What is financial statement? How to set up and read financial statements?

What is financial statement? How to set up and read financial statements?

1.What is financial statement?

Financial statements (financial statements) provide information related to an enterprise’s financial activities, such as assets, liabilities, equity, revenue, profit, cash flow, etc. at the end of each quarter and at the end of the year.

What are the types of financial statements?

There are two types of financial statements:

1. General financial statements 
2. Consolidated financial report

What does the Financial Statement Set include?

1. The set of financial statements submitted to state agencies includes:

Tax finalization declarations:

• Corporate income tax finalization declaration.
• Personal income tax finalization declaration.

 2. Financial statement set:

• Accounting balance sheet

• Business results table

• Cash flow table

  What should be included in the financial statements?

Financial statements must provide specific information about:

• Asset
• Liabilities and Equity
• Revenue, other income, business expenses and other expenses
• Profit, loss and distribution of business results
• Taxes and other payables to the state
• Other assets related to the entity
• How are the cash flows in and out on the cash flow statement?

In addition to this information, the enterprise must also provide details of necessary information in the “Notes to the Financial Statements” in order to explain more about the items reflected in the consolidated financial statements, the applicable accounting policies.  is used to record arising economic transactions such as:

• Accounting system
• Accounting form recognition principles,
• Method of costing, accounting for inventory
• Depreciation method of fixed assets

…..

When is the financial statement period?

• Annual financial statement preparation period
• Period of preparation of the interim financial statements
• The period of preparation of the interim financial statements is every quarter of the fiscal year (excluding the fourth quarter).
• Other financial statement period

Enterprises can prepare financial statements according to other accounting periods (such as week, month, 6 months, 9 months…) as required by law, parent company or owner. An accounting unit that is divided, separated, consolidated, merged, transformed, dissolved, terminated, or bankrupt must prepare financial statements at the time of division, separation, consolidation or merger. , ownership transformation, dissolution, termination of operation, bankruptcy.

When is the deadline to submit financial statements?

No later than the 90th day from the end of the calendar year or fiscal year.