In business activities, most businesses encounter a case of sales but not receiving money. There are many reasons for not receiving money such as: disagreement between the seller and the buyer; the buyer has financial difficulties, runs away ,or goes bankrupt. In order to solve the above problem, according to international accounting and tax practices, the State allows enterprises to include in deductible expenses when calculating corporate income tax on irrecoverable receivable debts.

One of the major requirements of the audited financial statements is that the certified financial statements are presented truly and fairly. In order to confirm that the financial statements give a true and fair view, standards of auditing not only require a review of the events that occurred during the fiscal year, but also require the auditor to consider the events occurring between the end of the reporting period and the date when the financial statements are authoried for issue.

Consolidated financial statements topic is a difficult accounting topic, so accountants need to learn step by step to prepare consolidated financial statements. The first step is the consolidated financial statements overview. In order to help you remember easily, this content will be presented in the question-and-answer format:

Following part I - Consolidated Financial Statements Overview, today we learn about the difference between consolidated and separate reports. The purpose is to make it easier for us to prepare the consolidated financial statements when we already know how to prepare separate reports. There are many ways to classify this differs depending on the purpose of use and research on the consolidated financial statements. This topic deals with the difference in "Form" for preparing consolidated financial statements.

In topic II, we have learned the difference between consolidated and separate reports. Today, we learn topic 3 - Consolidated financial statement preparation. Firstly, we explore the school of consolidated financial statements in accounting. We temporarily use the word “school” to remember easily. There are two schools of consolidated financial statements that are commonly used in practice. The first school: step 1 is separating items in the reports of the subsidiary, which is owned by the parent company; step 2 is adding the reports of the parent company to the report of the subsidiary. This school had been applied when consolidation standards had not yet developed, consolidation regulations had been simple and limited in one country.

Business managers and accountants often feel uncomfortable when their business profit and loss results are always different from the tax agency's profit and loss results when finalizing corporate income tax. The reason for this difference is due to the difference between the income and expense recognition basis of accounting and the tax income and expense basis. The difference that creates this difference is called a temporary difference or a permanent difference. The contents of the temporary difference and the permanent difference are presented as follows:

My friends and I who were in the same lecture hall were engaged in the audit profession. Five years since graduation is enough for us to feel the favors and pressures that the profession brings. Now I am writing to describe my feelings about the audit profession. I would like to talk about eight points relating to the audit profession.

Responsibilities of Independent Auditors and Audit Firms Regarding Audited Financial Statements