Guidelines on preparation and presentation of cash flow statement (Form B03 - DN)

1. Principles of preparing and presenting cash flow statement
The preparation and presentation of cash flow statement yearly and in interim accounting periods must comply with the provisions of Accounting Standard "Cash flow statement" and Accounting Standards "interim financial statement ". Method for preparation of cash flow statements is guided for the most common transactions, enterprises base on the nature of each transaction to present cash flows accordingly if there is no specific guidance in this Circular. Items without figures are not presented, enterprises may renumber but must not change codes of items.
Short-term investments considered cash equivalents presented in cash flow statements only including short-term investments with recovery term or maturity of within three months may be converted easily into a certain amount and there is no risk of conversion into money from the date of buying such investments at the time of reporting. For example, bank exchange bills, treasury bills, deposit certificates ... with recovery term or maturity of less than 3 months from date of purchase.
Enterprises must present the cash flows in the cash flow Statement in three types of activities: trading, investment and financing activities as prescribed by the standards of "Cash flow statement":
- Cash flows from trading are cash flows arising from activities generating main revenues of enterprises and activities other than investing or financing activities;
- Cash flows from investment are cash flows arising from purchase, construction, liquidation or sale of long-term assets and other investments which are not classified as cash equivalents;
- Cash flows from financial activities are cash flows arising from operations generating changes in the size and structure of owner‘s equity and borrowing capital of enterprises.
Enterprises may present cash flows from trading, investing and financial activities in a manner that best suits to the characteristics of the enterprises.
The following cash flows arising from trading, investing and financial activities are reported on a net basis:
- Collecting money and paying of customers such as rental collected, paid and repaid to the owner of the property;
- Collecting money and paying for items with fast turnarounds, short maturities such as: Buying, selling foreign currencies; buying and selling investments; loans or other short-term loans with payment term of within 3 months.
Cash flows arising from transactions in foreign currency must be converted into the official currency used in accounting books and financial statements under the exchange rate at the arising time of transactions.
Transactions in investments and finance which do not directly use cash or cash equivalents are not presented in the Cash flow statement, for example:
- The purchase of assets by receipt of debts related directly or through finance lease operations;
- The purchase of an enterprise through the issuance of shares;
- The transfer of debt into owner‘s equity.
The cash and cash equivalents at the beginning and end of the period, the effect of changing exchange rates in currency conversion and current cash equivalents in foreign currencies at the end of period must be presented in separate items in Cash flow statements for comparison of figures with the corresponding items in the Balance Sheet.
Enterprises must present values and reasons of cash and cash equivalents which have the great balance at end of period held by enterprises but unused due to the limitation of legislation or other constraints imposed on enterprises.
If enterprises borrow to make payments directly to contractors, suppliers of goods and services (loans are transferred directly from the lender to the contractors and suppliers without being transferred through the accounts of enterprises), enterprises must still present on the cash flow statement, namely:
- The amount borrowed is presented as cash inflows from financing activities;
- The amount paid to suppliers of goods, services or to contractors is presented as cash outflows from trading or investments, depending on each transaction.
In case enterprises incur the offsetting payment for the same object, the presentation in cash flow statement shall comply with the following principles:
- If the offsetting relates to transactions classified in the same cash flows, enterprises shall present on a net basis (in dissimilar barter transactions...);
- If the offsetting relates to transactions classified in different cash flows, enterprises shall not present on a net basis but must present separately the value of each transaction (for example offsetting the selling money receivable with borrowings ...).
12. For the cash flow from repurchases and resale of government bonds and securities REPO transactions: The seller presents it as the cash flow from financial activities; The buyer presents it as the cash flow from investing activities.

2. Basis of preparation of cash flow statement
The preparation of cash flow statement is based on:
- the Balance sheet;
- The income statement;
- The notes to the financial statements;
- The cash flow statement of previous period;
- The other accounting documents, such as: General accounting books, detailed accounting books of accounts "Cash", "Cash in bank", "Cash in transit"; General accounting books and detailed accounting books of the relevant accounts, spreadsheets and allocation of depreciation of fixed assets and other detailed accounting documents...

3. Requirements for opening and recording accounting books served for preparation of cash flow statement
- Accounting book detailing the amounts receivable and payable, inventory must be monitored in detail for each transaction so that it is able to be presented cash flows recovered or paid in three types of activities: Trading, investment and financial activities. For example: Amounts paid to contractors related to fundamental construction are classified as cash flows from investment, amounts paid to suppliers of goods and services for the production and trading are classified as Cash flows from trading.
- Accounting books detailing accounts recording the money must be detailed to monitor the cash flows collected and paid related to three types of activities: trading, investment and financial activities as a general basis in preparation of cash flow statement. For example, for the payment to banks of loan principal and interest, accountants must record separately the amount paid for loan interest as cash flows from trading or investments and the amount paid for loan principal as cash flows from financial activities.
- At the end of the accounting year, when preparing cash flow statements, enterprises must identify short-term investments with recovery term or maturity of less than 3 months from date of purchase which meets the definition of cash equivalents in consistence with the provisions of the Standards "Cash flow statement" to exclude from the cash flows from investment. The value of the cash equivalents are plus (+) to the item "Cash and cash equivalents at end of period" in the cash flow statement.

4. Methods of preparing annual Cash flow statements
Reporting on items of cash flows from trading:
Cash flows from trading record the cash inflows and cash outflows related to production, trading in the period, including cash flows related to securities held for trading purposes.
Cash flows from trading are reported in either methods: direct or indirect method.
Reporting on items of cash flows from trading under direct method (see Form B 03-DN)
Principles of report:
Under the direct method, the cash inflows and cash outflows from trading are determined and presented in the Cash flow statement by analyzing and summarizing directly sums received and paid according to each content of revenues and expenditures from the general accounting books and the details of enterprises.
Method of setting up specific items
- Revenues from sales and service provisions and other revenues (Code 01)
This item is set up based on the total amount collected (total payments) in the period from the sale of goods, finished goods, service provisions, copyright fees, fees, commissions and other revenues (such as sale of trading securities), including amounts collected from the debts receivable related to the sale of goods or provision of services and other revenues arising from the previous period, but received money in current period and the advanced amount of purchasers of goods and services.
This item does not include sums received from liquidation, sales of fixed assets, investment real property, sums received from loans, investment contribution in other units, shared dividends and profits and other revenues classified as cash flows from investment; Sums received from borrowings and capital contributed by the owners classified as cash flows from financial activities.
Figures recorded in this item are from the accounting books of Accounts 111, 112 (money received), accounting books of accounts receivable (details of sums received from sales, service provision immediately paid for liabilities), after comparing with the accounting books of accounts 511, 131 (details of revenues from sales, service provision of which money is paid immediate, the amount of recovery of receivables or advances in period) or Accounts 515, 121 (details of sums received from the sale of trading securities).
- Cash paid to suppliers of goods and services (Code 02)
This item is set up based on the total amount paid in the period due to the purchase of goods and services, payment of service charges for manufacturing, trading, including the amounts spent on buying trading securities and amounts paid for debts payable or advanced to suppliers of goods or services related to production and trading.
This item does not include the amounts spent to purchase of fixed assets, investment real property, construction (including the purchase of raw material used for construction), money spent on lending and investment contribution in other units, and other expenses classified as cash flows from investment; Amounts paid the principal, returned to the owners, dividends and interest paid to owners classified as cash flows from financial activities.
Figures recorded in this item are from the accounting books of Accounts 111, 112 (money paid), accounting books of accounts receivable (details of loans received or debts collected immediately paid for liabilities), after comparing with the accounting books of accounts 331, accounts recording inventories. This item is recorded in negative numbers under the form of parentheses (...).
- Amounts paid to employees (Code 03)
This item is set up based on the total amount paid to employees during the period of salary, wages, allowances, bonuses ... paid or advanced by enterprises.
Figures recorded in this item are from the accounting books of Accounts 111, 112 (detailing payments to employees), after comparing with the accounting books of Account 334 (details of sums paid in cash) in reporting period. This item is written in negative numbers under the form of parentheses (...).
- Interest paid (Code 04)
This item is set up based on the total amount of interest paid during the reporting period, including interest incurred in period and paid in current period, interest payable of previous period paid in current period, interest prepaid in current period.
This item does not include the amount of interest paid during the period capitalized into the value of assets in progress classified as cash flows from investment. In case the interest paid in the period has been capitalized and included in the financial cost, accountants shall base on interest capitalizing rate applied to the reporting period in accordance with the provisions of Accounting Standards ― Borrowing cost " to determine the interest payable of cash flows from trading and cash flows from investments.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 (details of loan interest payments); accounting books of accounts receivable (details of interest payments from sums received from receivables) in the reporting period, after comparing with the accounting books of Account 335, 635, 242 and other related accounts. This item is written in negative numbers under the form of parentheses (...).
- Enterprise income tax paid ( Code 05)
This item is set up based on the total amount paid for enterprise income tax to the State during the reporting period, including the enterprise income tax paid in current period, enterprise
income tax owed from previous period paid in current period and enterprise income tax prepaid (if any).
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 (detailing payments of enterprise income tax), after comparing with the accounting books of Account 3334. This item is written in negative numbers under the form of parentheses (...).
- Other receipts from trading ( Code 06)
This item is set up based on the total amounts received from other sums of trading, in addition to sums recorded in Code 01, such as: Receipts from other income (amounts received from indemnity, fine, bonuses and other revenues ...); Sum received from tax refund; Sum received from receipt of deposits; Sum recovered of deposits; Sum received from non-business, project funding (if any); Sum rewarded, supported by outside organizations or individuals; Sum received recorded an increase in funds paid by the superior or inferior units...
Figures recorded in this item are from the accounting books of Accounts 111, 112 after comparing with the accounting books of accounts 711, 133, 141, 244 and the accounting books of accounts related in the reporting period .
- Other expenditures on trading ( Code 07)
This item is set up based on the total amount spent for other items, in addition to the amounts spent related to production, trading in the reporting period recorded in Code 02, 03, 04, 05 such as: Payments for compensation, penalty and other expenses; Payments of taxes (excluding enterprise income tax); Payments of fees and charges, land rent; Payment of social insurance, health insurance, unemployment insurance, unions fees; Payments for deposits; Refund of receipt of deposits, direct expenditure by provisions payable; direct expenditure from bonus and bonus and welfare fund; science and technology fund; Direct expenditures from other funds of owner‘s equity; direct expenditures from non-business, project funding ...
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 in the reporting period, after comparing with the accounting books of Account 811, 161, 244, 333, 338, 344, 352, 353, 356 and other related accounts. This item is written in negative numbers under the form of parentheses (...).
- Net cash flow from trading ( Code 20)
Item "Net cash flow from trading " records the difference between the total amount received and the total amount paid from trading during the reporting period. Figures recorded in this item are calculated on the total figures of items from Code 01 to Code 07. If the figures in this item are negative numbers, they shall be shown in parentheses (...).
Code 20 = Code 01 + Code 02 + Code 03 + Code 04 + Code 05 + Code 06 + Code 07.
Reporting on items of cash flows from trading under indirect method (see Form B 03-DN)
Principles of report:
Under the indirect method, cash inflows and cash outflows from trading are calculated and determined primarily by adjusting the profit before enterprise income tax of trading out of impact of non-cash items, changes in the period of inventory, receivables and payables from trading and amounts of which cash impact is the cash flows trading, including:
- The non-cash expenses such as: depreciation of fixed assets, provisions ...
- Non-cash profits and losses such as profit and loss of exchange rate differences, capital contributions by non-monetary assets;
- Profits and losses classified as cash flows from trading, such as: Profits or losses in liquidation, sales of fixed assets and investment real property, interest from loans, interest from deposits, shared dividends and profits...; Interest expenses recorded in income statements in the period.
- Cash flows from trading adjusted continuously to the change in working capital, long-term prepaid expenses and other revenues and expenses from trading, such as:
Changes in the reporting period of inventory item, receivables, payables from trading;
Changes in prepaid expenses;
Interest paid;
Paid enterprise income tax;
Other receipts from trading;
Other expenses from trading.
Method of setting up specific items
- Pre-tax profits ( Code 01)
This item is from the item the total pre-tax accounting profit (Code 50) in the income statements in the reporting period. If this figure is negative (loss), it is recorded in parentheses (...).
- Depreciation of fixed assets and investment real property (Code 02)
In case enterprises separate the depreciation in inventory and the depreciation counted in the income statements in the period: Item "Depreciation of fixed assets and investment real property" only includes the depreciation counted in the income statements in the period; Item "Increase or decrease in inventory" does not include the depreciation in the value of inventories at the end of the period (undetermined to be consumed in period);
In case enterprises cannot separate the depreciation in inventory and the depreciation counted in the income statements in the period: Item "Depreciation of fixed assets and investment real property" includes the depreciation counted in the income statements in the period are plus the depreciation related to inventories unconsumed; Item "Increase or decrease in inventory" includes the depreciation of fixed assets in the value of inventories at the end of the period (undetermined to be consumed in period);
In all cases, enterprises must exclude the depreciation in the value of construction in progress, the depreciation recorded a decrease in funding, bonus and bonus and welfare fund that forms fixed assets, decrease in science and technology development fund that forms fixed assets in the period from the Cash flow statement. This figure is plus (+) to the figure of the item "Pre-tax profit ".
- Provisions (Code 03)
This item records the influence of the setting, refund and use of provisions to the cash flows of the reporting period. This item is set up based on the difference between the beginning balance and the ending balance of provisions for asset losses (provisions for devaluation of trading securities, provision for loss of financial investment, provisions for devaluation of inventories, provisions for bad debts) and provisions payable in the balance sheet.
Figures of this item are plus (+) to the figures of "Pre-tax profit " if the total ending balance of the provision is greater than the total beginning balance or is subtracted from the figures of item "Pre-tax profit " if the total ending balance of the provision is less than the total beginning balances and recorded in negative numbers under the form of parentheses (...).
- Profits / losses of exchange rate differences from revaluation of accounts derived from foreign currencies (Code 04)
This item records the interests (or losses) of exchange rate differences from revaluation of accounts derived from foreign currencies recorded in pre-tax profit in the reporting period. This item is set up based on the difference of Credit arising numbers and Debit arising numbers of Account 4131 compared with the accounting books of Account 515 (details of interest from revaluation of accounts derived from foreign currencies) or Account 635 (details of losses from revaluation of accounts derived from foreign currencies).
Figures in this item are subtracted (-) from the figures of the item "Pre-tax profit ", if there are interests in exchange differences, or are plus (+) to the item "Pre-tax profit ", if there are losses in exchange differences.
- Profits / losses from investment (Code 05)
This item is based on the total profit or loss arising in the period recorded in pre-tax profit, but classified as cash flows from investment, including:
Gains and losses from liquidation, sales of fixed assets, investment real property;
Gains and losses from the revaluation of non-monetary assets contributed as capital, investment in other units
Gains and losses from the sale or recovery of financial investments (excluding profit or loss of buying and selling trading securities), such as: investments in subsidiaries, joint ventures and associates; Investments held to maturity;
Losses or refund of losses of investments held to maturity;
Loan interest, deposit interest, dividends and profits shared.
This item is set up based on the accounting books of Accounts 5117, 515, 711, 632, 635, 811 and other related accounts (details of profit and loss defined as cash flows from investment) during the reporting period.
Figures in this item are subtracted (-) from the figures of item "Pre-tax profits" if investment has net profits recorded in negative numbers under the form of parentheses (...); or are plus (+) to item "Pre-tax profit ", if investment has net losses.
- Interest expense (Code 06)
This item records interest expense recorded in income statements in the reporting period, including the costs of bond issuance of common bonds and convertible bonds; The interest expense every period according to the actual interest rate recorded an increase in the debt component of convertible bonds. This item is set up based on the accounting books of account 635 (details of interest expense in reporting period) after comparing with the item "Interest expense" in the report on income.
Figures in this item are added to the figures of item "Pre-tax profit "
- Other adjustments (Code 07)
This item records the deduction or refund the Price Stabilization Fund or the scientific and technological development Fund in the period. This item is set up based on the accounting books of accounts 356, 357.
Figures of this item are added to the figures of item "Pr—tax profits" if during the period, more funds are set up or are subtracted from the item "Pre-tax profit " if during the period, funds are refunded.
- Operating profit before changes in working capital (Code 08)
This item records the cash flows generated from operating activities during the reporting period after excluding the impact of items of non-cash income and expense. This item is set up based on the profit before enterprise income tax are plus (+) adjustments. Code 08 = Code 01+ Code 02 +
Code 03 + Code 04 + Code 05 + Code 06 + Code 07. If the figures in this item are negative number, they shall be shown in parentheses (...).
- Increase or decrease in amounts receivable (Code 09)
This item is set up based on the total difference between the ending balance and the beginning balance of accounts receivable (details related to manufacturing, business), such as: Accounts 131, 136 , 138, 133, 141, 244, 331 (details of prepaid amounts to the sellers) during the reporting period.
This item does not include amounts receivable related to investment, such as: The amount advanced for construction contractors; Receivables on loans (principal and interest); Receivables on deposit interest, dividends and profit shared; Receivables on liquidation, sales of fixed assets, investment real property, financial investments; Value of fixed assets pledged or mortgaged ...
Figures in this item are plus (+) to the item "Operating profit before changes in working capital" if the total ending balances are less than the total opening balances. Figures of this item are subtracted (-) from figures of the item "Operating profit before changes in working capital" if the total ending balances are greater than the total beginning balances and recorded in negative numbers under the form of parentheses (...).
- Increase or decrease in inventories (Code 10)
This item is set up based on the total difference between the ending balance and the beginning balance of the inventory accounts (excluding the balance of the account "Provision against devaluation of goods in stock "on the basis of having excluded: Value of inventory used for investment for construction or inventory used in exchange for fixed assets, investment real property; trial production costs counted on the cost of fixed assets formed from construction. In case of any purchase inventory in period which is not identified use purposes (for trading or investment in construction), the value of inventories is included in this item.
In case enterprises separate the depreciation of fixed assets in inventory and the depreciation counted in the income statements in the period (item "Depreciation of fixed assets‖- code 02 only includes the depreciation counted in the income statements in the period), this item does not include the depreciation of fixed assets in the value of inventories (undetermined to be consumed in period);
In case enterprises cannot separate the depreciation of fixed assets in inventory and the depreciation counted in the income statements in the period (item "Depreciation of fixed assets‖- code 02 include the depreciation of fixed assets related to unconsumed inventories), this item does not include the depreciation of fixed assets in the value of inventories at the end of period (undetermined to be consumed in period);
Figures in this item are plus (+) the item "Operating profit before changes in working capital" if the total ending balances are less than the total beginning balances. Figures of this item are subtracted (-) from the item "Operating profit before changes in working capital" if the total
ending balances are greater than the total beginning balances and recorded in negative numbers under the form of parentheses (...).
- Increase or decrease in amounts payable (Code 11)
This item is set up based on the total difference between the ending balance and the beginning balance of debts payable (details related to manufacturing, business), such as: Accounts 331, 333, 334, 335, 336, 337, 338, 344, 131 (details of prepaid amounts of the sellers)
This item does not include enterprise income tax (arising Credit 3334), loan interest payable (arising Credit 335, details of loan interest payable).
This item does not include amounts payable related to investment, such as amounts prepaid by purchasers related to the liquidation or sale of fixed assets, investment real property; Payables related to purchasing, construction of fixed assets, investment real property; Payables to buy the capital and debt instruments ..; and payables related to financial activities, such as: principal payables, bond principal, finance lease liabilities; Dividends, profits payable.
Figures in this item are plus (+) the item "Operating profit before changes in working capital" if the total ending balances are greater than the total opening balances. Figures of this item are subtracted (-) from figures of the item "Operating profit before changes in working capital" if the total ending balances are less than the total beginning balances and recorded in negative numbers under the form of parentheses (...).
- Increase or decrease in prepaid expenses (Code 12)
This item is set up based on the total difference between the ending balance and the beginning balance of Account 242 "prepaid expenses" in the reporting period on the basis of having excluded prepaid expenses related to cash flow from investment, such as: land rents qualified for being recorded as intangible assets and prepayments of interest capitalized.
Figures in this item are plus (+) the item "Operating profit before changes in working capital" if the total ending balances are less than the total opening balances. Figures of this item are subtracted (-) from figures of the item "Operating profit before changes in working capital" if the total ending balances are greater than the total beginning balances and recorded in negative numbers under the form of parentheses (...).
- Increase or decrease in trading securities (Code 13)
This item is set up based on the total difference between the ending balance and the beginning balance of Account 121 "trading securities" in the reporting period.
Figures in this item are plus (+) the item "Operating profit before changes in working capital" if the total ending balances are less than the total opening balances. Figures of this item are subtracted (-) from figures of the item "Operating profit before changes in working capital" if the total ending balances are greater than the total beginning balances and recorded in negative numbers under the form of parentheses (...).
- Interest paid (Code 14)
This item is set up based on the total amount of interest paid during the reporting period, including interest incurred in period and paid in current period, interest payable of previous period paid in current period, interest prepaid in current period.
This item does not include the amount of interest paid during the period capitalized into the value of assets in progress classified as cash flows from investment. In case the interest paid in the period has been capitalized and included in the financial cost, accountants shall base on interest capitalizing rate applied to the reporting period in accordance with the provisions of Accounting Standards ― Borrowing cost " to determine the interest payable of cash flows from trading and cash flows from investments.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 (details of loan interest payments); accounting books of accounts receivable (details of interest payments from sums received from receivables) in the reporting period, after comparing with the accounting books of Account 335, 635, 242 and other related accounts.
Figures in this item are subtracted (-) from the item "Operating profit before changes in working capital" and are written in negative numbers under the form of parentheses (...).
- Enterprise income tax paid ( Code 15)
This item is set up based on the total amount paid for enterprise income tax to the State during the reporting period, including the enterprise income tax paid in current period, enterprise income tax owed from previous period paid in current period and enterprise income tax prepaid (if any).
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 (detailing payments of enterprise income tax), after comparing with the accounting books of Account 3334. Figures of this item are subtracted (-) from the item "Operating profit before changes in working capital" and are written in negative numbers under the form of parentheses (...).
- Other receipts from trading ( Code 16)
This item records receipts arising from trading other than those stated in the Code from 01 to 14, such as: receipts from non-business, project funding (if any); Funds rewarded or supported by outside organizations and individuals recorded an increase in funds of enterprises; Sum received recorded an increase in funds paid by superior or subordinate units; Interest on deposits of price stabilization Fund (if it not recorded in revenue from financial activities but recorded an increase
in Fund directly); Sum received from equitization in equitized enterprises... during the reporting period.
This item is set up based on the accounting books of Accounts 111, 112, 113 after comparing with accounts related in the reporting period. Figures in this item are plus (+) figures in item "Operating profit before changes in working capital".
- Other expenditures on trading ( Code 17)
This item records expenses arising from trading other than those stated in the Code from 01 to 14, such as: expenses from Bonus and bonus and welfare fund, science and technology development Fund; Direct expenses from non-business, project funding; Direct expenses from sums received from equitization paid to superiors, owners; Equitization expenses, subsidy to employees under policies ...
This item is set up based on the accounting books of Accounts 111, 112, 113 after comparing with accounts related in the reporting period. Figures in this item are subtracted (-) from figures in item "Operating profit before changes in working capital".
- Net cash flow from trading ( Code 20)
Item "Net cash flow from trading " records the difference between the total amount received and the total amount paid from trading during the reporting period. Figures recorded in this item are calculated on the total figures of items from Code 08 to Code 16. If the figures in this item are negative numbers, they shall be shown in parentheses (...).
Code 20 = Code 08 + Code 09 + Code 10 + Code 11 + Code 12 + Code 13 + Code 14 + Code 15 + Code 16 + Code 17
Making reports on items of cash flows from trading:
Principles of report:
- Cash flow from investment is prepared and presented in the Cash flow statement separately the cash inflows and cash outflows, except where cash flows are reported on a net basis mentioned in paragraph 18 of the Standard "Cash flow statement"
- Cash flows from investment are established under the direct or adjusted direct methods.
Under the direct method, the cash inflows and cash outflows from investment are determined by analyzing and summarizing directly sums received and paid according to each content of revenues and expenditures from accounting recordings of enterprises.
Under the adjusted direct method, cash inflows and outflows in the period are determined by the difference between the ending balances and opening balances of items in the balance sheet related, then adjusted for the effects of non-monetary items.
This Circular provides guidelines on establishment of cash flows from investment under the direct method. In case of establishing under the adjusted direct method, enterprises may apply the method of preparation of the consolidated cash flow statements prescribed in Circular No. 202/2014 / TT-BTC dated December 22, 2014 of the Ministry of Finance providing guidance on the preparation and presentation methods of consolidated financial statements and documents amending, supplementing or replacing.
b) Method of setting specific items under the direct method (See Form No. B03-DN)
- Expenditures for purchase, construction of fixed assets and other long-term assets (Code 21)
This item is set up based on the total amount actually spent on purchase, construction of tangible fixed assets, intangible fixed assets, amounts spent on the commence stage that has been capitalized as intangible fixed assets, amounts spent on investment, construction in progress, investment real property in the reporting period. Cost of trial production after offsetting with the amounts received from the sale of test products of fixed assets formed from construction activities added to this item (if expenditures are greater than revenues) or subtracted from this item (if revenues are greater than expenditures).
This item records the amount actually paid for the purchase of materials, properties, used for construction which have not delivered for use for capital investment until the end of the period; Amounts advanced for contractors of construction of which volume has not been accepted; Amounts paid to the seller in period related directly to purchase, investment of construction.
In case of buying raw materials, assets used for both purposes of production, trading and investment in construction of which value is not determined to be used for capital investment or production, trading at the end of period, the amount paid is not recorded in this item but in cash flows from trading .
This item does not include amounts received from finance lease liabilities, the value of other non-monetary assets used for payment for the purchase of fixed assets, investment real property, construction or the value of fixed assets, investment real property, construction increased in the period but not yet paid in cash.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 (detailing amounts spent on purchase, construction of fixed assets and other long-term assets, including the interest paid capitalized ), accounting books of accounts receivable (detailing amounts received from debts transferred immediately to pay for purchase, construction), accounting books of Account 3411 (details of the loan paid immediately to the seller), accounting books of Account 331 (details of advances or payments to construction contractors, payments to the sellers of fixed assets, investment real property), after comparing with the accounting books of accounts 211,
213, 217, 241 during the reporting period . This item is written in negative numbers under the form of parentheses (...).
- Sums received from liquidation, sale of fixed assets and other long-term assets (Code 22)
This item is set up based on the net amount received from the liquidation or sale of tangible fixed assets, intangible fixed assets and investment real property in the reporting period, including the amount recovered of debts receivable related directly to the liquidation or sale of fixed assets and other long-term assets.
This item does not include receipts in non-monetary assets or amounts receivable which have not yet received in the reporting period from the liquidation, sale of fixed assets, investment real property and other long-term assets; Non-cash expenses related to the liquidation or sale of fixed assets, investment real property and the net book value of fixed assets, investment real property contributed in joint venture, association or losses.
Figures recorded in this item are the difference between amounts received and paid for liquidation, sale of fixed assets, investment real property and other long-term assets. Sum received from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of accounts 711, 5117, 131 (details of sum received from liquidation or sale of fixed assets, investment real property and other long-term assets) during the reporting period. The amount paid is from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of accounts 632, 811 (Details on liquidation or sale of fixed assets, investment real property) in the reporting period . This item is written in negative numbers under the form of parentheses (...) if the amount actually received is less than the amount actually paid.
- Expenditures on borrowing and purchase of debt instruments of other units (Code 23)
This item is set up based on the total amount deposited in banks with a term of more than 3 months, the amount paid for the other loans, the money paid by the buyer in the repurchase of government bonds and securities REPO, amount paid for purchase debt instruments of other units (bonds, commercial paper, preference shares classified as liabilities ...) for the purpose of investment held to maturity during the reporting period.
This item does not include amounts spent on purchase of debt instruments considered as cash equivalents and purchase of debt instruments held for trading purposes (profit from the difference in market prices); Loans, purchase of debt instruments paid by non-monetary assets or refinance.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of Account 128, 171 in the reporting period. This item is written in negative numbers under the form of parentheses (...).
- Amounts recovered on borrowing and repurchase of debt instruments of other units (Code 24)
This item is set up based on the total amount received from withdrawal of bank deposits of which term is more than 3 months, the money received from the buyer in the repurchase of government bonds and securities REPO, amounts recovered from principal lent, bond principal, preference shares classified as liabilities and debts instruments of other units during the reporting period.
This item does not include sums received from the sale of debt instruments considered cash equivalents and sale of debt instruments classified as trading securities; Sums recovered in non-monetary assets or transfer of debt instruments into equity instruments of other units.
Figures recorded in this item are from the accounting books of Accounts 111, 112 after comparing with the accounting books of accounts 711, 133, 141, 244 in the reporting period.
- Expenditures on investments in other units (Code 25)
This item is set up based on the total amount paid to invest in equity instruments of other units in the reporting period (including debt payments to buy capital instruments from the previous capital), including expenditures on capital investment under the form of common shares with voting right, buying preference shares classified as owner‘s equity, contribution to the subsidiaries, joint ventures, associated companies, ...
This item does not include sums spent on buying shares held for trading purposes; sums paid to buy preference shares classified as liabilities, Investments in other units in non-monetary assets; investment under the form of issuing shares or bonds; Transfer of debt instruments into contributions or unpaid debts.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of Accounts 221, 222, 2281, 331 in the reporting period and are written in negative numbers under the form of parentheses (...).
- Sums recovered from capital investments in other units (Code 26)
This item is set up based on the total amount recovered by resale or liquidation of capitals invested in other units in the reporting period (including the sums receivable from sale of equity instruments in previous period) .
This item does not include sums received from the sale of shares held for business purposes; The value of the investment recovered by non-monetary assets, debt or equity instruments of other units; Or sums that have not been paid in cash.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 after comparing with the accounting books of accounts 221, 222, 2281, 131 in the reporting period .
- Sums received from loan interest, dividends and profits shared (Code 27)
This item is set up based on sums received from loan interest, deposit interest, bond interest, dividends and profits received from capital investments in other units in the reporting period. This item does not include the interest, dividends received by shares or by non-monetary assets.
Figures recorded in this item are from the accounting books of Accounts 111, 112, after comparing with the accounting book of Account 515 .
- Net cash flow from investment ( Code 30)
Item "Net cash flow from investment " records the difference between the total amount received and the total amount paid from investment during the reporting period. This item is calculated on the total figures of items from Code 21 to Code 27. If the figures in this item are negative numbers, they shall be shown in parentheses (...).
Code 30 = Code 21 + Code 22 + Code 23 + Code 24 + Code 25 + Code 26 + Code 27.
Making reports on items of cash flows from financial activities:
Principles of report:
- Cash flow from financial activities is prepared and presented in the Cash flow statement separately the cash inflows and cash outflows, except where cash flows are reported on a net basis mentioned in paragraph 18 of the Standard "Cash flow statement"
- Cash flows from financial activities are established under the direct or adjusted direct methods.
Under the direct method, the cash inflows and cash outflows from financial activities are determined by analyzing and summarizing directly sums received and paid according to each content of revenues and expenditures from accounting recordings of enterprises.
Under the adjusted direct method, cash inflows and outflows in the period are determined by the difference between the ending balances and opening balances of items in the balance sheet related, then adjusted for the effects of non-monetary items.
This Circular provides guidelines on establishment of cash flows from financial activities under the direct method. In case of establishing under the adjusted direct method, enterprises may apply the method of preparation of the consolidated cash flow statements prescribed in Circular No. 202/2014 / TT-BTC dated December 22, 2014 of the Ministry of Finance providing guidance on the preparation and presentation methods of consolidated financial statements and documents amending, supplementing or replacing.
b. Method of setting specific items under the direct method (See Form No. B03-DN)
- Sums received from issuance of shares and receipt from contributions of the owners (Code 31)
This item is set up based on the total amounts received from contributions of owners of enterprises during the reporting period. This item does not include loans and debt converted into capital, undistributed post-tax profits profit converted into contributions (including payment of dividends by shares) or receipts contribution of owners in non-monetary assets.
For joint stock companies, this item records the amount received from the issuance of common shares issued at issued actual prices, including sums received from the issuance of preference shares classified as owner‘s equity and options of convertible bonds but excluding amounts received from issuing preference shares classified as liabilities.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 after comparation with the accounting book of account 411 in the reporting period .
- Repayment of contributions to owners, repurchase of stock issued (Code 32)
This item is set up based on the total amount paid due to refund of contributions to the owners of enterprises under the forms of cash repayment or repurchase of stocks of enterprises issued in cash to cancel or use as treasury shares during the reporting period.
This item does not include refund of preference shares classified as liabilities, owner‘s contributions in non-monetary assets or contributions used for business offsetting.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of Account 411, 419 in the reporting period. This item is written in negative numbers under the form of parentheses (...).
- Sums received from borrowings (Code 33)
This item is set up based on the total amount received during the period because enterprises borrow from financial institutions and credit institutions and other objects in the reporting period, including loans under the form of common bond issuance or convertible bonds or preference shares which require the issuer to repurchase at a certain time in the future (classified as liabilities). This item also includes the amount received by sellers in repurchase of government bonds and other securities Repo transactions. This item does not include borrowings in non-monetary assets or financial lease liabilities.
In case of borrowing under the form of issuance common bonds, this item records the total amount received during the period (in face value of bonds adjusted for discounts, additional bonds or bond interest prepaid - if any);
In case of borrowing under the form of issuance of convertible bonds, this item records the amount corresponding to the principals of the convertible bonds;
In case of borrowing under the form of preference shares, this item records the total amount received during the period because enterprises issue preference shares classified as liabilities due to the conditions requiring issuers to repurchase shares at a certain time in the future. In case of
the provisions requiring issuers to only repurchase shares from holders at par value, this item only records the amount received at par value of preference shares (sums received higher than par value accounted share premium presented in item "Sums received from issuance of shares and receipts of contribution of owners" (No. 31));
In case of borrowing under the repurchase of government bonds, this item records the total amount received during the period in the seller in repurchase of government bonds and securities REPO.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, accounts payable ( details of loans received paid immediately for debts payable) after comparing with the accounting books of accounts 171, 3411, 3431, 3432, 41112 and other related accounts in the reporting period .
- Payment of loan principal (Code 34)
This item is set up based on the total amount paid for the loan principal, including payment of principal of common bonds, convertible bonds or preference shares with terms requiring issuers to repurchase at a certain time in the future (classified as liabilities) during the reporting period. This item also includes the amount paid to the seller by the buyer in the repurchase of government bonds and other securities Repo transactions.
This item does not include payments of loan principal in non-cash asset or transfer the debt to contribution.
Figures recorded in this item are from the accounting books of Accounts 111, 112, accounts receivable( sums paid for loan from sums received from receivable) after comparing with the accounting books of Account 171, 3411, 3431, 3432, 41112 in the reporting period . This item is written in negative numbers under the form of parentheses (...).
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of Account 171 in the reporting period. This item is written in negative numbers under the form of parentheses (...).
- Payments of finance lease principal (Code 35)
This item is set up based on the total amount paid on finance lease liabilities during the reporting period. This item does not include finance lease liabilities in non-monetary assets or transfer of finance lease liabilities into contribution.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113 accounts receivable (details of sums paid for finance lease liabilities from sums received from receivables) after comparing with the accounting books of Account 3412 in the reporting period. This item is written in negative numbers under the form of parentheses (...).
- Dividends and interest paid to owners (Code 36)
This item is set up based on the total dividends and interest paid to owners of enterprises (including personal income tax paid on behalf of owners) in the reporting period.
This item does not include profits converted into contributions of the owners, payment dividends by shares or by non-monetary assets and profits used to set up funds.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, after comparing with the accounting books of Account 421, 338 ( details of sums paid for dividends and profits) in the reporting period. This item is written in negative numbers under the form of parentheses (...).
- Net cash flow from financial activities ( Code 40)
Item "Net cash flow from financial activities " records the difference between the total amount received and the total amount paid from financial activities during the reporting period. This item is calculated on the total figures of items from Code 31 to Code 36. If the figures in this item are negative numbers, they shall be shown in parentheses (...). Code 40 = Code 31 + Code 32 + Code 33 + Code 34 + Code 35 + Code 36.
Summary of cash flows in the period (See Form No. B03-DN)
- Net cash flows in the period (Code 50)
Item "Net cash flows in the period" records the difference between the total amount received and the total amount paid in three types of activities: trading, investment and financial activities of enterprises in reporting period. Code 50 = Code 20 + Code 30 + Code 40. If figures in this item are negative numbers, they are shown in parentheses (...).
- Cash and cash equivalents at beginning of period (Code 60)
This item is set up based on the figures of item "Cash and cash equivalents" at the beginning of the reporting period (Code 110, column "The Beginning" n the Balance Sheet).
- Influence of exchange rate changes in foreign currency conversion (Code 61)
This item is set up based on the total exchange differences due to revaluation the ending balance of cash and cash equivalents in foreign currencies (Code 110 of the Balance Sheet) at the end of reporting period.
Figures recorded in this item are from the accounting books of Accounts 111, 112, 113, 118 and related accounts (details of items satisfying the definitions of cash equivalents ), after comparing with the accounting books of Account 4131 in reporting period. This item is recorded in positive numbers if there is gain on forex and in negative numbers under the form of parentheses (...) if there is loss on forex.
- Cash and cash equivalents at end of period (Code 70)
This item is set up based on the figures of item "Cash and cash equivalents" at the end reporting period (Code 110, column "The end" in the Balance Sheet).
This item is equal to the "Total" of the items Code 50, 60 and 61 and the item Code 110 in the Balance Sheet at that period. Code 70 = Code 50 + Code 60 + Code 61.

Source: Circular 200, Article 114