What Are Financial Statements?
Financial statements (báo cáo tài chính) are a structured set of reports that present the financial position, operating results, and cash flows of an enterprise for a given accounting period. In Vietnam, the preparation and presentation of financial statements are governed by:
- Law on Accounting No. 88/2015/QH13
- Decree 174/2016/ND-CP — detailed provisions of the Accounting Law
- Circular 200/2014/TT-BTC — accounting regime for large and medium enterprises
- Circular 133/2016/TT-BTC — simplified accounting regime for small and micro enterprises
- Vietnamese Accounting Standards (VAS) — 26 standards issued under various Ministry of Finance decisions
The Four Core Financial Statements
1. Balance Sheet (Bảng cân đối kế toán) — Form B01-DN
Presents the financial position of the enterprise at a specific point in time.
Assets = Liabilities + Owners' Equity
Key sections:
- Assets: Current assets (cash, receivables, inventory) and non-current assets (fixed assets, investments)
- Liabilities: Short-term and long-term obligations
- Owners' equity: Charter capital, retained earnings, reserves
2. Income Statement (Báo cáo kết quả hoạt động kinh doanh) — Form B02-DN
Shows revenue, expenses, and profit over the reporting period.
Key line items:
- Net revenue from sales and services
- Cost of goods sold
- Gross profit
- Selling and administrative expenses
- Operating profit
- Financial income and expenses
- Profit before tax
- CIT expense
- Profit after tax
3. Cash Flow Statement (Báo cáo lưu chuyển tiền tệ) — Form B03-DN
Reports cash inflows and outflows across three activities:
- Operating activities: Core business cash flows (collections from customers, payments to suppliers, staff)
- Investing activities: Purchase/disposal of fixed assets, investments
- Financing activities: Loan drawdowns/repayments, capital contributions, dividends paid
Can be prepared using the direct method or indirect method — both are accepted under VAS 24.
4. Notes to Financial Statements (Thuyết minh báo cáo tài chính) — Form B09-DN
Provides narrative and quantitative disclosures explaining the figures in the other three statements. Includes accounting policies, fixed asset movements, related-party transactions, and contingent liabilities.
Submission Deadlines
| Enterprise Type | Annual Deadline | |----------------|----------------| | State-owned enterprises | 30 days after fiscal year-end | | Private enterprises (domestic) | 90 days after fiscal year-end | | Foreign-invested enterprises (FIE) | 90 days after fiscal year-end | | Subsidiaries reporting to parent | Per parent company's requirements |
For most enterprises with a 31 December year-end, the deadline is 31 March of the following year.
Where to Submit
Financial statements must be filed with:
- Tax authority — via the eTax portal (thuedientu.gdt.gov.vn) as part of the CIT finalization package
- Business registration authority — Department of Planning and Investment
- Statistics authority — General Statistics Office (for qualifying enterprises)
- Parent company or state management body — where applicable
Audit Requirements
Annual financial statements must be audited by an independent audit firm registered in Vietnam for:
- Foreign-invested enterprises (all)
- Enterprises operating in banking, insurance, and securities
- State-owned enterprises
- Enterprises whose financial statements are used for public offering or listing
Audited statements must be submitted within the same deadlines as unaudited statements.
Accounting Period
Vietnam's standard accounting year runs from 1 January to 31 December. Enterprises may apply for a different fiscal year-end (e.g., 31 March or 30 June) by notifying the tax authority, but the year must still cover 12 consecutive months.
Why Financial Statements Matter
| Purpose | Who Uses Them | |---------|--------------| | Tax compliance (CIT, VAT finalization) | Tax authority | | Credit assessment and loan applications | Banks and financial institutions | | Investor due diligence | Shareholders, potential investors | | Internal management decisions | Board of directors, management | | Regulatory compliance | Licensing and sector regulators |
Common Reporting Errors to Avoid
- Mismatching CIT declaration and income statement: The profit before tax in Form 03/TNDN must reconcile with the income statement
- Incomplete notes: Missing disclosure of accounting policies or related-party transactions triggers audit flags
- Incorrect comparative figures: Prior year figures in the current year statements must match the prior year's audited statements
- Failure to file with all required authorities: Filing with the tax authority but not the DPI is a common oversight
Conclusion
Accurate and timely financial reporting is the foundation of good governance and tax compliance in Vietnam. H&T Bay prepares, reviews, and files financial statements for enterprises of all sizes, ensuring full compliance with VAS and regulatory deadlines.