After researching the financial statement of VietJet Aviation Joint Stock Company, it’s

obviously that the firm has been applied the Vietnamese Accounting Standards, the
Vietnamese Accounting Systerm and all related requirements in making financial report.

1. VAS 1: Framework
2. VAS 2: Inventories
3. VAS 3: Tangible Assets
4. VAS 4: Intangible Assets
5. VAS 5: Investment Property
6. VAS 6: Leases
7. VAS 7: Accounting for Investments in Associates
8. VAS 8: Financial Reporting of Interests in Joint Ventures
9. VAS 10: The Effects of Changes in Foreign Exchange Rates
10.VAS 11: Business Combination
11.VAS 14: Revenues and other Incomes
12. VAS 15: Construction Contracts
13. VAS 16: Borrowing Costs
14. VAS 17: Income Taxes
15. VAS 18: Provision, Contingent assets, Contingent Liabilities
16. VAS 19: Insurance Contract
17. VAS 21: Presentation of Financial Statements
18. VAS 22: Disclosures in the Financial Statements of Banks and
Similar Financial Institutions
19. VAS 23: Events After the Balance Sheet Date
20. VAS 24: Cash Flow Statements
21. VAS 25: Consolidated financial statements and accounting for investments in subsidiaries
22. VAS 26: Related Parties Disclosures
23.VAS 27: Interim Financial Reporting
24. VAS 28: Segment Reporting
25. VAS 29: Changes in Accounting Policies, Accounting Estimates and Errors
26. VAS 30: Earning per share

I. Applied basic accouting principles in VietJet Aviation Joint Stock Company .

(VAS1: Framework)
1. Accrual basis.
The Company applied Accural Basic Accounting in making the financial reports. All
economic and financial transaction of VietJet Air Company , which are related to assets,
liabilities, owners’ equity, revenues, and costs must be recorded in accounting books at
the time they occurred , not at the time of receipt or payment by cash or cash equivalents.
All financial statements are applied basic accrual should reflect the financial situation of
the company in the past, at present and in the future.

2. Continuous operation
Financial statements must be made on the basis of the assumption that VietJet Company
have been operating continuously and would maintain their business activities in the near
future, i.e., they have no intention or are not compelled to cease operation or to
substantially downscale their operation.

3. Historical cost
All assets in VietJet’s financial statement have been recognized according to their
historical cost. The historical cost of an asset is calculated according to the cash amount
or cash equivalent already pay or to be paid, or according to the appropriate value of the
item at the time it is recognized.

4. Matching
The recognition of revenues and expenses of VietJet Company must be matching. When a
revenues is recorded, a corresponding expenses related to the creation of such revenue
must be recognized. Costs corresponding to revenues include costs of the period in which
revenues are created and costs of the previous periods or payable costs related to the
revenues of such period.

5. Consistency
The accounting policies and methods selected by enterprises must be applied consistently
within at least one accounting year. Where appear changes in the selected accounting
policies or methods, the reasons for and impacts of such changes must be presented in the
explanations of financial statements.

6. Prudence
There is no change in the applied principle accouting in making financial report of VietJet
Air Cpompany.
a/ The reserves must be set up, which must not be too big;
b/ The values of assets and incomes are not overestimated;
c/ The values of liabilities and costs are not underestimated;
d/ Revenues and incomes shall be recognized only when there are solid evidences of the
possibility of obtaining economic benefits, while costs must be recognized when there are
evidences of the possibility of arising costs.
7. Materiality
Materiality depends on the amount and nature of information or errors assessed in
particular circumstances. VietJet Air’s financial reports have been audited by professional
independent auditing KPMG firm. Therefore, materiality of information was examined
both quantitatively and qualitatively carefully.

BASIC REQUIREMENTS FOR ACCOUNTING

a. Honesty
Accounting information and data must be recorded and reported on the basis of adequate
and objective evidences and true to the actual situation, content, nature and values of
arising economic operations.
b. Objectivity
Accounting information and data must be recorded and reported according to reality, not
be distorted nor falsified.
c. Fullness
All arising economic and financial operations related to the accounting period must be
recorded and reported in full, not be omitted.
d. Timeliness
Accounting information and data must be recorded and reported in time, according to or
ahead of prescribed schedule, without delay.
e. Understandability
Accounting information and data presented in the financial statements must be explicit
and easily understandable to users. Users mean people with average knowledge about
business, economics, finance and accounting. Information on complicated matters in the
financial statements must be expounded in the explanation part.
f. Comparability
Accounting information and data of different accounting periods of an enterprise and of
different enterprises may be comparable only when they are calculated and presented in
an uniform way. In case of lack of uniformity, expositions must be given in the
explanation part so that the users of the financial statements may compare information of
different accounting periods, different enterprises, or between execution information and
projected or planned information.
The accounting requirements mentioned in paragraphs 10, 11, 12, 13, 14 and 15 above
must be satisfied simultaneously. For example: The honesty requirement also embraces
the objectivity, timeliness, fullness, understandability and comparability requirements.