--- title: "Reconciling Financial Statements: Cash, Profit and Equity" description: Learn how net income links to operating cash flows and balance sheet equity using reviewed 6M 2026 data from Vinamilk, including working capital changes. url: https://ginity.vn/en/blog/reconciling-three-financial-statements canonical: https://ginity.vn/en/blog/reconciling-three-financial-statements markdown: https://ginity.vn/en/blog/reconciling-three-financial-statements.md language: en datePublished: 2026-10-27T00:00:00+07:00 dateModified: 2026-10-27T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ginity Editorial Desk analyst: name: Đào Ngọc Bảo Linh role: Finance and securities specialist location: Ho Chi Minh City telephone: "+84932439639" generatedBy: name: Ginix Harness url: https://ginix.vn desk: id: learn name: Learn investing url: https://ginity.vn/en/learn tickers: - VNM sources: - name: Ministry of Finance url: https://vbpl.vn/van-ban/chi-tiet/thong-tu-so-99-2025-tt-btc-huong-dan-che-do-ke-toan-doanh-nghiep--187356 title: Circular 99/2025/TT-BTC Guiding Corporate Accounting System - name: Ministry of Finance url: https://vbpl.vn/van-ban/chi-tiet/thong-tu-so-96-2020-tt-btc-huong-dan-cong-bo-thong-tin-tren-thi-truong-chung-khoan--146048 title: Information Disclosure Regulations under Circular No. 96/2020/TT-BTC - name: National Assembly of Vietnam url: https://vbpl.vn/van-ban/chi-tiet/luat-chung-khoan-so-54-2019-qh14--139885 title: Law on Securities No. 54/2019/QH14 - name: Vinamilk Investor Relations url: https://www.vinamilk.com.vn/investor/reports/financial title: Vinamilk Reviewed Consolidated Semi-Annual Financial Statements 2026 - name: Ho Chi Minh Stock Exchange (HOSE) url: https://www.hsx.vn/vi/tin-tuc/cong-bo-thong-tin title: HOSE Information Disclosure Portal - name: CafeF Financial Data url: https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/cashflow/2026/2/0/0/luu-chuyen-tien-te-gian-tiep-cong-ty-co-phan-sua-viet-nam.chn title: Vinamilk VNM Indirect Cash Flow Statement 6M 2026 - name: CafeF Financial Data url: https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/bsheet/2026/2/0/0/can-doi-ke-toan-cong-ty-co-phan-sua-viet-nam.chn title: Vinamilk VNM Balance Sheet Q2 2026 publisher: Ginity attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.' disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources." usageTerms: https://ginity.vn/ai.txt --- # Reconciling Financial Statements: Cash, Profit and Equity > Learn how net income links to operating cash flows and balance sheet equity using reviewed 6M 2026 data from Vinamilk, including working capital changes. Gini · Learn investing · 2026-10-27 · https://ginity.vn/en/blog/reconciling-three-financial-statements _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - Vinamilk (VNM) generated VND 3,474 billion in net operating cash flow in the first 6 months of 2026, reflecting working capital movements and non-cash adjustments. - Inventories expanded by VND 1,456 billion and accounts receivable grew by VND 529 billion in 6M 2026, partially offset by VND 832 billion in trade payables financing. - According to Vinamilk's balance sheet disclosures, consolidated total equity expanded from VND 34,483.0 billion to VND 35,666.3 billion in 6M 2026. - Taxes and other payables to the State increased from VND 1,804 billion to VND 3,875 billion on the balance sheet, while financing cash flows recorded VND 35 billion in dividends and profits paid to owners. ## 1. The Core Accounting Loop Connecting All Three Statements In corporate reporting under Vietnamese Accounting Standards (VAS), the three core financial statements do not operate as isolated documents. The [balance sheet](/en/glossary/balance-sheet) provides two static snapshots of financial position at the beginning and end of a reporting period. The [income statement](/en/glossary/income-statement) and the [cash flow statement](/en/glossary/cash-flow-statement) explain the operational, investment and financial activities that drive the changes between those two balance sheet dates. Under the framework set by [Circular 99/2025/TT-BTC](https://vbpl.vn/van-ban/chi-tiet/thong-tu-so-99-2025-tt-btc-huong-dan-che-do-ke-toan-doanh-nghiep--187356) of the Ministry of Finance guiding corporate accounting regime (replacing Circular 200/2014/TT-BTC effective January 1, 2026), this integration functions through three distinct operational loops: 1. **Net profit to equity reconciliation:** The bottom line of the income statement is [net profit](/en/glossary/net-profit). This figure flows into the statement of changes in equity, adding to retained earnings. When the company declares shareholder dividends or allocates statutory funds, retained earnings decrease accordingly, arriving at the ending balance reported on the balance sheet. 2. **Net Profit to Operating Cash Flow Reconciliation:** Under the indirect method, the cash flow statement begins with accounting profit before tax from the income statement. Accounting adjustments then add back non-cash expenses like depreciation and accrued interest expense, deduct non-operating investment gains and interest income, and adjust for working capital fluctuations (receivables, inventory and payables) to derive net [operating cash flow](/en/glossary/operating-cash-flow) (CFO). 3. **Cash Flow to Cash on the Balance Sheet:** Aggregating operating, investing and financing cash flows yields the net change in cash and cash equivalents for the period. When added to the opening cash balance and adjusted for foreign exchange translation differences, this sum matches the closing cash and cash equivalents line on the balance sheet. Evaluating each statement in isolation leaves investors vulnerable to reporting distortions. A corporation may book strong top-line revenue and accounting profit growth while cash collections lag, leaving capital trapped in uncollected receivables or unsold inventory. Reconciling the statements verifies the quality of reported earnings and reveals true underlying liquidity. Within our educational series on [reading financial statements](/en/learn/financial-statements), understanding these linkages transitions an analyst from memorizing individual accounting line items to diagnosing overall financial vitality. ## 2. Practical Statement Reconciliation: Vinamilk 6M 2026 To examine how the three statements connect in practice, we review the interim consolidated financial statements for the 6-month period ended 30/06/2026 of Vietnam Dairy Products Joint Stock Company (Vinamilk, HOSE: VNM), with cash flow and balance sheet metrics disclosed on [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and aggregated on the [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/cashflow/2026/2/0/0/luu-chuyen-tien-te-gian-tiep-cong-ty-co-phan-sua-viet-nam.chn) portal on 30/07/2026. During the first 6 months of 2026, Vinamilk generated accounting profit before tax of VND 6,914 billion according to corporate financial statements disclosed on [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/cashflow/2026/2/0/0/luu-chuyen-tien-te-gian-tiep-cong-ty-co-phan-sua-viet-nam.chn). ### Linking Accounting Profit to Operating Cash Flow (CFO) With accounting profit before tax reaching VND 6,914 billion in 6M 2026, Vinamilk's net operating cash flow stood at VND 3,474 billion according to reviewed disclosures on [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/cashflow/2026/2/0/0/luu-chuyen-tien-te-gian-tiep-cong-ty-co-phan-sua-viet-nam.chn). The difference between accounting profit and operating cash flow reflects non-cash adjustments and working capital commitments: | Reconciliation Line Item | 6M 2026 Amount (VND billion) | Accounting Impact on Cash Flow | | :--- | :---: | :--- | | Accounting profit before tax | 6,914 | Starting baseline from income statement | | Depreciation and amortisation | +1,204 | Added back as non-cash expense | | Interest income and dividends | -838 | Deducted to reclassify into investing cash flows | | Interest expense incurred | +234 | Added back to determine operating cash before financing costs | | Foreign exchange gains and provisions | -15 | Adjustments for unrealised balance sheet revaluations | | **Operating profit** (before working capital adjustments) | **7,499** | Operational earning capacity prior to working capital cycle | | Changes in receivables | -529 | Changes in receivables: negative cash impact from higher customer credit | | Changes in inventories | -1,456 | Changes in inventories: negative cash impact from capital tied in inventories | | Changes in payables | +832 | Changes in payables: cash preserved through supplier trade financing | | Changes in prepaid expenses | -185 | Prepayments consumed cash balances | | Cash interest paid | -195 | Actual cash outflow for debt service | | Corporate income tax paid in cash | -2,006 | Cash payments to State Treasury including prior-year settlements | | Other operating cash payments | -486 | Sundry operating cash outflows | | **Net cash flows from operating activities (CFO)** | **3,474** | Actual cash generated from primary business operations | Source: Vinamilk reviewed consolidated interim financial statements for 6M 2026 at [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and the [HOSE](https://www.hsx.vn/vi/tin-tuc/cong-bo-thong-tin) disclosure portal, cash flow data at [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/cashflow/2026/2/0/0/luu-chuyen-tien-te-gian-tiep-cong-ty-co-phan-sua-viet-nam.chn). The reconciliation confirms movements in operating cash flow and working capital structure. Specifically, according to the indirect cash flow statement reported on [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/cashflow/2026/2/0/0/luu-chuyen-tien-te-gian-tiep-cong-ty-co-phan-sua-viet-nam.chn), "Increase or decrease in inventories" recorded negative VND 1,456 billion, and "Increase or decrease in receivables" recorded negative VND 529 billion during the first 6 months of 2026. Conversely, "Increase or decrease in payables" recorded positive VND 832 billion. In the first 6 months of 2026, cash income taxes paid totaled VND 2,006 billion according to the cash flow statement. ### Linking Aggregate Cash Flows to Closing Balance Sheet Cash Alongside operating cash flow of VND 3,474 billion, Vinamilk generated net cash flows from investing activities of positive VND 293 billion according to disclosures on [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/cashflow/2026/2/0/0/luu-chuyen-tien-te-gian-tiep-cong-ty-co-phan-sua-viet-nam.chn), comprising VND 586 billion from cash collections of loans and debt instruments of other entities, VND 447 billion from interest received, dividends and distributed profits, VND 8 billion in proceeds from disposals of fixed assets, and minus VND 748 billion in purchase and construction of fixed assets. Financing cash flows recorded a net outflow of VND 1,021 billion, comprising VND 9,483 billion in debt principal repayments against VND 8,496.7 billion in new borrowings, and VND 35 billion in dividends and profits paid to owners. These three flows produced a net cash increase of VND 2,745 billion for the first 6 months of 2026. Adding this increase to the opening balance of VND 1,795 billion and deducting foreign exchange impacts of VND 4 billion results in closing cash and cash equivalents of VND 4,536 billion at 30/06/2026, matching the cash and cash equivalents line on the consolidated balance sheet according to reported corporate data on [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/bsheet/2026/2/0/0/can-doi-ke-toan-cong-ty-co-phan-sua-viet-nam.chn). ### Movements in Owners' Equity Components The second structural link connects the income statement to the balance sheet equity section, detailed in the owners' equity components on the balance sheet: | Equity Component | Opening 01/01/2026 (VND billion) | Closing 30/06/2026 (VND billion) | | :--- | :---: | :---: | | Share capital | 20,899.6 | 20,899.6 | | Share premium | 34.1 | 34.1 | | Other owners' capital | 746.8 | 746.8 | | Foreign exchange difference | 403.6 | 393.7 | | Investment and development fund | 78.7 | 0.0 | | Non-controlling interests | 3,797.6 | 3,798.9 | | Other items (Ginity calculation) | 8,522.6 | 9,793.2 | | **Total equity** | **34,483.0** | **35,666.3** | Figures are rounded to one decimal place, so totals may differ by 0.1. Source: Vinamilk consolidated interim financial statements for 6M 2026 at [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and [HOSE](https://www.hsx.vn/vi/tin-tuc/cong-bo-thong-tin), balance sheet data at [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/bsheet/2026/2/0/0/can-doi-ke-toan-cong-ty-co-phan-sua-viet-nam.chn). According to reported corporate data, the table above reflects equity components on a consolidated basis under [Circular 99/2025/TT-BTC](https://vbpl.vn/van-ban/chi-tiet/thong-tu-so-99-2025-tt-btc-huong-dan-che-do-ke-toan-doanh-nghiep--187356). In the first 6 months of 2026, Vinamilk's consolidated total equity expanded from VND 34,483.0 billion to VND 35,666.3 billion according to disclosures on [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/bsheet/2026/2/0/0/can-doi-ke-toan-cong-ty-co-phan-sua-viet-nam.chn). Other equity items including share capital (VND 20,899.6 billion), share premium (VND 34.1 billion) and other owners' capital (VND 746.8 billion) remained constant, while the investment and development fund decreased from VND 78.7 billion to VND 0.0 billion and foreign exchange difference narrowed from VND 403.6 billion to VND 393.7 billion. On the consolidated cash flow statement, "Dividends and profits paid to owners" recorded a cash outflow of VND 35 billion in 6M 2026 according to disclosures on [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/cashflow/2026/2/0/0/luu-chuyen-tien-te-gian-tiep-cong-ty-co-phan-sua-viet-nam.chn). Meanwhile, on the balance sheet, short-term liabilities are tracked across specific line items: "Taxes and other payables to the State" stood at VND 3,875 billion at 30/06/2026 (up from VND 1,804 billion at 01/01/2026) and "Payables to employees" increased from VND 322 billion at 01/01/2026 to VND 1,064 billion at 30/06/2026 according to [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/bsheet/2026/2/0/0/can-doi-ke-toan-cong-ty-co-phan-sua-viet-nam.chn). ## 3. Three Critical Pitfalls in Statement Reconciliation Conducting rigorous three-statement reconciliation requires understanding the mechanics of accrual accounting versus cash realization. Analysts frequently encounter three analytical pitfalls: ### Equating Accounting Net Profit with Cash Accumulation Beginner investors often assume that robust accounting profits automatically boost liquid bank balances by an equivalent amount. Under [Circular 99/2025/TT-BTC](https://vbpl.vn/van-ban/chi-tiet/thong-tu-so-99-2025-tt-btc-huong-dan-che-do-ke-toan-doanh-nghiep--187356), revenue is recognised upon transfer of control and billing, irrespective of whether cash has arrived in corporate bank accounts. When accounts receivable and inventories expand faster than sales, reported profits remain tied up on the balance sheet. If operating cash flow remains negative over consecutive quarters despite positive accounting profits, the business may face liquidity strain and require external short-term debt to fund its working capital needs. ### Overlooking the Timing Gap in Dividend Declarations When a general meeting of shareholders approves a dividend payout, accounting rules debit retained earnings and credit short-term liabilities immediately. However, the financing cash flow section registers cash disbursements only when funds leave company accounts. Analyzing the cash flow statement without checking the equity note and current liabilities can lead to misunderstanding corporate dividend commitments. Conversely, reviewing dividend declarations without assessing cash balances might overestimate the company's immediate payout capability. ### Confusing Incurred Tax Expenses with Cash Taxes Paid The corporate income tax expense displayed on the income statement reflects the tax liability attributable to current period taxable income. In contrast, the cash flow statement records cash payments made to the State Treasury during the reporting window, which include prior-year settlements and advance quarterly instalments. The difference between these amounts accumulates within "Taxes and other payables to the State" on the balance sheet, where balances rose from VND 1,804 billion at 01/01/2026 to VND 3,875 billion at 30/06/2026 according to disclosures on [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/bsheet/2026/2/0/0/can-doi-ke-toan-cong-ty-co-phan-sua-viet-nam.chn). Tracking this delta helps investors verify whether the firm faces tax adjustments or backlog payments as monitored through statutory compliance filings. ## 4. How to Verify Semi-Annual Filings on Public Portals To practice three-statement reconciliation using verified corporate disclosures, market participants should retrieve primary filings through regulatory and exchange channels: 1. **Securities Legal Framework:** The complete statutory text of [Law on Securities No. 54/2019/QH14](https://vbpl.vn/van-ban/chi-tiet/luat-chung-khoan-so-54-2019-qh14--139885) establishes the regulatory framework governing public company obligations, periodic disclosures, and market operations. 2. **Statutory Information Disclosure Regulations:** [Circular 96/2020/TT-BTC](https://vbpl.vn/van-ban/chi-tiet/thong-tu-so-96-2020-tt-btc-huong-dan-cong-bo-thong-tin-tren-thi-truong-chung-khoan--146048) issued by the Ministry of Finance outlines disclosure deadlines and compliance requirements for public listed companies. 3. **Company Financial Statements Data:** Investors can examine and reconcile the full financial statements of Vinamilk via [Vinamilk Investor Relations](https://www.vinamilk.com.vn/investor/reports/financial) and the [CafeF Financial Data](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/cashflow/2026/2/0/0/luu-chuyen-tien-te-gian-tiep-cong-ty-co-phan-sua-viet-nam.chn) portal. Under Article 14, Clause 2 of [Circular 96/2020/TT-BTC](https://vbpl.vn/van-ban/chi-tiet/thong-tu-so-96-2020-tt-btc-huong-dan-cong-bo-thong-tin-tren-thi-truong-chung-khoan--146048), standalone listed companies must publish reviewed semi-annual financial statements within 45 days from the end of the first 6 months of the fiscal year; for listed entities that are parent companies with subsidiaries (such as Vinamilk), the deadline for publishing reviewed semi-annual financial statements (both parent-company and consolidated reports) is up to 60 days from the end of the 6-month period, while audited annual statements must be released within 90 days of fiscal year-end. A practical three-step reconciliation workflow: - **Step 1:** Access reviewed consolidated financial filings for 2026 from the disclosure portal of the exchange or corporate investor relations using ticker symbol `VNM`. - **Step 2:** Open the indirect cash flow statement to verify that starting profit before tax aligns with the income statement, then reconcile working capital adjustment lines with balance sheet deltas. - **Step 3:** Review the equity section on the balance sheet to track changes in undistributed profit after tax and equity components, cross-referencing them against current liabilities and financing cash flows on the cash flow statement. Mastering this three-statement reconciliation framework enables investors to evaluate corporate liquidity, earnings durability and capital allocation discipline independently within our [reading financial statements](/en/learn/financial-statements) track. ## Sources - Ministry of Finance: [Circular 99/2025/TT-BTC Guiding Corporate Accounting System](https://vbpl.vn/van-ban/chi-tiet/thong-tu-so-99-2025-tt-btc-huong-dan-che-do-ke-toan-doanh-nghiep--187356) (27/10/2025) - Ministry of Finance: [Information Disclosure Regulations under Circular No. 96/2020/TT-BTC](https://vbpl.vn/van-ban/chi-tiet/thong-tu-so-96-2020-tt-btc-huong-dan-cong-bo-thong-tin-tren-thi-truong-chung-khoan--146048) (16/11/2020) - National Assembly of Vietnam: [Law on Securities No. 54/2019/QH14](https://vbpl.vn/van-ban/chi-tiet/luat-chung-khoan-so-54-2019-qh14--139885) (26/11/2019) - Vinamilk Investor Relations: [Vinamilk Reviewed Consolidated Semi-Annual Financial Statements 2026](https://www.vinamilk.com.vn/investor/reports/financial) (30/07/2026) - Ho Chi Minh Stock Exchange (HOSE): [HOSE Information Disclosure Portal](https://www.hsx.vn/vi/tin-tuc/cong-bo-thong-tin) (26/10/2026) - CafeF Financial Data: [Vinamilk VNM Indirect Cash Flow Statement 6M 2026](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/cashflow/2026/2/0/0/luu-chuyen-tien-te-gian-tiep-cong-ty-co-phan-sua-viet-nam.chn) (30/07/2026) - CafeF Financial Data: [Vinamilk VNM Balance Sheet Q2 2026](https://cafef.vn/du-lieu/bao-cao-tai-chinh/vnm/bsheet/2026/2/0/0/can-doi-ke-toan-cong-ty-co-phan-sua-viet-nam.chn) (30/07/2026) --- _Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._ _Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._