Database, Procedure and Method of Preparing Financial Statements According to Circular No. 200/2014/TT-BTC

- Type A: Short-term assets: includes indicators reflecting cash and cash equivalents, short-term financial investments, receivables, inventories, and other short-term assets.

- Type B: Long-term assets: includes indicators reflecting long-term receivables, fixed assets, investment real estate, long-term financial receivables, and other long-term assets.

 In terms of economics: the data on the "Assets" side shows the assets and the structure of the types of assets of the enterprise currently available at the reporting period, at all stages of the business process. Therefore, it is possible to generally assess the production and business capacity and capital usage level of the unit.

 Legally: Assets are capital owned by the enterprise.

 Capital Sources : Reflects the capital sources that form the enterprise's existing assets at the time of reporting. The capital sources are divided into two types:

-Type A: Liabilities: represents the business's responsibility to creditors (creditors, lenders, the State, employees).

-Type B: Owner's equity: represents the enterprise's responsibility to the owner who has invested capital in the enterprise.

 In terms of economics: the data on the "Capital Sources" side shows the capital sources that the unit is using during the business period. The ratio and structure of each capital source reflects the financial situation of the enterprise.

 Legally: the data on the "Capital" side shows the legal responsibility of the enterprise towards the State, towards the Bank, towards superiors, towards customers and officers, employees of the unit regarding the assets in use.

Each type of financial statement is detailed into items, ensuring that the items provide necessary information for readers and analysts of the enterprise's financial statements.

Below is a sample Balance Sheet that has been supplemented and amended according to Circular 200/2014/TT-BTC (Form 1.1)

Table 1.1 Sample Balance Sheet (According to Circular No. 200/2014/TT-BTC).

Address:...................

Unit:...................

Form No. B 01 - DN

(Issued under Circular No. 200/2014/TT-BTC dated December 22, 2014 of the Minister of Finance)

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BALANCE SHEET

On the date ...... month ... year ....

Unit:.............

ASSET

Code	Theory bright	Number end of the year	Number beginning of the year
A	B	C	1	2
A - CURRENT ASSETS (100=110+120+130+140+150)	100
I. Cash and cash equivalents	110
1. Money	111
2. Cash equivalents	112
II. Short-term financial investments	120
1. Trading securities	121
2. Provision for decline in value of trading securities (*)	122		(…)	(...)
3. Held-to-maturity investment	123
III. Short-term receivables	130
1. Short-term receivables from customers	131
2. Short-term prepayment to seller	132
3. Short-term internal receivables	133
4. Receivable according to construction contract progress plan	134
5. Short-term loan receivable	135
6. Other short-term receivables	136
7. Provision for short-term doubtful receivables (*)	137
8. Assets missing pending disposal	139
IV. Inventory	140
1. Inventory	141
2. Provision for inventory price reduction (*)	149		(…)	(...)
V. Other current assets	150
1. Short-term prepaid expenses	151
2. Deductible VAT	152
3. Taxes and other amounts receivable from the state	153
4. Government bond repurchase transactions	154
5. Other short-term assets	155

B - LONG-TERM ASSETS

(200 = 210+220+230+240)

200
I. Long-term receivables	210
1. Long-term receivables from customers	211
2. Long-term prepayment to seller	212
3. Business capital in affiliated units	213
4. Long-term internal receivables	214
5. Long-term loan receivable	215
6. Other long-term receivables	216
7. Provision for long-term doubtful receivables (*)	219	(....)	(....)
II. Fixed assets	220
1. Tangible fixed assets	221
- Original price	222
- Accumulated depreciation value (*)	223	(....)	(....)
2.Fixed assets under financial lease	224
- Original price	225
- Accumulated depreciation value (*)	226	(....)	(....)
3. Intangible fixed assets	227
- Original price	228
- Accumulated depreciation value (*)	229	(....)	(....)
III. Investment real estate	230
1. Original price	231
2. Accumulated depreciation value (*)	232	(....)	(.....)
IV. Long-term unfinished assets	240
1. Long-term unfinished business production costs	241
2. Cost of unfinished basic construction	242
V. Long-term financial investment	250
1. Investment in subsidiaries	251
2. Investment in joint ventures and associates	252
3. Investing capital in other units	253
4. Long-term financial investment reserve (*)	254	(....)	(....)
5. Held-to-maturity investment	255
VI. Other long-term assets	260
1. Long-term prepaid expenses	261
2. Deferred income tax assets	262
3. Long-term equipment, supplies and spare parts	263
4. Other long-term assets	268
TOTAL ASSETS (270 = 100 + 200)	270

CAPITAL SOURCE


A - LIABILITIES PAYABLE	300
I. Short-term debt	310
1. Short-term payables to suppliers	311
2. Short-term prepayment by buyer	312
3. Taxes and payments to the State	313
4. Must pay employees	314
5. Short-term payable expenses	315
6. Short-term internal payables	316
7. Must be paid according to progress according to contract plan	317
8. Short-term unrealized revenue	318
9. Other short-term payables	319
10. Short-term loans and financial leases	320
11. Short-term payables provision	321
12. Bonus and welfare fund	322
13. Price stabilization fund	323
14. Government bond repurchase transactions	324
II. Long-term debt	330
1. Long-term payables to suppliers	331
2. Long-term prepayment by buyer	332
3. Long-term payable expenses	333
4. Internal payables on working capital	334
5. Long-term internal payables	335
6. Long-term unrealized revenue	336
7. Other long-term payables	337
8. Long-term loans and financial leases	338
9. Convertible bonds	339
10. Preferred stock	340
11. Deferred income tax payable	341
12. Long-term payables provision	342
13. Science and Technology Development Fund	343
B - OWNER'S EQUITY	400
I. Equity	410
1. Owner's equity	411
- Common shares with voting rights	411a
- Preferred stock	411b
2. Share capital surplus	412
3. Bond conversion option	413

4. Other owners' capital

414
5. Treasury stock (*)	415	(....)	(....)
6. Asset revaluation difference	416
7. Exchange rate difference	417
8. Development investment fund	418
9. Business arrangement support fund	419
10. Other equity funds	420
11. Undistributed profit after tax	421
- Undistributed profit accumulated to the end previous period	421a
- Undistributed profit after tax this period	421b
12. Investment capital for construction and development	422
II. Other funding sources and funds	430
1. Funding sources	431
2. Funding sources for fixed assets	432
TOTAL CAPITAL (440 = 300 + 400 )	440

Established, date ... month ... year ...

(Signature, full name)

The chartist

Chief Accountant

(Signature, full name)

Manager

(Signature, full name, seal)

1.2.2 Data base, procedures and methods for preparing financial statements according to Circular No. 200/2014/TT-BTC

1.2.2.1 Data base on the financial statements

- Detailed summary table

- General ledger

- Balance sheet of arising numbers

- Financial statements at the end of the previous fiscal year

1.2.2.2 Procedure for preparing financial statements

The process of preparing a Balance Sheet includes 6 basic steps:

- Step 1: Check the authenticity of economic transactions arising during the period.

- Step 2: Temporarily close the accounting books, compare data from related accounting books

- Step 3: Make the transfer entries and officially close the accounting books.

- Step 4: Create a balance sheet of arising numbers

- Step 5: Prepare the Balance Sheet

- Step 6: Check and sign for approval

1.2.2.3 Method of preparing financial statements

- Column "Indicators": to reflect the indicators on the financial statements

- Column "Code": to add when consolidating financial statements or consolidated financial statements.

- Column "Explanation": is the index number in the Explanation of the annual financial statements showing detailed data of these indexes in the financial statements.

- Column "Beginning of year number": based on data in column "End of year number" of the financial statement on December 31 of the previous year to record.

- Column "End of year balance": based on the end-of-period balance of the summary accounts and the detailed summary table in accordance with each indicator in the financial statement:

+ The Debit balance of the accounts is recorded in the corresponding indicators of the "Assets" section.

+ Credit balance of accounts is recorded in the corresponding indicators in the "Capital Source" section. Some special accounts need attention:

+ The reserve accounts and account 214 - Depreciation of fixed assets, although having a credit balance, are still recorded in the Assets section by negative recording.

+ Accounts 412 - Asset revaluation difference, Account 413 - Exchange rate difference and Account 421 - Undistributed profits, may have a balance on the Debit or Credit side, but are still recorded on the "Capital Source" side. If there is a Debit balance, record a negative balance, if there is a Credit balance, record it normally.

+ For dual-sex accounts, a detailed ledger must be opened. At the end of the period, a detailed summary table must be created, then the data on the summary table must be recorded in the financial statements. For example:

Detailed summary table of account 131 - "Receivables from customers"

 Debt Balance: recorded in the "Assets" side, "Customer Receivables" item

 Credit balance: recorded in the "Capital sources" side, "Prepayments from buyers" indicator. Detailed summary table of account 331 - "Payables to sellers"

 Debit Balance: recorded in the "Assets" side, item "Prepayments to Sellers"

 Credit Balance: record in the "Capital Sources" side, "Payables to Sellers" indicator. The specific way to create the above codes is as follows:

SECTION ASSETS a, SHORT-TERM ASSETS (Code 100)

Current assets reflect the total value of cash, cash equivalents and other short-term assets that can be converted into cash, sold or used within no more than 12 months or a normal business cycle of the enterprise at the time of reporting, 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 + Code140 + Code 150.

Cash and cash equivalents (Code 110).

Is a synthetic indicator reflecting the total amount of cash and cash equivalents currently available to the enterprise at the reporting time, including: Cash in funds, bank deposits (no term), cash in transit and cash equivalents of the enterprise.

Code 110 = Code 111 + Code 112.

* Money (Code 111)

- This indicator reflects the total amount of money available to the enterprise at the reporting time, including: Cash in the enterprise's fund, non-term bank deposits and money in transit.

- The data to be recorded in the "Cash" indicator is the total debit balance of Accounts 111 "Cash", 112 "Bank deposits" and 113 "Cash in transit".

* Cash equivalents (Code 112)

- This indicator reflects short-term investments with a recovery period of no more than 3 months from the investment date that can be easily converted into a certain amount of cash and are not subject to risk of conversion into cash at the reporting time.

- The data to be recorded in this indicator is mainly based on the detailed debit balance of account 1281 "Term deposits" (details of term deposits with original terms of no more than 3 months) and account 1288 "Other investments held to maturity" (details of amounts that meet the criteria for classification as cash equivalents).

- In addition, during the reporting process, if it is found that the amounts reflected in other accounts satisfy the definition of cash equivalents, the accountant is allowed to present them in this indicator. Cash equivalents may include: Bank bills, treasury bills, bank deposits with original terms of no more than 3 months...

- Amounts previously classified as cash equivalents but overdue and not yet recovered must be transferred to other indicators, in accordance with the content of each item.

- When analyzing financial indicators, in addition to the cash equivalents presented in this indicator, accountants can consider cash equivalents to include amounts with a remaining recovery period of less than 3 months from the reporting date (but with an original term of more than 3 months) that can be easily converted.

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