Guidelines on preparation and presentation of income statement (Form B02-DN)
1. Content and structure of reports:
a) Income statement records situations and results of operations and business of enterprises, including the results of operations and the results from financial operations and other operations of enterprises.
When preparing consolidated income statement between enterprises and subordinate units which have no legal status in dependent accounting, enterprises must eliminate all of the revenues, income, expenses incurred from intra-company transactions.
b) Income statements shall include 5 columns:
- Column 1: Report items;
- Column 2: Code of the relevant items;
- Column 3: Number corresponding to items of this report is shown in the notes to the financial statement;
- Column 4: Total incurred during the annual reporting period;
- Column 5: Figures from previous years (for comparison).
2. Basis of reporting
- Based on income statement of previous year.
- Based on general accounting books and detailed accounting books in period used for accounts from 5 to 9.
3. Contents and methods of preparation of item in income statement
Revenues from sales and service provisions (Code 01):
- This item records the total revenues from sales of goods and finished products, investment real property, revenues from service provision and other revenues in the reporting year of enterprises. Figures recorded in this item are arising accumulation of the Credit Side of Account 511 "Revenue from sales and service provisions" in the reporting period.
When superior units make general reports with subordinate units without legal status, revenues from sales and service provisions arising from intra-group transactions are all excluded.
- This item does not include indirect taxes, such as VAT (including VAT paid under subtraction method), excise tax, export taxes, environmental protection taxes and other indirect taxes and fees.
Revenue deductions (Code 02):
This item records the total amounts recorded a decrease in the total revenue in year, including: trade discounts, sales allowances, sales returns in the reporting period. Figures recorded in this item are accumulation the arising sum in the Debit side of Account 511 "Revenue from sales and service provisions" corresponding to the Credit side of Account 521 "revenue deductions" during the reporting period.
This item does not include indirect taxes and fees that enterprises are not entitled to enjoy payable to the state budget (to be recorded a decrease in accounting books of account 511) because these amounts are essential collections of the State, not in the revenue structure and are not considered revenue deductions.
Net revenues from sales and service provisions (Code 10):
This item records the revenues from sales of goods, finished goods, investment real property, revenues from service provision and other deducted revenues (trade discounts, sales allowances, sales returns) during the reporting period, which is the basis of calculation of income of enterprises‘ operations. Code 10 = Code 01 - Code 02.
Costs of goods sold ( Code 11):
This item records the total cost of goods, investment real property, the production cost of finished goods sold, direct costs of completed service volume provided, other costs included in cost or recorded a decrease in cost of goods sold during the reporting period. Figures recorded in this item are arising accumulated amounts of Credit side of Account 632 "Cost of goods sold" in the reporting period corresponding to the Debit side of Account 911 "income summary".
When superior units make general reports with subordinate units without legal status, revenues costs of goods sold arising from intra-group transactions are all excluded.
Gross revenues from sales and service provisions (Code 20):
This indicator records the difference between the net revenue from sales of goods, finished products, investment real property and service provision and the cost of goods sold incurred during the reporting period. Code 20 = Code 10 - Code 11.
Financial income ( Code 21):
This item records the net financial income incurred during the reporting period of enterprises. Figures recorded in this item are the arising accumulated amounts of the Debit side of Account 515 " Financial income " corresponding to the Credit side of Account 911 "income summary" during the reporting period.
When superior units make general reports with subordinate units without legal status, financial income arising from intra-group transactions are all excluded.
Financial expense ( Code 22):
This item records the total financial income, including loan interest payable, copyright expenditures, joint-venture expenditures, ... incurred during the reporting period of enterprises. Figures recorded in this item are the arising accumulated amounts of the Credit side of Account 635 " Financial expense" corresponding to the Debit side of Account 911 "income summary" during the reporting period.
When superior units make general reports with subordinate units without legal status, financial expenses arising from intra-group transactions are all excluded.
Interest expense (Code 23):
This item records the cost of accrued interest included in financial expenses during the reporting period. Figures recorded in this item are based on detailed accounting books of Account 635.
Selling expense ( Code 25):
This item records the total selling expense of goods, finished goods sold, provided services incurred in the period. Figures recorded in this item are the total numbers of arising amounts of Credit side of Account 641 "Selling expense" corresponding to the Debit side of Account 911 "Income summary".
Enterprise administrative expense ( Code 26):
This item records the total enterprise administrative expenses incurred in the period. Figures recorded in this item are the total numbers of arising amounts of Credit side of Account 642 "Enterprise administrative expense" corresponding to the Debit side of Account 911 "Income summary" in reporting period.
Net profit from operations (Code 30):
This item records the income of enterprises during the reporting period. This item is calculated on the basis of gross profit on sales and service provisions are plus (+) financial income minus (-) financial expenses, selling expense and enterprise administrative expense incurred during the reporting period. Code 30 = Code 20 + (Code 21 - Code 22) - Code 25 - Code 26.
Other income (Code 31):
This item records other income incurred in the period. Figures recorded in this item are based on the total arising amounts of Debit side of Account 711 "Other income" corresponding to the Credit side of Account 911 "Income summary" in reporting period.
For liquidation or sale of fixed assets, investment real property, figures recorded in this item are the differences between sums received from the liquidation or sale of fixed assets, investment real property higher than the net book value of fixed assets, investment real property and liquidation expenses.
When superior units make general reports with subordinate units without legal status, other income arising from intra-group transactions are all excluded.
Other expenses (Code 32):
This item records the total other expenses incurred in the period. Figures recorded in this item are based on the total arising amounts of Credit side of Account 811 "Other income" corresponding to the Debit side of Account 911 "Income summary" in reporting period.
For liquidation or sale of fixed assets, investment real property, figures recorded in this item are the differences between sums received from the liquidation or sale of fixed assets, investment real property less than the net book value of fixed assets, investment real property and liquidation expenses.
When superior units make general reports with subordinate units without legal status, other expenses arising from intra-group transactions are all excluded.
Other profit (Code 40):
This item records the difference between other income (after deduction of VAT payable under subtraction method) and other expenses incurred during the reporting period. Code 40 = Code 31 - Code 32.
Total pre-tax profit (Code 50):
This item records the total profit earned in reporting year of enterprises before deducting expenses on enterprise income tax from trading, other operations incurred during the reporting period. Code 50 = Code 30 + Code 40.
Current enterprise income tax expense (Code 51):
This item records the current enterprise income tax expenses incurred in reporting year. Figures recorded in this item are based on the total arising number of Credit side of Accounts 8211, " Current enterprise income tax expense" corresponding to the Debit side of Account 911 "income summary" in the detailed accounting books of Account 8211, or based on the arising numbers of the Debit side of Account 8211 corresponding to the Credit side of Account 911 in the reporting
period (in this case figures are written in this item in negative numbers under the form of parentheses (...) in accounting books detailing account 8211).
Deferred enterprise income tax expense (Code 52):
This item records the deferred enterprise income tax expenses or the deferred enterprise income tax income incurred in reporting year. Figures recorded in this item are based on the total arising number of Credit side of Accounts 8212 " Deferred enterprise income tax expense" corresponding to the Debit side of Account 911 "income summary" in the detailed accounting books of Account 8212, or based on the arising numbers of the Debit side of Account 8212 corresponding to the Credit side of Account 911 in the reporting period (in this case figures are written in this item in negative numbers under the form of parentheses (...) in accounting books detailing account 8212).
Profits after enterprise income tax ( Code 60):
This item records the total net profit (or loss) after tax from operations of enterprises (after deducting enterprise income tax expenses) incurred during the reporting year. Code 60 = Code 50 – (Code 51 + Code 52). Earnings per Share (Code 70):
This item records the earnings per share, excluding instruments released in the future, potentially diluting the share value. This item is presented in the financial statements of joint-stock companies being independent enterprises. For parent companies being joint-stock companies, this item is presented in the consolidated financial statements, not presented in the separate financial statements of parent companies.
In case bonus and bonus and welfare funds are deducted from post-tax profits, earnings per share are determined by the following formula:
Earnings per share
=
Profit or loss allocated to shareholders holding common shares
-
Deductions from Bonus and Bonus and welfare fund
Number of weighted mean of common shares circulated in period
The determination of the profit or loss allocated to shareholders holding common shares and the number of weighted mean of common shares circulated in the period is done under the guidance of Circular No. 21/2006 / TT BTC dated March 20, 2006 of the Ministry of Finance and documents amending, supplementing, replacing.
Diluted earnings per share (Code 71):
This item records the diluted earnings per share, taking into account the impact of instruments in the future that may be converted into shares and may dilute the value of shares.
This item is presented in the financial statements of joint-stock companies being independent enterprises. For parent companies being joint-stock companies, this item is presented in the consolidated financial statements, not presented in the separate financial statements of parent companies.
Diluted earnings per share are defined as follows
Diluted earnings per share
=
Profit or loss allocated to shareholders holding common shares
-
Deductions from Bonus and Bonus and welfare fund
Number of weighted mean of common shares circulated in period
+
Number of common shares expected to be released more
Determination of profit (or loss) allocated to shareholders holding common shares used to calculate diluted earnings per share
Profit or loss allocated to common shares
=
Profit or loss after enterprise income tax
-
Amounts adjusted a decrease
+
Amounts adjusted an in crease
If the Company presents earnings per share in the consolidated financial statements, the profit or loss after enterprise income tax in period is the profit or loss after enterprise income tax calculated on the basis of consolidated information. In case the company presents in the separate financial statements, the profit or loss after enterprise income tax in period is the profit or loss after tax of the company.
Amounts adjusted a decrease in profit or loss after enterprise income tax to calculate the profit or loss allocated to common shares when determining diluted earnings per share
a1. Dividends of preference shares: Dividends of preference share include: Dividends of non-cumulative preference shares which are not cumulative notified during the reporting period and dividends of cumulative preference shares arising during the reporting period. Dividends of preference shares are calculated as follows:
Dividend of preference shares
=
Rate of dividend of preference shares
x
face value of preference shares
- The positive difference between the fair value of payments to the owner and the book value of preference shares when joint-stock companies repurchase the preference shares of owners.
- The positive difference between the fair value of common shares or other payments made under conditions for beneficial conversion at the time of payment and the fair value of the common shares issued under original converting condition.
- Dividends or other items related to dilutive potential common shares;
- Gains are recorded in the period related to dilutive potential common shares; and
- Other factors reduce post-tax profits if converting dilutive potential common shares into common shares. For example, the cost to convert the convertible bonds into common shares reducing the profits after enterprise income tax in period.
Determination of adjustments of an increase in profits or losses after enterprise income tax:
- The positive difference between the fair value of payments to the owner and the book value of preference shares when joint-stock companies repurchase the preference shares of owners.
- Factors increase post-tax profits if converting dilutive potential common shares into common shares. For example, the cost to convert the convertible bonds into common shares, enterprises shall be reduced loan interest expense related to the convertible bond and the increase in profit after enterprise income in period.
Number of shares used to calculate diluted earnings per share
Number of shares used to calculate diluted earnings per share is defined as the weighted average of common shares circulated in period are plus (+) the weighted average of common shares which shall be issued more in case all dilutive potential common shares are converted into common shares.
The determination of the number of weighted mean of common shares circulated in the period is done under the guidance of Circular No. 21/2006 / TT BTC dated March 20, 2006 of the Ministry of Finance and documents amending, supplementing, replacing.
b. Determination of number of weighted mean of common shares issued more in period
Common shares that shall be issued in the period considered potential common shares reducing interest of shares; including:
- call option of purchase the warrants and equivalent instruments;
- Convertible financial instruments;
- Common shares issued with conditions;
- Contracts settled in common shares or in cash;
- Purchased option;
- Issued put option.
The determination of the number of common shares that shall be issued in period shall be complied with the provisions of Accounting Standards, "Earnings per Share".

Source: Circular 200, Article 113