CAN THE ANNUAL FINANCIAL STATEMENTS OF SMALL AND MEDIUM ENTERPRISES USED FOR PUBLIC DISCLOSURE BE PRESENTED IN FOREIGN CURRENCY?

Your business is a small and medium-sized enterprise. Are you wondering if it will be presented in foreign currency? Through today’s article, let’s learn about the above issue with Pham Consult!

What are financial statements?

Financial statements are the most comprehensive reports on the situation of assets, equity and liabilities as well as the financial situation and business results during the period of the enterprise. In other words, financial accounting reports are a means of presenting the profitability and financial status of an enterprise to interested people (business owners, investors, lenders, tax authorities and other government agencies). power,…)

All enterprises in all industries and economic sectors must prepare and present annual financial statements.

Are annual financial statements of small and medium-sized enterprises used for public announcement presented in foreign currency?

Annual financial statements of small and medium-sized enterprises are specified in Clause 1, Article 78 of Circular 133/2016/TT-BTC as follows:

Currency used to prepare financial reports when announced to the public and submitted to State management agencies in Vietnam

1. Financial reports used for public announcement and submission to State management agencies in Vietnam must be presented in Vietnam Dong. In case an enterprise prepares financial statements in foreign currency, it must convert the financial statements into Vietnamese Dong and when announced to the public and submitted to the State management agencies in Vietnam, the financial statements will be published. documents in Vietnam Dong must be attached to financial statements in foreign currency. Financial reports used to determine an enterprise’s tax obligations are carried out in accordance with tax laws.

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Thus, according to regulations, annual financial statements of small and medium-sized enterprises used for public announcement must be presented in Vietnam Dong.

In case an enterprise prepares financial statements in foreign currency, it must convert the financial statements into Vietnamese Dong and when announced to the public, the financial statements in Vietnamese Dong must be accompanied by financial statements in Vietnamese Dong. foreign currency.

 

When converting annual financial statements prepared in foreign currency to Vietnamese Dong, according to what principles must accountants convert the indicators?

 

According to the provisions of Clause 2, Article 78 of Circular 133/2016/TT-BTC, when converting annual financial statements prepared in foreign currencies to Vietnamese Dong, accountants must convert the indicators of the financial statements. year according to the following principles:

(1) Assets and liabilities are converted into Vietnam Dong according to the average transfer exchange rate at the end of the period of the commercial bank where the enterprise regularly has transactions;

(2) Equity is converted into Vietnam Dong at the actual exchange rate at the date of capital contribution;

(3) Undistributed after-tax profits and funds deducted from undistributed after-tax profits are converted into Vietnam Dong by calculating according to the items of the Business Results Report;

(4) Profits and dividends paid are converted into Vietnam Dong at the actual exchange rate on the date profits and dividends must be paid;

(5) Items in the Income Statement and Cash Flow Statement are converted into Vietnam Dong at the actual exchange rate at the time the transaction occurs or the average transfer rate. year (in case the average exchange rate approximates the actual exchange rate).

When must all small and medium-sized enterprises prepare and submit annual financial reports?

Time for preparing and sending annual financial reports for small and medium-sized enterprises is specified in Clause 1, Article 80 of Circular 133/2016/TT-BTC as follows:

Responsibilities and deadlines for preparing and submitting financial reports

1. Responsibilities and deadlines for preparing and sending financial reports:
2. a) All small and medium-sized enterprises must prepare and submit annual financial reports no later than 90 days from the end of the fiscal year to relevant agencies according to regulations.
3. b) In addition to preparing annual financial statements, businesses can prepare monthly and quarterly financial reports to serve the management and administration requirements of production and business activities of the business.
4. The place to receive annual financial reports is specified as follows:

Enterprises submit annual financial reports to tax authorities, business registration agencies and statistics agencies.

Enterprises (including domestic enterprises and foreign-invested enterprises) whose headquarters are located in export processing zones, industrial parks, and high-tech zones must, in addition to submit their annual financial statements to the agencies, Regulatory agencies (Tax authorities, business registration agencies, statistical agencies) must also submit annual financial reports to the Management Board of export processing zones, industrial parks, and high-tech parks if requested.

Thus, all small and medium-sized enterprises must prepare and submit annual financial reports no later than 90 days from the end of the fiscal year to relevant agencies according to regulations.

So, through the article on Pham Consult, we have learned more about new information with you. We hope this sharing will help your work.