What are the periods for preparing financial statements of enterprises? Subjects of application, responsibility for preparation and signature on Financial Statements?

How are the financial reporting periods of businesses regulated? What are the applicable subjects and responsibilities for preparation and signature on the Financial Report?

1. Purpose of financial reports?

In Clause 1, Article 3 of the Accounting Law 2015, financial reports are explained as the economic and financial information system of the accounting unit presented according to the form prescribed in accounting standards and accounting regimes.

The purpose of financial reports in enterprises is stipulated in Article 97 of the Circular. 200/2014/TT-BTC, specifically as follows:

– Financial reports are used to provide information about the financial situation, business situation and cash flows of an enterprise, meeting the management requirements of business owners, State agencies and the useful needs of users in making economic decisions. Financial reports must provide information of a business about:

+ Assets;

+ Liabilities;

+ Equity;

+ Revenue, other income, production and business costs and other expenses;

+ Profit, loss and distribution dividing business results;

+ Cash flows.

– In addition to this information, the enterprise must also provide other information in the “Notes to the Financial Statements” to further explain the indicators reflected in the general financial statements and the accounting policies applied to record arising economic transactions, prepare and present financial statements. main.

2. Periods of preparing financial statements of enterprises?

Pursuant to Article 98 of Circular 200/2014/TT-BTC, regulations on periods of preparation of financial statements of enterprises are as follows:

– Period of preparation of annual financial statements: Enterprises must prepare annual financial statements according to the provisions of the Accounting Law.

– Period for preparing mid-year financial statements: Mid-year financial reports include quarterly financial reports (including the fourth quarter) and semi-annual financial reports.

– Other periods for preparing financial statements

+ Enterprises can prepare financial statements according to other accounting periods (such as weekly, monthly, 6 months, 9 months…) as required by law, the parent company or the owner.

+ An accounting unit that is divided, separated, consolidated, merged, converted in ownership form, dissolved, terminated operations, or becomes bankrupt must prepare a Financial Report at the time of division, separation, consolidation, merger, conversion of ownership form, dissolution, termination of operations, or bankruptcy.

– Determine the summary year of financial statements of financial and statistical agencies

When synthesizing statistics, in case of receiving financial reports of enterprises with fiscal years other than the calendar year, State management agencies shall follow the principles:

+ In case an enterprise’s annual financial report begins on April 1 and ends on March 31 of each year, the data on the financial report will be statistically aggregated into the data of the immediately preceding year;

+ In case an enterprise’s annual financial report begins on July 1 and ends on June 30 every year, the financial report used to synthesize statistics is the semi-annual financial report;

+ In case an enterprise’s annual financial report begins on October 1 and ends on September 30 every year, the data on the financial report will be statistically aggregated into the next year’s data.

3. Subjects of application, responsibility for preparation and signature on Financial Statements?

Pursuant to Article 99 of Circular 200/2014/TT-BTC, regulations on applicable subjects, responsibility for preparation and signature on financial statements of enterprises are as follows:

– Subjects preparing annual financial statements:

The annual financial reporting system is applied to all types of businesses across industries and economic sectors. Annual financial reports must be prepared in full form.

– Subjects preparing mid-year financial reports (Quarterly financial reports and semi-annual financial reports):

+ Enterprises with 100% charter capital or controlling shares owned by the State and entities with public interests must prepare interim financial reports;

+ Other enterprises not subject to point a above are encouraged to prepare interim financial statements (but not required).

+ Interim financial statements are prepared in full or summarized form. The owner of the unit decides on the choice of full or summary format for the interim financial statements of his/her unit if it is not contrary to the provisions of law that the unit is subject to regulation.

– Superior enterprises with affiliated units without legal status must prepare their own financial statements and a general financial report. The consolidated financial report is prepared on the basis of including data of all affiliated units without legal status and ensuring that all data arising from internal transactions between superior and subordinate units, and between subordinate units, are excluded.

Subordinate units without legal status must prepare their financial statements in accordance with the reporting period of the superior unit to serve the synthesis. Financial reports of superior units and inspection by State management agencies.

– The preparation and presentation of financial statements of enterprises in special industries comply with the provisions of the accounting regime issued or approved by the Ministry of Finance for the industry.

– The preparation, presentation and disclosure of annual consolidated financial statements and mid-year consolidated financial statements comply with the provisions of law. Law on Consolidated Financial Reports.

– Signing of Financial Reports must be done in accordance with the Accounting Law. For units that do not prepare their own financial statements but hire accounting services to prepare financial statements, practitioners from accounting service units must sign and clearly state the practicing certificate number, name and address of the accounting service provider. Individual practitioners must clearly state their practicing certificate number.