BANKING ACADEMY FACULTY OF ACCOUNTING AND AUDITING -----🙞🙜🕮🙞🙜----- GRADUATION THESIS TOPIC: IMPROVING FIXED ASSET ACCOUNTING AT ME LINH WATER SUPPLY JOINT STOCK COMPANY Student’s name: Lo Minh Anh Class: K24CLCKTA Student ID: 24A4002139 Supervisor: Dr. Le Van Luyen Hanoi, February 26th , 2025 [Type here] DECLARATION OF ORIGINALITY I hereby declare that this graduation thesis is the result of my own work, conducted during my internship period. All data and research findings presented in this thesis are truthful, collected, and processed at the Accounting Department of Me Linh Water Supply Joint Stock Company. The content has not been copied from any other research project or thesis.
Throughout the research process, I have referred to various sources of literature, all of which have been fully and properly cited in accordance with academic standards. I take full responsibility before the department, faculty, and university for the integrity of this declaration. Hanoi, February 26th, 2025 Thesis Author Lo Minh Anh [Type here] ACKNOWLEDGEMENTS The process of completing this graduation thesis marks one of the most meaningful and significant milestones in my university journey. This thesis, entitled “Improving Fixed Asset Accounting at Me Linh Water Supply Joint Stock Company”, is the result of my continuous effort in learning and self-improvement, as well as the valuable support and encouragement from my lecturers, peers, and the staff at the company where I undertook my internship.
First and foremost, I would like to express my deepest gratitude to Dr. Le Van Luyen, who generously provided me with dedicated guidance, insightful orientation, and valuable resources throughout the development of this thesis. His support has been instrumental in shaping my understanding and approach to the subject matter. I would also like to extend my sincere thanks to the staff at the Accounting Department of Me Linh Water Supply Joint Stock Company for their kind assistance and for creating favorable conditions for me to gain practical insights and collect the necessary data for my research.
Furthermore, I am truly grateful to the Board of Directors and all the lecturers at Banking Academy, especially those from the Faculty of Accounting and Auditing, for fostering an academic environment that has enabled me to pursue and complete this thesis. Despite my best efforts, due to the limitations in both practical experience and research time, this thesis may still contain certain shortcomings. I sincerely welcome any constructive feedback from my supervisor and peers to further improve the quality of this work. Once again, I would like to extend my heartfelt thanks to everyone who has supported me throughout this journey! [Type here] TABLE OF CONTENTS DECLARATION OF ORIGINALITY.
3 TABLE OF CONTENTS. 4 LIST OF ABBREVIATIONS. 7 LIST OF TABLES,, DIAGRAMS AND IMAGES. THEORETICAL FOUNDATIONS OF FIXED ASSETS AND FIXED ASSET ACCOUNTING IN ENTERPRISES.
General issues related to fixed assets. Definition, characteristics, and role of fixed assets. Classification and valuation of fixed assets. Fixed asset accounting in enterprises.
Fixed asset accounting according to accounting standards. Accounting methods for analyzing fixed assets according to current accounting regulations. Detailed accounting methods for fixed assets according to current accounting regulations. CURRENT SITUATION OF FIXED ASSET ACCOUNTING AT ME LINH WATER SUPPLY JOINT STOCK COMPANY.
General introduction of Me Linh Water Supply Joint Stock Company. History of formation and development of Me Linh Water Supply Joint Stock Company. Characteristics of business operations of Me Linh Water Supply Joint Stock Company. Characteristics of the organizational management structure of Me Linh Water Supply Joint Stock Company.
Organizational characteristics of the accounting function at Me Linh Water Supply Joint Stock Company. Current status of fixed asset accounting at Me Linh Water Supply Joint Stock Company. Characteristics and classification of fixed assets at Me Linh Water Supply Joint Stock Company. Detailed Fixed Asset Accounting at Me Linh Water Supply Joint Stock Company.
General fixed asset accounting at Me Linh Water Supply Joint Stock Company. Assessment of the Current Status of Fixed Asset Accounting at Mê Linh Water Supply Joint Stock Company. SOME SOLUTIONS TO IMPROVE FIXED ASSET ACCOUNTING AT ME LINH WATER SUPPLY JOINT STOCK COMPANY. Orientation for improving fixed asset accounting at Me Linh Water Supply Joint Stock Company.
Some solutions to improve fixed assets accounting at Me Linh Water Supply Joint Stock Company. Improve vouchers and accounting books for tracking fixed assets. Improve fixed asset classification. Improve the provision for major repair costs.
Improve fixed asset inventory procedures. Improve the application of software in accounting. Improve employee training. Improve management accounting for fixed assets.
Recommendations for improving fixed asset accounting at Me Linh Water Supply Joint Stock Company. 65 CONFIRMATION FROM THE INTERNSHIP ORGANIZATION. 77 [Type here] LIST OF ABBREVIATIONS No. Abbreviation Full Term 1 AD Accumulated depreciation 2 Admin & HR Administration – Human Resource 3 De Department 4 Dep Depreciation 5 Me Linh WASUCO Me Linh Water Supply Joint Stock 6 NBV Net book value 7 OC Original costs 8 Tech – Product Technical – Production 9 VAT Valued Added Tax [Type here] LIST OF TABLES, DIAGRAMS AND FIGURES Diagram 1.
1 Accounting for purchased fixed assets used in operation. 2 Accounting for installment purchases of tangible fixed assets. 3 Accounting for fixed assets formed from completed construction. 4 Accounting for self-constructed fixed assets.
5 Accounting for tangible fixed assets acquired through exchange. 6 Accounting for liquidation and sale of tangible assets used in business activities. 7 Accounting for reduction of tangible assets to tools and supplies. 8 Fixed asset depreciation accounting.
9 Accounting for fixed asset repair costs. 1 Management structure of Me Linh Water Supply Joint Stock Company. 2 Organizational structure of accounting work at Me Linh Water Supply Joint Stock Company. 3 Sequence of accounting entries in computerized form.
1 Comparison of three depreciation methods. 2 Fixed asset depreciation calculation table. 1 Fixed asset purchase declaration. 2 Tax declaration for purchase of fixed assets.
3 Enter “Increase” information in the “Fixed Assets” module. 4 Enter “Increase” information in the “Fixed Assets” module (continued). 5 Enter “Decrease” information in the “Fixed Assets” module. 6 Enter “Decrease” information in the “Fixed Assets” module (continued).
Rationale for choosing the topic Fixed assets are a type of long-term asset that often account for a large proportion of a company’s total assets. They play a particularly vital role in the business and production processes of enterprises and are an essential component of the physical infrastructure that supports the national economy. Moreover, fixed assets constitute a key part of an enterprise’s capital resources, reflecting its production capacity, level of technical equipment, and ability to apply modern technology in its operations. Therefore, the management and accounting of fixed assets are of great importance and necessity in any business operation.
The larger the value of fixed assets in an enterprise, the greater the demand for their efficient, scientific, and rigorous management and utilization. Fixed asset accounting is not a simple matter—it presents various challenges. Nevertheless, it is a critical factor that contributes to enhancing production quality and business efficiency, regardless of the size of the enterprise. During my internship at Me Linh Water Supply Joint Stock Company, I had the opportunity to deeply observe the practical significance of fixed assets.
With the knowledge acquired during my studies and the dedicated guidance of Dr. Le Van Luyen, along with the support of the accounting staff at the company, I came to fully appreciate the vital role of fixed asset accounting. Based on these observations and experiences, I decided to explore this area further and focus my graduation thesis on the topic: “Improving Fixed Asset Accounting at Me Linh Water Supply Joint Stock Company. Literature review Fixed assets and fixed asset accounting play a pivotal role in the sustainability and long-term development of enterprises.
Recognizing this 1 significance, numerous studies have been conducted both globally and in Vietnam over the years, focusing on this area. Most of these academic works seek to clarify the theoretical foundations of fixed asset accounting, analyze its practical implementation in various businesses, and propose appropriate improvements in line with organizational realities. In Vietnam, several domestic studies have contributed to identifying the current status of fixed asset accounting practices and offering solutions for enhancement. For instance, the doctoral dissertation by Dr.
Lê Minh Hà titled "Organizing Fixed Asset Accounting in Manufacturing Enterprises in Vietnam" (2005, University of Finance) and the dissertation by Dr. Phạm Văn Trung, "Improving Fixed Asset Accounting in Vietnamese Construction Enterprises in the Context of Economic Integration" (2010, Academy of Finance), focus on analyzing the accounting practices for fixed assets in manufacturing and construction enterprises. These studies also suggest a number of solutions aligned with the trend of international economic integration. However, many of the proposed solutions have shown limited applicability in current enterprise management contexts due to a lack of practicality and feasibility.
In addition, some master's theses—such as that of MSc. Trần Thị Lan, "Fixed Asset Accounting at the Joint Stock Company of Electrical Equipment and Installation" (2017, University of Economics Ho Chi Minh City), and MSc. Nguyễn Văn Hùng, "Improving Fixed Asset Accounting at Infrastructure Investment and Construction Co." (2014, University of Finance and Marketing)—approach the topic from a financial accounting perspective while incorporating certain aspects of management accounting. These works highlight both strengths and shortcomings in enterprise accounting practices.
Nonetheless, the proposed solutions remain largely theoretical, lacking the flexibility and practicality needed for real-world application. Overall, existing research primarily centers around financial accounting of fixed assets, while integration with management accounting and adaptation to specific enterprise types remain underexplored. 2 International studies have examined fixed asset accounting from various angles, particularly in relation to asset valuation and revaluation methodologies. For example, the study by Jennings, R.
(2011), titled "Accounting for Property, Plant and Equipment: A Cross-country Analysis," provides a comparative overview of accounting principles applied to fixed assets across multiple countries. The research highlights the differences between accounting systems under IFRS and GAAP and addresses challenges in fair value determination and depreciation accounting. Similarly, the study by Smith, L. (2016), "Revaluation and Impairment: Fixed Asset Accounting Practices in the Context of IFRS," analyzes the procedures of asset revaluation and impairment in IFRS-adopting enterprises.
This work underscores the differences between portfolio-wide revaluations and asset-specific revaluations, using data from modern ERP systems to identify key accounting issues related to the accuracy and consistency of fixed asset reporting. In general, international research has shed light on core accounting challenges associated with fixed assets, especially as enterprises increasingly adopt information technology and adhere to international accounting standards. Given the crucial role of fixed assets in commercial and service enterprises, fixed asset accounting provides vital data on asset conditions, fluctuations, depreciation, and residual values. Therefore, I have chosen to focus my research on the topic: "Improving Fixed Asset Accounting at Me Linh Water Supply Joint Stock Company.
Research objectives The objective of this thesis is to analyze and evaluate the current state of fixed asset accounting at Me Linh Water Supply Joint Stock Company, thereby proposing appropriate solutions to improve the fixed asset accounting system. Specifically, the thesis aims to: - Systematize the theoretical framework related to fixed asset accounting in enterprises; 3 - Analyze the current practices in recognition, classification, depreciation, and disposal of fixed assets at the company; - Identify existing limitations and issues in the current fixed asset accounting practices; - Propose practical solutions and recommendations to enhance the efficiency and accuracy of fixed asset accounting at the enterprise. Research subject and scope a,. Subject of research This thesis focuses on the accounting of fixed assets at Me Linh Water Supply Joint Stock Company.
Scope of research - Content scope: The study concentrates on key aspects of fixed asset accounting, including recognition, classification, depreciation, transfer, disposal, and presentation in financial reports.
