Determine Business Results from Other Activities

Business results from production and business activities are the difference between total revenue and total costs of all products, goods and services determined for consumption during the period and taxes payable according to State regulations.

Performance results

business

Revenue

pure

Cost of goods

sell

Cost of sales

row

Management costs

business

In there:

Net revenue = Sales and service revenue - Deductions

(discounts, rebates, sales returns, special consumption tax, export tax, VAT calculated by direct method).

1.1.4.2 Determine business results from other activities

Determine business results from financial activities

Determine the results

The business results from financial activities are the difference between the revenue from financial investment activities such as: income from short-term and long-term securities investment, interest difference from foreign currency sales,... and the expenses of financial investment activities such as: borrowing costs, costs of capital contribution to joint ventures, associations... actually incurred during the period.

Performance results

financial business

Operating revenue

financial

Operating costs

financial

Other activities are activities that are infrequent, unplanned, or planned but unlikely to be performed.

Business results from other activities are the difference between other income such as: collection of bad debts that have been written off, compensation for contract violations, collection of fixed asset liquidation,... and other expenses such as: fixed asset liquidation costs, compensation for economic contract violations,... arising during the period.

Performance results

other business

Revenue

other

Expense

other

1.2 ACCOUNTING FOR REVENUE AND INCOME.

1.2.1 Accounting for sales revenue and service provision.

1.2.1.1 Concept.

Sales and service revenue is the total amount of money collected from transactions and revenue-generating activities such as selling products, goods, providing services to customers, including surcharges and additional fees outside the selling price (if any).

1.2.1.2 Conditions for revenue recognition.

Sales revenue is recognized when all five of the following conditions are satisfied:

-The enterprise has transferred the significant risks and rewards of ownership of the products or goods to the buyer.

-The enterprise no longer holds management rights as the owner of the goods or control of the goods.

-Revenue is determined relatively certainly.

-The enterprise has received or will receive economic benefits from the sales transaction.

- Identify costs associated with sales transactions.

Revenue from providing services is recognized when all four of the following conditions are satisfied:

-Revenue is determined relatively certainly.

- Ability to obtain economic benefits from the transaction of providing that service.

-Determine the portion of work completed on the date of the Balance Sheet.

-Determine the costs of incurring the transaction and the costs to complete the transaction to provide that service.

1.2.1.3 Principles of determining revenue

-Revenue must be recorded at the time it arises, regardless of whether the money has been collected or not.

-Matching: when recording revenue, a matching expense must be recorded.

-Caution: revenue and income are only recorded when there is solid evidence of the ability to obtain economic benefits.

1.2.1.4 Accounting documents. (according to Decision No. 15/2006/QD-BTC March 20, 2006)

VAT invoice

Sales invoice (regular).

Payment table for agents and consignees – 01- BH. Counter card – 02 – BH.

Internal delivery and transportation vouchers - 03 PXK-3LL. Delivery vouchers for goods sent to agents - 04 HDL-3LL.

Financial leasing service invoice – 05 TTC-LL.

List of purchased goods without invoice – 04/GTGT. Receipt.

Bank statement.

1.2.1.5 User account

Account 511 "Sales and service revenue" has 5 sub-accounts:

-Account 5111 “Revenue from sales of goods”.

-Account 5112 "Revenue from sales of finished products".

-Account 5113 “Revenue from providing services”.

-Account 5114 "Subsidy and subsidy revenue".

-Account 5117 "Revenue from investment real estate business".

Account 512 "Internal revenue" has 3 sub-accounts:

-Account 5121 “Revenue from sales of goods”.

-Account 5122 “Revenue from sales of products”.

-Account 5123 “Revenue from providing services”.

Content and structure of account 511

TK511

- Special consumption tax or export tax

payable

-VAT must be paid by direct method.

-Value of returned goods and sales discounts and trade discounts.

-Transfer net revenue to account 911

to determine business results.

-Revenue from sales of goods and finished products

actual occurrence during the period.

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Note: Account 511 has no ending balance.

1.2.1.6 Accounting method

Diagram 1.1 General accounting account 511 – Sales revenue and service provision

Account 333

Account 511

Account 111,112

(1)

(5)

Account 521

Account 311,315

(2)

(6)

Account 531

Account 334

(3)

(7)

Account 532

Account 131

(4)

(8)

Account 911

Account 152

(10)

(9)

Interpretation:

(1) Taxes deducted from revenue (special consumption tax, export tax)

(2) Transfer discount

(3) Returned goods transferred

(4) Sales discount carried forward

(5) Sales revenue collected

(6) Revenue is transferred directly to pay debt

(7) Pay salary and bonus by finished product

(8) Sales revenue not yet collected

(9) Sales revenue (exchange of goods)

(10) At the end of the period, net revenue is transferred to determine business results.

1.2.2 Accounting for financial activity revenue

1.2.2.1 Concept

Financial investment is the activity of exploiting and using idle resources of an enterprise to invest outside the enterprise such as investing in the stock market, contributing capital to joint ventures, etc.

business, lending capital... to increase income and improve business performance of enterprises.

Financial revenue is the income and profits related to financial activities and other capital business activities of the enterprise. Financial revenue includes:

 Interest: loan interest, bank deposit interest, deferred payment interest, installment sales interest, investment interest on bonds, treasury bills, payment discounts received from purchasing goods and services.

 Dividends distributed.

 Income from investment activities of buying and selling short-term and long-term securities.

 Income from recovery or liquidation of joint venture capital contributions, investments in associated companies, investments in subsidiaries, and other capital investments.

 Income from other investment activities.

 Exchange rate interest.

 Interest difference from selling foreign currency.

 Capital transfer profit difference.

 Other financial operating revenues.

1.2.2.2 Accounting documents

Use invoices and related receipts.

1.2.2.3 User account

Accountants use account 515 "Financial activity revenue". Content and structure of account 515.

TK515

-VAT payable calculated by direct method (if any).

-Transfer of financial activity revenue

Net to account 911 to determine business results.

-Financial revenue arising during the period.

Note: Account 515 has no ending balance.

1.2.2.4 Accounting method.

Diagram 1.2 General accounting account 515 – Financial activity revenue

Account 333.1

Account 515

TK 11, 138, 12, 22

(6)

(1)

Account 3387

(2)

Account 331, 11

(3)

11th Century, 138

(4)

Account 911

TK 31, 33, 34

(7)

(5)

Interpretation:

(1) Dividend revenue, distributed profits.

(2) Transferring deferred sales interest, installment sales interest, and pre-received loan interest into financial operating revenue.

(3) Payment discounts enjoyed.

(4) Profit from selling securities, foreign exchange trading, loan interest, deposit interest.

(5) Interest on debt payments in foreign currency.

(6) VAT payable under direct method.

(7) At the end of the period, transfer financial activity revenue to account 911.

1.2.3 Accounting for income from other activities.

1.2.3.1 Concept

Other income includes income not from business activities or financial investment activities. Other income of enterprises includes:

 Income from sale and liquidation of fixed assets.

 Profit difference due to revaluation of materials, goods, fixed assets contributed to joint ventures, investments in associated companies, and other long-term investments.

 Income from sale and leaseback of assets.

 Collect fines due to customers violating the contract.

 Collect bad debts that have been written off.

 Taxes refunded by the State budget.

 Collecting debts with unidentified owners.

 Customer bonuses related to the consumption of goods, products and services are not included in revenue (if any).

 Income from gifts, cash and in-kind gifts from organizations and individuals to businesses.

 Other income besides the above.

1.2.3.2 Accounting documents

VAT invoice. Sales invoice.

Minutes of contract breach. Receipt.

Tax and fine payment receipt.

1.2.3.3 User account

Accountants use account 711 “Other income”. Content and structure of account 711.

TK711

-The amount of VAT payable is calculated by the method

direct method (if any).

-Transfer to account 911 to determine business results.

-Other income arising during the year

period

Note: account 711 has no ending balance.

1.2.3.4 Accounting method

Diagram 1.3 General accounting account 711 – Other income

Account 333.1

Account 515

Account 111,112,131

(1)

(2)

Account 111,112

(3)

Account 331,338

(4)

15th,21st century

(5)

Account 911

Account 3386,344

(7)

(6)

Interpretation:

(1) VAT payable is calculated by the direct method.

(2) Collect money from sale and liquidation of fixed assets.

(3) Collecting fines from customers, collecting compensation from insurance agencies, collecting bad debts that have been written off, receiving refunds of VAT, export tax, and special consumption tax.

(4) Collecting debts of unknown owners.

(5) Sponsored, donated materials, goods, and fixed assets.

(6) Collect fines from customers by deducting from their deposits.

(7) At the end of the period, transfer all other income.

1.3 ACCOUNTING FOR REVENUE DEDUCTIONS

1.3.1 Trade discount

1.3.1.1 Concept

Trade discount is the amount of money that a business has deducted or paid to a buyer because the buyer has purchased products, goods, or services in large quantities.

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