Decision 15 (e)

MINISTRY OF FINANCE Socialist Republic of Vietnam Independence – Freedom - Happiness

Ref: 15/2006/QD-BTC Hanoi, 20 March 2006

DECISIONON THE PROMULGATION OF CORPORATE ACCOUNTING SYSTEM

THE FINANCE MINISTER

Basing on

Law on Accounting 03/2003/QH11 and Decree 129/2004/ND-CP issued by the Government on 17 June 2003 and 31 May 2004, respectively, providing details and guidelines on the implementation of certain articles of the Law on Accounting in business activities,

Decree 77/2003/ND-CP issued by the Government on 1 July 2003 specifying the functions, duties, powers and organisational structure of the MoF,

Considering

The proposition by the Director-General of the Accounting Policy Department and the Chief of the Secretariat of the MoF,

hereby decides

Article 1–The Corporate Accounting System (the “CAS”) shall be applicable to the enterprises of all industries and all economic sectors nationwide. The CAS consists of 4 parts:

First Part–Chart of Accounts,Second Part–Financial Statements,Third Part–Supporting Documentation System,Fourth Part–Books of Account.

Article 2–The concerned enterprises, companies and general corporations, basing on the CAS, shall study, concretize and develop their accounting policies, and their specific regulations on the elements and methods which are appropriate to the industry business conditions and management requirements by industries and economic sectors. In case of any amendments of Tier-1 and Tier-2 Accounts, or of the financial statements, they shall be agreed by the MoF in writing.

To the extent of the requirements of the CAS and guidance documents set forth by the entities of higher authority, the concerned enterprises shall adopt the listing of accounts, supporting documentation, and books of account and select the books of account that suit their business conditions, management requirements and accounting competence.

Article 3–This Decision shall become effective after 15 days since the date of its publication on the Public Gazette. For the regulations on the “Preparation of the Interim Consolidated Financial Statements”, Item I/A of Part Two shall be enacted as from 2008.

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This Decision shall supersede Decision 1141 TC/QD/CDKT of 1 Novermber 1995 by the Finance Minister promulgating the “Corporate Accounting System”, Decision 167/2000/QD-BTC issued by the Finance Minister issuing the “Corporate Financial Reporting System”, Circular 10TC/CDKT issued on 20 March 1997 by the MoF “Guidelines on the amendment of the CAS”, Circular 33/1998/TT-BT of 17 March 1998 regarding the “Guidelines on the providing for inventories, doubtful accounts and diminution in value of securities at the enterprises”, Circular 77/1998/TT-BTC of 6 June 1998 regarding the “Guidelines on the Exchange Rates for Converting Foreign Currency Denominated Amounts into VND in Accounting Treatments at the Enterprises”, Circular 100/1998/TT-BTC of 15 July 1998 concerning the “Guidelines on Accounting Treatments for VAT and EIT purposes”, Circular 180/1998/TT-BTC of 26 December 1998 regarding the “Guidelines on the Supplemented Accounting Treatments for VAT”, Circular 186/1998/TT-BTC of 28 December 1998 concerning the “Guidelines on Accounting Treatments for Export/Import Duties and Special Sales Tax”, Circular 107/1999/TT-BTC of 1 September 1999 regarding the “Guidelines on the Accounting Treatments for VAT Levied on Finance Leases”, Circular 120/1999/TT-BTC of 7 October 1999 regarding the “Guidelines on the Supplemented Corporate Accounting System”, and Circular 54/2000/TT-BTC of 7 June 2000 concerning the “Guidelines on the Accounting Treatments for Merchandise Made by Business Entities Which Is Sold to Dependently-Accounting Subsidiaries Located at Other Provinces or Cities and Sold Via Commission Agents at the Right Prices”.

Article 4Those provisions that are stipulated in the Decisions on the issuance of Accounting Standard Standards and Circulars providing guidelines on the application of the standards from Series 1 to 5 and that do not contradict the requirements as stated in this Decision shall remain effective.

Article 5The concerned Ministries, Ministry-equivalent bodies, the People’s Committees (PC) of the provinces and cities under the Central government shall be responsible for directing and executing the “Corporate Accounting System” issued under this Decision at the entities of their industries or fields, or in the areas under their control.

Article 6The Director of the Accounting and Auditing Policy Department, the Chief Secretary of the MOF, the Director of the Department of Enterprise Finance, the General Director of the Department of Taxation, and the leaders of the concerned entities under the MOF’s umbrella shall be responsible for providing guidelines, monitoring, and executing this Decision.

For the Finance Minister

(signed)

Tran Van Ta

Deputy Minister

Addressees:

- Prime Minister and Deputy PMs,- Central Communist Party’s Office,- National Assembly’s Office,- President’s Office,- Cabinet Office,- Relevant Ministries, Ministry-equivalent Bodies, and Bodies under Government’s control,- People’s Supreme Court,- People’s Court of Investigation,- People’s Committees; Finance & Pricing Departments; Taxation Departments of Provinces and

Cities under central government,- Document Monitoring Department (Ministry of Justice),

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- Vietnam Association of Accountants and Auditors (VAA), - Vietnam Association of Certified Public Accountants (VACPA),- Accountancy and audit firms,- Public Gazzette,- Authorities under the MoF’s control,- Legislation Department (MoF), and - MoF Office and Accounting and Auditing Policy Department (for filing)

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PART ONECHART OF ACCOUNTS

I. GENERAL

1. The accounts are used to classify and systematise all economic and financial transactions by their nature.

2. The chart of accounts includes tier-1 and tier-2 accounts, accounts included in the B/S, and off-balance-sheet accounts as specified in this system.

3. Where the concerned enterprises, companies, and General Corporations (GC) shall add tier-1 and tier-2 accounts or revise tier-1 and tier-2 accounts in terms of account title, account code and accounting treatments for specialised transactions, they shall obtain written approvals from the MOF prior to execution.

4. The concerned enterprises, companies, and GCs may open additional tier-2 and tier-3 accounts for those accounts that do not these types of account in the Chart of Accounts as stated in this Decision to meet their managerial requirements without seeking the MOF’s approval.

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II. CHART OF ACCOUNTS

ACCOUNT CODES

ACCOUNT TITLES NOTESNo Tier 1 Tier 2

1 2 3 4 5

ACCOUNT CATEGORY 1CURRENT ASSETS

01 111 Cash on hand

1111 Vietnam dong

1112 Foreign currency (ies)

1113 Gold, silver, precious metals, gemstones

02 112 Cash in banks Reported of details by banks

1121 Vietnam dong


1123 Gold, silver, precious metals, gemstones

03 113 Cash in transit

1131 Vietnam dong


04 121 Short-term investments

1211 Shares

1212 Bonds, treasury bills, Notes

05 128 Other short-term investments

1281 Term deposits

1288 Other short-term investments

06 129 Provision for diminution in value of short-term investments

07 131 Trade receivablesReported of details by entities

08 133 Value Added Tax (VAT) deductible

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ACCOUNT CODES

ACCOUNT TITLES NOTES 1331 Deductible VAT for goods and services

1332 Deductible VAT for F/As

09 136 Related party receivables

1361 Equity investments subsidiaries

1368 Other related party receivables

10 138 Other receivables

1381 Shortage of assets awaiting resolution

1385 Equitisation-related receivables

1388 Other receivables

11 139 Provision for doubful receivables

12 141 AdvancesReported of details by entities

13 142 Short-term prepaid expenses

14 144 Short-term deposits, mortgages and collaterals

15 151 Goods in transit

16 152 Raw materials

Reported of details by managerial requirements

17 153 Tools and supplies

18 154 Work in progress

19 155 Finished goods

20 156 Merchandise inventories

1561 Cost of purchase

1562 Purchasing costs

1567 Held-for-sale properties

21 157 Goods on consignment

22 158 Bonded warehouse goods

23 159 Provision for obsolete inventories

24 161 Expenditure from subsidies of state budget

1611 Prior year budget

1612 Current year budget

ACCOUNT CATEGORY 2NON-CURRENT ASSETS

25 211 Tangible fixed assets

2111 Buildings and structures

2112 Machinery and equipment

2113 Means of transportation and transmission

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ACCOUNT CODES ACCOUNT TITLES NOTES

2114 Management tools and equipment

2115 Perennial plants, working and productive animals

2118 Other tangible fixed assets

26 212 Finance lease assets

27 213 Intangible assets

2131 Land use rights

2132 Publising rights

2133 Copyrights, patents

2134 Brands

2135 Computer softwares

2136 Licences and franchises

2138 Other tangible assets

28 214 Accumulated depreciation and amortisation

2141 Accumulated depreciation

2142 Accumulated depreciation of finance lease assets

2143 Amortisation of intangible assets

2147 Depreciation of investment properties

29 217 Investment properties

30 221 Investments in subsidiaries

31 222 Investments in joint ventures

32 223 Investments in associates

33 228 Other long-term investments

2281 Shares

2282 Bonds

2288 Other long-term investments

34 229 Provision for diminution in value of long term investments

35 241 Construction in progress

2411 Acquisition of fixed assets

2412 Construction in progress

2413 Overhauls

36 242 Long-term prepaid expenses

37 243 Deferred tax assets

38 244 Long-term deposits

ACCOUNT CATEGORY 3LIABILITIES

39 311 Short-term borrowings

40 315 Current portion of long-term loans

41 331 Trade payables

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42 333 Taxes and statutory obligations

3331 VAT payable

33311 Output VAT

33312 VAT for imported goods

3332 Special Sales Tax

3333 Export, import duties

3334 Enterprise income tax

3335 Personal income tax

3336 Natural resource tax

3337 Property tax, land rentals

3338 Other taxes

3339 Fees, charges and other obligations

43 334 Payables to employees

3341 Payables to employees

3348 Other payables to employees

44 335 Accrued expenses

45 336 Related party payables

46 337 Construction contractor payables based on agreed progress billings

For constructors whose progress billings are made.

47 338 Other payables

3381 Surplus of assets waiting for resolution

3382 Trade union fees

3383 Social insurance

3384 Health insurance

3385 Equitisation-related payables

3386 Short-term deposits, mortgages and collaterals received

3387 Deferred revenues

3388 Other payables

48 341 Long-term borrowings

49 342 Long-term liabilities

50 343 Issued bonds

3431 Par value [par value of bonds]

3432 Discounts [bond discounts]

3433 Premiums [bond premiums]

51 344 Long-term deposits received

52 347 Deferred tax liabilities

53 351 Provisions for severance allowances

54 352 Provisions payable

ACCOUNT CATEGORY 4OWNER’S EQUITY

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55 411 Paid-in capital

4111 Owner's equity

4112 Share premium For JSCs

4118 Other equity

56 412 Asset revaluation differences

57 413 Foreign exchange differences

4131 Foreign exchange revaluation differences at year end

4132Foreign exchange differences arising from construction stage

58 414 Business development and investment funds

59 415 Financial reserves

60 418 Other funds belonging to owner's equity

61 419 Treasury stocks

62 421 Undistributed earnings For JSCs

4211 Prior year undistributed earnings

4212 Current year undistributed earnings

63 431 Bonus & welfare funds

4311 Bonus fund

4312 Welfare fund

4313 Welfare fund forming fixed assets

64 441 Funds for capital expenditureApplicable to SOEs

65 461 Subsidy funds from state budget

Applicable to General Corporations holding these subsidy funds

4611 Prior year

4621 Current year

66 466 Subsidy funds forming F/As

ACCOUNT CATEGORY 5REVENUES

67 511 Revenues from sale of goods and rendering of services

Reported of details by managerial requirements

5111 Revenues from sale of goods

5112 Revenues from sale of finished products

5113 Revenues from rendering of services

5114 Revenues from subsidies

5117 Revenues from sale or operation of investment properties

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ACCOUNT CODES

ACCOUNT TITLES NOTES68 512 Revenues from related party sale of goods

Applicable to related party sale of goods

5121 Revenues from sale of goods

5122 Revenues from sale of finished products

5123 Revenues from rendering of services

69 515 Financial income

70 521 Trade discounts

71 531 Sales returns

72 532 Sales allowances

ACCOUNT CATEGORY 6OPERATING COSTS

73 611 Purchasesto apply periodic method 6111 Purchases of raw materials

6112 Purchases of goods

74 621 Raw material costs

75 622 Direct labour costs

76 623 Costs incurred in use of working machines Applied to constructors

6231 Labour costs

6232 Raw material costs

6233 Costs for production tools

6234 Depreciation charges on working machines

6237 Costs for external services

6238 Other cash costs

77 627 Factory overhead costs

6271 Labour overheads

6272 Auxiliary materials

6273 Costs for production tools

6274 Accumulated depreciation of F/As


6278 Other cash costs

78 631 Manufacturing costs Periodic method

79 632 Cost of goods sold

80 635 Finance expenses

81 641 Selling expenses

6411 Sales staff costs

6412 Raw material and packaging material costs

6413 Costs for tools and consumables

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6414 Depreciation charges

6415 Warranty costs


6418 Other cash expenses

82 642 General and administration expenses

6421 Administration staff costs

6422 Costs for management-related supplies

6423 Costs for office supplies

6424 Depreciation charges

6425 Taxes, fees and charges

6426 Provisions for expenses


6428 Other cash expenses

ACCOUNT CATEGORY 7OTHER INCOME

83 711 Other incomeReported of details by operations

CATEGORY 8: OTHER EXPENSES

84 811 Other expenses Reported of details by operations

85 821 EIT expenses

8211 Current EIT expenses

8212 Deferred EIT expenses

ACCOUNT CATEGORY 9–DETERMINED RESULTS OF OPERATION

86 911 Determined results of operation

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ACCOUNT CODES

ACCOUNT TITLES NOTES

ACCOUNT CATEGORY 0OFF-BALANCE SHEET ACCOUNTS

001 Assets under lease

002 Goods held under trust or for processing

003 Goods held by the entity on consignment

004 Bad debts written off

007 Foreign currencies

008 State funding

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PART TWO FINANCIAL STATEMENTS

I. GENERAL

A. Annual and interim financial statements

1. Purposes

The financial statements are to provide the financial position, state of affairs, and cash flows generated by an enterprise meeting the managerial requirements of its owner, governmental authorities and useful needs of the users in making economic decisions. The financial statements shall provide the enterprise’s information on:

a) Assets,b) Liabilities and Owner’s equity,c) Revenues, other income, operating expenses, and other expenses,d) Gains, loss and sharing of the results of operation,e) Statutory obligations,f) Other assets relating to the accounting entity,g) Cash flows

In addition to this information, the enterprise shall also include the other in the Notes to the Financial Statements to provide additional explanations for the items shown in the general financial statements and for the applicable accounting policies to recognise the transactions and to prepare and present the financial statements.

2. Appliers

The annual financial statements shall be applicable to all forms of enterprise of various industries and economic sectors. For SMEs, they shall also comply with the general provisions included in this part, and the specific regulations and guidelines appropriate to them as stated in the accounting system for SMEs.

The preparation and presentation of the financial statements made by banks and similar financial institutions is additionally stipulated in VAS 22Additional Disclosure of the Financial Statements for Banks and Similar Financial Institutions and in particular documents.

The preparation and presentation of the financial statements made by enteprises in particular industries is in accordance with the accounting system issued by, or approved by, the MOF for circulation.

The parent company and the Group that prepare consolidated financial statements shall comply with the requirements as stated in accounting standard “Consolidated financial statements and accounting for investments in subsidiaries”.

The superior accounting entity which has affiliated accounting entities, or the GC that operates under the non-holding model, i.e. it has no subsidiaries, shall prepare the general financial statements in accordance with the Circular instructing the accounting treatment for VAS 25 “Consolidated financial statements and Accounting for investments in subsidiaries”.

Interim financial statements (quarterly financial statements) shall be applicable to SOEs, listed companies, and other enterprises on preparing interim financial statements willingly.

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3. Corporate financial statements

The system of financial statements includes annual and interim financial statements.

3.1 Annual financial statements

Annual financial statements include: Balance Sheet (B/S) Form B 01 – DN Income Statement (I/S) Form B 02 – DN Cash Flow Statement (CFS) Form B 03 – DN Notes to the Financial Statements Form B 09 – DN

3.2 Interim financial statements

The interim financial statements include full interim financial statements and summarised financial statements.

(1) Full interm financial statements comprise:

Interim B/S (full type) Form B 01a – DN Interim I/S (full type) Form B 02a – DN Interim CFS (full type) Form B 03a – DN Notes to the Selective Financial Statements Form B 09a – DN

(2) Abbreviated interim financial statements include Interim B/S (abbreviated type) Form B 01b – DN Interim I/S (abbreviated type) Form B 02b – DN Interim CFS (abbreviated type) Form B 03b – DN Notes to the Selective Financial Statements Form B 09a – DN

4. Responsibilities for preparation and presentation of the financial statements

(1) All enterprises in various industries and economic sectors shall prepare and present annual financial statements.

In addition to their own annual financial statements, the companies, and GCs having affiliated accounting entities, shall prepare general financial statements or consolidated financial statements at the year-end based on their affiliated accounting entities.

(2) For SOEs and listed companies, they shall prepare full interim financial statements.

Other enterprises, if preparing the interim financial statements willingly, are allowed to choose full or summarised interim financial statements.

For State-owned GCs and SOEs holding affiliated accounting entities shall prepare interim general financial statements or consolidated financial statements (*).

Parent companies and groups shall prepare interim consolidated financial statements (*) and year-end consolidated financial statements per Decree 129/2004/ND-CP issued by the Government on 31 May 2004. In addition, they shall prepare consolidated financial statements after business combinations in accordance with VAS 11–Business Combinations.

[(*) The preparation of the interim consolidated financial statements shall be exercised since 2008]

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5. Requirements for preparation and presentation of the financial statements

The preparation and presentation of the financial statements shall comply with the requirements of VAS 21–Presentation of the financial statements, including: True and fair view, Selecting and adopting the accounting policies in compliance with the requirements of individual

accounting standards to assure provision of information that matches the needs of making economic decisions and of reliable information, when:

Giving a true and fair view of the financial position, state of affairs and results of operation,

Reflecting not only the exact economic nature of transactions and events, and their legality,

Presenting the information on an objective and unbiassed basis, Complying with the prudence principle, and Presenting all material aspects.

The preparation of the financial statements shall be based on the figures after cut-off. The financial statements shall be properly prepared in terms of their elements and method and consistent presentation shall be required for accounting periods. The financial statements shall be signed and/or sealed with the entity’s chop by the preparer, chief accountant and representative at law.

6. Principles for presentation and preparation of financial statements

The preparation and presentation of the financial statements shall comply with six (6) principles as stipulated in VAS 21Presentation of the financial statements: Going concern, accrual basis, materiality, concentration, compensating, and comparableness.

The notes to the financial statements shall be based on the requirements for including information in the financial statements. Material information shall be explained to help users understand the financial status of the enterprise correctly.

7. Accounting periods

7.1 The financial year. Enterprises shall prepare the financial statements by fiscal years being calendar years, or being 12 months inclusive after notification made to tax authorities. For special cases, they are allowed to changing the B/S date which leads to the preparation of the financial statements for the first fiscal year or the last fiscal year which may be longer or shorter than 12 months but which shall not exceed 15 months.

7.2 nterim accounting periods

An interim accounting period is each quarter of the fiscal year, excluding Quarter 4.

7.3 Other accounting periods

The enterprises may prepare the financial statements by other accounting periods, e.g. by weeks, months, six months, nine months, etc.) in accordance with statutory requirements and parent companies’ or owners’ requirements.

Spinned-off, demerged, merged, acquired, divested, ceased, or bankrupted accounting entities shall prepare the financial statements at the date of such events.

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8. Timing for filing financial statements

8.1 SOEs

a) Timing for quarterly financial statements

The accounting entities shall file quarterly financial statements within 20 days, at the latest, since the end of the accounting quarters. For accounting entities being state-owned GCs, this shall be 45 days, at the latest.

The accounting entities affiliated to state-owned GCs shall file quarterly financial statements to them within the timing set by the GCs.

b) Timing for filing annual financial statements The accounting entities shall file annual financial statements within 30 days, at the latest, since

the end of the fiscal years. For accounting entities being state-owned GCs, this shall be 90 days, at the latest.

Accounting entities to affiliated to GCs shall prepare annual financial statements for GCs by the timing set by themselves.

8.2 For other types of enterprise

a) The accounting entities being private enterprises and partnerships shall file anuual financial statements within 30 days, at the latest, since the end of the fiscal years. For other accounting entities, the timing for filing shall be 90 days at the latest.

b) Affiliated accounting entities shall file the annual financial statements to their superior ones as per the timing set out by those entities.

9. Recipients of the financial statements

Types of enterprise (4)

Accounting periods

Recipients

Financial regulators

(1)

Tax authoritie

s(2)

Statistical Offices

Superior entities (3)

Business registries

1. State-owned enterprises (SOEs)

Quarterly, annually

X X X X X

2. Foreign invested enterprises

Annually X X X X X

3. Others Annually X X X X

(1) State-owned enterprises which locate in provinces or cities and which are directly under central government shall submit their financial statements to the financial regulators of those provinces or cities. For central SOEs, they shall also file the financial statements to the MOF (the Finance Department for Enterprises).

- For such SOEs as commercial banks, lottery agencies, financial institutions, insurance companies and securities companies, they shall also file their accounts to the MOF (Finance and Banking Department). As for securities companies, they shall also file their accounts to the State Securities Commission (SSC).

(2) The concerned enterprises shall file their accounts to local tax authorities. For GCs, they shall also file their accounts to the MOF (General Department of Taxation).

(3) For those enterprises held by superior accounting entities, they shall file their accounts to those entities under their requirements.

(4) For those enterprises which are required by law to have their financial statements audited before filing of the accounts. Their audited financial statements shall be attached with the

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auditors’ report on filing the accounts to concerned regulators and to their superior accounting entities.

B. Consolidated and general financial statement

1. Consolidated financial statements

Parent companies and groups are the entities which are responsible for preparing the financial statements to summarise and disclose their assets, liabilities and owner’s equity at the date of financial statements; state of affairs and results of operation for the reporting period in an overall and comprehensive manner.

The consolidated financial statements include 4 templates of financial statement:- Consolidated B/S Form B 01 – DN/HN- Consolidated I/S Form B 02 – DN/HN- Consolidated CFS Form B 03 – DN/HN- Notes to the Consolidated Financial Statements Form B 09 – DN/HN

The elements; methods of calculation; presentation of the required items; and timing for preparing, filing and disclosing the financial statements shall comply with the relevant Guidance Circular for VAS 21Presentation of the Financial Statements and VAS 25Consolidated Financial Statements and shall conform to the relevant Guidance Circular for VAS 11 Business Combinations.

2. General financial statements

Those superior accounting entities that have their affiliated accounting entities or those State GCs which are established and operate under non-holding model, i.e. one without subsidiaries, shall prepare the general financial statements to summarise and disclose their assets, liabilities and owner’s equity at the date of financial statements; state of affairs and results of operation for the reporting period in an overall and comprehensive manner for the entity as a whole.

The general financial statements are comprised of 4 templates of financial statement:

General B/S Form B01-DN General I/S Form B02-DN General CFS Form B03-DN Notes to the General Financial Statements Form B09-DN

The elements; methods of calculation; presentation of the required items; and timing for preparing, filing and disclosing the general financial statements shall comply with the relevant Guidance Circular for VAS 21Presentation of the Financial Statements and VAS 25Consolidated Financial Statements and Accounting for Investments in Subsidiaries. and shall conform to the relevant Guidance Circular for VAS 11 Business Combinations.

For those parent companies and groups that prepare both general financial statements and consolidated financial statements, they shall prepare the former first (summarising by lines of businessBusiness Operations or Manufacturing/Production Operations; or capital expenditure or public investments), and then the general financial statements or consolidated financial statements between lines of business. During the course of the preparation of the general financial statements between business entities, provisos on the consolidation of the financial statements may have been executed. For those entities which prepare both general financial statements and consolidated financial statements, they shall comply with the stipulations on the preparation of general financial statements and consolidated financial statements.

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II. LISTING AND TEMPLATES OF FINANCIAL STATEMENT

A. Listing and templates of annual financial statements include:

- B/S Form B 01 – DN- I/S Form B 02 – DN- CFS Form B 03 – DN- Notes for the Financial Statements Form B 09 – DN

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1. Balance Sheet

Reporting entity: … Form B 01 - DN

Address: … (issued per Decision 15/2006/QD-BTC of 20 March 2006 by the Finance Minister)

BALANCE SHEET

as at [dd] [mm] [yy]

Currency:

ASSETS CodesNotes Ending

balance(3)

Beginning balance

(3)

1 2 3 4 5A. CURRENT ASSETS (100 = 110 + 120 + 130 + 140 + 150)

100

I. Cash and cash equivalents 1101. Cash 111 V.012. Cash equivalents 112

II. Short-term investments 120 V.021. Short-term securities 1212. Provision for short-term investments (*)

(2)129 (…) (…)

III. Accounts receivable 1301. Trade receivables 1312. Advances to suppliers 1323. Related party receivables 1334. Construction contractor receivables

based on agreed progress billings134

5. Other receivables 135 V.036. Provision for doubtful debts (*) 139 (…) (…)

IV. Inventories 1401. Inventories 141 V.042. Provision for obsolete inventories (*) 149 (…) (…)

V. Other current assets 1501. Short-term prepaid expenses 1512. VAT deductibles 1523. Taxes and statutory obligations 154 V.054. Other current assets 158

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Currency:


balance(3)

Beginning

balance(3)

1 2 3 4 5B. NON-CURRENT ASSETS (200 = 210 + 220 +

240 + 250 + 260) 200

I. Long-term receivables 2101. Long-term receivables 2112. Investments in subsidiaries 2123. Long-term related party receivables 213 V.064. Other long-term receivables 218 V.07 (…) (…)5. Provisions for long-term receivables 219

II. Fixed assets 2201. Tangible fixed assets 221 V.08

Cost 222Accumulated depreciation (*) 223 (…) (…)

2. Finance leases 224 V.09Cost 225Accumulated depreciation (*) 226

3. Intangible fixed assets 227 V.10Cost 228Accumulated amortisation (*) 229 (…) (…)

4. Construction in progress 230 V.11

III. Investment properties 240 V.12Cost 241Accumulated depreciation (*) 242 (…) (…)

IV. Long-term investments 2501. Investments in subsidiaries 2512. Investments in joint-ventures 2523. Other long-term investments 258 V.134. Provision for long-term investments (*) 259 (…) (…)

V. Other non-current assets 2601. Long-term prepaid expenses 261 V.142. Deferred tax assets 262 V.213. Other non-current assets 268

TOTAL ASSETS (270 = 100 + 200) 270

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Currency:

RESOURCES Codes

Notes Ending balance

(3)

Beginning balance

(3)

1 2 3 4 5A. LIABILITIES (300 = 310 + 320 + 330) 300

I. Current liabilities 3101. Short-term loans 311 V.152. Trade payables 3123. Advances from customers 3134. Statutory obligations 314 V.165. Payables to employees 3156. Accrued expenses 316 V.177. Related-party payables 3178. Construction contractor payables based

on agreed progress billings 318

9. Other payables 319 V.1810. Provisions for short-term payables 320

II. Long-term liabilities 3301. Long-term payables 3312. Other long-term liabilities 332 V.193. Other long-term payables 3334. Long-term loans 334 V.205. Deferred tax liabilities 335 V.216. Provisions for severance allowances 3367. Provisions for long-term payables 337

B. OWNER’S EQUITY (400 = 410 + 430) 400

I. Capital 410 V.221. Contributed capital 4112. Share premiums 4123. Other capital belonging to owner’s

equity 413

4. Treasury stocks (*) 414 (…) (…)5. Asset revaluation differences 4156. Business investment and development

fund416

7. Financial reserve fund 4178. Undistributed earnings 4189. Other funds belonging to owner’s equity 41910. Undistributed earnings 42011. Funds for capital expenditure 421

II. Other capital, funds 4301. Bonus and welfare funds 4312. Funds 432 V.233. Funds forming fixed assets 433

TOTAL LIABILITIES AND OWNER’S EQUITY 440

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OFF BALANCE SHEET ITEMS

Currency:

ITEMS Notes Ending balance

(3)

Beginning balance

(3)

1. Assets under lease 242. Goods held under trust or for processing3. Goods held by the company on consignment4. Bad debts written off5. Foreign currencies 6. State funding

Prepared on [dd] [mm] [yy]

Preparer Chief Accountant Managing Director

(signature & fullname) (signature & fullname) (signature, fullname & seal)

NB:

(1) Those items without figures may not be presented but shall not be re-numbered of items and “Codes”.(2) Those figures in items marked with (*) are written in negatives and in parantheses ().(3) For enterprises whose fiscal year is calendar year (X), the “Ending balance” column may be written as “31.12.X” and “Beginning balance” as “01.01.X”.

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2. Income Statement



INCOME STATEMENTfor year …

Currency:

ITEMS Codes Notes Current year Previous year

1 2 3 4 51. Revenues from sale of goods and rendering of services

01 VI.25

2. Less 02

3. Net revenues from sale of goods and rendering of services (10 = 01 – 02)

10

4. Cost of goods sold 11 VI.27

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

20

6. Income from financial activities 21 VI.26

7. Expenses from financial activities 22 VI.28In which: Interest expenses 23

8. Selling expenses 24

9. General & administration expenses 25

10. Operating profit [30 = 20 + (21-22) – (24+25)]

30

11. Other income 31

12. Other expenses 32

13. Net other income [40 = 31 –32] 40

14. Accounting profit before tax (50 = 30 + 40)

50

15. Current Enterprise Income Tax expenses

51 VI.30

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ITEMS Codes Notes Current year Previous year

16. Deferred Enterprise Income Tax 52 VI.30

17. Net profit after tax (60 = 50 – 51 – 52) 60

18. Basic earnings per share (*) 70




NB: (*) This item is applicable to joint stock companies (JSC).

24

3. Cash Flow Statement



CASH FLOW STATEMENT(as per the Direct Method) (*)

For …. [year]

Currency:

ITEMSCodes Notes Current

yearPrevious

year

I. CASH FLOWS FROM OPERATING ACTIVITIES1. Revenues from sale of goods and rendering of

services 01

2. Payments for goods/services provider 023. Payments for employees 034. Interest paid 045. Enterprise income tax paid 056. Other cash inflows from operating activities 067. Other cash outflows from operating activities 07

Net cash inflows (outflows) from operating activities 20

II. CASH FLOWS FROM INVESTING ACTIVITIES1. Purchase and construction of fixed assets and other

long-term assets21

2. Proceeds from disposals of fixed assets and other long-term assets

22

3. Loans to other entities and payments for purchase of debt instruments of other entities

23

4. Collections from borrowers and proceeds from sale of debt instruments of other entities

24

5. Payments for investments in other entities 256. Proceeds from sales of investments in other entities 267. Interest and dividends received 27

Net cash inflows (outflows) from investing activities 30

III. CASH FLOWS FROM FINANCING ACTIVITIES 1. Capital contribution and issuance of shares 312. Capital redemption 323. Long- and short-term borrowings 334. Loan repayment 345. Finance lease principal paid 356. Dividends paid 36

Net cash inflows (outflows) from financing activities 40

25

Currency:


yearPrevious

year

Net cash inflows (outflows) (50 = 20+30+40) 50

Cash and cash equivalents at the beginning of the year (period)

60

Impact of exchange rate fluctuation 61

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

70 VII.34




NB:

Those items without figures may not be presented but shall not be re-numbered of items and “Codes”.

26



CASH FLOW STATEMENT(as per the Indirect Method)

For …. [year]

Currency:


yearPrevious

year

I. CASH FLOWS FROM OPERATING ACTIVITIES1. Net profit (loss) before tax 012. Adjustments for:

Depreciation and amortisation 02Provisions 03Unrealised foreign exchange (gains) losses 04(Profits) losses from investing activity and sale of fixed assets

05

Interest expenses 06

3. Operating income (loss) before changes in working capital

08

(Increase) decrease in receivables 09(Increase) decrease in inventory 10Increase (decrease) in payables (excluding interest payable, EIT payables)

11

(Increase) decrease in prepaid expenses 12Interest paid 13Enterprise income tax paid 14Other cash inflows from operating activities 15Other cash outflows from operating activities 16

Net cash inflows (outflows) from operating activities 20

II. CASH FLOWS FROM INVESTING ACTIVITIES1. Purchase and construction of fixed assets and other

long-term assets21

2. Proceeds from disposals of fixed assets and other long-term assets

22

3. Loans to other entities and payments for purchase of debt instruments of other entities

23

4. Collections from borrowers and proceeds from sale of debt instruments of other entities

24

5. Payments for investments in other entities 256. Proceeds from sales of investments in other entities 267. Interest and dividends received 27

Net cash inflows (outflows) from investing activities 30

27

Currency:


yearPrevious

year

III. CASH FLOWS FROM FINANCING ACTIVITIES

1. Capital contribution 312. Capital redemption 323. Borrowings 334. Loan repayment 345. Finance lease principal paid 356. Dividends paid 36

Net cash inflows (outflows) from financing activities 40

Net cash inflows (outflows) (50 = 20+30+40) 50

Cash and cash equivalents at the beginning of the year (period)

60

Impact of exchange rate fluctuation 61

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

70




NB:

(*) Those items without figures may not be presented but shall not be re-numbered of items and “Codes”.

28

4. Notes to the Financial Statements



NOTES TO THE FINANCIAL STATEMENTS

For … [year]

I. Corporate information

1. Forms of ownership

2. Lines of business

3. Business operations

4. The enterprise’s business operations in the financial year that have influence on the financial statements.

II. Accounting period and Reporting Currency

1. The Enterprise’s fiscal year starts on … and ends on …

2. Reporting currency.

III. Accounting policies adopted at the Enterprise

1. Applicable accounting policies

2. Statement of the compliance with the applicable Accounting Standards and Accounting System

3. Registered supporting Documentation system.

IV. Applicable Accounting Policies

1. Principle of recognising cash and cash equivalents

Method of converting other currencies into reporting currency

2. Principle of recognising inventory

- Principle of recognising inventory

- Method of determining value of inventory

- Method of recording inventory

- Method of making provisions for obsolete inventory

3. Principle of recognising of, and calculating depreciation for, F/As and investment properties (IPs)

- Principle of recognising F/As (tangibles, intangibles, and finance lease assets)

29

- Method of calculating depreciation for F/As (tangibles, intangibles, and finance lease assets)

4. Principle of recognising of, and calculating depreciation for, IPs

- Principle of recognising IPs

- Method of calculating depreciation for IPs

5. Principle of recognising financial investments

- Investments in subsidiaries, associates and interests in jointly controlled businesses (JCBs)

- Investments in short-term securities

- Other long- and short-term investments

- Method of making provisions for diminution in value of investments in long- and short-term securities.

6. Method of recognising and capitalising borrowing costs

- Method of recognising borrowing costs

- Capitalisation rate used to determine borrowing costs which have been capitalised for the period

7. Method of recognising and capitalising other expenses

- Prepaid expenses

- Other expenses

- Method of amortising prepaid expenses

- Method and period of amortising trade goodwill

8. Method of recognising accrued expenses

9. Principle and method of recognising accruals

10. Principles of recognising owner’s equity

Principles of recognising:

Owner’s contributed legal capital

Asset revaluation differences

Foreign exchange differences

Undistributed earnings

30

11. Principles and method of recognising revenues

- Sales revenues

- Revenues from rendering services

- Financial income

- Revenues from construction contracts

12. Principles and method of recognising finance expenses

13. Principle and method of current EIT expenses, deferred tax liabilities

14. Currency hedges

15. Other accounting principles and methods

V. Additional information for items disclosed in the B/S and the I/S

Unit:1. Cash and cash equivalents Ending

balanceBeginning

balance Cash on hand Cash in banks Cash in transit Total

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

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

2. Short-term financial investments Ending balance

Beginning balance

Short-term securities Other short-term investments Provisions for diminution in short-term investments Total

3. Other short-term receivables Ending balance

Beginning balance

Receivables from equitisation Receivables from dividends and profits sharedReceivables from employeesOthers

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

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

Total ... ...4. Inventory Ending

balanceBeginning

balanceGoods in transitRaw materials Tools and suppliesWork in processFinished goodsMerchandise goodsGoods on consignmentGoods in bonded warehouseReal estate goods Total

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

...

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

...

31

* Book value of inventory used as mortgage or collateral for loans: …* Reversal of provisions for obsolete inventory for current year: ....* Those cases or events which lead to required further provisions for, or reversal of provisions for, inventory:

5. Statutory obligations Ending balance

Beginning balance

Enterprise income tax over paid ... ........Others Total

... ... ...

... ... ...

6. Long-term related-party receivables Ending balance

Beginning balance

Long-term related-party loans ... ... ...

... ... ...

Other long-term related-party receivables ... ...Total … …

7. Other long-term receivables Ending balance

Beginning balance

Long-term mortgages or collateralsAmounts received in trust Non-interest bearing loansOthers Total

32

8. Increase/decrease in tangible fixed assets

ItemsBuildings

& structures

Machinery &

equipment

Motor vehicles &

transmission means

... Others Total

Cost Beginning balancePurchases for the yearCompleted capital expenditure Other additionsTransferred to investment properties (…) (…) (…) (…) (…) (…)Disposed, sold (…) (…) (…) (…) (…) (…)Other disposals (…) (…) (…) (…) (…) (…)Ending balanceAccumulated depreciationBeginning balanceCharges for the yearTransferred to investment properties (…) (…) (…) (…) (…) (…)Disposed, sold (…) (…) (…) (…) (…) (…)Other disposals (…) (…) (…) (…) (…) (…)Ending balanceNet book value As at beginning of yearAs at yearend

* Ending net book value of tangible fixed assets pledged/mortgaged as loan security:* Ending balance of tangible F/As–fully depreciated but still in use:* Ending balance of tangible F/As–waiting to be disposed:* Future commitments on tangible F/A acquisitions, sales of large value:* Other changes in tangible F/As:

9. Increase/decrease in finance lease assets

ItemsBuildings &

structuresMachinery

& equipment

Motor vehicles &

transmission means

... Other tangible

F/As

Intangible assets

Others

CostBeginning balanceLeases for the yearRepurchased assetsOther increaseReturned assets (...) (...) (...) (...) (...) (...) (...)Other decrease (...) (...) (...) (...) (...) (...) (...)Ending balance Accumulated depreciation Beginning balance Charges for the year Repurchased assets Other increase Returned assets (...) (...) (...) (...) (...) (...) (...)Other decrease (...) (...) (...) (...) (...) (...) (...)Ending balanceNet book value As at beginning of yearAs at year end

- Additional lease rentals shall be recognized as expenses incurred in the year:

33

- Basis for determining additional lease rentals:- Terms of lease extensions or options to repurchase assets:

10. Increase/decrease in intangible fixed assets

ItemsLand

use rights

Publishing rights

Copyrights, patents

... Others Total

Cost Beginning balance Additions Internally generated Increase due to M&As Other increase Disposed, sold (…) (…) (…) (…) (…) (…) Other decrease (…) (…) (…) (…) (…) (…)Ending balanceAccumulated amortisation Beginning balance Charges for the year Other increase Disposed, sold (…) (…) (…) (…) (…) (…) Other decrease (…) (…) (…) (…) (…) (…)Ending balance Net book value As at beginning of year As at year end

* Disclosures and other explanations:

11. Construction in progress

Ending balance

Beginning balance

Construction in progress ... ...of which, large projects: + Project ………….. + Project………….. +…………………….…

... ... ...

... ... ...

34

12. Increase/decrease in investment properties

ItemsBeginning balance

Additions Decreases Ending balance

Cost Land use rights Buildings Buildings and land use rights Infrastructure Accumulated depreciation Land use rights Buildings Buildings and land use rights Infrastructure Net book value Land use rights Buildings Buildings and land use rights Infrastructure

* Disclosures and other explanations:--..............

13. Other long-term investments

Currency:

Ending balance Beginning balance

StocksBondsTreasury bills, term billsLong-term loans Others

TOTAL

14. Long-term prepaid expenses

Currency:


Prepaid operating leaseEstablishment costsResearch costs of large value Costs for development period not meeting recognition criteria for intangible fixed assets…

TOTAL

35

15. Short-term loans and borrowings

Currency:


Short-term loansCurrent portion of long-term loans and debts

TOTAL

16. Statutory obligations

Currency:


VAT payable Special sales taxImport/export dutiesEnterprise income tax Personal income taxNatural resource taxProperty tax and land rentalOther taxesOther fees and obligations

TOTAL

17. Accrued expenses

Currency:


Accrued annual leaveAccrual for fixed asset overhaulCosts incurred during business disruption…

TOTAL

18. Other payables

Currency:


Surplus asset awaiting resolutionTrade union feeSocial insuranceHealth insuranceEquitisation-related payablesDeposits receivedDeferred revenues Others

TOTAL

36

19. Long-term related-party payables

Currency:


Long-term related-party loans … Others

TOTAL

20. Long-term loans and debts

Currency:


a. Long-term loansLoans from banksLoans from other parties Unissued bonds

b. Long-term debtsFinance leasesOther long-term debts

TOTAL

c. Finance lease obligations

Currency:

Term

Current year Previous year

Total lease

paymentsFinance charges

Lease liabilities

Total lease

paymentsFinance charges

Lease liabilities

Less than 1 yearFrom 1-5 yearsMore than 5 years

21. Deferred tax assets and deferred tax liabilities

a. Deferred tax assets

Currency:


Deferred tax assets relating to deductible temporary differences Deferred tax assets relating to unused tax lossesDeferred tax assets relating to unused tax incentives Reversal of deferred tax assets recognised for previous years

Deferred tax assets

37

Unofficial translation

b. Deferred tax liabilities

Currency:


Deferred tax liabilities from temporary taxable differences Deferred tax assets relating to unused tax lossesReversal of deferred tax liabilities recognised for previous years Deferred tax liabilities

22. Owner’s Equity

a. Comparison schedule for changes in Owner’s Equity

Currency:

Contri-buted legal

capital [share

capital]Share

prem-um

Other funds

belonging to

Owner’s Equity

Treasury stocks

Asset revalua-

tion reserves

Foreign exchange difference

s …

Funds for capital

expenditure

A 1 2 3 4 5 6 7 8

Previous year:

Beginning balance

Increase in capital

Profit for the year

Other increase Decrease in

capitalLoss for the yearOther decrease

Ending balance

Current year:

Beginning balance

Increase in capital

Profit for the year

Other increase Decrease in

capitalLoss for the yearOther decrease

Ending balance

38


b. Contributed legal capital [share capital]

Currency:


Assigned by GovernmentContributed by other parties …

TOTAL

* Value of bonds converted into stocks in the year* Number of treasury stocks

c. Capital transactions with owners and distribution of dividends, profits

Currency:


Contributed capital Beginning balanceIncreaseDecreaseEnding balance

Dividends paid/Profits distributed

d. Dividends

Currency:


Dividends declared after balance sheet date Dividends on ordinary sharesDividends on preference shares

Accumulated dividends preference shares not yet recognised

e. Shares

Currency:


Authorized sharesIssued and paid-up shares

Ordinary sharesPreferrence shares

Shares repurchasedOrdinary sharesPreferrence shares

Shares in circulationOrdinary shares

/tt/file_convert/544b3ba4af7959a4438b4fc4/document.docx

39


Preferrence shares

* Total par value of shares in circulation: …

e. The Enterprise’s funds

Currency:


Business investment and development fund Financial reserve fund Other funds belonging to owner’s equity

* Purposes of provisioning for, and use of, the enterprise’s funds

f. Income, expenses, gains or losses are recognised in Owner’s Equity under the applicable accounting standards.

23. Subsidised fund

Currency:


Subsidised fund received in the year Disbursements from subsidised fundEnding balance

24. Assets under operating leases

Currency:


(1) At cost Fixed assets Others

(2) Total minimum future finance lease rentals under uncancellable operating leases Within 1 yearFrom 1 to 5 yearsMore than 5 years


40


VI. Additional information for the items disclosed in the Income Statement

25. Revenues from sales of goods and rendering of services (Code 1)

Currency:


Gross revenues Of which:

Sales of goodsRevenue from services Revenue from construction contracts (applied for construction companies)

Revenue recognised for the year Total accumulated revenue as at the date of the financial statements

26. Deductions from revenues [Less] (Code 2)

Currency:


Trade discountsSales allowancesSales returns VAT payables (under Direct Method)Special Sales TaxExport duties

27. Net revenues from sale of goods and rendering of services (Code 10)

Currency:


Of which:Net revenues from exchange of goods Net revenues from exchange of services

28. Cost of goods sold and services rendered (Code 11)

Currency:


Cost of merchandised soldCost of finished goods sold Cost of services renderedNet book value, disposal costs for sold investment

properties Costs for operation of investment propertiesShortage, deficits of inventoryInefficient production costsProvision for obsolete inventories


41


TOTAL

29. Income from financial activities (Code 21)Currency:


Interest incomeGains from investments in bonds, notes and treasury billsDividends earned, profits distributed Gains from sale of foreign currenciesRealised foreign exchange gainsUnrealised foreign exchange gainsInterest from credit salesOther financial income

TOTAL

30. Expenses from finanical activities (Code 22)Currency:


Loan interestsPayment discounts Loss from disposal/ sale of investmentsLoss from sale of foreign currenciesRealised foreign exchange lossesUnrealised foreign exchange lossProvisions for diminution in value of investments Other financial expenses

TOTAL

31. Current EIT expenses (Code 51)Currency:


EIT expenses charged on current taxable incomeReconciliation of previous-year EIT expenses to current EIT expensesTotal current EIT expenses

TOTAL

32. Deferred EIT expenses (Code 52)

Currency:


Deferred EIT expenses incurred in taxable temporary differences Deferred EIT expenses incurred in reversal of deferred tax assetsIncome from deferred EIT arising from unused tax


42


losses and tax incentives Income from deferred EIT arising from reversal of deferred tax liabilities Total deferred EIT expenses

33. Production and operating costs

Currency:


Raw materialsLabour costsDepreciation expensesExpenses for external servicesOther expenses

TOTAL

VII. Additional disclosures for the items included in the Cash Flow Statement

34. Non-cash transactions that affect the CFS and cash amounts held by the Enterprise but unused

a. Acquisition of assets by accepting liabilities directly related with, or through, finance leases

Currency:


Corporate acquisitions through issued sharesDebts converted into owner’s equity

b. Acquisition and liquidation of subsidiaries or other business units in the reporting period

Currency:


Total value of acquisition or liquidationAmounts paid in cash and cash equivalentsAmounts of cash and cash equivalents actually held in subsidiaries or in other business units that are acquired or liquidatedValue of non-cash and non-cash equivalent assets and liabilities held in subsidiaries or other business units that are acquired or liquidated in the reporting period


43


c. Amounts of, and reasons for, cash and cash equivalents held but unused by the enterprise due to legal limitations or ties to be complied by the enterprise


44


VIII. Other information

1. Contingent liabilities, commitments and other financial information 2. Events after the balance sheet date3. Related-party disclosures4. Disclose assets, revenues, results of operation by business segments (or by lines of

business, by geographical areas) under VAS 28Business Segment Reporting (2)5. Comparative information (changes in disclosures included in previous-year financial

statements).6. Going concern7. Other information



(signature & full name) (signature & full name) (signature, full name & seal)

NB:

(1) Those items without figures may not be presented but shall not be re-numbered of items and “Codes”.

(2) Applicable to listed companies.(3) The enterprise may disclose other information if deeming it necessary to users of financial

statements.

B. LISTING AND TEMPLATES OF INTERIM FINANCIAL STATEMENTS

(1) Listing of interim financial statements (full type)

- Interim B/S (full type) Form B 01aDN- Interim I/S (full type) Form B 02aDN- Interim CFS (full type) Form B 03aDN- Notes to the selective financial statements Form B 09aDN

(2) Templates of financial statements (full type)


45


1. Interim Balance Sheet (full type)



INTERIM BALANCE SHEET

(full type)

For quarter … year …


Currency:


balance(3)

Beginning balance

(3)

1 2 3 4 5A. CURRENT ASSETS (100 = 110 + 120 + 130 + 140 + 150)

100

I. Cash and cash equivalents 1101. Cash 111… (*)

NB: (*) The items and codes in this report are similar to those of Annual B/S Form B 01-DN.





46


2. Interim Income Statement (full type)

Reporting entity: … Form B 02a - DN


INTERIM INCOME STATEMENT(full type)

Quarter … year …

Currency:ITEMS

Codes Notes Quarter … Accumulated from beginning of year to current quarter-end

Current year

Previous year

Current year

Previous year

1 2 3 4 5 6 71. Revenues from sale of goods and rendering of services… (*)

3. Interim Cash Flow Statement (full type)


Address: … (issued per Decision 15/2006/QD-BTC of 20 March

INTERIM CASH FLOW STATEMENT(full type)

(as per Direct Method)


Currency:

ITEMS

Codes Notes Accumulated from beginning of year to current quarter-end

Current year

Previous year

1 2 3 4 5

I. CASH FLOWS FROM OPERATING ACTIVITIES1. Revenues from sale of goods and rendering of services 012. Payments for goods/services provider 02… (*)


47


NB: (*) The items and codes in this report are similar to those of Annual CFS Form B 03-DN






2006 by the Finance Minister)

INTERIM CASH FLOW STATEMENT(full type)

(as per Indirect Method)


Currency:

ITEMS


Current year

Previous year

1 2 3 4 5

I. CASH FLOWS FROM OPERATING ACTIVITIES1. Profit before tax 012. Adjustments for:

- Depreciation and amortisation 02… (*)

NB: (*) The items and codes in this report are similar to those of Annual CFS Form B 03-DN





48


4. Notes to the Selective Financial Statements



2006 by the Finance Minister)

NOTES TO THE SELECTIVE FINANCIAL STATEMENTS

For Quarter … Year …

I. Corporate information

1. Forms of ownership

2. Lines of business

3. Business operations

4. The enterprise’s business operations in the financial year that have influence on the financial statements.

II. Accounting period and Reporting Currency

1. The Enterprise’s fiscal year starts on … and ends on …

2. Reporting currency.

III. Accounting standards and accounting system adopted at the Enterprise

1. Applicable accounting policies

2. Statement of the compliance with the applicable Accounting Standards and Accounting System

3. Registered supporting Documentation system.

IV. Applicable Accounting Policies

The enterprise shall make a statement that atest interim financial statements and annual financial statements are prepared based on similar accounting policies. In case of any changes, they shall be described and their influence shall be disclosed.

V. Significant events or transactions in the interim accounting period

1. Explanations on seasonality or cyclicality of the business operations during the interim accounting period.

2. Disclosures of the nature and amounts of the items affecting assets, liabilities, owner’s equity, net income, or cash flows which are deemed abnormal due to their nature, size or effect.

3. Disclosures of movements in owner’s equity and accumulated balances as at the interim financial statement date as well as respective notes of comparableness of the same accounting period of the latest previous fiscal year.

4. Nature and amounts of changes in accounting estimates reported in previous interim report of current fiscal year, or changes in acounting estimates reported in previous fiscal years if such changes have material effect on current accounting period.


49


5. Disclosures on issuance, repurchase and redemption of debt securities and equities.

6. Paid dividends (total dividends or dividend per share) for ordinary shares and preference shares (applicable to JSCs).

7. Disclosures on revenues and results of operation of segments by lines of business or by geographical areas based on breakdown of segmental reports (applicable to listed companies).

8. Disclosures on key events subsequent to the closing date of interim accounting period which have not been reported in those interim financial statements.

9. Disclosures on changes in contingent liabilities or contingent assets since the closing date of latest fiscal year.

10. Other information.




(3) Listing of interim financial statements (abbreviated type)

- Interim B/S (abbreviated type) Form B 01bDN- Interim I/S (abbreviated type) Form B 02bDN- Interim CFS (abbreviated type) Form B 03bDN- Notes to the Selective Financial Statements Form B 09aDN

(4) Templates of interim financial statements (abbreviated type)


50


1. Interm B/S (abbreviated type)

Reporting entity: … Form B 01b - DN


INTERM BALANCE SHEET


Currency:


balance Beginning

balance

1 2 3 4 5A. CURRENT ASSETS (100 = 110 + 120 + 130 + 140 + 150)

100

I. Cash and cash equivalents 110II. Short-term investments 120III. Accounts receivable 130IV. Inventories 140V. Other current assets 150B. NON-CURRENT ASSETS (200 = 210 + 220 +

240 + 250 + 260) 200

I. Long-term receivables 210II. Fixed assets 220III. Investment properties 240IV. Long-term investments 250V. Other non-current assets 260

TOTAL ASSETS (270 = 100 + 200) 270

Currency:

RESOURCES CodesNotes Ending

balance Beginning

balance

1 2 3 4 5A. LIABILITIES (300 = 310 + 320 + 330) 300

I. Current liabilities 310II. Long-term liabilities 330

B. OWNER’S EQUITY (400 = 410 + 430) 400

I. Capital 410II. Other capital, funds 430

TOTAL LIABILITIES AND OWNER’S EQUITY (440 = 300 + 400)

440


51





2. Interim Income Statement (Abbreviated type)



INTERIM INCOME STATEMENT (abbreviated type)for Quarter … year …

Currency:

ITEMS Codes Notes Quarter … Accumulated from beginning of year to current quarter-end

Current year

Previous year

Current year

Previous year

1 2 3 4 5 6 71. Revenues from sale of goods and rendering of services

01

2. Less 313. Accounting profit before tax 504. Net profit after tax 60





52


3. Interim Cash Flow Statement (abbreviated type)



CASH FLOW STATEMENT(abbreviated type)

For quarter … year …

Currency:

ITEMS


Current year

Previous year

1 2 3 4 5

1. Net cash inflows (outflows) from operating activities

20

2. Net cash inflows (outflows) from investing activities 303. Net cash inflows (outflows) from financing activities 404. Net cash inflows (outflows) … 505. Cash and cash equivalents at the beginning of the period

60

6. Impact of exchange rate fluctuation 617. Cash and cash equivalents at the end of the period (70 = 50+60+61)

62




4. Notes to the Selective Financial Statements (Use Form B09a-DN)


53


PART THREE CORPORATE SUPPORTING DOCUMENTATION SYSTEM

I. General

1. Elements and templates of supporting documentation

The supporting Documentation applicable to enterprises shall comply with the elements and methods of preparing and signing it stipulated in the Law on Accounting and Decree 129/2004/ND-CP issued by the Government on 31 May 2004 in other related legal documents and in the stipulations included in the system as described in this part.

Those enterprises adopting specific economic and financial transactions which are not included in the listing and temples of supporting documentation in this accounting system shall follow the requirements for supporting documentation as stated in separate accounting systems and in other legal documents, or they shall be approved by the MoF regarding this issue.

2. Templates of supporting documentation

The templates of supporting documentation applicable to enterprises include the following:

The supporting documentation issued under this Corporate Supporting Documentation System is comprised of 5 key items:

LabourPayroll Inventory Sales Cash Fixed Assets

The supporting documentation issued under other legal documents (Templates and instructions on preparation shall match those of such issued legal documents.)

3. Preparation of supporting documentation

All the transactions arising in connection with the enterprise shall be prepared supporting documentation. The supporting documentation shall be prepared once for one transaction. Its elements shall include all items and be clear and true with the those of the transaction. The handwriting on the supporting documentation shall be clear and shall not be erased, crossed out or abbreviated.

Amounts written in words shall match those written in figures.

The supporting documentation shall be prepared adequate required number of sheets applied to each piece of supporting documentation. For supporting documentation of multiple sheets, they shall be prepared once for all sheets with the same elements which are computerised, typewritten or carbon-paper written. For special cases in which multiple sheets must be prepared but cannot be written once for all sheets, they may be written in two folds, but consistency in the elements and legality of all sheets shall be assured.


54


4. Signing of supporting documentation

All supporting documentation shall be valid once they comprise of adequate signatures matching the titles required for them. For electronic supporting documentation, they shall include electronic signatures in accordance with the law. All the signatures shall be signed with ball-point pens or pens and shall not be signed in red ink or with pencils. Signatures shall be infixed on each sheet of the supporting documentation for payment purposes. The signature infixed by a person on the supporting documentation shall be consistent with and similar to the required registered signature and where the signature is not registered, the later signature shall match the former one.

At those enterprises where there are no available chief accountants, they shall nominate accountant-in-charge to work with clients, banks and in this case, the signature of the chief accountant shall be replaced by that of the accountant-in-charge of that entity. The accountant-in-charge shall fulfil the duties and powers assigned to the chief accountant.

The signatures of the corporate leader, i.e. the Director-General, Managing Director or the authorised person, and of the chief accountant (or the authorised person) and the company’s seal stamped on the supporting documentation shall match the effective specimen seal and signatures as registered at banks. The accountant’s signature stamped on the supporting documentation shall resemble the one that has been registered with the chief accountant.

The chief accountant (or the authorised person) shall not sign by order of the corporate leader. The authorised person shall not re-authorise the others.

The enterprise shall open a register for specimen signatures of the cashier, warehouse keeper, accountants, chief accountant (and the authorised person), Director-General (and the authorised person). The register for specimen signatures shall be paged, stamped of marginal seal, and monitored by the corporate leader (or by the authorised person) for convenient checking when it is necessary. Each person shall sign three (3) specimen signatures on the register.

The persons who are competent or authorised to sign the supporting documentation shall not do so if not filling the required elements or if filling inadequate elements on those supporting documentation in accordance with the signers’ responsibilities.

The segregated signing on the supporting documentation which is decided by the Director-General (Managing Director) shall comply with the law, and managerial requirements and assure strict control and safegarding of the enterprise’s assets.

5. Steps to circulate and verify supporting documentation

All the supporting documentation prepared by the enterprise or sent in by external parties shall be collected and forwarded to the accounting function. The accounting function shall first check its elements and verify its legality before posting to the books of account.

Steps to circulate the supporting documentation include the following: Preparing, accepting, and proceeding the supporting documentation, Verifying and signing the supporting documentation, or submitting to the Managing Director for

approvaldone by the accountants and chief accountant, Sorting and arranging supporting documentation; finalising the accounts; and posting entries to

the books of account, and Filing and maintaining the supporting documentation.

Steps to verify the supporting documentation Verifying clarity, integrity, and completeness of the items and elements written in the supporting

documentation, Verifying lawfulness of the written transactions, and reconciling them to other relevant materials, Verifying accuracy of the figures and information recorded in the supporting documentation,


55


On the verification of the supporting documentationif breaches of policies, regime, stipulations on economic and financial management laid down by the Government, such supporting documentation shall be rejected (non-disbursement of cash, non-payment, non-issuance of inventory) and reported to the Managing Director for timely handling under current law.

For the supporting documentation which are improper in terms of procedures, elements and figures, i.e. unclear, the person in charge of verifying or posting entries shall return and shall request further additional procedures, and relevant adjustments to such supporting documentation prior to using it as the underlying input for posting to the books of account.

6. Translation of supporting documentation into Vietnamese

The supporting documentation in foreign languages shall be translated into Vietnamese when used for recording the books of account. For those pieces of supporting documentation which seldom arise or arise in many times but whose elements are dissimilar, they shall be totally translated. For those pieces of supporting documentation which arise in many times and whose elements are similar, full translation shall be done for first pieces only and translation of such key elements as their title, preparing entity and individuals, recipient entity and individuals, their economic elements, titles of signers, etc. shall be required for second or next pieces onwards. The translator for such pieces of supporting documentation shall sign, write his/her full name and be responsible for the Vietnamese elements. The Vietnamese pieces shall be attached with the accompanying ones in foreign languages.

7. Using, monitoring, printing and circulating templates of supporting documentation

All enterprises shall uniformly adopt the templates of supporting documentation as specified in this accounting system. In the course of their implementation, enterprises shall not revise the compulsory templates.

The printed templates shall be maintained carefully and shall not be left damaged, rotten. Cheques and valuable papers shall be monitored as cash.

The compulsory templates shall be printed and published by the MOF or by its authorised entities. The authorised entities shall print the exact specified templates, and permitted print for each types of supporting documentation and shall comply with the provisions on the management of forms/templates issued by the MOF.

For the templates of instructive supporting documentation, enterprises may buy or design by themselves, but they shall assure key elements of the supporting documentation as stated in Article 17 of the Law on Accounting.

8. Those enterprises using electronic supporting documentation in economic and financial activities and in recording the books of account shall conform to the stipulations in the relevant legal documents on this type of supporting documentation.


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II. LISTING OF SUPPORTING DOCUMENTATION

NO DOCUMENTATION TITLES DOCUMENTATION CODE

NATURE

Required (*) Instructive (*)

A/SUPPORTING DOCUMENTATION ISSUED AS PER THIS DECISION

I/ LabourPayroll

1 Time sheet 01a-LDTL x

2 Overtime sheet 01b-LDTL x

3 Pay Sheet 02-LDTL x

4 Bonus Pay Sheet 03-LDTL x

5 Travel Warrant 04-LDTL x

6 Confirmation of Finished Goods or Completed Work

05-LDTL x

7 Overtime Pay Sheet 06-LDTL x

8 External Service Fee Payment Sheet 07-LDTL x

9 Lump-sum Work Contract 08-LDTL x

10 Minutes of Liquidation (Sign-off) of SLump-sum Work Contract

09-LDTL x

11 Salary-related Accrual Schedule 10-LDTL x

12 Salary and Social Insurance Allocation Schedule 11-LDTL x

II/ Inventory

1 Inventory Receipt Sheet 01-VT x

2 Inventory Issue Sheet 02-VT x

3 Minutes of Materials, Tools, Products and Goods Testing

03-VT x

4 Ending Materials Note 04-VT x

5 Minutes of Materials, Tools, Products and Goods Inventory

05-VT x

6 Purchases Schedule 06-VT x

7 Raw Materials and Tools Schedule 07-VT x


57


III/ Sales

1 Schedule of Payment for Goods Held On Consignment

01-BH x

2 Selling-Counter Card 02-BH x

IV/ Cash

1 Receipt Voucher 01-TT x

2 Payment Voucher 02-TT x

3 Advance Request 03-TT x

4 Advance Repayment Sheet 04-TT x

5 Request for Payment 05-TT x

6 Cash Receipt 06-TT x

7 Schedule of Gold, Silver, Precious Meals, Gestones

07-TT x

8 Cash Count Sheet (VND) 08a-TT x

9 Cash Count Sheet (Foreign currencies, gold, silver, etc.)

08b-TT x

10 Cash Disbursement Schedule 09-TT x

V/ Fixed Assets

1 Fixed Asset Receipt-Issue Minutes 01-TSCD x

2 Fixed Asset Disposal Minutes 02-TSCD x

3 Minutes of Completed Overhauled Fixed Assets 03-TSCD x

4 Fixed Asset Revaluation Minutes 04-TSCD x

5 Fixed Asset Inventory Minutes 05-TSCD x

6 Fixed Asset Calculation and Allocation Schedule 06-TSCD x

B/ SUPPORTING DOCUMENTATION ISSUED AS PER OTHER LEGAL DOCUMENTS

1 Certificate of Social Insurance Paid Sick Leave x

2 Listing of Leave Takers with Paid Sickness- and Maternity-Related Allowances

x

3 Value Added Tax Invoice 01GTKT-3LL x

4 Sales Invoice 02GTGT-3LL x

5 Inventory Issue cum Internal Transportation 03 PXK-3LL x


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Sheet

6 On-consignment Goods Issue Sheet 04 HDL-3LL x

7 Finance Leasing Invoice 05 TTC-LL x

8 Schedule of Purchases without Invoices 04/GTGT x

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


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PART FOUR

BOOKS OF ACCOUNT & FORMS OF ACCOUNTING

I. GENERAL

1. Books of account

The books of account are used to record, systematise and maintain all financial and economic arising transactions by nature and chronological order relating to the enterprise.

The enterprise shall comply with the provisions on the books of account included in the Accounting Law, Decree 129/2004/ND-CP issued by the Government providing details and guidance on the execution of several articles of the Accounting Law in business operations, guidelines on the Accounting Law and this accounting system.

2. Types of Books of Account

Each enterprise shall have only one set of books of account for a fiscal year. The books of account include ledgers and sub-ledgers [so ke toan chi tiet].

Ledgers, including Journals and General Ledger.Control accounts, including sub-ledgers and detailed accounting cards

The Government provides statutory requirements for formats, elements and method of recording for Ledgers and Journals, and instructive requirements for sub-ledgers and detailed accounting cards.

2.1 Ledgers

1. A Journal is used to record the transactions arising in each accounting period and in a fiscal year by chronological order and corresponding relationships between accounts for such transactions. The figures in the Journal shall show the total amounts in the Debit or Credit side of all the accounts used at the enterprise.

The Journal shall reflect the following elements in full:

Date of entries, Account code and date of the accounting documentation for underlying entries, Summarised elements of the transactions, Amounts of the transactions,

2. A General Ledger is used to record the transactions arising in each accounting period and in a fiscal year by the accounts stipulated in the chart of accounts applicable to the enterprise. The figures in the General Ledger generally show the assets, liabilities, owner’s equity, and results of operation generated by the enterprise.

The General Ledger shall reflect the following elements in full:

Date of entries, Account code and date of the supporting documentation for underlying entries, Summarised elements of the transactions, Amounts of the transactions.


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2.2 Sub-ledgers and detailed accounting cards

Sub-ledgers are used to record all the transactions relating to the objects of accounting that require detailed monitoring by managerial requirements. The figures in the sub-ledgers shall provide the information intended for the management of individual types of asset, capital, revenue and expense unshown in the journals and General Ledger.

The number and compsition of the sub-ledgers are optional. Enterprises base on the Government’s instructive requirements for sub-ledgers, and their managerial requirements to open necessary and appropriate sub-ledgers.

3. Books of account

Each accounting entity has a sole official set of books of account for a fiscal year. The enterprise shall base on its chart of account, and its managerial requirements to open necessary general and sub-ledgers adequately.

4. Responsibilities of book-keepers

The books of account shall be strictly controlled and the responsibilities of the persons who keep the accounts shall be clearly segregated. For those staff ho are assgiend to keep the books of account, they shall be responsible for the details recored in the books of account nad for the maintaining of such during their use.

Upon the replacement of the book-keepers, the chief accountant shall organise the hand-over of the responsibilities for monitoring and posting entries between the former and new book-keepers. The minutes of the hand-over shall be signed by the chief accountant.

5. Manual or computerised entries

Accounting entities are allowed to make manual or computerised entries.

For manual entries, one of the forms of accounting and of books-of-account formats shall be followed. Accounting entities shall open further sub-ledgers basing on their managerial requirements.

For computerised entries, the enterprise is optional to acquire or self-develop appropriate computerised forms of accounting. The applicable computerised forms of accounting shall meet the following requirements:

Necessary ledgers and sub-ledgers shall be adequate to meet the accounting requirements in accordance with the rules. The ledgers shall carry complete elements in accordance with the required Policy on the Books of Account.

The accounting entities shall comply with the stipulations on opening, posting entries to, closing and correcting the books of account in accordance with the Accounting Law; the instructive documents on the execution of the Accounting Law and the requirements as stated in this accounting system.

The enterprise shall base on the criterion [specifications] and conditions of the accounting software specified by the MOF in Circular 103/2005/TT-BTC issued on 24 November 2005 to select the appropriate software in accordance with the managerial requirements and conditions at the enterprise.


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6. Opening and posting entries to the books of account

6.1 Opening of books of account

The books of account shall be opened at the start of the financial year. For start-up enterprises, the books of account shall be opened since the date of their establishment. The representative at law and the chief accountant of the enterprise shall be responsible for approving manual books of account prior to use or for approving the official books of account after print-outs thereof.

The books of account shall be used in printed or lined formats, may be bound in volumes, or may be kept in separate sheets. Used separate sheets shall be bound in volumes for filing.

Prior to the use of the books of account, the following procedures shall be completed first:

For volume-type books of account

The first page of the books of account shall include the enterprise’s name; title of books of account ; date of opening; accounting period and period of recording [ky ghi so]; full names and signatures of the book-keeper, chief accountant and representative at law; the closing date of the recording of the books of account, or the date of hand-over to the others.

The books of account shall be paged from the first to the last pages and the accounting entity’s seal shall be marginally infixed on two consecutive pages.

For loose-sheet books of account

The enterprise’s name, ordinal number of each sheet, name of books of account, month of use, and full name of the book-keeper shall be clearly written on the cover of books of account. The loose sheets, prior to their use, shall be duly signed and sealed by the enterprise’s Managing Director or by the authorised person and recorded in the register of loose-sheet books of account. The loose-sheet books of account shall be arranged in the order of the accounts and safety and easy search shall be assured.

6.2 Posting of entries The posting of entries shall be necessarily based on proper supporting documentation. All the figures recorded in the books of account shall be evidenced by lawful and valid supporting documentation.

6.3 Closing of books of account

At the end of the accounting period, closing of the books of account shall be made prior to the preparation of the financial statements. In addition, the closing of the books of account shall be done for inventory instances or others in accordance with the law.

7. Correcting of books of account

7.1 On the detection of any errors in the manual books of account arising out of th eposting of entries, misrecorded information or figures shall not be erased causing lost trails but corrected by one of the following methods:

(1) Method of Rectifying

This method is used to rectify errors by striking erroneous parts through, but conspicuousness of such shall be assured. Above the strike-through parts, the corrected fiures or words shall be recorded in normal ink and the signatures of the chief accountant or the accountant-in-chief shall be infixed next to the corrected parts. This method shall be applied to the following cases:

- Errors in descriptions irrelevant to the corresponding relationship between the accounts.- Errors that do not affect total amounts.

(2) Method of Negatives Recording (also, Red-inking Method)


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This method is used to correct the errors by rewriting the misrecorded entries in red ink or in parentheses to cancel them and by rewriting the correct entries in normal ink for alteration. This method shall be applied to the following cases:

- Errors in corresponding relationship between the accounts due to misfinalisation of the accounts which have been recorded but which cannot be corrected by the Method of Rectifying, or

- Errors have been detected after the filing of the financial statements to competent authorities.

In these cases, the errors shall be prospectively corrected to the books of account for the year in which they are detected or shall be retrospectively corrected in accordance with VAS 29Changes in Accounting Policies, Estimates and Errors.

- Errors where the entries in the accounts carry repeated amounts, or where the misrecorded amounts are higher than the correct ones.

On using the Method of Negatives Recording to rectify the wrong parts, “Rectified Supporting Documentation” shall be prepared and signed by the chief accountant or the accountant-in-charge.

(3) Method of Supplementary Recording

This method is applied to cases where the corresponding relationship between the accounts is correctly recorded but where the recorded amounts are lower than the ones included in the supporting documentation, or where the amounts written on the supporting documentation are missed or are not fully added.

Corrections under this method shall be accompanied by “Supporting Documentation for Supplementary Recording” for recording the deficit differences against those of the supporting documentation.

7.2 Corrections made to computerised accounting records

(1) On detecting any errors prior to the filing of the annual financial statements of a specific financial year to competent authorities, corrections shall be directly made the computerised accounting records for that year.

(2) On detecting any errors after the filing of the annual financial statements of a specific financial year to competent authorities, corrections shall be directly made the computerised accounting records for the year where errors have been detected and notes shall be taken on the last line of the accounting records for the year of such errors.

(3) Corrections in the course of maintaining the computerised accounting records shall be made under the “Method of Negatives Recording” or the “Method of Supplementary Recording”.

7.3 On the approval of the annual finalisation reports or at the completion of inspections and audits with available official conclusions, if decisions on required corrections of the figures in the financial statements relating to those of accounting records are rendered, the entity shall correct its accounting records and balances of associated accounts accordingly under the prescribed methods. Corrections shall be directly made to the accounting records for the year where errors have been detected and notes thereof shall be taken to the last page (last line) of the accounting records for the previous year of errorsif errors arising from the financial statements filed to competent authorities are found outfor easy reference and monitoring.


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8. Adjusting of the accounting records

Where the enterprise exercises retrospective adoption due to changes in accounting policies and makes retrospective adjustments due to the detected material errors arising from the previous year under the requirements of VAS 29Changes in Accounting Policies, Estimates and Errors, the accountant shall revise beginning balances of respective accounts in the ledgers and sub-ledgers.

9. Forms of Accounting Records

(1) The enterprise is allowed to adopt one of the following five forms of accounting records:

- General Journal- Journal Ledger- Voucher Journal- General Journal Voucher - Computerised Accounting Records

For each form of accounting records, there are specific on the number, composition, format, methods of recording, and relationship between accounting records. (2) The enterprise shall base on the size, business operations, managerial requirements, expertise of accountants, calculation-related facilities, selection of an appropriate form of accounting records, and compliance with the requirements applicable to respective accounting records, e.g. types, structure, cross-reference and -check relationship, order [steps], and methods of recording.

II. FORMS OF ACCOUNTING RECORDS

1. General Journal

1.1 Principles, basic features

The basic features of the General Journal are that all the transactions shall be recorded in journals, of which the General Journal is the key one, by their chronological order and by their nature, i.e. finalisation of the accounts. Afterwards, figures in the journals shall be employed to record in the General Ledger by transactions.

- General Journal, Special Journals - General Ledger - Sub-ledgers, detailed accounting cards

1.2 Steps to record under the General Journal (1) Daily, as per verified supporting documentation underlying the recording, the accountant shall first record the transactions in the General Journal and then base on those recorded figures to post to appropriate accounts in the General Ledger. If the entity opens sub-ledgers and detailed accounting cards, the transactions shall be, at the same time, recorded both in the General Journal and in the associated sub-ledgers and detailed accounting cards.

Where the entity opens Special Journals, daily, it shall base on the supporting documentation underlying the recording to post the transactions in the related Special Journals. Periodicallyevery 3, 5, 10, etc. daysor at the end of a month, the entity shall, subject to volume of transactions, obtain figures from each Special Journal to record in appropriate accounts in the General Ledger after elimination of repeated figures has been done as a transaction is simultaneously recorded in multiple Special Journals, if any.

(2) At the end of each month, each quarter or each year, the figures in the General Ledger shall be totalled to prepare the Trial Balance.


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Supporting documentation

GENERAL JOURNAL

GENERAL LEDGER

Trial Balance

FINANCIAL STATEMENTS

Summary of details


After being verified of matching factor, the figures in the General Ledger and summary of details (prepared based on sub-ledgers and detailed accounting cards) shall be employed to prepare the financial statements.

In principle, the Total Amounts of the Debit side and Credit side in the Trial Balance shall equal those of the Debit side and Credit side in the General Journal (or in the General Journal and Special Journals after elimination of any repeated figures in the Special Journals) for the same period.

Diagram 1STEPS TO MAINTAIN ACCOUNTING RECORDS

UNDER GENERAL JOURNAL SYSTEM

NB:

Daily recording

Month-end or periodical recording

Reconciling and verifying relationship


Sub-ledgers & detailed accounting cardsSpecial Journal

65


2. JournalLedger 2.1 Basic features

The basic features of the General Journal are that all the transactions shall be recorded a sole ledger, i.e. the Journal-Ledger, by their chronological order and by their nature (by accounts). Supporting documentation or the Summary of Similar Supporting Documentation shall underlie the recording of the transactions in the Journal-Ledger.

2.2 Steps to record under the Journal-Ledger (Form 02)

(1) Daily, as per verified supporting documentation or Summary of Similar Supporting Documentation underlying the recording, the accountant shall first determine Debit accounts or Credit accounts to post to the JournalLedger. The figures of each supporting documentation (or of the Summary of Similar Supporting Documentation) shall be recorded in the same line of both Journal section and Ledger section. The Summary of Similar Supporting Documentation shall be prepared for similar supporting documentation (payment voucher, receipt voucher, issuance sheet, receipt sheet, etc.) that arise in many times in the same day or in every 1 to 3 days.

The supporting documentation and Summary of Similar Supporting Documentation, after posted to the JournalLedger, are used to record in the related sub-ledgers, detailed accounting cards.

(2) At the end of each month, after having reflected all supporting documentation arising from a month to the JournalLedger and to sub-ledgers, detailed accounting cards, the accountant shall add up the amounts in columns in the Journal section and in Debit and Credit columns of each account in the Ledger section to the total line of the amounts at month-end. The amounts from previous months, and amounts from the current month shal be based on to calculate the amounts accumulated from the beginning of the quarter to the current month.

The balances at the beginning of the month (or quarter), and the amounts arising from the accounting month shall be based to reach the month-end (or quarter-end) balances of each account in the JournalLedger.

(3) On verifying and collating the added-up amounts at month-end (or quarter-end) in the JournalLedger, the accoutant shall meet the following requirements:

Total amount in “Increase/Decrease” column = Total Debit amount of all accounts = Total Credit amount of all accounts

Total Debit amount of all accounts = Total Credit amount of all accounts

(4) Control accounts and detailed accounting records shall be cut off to add up the Debit amounts and Credit amounts to reach the month-end balance of item of accounting. Cut-off figures for the related objects of accounting shall underlie the preparation of the “Summary of Details” for each account. The figures in the Summary shall be collated to the Debit amounts, Credit amounts and month-end balance of each account in the JournalLedger.

The figures in the JournalLedger and in the Summary of Details, after the cut-off, shall be verified and collated and if matching or correct, they are employed to prepare the financial statements.


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UNDER JOURNALLEDGER SYSTEM

NB:

Daily recording Month-end recording Reconciling & verifying

3. Voucher Journal

3.1 Basic features

Basic features of the Voucher Journal are that the direct basis underlying the recording of ledgers is the “Voucher Journal”. The recording of the ledgers is composed of the following:

Recording [transactions] by chronological order in the Voucher Journal Register Recording [transactions] by nature in the General Ledger.

The Voucher Journal shall be prepared by the accountant basing on individual supporting documentation or Summary of Similar Supporting Documentation.

The Voucher Journal shall be marked continous code numbers for individual months or for the whole year (by ordinal numbers in the Voucher Journal Register), attached supporting documentation, and approved by the chief accountant prior to recording.

The Voucher Journal form of accounting includes the following accounting records:- Voucher Journal- Voucher Journal Register- General Ledger- Sub-ledgers, detailed accounting cards



Cash book

JOURNALLEDGER

Summary of similar

supporting documentation

Sæ, thÎ kÕ to¸n chi

tiÕt

Sub-ledgers & detailed accounting

cards

Summary of details


67


3.2 Steps to record under the Voucher Journal [Form 02]

(1) Daily, as per verified supporting documentation or Summary of Similar Supporting Documentation underlying the recording, the accountant shall prepare the Voucher Journal. The Voucher Journal shall underlie the recording in the Voucher Journal Register and shall be then employed for recording in the General Journal. The supporting documentation, after used as underlying input for the preparation of the Voucher Journal, shall be recored in the related sub-ledgers and detailed accounting cards.

(2) At the end of each month, cut-off shall be made to work out total amounts of the transactions arising from the month in the Voucher Journal Register, total Debit amount, total Credit amount and balance of each account in the General Ledger. The General Ledger shall be based to prepare the Trial Balance.

(3) After being verified of matching factor, the figures in the General Ledger and Summary of Details (prepared based on sub-ledgers and detailed accounting cards) shall be employed to prepare the financial statements.

The verifying and reconciling relationship shall assure that total Debit amount and total Credit amount of all accounts in the Trial Balance are equal and that these amounts are equal to total amount in the Voucher Journal Register. Total Debit amount and total Credit amount of all accounts in the Trial Balance shall equal and the balance of each account in the Trial Balance shall equal that of the respective account in the Summary of Details.


68


Diagram 3STEPS TO MAINTAIN ACCOUNTING RECORDS UNDER VOUCHER JOURNAL SYSTEM

NB:

Daily recordingMonth-end recordingReconciling & verifying

4. General Journal Voucher 4.1 Basic features

- Collecting and systematising the transactions by the Credit side of the accounts in combination with analysing those transactions by Debit side of their corresponding accounts.

- Combining the recording of the transactions by chronological order with the systematising of the transactions by nature (by accounts) in a close manner.

- Combining, on a broader base, the general recording with the detailed recording in the same account-book and in the same course of recording.

- Using templates of books of account, including printed corresponding relationship between accounts, and economic and financial ratios and preparing the financial statements.

The General Journal Voucher form of accounting includes the following accounting records:

- General Journal Voucher- Schedules- General Ledger- Sub-ledgers and detailed accounting cards



Cash book

JOURNAL VOUCHER

Summary of similar supporting documentation

Sæ, thÎ kÕ to¸n chi

tiÕt

Sub-ledgers & detailed accounting

cards

Summary of details General Ledger

Voucher Journal Register

Trial Balance


69


4.2 Steps to record under the General Journal Voucher (Form 04)

(1) Daily, as per verified supporting documentation, the accountant shall obtain the figures thereof to directly record in General Journal Vouchers or in related Schedules and sub-ledgers.

For those types of operating expenses that are incurred in many times or that are allocable, original supporting documentation shall be first collected and categorised in allocation schedules. Then, results from those allocation schedules shall be employed to record in related Schedules and General Journal Vouchers.

For General Journal Vouchers recorded based on Schedules and sub-ledgers, the total amounts in those shall be transferred to the General Journal Vouchers.

(2) At the end of each month, the accountant shall conduct the cut-off; add up figures in General Journal Vouchers; verify and reconcile the figures of those General Journal Vouchers to those of related sub-ledgers, summaries of details; and use total amounts in those General Journal Vouchers to directly record in the General Ledger.

For those supporting documentation pertaining to sub-ledgers, detailed accounting cards, the accountant is allowed to directly record the data thereof in the related ones. At the end of the month, by adding up figures in sub-ledgers or detailed accounting cards and by basing on those records, the accountant shall prepare Summaries of Details by accounts to reconcile them to the General Ledger.

The total amounts in the General Ledger and certain specific items in the General Journal Vouchers, Schedules and Summaries of Details shall be employed to prepare the financial statements.


UNDER GENERAL JOURNAL VOUCHER SYSTEM

NB:

Daily recording Month-end recording Reconciling & verifying


Supporting documentation & Allocation schedules

Schedules GENERAL JOURNAL

VOUCHER

Sub-ledgers & detailed accounting cards

Summary of details General Ledger


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5. Computerised Form of Accounting

5.1 Basic features

Basic features of the computerised form of accounting is that accounting work is carried out by an accounting software. The software is designed based on one of the four forms of accounting or on the combination of the above said four required forms of accounting. The software does not browse all processes of recording, but adequate account-books and financial statements shall be printed out in accordance with statutory requirements.

Types of account-books of computerised form of accounting:

The accounting software which is designed per which form of accounting shall have the types of account-books of that form of accounting but it may not be totally similar to manual account-books.

5.2 Steps to record under computerised form of accounting (Form 05)

(1) Daily, as per verified supporting documentation or Summary of Similar Supporting Documentation underlying the recording of the accounts, the accountant shall determine Debit or Credit accounts to input data in computers basing on schedules and tables which are designed in the accounting software.

According to the processes of the accounting software, the information shall be automatically input in the ledgers (General Ledger or JournalLedger, etc.) and in related sub-ledgers and related accounting cards.

(2) At the end of each month (or at any necessary point of time), the accountant shall exercise cut-off (adding-up) procedures and prepare the financial statements. The reconciliation of general figures to detailed figures shall be done automatically and assured of preciseness and integrity against the information input for the period. The accountant may verify and collate figures in the books of account with those of the financial statements after the print-out of such.

The required procedures shall be performed to print the financial statements in accordane with statutory requirements.

At the end of each month or of each year, ledgers and sub-ledgers shall be printed out and bound in volumes. Legal procedures shall be fulfilled in accordance with the requirements for manual books of account.


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UNDER COMPUTERISED FORM OF ACCOUNTING

NB: Daily data inputting Print-outs of month-end & year-end books & reports

Reconciling & verifying


BOOKS OF ACCOUNT

- Ledgers- Sub-legers

ACCOUNTING DOCUMENTATION

SUMMARY OF SIMILAR

ACCOUNTING DOCUMENTATION

- Financial statements - Management accounting reports

ACCOUNTING SOFTWARE

COMPUTERS

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III. LIST OF BOOKS OF ACCOUNT APPLICABLE TO ENTERPRISES

No Names of books of account Codes

Forms of Accounting

General Journal

JournalLedger

Voucher Journal

General Journal Voucher

1 2 3 4 5 6 7

01 JournalLedger S01-DN - x - -

02 Voucher Journal S02a-DN - - x -

03 Voucher Journal Register S02b-DN - - x -

04 General Ledger (used for the Voucher Journal) S02c1-DN

S02c2-DN

- - x

x

-

05 General Journal S03a-DN x - - -

06 Cash-receipts Journal S03a1-DN x - - -

07 Cash-payments Journal S03a2-DN x - - -

08 Purchases Journal S03a3-DN x - - -

09 Sales Journal S03a4-DN x - - -

10 General Ledger (used for the General Journal) S03b-DN x - - -

11 General Journal Voucher, Types of General Journal Voucher, Schedules

Incl. - General Journal Vouchers 1 to 10

- Schedules 1 to 11

S04-DN

S04a-DN

S04b-DN

-

-

-

-

-

-

-

-

-

x

x

x

12 General Ledger (used for the General Journal Voucher)

S05-DN - - - x

13 Trial Balance S06-DN x - x -

14 Cash Book S07-DN x x x -

15 Cash Sub-Ledger S07a-DN x x x -

16 Bank Deposits Book S08-DN x x x x

17 Raw Materials, Tools, Products And Goods Control Account

S10-DN x x x x

18 Summary of Details of Raw Materials, Tools, Products And Goods

S11-DN x x x x

19 Inventories Card (Inventories Book) S12-DN x x x x

20 Fixed Assets Book S21-DN x x x x

21 Use Area-Specific Fixed Assets, Tools and Supplies Register

S22-DN x x x x

22 Fixed Assets Card S23-DN x x x x

23 Creditors’ Ledger (Debtors’ Ledger) S31-DN x x x x


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No Names of books of account Codes

Forms of Accounting

General Journal

JournalLedger

Voucher Journal

General Journal Voucher

1 2 3 4 5 6 7

24 Creditors’ Ledger (Debtors’ Ledger) in FC S32-DN x x x x

25 FC Payments Ledger S33-DN x x x x

26 Borrowings Ledger S34-DN x x x x

27 Sales Ledger (Debtors’ Ledger) S35-DN x x x x

28 Operating Expenses Ledger S36-DN x x x x

29 Manufacturing Costs Card S37-DN x x x x

30 Accounts Ledger S38-DN x x x x

31 Ledger for Investments in Associates S41-DN x x x x

32 Register for Allocated Differences on Acquisition of Investments in Associates

S42-DN x x x x

33 Issued Shares Ledger S43-DN x x x x

34 Treasury Stocks Ledger S44-DN x x x x

35 Securities Investment Ledger S45-DN x x x x

36 Paid-in Capital Register S51-DN x x x x

37 Capital Expenditure Book S52-DN x x x x

38 VAT Register S61-DN x x x x

39 Refunded VAT Register S62-DN x x x x

40 VAT-Exemptions Ledger S63-DN x x x x

Other Ledgers as per enterprises’ managerial requirements

The steps, methods of recording, and relationship between books of account by forms of accounting stipulated in the preceding Section IIForms of Accounting.


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Decision 15 (e)

Documents

rights buildings

deferred eit

detailed accounting

auditing policy

quarterly

selective

electronic

relevant guidance