Preparing and presenting consolidated financial statements at Saigon Tourist Corporation Limited - Current situation and solutions for improvement

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS

NGUYEN EN THI VI VI NHAN

Maybe you are interested!

Preparing and presenting consolidated financial statements at Saigon Tourist Corporation Limited - Current situation and solutions for improvement - 29
On the Preparation of Consolidated Financial Statements at Corporations
Database, Procedure and Method of Preparing Financial Statements According to Circular No. 200/2014/TT-BTC
Business Results for the Period 2009-June 30, 2012 According to Consolidated Financial Statements According to Vietnamese Accounting Standards.
Ranking the Level of Impact of Factors on Financial Statements

PREPARATION AND PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS AT SAIGON TOURISM CORPORATION - ONE MEMBER LLC - CURRENT SITUATION AND SOLUTIONS FOR IMPROVEMENT

MASTER'S THESIS IN ECONOMICS

Ho Chi Minh City - 2013

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY UNIVERSITY OF ECONOMICS

NGUYEN EN THI VI VI NHAN

PREPARATION AND PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS AT SAIGON TOURISM CORPORATION - ONE MEMBER LLC - CURRENT SITUATION AND SOLUTIONS FOR IMPROVEMENT

Major: Accounting Code: 60340301

MASTER'S THESIS IN ECONOMICS

SCIENTIFIC INSTRUCTOR: Associate Professor, Dr. BUI VAN DUONG

Ho Chi Minh City - 2013

COMMITMENT

“Preparing and presenting the consolidated financial statements at Saigon Tourist Corporation – One Member Limited Liability Company – Current status and solutions for improvement” is the topic of my Master’s thesis in Economics, majoring in Accounting-Auditing. This is my independent scientific research work. The thesis has not been published by anyone in any form.

Author: Nguyen Thi Vi Nhan

INDEX

Page

Cover Page Pledge Table of Contents

List of symbols and abbreviations

INTRODUCTION

1. The necessity of topic 1

2. Theoretical overview 2

3. Research objective 3

4. Research object and scope 3

5. Research methods 4

6. The meaning of thesis 4

7. Structure of topic 5

CHAPTER 1: THEORETICAL OVERVIEW OF PREPARATION AND PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

1.1. Concepts related to Consolidated Financial Statements 6

1.1.1. Reporting Entity, Financial Statements and Consolidated Financial Statements 6

1.1.1.1. Reporting entity 6

1.1.1.2. Financial Statements and Consolidated Financial Statements 7

1.1.1.2.1. Concept 7

1.1.1.2.2. Purpose of Financial Statements and Consolidated Financial Statements 8 1.1.2. Parent company - subsidiary group 8

1.1.2.1. Concept of parent company - subsidiary group 8

1.1.2.2. Types of linkages in parent company - subsidiary group 9

1.1.2.3. Organizational structure of parent company - subsidiary group 10

1.1.3. Business Consolidation 11

1.1.4. Control 12

1.1.5. Minority Shareholding 14

1.1.6. Commercial advantage 15

1.2. Theoretical approach to Consolidated Financial Statements 17

1.2.1. Entity theory 17

1.2.2. Parent company theory 18

1.2.3. Ownership interest theory 18

1.3. The role and system of Consolidated Financial Statements 19

1.3.1. The role of Consolidated Financial Statements 19

1.3.2. Consolidated Financial Reporting System 21

1.4. Preparation and presentation of consolidated financial statements 26

1.4.1. Principles for preparing and presenting Consolidated Financial Statements 26

1.4.1.1. General principles in preparing and presenting Financial Statements and Consolidated Financial Statements 26

1.4.1.2. Specific principles when preparing and presenting Consolidated Financial Statements

................................................................ ................................................................ ................... 27

1.4.2. Method of preparing Consolidated Financial Statements. 28

1.4.2.1. General method for preparing Consolidated Financial Statements 28

1.4.2.2. The impact of Consolidation Theory on accounting for the preparation and presentation of Consolidated Financial Statements 30

1.4.2.3. Exclusion entries in internal transactions of the Parent Company - Subsidiary group are affected by consolidation theories 32

1.4.2.4. Accounting for business consolidation using the purchase method 33

1.4.2.5. Accounting for investments in associates and joint ventures on separate financial statements and consolidated financial statements 33

1.4.2.6. Conversion of Financial Statements of Overseas Establishments 35

Chapter 1 Conclusion 36

CHAPTER 2: CURRENT STATEMENT OF PREPARATION AND PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS AT SAIGON TOURISM CORPORATION - ONE MEMBER LLC.

2.1. Overview of Saigon Tourist Corporation - One Member LLC 37

2.1.1. History of formation and development 37

2.1.2.Main business areas 38

2.1.3. Human resource organization 40

2.1.4. Organizational structure and characteristics of accounting work at Saigon Tourist Corporation - One Member LLC 41

2.1.4.1. Accounting system 41

2.1.4.2. Characteristics of accounting work 42

2.2. Principles and methods of preparing Consolidated Financial Statements according to Vietnamese Accounting Standards and related guiding circulars 43

2.2.1.Scope of companies required to prepare and present Consolidated Financial Statements ... 43 2.2.2.Scope of Consolidation of Financial Statements 44

2.2.3. Applied Unification Theory 45

2.2.4.Steps to prepare Consolidated Financial Statements 46

2.3. Current status of preparing Consolidated Financial Statements at Saigon Tourist Corporation - One Member LLC 53

2.3.1.Method of preparing Consolidated Financial Statements at Saigon Tourist Corporation - One Member LLC 53

2.3.2.Steps to prepare Consolidated Financial Statements at Saigon Tourist Corporation

– 53 One Member LLC

2.4. Some advantages and disadvantages in the process of preparing Consolidated Financial Statements at Saigon Tourist Corporation - One Member LLC 68

2.4.1. Advantages 68

2.4.2. Disadvantages 68

Chapter 2 Conclusion 71

CHAPTER 3: COMPLETING THE PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AT SAIGON TOURISM CORPORATION - ONE MEMBER LLC

3.1. Viewpoints and principles of preparing Consolidated Financial Statements at Saigon Tourist Corporation - One Member LLC 72

3.1.1. Viewpoints on preparing Consolidated Financial Statements at Saigon Tourist Corporation - One Member LLC 72

3.1.2. Principles for preparing Consolidated Financial Statements at Saigon Tourist Corporation - One Member LLC 73

3.2. Solution to complete the preparation of Consolidated Financial Statements at Saigon Tourist Corporation - One Member LLC 74

3.2.1. Completing the scope of consolidation of Financial Statements 74

3.2.2. Completing pre-consolidation adjusting entries 74

3.2.3. Perfecting the technique of preparing consolidated cash flow statements 77

3.2.4. Complete the tables 78

3.2.5. Completing the organizational structure to serve the preparation of Consolidated Financial Statements 79

3.2.6. Perfecting the human resource organization structure 80

3.3. Some recommendations to improve the preparation and presentation of Consolidated Financial Statements at Saigon Tourist Corporation - One Member LLC according to the Parent Company - Subsidiary Company model 81

3.3.1. For Saigon Tourist Corporation - One Member LLC 81

3.3.2 Some recommendations to improve the preparation and presentation of consolidated financial statements for the Ministry of Finance 82

Chapter 3 Conclusion 86

CONCLUSION 87

References Appendix

APPENDIX

 Appendix 1: Financial report

 Appendix 2: Table of total indicators before adjustment

 Appendix 3: Summary of the Parent Company's ownership share in the net assets of the subsidiary

 Appendix 4: Horizontal summation table of indicators on the financial statement

 Appendix 5: Summary table of indicators on the 2011 Business Performance Report

 Appendix 6: Summary table of indicators on the financial statements by indirect method