LIST OF ABBREVIATIONS
Ministry of Finance
Investment Real Estate Investment Real Estate
Sales Insurance
CCDV Service Provider
Enterprise
VAT Value Added Tax
HH Goods
Business Activities Business Activities
KC Transfer
Business performance Business performance
State budget State budget
QLDN Business Management
Payment Information
Fixed assets Fixed assets
Special Consumption Tax
Corporate Income
Account
1.1. Reasons for choosing the topic
CHAPTER 1: INTRODUCTION
In recent years, the Vietnamese economy has been gradually transforming, strongly innovating and integrating. In any economy, for a business to survive and develop, businesses must have enough qualifications and acumen to come up with business strategies to maximize the profits that can be achieved. Any business when doing business, the first issue is concerned with profits. Therefore, the requirement for businesses is to make their business operations effective, with reasonable fixed and variable costs, and stable and growing business capital.
Business profits will reflect the business performance. Therefore, implementing an accounting system to determine business results will play an important role in determining the business performance of the enterprise. Determining business results plays a very important role because based on that, managers can know whether their business's production and business performance is effective or not and how profitable or lossy it is. In addition, determining the effectiveness of business results will provide reliable information for preparing financial statements and analyzing the business performance of the enterprise. Because of the importance of determining business results, the topic "Accounting for determining business results at HAMACO Concrete Joint Stock Company" was chosen for graduation thesis research.
1.2. Research objectives
1.2.1. General objectives
Researching the accounting work to determine the business results of the Company. From there, draw out the advantages and disadvantages of the accounting system, at the same time give some solutions and recommendations to improve the accounting work to determine the business results and contribute to improving the business performance of the Company.
1.2.2. Specific objectives
- General introduction of the Company's business performance in recent times.
- Systematize general theoretical issues related to accounting to determine business performance.
- Analyze the accounting process to determine the Company's business results.
- Study the current status of accounting work to determine business performance in the third quarter of 2015 at HAMACO Concrete Joint Stock Company to see how to account, use accounts, calculate revenue, expenses and determine business performance.
- Evaluate the advantages and disadvantages of accounting work to determine business results at HAMACO Concrete Joint Stock Company.
- Propose solutions to improve the accounting work to determine business results at HAMACO Concrete Joint Stock Company more and more effectively.
1.3. Research method
1.3.1. Data collection method
- Collect primary information and data at the Company's accounting department, based on documents, books, and reports provided by the Company.
- Refer to circulars and decisions of the Ministry of Finance, accounting laws, accounting standards, specialized accounting textbooks, topics and previous theses related to the topic.
- Learn about the actual situation of the business by observing and collecting opinions and experiences from accounting staff.
1.3.2. Analysis method
- Method of reflecting accounting process.
- Accounting methods, double entry bookkeeping, pricing, vouchers...
- Method of comparing and contrasting the Company's accounting status with laws, regimes, accounting standards and other relevant documents.
1.4. Scope of research
1.4.1. Scope of content
Research on the current implementation of accounting to determine business performance at HAMACO Concrete Joint Stock Company, accounting regime according to Circular No. 200/2014/TT-BTC and accounting form in the form of general journal.
1.4.2. Scope of the subject
Research on documents, books, accounting reports related to accounting work to determine business results at HAMACO Concrete Joint Stock Company.
1.4.3. Spatial scope
The study was conducted at HAMACO Concrete Joint Stock Company No. C22 Le Hong Phong, Binh Thuy Ward, Binh Thuy District, Can Tho City.
1.4.4. Time limit
Project implementation period: From January 1, 2016 to April 1, 2016. Accounting research data: In the third quarter of 2015.
Analysis data: 2013 - 2015
1.5. Meaning of the topic
Business results of an enterprise are the final results to accurately assess the business performance of the enterprise in each period, expressed in the amount of loss or profit. Therefore, determining business results is an extremely important part in the composition of the enterprise accounting system, in addition to being very necessary information for administrators in finding a direction for the enterprise. Grasping the development trend of their enterprise as well as the weaknesses in the consumption of goods and products, from there, administrators in the enterprise will come up with specific business strategies for each next stage and overcome the above weaknesses. Therefore, it is required that accountants in enterprises must accurately determine and reflect the business results of their enterprises in each period, the actual amount of profit as well as the amount of tax paid to the State budget.
1.6. Structure of the thesis
The thesis consists of the following 05 chapters: Chapter 1: Introduction
Chapter 2: Theoretical basis of accounting for determining business performance
business
Chapter 3: Current accounting status determines business performance at
HAMACO Concrete Joint Stock Company
Chapter 4: Solutions to improve accounting work to determine business performance at HAMACO Concrete Joint Stock Company
Chapter 5: Conclusion and recommendations
CHAPTER 2: THEORETICAL BASIS
ON ACCOUNTING TO DETERMINE BUSINESS RESULTS
( According to Circular 200/2014/TT-BTC )
2.1. Accounting determines the business results of sales and service provision activities
2.1.1. Concept of business results of sales and service provision activities
2.1.1.1. Concept of business performance
Business performance is the final result of production and business activities in an accounting period, which is the calculation and comparison of total net income of activities with total production and business costs and other costs incurred by the enterprise during the period.
If total net revenue is greater than total expenses during the period, the business makes a profit, otherwise the business will lose money.
2.1.1.2. Formula for calculating sales and service activities
Key business results
= | Gross profit from sales and service provision | - | Insurance costs, business management costs |
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In there:
Gross profit on sales
goods and services
= | Net sales revenue goods and services | - | Cost of goods sell |
Net revenue from sales and services
= | Total sales and service revenue | - | Revenue deductions | - | Special consumption tax. Export tax, VAT by deduction method. apart from |
2.1.2 Business revenue, financial revenue
Operating Revenue
2.1.2.1. Concept of business revenue
Business revenue is the total value of economic benefits that an enterprise receives during the accounting period, arising from the normal production and business activities of the enterprise, contributing to increasing equity, excluding capital contributions from shareholders or owners. In construction and installation activities, the consumption of products is called project handover. Revenue in a construction and installation enterprise is the total
The amount of money that will be collected from the consumption of products, provision of services, financial activities and other activities of the enterprise. In which, the main revenue is from the handover of works to customers.
2.1.2.2. Conditions for revenue recognition
Sales revenue is recognized when all five (5) following conditions are simultaneously satisfied:
+ The enterprise has transferred the majority of risks and benefits associated with ownership of the product or goods to the buyer.
+ The enterprise no longer holds the right to manage the goods as the owner of the goods or the right to control the goods.
+ Revenue is determined relatively certainly.
+ The enterprise has obtained or will obtain economic benefits from the sales transaction.
+ Identify costs associated with sales transactions.
Conditions for recognizing service provision revenue when simultaneously satisfying the following conditions:
+ Revenue is determined relatively certainly.
+ Ability to obtain economic benefits from the transaction of providing that service.
+ Determine the completed work on the balance sheet date.
+ Determine the costs incurred for the transaction and the costs to complete the transaction to provide that service.
2.1.2.3. Revenue recognition principles
Revenue recognition must comply with the following accounting principles:
Accrual basis: Revenue must be recorded at the time it arises regardless of whether the money has been collected or not. Therefore, sales revenue is determined according to the fair value of the amounts received or to be received.
Matching: When a revenue is recognized, a corresponding expense related to the generation of that revenue must be recognized. Costs corresponding to revenue include costs of the period in which the revenue is generated and costs of previous periods or expenses payable but related to the revenue of that period.
Caution: Revenue and income are only recognized when there is solid evidence of the possibility of obtaining economic benefits.
2.1.2.4. Documents used
+ Value added tax invoice (Form No. 01GTKT3/001).
+ Regular sales invoice (Form No. 02GTTT3/001)
+ Warehouse delivery note (Form No. 02-VT).
+ Receipt (Form No. 01-TT).
+ Bank statement.
2.1.2.5. User account
Accountants use account 511 – Sales revenue and CDSV. Account 511 has 4 sub-accounts:
+ Account 5111 – Sales revenue.
+ Account 5112 – Revenue from sales of finished products.
+ Account 5113 – Service revenue.
+ Account 5118 – Other revenue.
Account structure:
In debt
Account 511 | Have | |
- Special consumption tax and export tax payable are calculated on actual sales revenue of products, goods and services provided to customers and determined to be sold during the accounting period. - VAT payable by enterprises paying VAT calculated by the direct method. - Sales revenue from returned goods, sales discounts, and trade discounts carried forward at the end of the period. - Transfer revenue to account 911. | - Revenue from sales of finished products, goods, investment real estate and services provided by the enterprise during the accounting period. | |
Account 511 has no ending balance. | ||
2.1.2.6. Accounting diagram
Diagram 2.1: Diagram of accounting for sales revenue and services
111, 112,131...
3332, 3333 511
Special Consumption Tax, Export Revenue from Sales of Goods and Services
5211, 5212, 5213
End of period transfer of revenue deductions
3331
131
911 Uncollected Revenue
Revenue transfer
2.1.2.7. Sales revenue accounting books
+ General Journal (Form S03a – DN).
+ Detailed accounting books: Sales journal, Sales detail book, Account detail book 511 (Form S35 - DN).
+ General accounting book: Ledger account 511 (Form S03b – DN).
Financial revenue
2.1.2.8. Concept
Financial revenue is the income and profits related to the capital activities of the enterprise such as: Interest income, income from asset leasing activities, income from investment activities, securities trading, dividends, profits shared...
2.1.2.9. Accounting documents
+ Receipt (Form No. 01-TT).
+ VAT invoice (Form No. 01GTKT3/001).
+ Notice available.
+ Sales invoice (Form No. 02GTTT3/001).