Revenue accounting and determining business results at Mondial Tourism Company Limited

HUE UNIVERSITY FACULTY OF ECONOMICS FACULTY OF ACCOUNTING - FINANCE

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GRADUATION THESIS

REVENUE ACCOUNTING AND DETERMINING BUSINESS RESULTS AT MONDIAL TOURISM COMPANY LIMITED

Instructor: Students perform:

MSc. Hoang Thuy Duong Chau Thi Hai Tien

Class: K44B Accounting - Auditing Major: Auditing

COURSE 2010-2014

Thanks

First of all, I would like to express my sincere thanks to the teachers of Hue University of Economics who have wholeheartedly imparted to me professional knowledge so that I have a solid knowledge base not only in theory but also some experience in handling practical situations to help me confidently step into life. And above all, I would like to sincerely thank Ms. Hoang Thuy Duong for her dedicated help and guidance to help me complete this graduation thesis successfully.

I would also like to sincerely thank the Board of Directors and all the staff in the accounting department at Mondial Tourism Company Limited for creating favorable conditions during my internship. Especially Ms. Bien Thi Thanh Tin - Chief Accountant, who enthusiastically helped, guided, taught me working experiences and created all conditions for me to access the actual data sources of the Company, contributing to making my thesis better.

And here, I would like to thank my family, relatives and all friends who always encouraged and motivated me throughout my internship so that I could complete my graduation thesis well.

I wish you good health, success in work and life. I wish your company to grow stronger and stronger.

Thank you very much!

Hue, May 17, 2014 Student implementation

Chau Thi Hai Tien

INDEX

PART I: PROBLEM STATEMENT. 1

I.1. Reasons for choosing the topic. 1

I.2. Research objectives. 2

I.3. Research subjects. 2

I.4. Scope of research. 2

I.5. Research methods. 2

I.6. Topic structure. 3

PART II: RESEARCH CONTENT AND RESULTS. 4

CHAPTER 1: THEORETICAL BASIS OF REVENUE ACCOUNTING AND DETERMINING BUSINESS RESULTS AT ENTERPRISES. 4

1.1. General issues in revenue accounting and determining business results.4 1.1.1. Concept 4

1.1.2.Tasks of revenue accounting and determining business results. 5

1.1.3. The meaning of revenue accounting and determining business results. 5

1.2. Revenue accounting 6

1.2.1. Accounting for sales revenue and service provision. 6

1.2.2. Accounting for revenue deductions. 8

1.3. Accounting determines business results 10

1.3.1. Accounting for cost of goods sold 10

1.3.2. Accounting for sales costs and business management costs. 11

1.3.3. Financial revenue accounting. 12

1.3.4. Financial cost accounting. 13

1.3.5. Accounting for other income. 14

1.3.6. Other cost accounting. 15

1.3.7. Accounting for corporate income tax expenses. 16

1.3.8. Accounting determines business results. 17

1.4. Comparison between revenue accounting in Vietnam and international revenue accounting. Some experiences for Vietnam revenue accounting 18

1.5. Problems in State regulations on revenue accounting 22

CHAPTER 2. CURRENT STATE OF REVENUE ACCOUNTING AND DETERMINATION OF BUSINESS RESULTS AT MONDIAL TOURISM COMPANY LIMITED. 26

2.1. Company Overview. 26

2.1.1. History of formation and development 26

2.1.2. Functions, tasks, main business lines 27

2.1.2.1. Function 27

2.1.2.2. Task 27

2.1.2.3. Main business lines 27

2.1.3. Characteristics and organization of management apparatus. 28

2.1.3.1. Management organization model. 28

2.1.3.2. Functions and tasks of departments. 28

2.1.4. Characteristics and organization of accounting system 29

2.1.4.1. Organization of accounting apparatus. 29

2.1.4.2. Functions and tasks 30

2.1.5. Policies applied at Company 31

2.1.5.1. Applicable accounting standards and regimes 31

2.1.5.2. Applicable accounting form. 31

2.1.5.3. User account system. 32

2.1.5.4. Accounting reporting system. 32

2.1.6. The Company's main resource situation. 33

2.1.6.1. Labor situation of Company 33

2.1.6.2. Asset and capital situation of Company 34

2.1.6.3. Business performance of the Company 36

2.1.7. Some difficulties and advantages for the Company's business operations. 37

2.2. Current status of revenue accounting and determining business results at Mondial Tourism Company Limited. 38

2.2.1. Characteristics of business fields and customer classification at the Company. ..38 2.2.1.1. Characteristics of business fields. 38

2.2.1.2. Customer classification. 39

2.2.2. Revenue accounting at the Company. 40

2.2.2.1. Revenue accounting 40

2.2.2.2. Accounting for revenue deductions 52

2.2.3. Accounting determines business results at Company 54

2.2.3.1. Accounting for cost of goods sold 54

2.2.3.2. Accounting for sales costs 58

2.2.3.3. Business management cost accounting 61

2.2.3.4. Financial revenue accounting. 65

2.2.3.5. Financial cost accounting 67

2.2.3.6. Accounting for other income 68

2.2.3.7. Other cost accounting 68

2.2.3.8. Accounting for corporate income tax expenses 69

2.2.3.9. Accounting determines business results 70

CHAPTER 3. SOME SOLUTIONS TO IMPROVE REVENUE ACCOUNTING AND DETERMINING BUSINESS RESULTS AT MONDIAL TOURISM COMPANY LIMITED. 74

3.1. Evaluation of accounting work at Mondial Tourism Company Limited. 74

3.1.1. Advantages 74

3.1.2. Disadvantages 75

3.2. Evaluation of revenue accounting and determination of business results at Mondial Tourism Company Limited. 76

3.2.1. Advantages 76

3.2.2. Disadvantages 77

3.3. Some solutions to improve revenue accounting and determine business results at Mondial Tourism Company Limited. 80

PART III: CONCLUSION 84

1. Conclusion 84

2. Recommendation 85

LIST OF REFERENCES APPENDIX

LIST OF DIAGRAMS

Diagram 1.1: Accounting method for sales revenue and service provision. 8

Diagram 1.2: Accounting method for revenue deductions (Trade discounts, sales discounts, sales returns) 9

Diagram 1.3: Accounting method for revenue deductions (VAT by direct method, export tax, special consumption tax) 10

Diagram 1.4: Accounting method for cost of goods sold (by periodic inventory method).

................................................................ ................................................................ ...................................11

Diagram 1.5: Accounting method for sales costs and business management costs. 12

Diagram 1.6: Financial revenue accounting method. 13

Diagram 1.7: Financial cost accounting method. 14

Diagram 1.8: Other income accounting method. 15

Diagram 1.9: Other cost accounting methods. 16

Diagram 1.10: Current corporate income tax expense accounting method 16

Diagram 1.11: Accounting methods for determining business results. 17

Diagram 2.1: Organizational chart of the management apparatus. 28

Diagram 2.2: Organizational chart of accounting department. 30

Diagram 2.3: Sequence of circulation of hotel revenue documents. 41

Diagram 2.4: Restaurant revenue document circulation sequence. 47

LIST OF TABLES AND FIGURES

BOARD

Table 2.1: Labor situation of the Company over 3 years (2011-2013) 33

Table 2.2: Rates of deductions based on salary applied from 2012 to 2013 (according to the Social Insurance Law (2006) and some other relevant current legal documents) 63

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TABLE

Chart 2.1: The Company's assets in 3 years (2011-2013) 34

Chart 2.2: The Company's capital situation in 3 years (2011-2013). 35

Chart 2.3: The Company's business results in 3 years (2011-2013). 36

Chart 2.4: Service revenue structure of the Company in the fourth quarter of 2013. 40

LIST OF ABBREVIATIONS

CMKT: Accounting standards.

VAT: Value added.

Fixed assets: Fixed assets.

TT: Circular.

TK: Account.