of the item "Operating profit before changes in working capital" if the total ending balances are greater than the total beginning balances and recorded in negative numbers under the form of parentheses (...).

- Increase or decrease in trading securities (Code 13)

This item is set up based on the total difference between the ending balance and the beginning balance of Account 121 "trading securities" in the reporting period.

Figures in this item are plus (+) the item "Operating profit before changes in working capital" if the total ending balances are less than the total opening balances. Figures of this item are subtracted (-) from figures of the item "Operating profit before changes in working capital" if the total ending balances are greater than the total beginning balances and recorded in negative numbers under the form of parentheses (...).

- Interest paid (Code 14)

This item is set up based on the total amount of interest paid during the reporting period, including interest incurred in period and paid in current period, interest payable of previous period paid in current period, interest prepaid in current period.

This item does not include the amount of interest paid during the period capitalized into the value of assets in progress classified as cash flows from investment. In case the interest paid in the period has been capitalized and included in the financial cost, accountants shall base on interest capitalizing rate applied to the reporting period in accordance with the provisions of Accounting Standards “ Borrowing cost " to determine the interest payable of cash flows from trading and cash flows from investments.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 (details of loan interest payments); accounting books of accounts receivable (details of interest payments from sums received from receivables) in the reporting period, after comparing with the accounting books of Account 335, 635, 242 and other related accounts.

Figures in this item are subtracted (-) from the item "Operating profit before changes in working capital" and are written in negative numbers under the form of parentheses (...).

- Enterprise income tax paid ( Code 15)

This item is set up based on the total amount paid for enterprise income tax to the State during the reporting period, including the enterprise income tax paid in current period, enterprise income tax owed from previous period paid in current period and enterprise income tax prepaid (if any).

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 (detailing payments of enterprise income tax), after comparing with the accounting books of Account 3334. Figures of this item are subtracted (-) from the item "Operating profit before changes in working capital" and are written in negative numbers under the form of parentheses (...).

- Other receipts from trading ( Code 16)

This item records receipts arising from trading other than those stated in the Code from 01 to 14, such as: receipts from non-business, project funding (if any); Funds rewarded or supported by outside organizations and individuals recorded an increase in funds of enterprises; Sum received recorded an increase in funds paid by superior or subordinate units; Interest on deposits of price stabilization Fund (if it not recorded in revenue from financial activities but recorded an increase in Fund directly); Sum received from equitization in equitized enterprises... during the reporting period.

This item is set up based on the accounting books of Accounts 111, 112, 113 after comparing with accounts related in the reporting period. Figures in this item are plus (+) figures in item "Operating profit before changes in working capital".

- Other expenditures on trading ( Code 17)

This item records expenses arising from trading other than those stated in the Code from 01 to 14, such as: expenses from Bonus and bonus and welfare fund, science and technology development Fund; Direct expenses from non-business, project funding; Direct expenses from sums received from equitization paid to superiors, owners; Equitization expenses, subsidy to employees under policies ...

This item is set up based on the accounting books of Accounts 111, 112, 113 after comparing with accounts related in the reporting period. Figures in this item are subtracted (-) from figures in item "Operating profit before changes in working capital".

- Net cash flow from trading ( Code 20)

Item "Net cash flow from trading " records the difference between the total amount received and the total amount paid from trading during the reporting period. Figures recorded in this item are calculated on the total figures of items from Code 08 to Code 16. If the figures in this item are negative numbers, they shall be shown in parentheses (...).

Code 20 = Code 08 + Code 09 + Code 10 + Code 11 + Code 12 + Code 13 + Code 14 + Code 15 + Code 16 + Code 17

Making reports on items of cash flows from trading:

Principles of report:

- Cash flow from investment is prepared and presented in the Cash flow statement separately the cash inflows and cash outflows, except where cash flows are reported on a net basis mentioned in paragraph 18 of the Standard "Cash flow statement"

- Cash flows from investment are established under the direct or adjusted direct methods.

Under the direct method, the cash inflows and cash outflows from investment are determined by analyzing and summarizing directly sums received and paid according to each content of revenues and expenditures from accounting recordings of enterprises.

Under the adjusted direct method, cash inflows and outflows in the period are determined by the difference between the ending balances and opening balances of items in the balance sheet related, then adjusted for the effects of non-monetary items.

This Circular provides guidelines on establishment of cash flows from investment under the direct method. In case of establishing under the adjusted direct method, enterprises may apply the method of preparation of the consolidated cash flow statements prescribed in Circular No. 202/2014 / TT-BTC dated December 22, 2014 of the Ministry of Finance providing guidance on the preparation and presentation methods of consolidated financial statements and documents amending, supplementing or replacing.

b) Method of setting specific items under the direct method (See Form No. B03-DN)

- Expenditures for purchase, construction of fixed assets and other long-term assets (Code 21)

This item is set up based on the total amount actually spent on purchase, construction of tangible fixed assets, intangible fixed assets, amounts spent on the commence stage that has been capitalized as intangible fixed assets, amounts spent on investment, construction in progress, investment real property in the reporting period. Cost of trial production after offsetting with the amounts received from the sale of test products of fixed assets formed from construction activities added to this item (if expenditures are greater than revenues) or subtracted from this item (if revenues are greater than expenditures).

This item records the amount actually paid for the purchase of materials, properties, used for construction which have not delivered for use for capital investment until the end of the period; Amounts advanced for contractors of construction of which volume has not been accepted; Amounts paid to the seller in period related directly to purchase, investment of construction.

In case of buying raw materials, assets used for both purposes of production, trading and investment in construction of which value is not determined to be used for capital investment or production, trading at the end of period, the amount paid is not recorded in this item but in cash flows from trading . 

This item does not include amounts received from finance lease liabilities, the value of other non-monetary assets used for payment for the purchase of fixed assets, investment real property, construction or the value of fixed assets, investment real property, construction increased in the period but not yet paid in cash.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 (detailing amounts spent on purchase, construction of fixed assets and other long-term assets, including the interest paid capitalized ), accounting books of accounts receivable (detailing amounts received from debts transferred immediately to pay for purchase, construction), accounting books of Account 3411 (details of the loan paid immediately to the seller), accounting books of Account 331 (details of advances or payments to construction contractors, payments to the sellers of fixed assets, investment real property), after comparing with the accounting books of accounts 211, 213, 217, 241 during the reporting period . This item is written in negative numbers under the form of parentheses (...).

- Sums received from liquidation, sale of fixed assets and other long-term assets (Code 22)

This item is set up based on the net amount received from the liquidation or sale of tangible fixed assets, intangible fixed assets and investment real property in the reporting period, including the amount recovered of debts receivable related directly to the liquidation or sale of fixed assets and other long-term assets.

This item does not include receipts in non-monetary assets or amounts receivable which have not yet received in the reporting period from the liquidation, sale of fixed assets, investment real property and other long-term assets; Non-cash expenses related to the liquidation or sale of fixed assets, investment real property and the net book value of fixed assets, investment real property contributed in joint venture, association or losses.

Figures recorded in this item are the difference between amounts received and paid for liquidation, sale of fixed assets, investment real property and other long-term assets. Sum received from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of accounts 711, 5117, 131 (details of sum received from liquidation or sale of fixed assets, investment real property and other long-term assets) during the reporting period. The amount paid is from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of accounts 632, 811 (Details on liquidation or sale of fixed assets, investment real property) in the reporting period . This item is written in negative numbers under the form of parentheses (...) if the amount actually received is less than the amount actually paid.

- Expenditures on borrowing and purchase of debt instruments of other units (Code 23)

This item is set up based on the total amount deposited in banks with a term of more than 3 months, the amount paid for the other loans, the money paid by the buyer in the repurchase of government bonds and securities REPO, amount paid for purchase debt instruments of other units (bonds, commercial paper, preference shares classified as liabilities ...) for the purpose of investment held to maturity during the reporting period.

This item does not include amounts spent on purchase of debt instruments considered as cash equivalents and purchase of debt instruments held for trading purposes (profit from the difference in market prices); Loans, purchase of debt instruments paid by non-monetary assets or refinance.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of Account 128, 171 in the reporting period. This item is written in negative numbers under the form of parentheses (...).

- Amounts recovered on borrowing and repurchase of debt instruments of other units (Code 24)

This item is set up based on the total amount received from withdrawal of bank deposits of which term is more than 3 months, the money received from the buyer in the repurchase of government bonds and securities REPO, amounts recovered from principal lent, bond principal, preference shares classified as liabilities and debts instruments of other units during the reporting period.

This item does not include sums received from the sale of debt instruments considered cash equivalents and sale of debt instruments classified as trading securities; Sums recovered in non-monetary assets or transfer of debt instruments into equity instruments of other units.

Figures recorded in this item are from the accounting books of Accounts 111, 112 after comparing with the accounting books of accounts 711, 133, 141, 244 in the reporting period.

- Expenditures on investments in other units (Code 25)

This item is set up based on the total amount paid to invest in equity instruments of other units in the reporting period (including debt payments to buy capital instruments from the previous capital), including expenditures on capital investment under the form of common shares with voting right, buying preference shares classified as equity, contribution to the subsidiaries, joint ventures, associated companies, ...

This item does not include sums spent on buying shares held for trading purposes; sums paid to buy preference shares classified as liabilities, Investments in other units in non-monetary assets; investment under the form of issuing shares or bonds; Transfer of debt instruments into contributions or unpaid debts.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of Accounts 221, 222, 2281, 331 in the reporting period and are written in negative numbers under the form of parentheses (...).

- Sums recovered from capital investments in other units (Code 26)

This item is set up based on the total amount recovered by resale or liquidation of capitals invested in other units in the reporting period (including the sums receivable from sale of equity instruments in previous period) .

This item does not include sums received from the sale of shares held for business purposes; The value of the investment recovered by non-monetary assets, debt or equity instruments of other units; Or sums that have not been paid in cash.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 after comparing with the accounting books of accounts 221, 222, 2281, 131 in the reporting period .

- Sums received from loan interest, dividends and profits shared (Code 27)

This item is set up based on sums received from loan interest, deposit interest, bond interest, dividends and profits received from capital investments in other units in the reporting period. This item does not include the interest, dividends received by shares or by non-monetary assets.

Figures recorded in this item are from the accounting books of Accounts 111, 112, after comparing with the accounting book of Account 515 .

- Net cash flow from investment ( Code 30)

Item "Net cash flow from investment " records the difference between the total amount received and the total amount paid from investment during the reporting period. This item is calculated on the total figures of items from Code 21 to Code 27. If the figures in this item are negative numbers, they shall be shown in parentheses (...).

Code 30 = Code 21 + Code 22 + Code 23 + Code 24 + Code 25 + Code 26 + Code 27.

Making reports on items of cash flows from financial activities:

Principles of report:

- Cash flow from financial activities is prepared and presented in the Cash flow statement separately the cash inflows and cash outflows, except where cash flows are reported on a net basis mentioned in paragraph 18 of the Standard "Cash flow statement"

- Cash flows from financial activities are established under the direct or adjusted direct methods.

Under the direct method, the cash inflows and cash outflows from financial activities are determined by analyzing and summarizing directly sums received and paid according to each content of revenues and expenditures from accounting recordings of enterprises.

Under the adjusted direct method, cash inflows and outflows in the period are determined by the difference between the ending balances and opening balances of items in the balance sheet related, then adjusted for the effects of non-monetary items.

This Circular provides guidelines on establishment of cash flows from financial activities under the direct method. In case of establishing under the adjusted direct method, enterprises may apply the method of preparation of the consolidated cash flow statements prescribed in Circular No. 202/2014 / TT-BTC dated December 22, 2014 of the Ministry of Finance providing guidance on the preparation and presentation methods of consolidated financial statements and documents amending, supplementing or replacing.

b. Method of setting specific items under the direct method (See Form No. B03-DN)

- Sums received from issuance of shares and receipt from contributions of the owners (Code 31)

This item is set up based on the total amounts received from contributions of owners of enterprises during the reporting period. This item does not include loans and debt converted into capital, undistributed post-tax profits profit converted into contributions (including payment of dividends by shares) or receipts contribution of owners in non-monetary assets.

For joint stock companies, this item records the amount received from the issuance of common shares issued at issued actual prices, including sums received from the issuance of preference shares classified as equity and options of convertible bonds but excluding amounts received from issuing preference shares classified as liabilities.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 after comparation with the accounting book of account 411 in the reporting period .

- Repayment of contributions to owners, repurchase of stock issued (Code 32)

This item is set up based on the total amount paid due to refund of contributions to the owners of enterprises under the forms of cash repayment or repurchase of stocks of enterprises issued in cash to cancel or use as treasury shares during the reporting period.

This item does not include refund of preference shares classified as liabilities, owner’s contributions in non-monetary assets or contributions used for business offsetting.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of Account 411, 419 in the reporting period. This item is written in negative numbers under the form of parentheses (...).

- Sums received from borrowings (Code 33)

This item is set up based on the total amount received during the period because enterprises borrow from financial institutions and credit institutions and other objects in the reporting period, including loans under the form of common bond issuance or convertible bonds or preference shares which require the issuer to repurchase at a certain time in the future (classified as liabilities). This item also includes the amount received by sellers in repurchase of government bonds and other securities Repo transactions. This item does not include borrowings in non-monetary assets or financial lease liabilities.

In case of borrowing under the form of issuance common bonds, this item records the total amount received during the period (in face value of bonds adjusted for discounts, additional bonds or bond interest prepaid - if any);

In case of borrowing under the form of issuance of convertible bonds, this item records the amount corresponding to the principals of the convertible bonds;

In case of borrowing under the form of preference shares, this item records the total amount received during the period because enterprises issue preference shares classified as liabilities due to the conditions requiring issuers to repurchase shares at a certain time in the future.  In case of the provisions requiring issuers to only repurchase shares from holders at par value, this item only records the amount received at par value of preference shares (sums received higher than par value accounted share premium presented in item "Sums received from issuance of shares and receipts of contribution of owners" (No. 31));

In case of borrowing under the repurchase of government bonds, this item records the total amount received during the period in the seller in repurchase of government bonds and securities REPO.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, accounts payable ( details of loans received paid immediately for debts payable) after comparing with the accounting books of accounts 171, 3411, 3431, 3432, 41112 and other related accounts in the reporting period .

- Payment of loan principal (Code 34)

This item is set up based on the total amount paid for the loan principal, including payment of principal of common bonds, convertible bonds or preference shares with terms requiring issuers to repurchase at a certain time in the future (classified as liabilities) during the reporting period. This item also includes the amount paid to the seller by the buyer in the repurchase of government bonds and other securities Repo transactions.

This item does not include payments of loan principal in non-cash asset or transfer the debt to contribution.

Figures recorded in this item are from the accounting books of Accounts 111, 112, accounts receivable( sums paid for loan from sums received from receivable) after comparing with the accounting books of Account 171, 3411, 3431, 3432, 41112 in the reporting period . This item is written in negative numbers under the form of parentheses (...).

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of Account 171 in the reporting period. This item is written in negative numbers under the form of parentheses (...).

- Payments of finance lease principal (Code 35)

This item is set up based on the total amount paid on finance lease liabilities during the reporting period. This item does not include finance lease liabilities in non-monetary assets or transfer of finance lease liabilities into contribution.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 accounts receivable (details of sums paid for finance lease liabilities from sums received from receivables) after comparing with the accounting books of Account 3412 in the reporting period. This item is written in negative numbers under the form of parentheses (...).

- Dividends and interest paid to owners (Code 36)

This item is set up based on the total dividends and interest paid to owners of enterprises (including personal income tax paid on behalf of owners) in the reporting period.

This item does not include profits converted into contributions of the owners, payment dividends by shares or by non-monetary assets and profits used to set up funds.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of Account 421, 338 ( details of sums paid for dividends and profits) in the reporting period. This item is written in negative numbers under the form of parentheses (...).

- Net cash flow from financial activities ( Code 40)

Item "Net cash flow from financial activities " records the difference between the total amount received and the total amount paid from financial activities during the reporting period. This item is calculated on the total figures of items from Code 31 to Code 36. If the figures in this item are negative numbers, they shall be shown in parentheses (...). Code 40 = Code 31 + Code 32 + Code 33 + Code 34 + Code 35 + Code 36.

Summary of cash flows in the period (See Form No. B03-DN)

- Net cash flows in the period (Code 50)

Item "Net cash flows in the period" records the difference between the total amount received and the total amount paid in three types of activities: trading, investment and financial activities of enterprises in reporting period. Code 50 = Code 20 + Code 30 + Code 40. If figures in this item are negative numbers, they are shown in parentheses (...).

- Cash and cash equivalents at beginning of period (Code 60)

This item is set up based on the figures of item "Cash and cash equivalents" at the beginning of the reporting period (Code 110, column "The Beginning" n the Balance Sheet).

- Influence of exchange rate changes in foreign currency conversion (Code 61)

This item is set up based on the total exchange differences due to revaluation the ending balance of cash and cash equivalents in foreign currencies (Code 110 of the Balance Sheet) at the end of reporting period.

Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, 118 and related accounts (details of items satisfying the definitions of cash equivalents ), after comparing with the accounting books of Account 4131 in reporting period.  This item is recorded in positive numbers if there is gain on forex and in negative numbers under the form of parentheses (...) if there is loss on forex.

- Cash and cash equivalents at end of period (Code 70)

This item is set up based on the figures of item "Cash and cash equivalents" at the end reporting period (Code 110, column "The end" in the Balance Sheet).

This item is equal to the "Total" of the items Code 50, 60 and 61 and the item Code 110 in the Balance Sheet at that period. Code 70 = Code 50 + Code 60 + Code 61.

Article 115. Methods of preparing and presenting Notes to financial statements (Form B09 - DN)

1. Purposes of notes to financial statements:

a) The note to the financial statement is an inseparable part of the financial statement used to describe the narrative or analyze in detail of the information and figures presented in the balance Sheet, income statement, cash flows statement as well as other necessary information as required by the specific accounting standards by enterprises.

b) The note to the financial statement may also present other information if the enterprise deems it necessary to present honestly and reasonablely the financial statement.

2. Principles of preparation and presentation of the notes to financial statements

a) When preparing the annual financial statements, enterprises must make the notes to the financial statements in accordance with the provisions of Accounting Standards, "Presentation of financial statements" and guidance in this policy of financial statements.

b) When preparing the interim financial statements (including full form and short form), enterprises must make the notes to the selective financial statements in accordance with the provisions of the accounting standard, "Interim financial statement “and the Circular guiding the standards.

c) Notes to the financial statements of an enterprise must be presented the following contents:

- Information on the basis of preparation and presentation of financial statements and the specific accounting policies selected and applied to transactions and important events;

- Information under the provisions of the accounting standards that has not been presented in other financial statements (key information);

- Additional information that has not been presented in the financial statements, but is necessary for a true and fair presentation of the financial situation of the enterprises.

d) Notes to the financial statements must be presented in a systematic way. Enterprises shall actively sort in the order in the notes to financial statements in a manner that best suits their particular on the principle that each item in the balance sheet, income Statement and cash flow Statement should be marked to lead to relevant information in the notes to financial statements

3. Basis of preparation of Notes to financial Statements

- Based on the balance Sheet, income statements, cash flow statements of the reporting year;

- Based on the general accounting books; Books, detailed accounting cards or summary of the relevant details;

- Based on the Notes to the financial statements of previous year;

- Based on the actual situation of enterprises and the related documents.

4. Contents and methods of setting up items

Characteristics of operation of enterprises

In this part, enterprises clearly state:

a) Form of capital ownership: A state-owned companies, joint-stock company, limited liability companies, partnership or private enterprises. For foreign-invested enterprises: Names of nations and territories of each investor in enterprises (including investors with Vietnamese and foreign nationalities) and changes in structure of equity among investors (percentage of contribution) at the end of the fiscal year.

b)Trading: industrial manufacturing, trading, service, construction or summary of many trading fields.

c) Business lines: the main business activity (Contents describing the main business activities referenced under the provisions of system of economics of Vietnam) and the characteristics of products or services of enterprises.

d) Normal business and production cycle: If the cycle is longer than 12 months, notes to the average business and production cycle of branches, sectors are added.

e) Characteristics of operation of enterprises in the fiscal year that affect the financial statements: the events of legal environment, market happenings, characteristics of business, management, finance, the event of acquisition, division, change the size ... that affect the financial statements of enterprises.

e) Structure of enterprises

- List of subsidiaries: name, address, rate of voting rights, contribution ratio, the ratio of the parent company's interests in each of its subsidiary must be presented in detail;

- List of associated companies and joint ventures: name, address, rate of voting rights, contribution ratio, the interest ratio of enterprises in each associated company and joint venture must be presented in detail;

- List of subordinate units of dependent cost-accounting: name and address of each unit must be presented

Accounting period, currency used in accounting

a) Annual accounting period: the annual accounting period must be specified in the calendar year starting on January 01 / ...to December 31/ ... If enterprises have the financial year other than the calendar year, then starting date and ending date of the annual accounting period must be clearly stated.

b) Currency used in accounting: Vietnam Dong, or other currencies selected according to the provisions of the Law on Accounting must be specified.

Standards and applicable accounting policy

a) Applicable accounting policy: the accounting policy that enterprises are applying such as : enterprise accounting policy, peculiar enterprise accounting policy approved in writing by the Finance Ministry, construction enterprise accounting policy or accounting policy for small and medium enterprises must be specified.

b) Declaration of compliance with accounting standards and accounting policy: those financial statements have been prepared and presented in accordance with Accounting Standards and Accounting policy of Vietnam or not must be specified. The financial statements are considered to be prepared and presented in accordance with Accounting Standards and Accounting policy of  Vietnam if the financial statements comply with all provisions of each standard, circular guiding the implementation of current accounting standards and policy that enterprises are applying. If the accounting standards are not applied, it must be clearly stated.

The accounting policies applied when enterprises  meet the assumption of continuous operation

(1) The principle of converting financial statements prepared in foreign currencies into Vietnam Dong: The application of exchange rates in converting the financial statements complies with the guidelines of enterprise accounting policy or not (assets and liabilities at the exchange rate at the end of period, owner’s investments at the exchange rate at the date of contribution, income statements and cash flows statements in accordance with the actual exchange rate or the average exchange rate ).

(2).Types of foreign exchange rate applied in accounting

- The exchange rate selected by the bank to apply in accounting;

- The exchange rate applied to record and evaluate assets;

- The exchange rate applied to record and evaluate liabilities;

- The types of exchange rate applied in other transactions.

(3) The principles for determining the actual interest rate (also called the effective interest rate) used to discount cash flows for items are recorded at present value, allocated cost, recovery value ... (This note is just made when enterprises have applied interest rates to discount cash flows):

- Base of determination of the actual interest rate (the market interest rates or commercial bank interest rates or interest rates applied to loans of enterprises or other bases);

- Reasons for the selection of actual interest.

(4) Principles for recording cash and cash equivalents:

- Specification of bank deposits that are demand or term;

- Specification of monetary gold that includes types, are used as inventory or not;

- Specification of the base of determination of the cash equivalents? Consistence with the provisions of Accounting Standard "Cash flow statement" or not?

(5) Accounting Principles for financial investments

a) For trading securities:

- The time recorded (for listed securities, T + 0 or another time is clearly explained)

- The book value determined as the fair value or historical cost;

- Base of setting up provisions for devaluation.

b) For investments held to maturity:

- The book value determined as the fair value or historical cost;

- Base of determination unrecoverable losses;

- Revaluation amounts meeting the definition of accounts derived from foreign currencies or not?

c) For loans:

- The book value determined as the historical cost or allocated value;

- Revaluation amounts meeting the definition of accounts derived from foreign currencies or not?

- Base of making provisions for doubtful loans.

d) For investments in subsidiaries, associated companies and joint ventures:

- For the subsidiaries, joint ventures and associated companies purchased during the period, the time of initial recording, compliance with consolidated business accounting Standard for subsidiaries bought in the period or not? Compliance with accounting Standard in investments in associated companies and joint ventures or not?

- Principles for determining subsidiaries, associated companies and joint ventures (based on the proportion of the voting rights, the proportion of contributed capital or benefits);

- The book value of investments in subsidiaries determined at historical cost, fair value and other values? The book value of investments in joint ventures and associated companies determined at historical cost, equity method or other methods?

- Base of making the provision for investment losses in subsidiaries, associated companies and joint ventures; The financial statements to determine losses (consolidated financial statements and separate financial statements of subsidiaries, associated companies and joint ventures);

dd) For investments in capital instruments of other units:

- The book value of investments in other units determined at historical cost or other methods?

- Base of making the provision for investment losses in other units; The financial statements to determine losses (consolidated financial statements and separate financial statements of the invested units);

e) Accounting methods for other transactions relating to financial investments:

- Shares swaps ;

- Investment under the form of capital contribution;

- Transactions under the form of repurchase of contributed capital;

- Accounting method for dividends divided by shares;

(6) Accounting principles for debts receivable

- Criteria for the classification of debts receivable (receivables from customers, other receivables, internal receivables)

- Being monitored in detail under the original terms, the remaining term at the time of reporting, original currencies and each object or not?

- Revaluation of amounts meeting the definition of accounts derived from foreign currencies or not ? The exchange rates used to revalue?

- Recording debts receivable which do not exceed the recoverable value or not?

- Method of making the provision for bad debts.

(7) Principle for recording inventory

- (7) Principle for recording inventory: Specify inventory that is recorded at the historical cost or net realizable value.

- The method of calculating the value of inventory: Specify the method that enterprises apply (Weighted average; first in, first out, specification price or retail price).

- Method of inventory accounting: Specify that enterprises are applying perpetual inventory method and periodic inventory method.

- Methods for making provision against devaluation of goods in stock: Specify that enterprises make provision against devaluation of goods in stock on the basis of the positive difference of historical cost and net realizable value of inventories. The net realizable value of inventories is determined in accordance with the provisions of Accounting Standard "Inventories" or not? Method for making provision against devaluation of goods in stock is according to the difference between the provision that must be made in current year and the provision that have been made in previous year unused made additionally or refunded in current year.

(8)Principles of accounting and depreciation fixed assets, financial lease fixed assets, investment real property

a) Accounting principles of tangible fixed assets, intangible fixed assets:

- Specification of the book value of fixed assets which are at historical cost or revalued cost.

- Accounting principles of expenses incurred after the initial recording (cost of upgrading, improvement, maintenance, repair) recorded in the book value or the cost of production and business;

- Specification of methods of depreciation of fixed assets; Depreciation at historical cost or historical cost minuses recoverable value estimated from the liquidation or sale of fixed assets;

- Other provisions on the management, use, depreciation of fixed assets complied with or not?

b) Accounting principles of finance lease fixed assets:

- Specification of methods of determination the book value;

- Specification of method of depreciation of finance lease fixed assets.

c) Accounting principles for investment real property.

- The method of recording book value of investment real property

- Specification of methods of depreciation of investment real property.

(9) Accounting principles for Business Cooperation Contract (BCC)

a) For the capital contributors

- The recording capital (cash or non-cash assets) contributed to the BCC;

- The recording revenues and expenditures related to the contract

b) For capital recipients (executive party, incurring general expenses)

- Principles of recording capital contributed by other parties

- Principles of division of revenue, expenses and products of the contract.

(10) Accounting principles of deferred enterprise income tax

a) Accounting principles of deferred income tax assets

- Basis of recording the deferred income tax assets (deductible temporary differences, tax loss or unused tax incentives);

- Tax rate (%) used to determine the value of deferred income tax assets;

- Offsetting with deferred income tax or not?

- Determination of ability of taxable income in future when the deferred income tax assets are recorded, revaluation of deferred income tax assets unrecorded

b) Accounting principles of deferred enterprise income tax payable

- Basis of recording deferred income taxes payable (taxable temporary differences);

- Tax rate (%) used to determine the value of deferred income tax payable;

- Offsetting with deferred income tax assets or not?

(11) Accounting Principles for prepaid expenses

- Specification of prepaid costs allocated gradually into cost of production and business.

- Method and time of allocation of prepaid costs;

- Methods and time of allocation of goodwill arising in equitization;

- Monitoring in detail prepaid expenses by maturity or not?

(12) Accounting principles for liabilities

- Classification of liabilities

- Monitoring in detail under each object, original terms, the remaining term at the time of reporting, original currencies

- Revaluation of amounts meeting the definition of accounts derived from foreign currencies

- Recording liabilities which are not less than payment obligations

- Making provision for liabilities

(13) Principle for recording loans and finance lease liabilities

- Recording the value of loans and finance lease liabilities

- Monitoring each object, term, original currency

- Revaluation of loans and finance lease liabilities in foreign currencies? (14) Principle for recording and capitalizing borrowing costs:

- Principle for recording borrowing costs: Specification borrowing costs recorded in cost of production, sales in the period incurred, unless they are capitalized in accordance with the provisions of Accounting Standards "borrowing costs ".

- The capitalization rate used to determine the borrowing costs capitalized during the period: Specification of the capitalization rate (Capitalization rate is determined by the formula set out in the Circular providing guidance on Accounting Standard No. "Borrowing Costs".

(15) Principles of recording expenses payable: Specification of the expenses unpaid, but estimated to be recorded in the cost of production, sales in the period  and the basis for determining the value of such expenses.

(16) Principles and methods of recording provisions payable :

- Principles for recording provisions payable: Specification of provisions payable recorded satisfying or not the conditions prescribed in Accounting Standard "Provisions, assets and potential liabilities "

- Method of recording provisions payable: Specification of the provisions payable made more (or refunded) under the positive difference (or negative) between the provision payable that must be made in this year and the provision payable made in previous year unused in the accounting books.

(17) Principles for recording unearned revenues

- The basis of recording unearned revenue

- Allocation method of unearned revenue.

(18) Principle of recording convertible bonds

- Ability of recording separately debt component and capital component

- Trust of interest rate used to discount cash flows

(19) Principle for recording equity:

- Contributions from owners are recorded at capital actually contributed not; Method of recording the share premium, method of determining options of convertible bonds

- The reason for recording the differences upon asset revaluation and the exchange differences

- Method of determining undistributed profits, the principle of distribution of profits, dividends.

(20) The principle and method of recording revenues and other income:

- Revenues from goods and service provision: Compliance fully with the conditions of recording revenues specified in Accounting Standard "Revenue and other income", The methods used to record revenues.

- Revenues from construction contracts: Compliance with the Accounting Standard "construction contract", The methods used to record revenue of construction contracts).

- Methods of recording revenues from financial activities.

- Principles of recording other income

(21) Accounting principles of revenue deductions

- Inclusion of the revenue deductions

- Compliance with the accounting Standard "The events arising after the end of the annual accounting period" to adjust the revenue

(22) Accounting Principles for the cost price of goods sold

- Guarantee of conformity principle with revenues

- Guarantee of precautionary principle, recording immediately the costs that exceed the normal level of inventories

- Items recorded a decrease in cost price of goods sold

(23) Principle and method of recording financial costs: full recording or not the interest expense (including advanced amounts), loss on forex of the reporting period

(24) selling expense and enterprise administrative expense

- Full recording or not the selling expense and enterprise administrative expense incurred in period

- Adjustments in selling expense and enterprise administrative expense

(25) The principle and method of recording current enterprise income tax, deferred enterprise income tax expense: Current enterprise income tax expense is determined on the basis of taxable income and tax rate of enterprise income tax in the current year. Deferred enterprise income tax is determined on the basis of deductible temporary differences, taxable temporary differences and tax rate of enterprise income tax. Current enterprise income tax expense is not offset with deferred enterprise income tax expense.

(26) The principles and other accounting methods: Specification the principles and other accounting methods for the purpose of helping users understand the financial statements of the enterprise presented on the basis of compliance with the system of Vietnamese accounting standards issued by the Ministry of Finance.

The accounting policies applied in case enterprises do not meet the assumption of continuous operation

a) Policy on reclassification of long-term assets and liabilities into short-term ones

b) Principles of valuation

- Financial investments;

- Receivables;

- Payables;

- Inventories;

- Fixed assets, investment real property;

- Other assets and liabilities.

Additional information for the items shown in the Balance Sheet

- In this section, enterprises must present and analyze in detail the figures presented in the Balance Sheet to help users of financial statements understand better the contents of the assets, liabilities and equity.

- The unit of values ​​presented in the section "Additional information for the items shown in the Balance Sheet" is the unit used in the Balance Sheet. Figures recorded in the column "Beginning" are taken from the column "ending" in the notes to financial statements of previous year. Figures recorded in the column "ending" are set up on the basis of figures taken from:

The Balance sheet of current year;

The general accounting books;

Detailed accounting books and cards or summary of the relevant details.

- Enterprises actively number information presented in this section under the principle of conformity with leading numbers from the Balance Sheet and guarantee of easy reference and comparison among periods.

-  If the enterprise has applied retroactively changes in accounting policies or retroactive adjustment of important errors of the previous year, they must adjust comparative figures (figures in column "beginning") to ensure principles of comparing and explain this clearly. In case of any reasons which lead the figures in column "beginning" to inability to compare with figures in column "Ending", this must be indicated in the notes to financial statements.

- For the items required the notes under the fair value, if the fair value is not identifiable, the reasons must be specified.

Additional information for items presented in income statements.

- In this section, enterprises must present and analyze in detail the figures shown in income statements to help users of financial statements to better understand the content of the items of revenues and expenditures.

- The unit of values ​​presented in the section "Additional information for the items shown in the income statement " is the unit used in the income statement. Figures recorded in the column "Previous year" are taken from the notes to financial statements of previous year. Figures recorded in the column "Current year" are set up on the basis of figures taken from:

Income statement of current year;

The general accounting books;

Detailed accounting books and cards or summary of the relevant details.

- Enterprises actively number detailed information presented in this section under the principle of conformity with leading numbers from the income statement and guarantee of easy reference and comparison among periods.

- In case of any reason which leads to inability to compare the figures in column "Beginning" with the figures in column "Ending", this must be indicated in the notes to financial statements.

Additional information for the Cash flow statement

- In this section, enterprises must present and analyze the figures presented in the Cash flow statement in order to help users better understand the factors affecting cash flows during the period of the enterprises .

- In case in the period, enterprises purchase or liquidate investments in subsidiaries or other business units, the cash flows must be presented as separate items in the Cash flow statement. This section must provide detailed information relating to the purchase or liquidation of investments in subsidiaries or other business units.

- The unit of values ​​presented in the section "Additional information for the items shown in the cash flow statement " is the unit used in the cash flow statement. Figures recorded in the column "Previous year" are taken from the notes to financial statements of previous year. Figures recorded in the column "Current year" are set up on the basis of figures taken from:

Cash flow statement of current year

The general accounting books;

Detailed accounting books and cards or summary of the relevant details.

Other information

- In this section, enterprises must present other important information (if any) in addition to the information presented in the section above to provide information to describe in words or in figures under the provisions of the specific accounting Standards to help users understand the financial statements of the enterprises presented honestly and reasonably.

- When presenting information in this section, depending on the requirements and characteristics of information as prescribed from point 1 to point 7 of this section, enterprises can give detailed and suitable forms, and the necessary comparable information.

- In addition to the information presented under the provisions of section 4.1 to section 4.8, enterprises shall present additional information if they deems necessary for the users of financial statements of the enterprises.