Company policy plan...7 2.2 Organization of accounting information system at the Company...8 2.2.1 Organization of accounting voucher system...8 2.2.2 Organization of the account system.
GENERAL INFORMATION ABOUT LMS VINA CO., LTD
Company formation and development
Company name: LMS VINA COMPANY LIMITED
International name: LMS VINA COMPANY LIMITED
Field of activity: Processing – metal shaping
Scale: the number of about 300 employees
Address: Plot XN3-1E1, XN3-1G, XN3-1F Dai An Industrial Park Extension, Lai Cach Town, Cam Giang District, Hai Duong Province, Vietnam
Managed by: Hai Duong Provincial Tax Department
Type of enterprise: Non-state limited liability company.
Light Metal Solution (LMS), established on July 17, 1975 in Yesan, Chungchungnam-do, Korea, is a leading aluminum extrusion and manufacturing company specializing in high-strength 7xxx aluminum With an integrated in-house production line that covers alloy casting, extrusion, and post-processing such as machining, pressing, and surface treatment, LMS ensures high-quality aluminum components The company has supplied proven materials and parts to prominent clients in the automotive, ICT, and defense industries Currently, LMS operates through three companies in Korea and one in Vietnam, solidifying its presence in the global aluminum manufacturing market.
LMS VINA Co., Ltd is a 100% foreign-invested limited liability company established in Vietnam under the Investment Registration Certificate No.
65335412253 dated October 11, 2017 issued by the Management Board of Industrial Parks Hai Duong Province Enterprise and Business Registration Certificate No.
0801224675 dated October 16, 2017 issued by Hai Duong Department of Planning and Investment.
On March 27, 2020, the Company received the 5th amended Investment Registration Certificate No 6535412253 to change the content of the legal representative, scale and investment capital of the project.
On January 22, 2021, the Company received the 7th revised Business Registration to change information about the legal representative.
The Company's Investment Registration Certificate is valid until January 1, 2056.
The Company's approved investment capital and charter capital are VND 1,799,815,231,564 (equivalent to USD 79,185,843.89) and VND 500,041,000,000 (equivalent to USD 22,000,000) and 500,041,000,000 respectively. VND (equivalent to 22,000,000 USD).
As at 31 December 2021, the Company has 665 employees The key leaders are: Lee Sung Woo (General Director), Choi Seung Young (Director),Mun Cheol Ju (Director), Nguyen Thi En (Chief Accountant).
Characteristics of business activities of the enterprise
+ LMS VINA CO., LTD specializes in manufacturing precious metals and non- ferrous metals
- Business lines of the Company:
LMS VINA Co., Ltd deals in industries such as:
+ Producing non-ferrous and precious metals
Details: Non-ferrous metal production
+ Forging, stamping, pressing and rolling metal; metal powder smelting
+ Mechanical processing; metal treatment and coating
Details: Metal cutting (CNC), plating and polishing metal
(anodizing), steel processing, stainless steel processing, aluminum processing
1.3 Organizational and management characteristics of LMS VINA Co., Ltd
Features of decentralization of business operations management :
Model of organization and management of business activities of LMS VINA Co., Ltd Is divided into departments.
Figure Organizational structure of LMS VINA Co., Ltd
Source: (Administrative and Human Resources Department)
The General Director manages the company's daily operations under the supervision of the Board of Directors They are responsible for the performance of assigned rights and obligations, both to the Board and in accordance with legal requirements.
Being the representation of the Company is legally responsible for all transactions with economic organizations and regulatory agencies of the State of Vietnam Directly managing the daily business of the company, deciding on issues such as signing labor contracts, wages and benefits for employees, etc Making, deploying and executing strategies and plans to fully awake and increase the profits of the business Directing the departments in the company to implement the proposed plans; Analyzing and monitoring employee's progress towards ensuring goals are accomplished.
Effective human resource management involves developing comprehensive policies and regulations to guide organizational practices This includes planning, implementing, monitoring, and reporting on key HR functions such as recruitment, training, and human resource development to ensure aligned and efficient operations In addition, managing the procurement and distribution of stationery is essential for maintaining smooth daily workflows Organizing reception, ceremonies, meetings, and related tasks further supports the organization’s overall effectiveness and professional image.
(eating, drinking, cleaning ) Summarize and update legal policies related to the Company's business activities.
The provisioning department is responsible for analyzing purchasing needs and evaluating supplier capacity to ensure alignment with business requirements It conducts market analysis to assess whether current suppliers can meet price and capacity expectations Managing and maintaining relationships with a list of regular suppliers is crucial, especially for large companies In manufacturing businesses, the department ensures an adequate supply of raw materials and resources for production while controlling inventory levels Additionally, it continuously monitors supplier quality, performance, and reliability to prevent unsatisfactory procurement The department also manages all documentation and procedures related to the procurement and delivery of goods and products.
The import-export department is responsible for conducting market research and identifying new international markets to support company growth It plans and manages delivery schedules to meet production and customer demands efficiently The department ensures timely customs declarations and oversees the receipt and dispatch of goods in compliance with regulations Additionally, it prepares and submits necessary customs reports, maintaining adherence to customs laws Continuous improvement is encouraged through proposing innovative ideas to supervisors to enhance the department's overall efficiency and work quality.
The production department plans and allocates materials and machinery based on projected output targets to ensure efficient manufacturing They schedule production activities and implement cost reduction strategies once sufficient inputs are available Additionally, they are responsible for maintaining quality standards, regularly inspecting products to prevent defects and ensure consistent quality throughout the manufacturing process.
The production department is responsible for conducting thorough testing of new product samples prior to mass production to ensure quality and accuracy Additionally, it gathers comprehensive information about manufactured products and shares this data with the research and development team, enabling continuous improvement of the company's existing product offerings.
The Product Management Department analyzes customer needs and ensures product-market fit to guide development They develop product roadmaps and specify requirements based on data insights Additionally, they oversee testing new features, manage product launches, and analyze outcomes to inform future improvements.
The Maintenance Department manages investment and capital construction projects by participating in design, estimating costs, and overseeing the implementation of construction investments It plans and executes maintenance activities in alignment with established schedules, estimating required materials for repairs and replacements monthly and annually The department quickly repairs any unexpected equipment damages to ensure continuous production, while diligently tracking machinery, equipment, and tools, and managing maintenance supply usage standards Additionally, it regularly reports production stoppages and efficiency metrics to the Board of Directors to support informed decision-making.
R&D engineers must analyze customer demographics, spending trends, and preferences specific to their industry They collect and interpret this data to generate actionable insights By analyzing customer data, the R&D department provides accurate, data-driven figures to other departments and consumers, ensuring products meet market demands This process is essential for innovation, marketing strategies, and enhancing customer satisfaction.
The sales department handles the receipt of goods from suppliers, ensuring accurate inventory management by verifying quantities, packaging conditions, and expiration dates They meticulously record all deliveries and receipts, documenting the quantity and condition of products to maintain accurate records Any issues or damages encountered with the goods must be reported immediately to supervisors for prompt resolution.
The sales department also needs to find suitable methods for storing products in stock. For example, storing food in the refrigerator at the right temperature or storing fragile items,
Department of finance and accounting
The Finance - Accounting Department is responsible for collecting and verifying the legitimacy of invoices and vouchers, ensuring the timely and accurate recording of all economic transactions in compliance with accounting standards and company regulations They manage and securely store financial records, data, books, and related documents to maintain an accurate picture of the company’s financial position At the end of each period, the department prepares and submits financial reports, finalizes payments to the budget, and conducts financial analysis to evaluate key indicators These insights enable management to develop effective strategies for optimal capital utilization and maximize profits.
Overview of production and business results in 2020 – 2021 1 _Toc126930195
Based on the Company's Income Statement and Balance Sheet for the year 2020-2021, we have the following table: sau:
Table 1.1: Analysis of business results of LMS Vina Co., Ltd
Figured in : Viet Nam Dong
Difference Percentage (%) Total sales and CCDV 1,016.677,700,896 1,518,209,177,166 501,531,476,270 33.03
Gross profit/net loss from operating activities 100,440,844,556 182,373,944,508 81,933,099,952 44.93
Total accounting profit/loss before tax (6,570,033,353) (102,726,521,064) (96,156,487,711) 93.60
Profit/loss after income tax (6,570,033,353) (102,726,521,064) (96,156,487,711) 93.60
(Source: Report of business results in 2020, 2021 of LMS Vina Co., Ltd.)2
The production and business situation of LMS VINA Co., Ltd in 2020 and 2021 has many changes Specifically, the statement of business results shows that
In 2020, the company's total revenue from sales and service provision, as well as net revenue, reached VND 1,518,209,177,166, representing a significant increase of VND 501,531,476,270 or 33.03% compared to the previous year However, in 2021, the financial revenue declined to VND 2,646,069,480, which is VND 27,133,447,729 less than 2020, indicating a substantial decrease of 1,025.42%.
Other income in 2021 reached VND 1,758,425,958, down 7,480,936,707 compared to 2020, corresponding to a decrease rate of 425.43%
In 2021, the company's other revenues and incomes decreased compared to 2020, primarily due to the significant decline in liquidation of fixed assets, which was a major contributor to other income in 2020 The increase in revenue in 2020 was driven by heightened demand for machinery and equipment despite the Covid-19 pandemic, leading to rapid sales growth Conversely, the total costs in 2021 rose compared to 2020, with each expense category experiencing increases, reflecting the overall rise in operational expenses despite the decline in other income sources.
In 2020, the cost of goods sold soared to VND 1,314,417,695,544, marking a significant increase of VND 404,354,086,076 or 30.76% compared to 2019 Additionally, the company's financial expenses rose to VND 71,543,555,406, reflecting an increase of VND 12,593,830,546 or 17.60% year-over-year.
+ Business expenses in 2020 are VND 133,847,784,756, an increase of VND 97,004,406,392 compared to 2019, equivalent to an increase of 72.47%
+ Other expenses in 2020 reached 687,895,704 VND, down 481,650,713 VND compared to 2019, corresponding to a reduction rate of 70.02%
+ Corporate income tax expense in 2020 is 5,727,694 VND, an increase of2,639,209 VND, equivalent to an increase of 46.08%
In 2020, the group's expense accounts surged rapidly compared to 2019, primarily due to business interruptions caused by the COVID-19 pandemic Despite these challenges, the company continued to bear and cover essential expenses to sustain its operations during this period.
- Gross profit in 2020 reached VND 182,373,944,508, an increase of VND 81,933,099,952 compared to 2019, corresponding to an increase rate of 44.93%.
- Total pre-tax accounting profit in 2020 decreased by VND 96,156,487,711, equivalent to an increase of 93.60% compared to 2019.
- Profit after income tax of enterprises in 2020 decreased by VND 96,156,487,711 compared to 2019, equivalent to an increase of 93.60%
In 2020, the company's business performance experienced significant fluctuations but showed improvements compared to 2019 However, analysis reveals that the growth rate of current expenses outpaced revenue growth, leading to concerns about operational efficiency Additionally, the company's gross profit margin has declined year-over-year, indicating that profit margins remain relatively low These trends suggest that during the increasing epidemic, the company's operational activities, management efficiency, and capital utilization have not met expectations, impacting overall business effectiveness.
ORGANIZATION OF ACCOUNTING AND ANALYSIS WORK AT
Organizing accounting work at LMS VINA CO., LTD
An effective accounting organization involves the strategic division of work among department employees to ensure high efficiency The accounting apparatus comprises a team of accountants responsible for collecting, processing, and analyzing financial information They provide vital insights and recommendations to the board of directors regarding the company's production and business performance, supporting informed decision-making Proper organization of the accounting system enhances accuracy, productivity, and overall financial management within the company.
LMS VINA Co., Ltd has adopted a centralized accounting system, with all information processing tasks managed centrally by the Accounting Department The company's various departments are responsible for collecting, analyzing, and distributing documents to the Accounting Department for processing, ensuring efficient financial management and streamlined operations This centralized approach enhances data accuracy, improves financial control, and supports overall business growth.
The accounting department of the company consists of 1 chief accountant cum general accountant and 4 employees who perform work under the direction and assignment of the chief accountant.
Figure 2.2 Organization of the accounting apparatus at LMS VINA CO., LTD
Functions and duties of each accountant:
Chief Accountant cum General Accountant:
Responsible for advising the General Director and developing a robust financial and accounting management system in line with legal requirements and company specifics Continuously improving organizational structure and ensuring accurate financial statements Analyzes management reports to monitor fluctuations in costs, revenue, and liabilities, providing timely advice and solutions to support business activities and cost control Accountable for the company's professional accounting work under Vietnamese law, including preparing weekly management reports as requested by leadership Manages work division within the accounting department, assesses staff capabilities, and promotes ongoing training to enhance team qualifications.
As the company’s invoice and document collector, I ensure accurate tracking and accounting of all financial transactions I prepare and submit monthly VAT and PIT reports, ensuring timely tax payments to authorities Additionally, I compile comprehensive financial statements and annual tax reports, including the fourth quarter CIT and PIT finalization documents My role involves calculating, deducting, and promptly remitting taxes to the state budget, as well as preparing detailed monthly, quarterly, and yearly reports on invoice utilization.
A warehouse accountant plays a crucial role in managing export and import operations, ensuring the smooth flow of goods through the warehouse They are responsible for tracking inventory movements, maintaining accurate records, and overseeing inventory reports Their duties also include managing stock levels, coordinating shipments, and ensuring compliance with company and regulatory standards to optimize warehouse efficiency.
Accurately identifying and promptly reflecting the results of the periodic inventory, in compliance with the regime, is essential It is also important to propose effective measures to address and resolve cases of inventory discrepancies and losses.
Payment accountants are responsible for managing requests, advances, refunds, and payments, ensuring accurate record-keeping through documenting payment advances and comparing debts They review invoices, process payment slips, and collaborate closely with the treasurer to ensure proper financial operations Their duties also include overseeing collection and expenditure activities according to regulations, conducting daily stock checks, and preparing cash balance reports for management Additionally, they monitor and report any unclear revenues and expenditures to superiors to ensure financial transparency and accuracy.
The cashier plays a vital role in supervising the business's cash flow, managing financial transactions, and ensuring transparency in financial activities They are responsible for handling daily transactions such as opening bank accounts, issuing payment orders, processing check withdrawals, and depositing funds At the end of each day, the cashier reports the cash balance and reconciles revenues and expenditures with the Chief Accountant using detailed bookkeeping records.
The company follows the Vietnamese accounting system established by Circular No 200/2014/TT-BTC issued on December 22, 2014, which governs the corporate accounting regime It applies Vietnamese Accounting Standards and relevant guiding documents issued by the government The company's financial statements are prepared and presented in strict accordance with these standards, circulars, and the current accounting regulations to ensure compliance and transparency.
- Fiscal year: Starting on January 1 and ending on December 31 of each year -
Accounting period: Annual accounting period.
The company utilizes multiple currencies, including Vietnamese Dong (VND), US Dollar (USD), Euro (EUR), and Korean Won (KRW), for various transactions However, its financial statements are primarily prepared and presented in US Dollars (USD) and Vietnam Dong (VND) These statements are prepared in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System, and other legal regulations governing the preparation and presentation of financial reports.
- Accounting form: General Journal form and supported by SAP accounting software Inventory accounting method:
+ Principle of recognition of inventories: Inventories are measured at the lower of cost and net realizable value.
+ Method of calculating the inventory cost plus pricing: Weighted average method + Inventory accounting method: perpetual declaration method
- VAT calculation method: Direct method
- Methods of recognition and depreciation of fixed assets:
Fixed assets are initially recorded at their historical cost, representing the total expenses incurred by the company to acquire the asset and bring it into use During the asset’s utilization, its value is adjusted based on three criteria: historical cost, accumulated depreciation, and residual value The historical cost includes all costs paid by the company to acquire and prepare the asset for use up to the point it becomes operational.
+ Depreciation method of fixed assets: Straight-line method of depreciation, based on the estimated useful life and historical cost of the asset.
The company's accounting vouchers are prepared in accordance with official forms, ensuring correct and complete content These vouchers are signed following the regulations outlined in the Law on Accounting and Circular 133/2016/TT-BTC, issued on August 26, 2016, by the Ministry of Finance, to ensure compliance and proper financial documentation.
Key financial documents encompass those related to cash and cash equivalents, sales and service vouchers, inventory records, salary accounting vouchers and deductions, and payable tax documentation These categories are essential for accurate financial management and compliance.
Key documents related to cash and cash equivalents include receipts, payment slips, debit and credit notes, receivables, payment and collection orders, advance request letters, requests for advance payments, minutes of cash inventory, and bank statements These documents are essential for accurate financial record-keeping and ensuring transparency in cash management Proper documentation of cash transactions helps in efficient auditing, compliance with financial regulations, and maintaining up-to-date financial data for business operations.
+ Documents related to salary and deductions according to salary: Time sheet, payment slip, salary distribution table and documents related to social insurance, health insurance, unemployment insurance, contract labor contract;
+ Purchase: Sales contract, handover minutes, payment slips, VAT invoices, warehouse receipts, contract liquidation minutes
+ Sales: Handover minutes, receipts, VAT invoices, delivery notes, purchase orders, quotation sheets, minutes of liquidation of economic contracts; liquidation records.
+ Documents related to inventory: Economic contract, export - import note, allocation table of tools and equipment, inventory record,
+ Tax documents to be submitted: Tax return, tax finalization minutes, debt notice,
+ Documents related to fixed assets: Minutes of delivery and receipt of fixed assets, VAT invoices, calculation of depreciation of fixed assets, etc.
Organize the rotation of accounting documents at the company:
The process of rotating accounting vouchers of the unit that is currently in compliance with the current corporate accounting regime includes the following steps:
All economic transactions related to company and accounting activities must be accurately documented and recorded in appropriate accounting vouchers, which should be created only once per transaction These vouchers must comprehensively capture all relevant details, ensuring clarity and truthfulness about the recorded economic operations Handwriting on the vouchers should be clear, legible, and free of erasures Additionally, amounts recorded in both numbers and words must be consistent; if an error occurs necessitating voucher cancellation, the accountant must provide a written explanation for the correction.
Organization of financial statements analysis
3.1 Characteristics, content of revenue, expenses and business results of the Company.
- Sales of goods: the revenue that the company gets from the sale of aluminum profiled products for electronic components, auto parts, motorcycles
Service provision revenue is generated from executing contracts related to stainless steel processing, steel machining, CNC machining, press machining (punching), and surface treatments such as coating, plating, and anodizing for auto and motorcycle components These activities collectively contribute to the company's overall revenue by delivering specialized manufacturing and finishing services to automotive and motorcycle industries, ensuring high-quality components through advanced processing techniques.
- Internal sales revenue: is the revenue earned from internal sales to companies of the same group, the parent company of korea
Financial income primarily consists of interest earned from bank accounts and gains from exchange rate fluctuations It may also include minor or infrequent sources such as profits from divestments within the same corporate group or other miscellaneous financial income.
- Other revenue: including revenue from liquidation of fixed assets, additional sales volume.
In addition to the above revenues, there will be items directly related to revenue, which are revenue reductions such as trade discounts, sales discounts, sales returns
- Cost of direct materials: Including costs of direct materials used to perform production and services of the Company.
- Labor costs: Including wages of workers directly involved in the production process Besides that, it also includes PIT cost, insurance cost, meal cost.
- General production costs: Including costs for Korean/Vietnamese factory
ACCOUNTING FOR REVENUE, EXPENSES AND
Characteristics, content of revenue, expenses and business results of the Company
- Sales of goods: the revenue that the company gets from the sale of aluminum profiled products for electronic components, auto parts, motorcycles
Service provision revenue is generated through contracted activities such as stainless steel processing, steel processing, CNC machining, press machining (punching), and surface treatments including coating, plating, and anodizing for automobile and motorcycle components These specialized manufacturing services are key revenue streams for companies operating in the automotive and motorcycle component industries Optimizing these processes enhances product quality and manufacturing efficiency, contributing to increased revenue and customer satisfaction.
- Internal sales revenue: is the revenue earned from internal sales to companies of the same group, the parent company of korea
Financial income primarily consists of interest earned from bank accounts and gains from exchange rate differences Additionally, it may include smaller, less frequent sources such as profits from divestments within group companies or other minor financial earnings.
- Other revenue: including revenue from liquidation of fixed assets, additional sales volume.
In addition to the above revenues, there will be items directly related to revenue, which are revenue reductions such as trade discounts, sales discounts, sales returns
- Cost of direct materials: Including costs of direct materials used to perform production and services of the Company.
- Labor costs: Including wages of workers directly involved in the production process Besides that, it also includes PIT cost, insurance cost, meal cost.
General production costs encompass wages for Korean and Vietnamese factory staff, personal income tax (PIT), bonus payments, and insurance expenses Additionally, costs related to specialized machinery, computers, desks, depreciation, and rental services are included Operational expenses such as electricity, water, office rent, and essential supplies are also part of the production expenditure, ensuring smooth manufacturing processes.
- Selling expenses: Costs related to the process of selling goods such as sales staff salaries, salary deductions for sales department staff, marketing expenses, advertising expenses, stationery costs, packaging costs…
Business administration expenses encompass various essential costs, including salaries and salary deductions for executives and management, stationery supplies, and fixed asset depreciation Additionally, these expenses cover office rental, utility bills such as electricity and water, fuel costs, transportation for business trips, and meeting-related expenses Managing these costs effectively is crucial for maintaining operational efficiency and ensuring smooth organizational functioning.
- Other costs: Including expenses for liquidation and sale of fixed assets, fines payable for breach of economic contracts, administrative fines and residual value of demolished fixed assets, etc.
The Company's business results are temporarily calculated on a monthly basis, which includes sales results, financial results and other operating results.
Methods of determining business results: Business results are the profit or loss resulting from the Company's business, financial and other activities during an accounting period.
Business results Results of production and business activities
Results of production and business activities Gross profit sales and service provision
Gross profit on sales and service provision
= Net revenue on sales and service
Net revenue on sales and service provision Revenue from sales of goods and provision of services
Special consumption tax, export tax
Financial results = Financial income – Financial expenses
Other activity results = Other income – Other costs
Accounting profit after tax = Accounting profit before tax – Payable CIT expenses
Accounting for business results at LMS Vina Co., Ltd
3.2.1 Current status of business results accounting
The Company adopts the Vietnamese corporate accounting system in accordance with Circular 200/2014/TT-BTC issued by the Ministry of Finance on December 22, 2014 Based on its specific business activities, the Company utilizes various types of accounting documents to ensure compliance and accurate financial reporting.
- Accounting slips serving the transfer of revenue, income and expenses; business results spreadsheet
System of accounting accounts: Enterprises use the system of accounting accounts issued together with TT200/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance (Appendix 01)
Daily, accountants record all economic transactions in the general journal and subsequently update these entries in the general ledger and detailed account books, including accounts 511, 515, 632, 635, 641, 642, 711, 811, and 911 This systematic process ensures accurate financial data management and reflects the company's financial activities At the end of each accounting period, ledger data from these accounts are analyzed to finalize business results and prepare financial statements Effective bookkeeping and regular account updates are essential for accurate financial reporting and compliance with accounting standards.
At the end of the period, revenue and expenses shall be transferred to Account
Accountants make accounting slips for the transfer of revenue deductions:
On December 31, 2021, based on the arising balance sheet (Appendix 11), the closing entries are also automatically calculated on the accounting software.
Net revenue is directly transferred to Account 911, as the company does not deduct any expenses from sales, meaning the reported revenue from goods sold and services provided represents the net revenue The relevant accounting entries are recorded accordingly to accurately reflect this revenue recognition.
The accountant makes an accounting slip to transfer sales and service provision, and the following accounts shall be recorded:
The accountant makes an accounting slip to conclude the cost transfer, and the following accounts shall be recorded:
The accountant makes an accounting slip to transfer revenue from financial activities, and the following accounts shall be recorded:
The accountant makes an accounting slip to transfer financial expenses, the following accounts shall be recorded:
The accountant makes an accounting slip to transfer selling expenses, the following accounts shall be recorded:
The accountant makes an accounting slip to transfer the enterprise's administrative expenses, the following accounts shall be recorded:
The accountant makes an accounting slip to transfer other income, the following accounts shall be recorded:
The accountant makes an accounting slip to transfer other expenses, the following accounts shall be recorded:
In Q1 2021, the company incurred a pre-tax loss of VND 102,726,521,064 The current and deferred corporate income tax (CIT) liabilities are both zero, as the company is exempt from CIT for two years and benefits from a 50% reduction in CIT for the following four years, according to current tax regulations The company has been receiving CIT incentives since 2020, and 2021 marks the second year of exempted CIT Consequently, the company’s after-tax loss for this period also amounts to VND 102,726,521,064.
In the after-tax loss statement, the following accounts shall be recorded:
3.2.1.3 Presentation of business results in financial statements
The results of the Company's business activities are presented in detail in the report on business results for the first quarter of 2021 (Appendix 08).
In the first quarter of 2021, the company's revenue from the sale of goods and provision of services, recorded under Entry 01, totaled 1,518,209,171,66 VND, based on credit side data in ledger account 511.
(2) Sales deductions (Entry 02): This entry reflects the total deductions from total revenue in the period, specifically in the first quarter of 2021, which is VND 21,417,537,114.
(3) Net revenue from selling goods and providing services (Entry 10): This entry reflects revenue from sales of goods, finished products and provision of services minus deductions.
(4) Cost of goods sold (Entry 11): In the first quarter of 2021, the total value incurred on the Debit side of Account 632 recorded in the report is VND 1,314,417,695,544.
Gross profit from selling goods and providing services (Entry 20) represents the difference between net revenue generated from sales and service provisions and the cost of goods sold during the reporting period, highlighting the company's profitability from core operations.
In the first quarter of 2021, revenue from financial activities (Entry 21) amounted to 2,646,069,480 VND, reflecting the net financial income generated during this period This figure is recorded on the debit side of Account 635 and highlights the company's financial performance in terms of income from financial operations.
(7) Financial expenses (Entry 22): The entry is recorded in the report based on the data arising on the Debit side of Account 635, specifically in the first quarter of
Interest expense (Entry 23): This entry reflects the payable interest expense which is included in financial expenses in the reporting period.
Selling expenses (Entry 25) are calculated based on the total amount incurred on the debit side minus the amount on the credit side of the general ledger for Account 641 In the first quarter of 2021, these expenses amounted to VND 133,847,784,756.
(9) Business administration expenses (Entry 26): Based on the amount incurred on the Debit side minus (–) the number incurred on the Credit side of Account 642, the first quarter of 2021 is VND 83,425,725,144.
(10) Net profit from business activities (Entry 30): This entry reflects the business results of the enterprise in the reporting period.
Entry 30 = Entry 20 + Entry 21 – Entry 22 – Entry 25 – Entry 26
(11) Other income (Entry 31): Reflecting other income arising in the reporting period, the data is the amount arising on the Credit side of Account 711, the first quarter of 2021 is VND 1,758,425,958.
(12) Other expenses (Entry 32): This entry reflects the total other expenses incurred in the reporting period Specifically, in the first quarter of 2021, it is 687,895,704 VND.
(13) Other profit (Entry 40): This entry reflects the difference between other income and other expenses incurred in the reporting period.
Total accounting loss (profit) before tax (Entry 50) represents the company's overall accounting performance during the reporting period, indicating whether the enterprise experienced a profit or loss prior to deducting corporate income tax (CIT) expenses related to its business activities and other operations.
(15) Current CIT expense (Entry 51): This entry reflects the CIT expense incurred in the reporting period, the first quarter of 2021 is 0 VND.
(16) Deferred CIT income (Entry 52): This entry reflects CIT incurred in the reporting period, in the first quarter of 2021, which is 0 VND.
Profit and loss after corporate income tax (Entry 60) represents the total net profit or loss from the enterprise’s business activities during the reporting period, calculated after deducting corporate income tax expenses This figure provides a clear view of the company's financial performance post-tax.
Entry 60 = Entry 5 – Entry 51 – Entry 52 = (102.726.521.064) VND
3.2.2 Evaluation of the current accounting status of revenue, expenses and business results at LMS VINA Company
LMS VINA Co., Ltd has navigated through both challenging and prosperous periods, yet it has consistently achieved significant milestones in trading and consumer goods The company's revenue has steadily increased, reflecting successful market expansion and effective strategies to tap into potential markets Building strong relationships with familiar customers has fostered loyalty, ensuring a reliable supply of goods and a stable consumption market These achievements owe much to the dedicated efforts of all company members, particularly the vital contributions of the accounting department in driving the company's successful business outcomes.
The company's accounting apparatus is well-structured with a logical model and clear division of labor aligned with the volume and key activities of the business, enhancing transparency and ease of inspection All accounting personnel are professionally trained and qualified, ensuring they perform their duties efficiently and accurately Additionally, staff regularly engage in self-training to stay updated on new accounting standards and regulations, thereby maintaining a high level of expertise and compliance.
The Company's centralized accounting system is tailored to its specific operational needs, ensuring comprehensive oversight of all economic transactions This structure enables precise monitoring of consumption and financial results, supporting managers in making informed decisions By providing accurate and real-time financial data, the accounting apparatus facilitates effective planning and strategic adjustments aligned with market conditions.
The company utilizes the general journal accounting form, which effectively supports its accounting organization This method combines chronological and systematic recording, enabling comprehensive general and detailed accounting As a result, it facilitates efficient data review, comparison, and timely report generation, enhancing overall financial management.
The company's accounting voucher system is meticulously organized to ensure secure and efficient access and retrieval of information, adhering to a strict scientific assurance regime Monthly and quarterly, original documents are systematically grouped and categorized, maintaining a clear and organized record management process The document circulation process complies fully with regulations on accuracy, validity, completeness, and integrity, ensuring transparency and reliability in financial documentation Additionally, the company follows the account system outlined in Cir133/2016/TT-BTC, issued by the Ministry of Finance on August 26, 2016, ensuring compliance with national accounting standards and promoting accurate financial reporting.
THESIS TOPIC PROPOSAL
Based on the analysis of the current enterprise landscape, there is a clear need for innovation and enhancement of economic management tools This highlights the importance of developing students' research capabilities and practical skills to meet industry demands Specifically, focusing on topics related to Dinh Tran Phuong Uyen can provide valuable insights into leadership, strategic management, and financial innovation, supporting the advancement of future professionals in the field.
- Direction of the first topic: "Accounting for sales at LMS VINA CO., LTD" (under the Financial Accounting module)
In the rapidly growing economy and through globalization, especially with Vietnam's accession to WTO, businesses must strategically expand their market share and maximize profits Effective sales activities are crucial for trading companies, as they directly impact revenue and growth However, managing a diverse product portfolio—including refrigerators, air conditioners, ceiling fans, stainless steel tanks, blenders, and other electrical tools—poses challenges in accurately tracking revenue and costs for each product This often leads to errors in sales data and warehouse inventory, highlighting the need for a systematic approach To address these issues and support the accounting department in improving accuracy, this article proposes a focused solution.
- Direction of the second topic: "Accounting for Business Performance at LMS VINA CO., LTD" (under the Financial Accounting module)
Effective enterprise operation is essential for market competitiveness, enabling businesses to withstand domestic and international competition, expand production, and improve employees' living standards Managers must understand market dynamics, gather timely information, and adapt management structures and business models to enhance efficiency Analyzing and evaluating all operational and business processes through accounting data allows enterprises to uncover hidden potential, identify root causes of problems, and implement targeted solutions to improve overall performance.
Aware of such importance, I have chosen the topic "Business performance at LMS VINA CO., LTD ". b Tran Minh Quan
- Direction of the thirst topic: "Accounting for purchases at LMS VINA CO., LTD" (under the Financial Accounting module)
The sale of goods is a fundamental activity in commercial business, with contracts serving as the primary mechanism for executing these transactions The contract reflects the mutual agreement between parties involved in the sale and purchase process, ensuring clarity and commitment Its performance is upheld by factors such as adherence to agreed terms and alignment with societal and legal interests As a governing framework, the law establishes key principles that regulate sales contracts, safeguarding fair practices and promoting lawful commerce.
The topic "Accounting for Cost for Production and Business at LMS VINA CO., LTD" emphasizes the critical role of production costs in determining overall business profitability Lower production costs directly enhance profit margins, strengthening the company's financial stability and enabling expansion and increased market competitiveness Conversely, high costs coupled with low revenue can lead to insufficient profit, financial decline, and potential losses or bankruptcy Amid intense market competition, companies are actively seeking strategies to reduce costs by improving production efficiency, enhancing employee skills, selecting stable and cost-effective suppliers, and optimizing raw material preservation to stay competitive and sustain growth.
Understanding and analyzing production and business costs at LMS VINA CO., LTD is crucial, especially in the current competitive market environment This importance led to the decision to focus on the topic "Cost for Production and Business at LMS VINA CO., LTD" for a comprehensive and in-depth study.
- Direction of the fifth topic: "Fixed asset accounting at LMS VINA CO., LTD" (under the Financial Accounting module)
Fixed assets are valuable, long-term resources essential to a business’s operations, with depreciation gradually transferred to expenses or production costs over time Proper fixed asset accounting provides comprehensive insights into a company's assets, enabling managers to analyze and make informed economic decisions This information is vital for controlling initial capital, optimizing production and business activities, and setting strategic directions to enhance operational efficiency Ultimately, effective management of fixed assets helps strengthen the company's market position and long-term profitability.
LMS VINA LTD operates in the manufacturing sector, equipped with a comprehensive system of machinery and equipment to support production processes The company's fixed assets are extensive and diverse, reflecting its extensive operational capacity However, limited research has been conducted on fixed asset accounting within the company in recent years, resulting in inadequate information about asset status, fluctuations, management practices, utilization, and depreciation Recognizing the importance of accurate fixed asset management for operational efficiency, I have chosen "Fixed Asset Accounting at LMS VINA CO., LTD" as my graduation thesis topic to address these issues.
- Direction of the sixth topic: "Accounting for Inventory at LMS VINA CO., LTD" (under the Financial Accounting module)
LMS faces challenges in classifying and valuing its numerous inventory items, making effective inventory monitoring crucial for identifying accounting errors and management weaknesses Improving inventory accounting enhances the ability to provide essential information for production and business operations, serving as a vital management tool Although LMS's current accounting system captures basic data, it falls short of meeting managers’ needs for complete, timely, and accurate information necessary for maintaining continuous operations, optimizing material usage, reducing costs, and building appropriate inventory levels to enhance working capital efficiency.
Aware of such importance, I have chosen the topic " Inventory at LMS VINACO., LTD ".
Accounting is essential for effective economic management, providing critical data that supports both macro and micro decision-making, and is integral to business operations In the face of globalization, businesses must innovate and improve continually to sustain growth, with perfecting accounting practices, particularly sales accounting, playing a key role in aligning with operational characteristics, market demands, and international standards Enhancing accounting systems helps enterprises adapt to evolving market environments and meet global compliance requirements, ensuring competitiveness and sustainable development.
LMS VINA CO., LTD has established a scientifically structured and rational accounting organization tailored to its business operations However, there are identified limitations in the company's sales accounting processes that require improvement To enhance the accuracy and efficiency of financial management, we have proposed several strategic suggestions aimed at optimizing the company's sales accounting practices.
We sincerely thank the accounting department for their dedicated and insightful guidance, which greatly facilitated the completion of this comprehensive summary report.
1 Vietnam accounting standards system – financial publishing.
2 Circular 133/2016/TT-BTC on 26/08/2016 of the Financial.
3 Financial accounting textbook – Thuong Mai University
6 Accounting documents of LMS VINA Co., Ltd in 2020 and 2021
APPENDIX Appendix 1: Extraction of detailed accounts applied at the company
112111 Tiền gửi-Shinhan(Vĩnh Phúc)-504317 (CIB VND)
112112 Tiền gửi-Nonghyup(Hà Nội)-001604 (CIB VND)
112113 TMCP Quân Đội(Hai Bà Trưng)-5008 (CIB VND)
112114 TMCP ngoại thương(Hải Dương)-83499 (CIB VND)
1218 Chứng khoán và công cụ tài chính khác
128 Đầu tư nắm giữ đến ngày đáo hạn
1281 Tiền gửi có kỳ hạn
1288 Các khoản đầu tư khác nắm giữ đến ngày đáo hạn
131 Phải thu của khách hàng
1311 Phải thu phí BHTG của tổ chức tham gia BHTG: Phản ánh số phí BHTG phải thu của các tổ chức tham gia BHTG;
Phản ánh số tiền phạt phải thu của tổ chức tham gia BHTG do vi phạm về xác định mức phí BHTG và thời hạn nộp phí Đây là khoản tiền phạt liên quan đến vi phạm quy định trong việc xác định và kê khai phí BHTG, đảm bảo tính chính xác và minh bạch trong quản lý tài chính của tổ chức Việc thu hồi khoản phạt này giúp củng cố chế độ thanh tra, kiểm tra và nâng cao ý thức chấp hành các quy định về BHTG của các tổ chức tham gia Đảm bảo thu đúng, thu đủ tiền phạt góp phần tăng cường nguồn thu ngân sách và duy trì sự ổn định của hệ thống BHTG.
133 Thuế GTGT được khấu trừ
1331 Thuế GTGT được khấu trừ của hàng hóa, dịch vụ
1332 Thuế GTGT được khấu trừ của TSCĐ
1361 Vốn kinh doanh ở các đơn vị trực thuộc (Investment in equity of subsidiaries)
1362 Phải thu nội bộ về chênh lệch tỷ giá (IR on rate differences)
1363 Phải thu nội bộ về chi phí đi vay đủ điều kiện được vốn hoá (IR capitalization costs)
1368 Phải thu nội bộ khác (Other Internal receivable)
1381 Tài sản thiếu chờ xử lý
1385 Phải thu về cổ phần hóa
151 Hàng mua đang đi đang đi đường
1522 Nguyên vật liệu, vật liệu (Phụ liệu)
1523 Nguyên vật liệu, vật liệu trong kho
1524 Nguyên liệu, vật liệu chuyển sang thành phẩm
1534 Thiết bị, phụ tùng thay thế
154 Chi phí sản xuất, kinh doanh dở dang
1551 Thành phẩm nhập kho (Finished goods)
1557 Thành phẩm bất động sản
158 Hàng hoá kho bảo thuế
171 Giao dịch mua bán lại trái phiếu chính phủ
2111 Nhà cửa, vật kiến trúc
2113 Phương tiện vận tải, truyền dẫn
2141 Hao mòn TSCĐ hữu hình
229 Dự phòng tổn thất tài sản
2291 Dự phòng giảm giá chứng khoán kinh doanh
2292 Dự phòng tổn thất đầu tư vào đơn vị khác
2294 Dự phòng giảm giá hàng tồn kho
241 Xây dựng cơ bản dở dang
244 Cầm cố, thế chấp, ký quỹ, ký cược
331 Phải trả cho người bán
333 Thuế và các khoản phải nộp Nhà nước
3334 Thuế thu nhập doanh nghiệp
3335 Thuế thu nhập cá nhân
3338 Thuế bảo vệ môi trường và các thuế khác
3339 Phí, lệ phí và các khoản phải nộp khác
334 Phải trả nguời lao động
3341 Phải trả công nhân viên
337 Thanh toán theo tiến độ kế hoạch hợp đồng xây dựng
338 Phải trả, phải nộp khác
3388 Phải trả phải nộp khác
341 Vay và nợ thuê tài chính
411 Vốn đầu tư chủ sở hữu
4111 Vốn góp của chủ sở hữu
421 Lợi nhuận sau thuế chưa phân phối
4211 LN sau thuế chưa phân phối năm trước
4212 LN sau thuế chưa phân phối năm nay
5111 Doanh thu bán hàng hóa
5113 Doanh thu cung cấp dịch vụ
521 Các khoản giảm trừ doanh thu
515 Doanh thu hoạt động tài chính
642 Chi phí quản lý DN
6427 Chi phí dịch vụ mua ngoài
8211 Chi phí thuế TNDN hiện hành
8212 Chi phí thuế TNDN hoãn lại
911 Xác định kết quả kinh doanh
2 Appendix No 02: Order of bookkeeping of LMS VINA CO., LTD.
: Ghi hàng ngày : Ghi cuối tháng hoặc định kỳ : Quan hệ đối chiếu, kiểm tra.
Sổ nhật ký đặc biệt Sổ Nhật ký chung Sổ, thẻ kế toán chi tiết
SỔ CÁI Bảng tổng hợp chi tiết
Bảng cân đối số phát sinh
BÁO CÁO TÀI CHÍNHChứng từ kế toán
3 Appendix 03: Sample invoice of the company
5 Appendix 05: Report on business results in 2021
Appendix 06: Notes to the financial statements section 21
Appendix 07: Order of recording of accounting books in the form of General Journal
Ghi cuối tháng hoặc định kỳ Đối chiếu số liệu cuối tháng
Appendix 08: Order of recording accounting books in the form of Journal - Ledger
Appendix 09: Order of recording of accounting books in the form of book-entry vouchers
Appendix 10: Order of recording accounting books in the form of computerized accounting