Study accounting system used in the manufacturing business enterprises in vietnam

On the other hand, the obligation of implementing the layered account system, such as the accounts which is being applied to the current business is not flexible and does not enhance sel

INTRODUCTION

1 Rationale of the study

The Accounting system is an important component of the system of

economic management tools - finance, plays an active role for the

management, operation and control of economic activities Following the

trend of world and regional economic integration, accounting system is

required to be completed synchronously and suitably in providing

information in order to meet the new administration requirements Business

accounting system has many contents, including the system of accounts is an

important content which is related to and has decisive effects on all

remaining contents of the business accounting system

Through Business account system, accountants classify, reflect, record

and process apparently arising economic transactions on time and fully This

process helps to check and analyze information about arising economic

transactions according to administration requirements, also helps Directors

Committee of Business to make economic decisions on time At the same

time, through Business account system, accountants collect the necessary

information which is the basis of process of setting up and presentation

Financial Statements (FS), which will be a reliable basis for the

administrators evaluate the financial situation exactly and forecast the

financial demands of the business in the future Therefore, Business account

system plays an important role in determining the quality of accounting

information and accounting job Thus, in the process of developing the

business accounting system, it is necessary to perfect business account

system

In fact, besides Account system regulated in Business Accounting

system issued by Decision No 15/2006 dated 20/3/2006 (hereinafter as

Decision No 15) of the Financial Minister , Account system also applies to

small and medium enterprises issued following by Decision No 48/2006

dated 14/9/2006 In addition, according to Decision No 15, the specific

fields and industries are allowed to develop and issue separate account

system ( Electricity Group, Telecommunications Group, Petrolimex Group,

Aviation Corporation, ) On the other hand, because the rules of the

account system do not keep up with economic development, the Ministry of

Finance has to amend and supplement the system of account regularly (the

Circular No 138 / 2011 dated 4/10/2011 about amending and supplement

the accounting system of small and medium enterprises; Circular 244/2009

dated 31/12/2009, about amending and supplement accounting system issued

following by Decision No 15/2006 dated 20/3/2006 ; )

The existence of many account systems which are applied for businesses, supplemented and updated regularly according to recent regulations can make difficulties in the operation of business accounting information system On the other hand, the obligation of implementing the layered account system, such as the accounts which is being applied to the current business is not flexible and does not enhance self-responsibility of business because of not allowing the business owners to open the detailed layered account system , not require businesses to design and implement account system by themselves according to Accounting Standards and related regulations about setting up and presenting Financial Statement as well as meeting the administration requirements of State and business United applying account system and accounting method will no longer match with the actual policies, economic, financial and tax system, which is newly issued or amended, supplemented or varied business activities in the trend of economic integration

According to basic analysis above, the author has chosen the subject for her doctoral research, entitled "Study accounting system used in the manufacturing business in Vietnam”

2 Aims of the study

The basic aim, through the study is the application of theoretical framework of account, account system used in the manufacturing - operation business and the usage of data about account system of manufacturing business analysis, evaluation of current systems accounts used in current manufacturing - operation business in Vietnam, from which to find appropriate solutions to develop and build account system used in manufacturing - operation business in Vietnam in order to improve the quality of accounting information for managers

3 Object and scope of the study

- Object of the study :

The study researches of the account system used in the manufacturing

- operation business in Vietnam With this object, the author studies in depth the basic theoretical issues and survey the actual situation of the account system as well as the application of current account system in the business - along with the recommendations for improving the current business accounts system

- Scope of the Study:

The study focuses on researching current account system used in manufacturing - operation businesses in Vietnam and recommending completion and building account system of these businesses In detail:

+ About the contents: Research thesis limits the theoretical and actual issues

related to account systems account applied in manufacturing - operation

businesses;

+ About space: : Research thesis limits to study account system account

applied in manufacturing - operation businesses and the usage current

account system in these businesses;

+ About time: Research thesis studies account system used in the

manufacturing - operation businesses in Vietnam since 1954, especially, the

author focuses in the period from 3/ 2006 to now, when the account system

is applied in the manufacturing - operation businesses

4 Research Questions

To get the objectives given above, the thesis focuses answer general

question: How does current account system used in the manufacturing -

operation businesses in Vietnam affect the result and efficiency of

accounting, in general, and the quality of accounting information in

businesses, in particular?

Since then, the thesis pursues the following questions:

*What are the characteristics of the account system used in the

manufacturing - operation business?

*What are the factors affected the account system used in the

manufacturing - operation business?

*What are the solutions and recommendations to improve and develop the

account system used in the manufacturing - operation business?

5 Methodology

The study used the combination between qualitative and quantitative

research methods Quantitative research method is the use of explanation

approach and qualitative research method is the use of inductive approach

6 New contributions

Thesis has the following key contributions:

- Systemize and clarify the basic theoretical issues of account system used in

businesses

- Analyze and evaluate objectively the existence of the current account

system used in manufacturing – operation businesses in Vietnam

- Study the influence of subjective and objective factors to the current

account system used in manufacturing – operation businesses in Vietnam

- Propose solutions and conditions to improve and build the current account

system used in manufacturing – operation businesses in Vietnam

7 Structure of the study

Apart from to the introduction, conclusion, list of tables, charts, appendices,

references, the thesis includes four chapters:

Chapter 1: Overview of business account system;

Chapter 2: Theoretic foundation of accounts and account system used in manufacturing – operation businesses.;

Chapter 3: The findings of researching about the account system used in manufacturing – operation businesses in Vietnam;

Chapter 4: Discussion about research findings and recommendation for solutions to improve the current account system used in manufacturing – operation businesses in Vietnam

Chapter 1 Overview of business account system

In conditions of market economy following to socialist orientation and the trend of international economic integration, the management of the Government by laws requires businesses to innovate and improve system financial management tools, including accounting systems Accounting system is an association of many different components and factors, including the account system considered as an important component of the business accounting system, which has an influence to other components in this system

Account system plays an important role in the management of capital, assets, operation activities of each business as well as accounting also provides essential information for all related businesses, organizations and individuals including investors, customers, suppliers, Information provided by Accounting is the foundation for the Government to control and investigate operation activities of businesses and Governmental management about business accounting, contributing to macro – economy regulation Research on account system in manufacturing – operation businesses has been done in most countries around the world In developed and developing countries, along with the development of market economy, accounting system, including account system in manufacturing – operation businesses is set up by themselves according to Accounting Standards Account system is regularly studied, supplemented, amended and improved

to meet the requirements for providing information for management The study of account system is carried out in agencies, organizations and business depending on the study, building to issue business accounting system of each country

Currently, in the world, there are two systems tendancy to build Account system as follows:

* 1st trend: The businesses build account systems based on accounting standards ( translated to “ Based Accounting Standard")

- 2 trend: Government builds issues united business account system

applied in enterprises (translated to "Uniform Accounting Plan")

In Vietnam, the researches and evaluation about business account

system of scientists are quite diversified, which can be generalized on the

following aspects:

- About the authors: The authors of this evaluation almost are lecturers

teaching accounting in universities or colleges, experts in building

Accounting system field; accountants, corporate administrators, individuals

and businesses which build to sell business accounting software The study

was carried out during the research and training in the practical organization

of accounting corporate

- About the scope and object of study: The study about account system

involves in theoretical issues as well as investigated buildings in these

businesses

- About the nature and mean of the study: Because subjects are diversified,

the nature and mean of these researches is also diversified such as the

scientific study published in the specialized journals or researches of the

ministries

- About the views and mentioned solutions : The published researches can

be divided into 2 groups: Specific solutions and views and general ones

Besides the specific researches, Vietnam also had a few researches

about accounts and accounts system in manufacturing – operation businesses

holistically, towards the building and developing account system in these

businesses Firstly, Ministerial research (Ministry of Finance) "Innovation of

unified account system" was accepted by Chairman Dr Vo Dinh Hao in

1989 Because this research was studied in the late 80s of the last century, it

only mentioned about unified account system in the system of budget

subsidies

Dr Nguyen Van Cong and his partners in the Ministerial subject

(Ministry of Education and Training) "Complete unified account system

applied in manufacturing – operation businesses in Vietnam” – mentioned

account system in the market economic period with the aim of improving the

business account system according to Decision No 1141/1995 of the

Minister of Finance about issuing Business accounting system Many

solutions of the author has been acquired, edited in Decision No 15/2006

(replacing Decision No 1141/1995) as the name of account, the account

group and additional content the account

In summary, through an overview of the researches about completion

business account systems inside and outside Vietnam have given valuable

recommendations These recommendations are divided into two types: (i)

The specific recommendations has generally just brought small changes in current account system in business and not made a really breakthrough changes Most authors focused on the improvement of the account system, there are still inappropriate and unfinished contents in system such as issuing amendments, supplement accounts or accounting methods in accordance with actual conditions, consistency among Standards Based Accounting, financial regulations and current Standards Based Accounting, (ii) There is little research holistically

The Summary of Chapter 1

Chapter 1 focuses on clarifying the published research by scientisyts inside and outside our country about accounts and accounts system, in general; account system in manufacturing – operartion businesses in particular This indicates gaps which are needed to continue researching and establishing the subject of the thesis "Study accounting system used in the manufacturing business in Vietnam”

Chapter 2 Theoretic foundation of accounts and account system used in

manufacturing – operation businesses 2.1 Accounting, legal framework and regulations on business accounting

2.1.1 Accounting model

Accounting is the collection, processing, testing, analyzing, and providing economic and finacial information, in the form of financial value, kind and labor time, but accounting is not pure science, it is the kind of social science about economic management In fact, accounting is governed

by many factors such as economic conditions, socio-cultural, political and national laws of each other over a period historians development Historical research of accouting in the different periods around the world, it can generalize the accounting model into 6 types as follows: cash accounting model; accrual accounting model, the accounting model; tissue the static accounting, accounting model macro current model of accounting Six basic types of accounting correspond to the way different accounting and different economic systems The identification of these differences is necessary to build appropriate accouting system

Identify accounting Vietnam model

Distinguish accounting modes as described above, the study characterized the expression of business accounting inVietnam which not only reflects the assets of the business but also leasing assets, the value of

assets is recorded real cost and reflected the assumption that continuous

business operations; stated capital amount raised etc

From the above characteristics, it can be found that accounting system in

Vietnam has many characteristics of the moving accounting model which is

served for requriments of the assessment of effective economic activities and

performed as accumulative method Thus the system in general and Balance

particular system technical design for enterprise business application must

be built according to the following principles: (i) Comply with the principles

and VAS (ii) All the assets involved the business processes of enterprises are

recorded at historical cost convention without recorded at market value and

the accounting point of view in favor of use of property without accounting

assets under ownership by So accounting is increasing or decreasing asset

receipt or transfer property or the rights and obligations arising out of such

property, (iii) Funds are recorded at the amount of capital received and not

recorded in the registered capital (iv) Depreciation and amortization is

calculated on a systematic way the cost (fixed cost) based on how the

recovery of the economic benefits of each fixed and static bypass

amortization, (v) The financial statements shall be made, (vi) Revenue and

expense recognition principle not money but the principle is recognized in

each period accrual in accordance with the actual profitability of the use of

property; (vii) The accounting method is a method of recording dual method

perpetual or periodic inventory

The basic characteristics of accounting in Vietnam, studying business

account system provide solutions to complete the Law on Accounting,

Balance of accounting and Vietnamese Standard Based Accouting system

At the same time, to meet the requirements of international economic

integration, the business account systems in Vietnam must also be consistent

with the general practices of other countries

2.1.2 Legal framework and regulations on business accounting

Accounting is not pure science but in social science of economic

management As a rule engine management system, accounting is governed

by many factors such as economic conditions, socio-cultural, political and

law of each country over time the bear Beside, systems governed by general

law, accounting also requires its own rules To organize and manage the

accounting law firms, the country has the legal documents and form the legal

framework and the accounting rules that businesses must follow the rule of

law Law and accounting regulations are uniform system of accounting

documents, governing the organization and execution of the business

accounting including regulations promulgated by the State nature laws and

regulations are not issued by the State (possibly due to the organization of

the accounting profession and the audit committee At the national laws and regulations applicable to accounting firms including: (i) the Accounting Law, (ii) Guidelines for implementation of the Law on Accounting, (iii) Accounting Standards (iv) corporate accounting system, (v) The provisions

of the securities market

Thus, to ensure corporate compliance with laws and regulations on accounting and technical design of business systems to be studied, in order

to build classification and systematization of all economic transactions student to provide sufficient information for businesses and other organizations and individuals as required by law and the rules of law designed Suffering and the accounting regulations of the different countries each of the issuing agency, the scope of the State to issue regulations consistent and allows businesses to actively and flexibly This is an really important practice which is needed to consider to research and apply in manufacturing – operartion businesses in Vietnam

2.2 Account and account system in manufacturing - operation business 2.2.1 Account

Accounting formation and development are associated with the formation and development of the economy producing goods economy The formation of accounting is essential objective of producing economic goods

To carry out the functions and duties of his accounting system uses a scientific approach to the acquisition process and provide information on the properties and movement of assets in the enterprise , thereby monitoring the entire property and the financial and economic activities in the enterprise One such method is the method known as technical design methodology for application and account-specific forms of manifestation of this approach is the technical design

Through the account system is the method which classifies, codifies to reflect the arising transactions incurred by each subject in specific accout book keeping

2.2.2 The system of account in manufacturing – operarion business

The account system is the list of accounts used in accounting to reflect the entire property, assets and resources to form their movements during the production activities of the enterprise to as a basis for preparing and presenting financial statements to meet the requirements of all objects used

by the accounting information provided

The account system is the important content in the process of implementing the accounting of business enterprises Therefore, technical design and technical design of business systems is of great significance in

the economic and financial management in general as well as in the

accounting of each particular business Specifically:

- Account and account system are enable accountants in business can

categorize and systematize information about the property, assets and

resources formed the financial and economic activities in the service of

business management of the State, and of each of the business sectors

Through the technical design and methodology notes, reflecting the financial

transactions incurred on the technical design that managers can capture the

economic and financial information, as a basis for decision- the economic

and efficient administration and management

- Account and account system are enable the system of specific information

and details about the property and the movement of assets in the enterprise

for business requirements management, requirements management hierarchy

economic management in the enterprise, as well as asset management

requirements in the enterprise

- Accounts and account system help to systematize data on economic

indicators, to establish the financial periodic reports required by financial

accounting and management accounting

2.2.3 Principles, requirements and reflected contents of the system of

accounts in manufacturing – operation business

The completed study system account system applied in businesses in

Vietnam is urgently needed On the basis of studying the impact of the

technical design of the system to the needs of the users information needs of

management objects for system technical design, factors affecting

construction activities technical design system applied for now, the author

proposed guidelines, the study required to complete the technical design of

enterprise business systems as follows:

2.2.3.1 Principles of building accounts in manufacturing - operation

business

To perform the role of information classification and provides

information on assets, capital and economic activity generated in the finance

business, process research, development and technical design of the system

shall complete for business enterprises must be based on the basic principles,

including:

(1) Comprehensive Principles

This principle requires technical design of enterprise systems have

adequate quantity of account, account group and the number of levels in

each group account; accounting principles in each group account and

account; structure and content and reflect the accounting method primarily

economic transactions Since it can implement the classification system of

all economic transactions arising in the business to ensure the provision of reliable information, sufficient for all subjects to use different purposes

(2) Principles of compliance

The completed study of account system has to ensure compliance with laws and regulations, including accounting Accounting Law, the documents guiding the implementation of the Law on Accounting, VAS In particular, there must be adequate guidelines for technical design use accounting methods to guide implementation of VAS In addition, the technical design

of the system must be adequate for the specific content and the content reflects the method of accounting transactions arising in each technical design to ensure compliance with business regulations and economic policies, financial, tax related, ensuring the truthfulness and objectivity of the information provided

(3) Principles of flexibility

Business account systems to suit every type of business, economic groups, to suit each industry and specific business sectors, in line with the economic development level of each country and match with each stage of economic development and management in each country

(4) The principle of integration and development

Accounting is one of the important tools of the state to manage the economy The economic information, financial business enterprises provide not only for domestic use but also be used for objects outside the territory of the trend of international economic integration, with operations growing business diversity, interleaving regional and global Therefore, the technical design of business systems to better serve the economic reforms of each country

This principle requires the complete study system technical design business enterprises must be based on research, study, absorb, selectively applying international practices and experiences of other countries in accordance with conditions of Vietnam

2.2.3.2 Requirements for building a system of accounts in manufacturing – operation business

To adhere to the principles of research and development to perfect the business account system as mentioned above, set out the requirements to make the research process complete technical design enterprise business systems as follows:

(1) To ensure consistency

According to the requirements needed to study and build the State issued a account system to apply to all firms within each country The enactment of a system of uniform business account system will create more

favorable for both research institutions, both issued and when implemented

From that overcome limitations due to overly complex, difficult to

implement if the Government has enacted many account system for

enterprises in general and for each specific business area or for each scale,

types of businesses

(2) Ensure the "open"

The system must be built on technical design and adapt open for

business, the economic process will arise in the future, to ensure compliance

when both applications are feasible in practice to meet the need to provide

economic and financial information fully, honestly and promptly serve

effectively for the management and operations of the business enterprise

itself as well as for all objects in need using information outside the

enterprise

In addition, the business account systems has to be suitable with the

level of economic development and international recognition The

construction of enterprise business systems technical design must take into

account the role of the State to ensure the State's management of accounting

must take into account the impact on all the aspects: knowledge, people and

procedures administrative and management practices and especially not in

accordance with the management, and information technology to be feasible

in practice

2.2.3.3 Contents of account system applied in manufacturing –

operation business

To meet the rules and requirements as stated above, technical business

account systems must include the following basic contents:

(i) The list of account, account groups need to be clearly defined state to the

uniform application and content enables enterprises to be proactive, flexible

and self-responsibility

(ii) For each type account, account groups need clearly defined content

reflects, accounting principles, structure and methods of accounting

transactions arising mainly economic and relationship with the financial

statements and reports administrator

(iii) The provisions of account and account groups should be specified by

the State to perform the legal basis for the corporate uniform The opening

of the technical design of technical design and content of each enterprise

should actively and flexibly to suit the construction business characteristics

and management requirements

With the aim to contribute to research and build completed account

system applied in enterprises in Vietnam determine consistency and enhance

the autonomy, flexibility for business, while providing the perfect solution to

overcome the limitations of the technical design of business systems in accordance with current needs research, surveys, international rules in order

to draw lessons for Vietnam

2.3 Experience for developing and perfecting the system of accounts of manufacturing - operation business – around the world and applied lessons for businesses in Vietnam

2.3.1 The experience of countries in the world

Legal framework and regulations, including accounting system of national enterprise technical design is influenced by economic factors, cultural and social In particular, the factors most clearly influenced the design model legislation, tax system and stock market These factors may affect different levels to make up the diversity of the legal framework and the rules of business accounting

The legal system of this country is built on two schools: School of Roman Law (Roman Law) and Law schools Chung (Common Law) In the Anglo - Saxon, including the U.S., UK, the legal system established by Public Law model Accordingly, the tax system does not have much influence accounting The stock market is the most powerful influence of laws and regulations on corporate accounting In other countries, the legal system is set up in the model of Roman law, such as Japan, France, Germany, Accordingly, the tax system has a profound effect on the accounting and stock market have little effect to business accounting The completed account system of business systems first need to consider the experience of conducting research, building the framework of the law and the rules of business accounting (including account system) of the specific country To draw lessons from the experiences of countries around the world

to study and completed business account systems to suit the conditions of Vietnam, to the general study of building research framework laws and accounting rules, including the technical design of the water system in the world and the developed countries or have many similarities with the political economy of Vietnam (such as the U.S., France, China )

2.3.2 Lessons applied to Vietnam

Through the study of the legal framework and accounting regulations , which focus on business account system systems of countries around the world can draw some lessons for Vietnam in the study completed technical design system applied in business as follows :

Firslyt, fully aware of the need to improve the system studied account

system of existing business Due to the quality of financial information is fully reflected , timely , clear , reliable financial statements through the system and management reports to meet the requirements of financial

accounting and management accounting purpose end of the State and

towards business To improve the quality of financial information , one of

the things to do is to study and completed business account systems

Seconldly, accounting is a global issue now, so when studying

technical design complete systems of national businesses to consider in

relation to the whole framework of laws and regulations designed

accounting standpoint and legacy integration advantages of the current

provisions in the roadmap accordingly On the other hand , an enterprise

accounting system , including account systems , often associated with a

certain economic system and influenced by economic institutions , national

politics So the research process and complete technical design business

systems to ensure both integration , consistent with moderate operating

characteristics of business and in accordance with the characteristics and

level of economic development of each country At the same time to study

and complete the technical design of the system with the legal framework

and accounting regulations

Thirdly, the system needs to improve accounts toward building a

unified system of accounting , ensuring the " closed " and " open " , also

known as ensure consistency and promote the autonomy and

self-responsibility of corporate self-responsibility In the " closed " to define the

scope of state regulation uniform of accounts , accounts and team principles

and methods of accounting transactions primarily facilitate instruction and

training; for inspection , testing , auditing and management accounting State

At the same time, the legal basis for all business has been done uniformly

This is in accordance with the conditions and the accounting and

management of Vietnam today In the " open " , because business practices

are diverse , constantly evolving , constantly updated VAS completed in all

countries , so to reduce the work detailed instructions , in particular , often

State must do regularly to avoid the situation of a system of national

technical design for each business area , business account systems to

improve towards the initiative enables businesses to design and implement

appropriate the characteristics of the business Should clearly identify the

contents related to the technical design of the system is now active on the

basis of VAS and related regulations For this , it is necessary theoretical

studies, international practices and surveys, assessment systems technical

design practical application in business in Vietnam to view and propose

solutions to fit perfect

Conclusion Chapter 2

Accounting formation and development associated with the formation

and development of the economy producing goods The formation of the

necessary accounting and economic necessity of producing goods In particular, accounts and business accounts systems is an important part of the accounting system

On the basis of the theoretical content of the basic business account systems, and an overview of the experience of the world in order to draw lessons for Vietnam These principles, requirements and content when building enterprise systems technical design oriented basic research to applied reality technical design enterprise business systems currently in Vietnam to provide perspectives and solutions complete technical design of the current system used in business enterprises in Vietnam

Chapter 3 The findings of researching about the account system used in manufacturing – operation businesses in Vietnam 3.1 The process of formation and development of the system of accounts appliced in manufacturing - operation business in Vietnam

As a basis for standardized reporting processes information in the enterprise , to increase the usefulness of accounting information for the users , business account system in Vietnam has gradually be improved to suit requirements , tasks and management mechanisms Vietnam economy in each period ( stage ) development of the country

Through the various stages of development of the economy , accounting systems account manufacturing enterprises - in particular business and accounting regulations in Vietnam in general has experienced significant growth The process of formation and development of business systems technical design business in Vietnam can be generalized in three stages : Stage from 1954 to 1995 , the period from 1995 to 3/ 2006 and the period from January 3/2006 to present

3.2 Condition of the system of accounts applied in the manufacturing – operation business in Vietnam

According to the regulations of Vietnam accounting regime applicable , the business - business production depending on size and ownership characteristics can apply the system of accounts Decision 15/2006 dated 20/03/2006 issued " enterprise Accounting System " ( as amended and supplemented by Circular No 244/2009 - dated 31/12/2009 ) and Decision 48/2006 - dated 14/9/2006 issued " Accounting System small and Medium Enterprises " ( as amended and supplemented by Circular No 138/2011 - dated 4/10/2011 ) Minister of Finance The technical design study mode current (issued by the Decision 15/2006 and Decision 48/2006 and circulars , additional related ) along with the survey of 105 businesses in the situation

of applying accounting system account existing business in Vietnam has

shown many shortcomings , which requires agencies to soon to complete

research and development a system of accounts applicable to the production

enterprises - business , meet the requirements of economic development ,

strengthening the autonomy and creativity of business Can generalize the

results of the survey on the back : On manipulate objects ; On the number ,

code and account name ; On the ability to provide information ; On

reflection contents ; Regarding the ability to apply , On the flexibility of the

system account

The cause of the drawbacks

Firslyt, each business enterprises of all economic sectors have

different specific characteristics of management systems , to provide the

information requested in the marketplace So , how to manage and control

the level of information relating to economic activity - financial enterprises

also have significant differences Although businesses Balance , namely

technical design system , issued by the Ministry of Finance has

differentiated business activities sector , by size of business capital but the

use is seen as cumbersome and less effective The reason is that the State

has issued regulations and account system too rigid in the application ,

which poses considerable difficulty for businesses to use

Secondly, the guidance , inspection and control of the professional

bodies concerned , as well as professional associations have not been regular

and timely

Enterprise accounting system of Vietnam, including account system is

in the process of finishing Many new issues arise in business practices

required needs to be additional , improved to meet the requirements of the

management and provision of information However, the specific guidance

documents on accounting regulatory bodies of the State but has not yet

timely and specific

Thirdly, the business enterprises in Vietnam are included strong

growth in recent years , awareness of the accounting and business advocacy

organization in the technical design of the system provides information for

demand management is limited Moreover, in most enterprises lack an

internal control system should be implemented in the method of accounting

system technical design without testing , routine control This leads to more

information are provided on incorrect financial statements in accordance

with the relevant VAS

Conclusion Chapter 3

Since the '70s, along with the development of economy, technical

design system has been issued and continues to be amended and

supplemented in accordance with the complete Law and Accounting Vietnam Vietnam VAS system

From the survey (survey through direct votes and surveys) and analysis of the current status of application of business account system on the second business perspective is defined by the State and in the practical application of enterprise so that, given the authors evaluate the feasibility of the system promulgated laws of the State of accounting and evaluate the effectiveness of the actual implementation of that policy in the business On

a theoretical basis in the reality of chapters 2 and 3, the thesis provides some solutions to develop basic account system shall be applied in the business in Vietnam

Chapter 4 Discussion about research findings and recommendation for solutions to improve the current account system used in manufacturing – operation businesses in Vietnam 4.1 Discussion about findings of the current account system used in manufacturing - operation business in Vietnam

4.1.1 The regulation of accounting system

Business account system under Decision No 15/2006 was basically to ensure conformity with the requirements and characteristics of the economy and our country , in accordance with the financial mechanism to ensure connection rational mechanism between financial management tools in the national economy Since then, facilitate training , instruction , testing , inspection , audit and implementation of the accounting practice of state agencies and businesses

Business account system existing now Vietnam , qualified accountants in our country has been raised to a step- down approach to international accounting , practices , accounting principles of the common market economy has been studied and applied gradually

Although the system has current enterprise technical design to meet the financial management needs of businesses opening period but the economy is still very limited , need to continue to build and improve

4.1.2 The application of the system of accounts in business

Actual Survey results show that business account systems managed by the Ministry of Finance meets requirements of business management at the overall level Most businesses need to monitor in detail the accounting object depending on the requirements of each business management , so that they will open more account details There are many businesses fail to

fulfill the economic content of accounts prescribed In some parts of

accounting , some transactions arising in a number of accounts are confused

and inconsistent among enterprises

Experts Survey results also show that the majority of accounting

professionals in small and medium enterprises suggest that the Ministry of

Finance should issue a single account system Because small and medium

enterprises in Vietnam accounted for a large proportion ( only at registered

businesses , the rate is above 95 % ) Therefore, their contribution to total

output and employment is significant In most economies , small and

medium enterprises as subcontractors for larger firms , the industry and

critical support services Therefore, in the near future , making small and

medium-sized enterprises active in the stock market is a necessity

Based on the status of account system applied inmany different

business sectors has revealed the inadequacies , weaknesses, which needs to

be tackled , and to complete the account system in the direction of open ,

flexible activities , adapted for businesses of all business sectors , under all

forms of ownership , capital to bring the highest efficiency in the operation

of accounting information systems Doing this in order to meet the

development requirements management market economy with socialist

orientation participation of State management , accelerate the process of

economic integration ( including integration of information design math ) ,

consistent with the policy , economic policy of the Party and State

4.1.3 The completion view and building account system in new

manufacturering - operation business

The fact that accounting is the common language in all business

activities, and playing an impoetant role in recent conditition, it is necessary

to promote international integration of Vietnam 's accounting , the

determination the proper perspective is a complete non-issue as important

The completion of the technical design of the system in the enterprise

application business will be done in the following directions : Viewpoints

bequest mandatory viewpoint and flexibly apply dund ; view integration and

development , provides perspective information

4.2 Solutions to build and perfect the system of account applied in the

manufacturing - operation in Vietnam

In the third chapter , the author evaluates the advantages and

drawbacks of the existing system of business account system in Vietnam

From this situation , the current system will be studied and completed by the

following specific solutions , but only limited accounts applied in the current

system in business in Vietnam

Basis to build and improve the technical design of the system applied

to the enterprise 's business Accounting Law ( 2003 ) , VAS , IAS , Balance business , in the process economic integration in the region and the world ,

to the development of market economy in Vietnam and in the future In fact , all 26 VAS issued in 5 waves from 1999 to 2001 are based on IAS So far , the IAS has been supplemented , amended and promulgated the new VAS

In recent years many important changes in the accounting and financial statements , the organization issued IAS is trying to harmonize accounting principles recognized by the USGAAP and up and IFRS European Union requires all listed companies are members of the EU countries to adopt IFRS before 2005 and many countries issued IAS closer to IFRS

With the aim of improving the system of technical design practices in accordance with business before the business trend of international economic integration , the solution that the authors propose the following thesis is based on the view : State build a system of accounts agreed to be " open " on the basis of VAS , in which only includes the types and account groups , along with general guidelines for the content reflects , businesses are allowed to take the initiative construction, selection , add the account level ( level 1 , level 2 , ) such that match specific business activities and management requirements of their units on the basis of compliance the general regulations of the regime and accounting standards Technical Design System is applicable to all enterprises of all forms of ownership , all sizes , all areas of business

4.3 Conditions to complete current account system applied in the manufacturing - operation business in Vietnam

4.3.1 On the side of the Government and Government agencies

The Government , the entire function manage the national economy through economic policy , macro- financial system of the State and other regulatory policies , especially the design management of the State auditing ,

to create and perfect the legal framework of economic , financial , tax and accounting practices consistent with , international standards and conditions

of Vietnam in the trend of economic integration international The process

of improving the law in finance, taxes and regulations related to financial statement preparation and presentation will set out guidelines require timely accounting to ensure corporate compliance

4.3.2 On the side of enterprises

As the regulatory environment of accounting and other conditions of the policy has been amended and supplemented , complete the remaining issues to better organize accounting work in the business of the enterprise itself each business

Conclusion Chapter 4

To meet the new regulatory requirements of the market economy and

socialist-oriented requirements of international economic integration ,

should be established and put into operation in the national economy, a joint

business account system professional with appropriate economic policies -

social , consistent with the level of economic development of our country

and in accordance with the principles , standards and common practices of

international accounting In particular , the study of theory and practice to

produce solutions to improve account system applied in enterprises in

Vietnam 's business requirements and current objective

For the above reasons , in this chapter 4 , on the basis of theoretical

and practical evaluation of current business account system , the author

makes the point and basic solutions to current account system applied in

business in Vietnam At the same time, analyze the conditions for the

implementation of system solutions complete the account system applied in

business in Vietnam The complete solution in the direction of the Ministry

of Finance proposed regulations unified account system , account and group

method of accounting transactions primarily in the account group to apply to

all businesses, Expanding autonomy for enterprises in the construction and

opening of the account details , place code and the account name in the list

of accounts details have been issued

GENERAL CONCLUSION

Vietnam is in the process of building mechanisms socialist-oriented

market, with open economic policy, which attracts foreign investment and

gradual integration with the world economy The mechanism of this new

economic management, in order to survive and develop the business,

investors, managers, need to make decisions quickly, economically and

correctly The economic and administrative decisions can be made only on

the basis of the reliable economic information (including realistic

information and forecast information) Information provided by the book

keeping operation, accounting’s collecting, synthesis, processing and

providing is actual, comprehensive and highly reliable That information

includes the information of assets and the financial and economic activities

in the units, which are served for leaders and financial managers of the

Government, Industries, and each enterprise This information is codified

through business account system

Account System used in business accounting reflects assets and

estblishment resources of assets and their movements during the production

activities of enterprises, in order to provide the data for setting up financial

statements which meet the requirements of usuers With this meaning, It is

necessary to research to help to improve account system applied in businesses in all types of business, all scales of business, to contribute to improve the legal environment for accounting in market economic socialist oriented and in accordance the macro-management requirements of the Government and enterprises in Vietnam This contributes to be transparent and publicize of financial condition, business situation of enterprises, enhance competitiveness and promote economic integration process Based on the application of research methods, thesis has made the following findings of theoretical as well as practical:

First of all, the thesis is a systematic view of researchers, mainly focused on the improvement of a number of technical design, reflected in the content of the current account perspective in the application of specific business accounting system The research has proposed many valuable recommendations and appreciatively practical theory, but not stood on a macro as well as micro perspective to create the revolutionary change in the completion process of account system applied in businesses in Vietnam in accordance with the practices of developed countries Since then, It is necesssary to continue to research to provide basic and comprehensive solutions to Governemt agencies, experts in accounting field, especially businesses to consider for improving current account system appled in enterprises

Secondly, the thesis has codified the basic theory of accoynt system and accounting system in businesses On the basis of analysis, clarify the impact of this system to the demands of the users, managers, affected impacts The thesis analyzed the principles, requirements and contents to improve business account system This is a basic orientation to study the current account system applied in current enterprise to provide views and solutions to improve the account system used in the manufacturing - operation business

Thirdly, from the survey and situation analysis of business account system, we can consider this matter in two sides: the legal framework and actual implementation of the businesses The thesis analyzed, evaluated the status of the current account system, indicated advantages, limitations This

is a factual basis for the thesis to provide some basic solutions improve the account system used in the manufacturing - operation business Finally, on the basis of theoretical studies, assessment practices, to meet new regulatory requirements of the socialist-oriented market economy international economic integration, narrowing the differences in accounting between countries, different regions, creating a common voice in accounting, has launched the thesis point and basic solutions to improve