BỘ TÀI CHÍNH HỌC VIỆN TÀI CHÍNH -------------------- GRADUATION THESIS ACCOUNTING FOR SERVICE PROVISION AND DETERMINING BUSINESS RESULTS AT VINASINCO JOINT STOCK COMPANY – HANOI Major : Business Accounting Supervisor: PhD. Thai Ba Cong MSc. Nguyen Ba Linh HÀ NỘI – 2022 Graduation Thesis Academy of Finance ACKNOWLEDGEMENTS Without assistance, it would be impossible to complete a study. As a result, I'd want to convey my appreciation for the encouragement and motivation I received while doing this study as part of the requirements for my accounting degree.
To begin, I want to express my gratitude to my supervisors, PhD. Thai Ba Cong and MSc. Nguyen Ba Linh, for their assistance and support. They have been a consistent source of support and wisdom throughout the duration of my thesis.
Without their motivation and guidance, the thesis would have been impossible to complete satisfactorily. With the assistance of all of the company's accountants and divisions, I completed my thesis as part of the project: Accounting for service provision and determining business results at Vietnam Urban Services and Investment Joint Stock Company. I'd want to convey my gratitude to Mrs. Truong Thi Thanh Thuy, Chief Accountant of the Vietnam Urban Services and Investment Joint Stock Company, for her invaluable advice and assistance throughout my internship.
My heartfelt appreciation goes out to my parents for their unwavering encouragement and support during my studies. 1 Graduation Thesis Academy of Finance STATUTORY DECLARATION I now formally certify that this submitted Bachelor Thesis was authored entirely by me and also with the help of PhD. Thái Bá Công and MSc. I also certify that I did not rely on any other external sources, except for the literature cited and sources listed at the conclusion of this work.
All of the literature and additional sources that was used to produce this academic paper, both verbatim and in substance, were noted and separately listed. Hanoi, Dec 7th, 2021 Student 2 Graduation Thesis Academy of Finance LIST OF ABBREVIATIONS Abbreviation Full phrase Acc Account Vietnam Urban Services and VINASINCO Investment CIT Corporate income tax COGS Cost of goods sold JSC Joint Stock Company No. Number VAT Value added tax VND Vietnam Dong 3 Graduation Thesis Academy of Finance TABLE OF CONTENTS ACKNOWLEDGEMENTS. 2 LIST OF ABBREVIATIONS.3 TABLE OF CONTENTS.
The urgency of the topic. Objective of the study. Object and Scope of the study. Methods of the study.
Organization of the study.11 CHAPTER 1: BASIC THEORY OF SERVICE PROVISION ACCOUNTING AND DETERMINATION OF BUSINESS RESULTS IN ENTERPRISES. THE NECESSITY OF ACCOUNTING FOR SERVICE PROVISION AND THE DETERMINATION OF BUSINESS RESULTS IN ENTERPRISES 12 1. General overview of service provision and determination of business results 12 1. Characteristics of service provision accounting and determining business results.
The role of service provision accounting and determining business results 14 4 Graduation Thesis Academy of Finance 1. ACCOUNTING FOR BUSINESS EXPENSES IN SERVICE PROVISION BUSINESS. Accounting for revenue from services provision and revenue deductions. Accounting for Cost of Goods Sold.
Accounting for selling expenses and administration expenses. Accounting for financial incomes and financial expenses. Accounting for other incomes and other expenses. Accounting for corporate income tax expense.
Accounting for financial activities income. Accounting for other income. Accounting for determining business results. ORGANIZATION OF ACCOUNTING BOOKS SYSTEM.
General Journal method. Journal – Ledger method. Journal – Vouchers method. Book-keeping Documents method.
Computerized Accounting Method.52 CHAPTER 2: CURRENT SITUATION OF ACCOUNTING FOR SERVICE PROVISION AND DETERMINATION OF BUSINESS RESULTS AT 5 Graduation Thesis Academy of Finance VIETNAM URBAN SERVICES AND INVESTMENT JOINT STOCK COMPANY. GENERAL OVERVIEW OF VIETNAM URBAN SERVICES AND INVESTMENT JOINT STOCK COMPANY (VINASINCO). Company information and development. Characteristics of production and business organization.
Organizational management characteristics at the company. Organizational characteristics of accounting work in the company. SERVICE PROVISION EXPENSES ACCOUNTING REALITY AND DETERMINING BUSINESS RESULTS AT VINASINCO JSC. Accounting for cost of goods sold.
Accounting for selling expenses and administration expenses. Accounting for financial expenses. Accounting for other expenses. Accounting for corporate income tax expenses.
SERVICE PROVISION REVENUE ACCOUNTING REALITY AT VINASINCO JSC. Accounting for service provision revenue. Accounting for revenue deductions. Accounting for other incomes.
Accounting for determining business results.87 6 Graduation Thesis Academy of Finance 2. Evaluate the current status of Service Provision Accounting and determine business results at VINASINCO JSC.95 CHAPTER 3: SUGGESTIONS TO IMPROVE ACCOUNTING FOR SERVICE PROVISION AND DETERMINE BUSINESS RESULTS AT VIETNAM URBAN SERVICES AND INVESTMENT JOINT STOCK COMPANY. REQUIREMENTS, PRINCIPLES OF COMPLETING ACCOUNTING FOR SERVICE PROVISION AND DETERMINING BUSINESS RESULTS AT VINASINCO JSC. SUGGESTIONS FOR IMPROVEMENTS OF ACCOUNTING FOR SERVICE PROVISION AND DETERMINING BUSINESS RESULTS AT VINASINCO JSC.
Accounting procedure for some key transactions:. 107 7 Graduation Thesis Academy of Finance INTERSHIP SUPERVISORS’ COMMENTS.111 8 Graduation Thesis Academy of Finance INTRODUCTION 1. The urgency of the topic The production of material wealth is considered to be one of the most important conditions for the existence and development of the human society. Along with the society, the production and business activities of enterprises have been expanding and developing persistently.
Nowadays, with the condition that the economy has macro-management from the State, businesses are having a favorable production environment: businesses are allowed to freely develop and compete against each other with complete equality before the law; the domestic market is also allowed to open, but it also faces a lot of difficulties from the impact of the competition rules from the new mechanism. This is also a great opportunity for Vietnamese businesses to recognize their real capabilities, crafting new business strategies, and solving problems relating business and production activities, in order to adapt and overcome the rigorous selection and elimination process of the market. In the process of producing activities for business, especially with a commercial enterprise, sales are one of the most basic operations that governs other operations. The business cycle can take place in a smooth and continuous way when the enterprise surpasses the consumption stage with great results, which may be the basis of creating profits for the business, where it being the core goal of the business in the market economy.
To accomplish this, businesses need s to choose out among products, selecting the most profitable products to trade, with the guarantee of being profitable and covers costs spent, hence correctly determine the right business results, which helps in orienting the business, as well as creating momentum for the enterprise’s development. 9 Graduation Thesis Academy of Finance Recognizing the importance of sales accounting and determine business results, applying the theory that has been studied at school, and combining it with the reality from the accounting organization Vietnam Urban Services and Investment Joint Stock Company, with the will to learn more about sales accounting and determine business results, I chose the topic “Accounting for service provision and determining business results at Vietnam Urban Services and Investment Joint Stock Company. Objective of the study The research purpose, is to discover the current status of sales accounting and determine business results of Vietnam Urban Services and Investment Joint Stock Company, therefore giving general observations on the achievements and shortcomings in sales accounting and determining business results, from which 3. Object and Scope of the study Object: Accounting for service provision and determination of business results at Vietnam Urban Services and Investment Joint Stock Company.
The scope of research content will focus on accounting for service provision and evaluating results of the revenue, selling expenses, revenue deductions, and administration expenses, some other related expenses and incomes, accounts used to do accounting and accounting entries in Vietnam Urban Services and Investment Joint Stock Company within 2021 4. Methods of the study This thesis uses the method of analyzing as the most appropriate method for the practices of accounting for sales and defining business result at the company, as well as analyzing the impact it has on the company’s development. Other 10 Graduation Thesis Academy of Finance methods, such as comparison between theory and reality, is also being used to give a proposed solution to refine sales accounting and determine business results at Vietnam Urban Services and Investment Joint Stock Company from 2020 to 2021. Organization of the study The main content, apart from the introduction, conclusion and references, is divided into three chapters as follows: Chapter 1: The basic theory of accounting for service provision and determination of business results in enterprises.
Chapter 2: Current situation of accounting for service provision and determination of business results at Vietnam Urban Services and Investment Joint Stock Company. Chapter 3: Solutions to improve accounting for service provision and determination of business results at Vietnam Urban Services and Investment Joint Stock Company. 11 Graduation Thesis Academy of Finance CHAPTER 1: BASIC THEORY OF SERVICE PROVISION ACCOUNTING AND DETERMINATION OF BUSINESS RESULTS IN ENTERPRISES 1. THE NECESSITY OF ACCOUNTING FOR SERVICE PROVISION AND THE DETERMINATION OF BUSINESS RESULTS IN ENTERPRISES 1.
General overview of service provision and determination of business results Service provision definition: Service, unlike products, are those that provide an activity or the performance of a task with a commercial purpose. In a broad sense, service is the concept that refers to all activities, in which their results do not exist in a physical form. Service activities cover all fields with a high experience level, greatly influencing the development process of socio- economic and environment of each country, region in particular and the whole wide world in general. Not only service includes traditional industries such as transportation, banking, commerce, insurance, post and telecommunications, but it also spreads to new fields such as office services, administrative, and consulting services.
In a narrower sense, service is to do a job for another individual or community, is something that effectively meets a certain human need, such as transportation, repair and maintenance of equipment, machinery, or construction. 12 Graduation Thesis Academy of Finance Business results are the results of an enterprise’s production and business activities in a certain accounting period; in other words, business results are expressed in cash in the difference between total revenue and total expenses of all economic activities performed. If the income is greater than the expenses, the business result is a profit; if the income is less than the expenses, the business result is a loss. Depending on the business characteristics and management requirements of the business, the determination of business results is conducted at the end of the business period such as at the end of the month, quarter or year.
The business results from an enterprise contains the results of its ordinary business operations, plus other activities. Moreover, their business activity results are normally the outcome of an enterprise’s revenue-gathering activities, specifically from selling, providing services and financing activities. Characteristics of service provision accounting and determining business results The specific characteristics of the service business have a strong influence on the cost, revenue and service business results, specifically: - The results from pure service provisioning activities usually have no specific physical form, which is instead being represented by benefits for customers, therefore satisfying customer’s needs, such as the need of information, mobility, and knowledge, etc. This characteristic, however, leads to a fact that the production, consumption and management process of business services are often difficult to separate.
- Service business activities have a variety of methods to implement. For instance, the tourism industry offers multiple ways to travel such as domestic or international tours, or package or partial tours, etc.; for another instance, 13 Graduation Thesis Academy of Finance the transportation industry also have different ways to travel such as: road transport, air transport, or railway, … With the diversity of methods of service implementation being mentioned, this leads us to the diversity of management objects as well as the complexity in organizing the accounting work in general, specifically the organization of cost, revenue and result accounting, such as: Determining objects for cost accumulation, revenue recognition and calculate possible results according to each type, method, and form of service provision business.