Name: DAO MAI LINH

CLASS: F13B
ID NUMBER: F13-127

Unit Code, Number and Title Unit 10: Financial Accounting

Semester and Academic Year Semester 1, 2020 – 2021

Unit Assessor(s) Ms.Nguyen Thi Thanh Mai and Dr.Le Thi Thu Ha

Assignment Number and Title A2: Financial Accounting (2 of 2)

Issue Date

Submission Date To be announced by office

IV Name Dr. Le Thi Thu Ha (IV) and Dr. Doti Chee (Lead IV)

IV Date

Submission Format

The submission is in the form of an individual written report. This should be written in a concise, formal
business style using 1.5 spacing and font size 12. You are required to make use of headings, paragraphs
and subsections as appropriate, and all work must be supported with research and referenced using the
Harvard referencing system. Please also provide a bibliography using the Harvard referencing system.
The submission is in the form of a portfolio of prepared financial accounts and written reflective
summaries that examine the differences between the financial accounts and the control reconciliations
prepared. These are to be produced for a range of different businesses e.g. sole traders, partnerships and
limited companies.

Unit Learning Outcomes

LO2 Prepare final accounts for sole traders, partnerships or limited companies in accordance with appropriate
principles, conventions and standards

LO3 Perform bank reconciliations to ensure company and bank records are correct

LO4 Reconcile control accounts and shift recorded transactions from the suspense accounts to the right accounts
Assignment Brief and Guidance

Scenario and activity

You are a junior accountant in a small accountancy firm and you have been asked to prepare and produce a range of
final accounts for a number of different businesses. You have been provided with a range of individual companies
financial details from which to create a general ledger, a trial balance, income statement and balance sheet. You will
need to make adjustments as required and once the general ledger is completed you will also have to check the bank
statements provided to make any bank reconciliations. Once completed you will present to your line manager a
portfolio of final accounts that includes a reflective summary that compares the different types of accounts produced.

You have also been given a number of company ledgers where errors have been detected and control accounts to
check over and reconcile, these will also be included in your portfolio. In addition to this a summary explanation of
the control reconciliation process is to be presented to identify how and why you made reconciliations for each one.

Scenario 1:
Ngoi Sao plc's trial balance as at 31 October 2020 is shown below.
£'000 £'000
Ordinary share capital (£1 shares) 15,000
Share premium 3,750
Trade payables 2,099
Land and buildings – cost 26,364
Land and buildings – accumulated depreciation at 1 November 2020
5,250
Plant and equipment – cost 9,375
Plant and equipment – accumulated depreciation at 1 November 2020
5,550
Trade receivables 4,077
Accruals at 31 October 2020 327
8% bank loan repayable in 10 years 11,250
Cash at bank 7,331
Retained earnings 7,351
Interest paid 450
Gross profit 11,728
Distribution costs 4,082
Administrative expenses 3,592
Closing inventories 5,909
Dividends paid 1,125
62,305 62,305
Further information
(1) Depreciation is to be provided for the year as follows:
Buildings 2% per annum Straight line basis
Plant and equipment 20% per annum Reducing balance basis
Depreciation is apportioned as follows:
%
Distribution costs 60
Administrative expenses 40
Land, which is non-depreciable, is included in the trial balance at a cost of £11,364,000.
(2) The company began a series of television adverts for the company's range of products on 1 October 2020 at a
cost of £33,000. The adverts were to run for three months and were to be paid for in full at the end of December
2020. Advertising expenses are to be included in distribution costs.
(3) Interest on the bank loan for the last six months of the year has not been included in the accounts in the trial
balance.
(4) The corporation tax charge for the year has been calculated as £728,000.
(5) During the year Ngoi Sao plc rented some additional warehouse space. Ngoi Sao plc have paid rent until
31 December 2020. The annual rent is £48,000 and is charged to distribution costs.
(6) Ngoi Sao plc made a 1 for 5 bonus share issue during the year from share premium. The bonus issue has not
yet been accounted for.
(7) Volan plc is a customer of Ngoi Sao plc with a debt of £35,000. On 29 October 2020, Ngoi Sao plc received a
letter from the liquidator of Volan plc to advise that the debt would not be paid. No accounting has taken place
in respect of irrecoverable debts. Irrecoverable debts should be charged to administration costs.
(8) An item of plant and equipment was damaged in a flood on 30 October 2020. At 31 October 2020 the carrying
amount of the item (after deducting depreciation for the year) was £55,000, the value in use was assessed as
£36,000 and the far value less disposal costs was £40,000. Impairment is charged to administration costs.
(9) A cheque sent to a supplier for £69,000 has been incorrectly recorded as £96,000.
Requirement
Prepare the statement of profit or loss for Ngoi Sao plc for the year ended 31 October 2020 and the statement of
financial position at that date.

Scenario 2:
Requirement: Make bank reconciliation, correction of errors and adjusting entries for Pink and recalculate the net
profit/net loss of Pink for the period.
Pink's business bank statement showed an overdrawn balance of £5,800 on 31 May 20X7. When this was reconciled to
the cash at bank account, the following differences were noted:
£
(1) Bank charges not recorded in cash at bank account 30
(2) Standing order for local property tax not entered in cash at bank account 300
(3) Outstanding lodgements 1,300
(4) Credited in error to Pink's account by the bank 100

Pink’s draft accounts show a net loss of £22,000 for the year. On additional investigation you discover the following.
(5) £2,000 of repairs had been incorrectly recorded as a purchase of machinery on the last day of the year.
(6) Cash of £500, received in respect of a debt written off many years ago, had been credited to receivables.
(7) Closing inventory includes items costing £1,000 which were sold and delivered to the customer on the year
end date.
(8) Goods invoiced at £25 had been returned by Pink to the supplier for a full refund. The only accounting
entry made for the return was to debit the purchases account and credit the suspense account with £52.

Scenario 3: Internet excercise

- Visit the Vinamilk homepage. Access the most recent annual report (English version). Locate the titled
“Revenue” in the Income Statement for the year ended 31 st December 2019. Please review the
explanation of the company’s policies related to Revenue Recognition and indicate which items the
revenue includes? (show details of figures, accounting policy)
- Explain how the income statement and the statement of changes in equity relate to the balance sheet?
What are the meanings of these statements? Apply for financial statement of Vinamilk.
Learning Outcomes and Assessment Criteria
Pass Merit Distinction
LO2 Prepare final accounts for sole-traders, partnerships and limited
companies in accordance with appropriate principles, conventions and
standards
D2 Compare the essential
P3 Prepare final accounts M2 Make adjustments to features of each financial
from given trial balance. balances of sum accounts account statement to
for example, accruals, analyse the differences
P4 Produce final accounts depreciation and between them in terms
for a range of examples prepayments before purpose, structure and content
that include sole-traders, preparing the final
partnerships or limited accounts.
companies.
LO3 Perform bank reconciliations to ensure company and bank records are D3 Prepare accurate bank
correct reconciliations that apply appropriate
tools and techniques to check general
P5 Apply the bank reconciliation M3 Apply the reconciliation process accounts and balance sheets.
process to prepare a number of bank demonstrating the use of deposit in
reconciliations. transit, outstanding checks and Not
Sufficient Funds (NSF) check.
LO4 Reconcile control accounts and shift recorded transactions from the D4 Produce accurate accounts that
suspense accounts to the right accounts have been reconciled applying the
appropriate methods.
P6 Explain the process taken to M4 Demonstrate understanding of
reconcile control accounts and clear the different types of accounts and
suspense accounts using given how and why they are reconciled.
account examples.
(1) Interest on the bank loan for the last six months of the year has not been included in the accounts
in the trial balance.
(2) The corporation tax charge for the year has been calculated as £728,000.
(3) During the year Ngoi Sao plc rented some additional warehouse space. Ngoi Sao plc have paid
rent until 31 December 2020. The annual rent is £48,000 and is charged to distribution costs.
(4) Ngoi Sao plc made a 1 for 5 bonus share issue during the year from share premium. The bonus issue
has not yet been accounted for.
(5) Volan plc is a customer of Ngoi Sao plc with a debt of £35,000. On 29 October 2020, Ngoi Sao plc
received a letter from the liquidator of Volan plc to advise that the debt would not be paid. No
accounting has taken place in respect of irrecoverable debts. Irrecoverable debts should be charged to
administration costs.
(6) An item of plant and equipment was damaged in a flood on 30 October 2020. At 31 October 2020
the carrying amount of the item (after deducting depreciation for the year) was £55,000, the value in
use was assessed as
£36,000 and the far value less disposal costs was £40,000. Impairment is charged to administration costs.
(7) A cheque sent to a supplier for £69,000 has been incorrectly recorded as £96,000.
Requirement
Prepare the statement of profit or loss for Ngoi Sao plc for the year ended 31 October 2020 and the
statement of financial position at that date.

Scenario 2:
Requirement: Make bank reconciliation, correction of errors and adjusting entries for Pink and
recalculate the net profit/net loss of Pink for the period.
Pink's business bank statement showed an overdrawn balance of £5,800 on 31 May 20X7. When this was
reconciled to the cash at bank account, the following differences were noted:

£
(1) Bank charges not recorded in cash at bank account 30
(2) Standing order for local property tax not entered in cash at bank 300
account
(3) Outstanding lodgements 1,300
(4) Credited in error to Pink's account by the bank 100

Pink’s draft accounts show a net loss of £22,000 for the year. On additional investigation you discover the
following.
(5) £2,000 of repairs had been incorrectly recorded as a purchase of machinery on the last day of the
year.
(6) Cash of £500, received in respect of a debt written off many years ago, had been credited to
receivables.
(7) Closing inventory includes items costing £1,000 which were sold and delivered to the customer
on the year end date.
(8) Goods invoiced at £25 had been returned by Pink to the supplier for a full refund. The only
accounting entry made for the return was to debit the purchases account and credit the suspense
account with £52. *(DR purchase, CR AP)
Scenario 3: Internet excercise

- Visit the Vinamilk homepage. Access the most recent annual report (English version). Locate
the titled “Revenue” in the Income Statement for the year ended 31st December 2019. Please
review the explanation of the company’s policies related to Revenue Recognition and indicate
which items the revenue includes? (show details of figures, accounting policy)
- Explain how the income statement and the statement of changes in equity relate to the balance
sheet?
What are the meanings of these statements? Apply for financial statement of Vinamilk.
 Learning Outcomes and Assessment
Criteria
Pass Merit Distinction
LO2 Prepare final accounts for sole-traders, partnerships and
limited companies in accordance with appropriate principles, D2 Compare the
conventions and standards essential features of each
financial account
P3 Prepare final M2 Make adjustments
statement to analyse the
accounts from given to balances of sum
differences between them
trial balance. accounts for example,
in terms
accruals, depreciation
purpose, structure and content
P4 Produce final and prepayments before
accounts for a range of preparing the final
examples that include accounts.
sole-traders,
partnerships or limited
companies.
LO3 Perform bank reconciliations to ensure company and bank D3 Prepare accurate bank
records are correct reconciliations that apply
appropriate tools and techniques to
P5 Apply the bank reconciliation M3 Apply the reconciliation
check general accounts and balance
process to prepare a number of process demonstrating the use of
sheets.
bank reconciliations. deposit in transit, outstanding
checks and Not Sufficient Funds
(NSF) check.
LO4 Reconcile control accounts and shift recorded transactions D4 Produce accurate accounts
from the suspense accounts to the right accounts) that have been reconciled
applying the appropriate
P6 Explain the process taken to M4 Demonstrate understanding
methods.
reconcile control accounts and of the different types of
clear suspense accounts using accounts and how and why they
given account examples. are reconciled.
Scenario 1:
1. Trial Balance

Prepare the Trial Balance

TRIAL BALANCE
Name of Business: Ngoi Sao plc
Time: 13 October 2020
Name of Accounts Debit Credit
Ordinary share capital   15,0
00
Share premium   3,7
50
Trade payables   2,0
99
Land and building - cost 26,  
364
Land and building - accumulated depreciation at   5,2
1 November 2020 50
Plant and equipment - cost 9,  
375
Plant and equipment - accumulated depreciation at   5,5
1 November 2020 50
Trade receivables 4,  
077
Accruals at 31 October 2020   3
27
8% bank loan repayable in 10 years   11,2
50
Cash at bank 7,  
331
Retained earnings   7,3
51
Interest paid  
450
Gross profit   11,7
28
Distribution costs 4,  
082
Administrative expenses 3,  
592
Closing inventories 5,  
909
Dividends paid 1,  
125
Total 62, 62,3
305 05

2. Adjusting entries
Prepare the adjusting entries:
Journal: adjusting entries
No Explanation Accounts Affected Debit Credit
.
1 Buildings (26,364- Distribution costs  
11,364=15,000) 180
    Administrative expense  
120
    Accumulated depreciation of  
buildings 300
  Plant and equipment Distribution costs  
(carrying amount 459
9,375-5,550=3,825)
    Administrative expense  
306
    Accumulated depreciation of plant  
and equipment 765
2 Run the adverts for three Distribution costs  
months and were to be paid 11
  for in full at the end of Accruals  
December 11
2020.

3 Interest on the bank for the Interest expense  

last 6 months of the year has 450
  not been included in the Interest payable  
accounts in the trial balance. 450
4 Record the corporation tax Tax expense  
charge for the year. 728
  Tax payable  
728
5 Paid rent until Prepayments  
31 December 2020 8
  Distribution costs  
8
6 Made 1 for 5 bonus share Share premium  
issue during the year from 3,000
  share premium Share capital  
3,000
7 Received a letter from the Administrative expenses  
liquidator of Volan plc 35
  Trade receivables  
35
8 An item of plant and Administrative expenses  
equipment was damaged in 15
  a flood on 30 October 2020 Accumulated depreciation and  
impairment loss-plant and equipment 15
9 Pay cash to supplier Cash at bank  
27
  Trade payables  
27

3. The Final Trial Balance

Prepare The Final Trial Balance

Accounts Initial TB Adjustment Adjusted TB
Debit Credit Debit Credit Debit Credit
Ordinary share capital   15   3,   1
,000 000 8,000
Share premium   3    
,750 3,000 750
Trade payables   2    
,099 27 2,126
Land and building - cost 2        
6,364 26,364
Land and building   5    
- accumulated depreciation at 1 ,250 300 5,550
November 2020
Plant and equipment - cost        
9,375 9,375
Plant and equipment   5    
- accumulated depreciation at 1 ,550 780 6,330
November 2020
Trade receivables      
4,077 35 4,042
Accruals at 31 October 2020      
327 11 338
8% bank loan repayable in 10   11       1
years ,250 1,250
Cash at bank      
7,331 27 7,358
Retained earnings   7      
,351 7,351
Interest paid        
450 450
Gross profit   11       1
,728 1,728
Distribution costs    
4,082 650 8 4,724
Administrative expenses      
3,592 476 4,068
Closing inventories        
5,909 5,909
Dividends paid        
1,125 1,125
Interest expense        
450 450
Interest payable        
 450 450
Tax expense      
728 728
Tax payable    
728 728
Prepayments        
8 8
Total 6 62 5, 6
2,305 ,305 5,339 339 64,601 4,601

4. Statement of Profit or Loss

Prepare the Financial Statements: Statement of Profit or Loss

Name of business: Ngoi Sao plc
Time: 31 October 2020

Amount
Gross profit
11,728
Distribution costs (4,72
4)
Administrative expense  
(4,068)
Profit/loss from operations   2,93
6
Finance cost (8%*11,250)
(900)
Profit/loss before tax 2,03
6
Income tax  
(728)
Profit/loss for year 1,30
8

5. Statement of Financial Position

 Statement of Financial Position
Name of Business: Ngoi Sao plc
Time: 31 October 2020

Assets Amount Liabilities Amount

Non-current assets   Equity  
Property, plant and equipment   Equity share capital
18,000
Land and buildings (3) 2 Share premium
0,814 750
Plant and equipment (3) 3,045 Retained earnings 7,534
  2  
3,859 26,284
Current assets   Liabilities  
Cash at bank Non-current liabilities  
7,358
Trade receivables Long-term borrowing
4,042 (8% at bank) 11,250
Closing inventories Current liabilities  
5,909
Prepayment 8 Trade payables
2,126
  1 Accruals
7,317 338
    Tax payables
728
    Interest payable 450
     
14,892
       
Total 41,176 Total 41,176

EXPLANATION
(3) Property, plant and Land Building Total Land Plant and
equipment and equipment
Building
Cost of valuation
11,364 15,000 9,375
(=26,364-
11,364)
Accumulated
depreciation - 5,250 (5,550)
Carrying amount per
trial balance 11,364 9,750 3,825
Depreciation charge
- 300 (780)
Carrying amount 31
October 2020 11,364 9,450 20,814 3,045

6. Statement of changes in equity

Ngoi sao plc

Statement of changes in equity for the year ended 31 October 2020

  Equity share Share Retained Total

capital preminum earnings
Balance as at 1 November
2019 15,000 3,750 7,351 26,101
Bonus issue of share
capital 3,000 (3,000) -
Dividends
-
Profit/(loss) for the year
-
Balance as at 31
October 2020 18,000 750 7,351 26,101

Scenario 2:

1. Journal entries

  Explanation Accounts Affected Dr Cr

1 Bank charges not recorded in cash at Bank charges  
bank account 30
  Cash  
30
2 Standing order for local property tax Local property tax  
not entered in cash at bank account 300
  Cash  
300
5 Repairs had been incorrectly Repair expenses 2,  
recorded as a purchase of machinery 000
  Machinery   2,
000
6 Received in respect of a debt written Trade receiable  
off many years ago 500
  Irrecorrverable debt expenses  
500
7 Cost of goods sold 1,  
Closing inventory 000
  Inventory   1,
000
8 Trade payables  
25
  Suspense account  
Returned goods invoiced 52
  Purchase account  
77

2. Bank reconciliation statement

1. Correct the cash book

   
Uncorrected cash book balance (4,270)
Less: Bank charges (30)
Less: Local property tax (300)
Corrected cash book balance (4,600)

2. Reconcile corrected cash book with bank statement

   
Balance per bank statement (5,800)
Add: Outstanding lodgements 1,300
Less: Bank error (100)
Corrected bank statement balance (4,600)

3. Statement of Profit or loss

Pink  

Statement of Profit or loss  

For the year ended May 31 20X7  

Expenses (22,000)
Bank charges expense (30)
Tax expense (300)
Repair expenses (2,000)
Cost of goods sold ( 1,000)
Irrecoverable debt expenses 500
Purchase 77

Net loss (24,753)

Scenario 3:
A. Revenue of Vinamilk in the Income Statement for the year ended 31 st
 December 2019

Vietnam Dairy Products Joint Stock Company and its subsidiaries

Consolidated statement of income for the year ended 31 December 2019
Code Note 2019 2018
Revenue from sales of goods and 01 VI.1 56,400,229,726,717 52,629,230,427,284
provision of services
Revenue deductions 02 VI.1 82,106,963,973 67,280,456,692
Net revenue (10 = 01 - 02) 10 VI.1 56,318,122,762,744 52,561,949,970,592
Cost of sales 11 VI.2 29,745,906,112,117 27,950,543,501,501
Gross profit (20 = 10 - 11) 20 26,572,216,650,627 24,611,406,469,091
Financial income 21 VI.3 807,316,707,483 759,917,391,001
Financial expenses 22 VI.4 186,969,681,828 118,007,001,674
In which: interest expense 23 108,824,893,987 51,367,418,852
share of (loss)/profit in associates 24 V.5c 22,433,720,557
(5,716,591,103)
Selling expenses 25 VI.5 12,993,454,552,852 12,265,936,906,433
General and administration 26 VI.6 1,396,302,416,955 1,133,300,231,790
expenses
Net operating profit {30 = 20 + 30 12,797,090,115,372 11,876,513,440,752
(21 - 22) + 24 - (25 +260}
Other income 31 VI.7 249,446,259,179 450,247,329,980
Other expenses 32 VI.8 250,826,735,994 275,064,504,609
Results of other activities (40 = 40 175,182,825,371
31 - 32) (1,380,476,815)
Profit before tax (50 = 30 + 40) 50 12,795,709,638,557 12,051,696,266,123
Income tax expense - current 51 VI.10 2,238,365,796,113 1,874,905,225,483
Income tax expense/(benefit) - 52 VI.10 3,011,961,553 (28
deferred ,838,670,599)
Net profit after tax (60 = 50 - 51 - 60 10,554,331,880,891 10,205,629,711,239
52) (carried forward to next page)
Net profit after tax (60 = 50 - 51 - 60 10,554,331,880,891 10,205,629,711,239
52) (brought forward from
previous page)
Attributable to:
Equity holders of the Company 61 10,581,175,671,989 10,227,281,151,464
Non-controlling interest 62 (21
(26,843,791,098) ,651,440,225)
Basic earnings per share 70 VI.11 5,478 5,295

B. Company policies
(a) Goods sold
In the separate statement of revenue, revenue from the selling of products is recognized
when substantial costs and benefits of ownership have been transferred to the buyers. No
revenue is recognized if there are significant doubts about the recovery of the due
consideration or potential return of goods. After deducting the sales discounts indicated on
the invoice, revenue from the sales of products is reported at the net sum. X Service
rendered
In the separate statement of revenue, revenue from services provided is recognized in
proportionto the stage of completion of the transaction at the end of the financial year. By
comparison to surveys of workcompleted, the stage of completion is evaluated. If there are
major uncertainties about recoveryof the consideration due, no revenue is acknowledged.

(c) Rental income

In the separate statement of income on a straight-line basis for the duration of the contract,
rental income from rented property is recognized. Lease benefits are known as an important
part of the gross revenue from leases.
(d) Interest income
Interest income is recognized with reference to the principal outstanding and the relevant
interest rate on a basic period proportion.
(e) Dividend income
When the right to accept a dividend is created, dividend revenue is recognized. "
(f) Income from disposal of short-term and long - term financial investments
Gain from the sale of short-term and long-term financial investment is recognized in the
separate income statement when the buyers have been converted to significant risks and
ownership rewards. Significant risks and ownership rewards have been transferred after the
conclusion of the trading transaction or the completion of the asset transfer agreement.

C. Relationships between income statement and balance sheet; the statement of

changes in equity and balance sheet
The meaning of 3 statements
Income statement : Income statement is an official financial record that gives details of all a
company’s income and expenses for a particular period, and shows if it has made a profit or
loss (Oxford Dictionary, 2019). The other names of income statement are earnings statement,
statement of operations, and profit and loss statement (Williams, 2015). There are 3 main
 parts of income statement including revenue, expense and profit/loss.

 IFRS
2019 2018
VND million VND million
Profit or loss
Revenue 49,822,326 45,955,195
Cost of sales (30,306,791) (28,600,243)
Gross profit 19,515,535 17,354,952
Other income 134,005 166,892
Selling expenses (6,823,427) (6,026,678)
General and administration expenses (1,610,443) (1,336,154)
Other losses – net (118,622) (65,534)
Results from operating activities 11,097,048 10,093,478
Finance income 724,228 678,576
Finance cost (120,250) (52,677)
Net finance income 603,978 625,899
Share of (loss)/profit of equity accounted invest (5,717) 22,434
Profit before tax 11,695,309 10,741,811
Income tax (2,241,378) (1,846,067)
Net profit from continuing operations 9,453,931 8,895,744
Net loss from discontinued operations (net of - -
income tax)
Net profit 9,453,931 8,895,744

 VAS
Vietnam Dairy Products Joint Stock Company and its subsidiaries consolidated statement of income for
the year ended 31 December 2019
  Cod Note 2019 2018
e
Revenue from sales of goods and provision 01 VI.1 56,400,229,726,717 52,629,230,427,284
of services
Revenue deductions 02 VI.1 82,106,963,973 67,280,456,692
Net revenue (10 = 01 - 02) 10 VI.1 56,318,122,762,744 52,561,949,970,592
Cost of sales 11 VI.2 29,745,906,112,117 27,950,543,501,501
Gross profit (20 = 10 - 11) 20 26,572,216,650,627 24,611,406,469,091
Financial income 21 VI.3 807,316,707,483 759,917,391,001
Financial expenses 22 VI.4 186,969,681,828 118,007,001,674
In which: interest expense 23 108,824,893,987 51,367,418,852
share of (loss)/profit in associates 24 V.5c 22,433,720,557
(5,716,591,103)
Selling expenses 25 VI.5 12,993,454,552,852 12,265,936,906,433
General and administration expenses 26 VI.6 1,396,302,416,955 1,133,300,231,790
 Net operating profit {30 = 20 + (21 - 22) + 30 12,797,090,115,372 11,876,513,440,752
24 - (25 +260}
Other income 31 VI.7 249,446,259,179 450,247,329,980
Other expenses 32 VI.8 250,826,735,994 275,064,504,609
Results of other activities (40 = 31 - 32) 40 175,182,825,371
(1,380,476,815)
Profit before tax (50 = 30 + 40) 50 12,795,709,638,557 12,051,696,266,123
Income tax expense – current 51 VI.10 2,238,365,796,113 1,874,905,225,483
Income tax expense/(benefit) – deferred 52 VI.10 3,011,961,553
(28,838,670,599)
Net profit after tax (60 = 50 - 51 - 52) 60 10,554,331,880,891 10,205,629,711,239
(carried forward to next page)
Net profit after tax (60 = 50 - 51 - 52) 60 10,554,331,880,891 10,205,629,711,239
(brought forward from previous page)
Attributable to:  
Equity holders of the Company 61 10,581,175,671,989 10,227,281,151,464
Non-controlling interest 62
(26,843,791,098) (21,651,440,225)
Basic earnings per share 70 VI.11 5,478 5,295

Balance sheet. Balance sheet is a written statement that shows the financial state of a
company at a particular time. (Oxford Dictionary, 2019). It lists the company’s asset and all
money owed. (Oxford Dictionary, 2019). There are 2 parts of balance sheet: the first part
includes assets, the second part includes liabilities and owners’ equity.

 IFRS
31/12/2019 31/12/2018

VND million VND million

Current assets 24,690,283 20,182,792
Cash and cash equivalents 2,665,195 1,522,610
Other investments 12,435,744 8,231,927
Trade and other receivables 4,637,582 4,837,374
Inventories 4,951,762 5,501,458
Share – based payment assets - 89,423
Non-current assets 20,384,251 16,888,080
Trade and other receivables 435,833 415,816
Prepaid land costs - 422,775
Right of use assets 517,088 -
Other investments 298,564 571,162
Property, plant and equipment 13,810,973 13,230,522
Biological assets 1,121,205 923,610
Intangible assets 3,426,086 701,983
Investment property 62,018 90,248
Investment in equity accounted invest 688,112 497,499
Deferred tax assets 24,372 34,465
TOTAL ASSETS 45,074,534 37,070,872

31/12/2019 31/12/2018

VND million VND million

LIABILITIES AND EQUITY
LIABILITIES 15,390,489 10,793,838
Current liabilities 14,438,986 10,188,810
Borrowings 5,351,461 1,060,048
Trade and other payables 8,222,883 8,251,540
Income tax payable 448,268 240,617
Other taxes payable 171,126 101,052
Advances from customers 245,248 535,553
Non-current liabilities 951,503 605,028
Borrowings 122,993 215,799
Trade and other payables 27,846 32,078
Lease liabilities 258,642 -
Severance allowance obligations 167,095 152,393
Deferred tax liabilities 374,927 204,758
EQUITY 29,684,045 26,277,034
Equity attributable to equity holders of the 27,456,848 25,786,799
Company
Share capital 17,416,878 17,416,878
Share premium 1,883,570 1,878,130
Treasury shares (11,645) (10,486)
Fair value reserve (1,601) (1,000)
Translation reserve 23,186 27,649
Other reserve 2,200,188 1,191,672
Retained earnings 5,946,272 5,283,956
Non-controlling interest 2,227,197 490,235
TOTAL LIABILITIES AND EQUITY 45,074,534 37,070,872

 VAS
Vietnam Dairy Products Joint Stock Company and its subsidiaries Consolidated statement of financial
position as at 31 December 2019
  Code Note 31/12/2019 VND 1/1/2019 VND
ASSETS  
Current assets 100 24,721,565,376, 20,559,756,794,837
552
(100= 110 + 120 + 130 + 140 + 150)  
Cash and cash equivalents 110 V.2 2,665,194,63 1,522,610,167,
8,452 671
Cash 111 2,378,583,76 1,072,610,167,
4,655 671
Cash equivalents 112 286,610,87 450,000,000,
3,797 000
Short-term financial investments 120 V.5(a) 12,435,744,32 8,673,926,951,
8,964 890
Trading securities 121 1,153,04 443,154,262,
1,048 451
Allowance for diminution in the value of 122 V.5(a) (840,586,787) (605,728,258)
trading securities
Held-to-maturity investments 123 V.5(b) 12,435,431,87 8,231,378,417,
4,703 697
Accounts receivable – short-term 130 4,503,154,72 4,639,447,900,
8,959 101
Accounts receivable from customers 131 V.3(a) 3,474,498,51 3,380,017,354,
8,959 930
Prepayments to suppliers 132 576,013,06 876,158,254,
1,394 325
Short-term loans receivable 135 31,170,33
6,327 -
Other short-term receivables 136 V.4(a) 438,267,51 394,535,471,
7,904 938
Allowance for doubtful debts 137 V.3(c) (16,794,70 (11,263,181,
5,625) 092)
Inventories 140 V.6 4,983,044,40 5,525,845,959,
3,917 354
Inventories 141 4,996,114,79 5,538,304,348,
9,978 980
Allowance for inventories 149 (13,070,39 (12,458,389,
6,061) 626)
Other current assets 150 134,427,27 197,925,815,
6,260 821
Short-term prepaid expenses 151 V.12(a) 68,634,34 54,821,120,
1,838 257
Deductible value added tax 152 60,875,99 142,642,380,
1,566 500
Taxes receivable from State Treasury 153 4,916,94 462,315,
2,856 064
Long-term assets 200 19,978,308,00 16,806,351,859,
9,482 342
(200 = 210 + 220 + 230 + 240 + 250 +260)  
Accounts receivable – long-term 210 21,169,96 88,443,241,
8,995 642
Long-term receivables from customer 211 V.3(b) 67,658,410,
631
Long-term loan receivables 215 545,31 3,143,509,
2,000 548
Other long-term receivables 216 V.4(b) 20,624,65 17,641,321,
6,995 463
Fixed assets 220 14,893,540,21 13,365,353,599,
6,703 098
Tangible fixed assets 221 V.7 13,743,909,61 13,047,771,431,
8,601 436
Cost 222 26,227,436,15 22,952,360,450,
4,249 312
Accumulated depreciation 223 (12,483,526,53 (9,904,589,018,
5,648) 876)
Intangible fixed assets 227 V.8 1,149,630,59 317,582,167,
 8,102 662
Cost 228 1,297,664,98 475,569,436,
2,735 392
Accumulated depreciation 229 (148,034,38 (157,987,268,
4,633) 730)
Investment property 230 V.9 62,018,11 90,248,200,
6,736 759
Cost 231 81,481,27 147,320,450,
1,444 623
Accumulated depreciation 232 (19,463,15 (57,072,249,
4,708) 864)
Long-term work in progress 240 943,845,55 868,245,878,
1,903 253
Long-term work in progress 241 V.10 249,633,89 214,398,200,
3,396 249
Construction in progress 242 V.11 694,211,65 653,847,678,
8,507 004
Long-term financial investments 250 986,676,29 1,068,660,695,
0,429 119
Investments in associates 252 V.5(c) 688,112,58 497,498,739,
7,059 617
Equity investments in other entities 253 V.5(c) 104,537,01 72,083,527,
0,212 154
Allowance for diminution in the value of long- 254 V.5(c) (5,973,30 (921,571,
term financial investments 6,842) 652)
Held-to-maturity investments 255 V.5(b) 200,000,00 500,000,000,
0,000 000
Other non-current assets 260 3,071,057,86 1,325,400,244,
4,716 471
Long-term prepaid expenses 261 V.12(b) 678,630,47 750,599,476,
9,869 304
Deferred tax assets 262 V.13(a) 26,367,28 36,460,665,
0,852 848
Goodwill 269 V.14 2,366,060,10 538,340,102,
3,995 319
   
TOTAL ASSETS (270 = 100 + 200) 270 44,699,873,38 37,366,108,654,179
6,034
   
RESOURCES  
LIABILITIES (300 = 310 + 330) 300 14,968,628,181,670 11,094,739,362,
252
Current liabilities 310 14,442,851,83 10,639,592,009,
3,360 462
Short-term accounts payable to suppliers 311 V.15 3,648,445,57 3,991,064,706,
6,699 111
Advances from customers 312 245,247,66 535,552,943,
6,160 437
Taxes payable to State Treasury 313 V.17 619,393,66 341,669,047,
5,850 623
Payables to employees 314 239,520,74 215,270,553,
5,753 609
Short-term accrued expenses 315 V.18 1,738,321,90 1,437,232,532,
8,844 734
Short-term unearned revenue 318 2,111,16 6,910,881,
8,658 322
Other short-term payables 319 V.19 1,956,364,39 2,540,327,951,
8,828 932
Short-term borrowings 320 V.16(a) 5,351,461,26 1,060,047,652,
0,191 329
Provision – short-term 321 V.20 8,048,88 4,502,303,
5,766 315
Bonus and welfare fund 322 V.21 633,936,55 507,013,437,
6,611 050
Long-term liabilities 330 525,776,34 455,147,352,
8,310 790
Long-term accounts payable to suppliers 331 437,91
6,520 -
Long-term accrued expenses 333 2,054,753,
- 617
Long-term unearned revenue 336 415,848,
- 218
Other long-term payables 337 27,418,57 29,607,431,
3,520 175
Long-term borrowings 338 V.16(b) 122,992,9 215,798,91
82,893 9,361
Deferred tax liabilities 341 V.13(b) 374,926,8 204,757,71
75,377 4,031
Provision – long-term 342 V.20 2,512,68
- 6,388
   
EQUITY (400 = 410) 400  
Owners’ equity 410 V.22 29,731,255,20 26,271,369,291,
4,364 927
Share capital 411 V.23 17,416,877,93 17,416,877,930,
0,000 000
Treasury shares 415 V.23 (11,644,95 (10,485,707,
6,120) 360)
Foreign exchange differences 417 23,174,49 27,635,831,
4,894 784
Investment and development fund 418 2,200,188,37 1,191,672,373,
3,195 593
Retained profits 421 7,875,462,40 7,155,434,314,
1,924 256
Retained profits brought forward 421a 4,543,346,78 3,560,050,505,
6,755 957
Profit for the current year 421b 3,332,115,61 3,595,383,808,
5,169 299
Non-controlling interest 429 2,227,196,96 490,234,549,
0,471 654
TOTAL RESOURCES (440 = 300 + 400)  440   44,699,883,38 37,366,108,654,
6,034 179

The statement of changes in equity

Statement of Changes in Equity, often referred to as Statement of Retained Earnings in U.S.
GAAP, details the change in owners’ equity over an accounting period by presenting the
movement in reserves comprising the shareholders’ equity. (Ali, 2019). Movement in
shareholders’ equity over an accounting period comprises the following elements (Ali, 2019):

- Net profit or loss during the accounting period attributable to shareholders

- Increase or decrease in share capital reserves

- Dividend payments to shareholders

- Gains and losses recognized directly in equity

- Effect of changes in accounting policies

- Effect of correction of prior period error

- Share Share Treasury Foreign Investment Retain Non- Total

 capital premium share exchange and ed controllin VND
VND VND VND differences development profits g interest
VND fund VND VND VND
As at 1 14,514,5 260,699,6 (7,159,82 18,367,457, 2,851,905,41 5,736,9 497,790,2 23,873,05
January 2018 34,290,0 20,761 1,800) 133 0,228 20,629, 28,077 7,813,861
00 462
Capital 2,902,34 (260,699, (2,641,644,0
increase from 3,640,00 620,761) 19,239)
bonus shares 0
Purchase of (3,325,88 (3,325,88
treasury shares 5,561) 5,561)
Net profit for 10,227, (21,651,4 10,205,62
the year 281,15 40,225) 9,711,239
1,464
Appropriation 981,410,982, (981,41
to equity funds 604 0,982,6
04)
Appropriation (1,006, (1,006,69
bonus and 694,00 4,001,566
welfare fund 1,566) )
(Note V.21)
Increase from 14,095,76 14,095,76
business 1,802 1,802
acquisition
Dividends (6,820, (6,820,66
(Note V.24) 662,48 2,482,500
2,500) )
Currency 9,268,374,6 9,268,374
translation 51 ,651
differences
As at 1 17,416,8 (10,485,7 27,635,831, 1,191,672,37 7,155,4 490,234,5 26,271,36
January 2019 77,930,0 07,360) 784 3,593 34,314, 49,654 9,291,927
00 256
Increase from 1,671,828 1,671,828
business ,944,895 ,944,895
acquisition
Capital 127,768,7 127,768,7
contribution 25,000 25,000
Purchase of
treasury shares (1,159,24 (1,159,24
8,760) 8,760)
Net profit for 10,581, 10,554,33
the year 175,67 (26,843,7 1,880,891
1,989 91,098)
Appropriation 1,008,515,99
to equity funds 9,602 (1,008,
515,99
9,602)
Appropriation
to bonus and (1,042, (1,042,68
welfare fund 687,22 7,225,216
(Note V.21) 5,216) )
Other 26,276,
increases/(decr 249,99 (35,791,4 (9,515,21
eases) 7 67,980) 7,983)
Dividends
(Note V.24) (7,836, (7,836,22
220,60 0,609,500
9,500) )
Currency
translation (4,461,336, (4,461,33
differences 890) 6,890)
As at 31 17,416,8   23,174,494, 2,200,188,37 7,875,4 2,227,196 29,731,25
December 77,930,0 (11,644,9 894 3,195 62,401, ,960,471 5,204,364
2019 00 56,120) 924

Relationship between income statement and balance sheet

The revenue and gains are proportional to owner’s equity (When revenue increases, owner’s
equity increases). By contrast, the expenses and losses are inversely related to owner’s equity
(When expense increases, owner’s equity decreases). This is simply because retained
earnings (closing balance sheet) equal period retained earnings (opening balance sheet) plus
net income (income statement) minus dividends (balance sheet).
Under IFRS:
In 2018, the revenue was 45,955,195 VND, retained earnings were 5,283,956 VND, and total
owner’s equity was 37,070,872 VND.
In 2019, the revenue was 49,822,326 VND, retained earnings were 5,946,272 VND, and total
owner’s equity was 49,822,326 VND.
The revenue of 2019 was higher than that of 2018, the retained earnings were higher than
that of 2018, and the owner’s equity of 2019 was higher than that of 2018.
Relationship between the statement of changes in equity and balance sheet
The Statement of Changes in Equity directly relates to the income statement and the balance
sheet (Becker, 2015). The statement of changes in equity records the movement of equity as
reported in the balance sheet (Becker, 2015).
Under VAS:
On 1st January 2019:

1. Share capital of SCE = Share capital of BS = 17,416,877,930,000 VND

2. Treasury capital of SCE = Treasury capital of BS = 10,485,707,360 VND

3. Foreign exchange differences of SCE = Foreign exchange differences of BS =

27,635,831,784

4. Investment and development fund of SCE = Investment and development fund of BS =

1,191,672,373,593 VND

5. Retained profits of SCE = Retained profits of BS = 7,155,434,314,256 VND

6. Non-controlling interest of SCE = Non-controlling interest of BS = 490,234,549,654

VND

7. Total equity of SCE = Total equity of BS = 26,271,369,291,927 VND

On 31st December 2019:

8. Share capital of SCE = Share capital of BS = 17,416,877,930,000 VND
9. Treasury capital of SCE = Treasury capital of BS = 11,644,956,120 VND
10. Foreign exchange differences of SCE = Foreign exchange differences of BS =
23,174,494,894 VND
11. Investment and development fund of SCE = Investment and development fund of BS =
2,200,188,373,195 VND
12. Retained profits of SCE = Retained profits of BS = 7,875,462,401,924 VND
13. Non-controlling interest of SCE = Non-controlling interest of BS = 2,227,196,960,471
VND
14. Total equity of SCE = Total equity of BS = 29,731,255,204,364