



































Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
AAEReAccounting revenue in Vietnam
Typology: Essays (university)
1 / 43
This page cannot be seen from the preview
Don't miss anything!
Society 5.0, a super-smart society, is made up of IoT, big data, artificial intelligence (AI), robot, is going into an early stage and pervaded in people’s lives. This makes enterprises face a range of opportunities and challenges in the race for technology and speed. How to reach the fastest rotation speed, apply the modern technologies, win the marketing competition, understand customer desires and trends are the keys to maximize sales revenue. Revenue is at the heart of all business performance However, to enhance profit, manager also need to focus on revenue management, calculating business operation result, controlling investment projects effectively such as what products are manufacture, what industry should participate and so on. As a result, accounting for revenue plays a vital role in financial management, analyzing, evaluating, deciding action projects. Within the scope of this assignment, I would like to show about The accounting for revenue in Vietnam (Profit Organization) The assignment encompasses:
1.1.2. The characteristic of revenue
which occur infrequently that may be brought about by the subjective or objective business (Article 3. Accounting standard No. 14 - "Turnover and other income) o Revenues from liquidation of fixed assets o Customers fines for contract violation o Taxes refundable by the State Budget o Income from gifts, donation is cash or in kind of goods by organizations or individual to enterprises
- In addition, depending on each specific business, the revenue can be divided by consumption items, by places of consumption, by number of consumption such as wholesale sales, retail sales and so on **1.1.4. The valuation of revenue
VAT invoices, Sales invoices The list of consignments sold Payment for agent goods, consignment Sales contracts Payment documents such as receipt, credit note, and so on Cash register receipts Computer-generated receipts Other relevant documents such as Goods issue document, Goods received note… 1.2.2. Accounting rules for revenue
If products, goods or services sold from the previous period, discounted for sales, returned in the next period, but incurred prior to the issuance of financial statements, accountants must consider them as an adjustment event incurred after the dated of balance sheet and record decrease turnovers in financial statement of the reporting period Where products, goods and services must be discounted for sales, returned after the release of financial statements, enterprises must record decrease turnovers of the incurred period
accounted for in account 511 " Turnovers from selling goods and providing services " In case of dispatching goods for promotion, advertising, but customers only receive promotional, advertising goods together with other conditions, such as buying products, goods (eg, buy 2 get 1 free....), accountants must allocate the received sum to calculate the turnovers for promotional items, the value of promotional goods is calculated on the cost of goods sold (in this case the nature of the transaction is discount of goods sold ) In case the enterprise has turnovers from sales and services provision in foreign currency, then the turnovers must be converted into accounting currency unit under exchange rates of real transactions at the time of economic transactions. In case of receipt of advance payments of customers in foreign currency, turnovers corresponding to the advance sum shall be converted into accounting currency unit under the exchange rate of real transactions at the time of receipt of advance
- In case goods are consigned to agencies for sales at exact prices and receiving commission, the turnovers shall be sales commission earned by the enterprises - For operations of authorization service of export, the turnovers are authorization fees of units earned - In case units only process materials, goods, then turnovers are actual amount of money earned, not including values of materials, goods processed - In case sales on credit, sales on installments, then turnovers are determined according to cash price - Principle on recording the turnovers for the sale of goods and provisions of services under the programs for traditional customers - Characteristics of the sale of goods and provisions of services under the programs for traditional customers: Transactions under the program for traditional customers must simultaneously satisfy all of the following conditions: When purchasing goods and services, customers built enough points to reach the prescribed points shall receive an amount of goods and services for free or discounted price The seller shall determine the fair value of goods and services provided free or discounted amount for the buyer when the buyer meets the conditions of the program (built enough points) The program must be limited to a specific and clear time, if the prescribed time limit is over, the customers have not met the conditions set out, the seller shall no longer be obliged to supply goods services for free or discount for buyers (number of points accumulated by buyers is invalid) Upon receipt of the goods or services for free or discounted prices, buyers are subtracted the cumulative points as prescribed
by the program (exchange cumulative points for goods, services or discount upon purchase) The provision of goods or services for free or discount for buyers when they reach enough bonus points may be made by the seller or a third party under the provisions of the program
- Accounting Principles At the time of sale of goods or provisions of service, the seller shall determine separately the fair value of goods and services provided free or discounted amount for the buyer when the buyer meets the conditions of the program The turnovers recorded the total amount that needs to be received or has been received minus the fair value of goods and services provided free or discounts to buyers. The value of goods and services provided free or discounts for buyers are recorded an unearned turnover. If at the expiry of the program, the buyer does not qualify under the prescribed conditions and is not entitled to free goods, services or discounts, the unearned turnover is transferred to the turnover of sales, provisions of services When buyers meet the conditions as stipulated by the program, handling of unearned turnovers shall be done as follows: Where sellers directly provide goods or services for free or discount for buyers: The unearned turnovers corresponding to the fair value of some goods and services provided free or discount for buyers are recorded a turnovers from selling goods, providing services when buyers have received goods or services for free or been discounted as prescribed by the program Where the third party is obliged to provide goods or services free or discount for the buyer: If the contract between the
(i) Bonuses are determined reliably. (ii) Bonuses are determined reliably Another payment that contractor receives from customer or another party to compensate for expenses not included in contract prices. For example, delays caused by customers; errors in technical or design indicators, and disputes on changes in carrying out the contract. Determination of turnover increase from these payments also depend on many uncertain factors, and usually depend on results of many negotiations. Thus, other payments are charged to turnover only if: Negotiation obtained the solution that the customer accept to compensate Other payments are accepted by customers and can be determined reliably
- Recording turnovers of construction contract will comply with one of two conditions:
entitled to payment basing on the progress, when achieved results of construction contract are estimated reliably, then turnover from the construction contract is recorded proportionally to part of works finished, determined by contractors on the date of financial statement without depending on the bills under the progress made or not and the amount on the bills
entitled to payment basing on value of volume achieved, when achieved results of construction contract are estimated reliably and confirmed by customers, then revenues and expenditures related to the contract recorded in proportion to the completed work confirmed by the customer in period are recorded in the bills set up
- In case achieved results of construction contract can’t be estimated reliably, then
contract that the repayment is relatively certain
had been incurred
- In case of assets lease, lessors received rent in advance for many periods, then recording turnovers shall be made under the principle of allocating the rent received in advance in accordance with the lease period - Where the rental period is 90% of the useful life of the assets, enterprises may choose method of recording turnovers once for the entire rental amount received in advance if the following conditions are met simultaneously
has no obligation to repay the amount received in advance in all cases and in all forms
of the total lease amount expected to get under the contract during the lease term and the lessee must pay the entire amount of lease within 12 months from the beginning of the lease
leased asset are transferred to the lessee
advance in this case shall be explain in the financial statements on The different in turnover and profits, if being recorded in method of gradual allocation under the lease time
Sum received from the sale of testing products Financial income Other income
prevention), turnovers for shall products, goods sold and replacement products, goods, equipment must be allocated. The value of the replacement products, goods, equipment is recorded in cost of goods sold o For transactions from which obligations of the seller arising at the current time and in the future, turnovers must be allocated according to the fair value of each obligation and are recorded when the obligations are fulfilled
Credit Dispatched cash, foreign currency or monetary gold Cash, foreign currency or monetary gold in deficit detected under verification Exchange rate differences due to re-evaluation of foreign currency balance at the reporting time (if foreign currency rate falls against VND) Differences due to re-evaluation of monetary gold at the reporting time Debit Balance Inventoried cash, foreign currency or monetary gold at the reporting time Account 111 – Cash, comprises 3 sub-accounts: Account 1111 – VND : reflecting revenues, expenses, balance in VND of the cash fund Account 1112 – Foreign currencies : reflecting revenues, expenses, exchange rate differences and foreign currency balance of cash fund which is converted into VND Account 1113 – Monetary gold reflecting the fluctuation and value of monetary gold of the enterprise’s fund
- Account 131 – Account receivable
receivables of customers from goods, investment properties, fixed assets, financial investment or services. This account is also used to record receivables from contractors and contract awarder related to finished infrastructure development. This account is not used to record immediate cash
investment property, fixed assets, services or financial investments
currency rates rise against VND)
lodge complaints
currency rates fall against VND)
This account may have credit balance Credit balance records amounts of advance or collected amounts which are larger than trade receivables according to every specific entity. When preparing balance sheet, it is required to record specific balance according to every receivable of this account to items "Asset" and "Equity"
- Account 157 - Goods on consignment Goods on consignment which are recorded to account 157 shall be accounted according to original prices as prescribed accounting standard “Inventory”. The account 157 “Goods on consignment” only records costs of goods or finished goods sent to customers or agents (consignees), services rendered transferred to customers under business contracts or orders by the enterprise (consignor), those goods are not determined as 'sold' (the goods or services on consignment are not recorded to sales revenues during a period) Debit: Cost of goods or finished goods on consignment sent to customers, agent; or dependent accounting units Cost of services rendered to customers, but they are not sold