Principles of preparation and presentation of financial statements of enterprises meeting assumption of continuous operation
1. The preparation and presentation of financial statements must comply with the provisions of Accounting Standards, "Presentation of financial statements" and other accounting standards related. The important information must be explained to help users understand the true financial situation of enterprises.
2. Financial statements must record exactly the economic substance of transactions and events, rather than the legal form of such transactions and events (respecting nature rather than form).
3. Assets are not recorded higher than the recoverable value; Liabilities are not recorded lower than payment obligations.
4. Classification of assets and liabilities: Assets and liabilities in the Balance sheet must be presented in short and long term; In short-term and long-term parts, items are sorted under decreasing liquidity.
a) Assets or liabilities whose maturity is within 12 months or a production cycle, the ordinary business from the time the report is classified as short-term;
b) Assets and liabilities which are not classified as short term are classified as long-term.
c) When preparing financial statements, accountants must reclassify assets and liabilities classified as long-term in the previous period whose maturity is within 12 months or a production cycle, the ordinary business from the time the report is classified as short-term.
5. Assets and liabilities must be presented separately. Offsetting when assets and liabilities relating to the same entities, with fast turnarounds, short maturities, arising from transactions and events of the same type.
6. The items of revenue, income, expenses must be presented in a consistent principle and ensure the precautionary principle. Income statement and cash flow statement shall record revenues, income, expenses and cash flows of the reporting period. Revenues, income, cost of previous period which have errors affecting income and cash flows must be adjusted retroactively, not be adjusted in the reporting period.
7. When preparing the consolidated financial statements between enterprises and the subordinate units which have no legal status in dependent cost-accounting, balance the internal items of the Balance sheet, revenues, expenses, profits and losses considered to be unearned arising from internal transactions must be excluded.

Source: Circular 200, Article 102