SOME TIPS FOR A BUSINESS TO HAVE A BEAUTIFUL FINANCIAL STATEMENT

Today, TASCO would like to share "Some tips for making beautiful financial statements".

With the aim of increasing investors' expectations about the profitability of the company, businesses are forced to generate a corresponding level of profit if they do not want to receive a negative reaction from the market.

Currently, a number of legal procedures, complying with accounting standards are performed by Vietnamese enterprises as follows:

(1) Adoption of accounting estimates.

In the process of preparing financial statements, companies often use a lot of accounting estimates that have a direct effect on a company's profit for the period. Since there is no exact standard for the value of these estimates, it is seen as a powerful tool for profitability.

Some common tips to increase profits such as reducing depreciation rates, reducing provisions, reducing inventory prices, reducing provisions for bad debts, not recording costs when assets are devalued below net value. , capitalization of unqualified ... Profit tricks based on accounting estimates do not in fact increase profits, but merely convert profits from the following periods to the current period. The inevitable consequence is that next year's profits will be reduced.

(2) Through real transactions.

Businesses can make a profit through mediating real transactions to increase profits for the current year, although those transactions may not benefit the company in the long run.

(3) Increase sales

One way businesses often use to increase profits when they see the danger of not meeting their plans is to reduce selling prices or loosen credit terms to increase sales volume in the final months of the fiscal year. . The second measure is to announce plans to increase selling prices early next year.

   Some tips for making beautiful financial reports

(4) Cutting utility costs.

Cutting utility costs such as research and development (R&D) costs, advertising costs, and maintenance costs for equipment are also one way to increase profits. However, since these costs are crucial to a company's growth in the long term, using this solution also means sacrificing potential profits in the future. .

(5) Making allowance for diminution in financial investment prices

For companies investing in listed stocks, these investments are automatically revalued at market prices at the end of the year, according to the specified (current) formula. according to Circular 228/2009 / TT-BTC dated December 7, 2009 (replacing Circular 13/2006 / TT-BTC).

In short, no matter which measures are taken, in the long run, it will not benefit investors as well as the company itself. To prevent negative impacts, businesses need to be conscious of providing complete and transparent information to investors. Besides, investors also need to be alert to not push things too far out of control.

If you have any questions, do not hesitate to contact us!

TASCO always listens to customers' opinions. For any contributions, please contact hotline at 0975.480.868 or email: mylinh2883@gmail.com

OR LINK: https://dichvutuvandoanhnghiep.vn/dang-ky-truc-tuyen.html