Perfecting fixed asset accounting to enhance fixed asset management in Vietnamese construction enterprises

Regarding fixed asset repairs, American accountants mention three types of repairs: routine repairs, major repairs, and fixed asset improvement repairs. Routine repairs are the work to maintain the normal operating state of fixed assets, and regular repair costs are recorded as expenses on the current period's Business Results Report. Major repairs are the work to not only maintain the normal operating state of fixed assets but also extend the useful life of fixed assets compared to the original estimated time.

Initially, major repair costs are recorded as a reduction in the accumulated depreciation of fixed assets. Repair and improvement of fixed assets is the work of replacing one or several parts of fixed assets to make the fixed assets operate more efficiently and productively, the cost of repair and improvement is recorded as an increase in the original value of fixed assets. Thus, for major repairs and repair and improvement of fixed assets, after the repair work is completed, on the basis of the depreciable value and the expected useful life of the fixed assets after repair, the accountant calculates and records depreciation. In accounting for fixed asset repairs, the profound difference between Vietnam and the US is the recording and settlement of major repair and repair and upgrade costs of fixed assets.

1.4.3. French Accounting

According to French accounting, immovable assets (IAs) are all types of assets that an enterprise owns, manages and uses for a long period of time (at least more than one year). IAs include three types: tangible IAs, intangible IAs and financial IAs [38], [39], [44].

Tangible fixed assets are assets with specific forms, such as: Land; Architectural works; Means of transport; Technical means and other tangible fixed assets. Intangible fixed assets are assets without physical form but can bring long-term economic benefits to the enterprise. Intangible fixed assets include: Establishment costs; Research and development costs; Concession rights; Patents; Lease rights; Commercial advantages and other intangible fixed assets. Financial fixed assets include stocks, bonds, deposits, investments, loans. French accounting is quite similar to American accounting in classifying fixed assets.

Regarding the determination of initial value, the original price of intangible assets is the total cost that the enterprise pays from the implementation until the completion of each intangible asset.

Specifically. The original price of purchased tangible fixed assets includes the purchase price and transportation costs, customs fees, insurance, installation, and testing (excluding registration tax, commission and brokerage fees). For tangible fixed assets that the enterprise builds itself, the original price is all costs incurred from the time of construction preparation until the project is completed and put into use. For fixed assets that receive contributed capital or shares to establish a company, the original price is the price agreed by the founding general meeting. As for financial fixed assets, the original price is the purchase price or the price stated on the sales contract, the costs of purchasing securities are not included in the original price but are recorded in business expenses and deducted from the results of the fiscal year. Thus, the fundamental difference between Vietnam and France in determining the initial value of assets is the recognition of registration taxes, commissions and brokerage fees incurred during the process of purchasing assets.

Assets in a business can increase due to purchase, capital contribution and self-construction. In case of capital contribution by assets, accountants reflect the entries of promised contributions, called contributions (for joint stock companies) and made contributions. For purchased assets, based on related documents, accountants record an increase in original price and reflect payment for the purchase to the seller. For self-constructed assets, the costs incurred during the construction process are collected in an intermediary account (unfinished assets). When the project is completed, accepted and put into use, accountants record an increase in original price of assets.

Fixed assets in an enterprise may decrease due to liquidation when their value is fully depreciated and sold. When fixed assets are fully depreciated, the accountant will write them off by recording depreciation and reducing the original value of the fixed assets. In case of sale, the accountant will write off the fixed assets and reflect the proceeds from the sale. The result of the sale of fixed assets is the difference between the selling price and the original value of the fixed assets. In recording changes in fixed assets, there is no difference.

significant between Vietnamese accounting and French accounting.

Regarding depreciation, fixed assets can be depreciated according to the following methods: Fixed method (Linear depreciation); Decreasing method (With two decreasing calculation methods: According to a certain percentage on the fixed value and According to the sum of the serial numbers of the years of use) and Output method. For some intangible fixed assets and financial fixed assets, French accountants do not calculate depreciation but make provisions if there is a decrease in value. Provision costs are not included in the cost of products but

deducted from the results of the fiscal year. When there is no longer a decline in value or the decline is less, the difference in the provision is reversed to increase the results of the fiscal year. Unlike Vietnam, France applies the depreciation method based on the sum of the years of use for tangible fixed assets and does not calculate depreciation for intangible fixed assets.

1.4.4. Lessons learned for Vietnam

Vietnam is in the process of opening up and integrating its economy with the regional and world economies, implementing economic development on the basis of promoting internal resources, enhancing mobilization and effectively using external resources. With the open-door policy and encouragement

State investment, investment capital from other countries, regions and territories in the world in Vietnam is increasing, operating in a variety of industries, fields, locations and types of enterprises. However, due to different economic development conditions, political regimes and cultures, there are certain differences in the promulgation and implementation of economic management policies between Vietnam and other countries. In order to create favorable conditions for production and business activities, and at the same time create equality

In order to ensure equality before the law for all types of enterprises and economic sectors as well as promote the process of international economic integration, the study and reference of international practices and experiences of some developed countries in economic management in general and the field of accounting in particular is a very important task. Through reviewing and analyzing international accounting standards and the experiences of the US and France in accounting for fixed assets, the following lessons can be drawn:

Firstly , research, develop and promulgate a system of national accounting standards and a system of financial legal documents to create consistency among types of enterprises in the national economy, while creating favorable conditions for enterprises in organizing and implementing accounting and financial work. The system of national accounting standards must be consistent with international practices, the circumstances, economic development conditions and management level of Vietnam, with reference to the experience of countries with developed market economies.

Second , implement the documentization of economic activities in the national economy. All economic transactions within the legal framework must be transparent.

legal and valid invoices and documents as the basis for checking, comparing, paying and processing data. For fixed assets, if the enterprise has full documents determining the original price of the fixed assets, it will create consistency between the enterprise and the tax authority when settling taxes in general and corporate income tax in particular. Research to increase economic transactions without cash payment, carry out all sales transactions

Invoices must be delivered between buyers and sellers, regardless of whether they are individuals or economic organizations, or the value of the economic transaction.

Third , diversify depreciation methods to create rich choices for enterprises in determining and recording fixed asset depreciation costs in production and business costs. This, on the one hand, creates favorable conditions for enterprises in calculating

correctly, fully calculate depreciation, accurately determine production costs, product and service prices and recover investment capital for reproduction; on the other hand, create consistency in determining costs when settling taxes between the State and enterprises, ensuring the interests of both the State budget and enterprises.

Fourth , accounting for the cost of repairing and upgrading fixed assets. The result of repairing and upgrading fixed assets can extend the remaining useful life of the fixed assets compared to the original standard or improve the production capacity of the fixed assets (improve the quality of products and services created by the use of upgraded fixed assets; modernize the features and functions of fixed assets or reduce operating costs for fixed assets). If major repairs extend the remaining useful life of fixed assets, the cost of major repairs is recorded as a reduction in the accumulated depreciation value of the fixed assets. In case major repairs improve the production capacity of fixed assets, the cost of major repairs is recorded as an increase in the original value of fixed assets.

Fifth , record trade discounts in purchase and sale transactions. The actual price paid between the parties is the amount after deducting the trade discount, so the invoice must reflect the price before discount, the discount amount and the price after discount. The buyer records the value of assets or expenses, the seller records revenue at the price minus the trade discount.

Sixth , create a favorable legal corridor for the establishment and operation of enterprises operating in the field of valuation to provide this type of service to customers.

Enterprises, creating unity in asset value of the subjects participating in the establishment of the enterprise, and at the same time being the legal basis for determining asset value when settling between state agencies and enterprises.

Seventh , create a legal corridor and assist enterprises in organizing the apparatus and accounting work to perform accounting types: financial accounting, management accounting and tax accounting.

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In short , fixed assets in enterprises play an important role in the existence and development of enterprises, affecting labor productivity, product and service quality, competitiveness and standing firm in the market. Fixed assets accounting is an indispensable part of accounting in accounting units in general and enterprises in particular, aiming to provide economic and financial information to meet the decision-making needs of related managers.

to invest, manage and use fixed assets to improve the efficiency of using fixed assets, contributing to the prosperous development of the enterprise.

Chapter 1 of the Thesis is entitled: " General theory of fixed asset accounting".

The thesis aims to strengthen the management of fixed assets in enterprises . The thesis focuses on presenting the concept, classifying and determining the indicators related to fixed assets in enterprises. The thesis analyzes the requirements for fixed asset management, thereby determining the tasks of fixed asset accounting in enterprises. On that basis, the thesis goes into depth to present and analyze fixed asset accounting in enterprises in terms of financial accounting and management accounting. At the same time, the thesis systematizes the indicators to evaluate the equipment situation and efficiency of using fixed assets in enterprises; considers international accounting standards and the experience of the US and France in fixed asset accounting; draws some lessons for Vietnam.

The theoretical issues on fixed asset accounting in enterprises presented and analyzed in Chapter 1 of the Thesis are an important basis for reviewing and evaluating the practice of fixed asset accounting in enterprises according to the Vietnamese accounting system through different periods of economic and social development as well as its application in construction enterprises.

Vietnam. On that basis, propose solutions to improve fixed asset accounting to improve the efficiency of management and use of fixed assets in Vietnamese enterprises in general and construction enterprises in particular.

Chapter 2: Current status of fixed asset accounting in enterprises

Vietnam construction company

2.1. Overview of Vietnamese construction enterprises

2.1.1. Construction enterprises and the role of construction enterprises

Implementing the economic development policy, transforming the economy from a centralized bureaucratic subsidy mechanism to a market economy with State management initiated and led by the Party, we have achieved certain great achievements. The economy has achieved continuous growth, each year higher than the previous year, the total value of domestic products (GDP) increased by an average of 7.5%/year in the period 2001 - 2005; people's lives have improved significantly, average income per capita increased by 12.1%/year, from 5.7 million VND in 2000 to over 10 million VND in 2005; the economic structure continues to change towards industrialization - modernization, the proportion of industry and construction in GDP increased significantly (as of 2005, industry and construction accounted for 41.03% of GDP); International economic integration has achieved great successes, political security, social order and safety are stable, and Vietnam's position in the international arena is affirmed [3, pp. 2-3]. Achieving these glorious results is thanks to the Party's correct innovation policy, the Government's resolute and timely direction, the support and efforts of the people, international friends, and the

Contributions of the Vietnamese business community in general and construction enterprises in particular.

Vietnam Construction Enterprises include all enterprises of all economic sectors, all types of enterprises established and operating in the territory of Vietnam under the Enterprise Law, operating mainly in the fields of civil, industrial, transport and irrigation construction. Construction enterprises have made great contributions to the construction of technical infrastructure for the national economy, creating necessary conditions for the operation of all other fields, industries and enterprises. During the transition period to socialism, implementing the industrialization and modernization of the country with the goal of striving by the year

By 2020, Vietnam will basically become a modern industrialized country, and the

The life, existence and operation of construction enterprises are objectively inevitable and meaningful.

especially important. The role of construction enterprises in the national economy is demonstrated through the following aspects:

Firstly , construction enterprises are an important component in the Vietnamese business community - an important cell of the economy. Data on the number of construction enterprises in the total number of enterprises in the country is illustrated in Table 2.1:

Table 2.1: Number of construction enterprises from 2000 - 2005

Year	Construction company	Number of enterprises nationwide	Rate (%)
1	2000	3,999	42,288	9.5
2	2001	5,693	51,680	11.0
3	2002	7,845	62,908	12.5
4	2003	9,717	72,012	13.5
5	2004	12,315	91,755	13.4
6	2005	15,252	112,952	13.5

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(Source: Statistical Yearbook 2006, Statistical Publishing House, Hanoi, 2007)

Thus, with the policy of promoting internal strength in economic development, creating a favorable legal corridor for investment activities, encouraging all economic sectors to participate in production and business activities, the number of enterprises nationwide in general, and construction enterprises in particular, has increased significantly over the years. If in 2000, construction enterprises accounted for 9.5% of the total number of enterprises nationwide, by 2005 this figure was 13.5%. In addition to the quantity index, construction enterprises also hold a large amount of fixed assets and long-term investment (LTI), production and business capital and generate a fairly large amount of net revenue compared to enterprises nationwide. Data on fixed assets and LTI, average production and business capital and net revenue of construction enterprises over a number of years are shown in Table 2.2:

Table 2.2: Fixed assets & investment indicators, average production and business capital and net revenue of construction enterprises from 2000 - 2005

(Unit: Billion VND)