Theoretical side: Systematizing and improving the theory of organizing accounting work in enterprises in generally, in enterprises operating under the model of parent company - subsidiary in particularly.
Trang 1MINISTRY OF EDUCATION AND TRAINING
VIETNAM UNIVERSITY OF COMMERCE
nguyEn thu hUOng
COMPLETING THE ORGANIZATION OF ACCOUNTING WORK AT ENTERPRISES OPERATING UNDER THE MODEL OF PARENT COMPANY - SUBSIDIARY OF THE
Trang 2The research is completed at Vietnam University of Commerce
Research instructors: Assoc.Prof Dr Doan Van
Trang 3and Library of Vietnam University of Commerce
Trang 41. Urgency of research topic
In the intergration trend and under the strong impact of productive forces’ developing process, enterprises operate as parent company subsidiary have been being established and grown stronger by their inherent advantages.
In Vietnam, the basis to form the model of "parent company subsidiary" started from the early 1990s with the establishment of 90 corporation and 91 corporation.
The establishment of parent companies subsidiaries under the Ministry of Defense (MOD).
From the theoretical basis and practice, the author chooses the thesis:
"Completing the organization of accounting work at enterprises operating under the model of parent company subsidiary of the Ministry of Defense" to be the doctoral thesis in economics.
* In Vietnam
Some typical researches.
Trang 5However, there is no project specifically and comprehensively researches, analyzes about the organization of accounting work at enterprises operating under the model of parent company subsidiary of the Ministry of Defense Therefore, the thesis “Completing the organization
of accounting work at enterprises operating under the model of parent company subsidiary of the Ministry of Defense " is the scientific work
which is valuable on both theory and practice, and highly applicable specially for army enterprises in peacetime who has two strategic tasks: to develop the economic, build up and defend the country
3. Research objectives of the thesis
Theoretical side: Systematizing and improving the theory of
organizing accounting work in enterprises in generally, in enterprises operating under the model of parent company subsidiary in particularly
Practical side: Researching, annalyzing, evaluating the situation of
organizing accounting work, on that basis to propose the solutions to complete the organization of accounting work at enterprises operating under the model of parent company subsidiary of the Ministry of Defense
4. Objects and scope of the research
4.1. Objects of the research
Objects of the research are theoretical and practical issues about the organization of accounting work at enterprises operating as parent company
subsidiary
4.2. Scope of the research
Space of the research: Researching the organization of accounting work at enterprises operating under the model of parent company subsidiary of the MOD including 1 economic group (there are 02 Corporations operating as parent company subsidiary under the group), 13 Corporations.
Time of the research: Surveying, researching the data of organizing accounting work at enterprises operating as parent company subsidiary of the MOD since 2010.
Trang 66. New contributions of the research
Theoretical side: The thesis generically, systematically presents and
improves the general theories on the organization of accounting work at enterprises operating as parent company subsidiary
Practical side:
+ The research clearly indicates factors influencing the organization of accounting work at enterprises operating under the model of parent company subsidiary of the MOD
Trang 7+ From the limitations of the organization of accounting work at enterprises operating under the model of parent company subsidiary of the MOD combining with development oriented research of enterprises operating under the model of parent company subsidiary of the MOD to become the basis for completing solutions
Practical applicability: The thesis proposes solutions to complete the organization of accounting work matching with characteristic of the organization of apparatus management, the organization of business activities of enterprises operating under the model of parent company subsidiary of the MOD
Chapter 2: Actual situation of the organization of accounting work at
enterprises operating under the model of parent company subsidiary of the Ministry of Defense
Chapter 3: Completing the organization of accounting work at
enterprises operating under the model of parent company subsidiary of the Ministry of Defense
Chapter 1
BASIC THEORY ON THE ORGANIZATION OF ACCOUNTING WORK OPERATING UNDER THE MODEL OF PARENT
COMPANY SUBSIDIARY
Trang 81.1 Overview about enterprises operating under the model of parent company subsidiary
1.1.1. Concept of model parent company subsidiary
"Parent company subsidiary" usually refers to a combination or a group of companies relating to each other for capital, independent on legal and under the commonly unify control of the company holding the power to govern (parent company)
In legal science as well as economic science now there is definition which is quite clear about “parent company” and “subsidiary”
According to the interpretation of international accounting standards IAS.
in the combination and gets the acceptance of subsidiaries. Subsidiaries are enterprises in the combination established and registered in accordance with the law, and have a parent company to govern, control and voluntarily accept that governance and control under the certain rules and methods.
1.1.2 The establishment and development of enterprises operating under the model of parent company subsidiary
In the world:
The development process of market economy
The birth of a new form of organizing manufacturing business which is enterprises operates under the model of parent company subsidiary
Trang 9* Indispensability of the establishment and development of the model of parent company subsidiary
* Major method to form enterprises operating under the model of parent company subsidiary
In Vietnam:
In Vietnam, the model "parent company subsidiary" started forming from the beginning 1990s with the establishment of eighty 90 corporations (according to Decision No.90/TTg) and eighteen 91 corporations (according
to Decision No.91/TTg dated on 7/3/1994 by the Prime Minister).
The establishment of enterprises operating under the model of parent company subsidiary in our country was the results of many factors:
Firstly, Vietnam is in the process of international economic integration Secondly, The process of equitization, ownership diversity and re
organizing state corporations and enterprises have been decreasing the number of member units whose capital are 100% held by the state at 91 companies
Thirdly, The important legal basis paves the way for the establishment
of enterprises operating under the model of parent company subsidiary in Vietnam
1.1.3 Operating characteristic and superiority of enterprises operating under the model of parent company subsidiary
Characteristics of model of parent company subsidiary:
Firstly, model of parent company subsidiary has legal personality, in
which every member is an independent legal entity, has private business (fully economic legal personality); collaborating under the regulation that all members are equal under the law
Secondly, parent company has certain economic benefits relating to
subsidiary’s operation Parent company and subsidiary has a dependent relationship, support each other on strategy, finance and credit
Thirdly, parent company governs the decisions relating to subsidiary’s
operation through some ways
Trang 10relationship between two companies and is a relativity, which means the subsidiary could be a parent company of another company
1.2.1. Concept of the organization of accounting work
Concepts of the organization of accounting work
+ The first concept shows the organizing method of accounting work in the aspect of applying accounting methods, thus it does not clearly show many of relative factors
+ The second concept emphasizes the duty of organizing accounting work but focuses on considering accounting as science research rather than a management tool in the actual operation of the enterprise
+ The third concept mentions more detail on the organizing accounting work, to facilitate the application in practice to be favorable. Howerver, it does not clearly mention the apparatus organization to execute accounting steps
+ The fourth concept specify the specific contents of the organization
of accounting work in an unit, therefore it includes 2 key issues, those are to organize accounting apparatus and to organize collecting, handling the information on the basis of complying with principles, and accounting methods.
The view of the author: agree with the fourth concept, the organization
of accounting work is to organize a system of constituent elements
Trang 11including organizing accounting apparatus, organizing the implementation
of economic finance and accounting policy, along with the connection and the impact among those elements to maximize the functions of the system
1.2.2. Factors influence the organization of accounting work in enterprises operating under the model of parent company subsidiary
Basically, the organization of accounting work gets influenced by the following factors:
1.3.1 Principles of the organization of accounting work in
enterprises operating under the model of parent company subsidiary
The organization of accounting work should be systematic, scientific, and reasonable and comply with some following basic principles:
Matching request of economic integration, international accounting integration, principles, and international accounting standards
Obeying and matching with regulations of Accounting Law, accounting standards, regime and legal document system of accounting issued by the State.
Matching with characteristics of production, business activities (PBA), business management activities as well as scale and operation area
of the unit, matching with request and qualification of management officers, accounting staff.
Trang 12 Organizing information system of financial accounting: including collecting, handling and providing accounting information, organizing to analyze accounting information
1.3.2.1. Organization of accounting apparatus in enterprises operating under the model of parent company subsidiary
(1) Model of organizing accounting apparatus in enterprises operating under the model of parent company subsidiary.
Trang 13ACTUAL SITUATION OF THE ORGANIZATION OF ACCOUNTING WORK OPERATING UNDER THE MODEL OF PARENT COMPANY SUBSIDIARY OF THE MINISTRY OF DEFENSE AND OTHER COUNTRIES’ EXPERIENCES
2.1 Characteristics and factors influence the organization of accounting work at enterprises operating under the model of parent company subsidiary of the Ministry of Defense
2.1.1. General overview about enterprises operating under the model
of parent company subsidiary of the Ministry of Defense
General legal basis for the establishment of enterprises operating as parent company subsidiary:
Trang 14Counting to 2013, the MOD had 23 enterprises operating as parent company subsidiary. There are 1 economic group, 14 Corporations and 8 companies operating as parent company subsidiary.
According to the statistic of Economics Department MOD, since
2010, the average annual revenue of enterprises operating as parent company subsidiary increases by 12%, profit increases 16%, submitting the state budget up 13%. However, the operation of these enterprises have some existing problems: scale and efficiency of production and business among enterprises still have significant differences, the scale of enterprises
on different sector has great disparity, there are some parts of enterprises which have complicated financial situation, and high risks…
2.1.2 Characteristic of the operating organization and managing organization at enterprises under the model of parent company subsidiary of the Ministry of Defense
Enterprises operate in many sectors as petroleum, construction, telecommunication, rubber, textile, eximporting, seaport exploitation. The operation of enterprises focuses on 3 groups: Production, construction and service commerce
Within the scope of thesis, the author shall research deeply in the model of organization of accounting work at Viettel telecom group and some typical Corporations operating as parent company subsidiary under the MOD The model of parent company subsidiary at these enterprises operated as 2 types: Vertical link and horizontal link.
Characteristic of managing organization of some typical enterprises operating under the model of parent company subsidiary of the MOD.
* At Viettel telecom group
* At Defense Economic Technical Industry Corporation (GAET). 2.1.3 Factors influence the organization of accounting work at enterprises operating under the model of parent company subsidiary of the Ministry of Defense
2.1.3.1. Internal factors
Characteristics of business environment: The business environment is
Trang 15quite complicated due to the development trend to diversify business lines, business sectors, and to expand market and it is also because of specific characteristics of army enterprises.
Characteristics of managing organization: It is requested to ensure the promotion of management apparatus’ power, on the other side to ensure the promotion of managing function on politics.
Qualifications of accounting staff: Enterprises always focus on training highly qualified finance accounting officers. Besides, they are soldiers who are disciplined, decisive, thorough and fast at work. Therefore the effectiveness of accounting work in these enterprises is quite high
Level of IT application: The army enterprises operate in the national security and defense sector are attached special importance to invest on the science and technology The IT application in accounting work of these units is quite synchronous, frequently innovated to facilitate to save time and labor in accounting work
2.1.3.2. External factors
Legal environment of accounting
* Stage before 2003
The ordinance on accounting Statistics was issued under the Order No.06CT/HDNN on 10th/5/1988 is the highest legal document which is still effective
During this stage, Vietnam accounting system and series of decisions on accounting standards was issued
* Stage from 2003 up to now
Accounting Law (Law no.03/2003/QH11) came into effect since 01st
January 2004, replaced the ordinance on accounting and statistics.
During this stage, series of decisions of Financial Department on Vietnam accounting standards which episodes 3, 4, 5 were issued along with guiding Circular for implementation
In 2015, applied accounting regime issued in accordance with Circular 200/2014/TTBTC, dated on 22 December 2014
Development trend of enterprises operates under the model of parent