Organizing fixed asset accounting with issues of management and improving the efficiency of using fixed assets at Southeast Asia Tourism and Trade Joint Stock Company

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Topic :

Organizing fixed asset accounting with issues of management and improving the efficiency of using fixed assets at Southeast Asia Tourism and Trade Joint Stock Company

Index

Foreword 1

Part I 6

General theory of fixed asset accounting 6

at businesses 6

I. General overview of fixed assets 6

1. Concept and characteristics of fixed assets 6

1.1. Concept of fixed assets 6

1.2. Characteristics of fixed assets 6

2. Classification of fixed assets 7

2.1. According to the form of expression 7

2.2. By ownership 8

2.3. According to the source of formation 9

2.4. According to the function and usage situation 9

3. Fixed Asset Valuation 10

II. Accounting for fixed asset fluctuations 12

1. Role and tasks of fixed asset accounting 12

2. User account 13

3. Detailed accounting of fixed assets 15

4. Accounting for changes in fixed assets 16

4.1. Accounting for increase in tangible fixed assets 16

4.2. Accounting for decrease in tangible fixed assets 19

4.4 Accounting for leased and leased fixed assets 21

5.3 Accounting for increases and decreases in intangible fixed assets 25

5. Accounting for depreciation of fixed assets 28

5.1. Nature of fixed asset depreciation 28

5.2. Depreciation calculation methods 29

5.3. Some regulations on calculating depreciation of fixed assets according to current regulations. 31

5.4 Accounting for depreciation of fixed assets 32

6. Accounting for fixed asset repairs 34

Part II 35

Current status of fixed asset accounting organization in tourism and trade joint stock companies

Southeast Asia 35

I/ Characteristics of business organization and accounting work organization at Southeast Asia Tourism and Trade Joint Stock Company 35

1. Overview of the company's development history. 35

2. Management structure 36

3. Characteristics of accounting organization at Southeast Asia Tourism and Trade Joint Stock Company. 41

4. Applicable accounting form 43

II. Organizing detailed accounting of fixed assets at Southeast Asia Tourism and Trade Joint Stock Company 45

A. Characteristics of fixed assets of Southeast Asia Tourism and Trade Joint Stock Company 45

1. Classification of fixed assets 45

2. Fixed Asset Valuation 45

3. Current status of fixed assets of Southeast Asia Tourism and Trade Joint Stock Company 46

B. Detailed accounting of company's fixed assets 47

III. Accounting for increases and decreases in fixed assets 48

1. Initial accounting organization of fixed assets 48

2. Accounting for fixed assets at Southeast Asia Tourism and Trade Joint Stock Company 48

2.1 Accounting for increase in fixed assets 48

2.2 Accounting for reduction of fixed assets 53

3. Accounting organization on detailed general ledger 58

IV. Accounting for depreciation of company's fixed assets 63

v. Organization of accounting for fixed asset repair at Southeast Asia Tourism and Trade Joint Stock Company... .. 65 Part III 68

Some recommendations to improve fixed asset accounting at Southeast Asia Tourism and Trade Joint Stock Company 68

i. Analysis of the company's fixed asset usage situation 68

II. The need to improve fixed asset accounting at company 68

III. General comments on the company's situation. 69

1. Outstanding advantages in accounting work at company 69

2. Some problems exist in the organization of fixed asset accounting at the company. 70

IV. Some recommendations to contribute to improving fixed asset accounting at Southeast Asia Tourism and Trade Joint Stock Company 71

Conclusion 72

preface

In the cause of industrialization and modernization of the country, accounting is an important job serving the accounting and economic management, it also has a positive role in asset management and operation of production and business activities of enterprises.

Fixed assets (FA) are one of the basic components that create the technical infrastructure for the national economy, and at the same time are an important component that determines the survival of enterprises in the production and business process. For enterprises, FA is a necessary condition to reduce labor intensity and increase labor productivity. It represents the technical infrastructure, technological level, capacity and strength of the enterprise in developing production and business. In the current market economy, especially when science and technology become a direct productive force, FA is an important factor to create competitive strength for enterprises.

For the Tourism and Trade industry, fixed asset accounting is an important step in the entire accounting volume. It provides a complete source of reliable data on the current fixed asset situation of the company and the increase and decrease of fixed assets.... Thereby strengthening the measures to inspect and strictly manage the company's fixed assets. Therefore, the organization of fixed asset accounting is always a concern of commercial enterprises as well as economic managers of the State. With the growing and perfecting trend of the market economy in our country, the previous concepts of fixed assets and their accounting methods are no longer suitable and need to be amended, supplemented, improved and perfected promptly in both theory and practice to serve the requirements of business management.

During my studies at school and my internship, research and study at Southeast Asia Tourism and Trade Joint Stock Company. With the enthusiastic guidance of teachers and staff of the finance and accounting department, I boldly chose the topic "Organizing fixed asset accounting with issues of management and improving the efficiency of using fixed assets at Southeast Asia Tourism and Trade Joint Stock Company" with the desire to contribute a small part of my efforts to the improvement and completion of the company's accounting system.

The structure of the topic, in addition to the introduction and conclusion, includes the following three main parts: Part I: General theory of fixed asset accounting in enterprises

Part II: Current status of fixed asset accounting at Dong Nai Tourism and Trade Joint Stock Company

South Asia

Part III: Some recommendations to improve fixed asset accounting at Southeast Asia Tourism and Trade Joint Stock Company

Part I

General theory of fixed asset accounting in enterprises

I. General overview of fixed assets

1. Concept and characteristics of fixed assets

1.1. Concept of fixed assets

According to the viewpoint of many economists, the criteria for identifying fixed assets in every production process and classifying which assets are fixed assets are based on two criteria:

- Valuable assets

- Assets with long-term use

These two indicators are regulated by competent State agencies and it depends on each different country. However, the different regulations are usually only in terms of value, but in terms of time of use, they are relatively similar. In particular, these regulations are not immutable, but can change to suit market value and other factors.

For example, according to Decision No. 507/TC dated July 22, 1986, fixed assets must be labor materials with a value of over 100 thousand VND and a usage time of more than 1 year. Currently, based on the management level and the reality of our country's economy, the Ministry of Finance has specifically regulated the above 2 criteria through Decision 166/1999/QD-BTC issued on December 30, 1999. These are:

- Has a usage period of 1 year or more

- Value from 5,000,000 VND or more.

Any means of labor that does not satisfy the above two criteria are called small labor tools. The Ministry of Finance's decision to stipulate the value to determine which assets are fixed assets is a suitable decision, creating easier conditions for the management and use of fixed assets, while accelerating the renewal of equipment and tools for production and business activities.

1.2. Characteristics of fixed assets

An important characteristic of fixed assets is that when participating in the production and business process, they gradually wear out and the value of that wear is transferred to the production and business costs of the period. Unlike small labor tools, fixed assets participate in many business periods, but still retain their original physical form until they are damaged.

However, we need to note an important point, that is, only physical assets used in the production or circulation of goods and services that satisfy the above two criteria are called fixed assets. This point helps us distinguish between fixed assets and goods. For example, computers would be

goods or instead of being classified as office fixed assets, if the business buys the machine for resale. But if the business uses the computer for its business activities, the computer is a fixed asset.

Fixed assets are also distinguished from long-term investments, although both are maintained beyond one accounting period. But long-term investments are not used for the main business activities of the enterprise. For example, land maintained for future production expansion is classified as long-term investment. In contrast, land on which a factory is built by an enterprise is a fixed asset.

2. Classification of fixed assets

Because fixed assets in enterprises have many types with many different forms of expression, investment properties, uses and usage situations..., in order to facilitate the management and accounting of fixed assets, it is necessary to arrange fixed assets into groups according to certain characteristics. This arrangement creates favorable conditions for maximizing the use of fixed assets and serves well the work of fixed asset statistics.

Fixed assets can be classified according to many different criteria, such as by form of expression, by source of formation, by function and usage situation... each classification method will meet certain specific management needs:

2.1. According to the form of expression

Fixed assets are divided into intangible fixed assets and tangible fixed assets.

* Tangible fixed assets: Are means of labor that are mainly physical in form, have great value and long-term use, participate in many business cycles but still retain their original physical form. Belonging to this category include:

- Buildings and structures: Including basic construction works such as houses, structures, bridges... serving production and business.

- Machinery and equipment: Includes all types of machinery and equipment used in production and business.

- Transmission equipment: Means of transport such as locomotives, pipelines and other vehicles (cars, tractors, trucks...)

- Management equipment: includes management equipment such as measuring instruments, computers, air conditioners.

- Perennial plants, working animals for products: Including perennial plants (coffee, tea, rubber...), working animals (elephants, cows, plow horses...) and animals raised for products (dairy cows, breeding animals...).

- Welfare fixed assets: Including all fixed assets used for public welfare needs (Restaurants, motels, cultural houses, football fields, sports equipment...)

- Other tangible fixed assets: Including fixed assets that are not specified to be reflected in the above categories (works of art, technical books...).

* Intangible fixed assets: Are fixed assets without physical form, representing an amount of invested value directly related to many business cycles of the enterprise. Intangible fixed assets include:

- Establishment and production preparation costs: Including costs related to establishment, production preparation, land reclamation costs, such as costs for research, exploration, investment project preparation, costs for initial capital mobilization, travel, meeting, advertising, opening costs...

- Patents: Are the costs that businesses must spend to buy back copyrights, patents, or pay for research projects, trial production, and are granted patents by the state.

- Research and development costs: Are costs for business research and development invested or outsourced by the unit.

- Commercial advantage: Are the costs of commercial advantage that the enterprise must pay in addition to the actual value of tangible fixed assets, due to the convenience of commercial location, customer trust or business reputation.

- Concession rights (or exploitation rights): Includes the costs that businesses must pay to purchase the exclusive right to exploit important operations or the exclusive right to produce and consume a type of product according to the concession contracts signed with the State or a franchisor, along with the costs related to receiving the privilege (commissions, communication, legal procedures...)

- Tenancy rights: Is the cost paid to the previous tenant to inherit the rental rights according to the contract or law.

- Brand: Includes the costs that a business must pay to buy back a brand or a brand name. The useful life of a trademark lasts throughout its existence, unless there are signs of depreciation (products or goods bearing that brand sell slowly, sales decrease...)

- Land use rights: Includes all costs incurred by the enterprise related to acquiring the right to use land and water surface for a certain period of time.

- Copyright: Is the remuneration paid to the author and is recognized by the State as giving the author the exclusive right to publish and sell his work.

Classifying fixed assets according to this criterion creates favorable conditions for fixed asset accounting organizers to use accounting accounts appropriately and fully exploit the technical features of fixed assets.

2.2. By ownership

According to this criterion, fixed assets are divided into self-owned fixed assets and leased fixed assets.