Provide consultation on financial statements

To help businesses that need to prepare financial statements to save time and effort, Siglaw would like to provide Consultation on financial statements.

What is a financial statement? Purpose of financial statements

According to Article 3(1) of Law on Accounting 2015, a financial statement is an economic and financial information system of an accounting unit presented according to the form specified in accounting standards and accounting regime.

Financial statements are applicable to all types of enterprises established and operating under Vietnamese law. Enterprises are obliged to prepare and submit truthful, accurate and timely financial statements according to the provisions of law on accounting and statistics.

In Article 97 of Circular 200/2014/TT-BTC, the purpose of financial statements is as follows:

• Firstly, financial statements are used to provide information about the financial position, business situation and cash flows of an enterprise, meeting the management requirements of business owners, State agencies and the useful needs of users in making economic decisions.

  Financial statements must provide an enterprise's information about: Assets; Liabilities must pay; Equity; Revenue, other income, production and business expenses and other expenses; Profit, loss and distribution of business results; Cash flows.

• Secondly, in addition to this information, the enterprise must also provide other information in the "Notes to the Financial Statements" to further explain the items reflected in the consolidated financial statements and the accounting policies used to recognize arising economic transactions, prepare and present financial statements.

Types of financial statements in business

According to the provisions of Law on Accounting 2015, the following types of financial statements are available:

First, annual financial statements

Every year, enterprises must prepare financial statements according to the specific form prescribed in the law and must prepare them in full form. Annual administrative reports include: Balance sheet; Report on business results; Statements of cash flows; Financial statement notes.

The annual financial statements can be calculated according to the calendar year or the annual accounting period of 12 full months after notification to the tax authorities. Enterprises are allowed to change the annual accounting period; however, when changing enterprises, they need to prepare separate financial statements for the period between the two accounting periods of the old fiscal year and the new financial year.

Second, the interim financial statements

Interim financial statements are understood as financial statements for four quarters of a fiscal year (where the fourth quarter is the last quarter of the year) and semi-annual financial statements. The interim financial statements are prepared according to specific forms prescribed by law, which can be prepared in full or summary form. Especially for state-owned enterprises and listed companies, it is mandatory to prepare interim financial statements. For other types of enterprises, it is encouraged but not required to prepare interim financial statements.

In addition, the financial statements may be prepared and presented on a consolidated or non-consolidated basis.

Why do agencies, organizations and enterprises need financial statements?

According to the Law on accounting, the preparation of financial statements is one of the obligations of agencies, organizations and enterprises.

Violations of financial reporting obligations may be administratively sanctioned according to the provisions of Decree 141/2018/ND-CP.

For one of the acts of preparing financial statements with incomplete contents or incorrect forms as prescribed; Financial statements without signatures of the preparer, chief accountant, in charge of accounting or the legal representative of the accounting unit may be fined from 5,000,000 VND to 10,000,000 VND.

For one of the acts of making incomplete financial statements as prescribed; apply a different form of financial statements as prescribed by accounting standards and regimes, unless approved by the Ministry of Finance, with a fine ranging from VND 10,000,000 to VND 20,000,000.

Secondly, sanctioning violations of regulations on submission and disclosure of financial statements:

For one of the acts of submitting financial statements to competent state agencies less than 03 months later than the prescribed time limit; Disclosure of financial statements that are less than 3 months behind the prescribed time limit may result in a fine ranging from VND 5,000,000 to VND 10,000,000.

For one of the acts of disclosing untruthful financial statements; providing or disclosing financial statements for use in Vietnam with inconsistent data in an accounting period may result in a fine ranging from VND 20,000,000 to VND 30,000,000.

Legal basis

Decree 141/2018/ND-CP dated March 12, 2018 of the Government providing for penalties for administrative violations in the field of independent accounting and auditing.

Therefore, we can see the importance of financial statements. With the desire to accompany clients, help clients save time and effort, Siglaw with our dedication and enthusiasm would like to send to clients consultation on financial statements:

Consultation on service on financial statements that Siglaw provides:

"Satisfaction of clients is Siglaw's measure of success. With us, every client is a brand ambassador!"

Therefore, Siglaw takes care of each client in the most thoughtful way, when using Consultation on financial statements of Siglaw Firm, clients will receive most enthusiastic support as follows:

1. Provide consultation and interpretation of legal issues directly related to financial statements.

2. Provide consultation on necessary documents and records related to financial statement activities, notarization, legalization of documents (if necessary).

3. Provide consultation on financial statements and submit them to competent authorities.

4. Provide consultation on monitoring the progress of processing dossiers, supplement and adjust dossiers if required by competent agencies.

Service quality standards:

At Siglaw, with the slogan "Confidential - Responsible - Professional - Prestigious", we establish "Standards for providing services to customers" and all Siglaw's lawyers and experts always perform at the highest level:

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