15-06 issuance of the business accounting system.english

MINISTRY OF FINANCE

No:15/2006/QD-BTC

SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom - Happiness

Hanoi, 20 March 2006

DECISIONon issuance of the business accounting system

MINISTER OF FINANCE

- Pursuant to the Law on Accounting No. 03/2003/QH11 dated 17 June 2003 and Government Decree No.129/2004/ND-CP dated 31 May 2004, making detailed regulations and providing guidelines for implementation of a number of Articles of the Law on Accounting in business activities;

- Pursuant to Government Decree No.77/2003/ND-CP dated 1 July 2003, stipulating functions, duties, powers and organisational structure of the Ministry of Finance;

Following the proposal by the Director of the Accounting System and Auditing Department and the Office Manager of the Ministry of Finance,

DECIDES:

Article 1: To issue “the business accounting system” applicable to all enterprises in all fields and all economic sectors throughout the country. The business accounting system shall include four parts:

Part I: Bookkeeping Account System ;Part II: Financial Statement System ; Part III: System of Accounting Documents;Part IV: Syustem of accounting Books.

Article 2: Enterprises, companies and corporations shall, based on “the business accounting system”, carry out research, concretize and formulate the accounting system and specific regulations on its contents, and the method of application of such accounting system, which are appropriate to business chracteristics and management requirements in each industry, each operational field and each economic sector. Where there is an amendment or addition to class-1 or class-2 accounts or an amendment to financial statements, a written agreement by the Ministry of Finance must be obtained.

Within the scope regulated in the business accounting system and in implementing documents issued by superior administration bodies, enterprises shall study and apply the list of accounts, source documents and accounting books, and select the form of accounting appriopriate to their business and production characteristics, management requirements and accouting work.

Article 3: This Decision shall have full force and effectafter 15 days fronm the date on which it is published in the official gazette. In particular, the regulations on “preparation of mid-year

consolidated financial statements” in point 4, and “responsibility for preparation and presentation of financial statements” in Section A.I, Part II sghall be implemented as from 2008.

This Decision shall replace Decision No.1141 TC/QD/CDKT dated 1 November 1995 of the Minister of Finance, issuing “the business accounting system”; Decision No.167/2000/QD-BTC dated 25 October 2000 of the Minister of Finance, issuing “the regime of business financial statements”, Circular No.10 TC/CDKT dated 20 march 1997, providing “guidelines on amendment and addition to the business accouting system”; Circular No.33/1998/TT-BTC dated 17 March 1998, providing “guidelines on accouting for, appropriating and using provisions for reduction in prices of inventory, for bad debts and for recduction in prices of securities at State enterprises”; Circular No.77/1998/TT-BTC dated 6 June 1998, providing “guidelines on exchange rates for conversion of foreign currencies into Vietnamese dong, used for accounting treatment by enterprises”; Circular No.100/1998/TT-BTC dated 15 July 1998, providing “guidelines on accounting for VAT and Business Income Tax (BIT)”; Circular No.180/1998/TT-BTC dated 26 December 1998, providing “additional guidelines on accounting for VAT”; Circular No.186/1998/TT-BTC dated 28 December 1998, providing “guidelines on accounting for export-import duties and special sales tax”; Circular No.107/1999/TT-BTC dated 1 September 1999, providing “guidelines on accounting for VAT on finance lease activities”; Circular No.120/1999/TT-BTC dated 7 October 1999, providing “guidelines on amendment and addition to the business accounting system”; Circular No.54/2000/TT-BTC dated 7 June 2000, providing “guidelines on accounting for business establishments’ goods sold by their affiliated units located in other provinces and cities and practicing dependent cost accounting, and by their agents for commission”.

Article 4: The contents specified in Decisions issuing accounting standards and in Circulars providing guidelines on application of accounting standards issued from stage 1 to stage 5, which are not contrary to those specified in this Decision, shall still be valid.

Article 5: The ministries, ministerial equivalent bodies, people’s committees of provinces and cities under central authotrity shall be responsible for instructing units under their administration to apply “the business accounting system” issued together with this Decision.

Article 6: The Director of the Accounting System and Auditing Department, the Ministry of Finance’s Office Manager, the Director of the Corporate Finance Department, the General Director of Taxation, and heads of relevant units under the Ministry of Finance shall be responsible for guiding and examining the implementation of this Decision.

Recipients: - Thủ tướng, các Phó Thủ tướng Chính phủ (để báo cáo); - Văn phòng Chính phủ;

FOR MINISTER DEPUTY MINISTER

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- Văn phòng Quốc hội; - Văn phòng Chủ tịch nước;- Văn phòng TW Đảng;- Các Bộ, cơ quan ngang Bộ cơ quan thuộc Chính phủ;- Toà án nhân dân tối cao;- Viện kiểm sát nhân dân tối cao;- UBND, Sở Tài chính, Cục thuế các tỉnh, TP trực thuộc TW;- Cục kiểm tra văn bản (Bộ Tư pháp);- Hội Kế toán và Kiểm toán Việt Nam; - Hội Kiểm toán viên hành nghề Việt Nam;- Các Công ty kế toán, kiểm toán;- Công báo;- Các đơn vị thuộc Bộ Tài chính;- Vụ Pháp chế (Bộ Tài chính);- Lưu VT (2 bản), Vụ CĐKT &KT.

(signed) Tran Van Ta

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PART IBOOKKEEPING ACCOUNT SYSTEM

I- GENERAL PROVISIONS

1- Bookkeeping accounts are used to classify and systematize economic and financial transactions according to their economic targets.

The business bookkeeping account system includes class-1 accounts, class-2 accounts, balance shhet accounts and off balance sheet accounts in accordance with the provisions in this Decision.

2- Enterprises, companies and corporations shall, based on the bookkeeping account system, carry out research on and make use of a detailed bookkeeping account system which is appropriate to their business and production chracteristics and management requiremnets, but such a detailed bookkeeping account system must conform to the content and structure of, and the accounting methods in, corresponding general bookkeeping accounts.

3- Where enterprises, companies or corporations need to add class-1 or class-2 accounts or amend class-1 or class-2 accounts in relation to name, sign and contents of, or methods of accounting for particular economic transactions, they must obtain a written approval from the Ministry of Finance before making such an addition or amendment.

4- Enterprises, companies or corporations may further set up class-2 or class-3 accounts for the accounts whose class-2 or class-3 acount is not stated in the list of business bookkeeping account system issued together with this Decision in order to serve their management requirements, and they shall not be required to obtain an approval from the Ministry of Finance.

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II- LIST OF BUSINESS BOOKKEEPING ACCOUNT SYSTEM

No Serial Account Number

Class 1

Class 2

NAME OF ACCOUNT REMARK

1 2 3 4 5

TYPE OF ACCOUNT 1SHORT-TERM ASSETS

01 111 Cash1111 Vietnamese currency1112 Foreign currency 1113 Gold, silver, precious metals, gemstones

02 112 Deposits Detailing each bank

1121 Vietnamese currency 1122 Foreign currency 1123 Gold, silver, precious metals, gemstones

03 113 Cash in transit 1131 Vietnamese currency1132 Foreign currency

04 121 In vestment in short-term securities 1211 Bonds1212 Ordinary bonds, treasury bonds, term bonds

05 128 Other short-term investments 1281 Term deposits1288 Other short-term investments

06 129 Provisions for reduction in prices of short-term investments

07 131 Accounts receivable from customers Detailing each entity

08 133 Deductible VAT 1331 Deductible VAT on goods or services 1332 Deductible VAT on fixed assets

09 136 Internal receivables1361 Business capital at affiliated units 1368 Other internal receivables

10 138 Other receivables 1381 Insufficient assets awaiting handling

1 2 3 4 51385 Receivables from equitisation 1388 Other receivables

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11 139 Provisions for bad debts12 141 Advances Detailing each

entity

13 142 Short-term prepaid expenses 14 144 Short-term mortgages, deposits or collateral15 151 Purchases in transit 16 152 Raw materials, materials Detailing by

management requirements

17 153 Tools, instruments 18 154 Expenses of work in progress 19 155 Finished products 20 156 Goods

1561 Purchase prices of goods 1562 Costs of purchases 1567 Property

21 157 Goods on consignment 22 158 Goods in bobded warehouse Exporter or importer

permitted to esatblish bonded warehouse

23 159 Provisions for reduction in prices of inventory 24 161 Adminmistrative payments

1611 Administrative payments in previous year1612 Administrative payments in this year

TYPE OF ACCOUNT 2 LONG-TERM ASSETS

25 211 Tangible fixed assets 2111 Buildings, architectural structures2112 Machinery or equipment 2113 Means of transport or transmission2114 Equipment or devices used for management 2115 Perennial plants, animals working and giving products2118 Other fixed assets

26 212 Fixed assets under a finance leace 27 213 Intangible fixed assets

2131 Land use right 2132 Distribution right 2133 Copyright, patent 2134 Trademarks of goods 2135 Computer software2136 Licence and franchising licence 2138 Other intangible fixed assets

28 214 Wear and tear of fixed assets 2141 Wear and tear of tangible fixed assets 2142 Wear and tear of financially-leased fixed assets

1 2 3 4 52143 Wear and tear of intangible fixed assets 2147 Wear and tear of invested property

29 217 Invested property30 221 Investment in subsidiaries31 222 Capital contribution to a joint venture enterprise32 223 Investment in an associated company

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33 228 Other long-term investments 2281 Shares22822288

Bonds Other long-term investments

34 229 Provisions for reduction in long-term investments 35 241 Capital construction in progress

2411 Procurement of fixed assets 2412 Capital construction 2413 Major repair to fixed assets

36 242 Long-term prepaid expenses 37 243 Assets on which income tax is postponed 38 244 Long-term deposit or collateral

TYPE OF ACCOUNT 3 ACCOUNTS PAYABLE

39 311 Short-term loan40 315 Long-term debt falling due 41 331 Accounts payable to sellers Detailing each

entity 42 333 Taxes and charges payable to the State

3331 VAT payable 33311 Output VAT 33312 VAT on imports 3332 Special Sales Tax 3333 Export/Import Duties 3334 Business Income Tax (BIT) 3335 Personal Income Tax (PIT) 3336 Natural resources tax 3337 Housing and land tax, land rental 33383339

Oother types of tax Fess, charges and other items of payment

43 334 Payables to employees 3341 Payables to government officials and employees 3348 Payables to other employees

44 335 Expenses payable 45 336 Internal payables46 337 Payments for completed work under a construction

contract Construction company makes payments for completed work

47 338 Other payables 3381 Suplus assets awaiting handling 3382 Labour union budget

1 2 3 4 53383 Social insurance 3384 Medical insurance 3385 Payables for equitisation 3386 Receipt of short-term deposit or collateral 3387 Unrealized revenue 3388 Other payables

48 341 Long-term loan 4950

342343

Long-term debtsIssued bonds

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343134323433

Par value of bonds Discount on bonds Excesses over bonds

51 344 Rceipt of long-term deposit or collateral 52 347 Postponed income tax payable 53 351 Contingency fund for loss-of-employment

allowances 54 352 Provisions that must be returned

LOẠI TK 4OWNERS’ EQUITY

55 411 Source of business capital 4111 Owners’ investment capital 4112 Surplus of shareholders’ equity Shareholding

company 4118 Other capital

56 412 Difference in property revaluation57 413 Foreign exchange differences

4131 Difference in revaluation of foreign exchange gains or losses at the closing of a financial year

4132 Foreign exchnage differences in the stage of investment in capital construction

58 414 Development investment fund 59 415 Financial contingency fund 60 418 Other funds founded from owners’ equity 61 419 Fund’s shares Shareholding

company 62 421 Undistributed profits

4211 Undistributed profit in the previous year 4212 Undistributed profit in this year

63 431 Reward or welfare fund 4311 Reward fund 4312 Welfare fund 4313 Welfare fund forming fixed asset

64 441 Source of capital invested in capital construction Applicable to State enterprises

65 461 Source of administrative budget Used for

4611 Source of administrative budget in the previous year companies or corporations

4612 Source of administrative budget in this year with source of busget

66 466 Source of budget forming fixed asset

1 2 3 4 5

TYPE OF ACCOUNT 5 REVENUE

67 511 Revenue from sale of goods and provision of services

5111 Revenue from sale of goods 5112 Revenue from sale of finished products Detailing by

5113 Revenue from provision of services management

5114 Revenue from allowances or price subsidies requirements

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5117 Revenue from trade in invested property 68 512 Revenue from internal sales Applicable to

5121 Revenue from sale of goods Internal sales

5122 Revenue from sale of finished products 5123 Revenue from provision of services

69 515 Revenue from financial operations 70 521 Trade discount 71 531 Returned sales 72 532 Reduction in prices of goods sold

TYPE OF ACCOUNT 6 PRODUCTION OR BUSINESS COSTS

73 611 Purchase of goods Application of

6111 Purchase of raw materials or materials the method of

6112 Purchase of goods periodical inventory

74 621 Costs of raw materials or materials directly used 75 622 Costs of direct employees 76 623 Costs for use of construction machinery Applicable to

6231 Costs of employees construction company

6232 Costs of materials 6233 Costs of production instruments 6234 Cost of amortization of construction machinery 6237 Costs of hired services 6238 Other costs in cash

77 627 General production costs 6271 Costs of workshops’ employees 6272 Costs of materials 6273 Costs of production instruments 6274 Costs of amortization of fixed assets 6277 Cost of hired services 6278 Other costs in cash

78 631 Cost of production Method of periodical inventory

79 632 Historical cost of goods sold 80 635 Financial costs 81 641 Costs of sale

6411 Costs of employees 6412 Costs of materials or packing

1 2 3 4 56413 Costs of instruments or appliances 6414 Costs of amortization of fixed assets 6415 Costs of warranty 6417 Costs of hired services 6418 Other costs in cash

82 642 Costs of business management 6421 Costs of managers 6422 Costs of managed materials 6423 Costs of stationery 6424 Costs of amortization of fixed assets 6425 Taxes, fees and charges

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6426 Provisions 6427 Costs of hired services 6428 Other costs in cash

TYPE OF ACCOUNT 7 OTHER INCOMES

83 711 Other incomes Detailing by

operations

TYPE OF ACCOUNT 8OTHER COSTS

84 811 Other costs Detailing by

operations

85 821 BIT costs 8211 Current BIT costs 8212 Postponed BIT costs

TYPE OF ACCOUNT 9DETERMINATION OF BUSINESS RESULTS

86 911 Determination of business results

TYPE OF ACCOUNT 0 OFF BALANCE SHEET ACCOUNTS

001 Hired assets

002 Materials or goods held on behalf of other entities, or received for processing

Detailing by

management

requirements

003 Goods received for sale on behalf of other entities, or taken as goods on consignment or mortgages

004 Bad debts written off

007 Foreig currencies

008 Estimate for administrative or project costs

PART II FINANCIAL STATEMENT SYSTEM

I/ GENERAL PROVISIONS

A. Annual and mid-year financial statements

1. Purposes of financial statements

Financial statements are used for the objective of providing information about the financial position, performance and cash flows of an enterprise, which meets management requirements of the enterprise’s owner and State bodies, and is useful to a wide range of users in making economic decisions. The financial statements must provide information about an enterprise’s:

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a/ assets;b/ liabilities and owners’ equity;c/ revenue, other income, operating expenses and other costs; d/ gains and losses, and distribution of operating results;

đ/ Taxes and charges payable to the State; e/ Other assets relating to the enterprise; g/ Cash flows.

Apart from the above information, an enterprise shall still be required to include other information in the “notes to the financial statements” in order to give further explanation of the items shown on its general financial statements and the accounting policies that it has applied to recognise the economic transactions, and prepare and present the financial statements.

2- Objects of application

The annual financial statement system shall be applied to enterprises of all types in all industries and economic sectors. In particular, medium and small businersses shall still be required to comply with general provisions in this Part and specific provisions appropriate to medium and small businesses, specified in the accounting system for medium and small businesses.

The preparation and presentation of financial statements by banks or similar financial organisations are additionally stipulated in the Accounting Standard No.22 “Additional representation of financial statements by banks and similar financial organisations” and in specific documents.

The preparation and presentation of financial statements by enterprises in a particular branch shall comply with the provisions specified in the accounting system issued by the Ministry of Finance, or by the branch with the Ministry of Finance’s approval.

A parent company or group that prepares its consolidated financial statements must comply with the provisions in the Accounting Standard “Consolidated financial statements and accounting for investments in subsidiary companies”.

A company with its affiliated accounting units or a State corporation operating in the form of having no subsidiary companies must prepare its consolidated financial statements in accordance with the provisions in Circular providing guidelines for applying the Accounting Standard No.25 “Consolidated financial statements and accounting for investments in susidiary companies”.

The mid-year financial statement system (quarterly financial statements) shall be applied to State enterprises, listed enterprises and other enterprises which voluntarily prepare their mid-year financial statements.

3- The business financial statement system

The financial statement system shall include annual financial statements and mid-year financial statements.

3.1. Annual financial statements

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The annual financial statements shall include:

- Balance sheet Form No. B 01 - DN

- Income statement Form No. B 02 - DN

- Cash flow statement Form No. B 03 - DN

- Notes to financial statements Form No. B 09 - DN

3.2. Mid-year Financial Statements

The mid-year financial statements shall include the mid-year financial statements in full form and in summary form.

(1) The mid-year financial statements in full form shall include:

- Mid-year balance sheet (in full form): Form No. B 01a – DN;

- Mid-year income statement (in full fiorm): Form No. B 02a –

DN;- Mid-year cash flow statement (in full form): Form No. B 03a –

DN;- Selective notes to the financial statements: Form No. B 09a –

DN.

(2) The mid-year financial statements in summary form shall include:

- Mid-year balance sheet (in summary form): Form No. B 01b – DN;

- Mid-year income statement (in summary form): Form No. B 02b –

DN;- Mid-year cash flow statement (in summary form): Form No. B 03b –

DN; - Selective notes to the financial statements: Form No. B 09a –

DN.

4- Responsibilities for preparation and presentation of financial statements

(1) All enterprises in all industries and economic sectors shall be required to prepare and present their annual financial statements.

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Companies and corporations with affiliated accounting units shall, apart from preparation of their annual financial statements, be required to prepare their general financial statements or consolidated financial statements at the closing of the accounting period, based on financial statements of their affiliated accounting units.

(2) State enterprises or listed enterprises shall still be required to prepare their mid-year finacial statements in full form.

Other enterprises which voluntarily prepare their mid-year finacial statements shall be permitted to select the full form or the summary form.

State corporations and State enterprises with affiliated accounting units shall still be required to prepare their mid-year general financial statements or consolidated financial statements (*).

(3) Parent companies and groups shall be required to prepare their mid-year consolidated financial statements (*) and their consolidated financial statements at the closing of the accounting year in accordance with the provisions in Government Decree No.129/2004/NĐ-CP dated 31 May 2004. In addition, they shall still be required to prepare consolidated financial statements after they have consolidated their business as regulated in the Accounting Standard No.11 “Business consolidation”.

((*) The preparation of mid-year consolidated financial statements shall be made as from 2008)

5- Requirements for preparation and presentation of financial statements

The preparation and presentation of financial satements must comply with the requirements specified in the Accounting Standard No.21 – Presentation of financial statements. A fair presentation of financial statements requires:

- presenting information in a true and fair manner;

- selecting and applying accounting policies in accordance with the provisions of each Accounting Standard in order to ensure that the financial statements provide information that is relevant to the decision-making needs of users and reliable. To achieve a fair presentation, financial statements must:

+ represent fairly the results and financial position of the enterprise;

+ reflect the economic substance of events and transactions and not merely the legal form;

+ be neutral, that is free from bias;

+ be prudent;

+ be complete in all material respects.

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The presentation of financial statements must be based on data existing after the accounting books are closed. Financial statements must consist of full items, be prepared methodically and presented consistently between accounting periods. Financial statements must be signed by the person preparing them, the chief accountant and the legal representative of the enterprise, and stamped with the enterprise’s seal.

6- Principles of preparation and presentation of financial statements

The preparation and presentation of financial statements must comply with six (06) principles stipulated in the Accounting Standard No.21 – “Presenatation of financial statements”: going concerns, accrual basis of accounting, consistency of presentation, materiality and aggregation, offsetting and comparative information.

Notes to the financial statements must be based on requirements for presenting information as stipulated in Accounting Standards. Material information must be explained to help readers understand properly the finacial position of the enterprise.

7- Periods for preparation of financial statements

7.1 Period for preparation of annual financial statements

Enterprises are required to prepare financial statements for the accounting year which is the calendar year or an accounting year with 12 full months after they notify such a year to the tax body. In the special case, enterprises are permitted to change the closing date of an accounting year, as a result, financial statements prepared for the first accounting year or the last accounting year may be shorter or longer than 12 monts, but shall not be permitted to exceed 15 months.

7.2 Period for preparation of mid-year financial statements

The period for preparation of mid-year financial statements shall be each quarter of the financial year (not including Quarter IV).

7.3 Other periods for preparation of financial statements

Enterprises may prepare their financial statements for other accounting periods (such as week, month, 6 months, 9 months,...) as required by law, by the parent company or the owner.

An enterprise which is subject to a division, demerger, consolidation, meger, conversion of ownership form, dissolution, termination of operation or bankruptcy must prepare financial statements at the time when such an event occurs.

8. Time limit for submission of financial statements 8.1. With respect to State enterprises

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a) Time limit for submission of quarterly financial statements:

- An enterprise shall be required to submit its quarterly financial statements no later than 20 days from the date of closing the quarterly accounting period; with respect to a State corporation, the above time limit shall be no later than 45 days;

- An affiliated accounting unit of a State corporation shall submit its quarterly financial statements to the corporation within the time limit regulated by the corporation.

b) Time limit for submission of the annual financial statements:

- An enterprise shall be required to submit its annual financial statements no later than 30 days from the date of closing the accounting year; with respect to a State corporation, the above time limit shall be no later than 90 days;

- An affiliated accounting unit of a State corporation shall submit its annual financial statements to the corporation within the time limit regulated by the corporation.

8.2. With respect to other enterprises

a) An accounting unit being a private enterprise or a partnership firm must submit its annual financial statements no later than 30 days from the date of closing the accounting year; with respect to other accounting units , the above time limit shall be no later than 90 days;

b) An affiliated accounting unit shall submit its annual financial statements to its superior accounting unit within the time limit regulated by the superior accounting unit.

9. Place where financial statements are received

Place where financial statements are received TYPES OF ENTERPRISE

(4)Periods for preparation of financial statements

Financial body

Tax body(2)

Statistical body

Superior enterprise

(3)

Business registration

body

1. State enterprises Quarter, Year

x(1)

x x x x

2. Enterprises with foreign invested capital

Year x x x x x

3. Other types of

enterprise

Year x x x x

(1) State enterprises located in a province or city under central authority shall be required to prepare and submit their financial statements to the Finance Department of such province of city. Central State enterprises shall also submit their financial statements to the Ministry of Finance (the Business Finance Department).

- State enterprises such as commercial banks, lottery companies, credit institutions, insurance companies, securities trading companies must submit their financial statements to

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the Ministry of Finance (the Banking Finance Department). In particular, Securities Trading Companies shall also submit their financial statements to the State Securities Commission.

(2) Enterprises shall be required to submit their financial statements to local tax bodies directly managing them. State corporations shall also submit their financial statements to the Ministry of Finance (the General Department of Taxation).

(3) State enterprises which have the superior accounting unit must submit their financial statements to such a superior accounting unit. Other enterprises which have the superior accounting unit must submit their financial statements to such a superior accounting unit in accordance with the regulations of the superior accounting unit.

(4) Enterprises whose financial statements are required by law to be audited shall have their financial statements audited before such statements are submitted as regulated. Audited financial statements of enterprises must be enclosed with audit reports when they are submitted to State administration bodies and their superior enterprises.

B. Consolidated financial statements and general financial statements

1. Consolidated financial statements

A parent company or a group shall be responsible for preparing consolidated financial statements to consolidate and present the overall conditions regarding its assets, liabilities, owners’ equity at the time of preparation of financial statements; and its performance and operating results in the reporting period.

The consolidated financial statement system shall include 4 reporting forms:

- Consolidated balance sheet Form No. B 01 – DN/HN- Consolidated income statement Form No. B 02 – DN/HN- Consolidated cash flow statement Form No. B 03 – DN/HN- Consolidated notes to the financial statements Form No. B 09 – DN/HN

The contents and form of, the method of calculation in, and the time limit for preparation, submission and disclosure of consolidated financial statements shall be carried out in accordance with the provisions in Circular providing guidelines on the Accounting Standard No.21 “Presentation of Financial statements” and the Accounting Standard No.25 “Consoliadted financial sattements and accounting for investments in subsidiary companies”, and with Circualr providing guidelines on the Accounting Standard No.11 “Business consolidation”.

2. General financial statements

An enterprise which has affiliated accounting units or a State corporation established and operating in the form of having no subsidiary companies must prepare its general financial statements to combine and present the overall conditions regarding its assets, liabilities and owners’ equity at the time of preparation of financial statements, and its performance and operating results in the operating period of the whole enterprise or State corporation.

The general finacial statement system shall include 4 reporting forms:

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- General balance sheet Form No. B 01-DN- General income statement Form No. B 02-DN- General cash flow statement Form No. B 03-DN- General notes to the financial statements Mẫu số B 09-DN

The contents and form of, and the time limit for preparation, submission and disclosure of general financial statements shall be carried out in accordance with the provisions in Circular providing guidelines on the Accounting Standard No.21 “Presentation of Financial statements” and the Accounting Standard No.25 “Consoliadted financial sattements and accounting for investments in subsidiary companies”.

A parent company or a group which has to prepare both general financial statements and consolidated financial statements shall prepare its general financial statements first (the preparation of general financial statement is based on types of operation: production and trading, investment in capital construction, or non-business activities) and then prepare its consolidated financial statements. While preparing general financial statements for its production and trading units, the parent company or group may have had to implement the provisions on consolidation of financial statements. Units which have to prepare both general financial statements and consolidated financial statements must comply with the provisions on preparation of general financial statements and consolidated financial statements.

II/ LIST AND FORMS OF FINANCIAL STATEMENTS

A. The list and forms of annual financial statements shall include:

- Balance sheet Form No. B 01 – DN- Inconme statement Form No. B 02 – DN- Cash flow statement Form No. B 03 - DN - Notes to the financial statements Form No. B 09 – DN

1. Balance sheet

Company:……………….... Form No. B 01 – DNAddress:…………………………. (issued together with Decision No.15/2006/QD-BTC

dated 20 March 2006 of the Minister of Finance)

BALANCE SHEET as at the date ...(1)

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

ASSETS Code Expla-

nation

Figures at the

closing of the

year (3)

Figures at the

opening of the year (3)

1 2 3 4 5

A– SHORT-TERM ASSETS (100=110+120+130+140+150) 100I. Cash and cash equivalents 110 1. Cash 111 V.01

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2. Cash equivalents 112II. Short-term financial investments 120 V.02 1. Short-term investments 121 2. Provisions for reduction in prices of short-term investments (*) (2)

129 (…) (…)

III. Short-term receivables 130 1. Receivable from customers 131 2. Preapaid to sellers 132 3. Short-term internal receivables 133 4. Receivables from completed work under a construction contract

134

5. Other receivables 135 V.03 6. Provisions for short-term receivables that are hard-recovered (*)

139 (…) (…)

IV. Inventory 140 1. Inventory 141 V.04 2. Provisions for reduction in prices of inventory (*) 149 (…) (…)V. Other short-term assets 150 1. Short-term prepaid expenses 151 2. Deductible VAT 152 3. Taxes and other charges that must be collected for the State budget

154 V.05

1 2 3 4 5 5. Other short-term assets 158

B – LONG-TERM ASSETS (200 = 210 + 220 + 240 + 250 + 260)

200

I- Long-term receivables 210 1. Long-term receivables from customers 211 2. Business capital in affiliated units 212 3. Long-term internal receivables 213 V.06

4. Other long-term receivables 218 V.07 5. Provisions for long-term receivables that are hard-recovered (*)

219 (...) (...)

II. Fixed assets 220 1. Tangible fixed assets 221 V.08 - Historical cost 222 - Accumulated value of wear and tear (*) 223 (…) (…) 2. Financially-leased fixed assets 224 V.09 - Historical cost 225 - Accumulated value of wear and tear (*) 226 (…) (…) 3. Intangible fixed assets 227 V.10 - Historical cost 228 - Accumulated value of wear and tear (*) 229 (…) (…) 4. Costs of capital construction in progress 230 V.11III. Invested property 240 V.12 - Historical cost 241 - Accumulated value of wear and tear (*) 242 (…) (…)IV. Long-term financial investments 250 1. Investments in susidiary companies 251 2. Investments in associated or joint venture companies 252 3. Other long-term investments 258 V.13 4. Provisions for reduction in prices of long-term financial 259 (…) (…)

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investments (*)V. Other long-term assets 260 1. Long-term prepaid expenses 261 V.14 2. Assets on which income tax is postponed 262 V.21 3. Other long-term assets 268

TOTAL ASSETS (270 = 100 + 200) 270

SOURCE OF CAPITAL

A. LIABILITIES (300 = 310 + 330) 300I. Short-term liabilities 310 1. Short-term borrowings and liabilities 311 V.15 2. Payable to sellers 312 3. Prepaid by purchasers 313 4. Taxes and charges payable to the State 314 V.16 5. Payable to employes 315 6. Costs payable 316 V.17 7. Internal payables 317 8. Payable for completed work under a construction

contract 318

9. Other short-term payables 319 V.18 10. Provisions for short-term payables 320II. Long-term liabilities 330 1. Long-term payables to sellers 331 2. Long-term internal payables 332 V.19 3. Other long-term payables 333 4. Long-term borrowings and liabilities 334 V.20 1 2 3 4 5 5. Postponed income tax payable 335 V.21 6. Provisions for loss-of-employment allowances 336 7.Provisions for long-term payables 337

B – OWNERS’ EQUITY (400 = 410 + 430) 400I. Owners’ equity 410 V.22 1. Owners’ invested capital 411 2. Surplus of shareholders’ equity 412 3. Owners’ other capital 413 4. Fund’s shares (*) 414 (...) (...) 5. Difference in property revaluation 415 6. Foreign exchange differences 416 7. Investment and development fund 417 8. Financial contingency fund 418 9. Other funds founded from owners’ equity 419 10. Undistributed net profits 420 11. Source of capital invested in capital construction 421II. Other funds and source of budget 430 1. Reward fund, welfare fund 431 2. Source of budget 432 V.23 3. Source of budget forming fixed assets 433

TOTAL OF SOURCE OF CAPITAL (440 = 300 + 400) 440

19

OFF BALANCE SHEET ITEMS

ITEMS Explanation Figures at the closing of the year

(3)

Figures at the

opening of the year (3)

1. Hired assets 24 2. Materials or goods held on behalf of other entities, or

received for processing 3. Goods received for sale on behalf of other entities, or taken as goods on consignment or mortgages 4. Bad debts written off 5. Foreign currencies 6. Estimate for administrative or project costs

Prepared on the date............

Prepared by Chief accountant Director (Signature, full name) (Signature, full name) (Signature, full name, seal)

Notes: (1) Figures may not be inserted into items where data are not available, but the ordinal

number of items and “code” still remain unchanged. (2) Figures in items with the sign (*) are recorded in negative numbers within the bracket

(...).(3) With respect to an enterprise whose accounting year is a calendar year (X), the

“figures at the closing of the year”may be recorded as “31.12.X“; the “figures at the opening of the year” may be recorded as “01.01.X“.

2. Income statement

Company: ................. Form No. B 02 – DNAddress:…………............... (issued together with Decision No.15/2006/QD-BTC


INCOME STATEMENT Year ………

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

ITEMSCode Explanation This year Previous

year1 2 3 4 5

1. Revenue from sale of goods and provision of services

01 VI.25

2. Reductions in revenue 023. Net revenue from sale of goods and

provision of services (10 = 01 - 02)10

4. Historical cost of goods sold 11 VI.27

20

5. Gross profits from sale of goods and provision of services (20 = 10 - 11)

20

6. Revenue from financial operation 21 VI.267. Financial expenses 22 VI.28 - of which: loan interest expenses 238. Expenses for sale 249. Business management expenses 2510 Net profits from business activities {30 = 20 + (21 - 22) - (24 + 25)}

30

11. Other incomes 3112. Other expenses 3213. Other profits (40 = 31 - 32) 4014. Total of pre-tax profits (50 = 30 + 40)

50

15. Current BIT expenses 16. BIT expenses postponed

5152

VI.30VI.30

17. After-BIT profits (60 = 50 – 51 - 52)

60

18. Basic interest on shares (*) 70

Prepared on the date..........


Notes: (*) Thie item shall be applied only to shareholding companies.

3. Cash flow statement

Company:...................... Form No. B 03 – DNAddress:…………................. (issued together with Decision No.15/2006/QD-BTC

dated 20 March of the Moinister of Finance )

CASH FLOW STATEMENT (under the direct method ) (*)

Year.Unit: ...........

Items Code Explanation This year

Previous year

1 2 3 4 5I. Cash flow from business activities 1. Revenue from sale of goods and provision of services and other revenues

01

2. Payments to providers of goods and services 023. Payments to employes 034. Loan interest payments 045. BIT payments 056. Other revenues from business activities 067. Other payments for business activities 07Net cash flow from business activities 20

II. Cash flow from investment activities

21

1.Payments for procurement and formation of fixed assets and other long-term assets

21

2.Revenue from disposal or sale of fixed assets and other long-term assets

22

3.Payments for borrowing or purchase of debt instruments from other entity

23

4.Receipts from lending or re-sale of debt instruments to other entity

24

5.Payments for investment in or capital contribution to other entity

25

6.Receipts from investment in or capital contribution to other entities

26

7.Receipts from loan interest, dividends and distributed profits

27

Net cash flow from investment activities 30

III. Cash flow from financial operation 1.Revenue from issuance of shares, or from receipt of capital

contributed by owners 31

2.Payments for capital contributed by owners, or for repurchase of issued shares of the enterprise

32

3.Short-term or long-term loans received 334.Payments for principal of loans 345.Payment for finance lease liabilities 356. Dividends or profits paid to owners 36Net cash flow from financial operation 40Net cash flow in the period (50 = 20+30+40) 50Cash and cash equivalents at the opening of the period 60Effects of changes in exchange rate on conversion of foreign currencies

61

Cash ans cash equivalents at the closing of the period (70 = 50+60+61)

70 VII.34

Lập, ngày ... tháng ... năm ...


Notes: Figures may not be inserted into items where data are not available, but the ordinal number of items and “code” still remain unchanged.

Company:................... Form No. B 03 – DNAddress:……................ (issued together with Decision No.15/2006/QD-BTC


CASH FLOW STATEMENT (under the indirect method) (*)

Year …..Unit: ...........

Items Code Explanation This year Previous year

1 2 3 4 5

22

I. Cash flow from business activities 1. Pre-tax profits 012. Adjustment in items - Amortization of fixed assets 02 - Provisions 03 - Unrealized foreign exchange gains or losses 04 - Gains or losses from investment activities 05 - Loan interest expenses 063. Profits from business activities prior to

changes in current capital 08

- Increase or decrease in accounts payable 09 - Increase or decrease in inventory 10 - Increase or decrease in accounts payable

(exclusive of loan interest expenses payable, BIT payable)

11

- Increase or decrease in prepaid expenses 12 - Loan interest expenses already paid 13 - BIT already paid 14 - Other receivables from business activities 15 - Other payments for business activities 16Net cash flow from business activities 20

II. Cash flow from investment activities 1.Payments for procurement and formation of fixed

assets and other long-term assets21

2.Revenue from disposal or sale of fixed assets and other long-term assets

22

3.Payments for borrowing or purchase of debt instruments from other entity

23

4.Revenue from lending or re-sale of debt instruments to other entity

24

5.Payments for investment in or capital contribution to other entity

25

6.Revenue from investment in or capital contribution to other entity

26

7.Revenue from loan interest, dividends and distributed profits

27

Net cash flow from investment activities 30III. Cash flow from financial operations1.Revenue from issuance of shares, or from receipt

of capital contributed by owners31

2.Payments for capital contributed by owners, or for re-purchase of issued shares of the ernterprise

32

3.Short-term or long-term loans received 334.Payments for principal of loans 345.Payments for finance lease liabilities 356. Dividends or profits paid to owners 36Net cash flow from financial operations 40Net cash flow in the period (50 = 20+30+40) 50Cash and cash equivalents at the opening of the period

60

Effect of changes in exchange rates on conversion of foreign currencies

61

23

Cash and cash equivalents at the closing of the period (70 = 50+60+61)

70 31

Prepared on the date..........


Notes: Figures may not be inserted into items where data are not available, but the ordinal number of items and “code” still remain unchanged.

4. Notes to the financial statements

Company:............................ Form No. B 09 – DNAddress:..................................... (issed together with Decision No.15/2006/QD-BTC


NOTES TO THE FINANCIAL STATEMENTS Year ....(1)

I- Operational characteristics of the enterprise 1- Form of capital ownership2- Business sector 3- Line of business 4- Operational characteristics of the enterprise in the financial year, which affect the financial statements.

II- Accounting period, monetary unit used in accounting 1- accounting year (commencing from ..../..../.... and closing on ..../..../...).2- Monetary unit used in accounting.

III- Applicable accounting standards and system1- Applicable accounting system 2- Proclamation of compliance with the accounting standards and system3- Applicable accounting form

IV- Applicable accounting policies 1- Principle of recognition of amounts of cash and cash equivalents . Method of converting other currencies into the currency used in accounting.

2- Principle of recognition of inventory:- Principle of recognition of inventory;- Method of calculating value of inventory; - Method of accounting for incventory;- Method of making provisions for reduction in prices of inventory.

3- Principle of recognition and amortization of fixed assets and invested property:- Principle of recognition of fixed assets (tangible, intangible, finance lease);- Method of amortization of fixed assets (tangible, intangible, finance lease).

4- Principle of recognition and amortization of invested property - Principle of recognition of invested property;

24

- Principle of amortization of invested property.

5- Principle of recognition of financial investments:- Investments in subsidiary companies or associated companies; capital contributed to jointly-

controlled business establishments; - Short-term investments in securities;- Other short-term or long-term investments;- Method of making provisions for reduction in prices of short-term or long-term investments.

6- Principle of recognition and capitalization of borrowed expenses:- Principle of recognition of borrowed expenses;- Capitalization rate used to determine borrowed expenses which are capitalized in the period;

7- Principle of recognition and capitalization of other expenses:- Prepaid expenses;- Other expenses;- Method of allocating prepaid exepnses;- Method of and period for allocating the goodwill.

8- Principle of recognition of expenses payable.

9- Principle and method of recognizing provisions payable.

10- Principle of recognition of owners’ equity: - Principle of recognizing owners’ invested capital, suplus of shareholders’s equity, and owners’

other capital. - Principle of recognizing difference in property revaluation. - Principle of recognizing foreign exchange differences. - Principle of recognizing undistributed profits.

11- Principle and method of recognition of revenue: - Revenue from sale of goods; - Revenue from provision of services; - Revenue from financial operations;- Revenue from construction contracts.

12. Principle and method of recognition of financial expenses.

13. Principle and method of recognition of current BIT, and BIT expenses postponed.

14- Transactions of provision for foreign exchange risks.

15- Other accounting principles and methods.

V- Information added to items presented in the balance sheet (Unit:......)

01- Cash At the closing of the year

At the opening of the year

- Cash- Deposit- cash in transit

Total

...

...

...

...

...

...

...

...02- Short-term financial investments: At the closing At the

25

- Short-term securities investments - Other short-term investments - Provisions for reduction in prices of short-term investments

of the year.........

opening of the year

...

...

...

Total ... ...03- Other short-term receivables At the closing

of the year At the

opening of the year

- Receivables from equitization - Receivables from dividends and distributed profits - Receivables employees - Other receivables

...

...

...

...

...

...

...

...Total ... ...

04- Inventory At the closing of the year


- Purchased goods in transit - Raw materials, materials - Tools, instruments - Expenses of production and busness in progress - Finished products

- Goods - Goods on consignment

- Goods in bonded warehouses - Property

Total of historical cost of inventory

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

* Net book value of inventory used as mortgages or collateral, or for guarantee of liabilities:……....* Recovered value of contingency reserves for reduction in prices of inventory in the year:.…...* Cases or events resulting in additionally advancing or recovering contingency reserves for reduction in prices of inventory:….

05- Taxes and charges that must be collected for the State At the closing of the year


- BIT paid excessively - ………………… - Other charges that must be collected for the State :

Total

... ... ... ...

... ... ... ...

06- Long-term internal receivables - Long-term internal loans -... - Other long-term internal receivables

... ... ...

... ... ...

Total … …07- Other long-term receivables At the closing

of the year At the

opening of the year

- Long-term deposits or collateral - Sums received in trust

... ...

... ...

26

- Loans without interest - Other long-term receivables

... ...

... ...

Total … …

08 – Increase or decrease in tangible fixed assets:

Items Buildings,

architectural structures

Machinery, equipment

Means of transport or transmission

...Other

tangible fixed

assets

Total

Historical cost of tangible fixed assets Balance at the opening of the year - Purchased in the year - Investments in completed capital construction- Other increases - Converted into invested property- Disposed of, sold- Other decreases

(...)(...)(...)

(...)(...)(...)

(...)(...)(...)

(...)(...)(...)

(...)(...)(...)

(...)(...)(...)

Số dư cuối năm Accumulated value of wear and tear Balance at the opening of the year - Amortization in the year - Other increases - Converted into invested property - Disposed of, sold - Other decreases

(...)(...)(...)

(...)(...)(...)

(...)(...)(...)

(...)(...)(...)

(...)(...)(...)

(...)(...)(...)

Balance at the closing of the year Net book value of tangible fixed assets - As at the opening date of the year - As at the closing date of the year

- Net book value at the closing date of the year of tangible fixed assets which have been used as mortgages or collateral, or for guarantee of loans

- Historical cost of fixed assets at the closing of the year, which have been depreciated completely but still used: - Historical cost of fixed assets at the colosing of the year, which are awating disposal: - Commitments to purchase or sale of tangible fixed assets with large value in the future: - Other changes in tangible fixed assets:

09- Increase or decrease in financially-leased fixed assets :

Items Buildings,

architectural structures

Machinery, equipment

Means of transport or transmission

...Other

tangible fixed

Intangible fixed

assets Total

27

assets Historical cost of financially-leased fixed assets Blance at the opening of the year - Financially-leased fixed assets in the year - Repurchase of

financially-leased finxed assets

- Other increases - Return of

financially-leased fixed assets

- Other decreases

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

Balance at the closing of the year Accumulated value of wear and tear Balance at the opening of the year - Amortization of fixed assets in the year - Repurchase of financially-leased fixed assets

- Other increases - Return of financially-leased fixed assets

- Other decreases

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

(...)

Blance at the closing of the year Net book value of financially-leased

fixed assets - As at the opening date of teh year- As at the closing date of the year

* Additionally-arising rents which are recognized as expenses of the year* Bases for determination of additionally-arising rents:* Articles regarding extension of the lease, or the right to purchase assets:

10- Increase or decrease in intangible fixed assets:

Items Land use

rightDistribution

right Copyright,

patent ...Other

intangible Total

28

fixed assets

Historical cost of intangible fixed assets

Balance at the opening of the year - Purchased in the year - Created from inside the

enterprise - Increased from business

consolidation - Other increases - Disposed of, sold - Other decreases

(…)(…)

(…)(…)

(…)(…)

(…)(…)

(…)(…)

(…)(…)

Balance at the closing of the year Accumulated value of wear and tear Balance at the opening of the year - Amortized in the year - Other increases - Disposed of, sold - Other decreases

(…)(…)

(…)(…)

(…)(…)

(…)(…)

(…)(…)

(…)(…)

Balance at the closing of the year Net book value of

intangible fixed assets - As at the opening date of the year - As at the closing date of the year

* Explanation of data and other explanations: -

-11- Expenses of capital construction in progress: At the

closing of the year


- Total expenses of capital construction in progress: ... ...Of wich (major construction works): + Construction works………….. + Construction works ………….. +…………………….…

... ... ...

... ... ...

12- Increase or decrease in invested property:

Items Figures at

the opening of the year

Increased in the year

Decreased in the year

Figures at the closing of the year

Historical cost of invested property- Land use right

29

- Buildings- Buildings and land use right - Infrastructure Accumulated value of wear and tear- Land use right - Buildings- Buildings and land use right - Infrastructure Net book value of invested property - Land use right - Buildings - Buildings and land use right - Infrastructure

* Explanation of data and other explanations:--..............

13- Other long-term investments: - Investments in shares - Investments in bonds - Investments in bills of exchange, treasury bonds - Long-term loans - Other long-term loans

At the closing of the year

...

...

...

...


...

...

...

... Total ... ...14- Long-term prepaid expenses At the

closing of the year


- Expenses prepaid for operational lease of fixed assets ... ...- Expenses for establishment of the enterprise - Expenses for reseach of great significance- Expenses in the stage of initiating the project, unqualified to be

recognised as intangible fixed assets - ...

... ... ... ...

... ... ... ...

Total ... ...

15- Short-term loans and liabilities At the closing of the year


- Short-term loans - Long-term liabilities falling due

... ...

... ...

Total ... ...16- Taxes and charges payable to the State At the

closing of the year


- VAT - Special Sales Tax (SST) - Export/import duties - Business Income Tax (BIT) - Personal Income Tax (PIT)

... ... ... ... ...

... ... ... ... ...

30

- Natural Resources Tax - Housing and land tax, and land rental - Other taxes - Fees, charges and other payables

... ... ... ...

... ... ... ...

Total ... ...17- Expenses payable At the

closing of the year


- Advances on salary during the period of taking leave- Expenses for major repair to fixed assets - Expenses during the period of cessation of business activities - …

... ...

...

... ... ...

Total ... ... 18- Other short-term payables At the

closing of the year


- Surplus assets awaiting handling - Labour union budget - Social insurance - Medical insurance - Payables regarding equitization - Receipt of short-term deposits or collateral - Unrealized revenue - Other payables Total

... ... ... ... ... ... ... ... ...

... ... ... ... ... ... ... ... ...

19- Long-term internal payables At the closing of the year


- Long-term internal loans -... - Other long-term internal payables Total

...

...

...

...

...

... 20- Long-term loans and liabilities At the

closing of the year


a – Long-term loans - Bank loans - Loans from other lenders - Issued bonds

b – Long-term liabilities - Financially leased liabilities - Other long-term liabilities

... ...

... ... ...

... ...

... ... ...

Total ... ...

c- Financially leased liabilities

This year Previous year Term Total amount

of payments for financially

leased liabilities

Payment of interest on financially

leased liabilities

Payment of

principal of

financially leased

liabilities

Total amount of payments for financially

leased liabilities

Payment of interest

on financially

leased liabilities

Payment of principal

of financially

leased liabilities

31

From 1 tear or less Over 1 year to 5 years Over 5 years

21- Assets on which income tax is postponed, and the postponed income tax payable a- Assets on which income tax is postponed:

At the closing of the year


- Assets on which the postponed income tax is related to the difference which is temporarily non-taxable.

… …

- Assets on which the postponed income tax is related to the taxable loss, which have not yet been used

… …

- Assets on which the postponed income tax is related to the taxable preferential project, which have not yet been used

… …

- Assets on which the income tax is posponed, and of which recovery has been recognized from previous years

… …

Assets on which the income tax is postponed … …

b- Postponed income tax payable Cuối năm Đầu năm - Postponed income tax payable, which arises from differences

temporarily taxable. - Postponed income tax payable, of which recovery has been

recognized from previous years - Postponed income tax payable

…

…

…

…

…

…

22- Owners’ equity

a- Table of collation of fluctuations in owners’ equity

Owners’ investment

capital

Surplus of share-

holders’ equity

Owners’ other

capital

Fund shares

Differenece in revaluation of

assets

Foreign exchnage differences ...

Source of funds for capital

constructionTotal

A 1 2 3 4 5 6 7 8 9Balance at the opening of the previous year- Increase in capital in the previous year

- Profits in the previous year

- Other increases- Decrease in capital in previous year

- Loss in previous year

32

- Other decreases

Balance at the closing of the previous year / Balance at the opening of this year - Increase in capital in this year

- Profits in this year - Other increases - Decrease in capital in this year

- Loss in this year- Other decreases

Balnace at the closing of this year

b- Details of owners’ investment capital At the closing of the year


- Capital contributed by the State - Capital contributed by other entities - ...

...

.........

Total ... ...

* Value of bonds converted into shares in the year * Amount of fund shares :

c- Capital transactions with owners, and distribution of dividends or profits

This year Previous year

- Owners’ investment capital + Contributed capital at the opening of the year + Contributed capital increased in the year + Contributed capital decreased in the year + Contributed capital at the closing of the year - Dividends or profits distributed

...

...

...

...

...

...

...

...

...

...

...

...

d- Dividends - Dividends published after the date of closing the accounting year: + Dividend published for ordinary shares:................. + Dividend published for preference shares:.................. - Preference shares’ accumulated dividends which have not been recognised:.......

đ- Shares At the closing of the year


- Number of shares registered for issuance - Number of shares sold to the public + Ordinarty shares + Preference shares - Number of shares repurchased + Ordinary shares

...

...

...

...

...

...

...

...

...

...

...

...

33

+ Preference shares - Number of shares in circulation + Ordinary shares + Preference shares

...

...

...

...

...

...

...

...

...

...

* Par value of shares in circulation :..............................

e- Enterprise’s funds: - Investment and development fund - Financial contingency fund - Other funds founded from owners’ equity

* Objectives of establishment and use of the enterprise’s funds

g- Revenues and expenses, gains or losses are directly recorded in owners’ equity in accordance with provisions of the specific accounting standards.

--

23- Budget This year Previous year

- Budget granted in the year ... ...- Administrative expenditure (...) (...)- Remaining budget at the closing of the year ... ...

24- Hired assets At the closing of the year


(1)- Value of hired assets - Hired fixed assets - Other hired assets (2)- Total of minimum future rents stated in the irrevocable contract

for operational lease of assets - From 1 year or less - Over 1 year to 5 years - Over 5 years

...

...

...

...

...

...

...

...

...

...VI- Information added to items represented in the income statement (Unit:.............)

Thie year Previous year

25- Total turnover from sale of goods and provision of services (Code 01) Of which: - Turnover from sale of goods - Turnover from provision of services

...

...

...

...

...

...

- Turnover of contruction contracts (for enterprises carrying out construction and installation activities)

+ Construction contracts’ turnover recorded in the period;+ Construction contracts’ accumulated turnover recorded as at

the time of preparation of the financial statements;

...

...

...

...

26- Turnover reductions (Code 02) Of which:

- Trade discount

...

...

...

...

34

- Reductions in prices of goods sold - Returned sales - VAT payable (method of direct calculation on value added) - Special sales tax (SST) - Export duty 27- Net revenue from sale of goods and provision of services (Code 10) Of which: - Net revenue from exchange of products or goods - Net revenue from exchange of services

...

...

...

...

...

...

...

...

...

...

...

...

...

...

28- Historical cost of goods sold (Code 11) This year Previous year

- Historical cost of goods sold - Historical cost of finished products sold - Historical cost of services provided - Remaining value, and sale or disposal expenses of invested

properties which have been sold - Trade expenses of invested properties- Wear and tear or loss of inventory - Items of excessive expenses

- Provisions for reduction in prices of inventory

...

...

...

...

...

...(...)......

...

...

...

...

...

...(...)......

Total ... ...

29- Turnover from financial operations (Code 21) This year Previous year

- Interest on deposits or loans -Return on investment in bonds, treasury bonds or bills - Dividends or ptofits distributed - Gains from sale of foreign currency - Realized foreign exchange gains - Unrealized foreign exchange gains - Gains from sale of deferred payment goods - Turnover from other finacial operations

Total

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

30- Financial expenses (Code 22) This year Previous year

- Interest on loans - Payment discount, gains from sale of deferred payment goods - Loss from disposal of short-term or long-term investments - Loss from sale of foreign currency - Realised foreign exchange losses - Unrealised foreign exchange losses - Provisions for reduction in prices of short-term or long-term investments - Other financial expenses

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

...

Total ... ...

31- Current BIT expenses (Code 51) This year Previous year

- BIT expenses calculated on taxable income of the current year … …- Inclusion of BIT expenses of previous years in current BIT

expenses of this year … …

35

- Total of current BIT expenses … …

32- Postponed BIT expenses (Code 52) This year Previous year

- Postponed BIT expenses arising from differences temporarily taxable

… …

- Posponed BIT expenses arising from recovery of assets on which income tax is posponed

… …

- Postponed BIT income arising from differences temporarily deducted

(…) (…)

- Posponed BIT income arising from taxable losses and unused tax preferences

(…) (…)

- Postponed BIT income arising from recovery of postponed income tax which is payable

(…) (…)

- Total of postponed BIT expenses … …

33- Business or production expenses classified by items This year Previous year

- Expenses for raw materials, materials - Expenses for employees - Cost of amortization of fixed assets - Expenses for hired services - Other expenses in cash

...

...

...

...

...

...

...

...

...

... Total ... ...

VII- Information added to items represented in the cash flow statement (Đơn vị tính:……………..) 34- Non-cash transactions affecting the cash flow statement and amounts of money held by the enterprise but not used

Năm nay Năm trướca- Purchase of assets by receipt of debts directly relevant, or

through finace lease transactions: - Purchase of an enterprise through issuance ofshares:- Conversion of debts into owners’equity:

……

……

b- Purchase and liquidation of a subsidiary company or another business entity in the reporting period. - Total value from the purchase or liquidation; - Portion of value from the purchase or liquidation, which is paid in cash or cash equivalents;- Amount of money or cash equivalents which really exist in the subsidiary company or another business entity which is purchhased or liquidated;- Portion of value of assets (aggregated according to each type of asset) and liabilities which are not cash and cash equivalents in the subsidiary company or another business entity which is purchased or liquidated in the period.

……

…

…

……

…

…

c- Present the value of large amounts of money and cash equivalents held by the enterprise, and the reason why they have not been used - the law’s restrictions? or other binding terms that the enterprise must comply with?

VIII- Other information

36

1- Potential debts, commitments, and other financial information: ………………………2- Events arising after the closing date of the accounting year: …………………………………………..3- Information on related parties: ………………………………………………………………………..4- Present assets, turnover, business results according to sectors (business sector or geographical

sector) in accordance with the regulations of the Accounting Standard No.28 “Report on sectors” (2):. ………………...…

5- Comparative information (changes in information in financial statements of previous accounting years): ……………………………………………………………………………………………...

6- Information on going concerns: ……………………………………...……………………………….7- Other information. (3) ......................................................................................................................

Prepared on the date ... ...Prepared by Chief accountant Director (Signature, full name)

(Signature, full name) (Signature, full name, seal)

Notes: (1) Figures will not be inserted into items where data are not available, but the ordinal number of items and “code” still remain unchanged.(2) Only applicable to listed companies.(3) Enterprises are permitted to further present other information which deem to be

necessary for users of financial statements.

B. List and forms of mid-year financial statements

(1)List of mid-year financial statements (in full form):

- Mid-year balance sheet (in full form): Form B 01a – DN;- Mid-year income statement (in full form): Form B 02a – DN;

- Mid-year cash flow statement (in full form): Form B 03a – DN;- Selective notes to the financial statements Form B 09a – DN;

(2) Forms of mid-year financial statements (in full form)

1- Mid-year balance sheet (in full form)Company:……………….... Form B 01a – DNAddress:…………………………. (issued together with Decision No.15/2006/QĐ-BTC

dated 20 March 2006 of the Minister of Finance )

MID-YEAR BALANCE SHEET (in full form)

Quarter.... Year ...As at the date ....

Unit:.............ASSETS Code Explanation Amount

at the closing of the

quarter

Amount at the opening of the

year

1 2 3 4 5

37

a – SHORT-TERM ASSETS (100)=110+120+130+140+150

100

I. Cash and cash equivalents 110 1.Cash 111 ... (*)

Note:(*) Items and codes in this mid-year balance sheet are similar to those of the annual balance sheeet – Form B01-DN.

Prepared on the date ....Prepared by Chief accountant Director (Signature, full name) (Signature, full name) (Signature, full name, seal)

2- Mid-year income statement (in full form)

Company: ................. Form B 02a – DNAddress:…………............... (issued together with Decision No.15/2006/QĐ-BTC


MID-YEAR INCOME STATEMENT (in full form)

Quarter ...Year... Unit:............

ITEMSCode Explana-

tion Quarter ...

Accumulated from the opening of the year to the closing

of this quarter This year

Previous year

This year

Previous year

1 2 3 4 5 6 71. Turnover from sale of goods and

provision of services ... (*)

Notes: (*) Items and codes in this mid-year income statement are similar to those of the annual income statement – Form B02 – DN.

Prepared on the date . ...Prepared by Chief accountant Director

(Signature, full name) (Signature, full name) (Signature, full name, seal)

3- Mid-year cash flow statement (in full form)



MID-YEAR CASH FLOW STATEMENT (in full form)

(under the direct method)Quarter ...Year….

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

38

Items Codes ExplanationAccumulated from the opening of the year to

the closing of this quarter


1 2 3 4 5I. Cash flow from business activities 1. Revenue from sale of goods and provision

of services, and other revenues 01

2. Payments made to providers of goods and services

02

…(*)

Notes:(*) Items and codes in this mid-year cash flow statement are similar to those of the annual cash flow statement – Form B03 –DN

Prepared on the date . ...Prepared by Chief accountant Director




MID-YEAR CASH FLOW STATEMENT (in full form)

(under the indirect method)Quarter ...Year …..

Unit: ...........Items

Codes ExplanationAccumulated from the opening of the year to

the closing of this quarter

Thie year Previous year

1 2 3 4 5I. Cash flow from business activities 1. Pretax profits 012. Adjustments to items - Amortization of fixed assets 02 … (*)

Notes: (*) Items and codes in this mid-year cash flow statement are similar to those of the annual cash flow statement – Form B03 – DN.

Prepared on the date .....Prepared by Chief accountant Director


39

4- Selective notes to the financial statements

Company: ................ Form B 09a - DNAddress: .............................. (issued together with Decision No.15/2006/QĐ-BTC


SELECTIVE NOTES TO THE FINANCIAL STATEMENTS

Quarter ... Year ...

I. Operational characteristics of the enterprise 1. Form of equity ownership.2. Field of business.3. Line of business.4. Characteristics of the enterprise’s business activities in the accounting period, which

affect the financial statements.

II. Accounting period, currency unit used in the accounting 1. The accounting year (commencing from the date .../.../... and ending on the date .../.../...).2. Currency unit used in the accounting.

III. Accounting standards and system applied 1. The applicable accounting system.2. Proclamation of compliance with the accounting standards and system. 3. The applicable accounting form.

IV. Applicable accounting policies

The enterprise must proclaims that the mid-year finacial statements and the annual financial statements of the most recent year are prepared based on the same accounting policies. Where there is any change in the accounting policies, the entetrprise is required to describe such a change and specify its impacts.

VI. Material events or transactions in the mid-year accounting period

1. Explain the seasonal or cyclical nature of business activities in the mid-year accounting period.

2. Present the nature and value of items affecting assets, liabilities, sources of owners’ equity, net income, or cash flows seen as abnormal factor due to the nature, size or impact of such items.

3. Present movements in sources of owners’ equity and the accumulated value calculated as at the date of preparing the mid-year financial statements, and notes to the mid-year financial statements comparable to those of the most recent accounting year.

4. Nature and value of changes in accounting estamates, which have been reported in the previous mid-year financial statements of the current accounting year, or changes in accounting estimates which wetre reported in previous accounting years, if these changes have had a material impact on the current mid-year accounting period.

5. Present the issuance, repurchase and return of debt securities and equity securities.

40

6. Dividends already paid (based on total shares or on each share) to ordinary shares and preference shares (applicable to shareholding companies).

7. Present turnover and income from business activities of divisions in lines of business and geographical regions, based on reports of divisions (applicable to listed companies).

8. Present material events arising after the date of closing the mid-year accounting period, which have not been represented in the mid-year financial statements.

9. Present changes in potential debts or assets from the date of closing the nearest accounting year.

10. Other information.Prepared on the date ...

Prepared by Chief accountant Director (Signature, full

name)(Signature, full name) (Signature, full name, seal)

(3) List of mid-year financial statements (in summary form)

- Mid-year balance sheet (in summary form): Form B 01b –DN- Mid-year income statement (in summary form): Form B 02b – DN- Mid-year cash flow statement (in summary form): Form B 03b – DN - Selective notes to the financial statements Form B 09a – DN

(4) Forms of mid-year financial statements (in summary form)

1. Mid-year balance sheet (in summary form)

Company:……………….... Form B 01b– DNAddress:…………………………. (issued together with Decision No.15/2006/QĐ-BTC


MID-YEAR BALANCE SHEET

(in summary form)Quarter... Year ...As at the date ...

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

ASSETS Codes Explana-

tionFigues at

the closing of the

quarter

Figures at the

opening of the year

1 2 3 4 5A – SHORT-TERM ASSETS (100=110+120+130+140+150)

100I. Cash and cash equivalents 110II. Short-term financial investments 120III. Short-term accounts receivable 130

41

IV. Inventory 140V. Other short-term assets 150

B – LONG-TERM ASSETS (200 = 210 + 220 + 240 + 250 + 260)

200

I- Long-term accounts receivable 210II. Fixed assets 220III. invested properties 240IV. Long-term financial investments 250V. Other long-term assets 260

TOTAL ASSETS (270 = 100 + 200) 270

SOURCES OF EQUITY

A – LIABILITIES (300 = 310+ 330) 300I. Short-term liabilities 310II. Long-term liabilities 330

B – OWNERS’ EQUITY (400 = 410 + 430) 400I. Owners’ equity 410II. Other budgets and funds 430

TOTAL SOURCES OF EQUITY (440 = 300 + 400) 440

Prepared on the date…Prepared by Chief accountant Director (Signature, full name) (Signatur, full name ) (Signature, full name, seal)

2. Mid-year income statement (in summary form)

Company: ................. Form B 02b – DNAddress:…………............... (issued together with Decision No.15/2006/QĐ-BTC


MID-YEAR INCOME STATEMENT (in summary form)Quarter ...Year ...

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

ITEMS Codes Explana-tion

Quarter....Accumulated from the opening of the year to the closing

of this quarterThis year

Previous year

This year

Previous year

1 2 3 4 5 6 71. Turnover from sale of goods and

provision of services 01

2. Turnover from financial operations and other revenues

31

3. Pretax profits 504. After-BIT profits 60

42

Prepared on the date ...Prepared Chief accountant Director


3. Mid-year cash flow statement (in summary form)

Company: ……………….. Mẫu số B 03b – DNAddress:………………………… (issued together with Decision No.15/2006/QĐ-BTC


CASH FLOW STATEMENT (in summary form)Quarter ...Year ...

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

Items Codes ExplantionAccumulated from the

opening of the year to the closing of this quarter


1 2 3 4 5

1. Net cash flow from business activities

20

2. Net cash flow from investment activities

30

3. Net cash flow from financial operations

40

4. Net cash flow in the period (50= 20+30+40)

50

5. Cash and cash equivalents at the opening of the period

60

6/ Impact of changes in exchange rate used for conversion of foreign currencies

61

7/ Cash and cash equivalents at the closing of the period

(70 = 50+60+61)

70

Prepared on the date ...


43

4. Selective notes to the financial statements (using Form B09a-DN)

PART I I I

SYSTEM OF BUSINESS ACCOUNTING DOCUMENTS

I/ GENERAL PROVISIONS

1. Items and forms of accounting documents

Accounting documents of enterprises must be prepared in accordance with the provisions on preparation and signing of accounting documents, specified in the Law on Accounting, Government Decree No. 129/2004/NĐ-CP dated 31 May 2004 and other legal documents related to accounting documents, and with the provisions in this document.

Enterprises with particular economic or financial transactions for which forms of documents have not been provided for in this document shall prepare accounting documents in accordance with separate regulations on accounting documents and with other legal documents, and such accounting documents must be approved by the Ministry of Finance.

2. System of accounting document forms The system of accounting documents forms applicable to enterprises shall incclude:- The accounting documents issued with this business accounting system, including 5

items: + Item relating to employees and salaries;+ Item relating to inventory;+ Item relating to sale of goods;+ Item relating to currency ;+ Item relating to fixed assets.- The accounting documents issued with other legal documents (forms and guidelines

on their preparation shall comply with the issued documents).

3. Preparation of accounting documents

All economic and finacial transactions related to operation of an enterprise shall require accounting documents. The accounting document shall only be prepared once for an economic or financial transaction. The accounting document must contain full items and present clearly and truthfully the economic or finacial transaction. Words written on the 44

document must be clear, not erased or abbreviated. The sum in words must tally with the sum in numbers.

The accounting document must include full copies regulatedc for each type of document. In respect of a document including many copies, all copies must be prepared one time with the same content by using computers, typewriters or carbon-paper. In a special case where all copies cannot be written one time, they can be written twice but the consistency and legality of all copies of the document must be ensured.

Accounting documents prepared by computers must contain all items stipulated for the accounting document.

4. Signing of accounting documents

To be valid, all accounting documents must bear full signatures of people whose position is provided for on the accounting document. In particular, electronic documents must bear electronic signatures in accordance with law. All signatures on theaccounting document must be signed by pen or fountain-pen, and should not be signed in red ink or by pencil. With respect to the accounting document for payment, each of its copy must besigned. The signature of one person on the accounting must be consistent and identical to the signature which has been registered as regulated. Where the signature is not registered, the signture in the following times must be identical to signtures in previous times.

An enterprise which has no chief accountant must appoint a person to act as an accountant to carry out transactions with customers or the bank, the signture of the chief accountant shall be replaced with the signature of that accountant. The accountant shall have the duties, responsibilities and right stipulated for the chief accountant.

The signatures of the head of an enterprise (general director, director or an authorised person) and of the chief accountant (or an authorised person) and the seal stamped on the accounting document must be identical with the specimen signatures and seal which is valid and has been registered with the bank. The signature of an accountant on the accounting document must be identical to the signature registered with the chief accountant.

The chief accountant (or an authorised person) shall not be permitted to sign “per pro” the head of the enterprise. An authorised person shall not be allowed to delegate his authorised power to another person.

Enterprises are required to open a register of specimen signatures of the treasurer, storekeeper, accountants, chief accountant (and an authorised person), general director (and an authorised person). The register of specimen signtures must be number on eachj page, and the space between two consecutive pages must be stamped with a seal managed by the head of the enterprise (or an authorised person). Each person must sign three specimen signtures in the register.

Individuals who have the right or who are are authorised to sign accounting documents shall not sign such documents when they are not recorded or are recorded incompletely.

45

The delegation of authority to sign accounting documents shall be stipulated by the (general) director of the enterprise in accordance with the law and the management requrements to ensure that assets are controlled tightly and safely.

5. Order of circulation and control of accounting documents All accounting documents prepared by an enterprise or coming from outside must be

gathered in the accounting division of the enterprise. The accounting division shall examine those accounting documents and only use them to make entries in the accounting book after such accounting documents have been exemined and their legality is verified.

Order of circulation of accounting documents shall include the following steps:

- Prepare, receive and handle accounting documents; - The accountant or chief accountant shall examine and sign accounting documents or

submit them to the enterprise’s director for signing of them; - Classify, arrange accounting documents, and enter up in the accounting book;- Store and preserve accounting documents.

Order of examination of accounting documents:- Examine the clearness, truthfulness and adequacy of items and data recorded on

accounting documents;- Examine the legality of economic or financial transactions recorded on accounting

documents, collate accounting documents with other relevant documents; - Eaxmine the accuracy of data and information on accounting documents.

Upon examination of accounting documents, if discovering breaches of the State’s policy and regulations on economic or financial management, the accounting division must refuse to make payment or take goods out of the store, and must immediately notify such breaches to the director of the enterprise for dealing with them in a timely manner in accordance with the current law.

With respect to accounting documents which are prepared improperly or have unclear numbers, the accountant responsible for examining them and making entries in the accounting book must return them, requesting the person who prepares such accounting documents to prepare again the accounting documents in accordance with the proper procedures or to make adjustments in the accounting documents before using them as a basis for making entries in the accounting book.

6. Translation of accounting documents into Vietnamese

Accounting documents in a foreign language must be translated into Vietnamese when they are used for making entries in accounting books in Vietnam. Documents which are rarely made out, or which are made out many times but their contents are not identical must be translated wholly. Documents which are made out many times with identical contents shall be translated wholly in respect of the first document, from the second document onward, only the main items are translated, such as name of the document, name of the company and person preparing the document, name of the company and person receiving the document,

46

position of the persons signing the document. The translator must sign, recording full name on the Vietnamese version, and be responsible for the contents translated into Vietnamese. The Vietnamese version must be enclosed with the original copy in foreign language.

7. Use, management, printing and issuance of accounting document forms

All enterprises are required to use uniform accounting document forms stipulated in this accounting system. During the process of using accounting documents, enterprises are not permitted to amend compulsory accounting document forms.

Printed accounting document forms must be preserved carrefully, and must not be left damaged or rotten. Cheques and valauable papers must be managed like money.

Compulsory accounting document forms shall be printed and issued by the Ministry of Finance or an entity aurthorised by the Ministry of Finance. The entity authorised to print and issue compulsory accounting documents must print them according to the proper form and quantity regulated for each type of accounting document, and must comply with the Ministry of Finance’s provisions on management of printed matter.

In respect of instructional accounting document forms, enterprises may buy the printed ones available in the market, or print such accounting document forms by themselves, but must ensure that the accounting documents contain main items as stipulated in Article 17 of the Law on Accounting.

8. Enterprises using electronic documents in their economic or financial activities, and for making entries in accounting books must comply with the provisions of legal documents on electronic documents.

II/ LIST OF ACCOUNTING DOCUMENTS

No Name of document Serial number

Nature

Compulsory form (*)

Instructional form (*)

A/ACCOUNTING DOCUMENTS ISSUED UNDER THIS DECISION

I/ Employees and salaries 1 Time-sheet 01a-LĐTL x2 Overtime time-sheet 01b-LĐTL x3 Payroll 02-LĐTL x4 Statement of bonus payments 03-LĐTL x5 Travel warrant 04-LĐTL x6 Confirmation slip of finished products

or completed work 05-LĐTL x

7 Statement of overtime payments 06-LĐTL x8 Statement of rent payments 07-LĐTL x9 Piece-work contract 08-LĐTL x10 Minutes on liquidation

(commissioning) of piece-work contract

09-LĐTL x

47

11 Statement of items paid from salary 10-LĐTL x12 Statement of allocation of salaries and

social insurance contributions 11-LĐTL x

II/ Inventory 1 Goods-received note 01-VT x2 Goods-dispatched note 02-VT x3 Minutes on testing materials, tools,

products, goods03-VT x

4 Slip of materials left at the closing of the period

04-VT x

5 Minutes on inventorying materials, tools, products, goods

05-VT x

6 Statement of purchased goods 06-VT x7 Statement of allocation of raw

materials, materials, tools, instruments

07-VT x

III/ Sale of goods1 Statement of payments for goods

supplied on a consignment basis01-BH x

2 Counter cards 02-BH x

IV/ Currency 1 Note of receipts 01-TT x2 Note of payments 02-TT x3 Request for advance 03-TT x4 Voucher for payment of advance 04-TT x5 Request for payment 05-TT x6 Receipt for collection of money 06-TT x7 Statement of gold, silver, precious

metals, gemstones07-TT x

8 Statement of fund inventory (used for VND)

08a-TT x

9 Statement of fund inventory (used for foreign currencies, gold, silver...)

08b-TT x

10 Statement of payments 09-TT x

V/ Fixed assets

1 Minutes on transfer and receipt of fixed assets

01-TSCĐ x

2 Minutes on liquidation of fixed assets 02-TSCĐ x3 Minutes on transfer of fixed asses to

which major repair is completed03-TSCĐ x

4 Minutes on revaluation of fixed assets 04-TSCĐ x5 Minutes on invetorying fixed assets 05-TSCĐ x6 Statement of calculating and

allocating costs of amortization of 06-TSCĐ x

48

fixed assets

B/ DOCUMENTS ISSUED WITH OTHER LEGAL DOCUMENTS

1 Certificate of sick leave with an entitlement to social insurance benefits

x

2 List of people who are on leave and entitled to illness or maternity allowances

x

3 VAT invoice 01GTKT-3LL x4 Ordinary sale invoice 02GTGT-3LL x5 Goods dispatched note-cum-internal

transport note 03 PXK-3LL x

6 Goods dispatched note of goods provided to agents

04 HDL-3LL x

7 Invoice for finance lease service 05 TTC-LL x8 Statement of purchased goods without

invoices 04/GTGT x

9 ..........................

Ghi chú: (*) BB: Compulsory form(*) HD: Instructional form

PART IV

SYSTEM OF ACCOUNTING BOOKS AND FORMS OF ACCOUNTING

I- GENERAL PROVISIONS

1- Accounting books

Accounting books are used to record, systematize and store all economic and financial transactions that happen chronologically and relate to the enterprise.

Enterprises are required to implement the regulations on accounting books in the Accounting Law and Government Decree No. 129/2004/NĐ-CP dated 31/5/2005, making detailed regulations and providing guidelines for implementation of a number of Articles of the Accounting Law regarding the field of business, in the implementing documents and in this accounting system.

2/ Types of accounting books

Each enterprise shall only use a system of accounting books for an accounting year. The accounting books shall include the general accounting books and the detailed accounting books.

The general accounting books shall include the journal and the ledger.

The detailed accounting books shall include the Detailed accounting books or cards.

49

The State makes mandatory regulations on forms and contents of accounting books, and the method of recording on the ledger and journal; and makes instructional regulations on Detailed accounting books or cards.

2.1. General accounting books

1/ The journal is used to record economic and financial transactions occuring chronologically in each accounting period and in an accounting year, and corresponding accounts of those transactions. The accounting figures on the journal show the total amounts in the debit side and the credit side of all accounting accounts used by the enterprise.

The journal must show fully the following items: - Date of making entries in the journal;- Serial number and date of accounting documents serving as a basis for recording

the journal;- Summary contents of the economic or financial transaction occurring; - Amount of money of the economic or financial transaction occurring.

2/ The ledger is used to record economic or financial transactions occuring in each accounting period and in an accounting year in conformity with the accounting accounts stipulated in the system of accounting accounts applicable to enterprises. The accounting figures on the ledger show the general condition of assets, sources of equity, business activities and results of an enterprise.

The ledger must show fully the following items: - Date of making entries in the ledger;- Serial number and date of accounting documents serving as a basis for recording

the ledger; - Summary contents of the economic or financial transaction occurring; - Amount of money of the economic or financial transaction occurring, which is

recorded in the debit side or credit side of the account.

2.2 Detailed accounting books or cards

The detailed accounting books are used to record economic or financial transactions related to accounting objects which need to be monitored in detail in accordance with the management requirements. Figures on the detailed accounting books provide information necessary for management of each type of asset, source of equity, turnover and expenses which have not been shown on the journal and the ledger.

The number and structure of detailed accounting books are not stipulated compulsively. Enterprises shall base on the State’s instructional regulations on detailed accounting books and management requirements of enterprises to establish detailed accounting books necessary and appropriate for them.

3. System of accounting books

Each accounting unit shall only use an official and sole system of accounting books for an accounting year. An enterprise must, based on the system of accounting accounts applied by the enterprise and its management requirements, establish general accounting books and detailed accounting books which are necessary

4. Responsibilities of persons who keep and make entries in accounting books

Accounting books must be managed tightly by individuals who are appointed to keep and make entries in such books. When accounting books are given to whichever employee,

50

that employee must be responsible for making entries in the books and keeping such books during the period for which the accounting books are used.

When the employee keeping and making entries in accounting books is changed, the chief accountant must organise the handover of responsibilities between the old and new employees. The minutes on handover of responsibilities must be signed and certified by the chief accountant

5. Making entries in accounting books by hand or by computer

An accounting unit is permitted to make entries in accounting books by hand or by computer.

Where an accounting unit makes entries in accounting books by hand, it must comply with the regulations on accounting forms and accounting books as stated in Section II- “Accounting Forms”. The unit is permitted to further establish detailed accounting books based on its management requirements.

Where an enterprise makes entries in accounting books by computer, it shall be permitted to either purchase or construct itself an accounting form on computer accordingly. The computer accounting form applied by the enterprise must ensure the following requirements:

- Having necessary general accounting books and detailed accounting books to meet the accounting requirements as regulated. General accounting books must contain full items in accordance with the regulations on accounting books.

- Complying with the regulations on establishing, recording, closing and amending books of account in accordance with the Accounting Law, the implementing documents and the regulations in this accounting system.

- An enterprise must base on standards and conditions of the accounting software stipulated by the Ministry of Finance in Circular No. 103/2005/TT-BTC dated 24 November 2005 to select an accounting software appropriate to its management requirements and conditions

6. Establishing and recording books of account

6.1- Establishing books of account

Books of account must be opened at the opening of an accounting year. With respect to a newly established enterprise, books of account must be opened from the date of its establishment. The enterprise’s legal representative and chief accountant shall be responsible for approving hand-recorded accounting books before thay are used, or approving official accounting books after thet have been printed out from a computer.

Books of account must be the ones printed or prepared beforehand, and may be bound into books or left in separate sheets. Having been used, such sheets must be bound together into books for filing.

Before using books of account, an enterprise must complete the following procedures:

With respect to books of account in the form of books: On the first page of such books, it is required to clearly record name of the enterrprise,

name of the book, date of opening the book, the accounting year, and the period for which the book is recorded. The accounting books must contain full names and signatures of the person keeping and recording them, the chief accountant and the legal representative of an

51

enterprise, the date of closing the books or the date of transferring the books to another person

Books of account must be numbered from the first page to the last page; and the space between two consecutive pages of the accounting books.

With respect to books of account in the form of loose sheets::It is required to record on the top of each loose sheet the enterprise’s name, the

ordinal number of each loose sheet, the book’s name, the month in which the book is used, and full name of the person keeping and recording the book. Before being used, loose sheets must be signed and certified by the enterprise’s director or an authorised person, and stamped with the enterprise’s seal. Loose sheets must be kept safely and arranged in order so that they can be found easily.

6.2- Recording books

The recording on books of account must be based on audited accounting documents. All data recorded on books of account must be supported by legal and valid accounting documents.

6.3- Closure of books of account

At the closing of an accounting period, books of account must be closed before financial statements are prepared. In addition, books of account must be closed in the case of an inventory or in other cases as regulated by law.

7. Amendment to accounting books 7.1- Upon discovery that the hand-recorded books of account contain mistakes

in the process of recording books of account, an enterprise shall not be permitted to erase such mistakes which cause a loss of falsely-recorded information or data, but shall make an amendment based on one of the following methods:

(1)- Method of rectification: This method is used to rectify mistakes by drawing a line to delete the falsely-recorded

data, howwever, it is required that the mistakes be seen clearly. Above the deleted data, number or words shall be recorded in ordinary ink, and the signature of a chief accountant or a person in charge of accounting is put besides the place of amendment. This method shall be applied in the following cases:

- Mistakes in explanation, unrelated to the corresponding relation between accounts; - Mistakes not affecting the otal sum.

(2)- Method of recording negative number (also called method of recording in red ink): This method is used to amend mistakes by: recording in red ink or recording in

parentheses the falsely-made entries to cancel such entries. Recording properly-made entries in ordinary ink to substitute for the falsely-made entries.

This method shall be applied in the following cases: - Mistakes as to corresponding relation between accounts, resulted from falsely-made

entries which cannot be rectified by the method of rectification - Discovery of mistakes after financial statements have been submitted to the competent

body. In this case, amendment shall be made in the accounting book in the year in which

mistakes are discovered, based on the non-retroactive or retroactive method in accordance

52

with the regulations of the Accounting Standrad No.29 “Change in accounting policy, accounting esttimates and mistakes”;

- Mistakes by which an entry is made in an account where the sum has been recorded many times, or where the falesely-recorded number is larger than the properly-recorded number.

When applying the method of recording negative numbers to rectify the mistake, an enterprise must prepare a “rectification document” signed and certified by the chief accountant

(or by the person in charge of accounting).

(3)- Method of making additional entry: This method shall be applied in the case where an accountant records properly the

corresponding relation between accounts but the sum entered up in books of account is smaller than the one rcorded on documents, or where the accountant omits, not adding up all the money recorded on documents. When making an amendment under this method, the accountant must prepare “additional registration documents”, entering up in ordinary ink the short money in the book of account.

7.2- Amendment in the case of recording the books of account by computer (1)- Where mistakes are discovered before the annual financial statements are

submitted to the competent State body, the accountant must make a direct amendment on computer accounting books of that year;

(2)- Where mistakes are discovered after the annual finacial statements are submitted to the competent State body, the acountant must make a direct amendment on the computer accounting book of the year in which mistakes are discovered, making a note on the last line of that computer accounting book.

(3)- When making entries in the accounting book by computer, all amendments shall be made under “the method of recording negative numbers” or “the method of making additional entry” .

7.3- When the annual finalisation report is approved or when the inspection, examination or audit is closed and official conclusions are made, if there is a decision by which the finacial statements’ data related to those recorded on accounting books must be amended, the accounting unit has to amend the accounting books and the balance of relevant accounts based on the regulated method. The amendment shall be directly made on accounting books of the year in which mistakes are discovered, and the accountant must make a note on the last page (last line) of such accounting books in order to make it easy for collation and examination.

8/ Adjustment in accounting books

Where, due to a change in the accounting policy or a discovery of material misstatements in previous years, an accounting unit must make a retroactive amendment in accordance with the regulations of the Accounting Standard No.29 “Changes in the accounting policy, accounting estimates and mistakes”, the accountant must amend the opening balance in relevant accounts on the general accounting books and detailed accounting books.

9/ Forms of accounting books

53

(1)- An enterprise shall be permitted to apply one of the five following accounting forms:

- Accounting form of general journal; - Accounting form of Journal-Ledger;- Accounting form of registration documents; - Accounting form of Journal-Documents; - Accounting form of computer accounting.

In each form of accounting books, there are specific regulations on number, structure, form and order of accounting books, method of recording, and relations between accounting books.

(2)- An enterprise shall, based on the size and characteristics of its business and production activities, its management requirements, professional skills of its accountants and its technical equipment, select an appropriate accounting form and must comply with the regulations of that form of accounting books, including kinds of books and structure of such books, collation and examination, order, and method of recording accounting books.

II. ACCOUNTING FORM1. Accounting form of gneral journal1.1 Principle and basic characteristics of the accounting form of general journal

Basic chracteristics of the accounting form of general journal: All economic and financial transactions must be recorded choronologically in journals, especially the general journal, based on economic content of such transactions. Afterward, data of each transaction on journals shall be used to make entries in the ledger.

The accounting form of jeneral journal shall include the following main books: - General journal, special journal; - Ledger; - Detailed accounting books or cards.

1.2 Order of the recording on accounting books which are in the form of a general journal (Table No. 01)

(1) Every day, based on accounting documents which have been examined and are used as a basis for recording the accounting book, an accountant shall, at first, enter up the transactions in the general journal and then, based on data recorded on the general journal, make entries in the ledger according to appropriate accounts. An accounting unit which opens Detailed accounting books or cards shall, in addition to making entries in the general journal, record transactions on relevant Detailed accounting books or cards.

Where an accounting unit opens special journals, it shall, on the daily basis and based on documents used to make entries in the accounting book, record transactions on the relevant special journal. On a periodical basis (of 3, 5, 10... days) or at the end of a month, the accounting unit shall, depending on the number of transactions carried out, consolidate data in each special journal and use consolidated data to make entries in appropriate accounts of the ledger.

(2) At the end of a month, a quarter or a year, the accounting unit shall add up data on the ledger and prepare the balance sheet.

54

After being examined and collated, data recorded on the ledger and the detailed listing (prepared from Detailed accounting books or cards) shall be used to make out financial statements.

In principle, the total debits and credits on the balance sheet must equal the total debits and credits on the general journal (or the general journal and special journals after rejecting the overlapped data on special journals) of the same period.

Table 1 ORDER OF MAKING ENTRIES IN THE ACCOUNTING BOOK WHICH IS IN THE ACCOUNTING FORM

OF A GENERAL JOURNAL

Note:

Record daily

Record in the late month or periodically

Collation and examination

2. Accounting form of Journal-Ledger

2.1. Basic characteristics of the accounting form of Journal-Ledger

Basic characteristics of the accounting form of Journal-Ledger: Economic and financial transcations are rcorded chronologically, based on economic content (accounting accounts) of such transactions, in the same sole general accounting book which is the Journal-Ledger. The bases for making entries in the Journal-Ledger are accounting documents or or the

55

Detailed accounting books or cards

Special journal đặc biệt

Accounting documents

GENERAL JOURNAL

LEDGER

Balance sheet

FINANCIAL STATEMENT

detailed listing

general listing of accounting documents of the same type.

The accounting form of Journal-Ledger shall include the following accounting books: - Journal-Ledger;- Detailed accounting books or cards.

2.2. Order of the recording on accounting books which are in the form of a Journal-Ledger (Table No.2)

(1) Every day, based on accounting documents or the general list of accounting documents of the same type, which have been examined and are used as a basis for entering up in the accounting book, an accountant shall, at first, determine the debit account and credit account to make entries in the Journal-Ledger. Data on each documnet (or on the general listing of accounting documents of the same type) are recorded on one line of both the Journal and the Ledger. The general listing of accounting documents are prepared for documents of the same type (receipts vouchers, payment vouchers, goods-dispatched notes, goods-received notes,,,,) made out many times in a day or within a period of 1 to 3 days.

After being used to make entries in the Journal-Ledger, accounting documents and the general listing of accounting documents of the same type shall be used for entering up in relevant Detailed accounting books or cards.

(2) At the end of a month, after entering up all accounting documents made out in the month in the Journal-Ledger and in Detailed accounting books or cards, the accountant shall add up the column of arising numbers in the Journal, and the columns of debits and credits in each account if the Ledger, and write on the line for the total number at the end of the month. Based on the total numbers of previous months and the total numbers of this month, the accountant shall calculate the accumulated numbersfrom the early quarter to the end of this month. Based on the balance in the early month (early quarter) and the balance arising in the month, the accountant shall calculate the balance in the late month (late quarter) in each account of the Journal-Ledger.

(3) Upon examination and collation of the total number in the late month (late quarter)

in the Journal-Ledger, the following requirements must be ensured:

Total sum in the column of

Total debits Total credits

amounts arising in = of all = of all the Journal accounts accounts

Total debits of all accounts = Total creditsof all accounts

(4) Detailed accounting books or cards must also be closed to add up debits and credits and calculate balance in the late month of each item. Based on the closed data of items, the accountant prepares “the detailed listing” for each account. Data on “the detailed listing” shall be collated with debits, credits and balance in the late month of each account in the Journal-Ledger.

56

The closed data on the Journal-Ledger and “the detailed listing”, after being examined and collated, shall be used for making out financial statements.

Table No.2ORDER OF MAKING ENTRIES IN THE ACCOUNTING BOOK WHICH IS IN THE ACCOUNTING FORM

OF A JOURNAL-LEDGER

Note:

Record daily Record in the late month Collation, examination

3. Accounting form of registration documents

3.1/ Basic characteristics of the accounting form of registration documents

Basic characteristics of the accounting form of registration documentrs: The direct bases for making entries in general accunting books are “registration documents”. The recording on general accounting books shall include:

+ Record chronologically on the Register of Registration Documents. + Record based on economic content on the Ledger.Registration documents shall be prepared by the accountant on the basis of each

accounting document or the general listing of accounting documents of the same type and economic content.

Registration documents are numbered continuously in each month or in the whole year (based on ordinal numbers in the register of registration documents) and accompanied with accounting documents, and approved by the chief accountant before they are used for making entries in the accounting book.

57

Accounting documnets

Cash-book

JOURNAL-LEDGER

General listing of

accounting documents of the same type

Sæ, thÎ kÕ to¸n chi tiÕt

Detailed accounting books or

cards

Detailed listing

FINANCIAL STATEMENTS

The accounting form of registration documents shall include the following accounting books:

- Registration documents;- Register of registration documents;- Ledger;- Detailed accounting books or cards.

3.2/ Order of the recording on accounting books which are in the form of regitration documents (Table No.3)

(1)- Every day, based on accounting documents or the general listing of accounting documents of the same type which have been examined and are used for making entries in accounting books, the accountant shall prepare registration documents. The accountant shall, based on registration documents, enter up in the register of registration documents and then make entries in the ledger. Having been used as a basis for preparing registration documents, accounting documents shall be used for entering up in relevant Detailed accounting books or cards.

. (2)- In the late month, the accountant must close accounting books and work out the total sum of economic or financial transactions in the month on the register of registration documents, and calculate the total debits and credits and the balance in each account on the ledger. The acountant then shall base on the ledger to prepare the balance sheet.

(3)- Having been collated and considered to be proper, data recorded on the ledger and the detailed listing (made out from Detailed accounting books or cards) shall be used for preparation of financial statements.

The collation and examination must ensure that the total debits and credits in all accounts of the balance sheet must be the same, and equal the total sum on the register of registration documents. The total debits and credits in accounts on the balance sheet must be the same, and the balance in each account on the balance sheet must be equal to the balance in each corresponding account on the detailed listing.

58

Table No.3ORDER OF THE RECORDING ON ACCOUNTING BOOKS WHICH ARE IN THE ACCOUNTING FORM

OF REGISTRATION DOCUMENTS

Note:

Record daily Record in the late month Collation, examination

4. Accounting form of Journal-Documents

4.1/ Basic characteristics of the accounting form of Journal-Documents)- Gather and systematize economic transactions arising in the credit side of accounts,

and analyse such economic transactions in the corresponding debit accounts. - Closely combine the recording of economic transactions carried out chronologically

and the systematization of such transactions based on their economic content (based on accounts).

- Widely combine the genal accounting and detailed accounting on the same book of account and in the same course of recording.

- Use books on which correspondinmg accounts, economic or financial management items are already printed, and prepare financial statements.

The accounting form of Journal-Documents shall include the following books of account: - Documentary journal;- List; - Ledger; - Detailed accounting books or cards.

59

Accounting documents

Cash-book

REGISTRATION DOCUMENTS

General listing of accounting

documents of the same type

Sæ, thÎ kÕ to¸n chi tiÕt

Detailed accounting books or

cards

Detailed listing

Ledger

Register of registration documents

Balance sheet


4.2/ Order of the recording on accounting books which are in the form of Journal-Document (Table No.4)

(1). Every day, based on accounting documents which have been examined, the accountant shall take data from those accounting documents and directly record them on the Journal-Document or on the relevant list or detailed book.

With respect to production or business costs which are incurred many times or which are alloccated, original documents shall at first be gathered and classified in tables of allocation, afterward the accountant shall take resulting data from tables of allocation and record them on the relevant lists and Journal-Documnet.

With respect to Journals-Documents on which the recording is based on the total data

on the lists or detailed books, the accountant shall, in the late month, transfer such data to the Journals-Documents.

(2). In the late month, the accountant shall close books, add up data on Journals-Documents, examine and collate data on Journals-Documents with those on detailed accounting books or cards, and on the relavant detailed list, and shall take the total data from Journals-Documents to directly enter them up in the ledager.

With respect to accounting documents related to detailed accounting books or cards, data on such documents shall be directly recorded on relevant books or cards. In the late month, the accountant shall add up data on detailed accounting books or cards and, based on such detailed accounting books or cards, prepare the detailed listings for each account, which are used to collate with the ledger.

The total data in the ledger and a number of detailed items in the Journal-Document, in the list and the detailed listings shall be used to make out financial statements.

Table No.4 ORDER OF THE RECORDING ON ACCOUNTING BOOKS WHICH ARE IN THE ACCOUNTING FORM

OF JOURNAL-DOCUMENT

60

Accounting documents and tables of allocation

List JOURNAL-DOCUMENT

NHẬT KÝ

Detailed accounting books or cards

Detailed listing Ledger


Note;

Record daily Rcord in the late month Collation, examination

5- Form of accounting on computer

5.1- Basic characteristics of the computer accounting form Basic characteristics of the computer accounting form are that the accounting work is

done based on an accounting software on computer. The accounting software is designed in the form of one of the four accounting forms, or in the form of a combination of the above accounting forms. The accounting sofware shall not display fully the process of recording on accounting books, but have to be capable of printing out full accounting books and financial statements as regulated.

Kinds of book of the computer accounting form:

An accounting software designed in whichever accounting form shall have that accounting form’s books which are not completely like accounting books in which entries are made by hand

5.2- Order of the recording of accounting books wich are in the computer accounting form (Table No.5)

(1) Every day, the accountant shall, based on accounting documents or the general listing of accounting documents of the same type, which have been examined and are used as a basis for making entries in accounting books, determine debit accounts and credit accounts to input data in the computer, based on tables beforehand designed in the accounting software.

According to the process of the accounting software, information shall automatically be input in the general accounting books (the ledger or the Journal-Ledger...) and in relevant detailed accounting books or cards.

(2) In the late month (or at any necessary time), the accountant shall perform the task of closing books (adding up data in books) and preparing financial statements. The collation of general data and detailed data shall be carried out automatically and ensured to be always accurate and truthful in accordance with information input in the period. The accountant can examine and collate data on accounting books with those on financial statements after such accounting books and financial statements have been printed out.

The accountant shall manipulate to print out financial statements as regulated.

At the end of a month or a year, general accounting books and detailed accounting books shall be printed out and bound in books, and the accountant shall carry out legal procedures in accordance with the regulations on accounting books in which entries are made by hand.

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Table No.5ORDER OF THE RECORDING ON ACCOUNTING BOOKS WHICH ARE IN

THE COMPUTER ACCOUNTING FORM

Note: Input daily data Print out books and reports at the end of month, year

Collation, examination

III- LIST OF ACCOUNTING BOOKS APPLICABLE TO ENTERPRISES

No Name of booksSerial

number

Accounting form

General journal

Journal- Ledger

Registration documents

Journal- Document

1 2 3 4 5 6 7

01 Journal-Ledger S01-DN - x - -

02 Registration documents S02a-DN - - X -

03 Register of registration documents S02b-DN - - X -

04 Ledger (used for the form of registration documents)

S02c1-DN

S02c2-DN

- - x

X

-

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ACCOUNTING BOOKS

- General accounting books

- Detailed accounting books

ACCOUNTING DOCUMENTS

BẢNG TỔNG HỢP CHỨNG TỪ KẾ

TOÁN CÙNG LOẠI- Financial statenments - Administration accounting report

ACCOUNTING SOFTWARE

COMPUTER


number

Accounting form

General journal

Journal- Ledger


Journal- Document

1 2 3 4 5 6 7

05 General journal S03a-DN X - - -

06 Cash receipt journal S03a1-DN X - - -

07 Cash payment journal S03a2-DN X - - -

08 Purchase journal S03a3-DN X - - -

09 Sales journal S03a4-DN X - - -

10 Ledger (used for the form of general journal)

S03b-DN X - - -

11 Journal-Document, Kinds of Journal-Document, List

Including: - Journal-Document No.1 to No.10

- List No.1 to No.11

S04-DN

S04a-DN

S04b-DN

-

-

-

-

-

-

-

-

-

x

x

x

12 Ledger (used for the form of Journal-Document)

S05-DN - - - x

13 Balance sheet S06-DN X - x -

14 Cash book S07-DN X x x -

15 Detailed accounting book of cash S07a-DN X x x -

16 Deposit book S08-DN X x x x

17 Detailed books of materials, instruments, products or goods

S10-DN X x x x

18 Detailed listing of materials, instruments, products or goods

S11-DN X x x x

19 Stock card (Stock book) S12-DN X x x x

20 Book of fixed assets S21-DN X x x x

21 Book for monitoring fixed assets and tools and instruments at the place where they are used

S22-DN X x x x

22 Card of fixed assets S23-DN X x x x

23 Detailed book of payments to the purchaser (the seller)

S31-DN X x x x

24 Detailed book of payments to the purchaser (the seller) in foreign currency

S32-DN X x x x

25 Book for monitoring payments in foreign currency

S33-DN X x x x

26 Detailed book of loans S34-DN X x x x

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number

Accounting form

General journal

Journal- Ledger


Journal- Document

1 2 3 4 5 6 7

27 Detailed book of sales S35-DN X x x x

28 Book of production and business costs S36-DN X x x x

29 Card of production costs of products or services

S37-DN X x x x

30 Detailed book of accounts S38-DN X x x x

31 Detailed accounting book for monitoring inverstments in associated companies

S41-DN X x x x

32 Book for monitoring differences allocated upon purchase of investments in associated companies

S42-DN X x x x

33 Detailed book of issued shares S43-DN X x x x

34 Detaiiled book of fund shares S44-DN X x x x

35 Detailed book of securities investments S45-DN X x x x

36 Detailed book for monitoring source of trading capital

S51-DN X x x x

37 Books of construction expenses S52-DN X x x x

38 Book for monitoring VAT S61-DN X x x x

39 Detailed of of VAT refunded S62-DN X x x x

40 Detailed book of VAT exempted or reduced

S63-DN X x x x

Other detailed book according to the enterprise’s management requirements

The order and method of making entries in accounting books, and the relation between accounting books in each accounting form are stipulated in the above Section II “Accounting Forms”.

* * *

64

15-06 issuance of the business accounting system.english

Documents

system of accounting

accounting treatment

syustem of accounting

dependent cost accounting

business chracteristics

financial statement

business activities

vat circular