CHAPTER 1 : OVERVIEW OF FINANCIAL ACCOUNTING 1.

Lch s hnh thnh v pht trin ca Hi ng Chun mc K ton Quc t 1/4/2001, Hi ng Chun mc K ton Quc t ( International

Accounting Standards Board IASB ) c thnh lp. IASB includes a variety of backgrounds with a mix of auditors,

preparers of financial statements, users of financial statements and an academic. The IASBs predecessor body, the IASC, had found in 1973 and issued

41 International Accounting Standards ( IASs ) ==> Tin thn ca IASB l y ban Chun mc K ton quc t ( IASC ) thnh lp nm 1973 thng qua 1 tha thun bi cc t chc ngh nghip. 41 IASs c rt nhiu version khc nhau. Later, the IASB adopted all of these standards and issues its own

International Financial Reporting Standards ( IFRSs ). 2. S khc bit gia IAS v IFRS

IFRS ( Chun mc BCTC quc t ) tp trung vo IAS ( Chun mc K ton ngi s dng thng tin, bi cnh gii ca K quc t ) cp n k thut ton l thng tin c ch cho ngi s dng. H hch ton, quy trnh x l khng quan tm n k thut hch ton, min l cng vic n lm theo ng nguyn tc, chun mc l c.

3. S lc v Chun mc K ton Anh - M - Vit Nam Anh, EU p dng IAS/ IFRS. M s dng US GAAP ( General Accepted Accounting Principles Cc nguyn tc K ton c p dng rng ri ). As many US and foreign companies operate and raise capital in more than one country, US GAAP is moving toward Global Accounting Standards. Vit Nam bn cnh vic ban hnh VAS, MOF cn ban hnh cc ngh nh, thng t hng dn ( circular, decree ) c xem nh l Vietnamse GAAP. Cc cng ty K ton, Kim ton a s p dng cc ngh nh, thng t hng dn, ch khng cn n chun mc. Ch c nhng cng ty ln, to mm, c ci vi B Ti chnh p dng Chun mc hay Ngh nh/ Thng t c li cho khch hng ca n. 4. Framework ( Khun mu l thuyt ) Khun mu l thuyt a ra cc hng dn lin quan n BCTC nhm p ng nhu cu thng tin chung ca mi i tng s dng ( khng th c cc thng tin phc v cho nhu cu ring ca tng i tng ). BCTC theo mc ch c th nh bng co bch, bo co theo mc ch thu nm ngoi phm vi hng dn ca Framework.

 Framework l nn tng ca cc Chun mc K ton. Framework xy dng nhng gi nh ( Assumption ), t nhng gi nh ny th IAS/ IFRS mi ng. Trong nhng tnh hung m Chun mc K ton khng cp, ta phi quay v xem xt Framework.

5. Mc tiu ca BCTC BCTC c lp vi cc mc tiu ch yu l cung cp thng tin v:

Tnh hnh ti chnh

Kt qu hot ng ca n v

S thay i tnh hnh ti chnh

Ngun lc m n v kim sot C cu ti chnh Kh nng thanh khon Kh nng thch ng ==> Statement of Financial Position

Kh nng sinh li ca doanh nghip ==> Statement of Comprehensive Income

Cc hot ng kinh doanh, u

t, ti chnh. Kh nng to ra tin v cc khon tng ==> ng Cash tin Flow

Statement

6. So snh BCTC ca nc ngoi & Vit Nam Bng Cn i k ton Vit Nam - Trnh by theo tnh thanh khon gim dn ( Liquidity descending ) - C th phn bit r rng gia ti sn ngn hn v ti sn di hn hoc trnh - Distinguish Current Assets & Non Current Assets. by trn li theo 1 trt t nht nh ( tnh thanh khon tng hoc gim ). Nu khng phn bit c ngn hn & di hn th phi thuyt minh trn BCTC. - Ti khon mang s hiu c nh. - Bo co mang tnh mu biu thng nht. - S hiu ti khon ty thuc vo nhu cu qun l ca DN. - Bo co khng mang tnh mu biu thng nht. Bng Cn i k ton nc ngoi - Optional

Ch : Cc ti sn ti chnh sometimes khng phn bit c ngn hn & di hn. V d: Khi ngn hng cho vay 3 nm th y l Long term asset. Nhng 3 thng sau khch hng tr n hoc ngn hng bn n cho factoring comoanies th y l Short term asset. Goodwill ( Li th thng mi ) ca cng ty khc khi hp nht xut hin Statement of Financial Position ca cng ty mnh. 4

Bo co kt qu kinh doanh Vit Nam

Profit and Loss Accounts ( phn loi chi ph theo chc nng ) Comprehensive Income ( C. I )

1. Doanh thu bn hng v cung cp dch v 2. Cc khon gim tr doanh thu 3. Doanh thu thun v bn hng v cung cp dch v 4. Gi vn hng bn 5. Li nhun gp 6. Doanh thu hot ng ti chnh 7. Chi ph ti chnh - Trong : Chi ph li vay 8. Chi ph bn hng 9. Chi ph qun l doanh nghip 10. Li nhun thun t HKD 11. Thu nhp khc 12. Chi ph khc 13. Li nhun khc 14. Tng li nhun k ton trc thu 15. Chi ph thu TNDN hin hnh 16. Chi ph thu TNDN hon li 17. Li nhun sau thu TNDN 18. Li c bn trn c phiu

Sales Revenue Cost of Goods Sold Gross Profit ( Margin ) Total Operating Expenses General & Administrative Expenses Selling Expenses .........

Operating Income = Gross Profit Total Operating Expenses Income from financial activities Expense for financial activities Extraordinary income Extraordinary expense Earning before tax Income tax expense Income From Continuing Operations Loss ( Gain ) on Discontinued Operations Net Income

Other Comprehensive Income ( O.C.I ) Total Comprehensive Income ( T.C.I ) Earnings Per Share

7. Characteristics of accounting information Cc c im cht lng l cc thuc tnh cn thit c thng tin hu ch trnh by trn BCTC. Framework a ra 4 c im cht lng ch yu, l tnh ng tin cy, tnh thch hp, tnh c th hiu c v tnh c th so snh c. 7.1. Tnh ng tin cy ( Reliablity )

Thng tin t cht lng ng tin cy khi chng khng c cc sai st hay thin lch trng yu v c trnh by trung thc.

t cht lng ng tin cy, thng tin cn : Represent faithfully the results and financial position of the entity ( Trnh by trung thc kt qu, tnh hnh ti chnh ca n v ) Pudence ( Thn trng ) L vic cn nhc trong cc iu kin khng chc chn. Nguyn tc thn trng khng cho php nh gi cao ( overstate ) ti sn v thu nhp hay nh gi thp ( understate ) n phi tr v chi ph. Not have material errors ( Khng c sai lch trng yu, tc l c th vn cn c nhng sai lch khng trng yu ). Neutrality ( Khch quan ) Thng tin trn BCTC phi khch quan, khng b xuyn tc. Thng tin khng c trnh by nhm t c 1 kt qu c xc nh trc. Susbstance over form ( Tn trng ni dung hn hnh thc )

Completeness in all material respects ( y trn nhng kha cnh trng yu ) 6

Ch : Vic tn trng ni dung hn hnh thc ( Susbstance over form ) ngha l cc nghip v hay s kin phi c tnh ton v trnh by theo ni dung v tnh cht kinh t ch khng phi n thun theo hnh thc php l. Ni dung v hnh thc php l khng phi lc no cng nht qun. V d: Nghip v thu ti chnh ( Financial Leasing ) ghi nhn nghip v thu ti chnh th phi tha mn 1 trong 3 iu kin sau: Hin gi cc khon tin thu ln hn hoc bng gi tr th trng hoc gi tr hp l ca ti sn cho thu. Khi chm dt hp ng, bn cho thu chuyn quyn s hu cho bn i thu vi gi thp hn nhiu ( much lower ) so vi gi tr trng lc . Thi gian thu ( leasing term ) chim trn 2/ 3 thi gian s dng hu ch ( useful line ). V mt hnh thc ( legal ), ti sn cho thu ti chnh thuc quyn s hu ca ngn hng ( ngn hng gi giy t ). V mt bn cht th y l Purchase with loan nn DN ghi nhn y l ti sn ca mnh trn Bng Cn i k ton v tnh khu hao bnh thng. Ti sao DN khng i vay ngn hng mua ti sn? L do l ngn hng mun nm ng chui. Nu ngn hng cho DN vay tin mua ti sn gi tr ln trong thi gian di, th quyn s hu ti sn thuc v DN, ngn hng khng chc chn s thu c vn. Cn nu ngn hng mua ti sn v, nm gi quyn s hu ti sn ri cho DN thu li th quyn s hu ti sn thuc v ngn hng. Do xt v bn cht, y cng ch l hot ng mua sm ti sn ca DN bng ngun vn vay. Khi ri ro v li ch ca ti sn thuc v DN nn n v ghi nhn y l ti sn ca mnh 7

7.2.

Tnh thch hp ( Relevance )

Thng tin cn phi thch hp i vi nhu cu ra quyt nh ca ngi s dng. Thng tin thch hp khi chng nh hng n cc quyt nh ca ngi s dng, gip h nh gi cc s kin qu kh, hin ti v tng lai hoc xc nh hay iu chnh cc nh gi qu kh ca h. Tch thch hp ca thng tin c nh gi trn 2 kha cnh: Timeliness ( ng lc ) & Materiality ( Trng yu )

7.3.

Tnh c th hiu c ( Understanability )

Thng tin cung cp trn BCTC phi c th hiu c. Ngi lp BCTC gi nh rng ngi s dng c 1 kin thc nht nh v kinh doanh, cc hot ng kinh t v k ton. Tuy nhin, cc thng tin phc tp, qu kh hiu i vi ngi s dng nhng thch hp i vi nhu cu ra quyt nh kinh t ca h phi c trnh by trn BCTC.

7.4.

Tnh c th so snh c ( Comparability )

Ngi s dng BCTC phi c th so snh cc BCTC ca : Mt n v trong mt khong thi gian nhm xc nh xu hng v tnh hnh ti chnh v kt qu hot ng. Cc n v khc nhau nhm nh gi tnh hnh ti chnh, kt qu hot ng v s thay i tnh hnh ti chnh ca cc bn. 8

Ch :

Vic p dng Nguyn tc nht qun ( Consistency ) gia k ny

( current period ) & k trc ( prior period ) nhm to ra 1 thng tin c th so snh c gia k ny v k trc.

IAS/ IFRS quy nh DN thay i chnh sch k ton ( accounting pilicy ) khi There is a significant change in the nature of the operations or a review of the financial statements presentation indicates a more appropriate presentation. Khi thay i chnh sch k ton, DN phi declare ( tuyn b cng khai ) & nh gi trong Thuyt minh BCTC s thay i ny lm li nhun nm nay b nh hng nh th no.

Bi tp: Nhng trng hp sau ang p dng nhng gi nh, nguyn tc no ? 1. Revenue is recognized only after certain criteria are satisfied. 2. Cause and effect relationship between revenue and expense. 3. The basis for measurement of many assets and liabilities. 4. All economic events can be identified with a particular entity. 5. The benefits of providing accounting information should exceed the cost of doing so. 6. Assumes the entity will continue indefinitely. 7. A common denominator is the dollar. 8. The life of an enterprise can be divided into artificial time periods. 9

P N 1. Realization concept ( Nguyn tc ghi nhn doanh thu ): The earnings process is judged to be complete or virtually complete. There is reasonable certainly as to the collectibility of the asset to be received.

2. Matching principle : expenses are recorded in the same period in which the revenues they helped produce are recorded ( Chi ph phi ph hp vi doanh thu, chi ph do doanh thu quyt nh ).

3. C s o lng gi tr ti sn & n phi tr: Historical principle. Nguyn tc gi gc c lp trn gi nh hot ng lin tc ( n v mua ti sn v sn xut, kinh doanh, khng phi bn nn h s dng gi gc, khng quan tm n gi tr trng ).

4. Assumption Entity Concept - n v kinh doanh phi c lp ( seperate ) vi ch s hu ca n . Tc l k ton cung cp cc thng tin v ti sn, n phi tr ca entity, ch khng cng b cc thng tin v ch s hu DN. 5. Materiality principle ( ch cung cp nhng thng tin m li ch ca vic cung cp nhng thng tin ny phi ln hn chi ph ca vic lm ny ).

10

6. Going concern assumption ( Hot ng lin tc ) ==> gi nh thc th, php nhn s tip tc hot ng trong khong thi gian v hn nh. 7. Money measurement concept : accounts will only deal with those items to which a monetary value can be attributed ==> ghi chp, o lng, theo di gi tr bng tin. 8. Accounting period assumption ( Gi nh k k ton ). Nu DN hot ng lin tc, gi nh c th chia ra nhiu k bo co lp BCTC, xem xt hiu qu hot ng kinh doanh. Nu my thng na DN sp ng ca, ph sn th phi trnh by thc trng hin ti ca cng ty theo gi th trng.

Ch v nguyn tc ph hp: Chi ph phi ph hp vi doanh thu, ch khng phi doanh thu ph hp vi chi ph.

Xt v d sau: nm 2010 DN thc hin chin dch qung co, khuyn mi nhm gia tng sc tiu th thnh phm, nhng n nm 2011 th cng ty mi bn c hng. Trong trng hp ny th chi ph qung co, khuyn mi vn c ghi nhn vo chi ph bn hng nm 2010. V y l chi ph thi k ( periodic cost ). DN hi sinh s ph hp gia doanh thu v chi ph nhm mc ch g ?

11

8. Cc yu t ca Bo co ti chnh 8.1. Definition of cc yu t BCTC Ti sn l ngun lc do n v kim sot, l kt qu ca s kin qu kh v n v d tnh thu c li ch kinh t trong tng lai t ti sn. N phi tr l ngha v hin ti ca n v, pht sinh t cc s kin qu kh, v n v s phi s dng cc ngun lc thanh ton cho cc khon n ny. Vn ch s hu l phn gi tr cn li trong ti sn ca n v sau khi tr i tt c cc khon n phi tr. Thu nhp l s gia tng li ch kinh t trong k k ton di hnh thc tng ti sn hoc gim n phi tr lm tng vn ch s hu, nhng khng bao gm cc khon ng gp ca ngi tham gia gp vn. Chi ph l s st gim li ch kinh t trong k k ton di hnh thc gim ti sn hoc tng n phi tr lm gim vn ch s hu, nhng khng bao gm cc khon phn phi vn ca ngi tham gia gp vn. 8.2. Recognition of cc yu t BCTC Ghi nhn l 1 tin trnh a vo BCTC 1 khon mc tha mn nh ngha v iu kin ghi nhn c xc lp. Mt khon mc p ng nh ngha ca 1 yu t BCTC ( ti sn, n phi tr, vn ch s hu, thu nhp hay chi ph ) cn c ghi nhn nu tha mn ng thi cc iu kin sau: Kh nng chc chn v cc khon li ch kinh t lin quan n khon mc s thu c hay s dng bi n v. Khon mc c gi gc hay gi tr c th xc nh ng tin cy.

12

Ch : Trong nhiu trng hp, gi gc hay gi tr ca mt khon mc cn phi c tnh. Vic s dng cc c tnh hp l l phn thit yu ca tin trnh lp BCTC v khng lm gim tnh ng tin cy ca BCTC. Mt khon mc khng p ng c iu kin ghi nhn ti 1 thi im c th ny li c th tiu chun ghi nhn ti 1 thi im sau . 8.3. Measurements of cc yu t BCTC

o lng l vic xc nh gi tr tin t m 1 yu t c ghi nhn trn BCTC. Initial Value ( Ghi nhn ban u ) ==> Ti sn c ghi nhn theo s tin / cc khon tng ng tin tr, hoc gi tr hp l c xem xt c ti sn ti thi im ghi nhn ( Historical cost ). Ch : ch c Irrecoverable Tax mi c cng vo gi gc, cn Recoverable Tax th khng c tnh vo gi ph lch s. Subsequent Value ( Sau ghi nhn ban u ) Cc c s o lng c s dng bao gm: Gi gc Gi tr hin ti Gi tr c th thc hin Hin gi 8.4. Presentation / Classification / Disclosure

13

9. The Accounting Process ( Quy trnh k ton ) Books of prime entry ( Journal )

Business transactions

Source Documents

Accountant

Invoice, Receipt Potation/ Listed price ( giy bo gi ) Order

Sales Order : khch hng lp Purchase Order : cng ty lp i mua hng Goods delivery note ( Phiu xut kho ) Goods dispatch note ( Phiu nhp kho ) Payment Order ( phiu chi, lnh chi ) , Standing Order Credit Note/ Debit Note

Khi doanh nghip mua hng t nh cung cp, nu pht hin hng b h hng, li, km phm cht th DN gi Debit Note cho nh cung cp yu cu tr li hng v khu tr n phi tr. Nu nh cung cp ng , h s gi Credit Note cho DN, y l cn c DN ghi gim Payable ( N 331 / C 152 ). Khi ngi mua hng overpayment s tin thanh ton, ngi mua s gi Debit Note yu cu thu li tin hoc khu tr tin hng ln sau. Nu chp nhn, ngi bn s gi Credit Note.

Remittance advice 1 cng ty mua hng n 3 4 chuyn hng, khi cng ty tr tin hng th s fill in Remittance advice thng bo s tin tr cho ha n no,

14

ngy no ngi bn kim sot ha n no c thanh ton v mi ha n c 1 credit period khc nhau. Nhng nghip v no thng Books of prime entry ( Journal ) - General Journal - Specific Journal Total & Record Lp S Tng hp ( G/L ) ring General Ledger ( Nominal Ledger - T account ) cho tt c ti khon tng hp. Ngoi G/L, n v cn lp thm Personal Accounts ( S chi tit ). Balancing Trial Balance ( Bng Cn i s pht sinh ) xuyn xy ra th chng ta m 1 s theo di ring, l Specific Journal.

Adjustments ( thc hin adjusting entries trn Journal ) S d Ti khon doanh thu, chi ph vn > 0. Post adjusting trial balance

Kt chuyn doanh thu, chi ph Closing Entry trn Journal Dr Income Summary / Cr Expense Dr Revenue / Cr Income Summary Post closing entries trial balance 15 Financial statement

( S d DT, CP = 0 ) M t v Journal ( S Nht k ) Specific Journal thng bao gm cc s sau: General Journal Theo Cash Book ( ghi chp Cash Transactions , cc hot Transactions cn li ng lin quan n thu chi tin ). V d: Petty Cash Book Khu hao Sales Day Book ( ghi chp Credit Transactions , cc D phng cui k hot ng bn hng tr chm ). Adjusting entries Purchase Day Book ( mua hng tr chm ). Closing entries Sales Return Day Book ( theo di hng bn b tr li ) ...... di Daily

Nu nh Journal l 1 quyn s vit tt c ti khon, n c rt nhiu trang, nn phi nh s trang cho Journal. Cn G/L th theo di ring cho tng ti khon. Bn cnh G/L, n v cn m cc s chi tit theo di cho tng i tng. V d: A/R cho tng i tng khch hng A, B, C....

1 nghip v pht sinh phi c post ln ng thi S tng hp v S chi tit. V d: Bn hng cho khch hng A cha thu tin 1000 ng. 16

Double Entry Debit Accounts Receivable ( Customer A ) : 1000 Credit Sales Revenue : 1000 Khon A/R $ 1000 phi c post 2 ln ln S tng hp v S chi tit.

Nhn vin gi S tng hp v nhn vin gi S chi tit phi l 2 ngi khc nhau ( nguyn tc bt kim nhim ). Cui k, i chiu s liu trn ti khon tng hp v cc ti khon chi tit m cho TK tng hp phi bng nhau. M phng v Journal JOURNAL Date 2008 Description Expense Cash Post Ref. ( Account Number ) 532 111 Page 1 Dr X X Cr

Jan.

JOURNAL Date 2008 Description Cash Revenue ...... Post Ref. 111 411

Page 2 Dr Y Y Cr

Jan.

15

17

 M phng v G/L LEDGER ACCOUNT Cash Date 2008 ACCOUNT NO. 111 Dr/ Cr

Description

Post Ref. ( trang no

Dr

Cr

Balance

Jan.

Sold merchandise

trn

Journal

==> i chiu )

3500

13

Purchase equipment ....... Beginning balance

J1 ( Journal page 1 )

800

Total

Total

S liu t G/L sau khi i chiu vi Personal Account, nu khp s c post ln Trial Balance. Trial Balance ca nc ngoi ging nh Bng cn i s pht sinh ca VN, ngoi tr : Trial Balance ch ghi s d cui k Bng cn i s pht sinh ca VN theo di s d u k, s pht sinh trong k v s d cui k. 18

 M phng v Trial Balance Trial Balance Dr Cash Inventory ..... Total X X Cr

Account name

Account number

M phng v Bng cn i s pht sinh ca VN S hiu Tn TK TK Tin mt ..... Tng cng X X Y Y Z Z 111 Dr Cr Dr Cr Dr Cr S d u k S pht sinh trong k S d cui k

Tc dng ca Trial Balace / Bng cn i s pht sinh ==> gip pht hin c nhng li sau y : Transposition ( o s ) Casting Errors ( Cng sai ) Errors of extraction 19

 Two entries on the same side ( 1 bt ton ch c Dr, khng c Cr hoc ngc li ) Errors on bringing forward balance ( kt chuyn s d cui k trc sang s d y k ny sai ). Tuy nhin, c nhng li m Trial Balace / Bng cn i s pht sinh khng th pht hin c: Errors of commission V d: nh khon ng Dr Utilities Expense : 100 Dr Rent Expense : 50 Cr Cash : 150 nh khon sai Dr Utilities Expense : 130 Dr Rent Expense : 20 Cr Cash : 150

Compensating errors ( Sai b tr ) Errors of principle ( Sai nguyn tc k ton ) V d: nh khon ng Dr Expense : 100 Cr Cash : 100 nh khon sai Dr Fixed Assets : 100 Cr Cash : 100

Complete reversal of entries ( o bt ton ) 20

 Errors of omission ( B st nghip v, tc l c Source Documents, nhng k ton khng hch ton ) Errors of original entry ( Sai ngay t nghip v u tin, tc l nhp sai s liu gia Source Documents v s sch ). Sau khi Trial Balance cn bng, cui thng, k ton thc hin Adjusting entries. C 4 loi Adjusting entries:

Asset 1. Dr Depreciation Expense Cr Accumulated Depreciation 2. Dr Expense Cr Provision for bad debts Expense ( doubtful accounts ) 3. iu chnh gim gi tr ti sn 4. Dr Expense Cr Prepayments 1. Dr Accounts Receivable

Liability 1. Dr Expense Cr Accruals ( cc ngha v DN phi thanh ton trong tng lai : Salary, Utility, Rent, Insurance payable ) 2. iu chnh tng li sut tri phiu pht hnh so vi li sut th trng.

Dr 3387 ( Doanh thu nhn Cr Revenue Revenue ( Doanh thu c tnh ) Cr Revenue 2. iu chnh tng gi tr ti sn 21 trc )

 Nh vy, Adjusting entries s dng 2 nguyn tc : Accure & Defer. Accure : cash will be received or paid in the future V d: Chi ph phi tr ( 335 ) hoc Doanh thu c tnh theo hp ng xy dng. Defer : cash was received or paid in the past V d: Doanh thu nhn trc ( TK 3387 ) hoc Chi ph tr trc ( TK 142, 242 ).

Closing Entries ( Bt ton kha s ) Sau khi thc hin Adjusting entries th current balance ca Revenue v Expense > 0, k ton thc hin bt ton kha s kt chuyn doanh thu, chi ph sang 911 xc nh Net Income (khi Ending Balance ca Revenue v Expense = 0) Kt chuyn Chi ph Kt chuyn Doanh thu Dr Revenue Dr Income Summary ( Income Identification ) Cr Income Summary Cr Expense ( Profit & Loss account )

T Net Income kt chuyn sang Retained Earning. Net Income > 0 Dr Income Summary ( Income Identification ) Cr Retained Earning Net Income < 0 Dr Retained Earning Cr Income Summary 22

 S lc v Chart of Accounts ( H thng ti khon ) H thng ti khon Vit Nam H thng ti khon nc ngoi

H thng k ton ca nc ngoi ch s dng cho mc ch k ton, cn nhng mc ch khc th c 1 h thng H thng k ton ca Vit Nam phi gnh nhiu mc ch khc nhau : Mc ch k ton Mc ch thng k Mc ch thu Cc TK ca Vit Nam c s hiu TK nht nh, DN phi hch ton vo ng TK thun tin cho vic tng hp, x l s liu. x l khc. Cc TK ca nc ngoi khng c s hiu TK nht nh. Vic t s hiu TK nh th no l ty thuc vo DN, min l n p ng iu kin sau : Asset : TK 101 Liability : TK 200 Equity : TK 300 Revenue : TK 400 Expense : TK 500 TK 199 TK 299 TK 399 TK 499 TK 599

23

CHAPTER 2 : CASH AND CASH RECEIVABLES

Cash on hand 1. CASH Cash in bank

Currency and Coins Balances in checking/ current accounts Items acceptable for deposit in these accounts ( checks, money orders received from customers )

These forms of cash represent amounts readily available to pay off debt or to use in operations without any legal or contractual restriction.

Some examples about restricted cash ( cash is restricted in some way and not available for current use. It is reported as investments and funds or other assets ) Sc bo chi => ngn hng phong ta ti khon tin gi thanh ton ca payer m bo ti khon ca payer tin chi tr cho payee. M L/C, k qu, k cc. Compensating balance ( s d ti thiu duy tr trong ti khon ) The borrower us asked to maintain a specified balance in a low-interest or noninterest-bearing account at the bank to compensate the bank for granting the loan or extending the line of credit. V d: vay ngn hng $15000, ngn hng yu cu phi duy tr lng tin ti thiu trong ti khon l $ 1000 ==> Cash in bank : $ 14000. 24

2. CASH EQUIVALENTS

The investments have a maturity date no longer than three months from the date of purchase. For instance: treasury bills, commercial paper.

Xt 2 tnh hung sau y: a. Bn ang gi 1 tri phiu mua cch y 5 nm, cn 1 thng na mi ti hn. y khng phi l Cash Equivalent ( v bn khng mun bn n u, chi ph c hi ca vic bn tri phiu ny l tin li cao m bn khng hng c ). b. Bn ang gi 1 tri phiu mua cch y 5 ngy, cn 1 thng na l ti hn. y l Cash Equivalent.

ghi nhn Cash Equivalent l phi xem xt loi giy t c gi c d bn khng v bn c mun bn n khng.

3.

PETTY CASH

nc ngoi, h giao dch qua ti khon ngn hng rt nhiu, h ch gi 1

t tin mt ( khong vi trm USD ) to pay for low-cost and miscellaneous items such as postage, office supplies, delivery charges and entertainment expenses.

Vit Nam khng c petty cash v tin mt ti qu rt nhiu.

25

Quy trnh x l Petty Cash

Description 1. Ngi i din theo php lut ca enterprise writes a check to the custodian. A petty cash fund is established.

Double Entry

Dr Petty Cash Cr Cash in bank

2. During the month of the first period

No entries ( chi ph nh xu, khng trng yu ) Dr Expense ( S tin trn chng t )

3. At the end of the month, custodian lp Bng k v gi km cc chng t cho K ton cng ty lp bt ton replenished.

Dr Under/ Over petty cash Cr Cash in bank ( S tin cn chuyn vo Petty Cash n constant ) Dr Expense ( S tin trn chng t ) Dr Under/ Over petty cash Cr Cash in bank ( S tin cn chuyn vo Petty Cash n constant )

4. Nhng thng tip theo, vo cui thng, cn c vo Bng k, cc chng t do custodian cung cp, sau khi owener issued a new check, K ton nh khon.

Period u tin ( khi establish petty cash ) th lp 2 bt ton 1 & 2, nhng perios tip theo ch cn lp bt ton 4. 26

Example: On May 1, 2003, the Hawthorne Manufacturing Company established a $200 petty cash fund. John Ringo is designated as the petty cash fund custodian. The fund will be replenished at the end of each month. On May 1, 2003, a check is written for $200 made out to John Ringo, petty cash custodian. During the month of May, John paid bills totaling $160 summarized as follows: Postage Office supplies Delivery charges Entertainment Total $ 40 $ 35 $ 55 $ 30 $ 160

Dr Petty Cash May 1, 2003 Cr Cash in bank During the May 2003 At the end of May, Petty cash tn qu l 40 No entries Dr Expense Cr Cash in bank

: 200 : 200

: 160 : 160

At the end of May, Petty cash tn qu l 30 ( d cha tm ra c nguyn nhn, nhng owner vn phi issue a check worthing $200 )

Dr Expense Dr Under petty cash Cr Cash in bank

: 160 : 10 : 200 30 = 170

27

4.

BANK RECONCILIATION

Vit Nam ly Bank Statement lm chun. Nu s liu tin gi ngn hng

trn S khng khp vi Bank Statement th K ton Vit iu chnh S : N TK 112 C TK 3387 N TK 1381 C TK 112

International Accounting realizes that Differences between the cash book

and bank balance occur due to differences in the timing of recognition of certain transactions and errors. Therefore, they adjust the bank balance and the book balance to the same cash balance. Bank balance Cash book balance Non sufficient-fund cheque Unpresented check ( Cheque outstanding ) ( NSF check / Dishonored check ) Payers account khng tin thanh ton ( permanent difference => ch khi no payer np thm tin vo ti khon ca h ) Unclear lodgement ( not credit / debit to the companys account ) Bank collections ( principal, interest, bank charges ) Standing order / Direct debit + Credit transfer ( Khch hng tr tin trc thi hn, nhn Errors of bank tin c tc, li tin gi ngn hng ) Errors of entity 28

Example 1: Gemma is reconciling her cash book to the bank statement. Her cash balance is $2357 and the balance on her statement is $25 overdrawn. She finds the following differences : - Bank charges of $23 and direct debit totaling $100 have not been posted to the cash book. - There are unpresented check of $324. - She paid in a batch of check two days ago totaling $2503 and these have not yet been credited to her account. - A check she paid in last week for $80 has been dishonoured. What will the reconciled balance be ?

Bank balance -25 324 + 2503 = 2154

Cash book balance 2357 23 100 80 = 2154

The reconciled balance is 2154

Example 2: The Captain Manufacturing Company maintains a general checking account at the Pacific Bank. Pacific Bank provides bank statement and canceled checks once a month. The cutoff date is the last day of the month. The bank statement for the month of May is summarized as follows: Balance, May 1, 2003 Deposits Checks processed Services charges $ 32,120 $ 82,140 ( 78, 433 ) ( 80 ) 29

NSF checks Note payment collected by bank ( includes $ 120 interest ) Balance, May 31, 2003

( 2,187 ) 1120 34, 680

The companys general ledger cash account has a balance of $ 35,276 at the end of May. A review of the company records and the bank statement reveals the following : - Checks not yet deposited totaled $ 2,965 - A deposit of $ 1020 was made on May 31 that was not credited to the companys account until June. - All checks written in April have been processed by the bank. Checks written in May that had not been processed by the bank total $ 5,536. - A check written for $ 1,790 was incorrectly recorded by the company as a $790 disbursement. The check was for payment to a supplier of raw materials. Requirements : Prepare the bank reconciliation.

Bank balance : 34680 Deposits Checks written 2965 + 1020 5536

Cash book balance : 35276 NSF checks Bank collections Errors 2187 1120 790 1790

34680 + 2965 + 1020 5536 = 33,129

80 2187 + 1120 1790 + 790 = 33, 129

The reconciled balance is 33,129 30

5.

ACCOUNTS RECEIVABLE

Accounts receivable are current assets because, by definition, they will be converted to cash within the normal operating cycle.

5.1. Initial valuation of accounts receivable 5.1.1. Trade discount ( chit khu thng mi ) A percentage reduction from the list price to change prices or to give quantity discount to large customers. Ghi gim trc tip trn ha n.

5.1.2. Cach discount ( Sales discount )

Reduce the amount to be paid if remittance is made within a specified short period of time.

Represent reduction not in the selling price of good or service but in the amount to be paid within a specified period of time to provide incentive for quick payment

V d: 2/10, n/30 ==> Thi gian tr n ti a l 30 ngy, nhng nu tr trong vng 10 ngy th c hng chit khu thanh ton 2%. Bi tp: The Hawthorne Manufacturing Company offers credit customers a 2% cash discount if the sales price is paid within 10 days. Any amounts not paid within 10 days are due in 30 days. These repayment terms are stated as 2/10, n/30. On October 5, 2003, Hawthorne sold merchandise at a price of $20,000. This merchandise cost $16,000 ( 80% of the selling price ) . The customer paid $13,720 ( $14,000 less the 2% cash discount ) on October 14 and the remaining balance of $6,000 on November 4. 31

Vietnamese October 5: a. Dr A/R : 20,000 Cr Sales Revenue: 20,000 b. Dr COGS: 16,000 Cr Inventory: 16,000 October 14 Seller Dr Cash : 13,720

Net method

Gross method

a. Dr A/R : 19600 Cr Sales Revenue: 20,000 *(1-2%)= 19,600 b. Dr COGS : 15,680 Cr Inventory:

a. Dr A/R : 20,000 Cr Sales Revenue: 20,000 b. Dr COGS : 16,000 Cr Inventory: 16,000

16,000 *(1-2%)= 15,680

Dr Cash Dr Cash Cr A/R : 13,720 : 13,720

: 13,720

Dr Financial Expense: 280 Cr A/R : 14,000 November 4 Dr Cash : 6,000 Dr Cash Cr A/R : 6,000 :

Dr Sales discount : 280 Cr A/R : 14,000

Dr Cash

: 6,000

Cr A/R : 6,000

Cr A/R : 6,000

19,600 13,720 = 5,880 Cr Interest Revenue: 120

Nhn xt : 32

Balance Sheet A/R Cash

Vietnamese 20,000 13,720

Net method 19,600 13,720

Gross method 20,000 13,720

19,600 ( 98% ) => gi tr thc ca mn hng m seller a cho khch hng 20,000 400 ( 2% ) => tin li cho khch hng hng

Discount taken ( within 10 days ) : 280

Discount not taken ( overdue ) : 120

Income Statement Sales Revenue Interest Revenue Expense

Vietnamese 20,000 0 280

Net method 19,600 120 0

Gross method 20,000 120 = 19,720 0 0

Clearly, initial valuation of net method and gross method is different. Using either net method or gross method, net sales is reduced by discount taken ( 20,000 280 = 19,720 ).

Discounts not taken ( 120 ) are included in sales revenue using the gross method and interest revenue using the net method. 33

5.2. Subsequent Valuation Two situations possibly could cause the cash collected to be less than the initial valuation of the receivable: Sales returns: The customer could return the product. Uncollectible Accounts Receivable: The customer could default and not pay the agreed on sales price.

5.2.1. Sales returns

Xt v d sau : Trong thng 10, cng ty A bn chu mt l hng, gi vn $70, gi bn $100. Vo ngy 5 thng 11, do khch hng thy l hng khng phm cht nn tr li cho DN. Thng 10 Khi bn c hng 5/11: a. Dr Sales Return a. Dr A/R : 100 Cr A/R b. Dr Inventory Cr COGS 30/11: Dr Sales Revenue : 50 : 50 : 50 : 35 : 35 Thng 11 Khi tr li hng

Cr Sales Revenue : 100 b. Dr COGS Cr Inventory : 70 : 70

Cr Sales Return : 50

Cu hi 1: Ti sao khng ghi gim trc tip Sales Revenue m phi s dng ti khon trung gian ( Sales Return ), cui thng phi kt chuyn Sales Return sang Sales Revenue ? 34

Bn phn N TK 511 c rt nhiu khon mc : Hng bn tr li, Gim gi hng bn, Chit khu thng mi, Thu xut khu, Thu tiu th c bit, VAT theo phng php trc tip. Nu ghi gim trc tip TK Sales Revenue th nh qun tr khng bit tng gi tr ca tng khon mc l bao nhiu. Vic s dng TK trung gian ( Sales Return ) l 1 k thut k ton, va cung cp thng tin cho i tng bn ngoi ( Cc khon gim tr doanh thu ) va cung cp chi tit gi tr ca tng khon mc gim tr doanh thu nh qun tr c quyt nh ph hp: Trong khon gim tr doanh thu m khon Chit khu thng mi chim t trng ln => kh nng tiu th sn phm ca cng ty l rt tt, khch hng mua hng nhiu nn chit khu cho khch hng nhiu. Nu Gim gi hng bn, Hng bn tr li chim t trng cao cho thy cht lng sn phm ca cng ty khng tt, cn phi xem xt li qu trnh sn xut nhm gia tng gi tr khch hng. Cu hi 2: Vic nh khon nh Vit Nam nh trn s ny sinh vn g ? Returning goods of October do not make sales revenue of October debit, but Novembers sales revenue => Sales Revenue of October is overstated while Novembers one is understated. Recognizing sales returns when they occur could result in an overstatement of income in the period of the ralated sale. Tng t, cng ty bn hng nm 2010 ( doanh thu l 100 ), qua nm 2011, doanh thu bn hng l 100, gi tr hng m khch hng tr li l 50 th cch hch ton nh Vit Nam s lm doanh thu nm 2010 b nh gi cao v doanh thu nm 2011 b gim tr => khng cung cp thng tin hu ch. 35

Nu nh vic bn hng nm 2010 v 2011 l do 2 i ng bn hng khc nhau thc hin ( A v B tng ng ) . iu ny cng lm cho nh qun tr khen thng cho i ng bn hng A nm 2010, nhng li a ra kin i ng bn hng B lm vic km hiu qu, nhng thc t i A ch bn c 50 cn i ng B bn c 100 ==> rt bt cng cho i B.

Cu hi 3: C cch no khc phc vn trn hay khng ? Yes, International Accounting makes provision for Sales Return as follows

a. Ghi nhn bn hng b.

Dr A/R Cr Sales Revenue Dr COGS Cr Inventory

a. 1. Make sales Make allowances at the end of accounting period b.

Dr Sales Return Cr Allowance for Sales Return Dr Inventory estimated return Cr COGS At the end of month : Dr Sales Revenue / Cr Sales Return

a. 2. Receive a return b.

Dr Sales Return Allowance Cr A/R Dr Inventory Cr Inventory estimated return 36

Nu d phng khng th x l nh cha lp d phng : c. Dr Sales Return Cr A/R d. Dr Inventory Cr COGS

Nu lp d phng b d th hoc l hon nhp ( reverse bt ton lp d phng ) hoc b tr vi khon d phng cn lp cho nhng k tip theo.

Vic trch lp d phng vo cui k lm cho doanh thu k bn hng hp l hn mt cht nhng khng m bo hp l 100%.

Example : During 2003, its first year of operations, the Hawthorne Manufacturing Company sold merchandise on account for $2,000,000. This merchandise cost $1,200,000 ( 60% of the selling price ). Industry experience indicates that 10% of all sales will be returned. Customers returned $130,000 in sales during 2003, prior to making payment. The entries to record sales and merchandise returned during the year, assuming that a perpetual inventory system is used.

Nghip v bn hng Dr A/R Cr Sales Revenue : : 2,000,000 2,000,000 Dr COGS Cr Inventory : 1,200,000 : 1,200,000

Receive a return Dr Sales Return Cr A/R : : 130,00 130,000 Dr COGS Cr Inventory : : 78,000 78,000 37

Make provisons for Sales Return at the end of 2003 Dr Sales Return Cr Sales Return Allowance Dr Inventory estimated return Cr COGS Dr Sales Revenue Cr Sales Return : : : : : : 10% * 2,000,000 130,000 = 70,000 70,000 60% * 70,000 = 42,000 42,000 200,000 200,000

The sales revenue in 2004 was 3,000,000. In 2004, customers returned $ X in sales. Ending 2004, the company make allowance for 10% of all sales will be returned. a. X = $ 60,000 Receive a return Dr Sales Return Allowance Cr A/R Dr Inventory : 60,000 : 60,000 : 60% * 60,000 = 36,000

Cr Inventory estimated return : 36,000 Make allowances at the end of 2004 Dr Sales Return : 3,000,000 * 10% - 10,000 = 290,000

Cr Allowance for Sales Return : 290,000 Dr Inventory estimated return Cr COGS : 60% * 290,000 = 174,000 : 174,000 38

Bt ton kt chuyn Dr Sales Revenue Cr Sales Return : 290,000 : 290,000

b. X = $ 80,000 Receive a return Dr Sales Return Allowance Dr Sales Return Cr A/R Dr Inventory : 70,000 : 10,000 : 80,000 : 60% * 80,000 = 48,000

Cr Inventory estimated return : 60% * 60,000 = 36,000 Cr COGS : 60% * 20,000 = 12,000 Make allowances at the end of 2004 Dr Sales Return : 3,000,000 * 10% - 10,000 = 290,000

Cr Allowance for Sales Return : 290,000 Dr Inventory estimated return Cr COGS : 60% * 290,000 = 174,000 : 174,000 Bt ton kt chuyn Dr Sales Revenue Cr Sales Return : 300,000 : 300,000 39

5.2.2. Uncollective Accounts Receivable

5.2.2.1. DIRECT WRITE OFF remove a debt from a companys accounts when the enterprise realized that it could not gain future economic benefit from A/R Dr Bad debt Expense Cr A/R Direct write off ch ph hp vi nhng doanh nghip c t transaction, nghip v n gin, s lng khch hng t, c th m c. 5.2.2.3. Specific write off ( con n b trn, mt tch, cht, b ph sn... )

Nghip v

5.2.2.2. General write off ( depends on debt age overdue )

Dr Bad debt Expense Lp d phng Cr Provision for Uncollective Accounts Receivable

Dr Bad debt Expense Cr Allowance for Uncollective Accounts Receivable

Write off ( Xa n )

Dr Provision for Uncollective Accounts Receivable Cr Accounts Receivable a. Dr A/ R Cr Bad debt Allowance b. Dr Cash Cr A/ R

Dr Allowance for Uncollective Accounts Receivable Cr Accounts Receivable

Suddenly collect debts

Dr Cash Cr Income ( Profit & Loss )

40

Notes: Vic trch lp d phng theo General write - off c 2 cch tip cn sau:

Income statement approach Estimate bad debt expense as a percentage of each periods net sales. The balance sheet amount is an indirect outcome of estimating bad dent expense. Mun tng hay gim chi ph th ch cn thay i gi tr d phng, t tc ng n B/S.

Balance Sheet approach Determine bad debt expense by

estimating the net realizable value of accounts receivable to be reported in the balance sheet. Income Statement l hu qu ca B/S nn ph thuc vo B/S, t khng kim sot c chi ph trn I/S.

Vit Nam ang lp d phng cc khon phi thu kh i theo cch tip cn t Balance Sheet. Cui nm mnh r li danh sch khch hng v tnh ton s tin mnh khng th thu hi c. Measurement the value of

uncollective accounts receivable depends on debt age overdue ( ly s liu t cc ti khon control & detail ) ==> Making provisons for bad debts by balance sheet approach reflects the value of exactly than income statement approach. accounts receivable more

Tuy nhin, Income Statement phn nh Bad debt Expense chnh xc hn v y l chi ph cng ty chp nhn b i get sales. 41

S cn thit phi trch lp d phng:

Khng trch lp d phng

Trch lp d phng

Doanh thu : 1000 Chi ph Net profit : 700 : 300

Doanh thu : 1000 Chi ph Net profit : 700 + 200 ( d phng ) : 100

D c trch lp d phng hay khng, th tin li vn khng i ( tng ngn lu rng ging nhau c 2 trng hp ), li nhun thc t ging nhau, nhng li nhun k ton trong trng hp lp d phng s thp hn khi khng lp d phng. Li nhun k ton sau thu thp th chia c tc t => DN gi li c nhiu ti sn, ngun lc kinh t chi xi trong tng lai, hn ch vic phn phi ti sn nhiu. Vic trch lp d phng cn gip cho doanh thu v chi ph cc k cng bng, khng c bin ng qu ln.

Example : The Hawthorne Manufacturing Company sells its products offering 30 days credit to its customers. During 2003, its first year of operations, the following events occurred: Sales on credit Cash collections from credit customers Accounts receivable, end of year $ 1,2000,000 ( 895,000 ) $305,000 42

There were no specific accounts determined to be uncollectible in 2003. The company anticipates that 2% of all credit sales will ultimately become uncollectible. And $ 20,000 of accounts receivable is considered uncollectible.

Income statement approach Dr Bad debt Expense : 2% * 1,2000,000 = 24,000 Cr Provision for Uncollective Accounts Receivable : 24,000 Balance Sheet as at December 2004 A/R Provision Net A/R : 305,000 : ( 24,000 ) : 281,000

Balance sheet approach

Dr Bad debt Expense : 20,000 Cr Provision for Uncollective Accounts Receivable : 20,000

Balance Sheet as at December 2004 A/R Provision Net A/R : 305,000 : ( 20,000 ) : 285,000

Income Statement for the year ended 2004 Bad debt Expense : 24,000

Income Statement for the year ended 2004 Bad debt Expense : 20,000

Vo nm 2004, mt khon n 10,000 khng th thu hi c.

Income statement approach

Balance sheet approach : 10,000 : 10,000 43

Dr Provision for Uncollective Accounts Receivable Cr Accounts Receivable

Sau khi xa n, The Statement of Financial Position nh sau : Income statement approach A/R : 305,000 10,000 = 295,000 A/R Balance sheet approach : 305,000 10,000 = 295,000

Provision : ( 14,000 ) Net A/R : 281,000

Provision : ( 10,000 ) Net A/R : 285,000

Bit doanh thu nm 2004 l $ 750,000. Cng ty tin hnh lp d phng cc khon phi thu kh i theo 2% tng doanh s bn hng. Mt khc, cng ty tin hnh r sot li cc khon phi thu v c tnh $ 12,000 khng th thu hi.

Income statement approach Dr Bad debt Expense : 2% * 750,000 = 15,000 Cr Provision for Uncollective Accounts Receivable : 15,000 nh khon sau y l sai : Dr Bad debt Expense : 2% * 750,000 14,000 = 1,000 Cr Provision for Uncollective

Balance sheet approach Dr Bad debt Expense : 12,000 10,000 = 2,000 Cr Provision for Uncollective Accounts Receivable : 2,000

Do cng ty r sot li danh sch cc khch hng mua chu, nhn thy s d d phng cui nm 2004 phi l $ 12,000. Nhng cc nm trc mnh lp d phng $ 10,000 ri nn by gi ch cn lp d phng thm $ 2000. y l nt khc bit gia I/S approach & B/S approach. 44

Accounts Receivable : 1,000 V $ 15,000 mi l chi ph mnh chp nhn b i bn c hng.

CHAPTER 3 : INVENTORY

Inventory concept ( IAS 2, paragraph 6 )

Assets that: Held for sale in the ordinary course of business In the production process for sale in the ordinary course of business. In the form of materials or supplies to be consumed in the production process or in the rendering of services.

Hng tn kho l cc loi ti sn: Gi bn trong qu trnh hot ng kinh doanh bnh thng. Trong qu trnh sn xut bn. Nguyn vt liu hay cng c s dng trong qu trnh sn xut hay cung cp dch v.

Xt v d sau: Cng ty Th Ch mua 1 l sa t Nht, nhng sau Nh nc ra quy nh cm nhp khu v bn cc loi sa c ngun gc t Nht. Trong trng hp ny cng ty c ghi nhn y l hng tn kho hay khng ? Nu Th Ch ngh rng mnh cn c kh nng thu c future economic benefit t l sa ( cho heo n, internal use ... ) => ghi nhn l Inventory. Nu Th Ch thy rng l sa ny bn khng ai mua, cho ai khng ly, khng ung c, ch c th em tiu hy th khng ghi nhn l Inventoty (v ngay c iu kin ghi nhn ti sn future economic benefit cng khng tha mn). Khi k ton nh khon: Dr Other Expense / Cr Cash.

45

Types of inventory Raw materials Intrusments, Tools, Suppliess Work in progress ( WIP ) Nguyn vt liu ( TK 152 ) Cng c, dng c ( TK 153 ) Chi ph sn xut, kinh doanh d dang ( TK 154 )

Definition

S dng cho qu trnh sn xut

Sn phm cha hon thnh tin trnh sn xut Sn phm hon thnh v sn sng bn Hng mua v gi bn.

Finished goods

Thnh phm ( TK 155 )

Merchandise inventory

V d: hng ha ca cc DN bn Hng ha ( TK 156 ) l mua v bn hay bt ng sn ca cc DN kinh doanh bt ng sn gi bn.

Trong Inventory cn c 2 loi na l : Goods in transit ( Hng mua ang i ng ) Goods on Consignment ( Hng gi i bn )

Goods in Transit Inventory shipped FOB shipping point ( FOB ) is included in the purchasers inventory as soon as the merchandise is shipped. Inventory shipped FOB destination ( CIF ) is included in the purchasers inventory only after it reaches the purchasers destination.

46

Ch : Phn ln ri ro v li ch ca hng ha thuc v ai th hng ha thuc v ngi & xut hin trn Balance Sheet ca n v , khng quan trng Legal form v quyn s hu ca n l g ( p dng cho Leasing v Goods on Consignment ). Nu DN gi bn hng cho i l, nhng khng quy nh gi bn, i l thy gi no c th bn ==> i l hng hoa hng + chnh lch gi Risk and Benefit ca hng ha phn ln thuc v i l => l hng gi bn ny l Inventory ca i l. Cng ty khng ghi nhn n trn Balance Sheet ca mnh. L hng ny xut hin Inventory trn B/S ca i l ( agent ).

Nu DN gi bn hng cho i l, i l bn ng gi, hng hoa hng bn hng trn doanh s bn c Risk and Award ca hng ha phn ln do cng ty nm gi => l hng gi bn ny l Inventory ca cng ty. Goods held on consignment are

included in the inventory on B/S of the consignor ( the company ) until sold by the consignee.

Chu trnh ca hng tn kho: Purchase ==> Issue / Use ==> Sold ==> Revaluate at the end of the year. 1. PURCHASING PROCEDURE & DOCUMENTATION Step 1 : Purchase Production Material Store requisition Purchasing Purchasing Manager form
2

department requisition
1

department

order
3

ratify

47

Explanation:

( 1 ) A materials requisition will be completed when materials are needed from stores by the production department. An official from production ( trng b phn sn xut ) will sign the form to authorize it.

It is then used as a source document for : a. Updating the bin card in stores b. Updating the stores ledger account in the costing department ( k ton qun tr ) c. Charging the job ( tnh gi thnh ), overhead or department that is using the materials ( so snh vic s dng chi ph ca tng b phn so vi li nhun m b phn lm ra xem b phn c lm vic hiu qu hay khng ).

( 2 ) Th kho sau khi i chiu th kho v yu cu cung cp nguyn vt liu t b phn sn xut, nu thiu s lp ra n thng bo mua hng.

Gii thiu v Bin Card ( Th Kho ) Description ( tn hng ) Inventory code ( m nguyn liu ) Inventory units ( n v tnh ) Bin number ( m s th kho ) Issues to production ( lng xut ) Receipts ( s lng nhp ) Balance ( tn trong kho ) 48 Trn Bin Card khng th hin gi tr ca vt t, hng ha. N c th kho lp, gi v s dng nn ch cn theo di s lng.

( 3 ) Purchasing department ( phng vt t ) i chiu gia thng bo mua hng v material buget c b phn k ton qun tr lp d ton cui nm trc: Nu yu cu mua hng ph hp vi material budget th trng b phn mua hng ph duyt vic mua hng => a ln cho gim c approve / authorise ln cui. Nu yu cu mua hng khng nm trong material budget hoc gi tr vt qu thm quyn th trng phng phi xin kin gim c. Nu c php th trng phng mua hng hon chnh h s, ph duyt, sau chuyn cho gim c k duyt cui cng.

Sau khi c gim c chp thun, Purchasing department finds & contacts the best supplier and order products.

Cu hi: Ti sao khng giao cho b phn sn xut hoc kho i mua hng lun, m li giao cho b phn mua hng ? y l 1 th tc kim sot trong kim sot ni b ( Internal Control ) vi nguyn tc bt kim nhim : ngi yu cu mua hng, ngi ph duyt mua phi c lp vi ngi i mua. Purchasing department khng c t i mua hng m khng c s yu cu t Production department & Store v khng c s ph duyt ca gim c.

Supplier s gi Potation/ Listed price ( giy bo gi ) cho cng ty. Sau khi la chn c vt t, hng ha ph hp, Purchasing department s fill in Purchase Order v gi cho suppiler. 49

Step 2 :

( 4 ) Products + Goods Delivery Note Supplier ( 5 ) Dispatch Note The company

( 6 ) Goods Delivery Note ( copy ) + Goods Received Note Supplier

Explanation:

( 4 ) The supplier sends products along with Goods Delivery Note to the company. Delivery Note is a written document from the seller to the buyer that specifies type of goods and quantity. Price may be included or not.

( 5 ) After that, the seller sends Dispatch Note ( thng bo gi hng ) by email to the enterprise in order to inform that the goods are on their way and when they will be delivered.

An example of Dispatch Note: We are pleased to inform you that your goods were sent today. We hereby inform you that your goods will be delivered tomorrow. We hope that the goods will arrive in perfect condition. We look forward to doing business with you again.

50

( 6 ) When gooods are received into the company, Purchasing department signs on the Delivery Note ( one side keeps a Delivery Note ). After that, store keeper or Purchasing department produced Goods Received Note ( Phiu nhp kho) . Goods Received Note usually accompanies goods to any inspection. In addition, it must have the store keepers signature.

( 7 ) Purchasing department makes copy of Invoice, Purchase Order (contract), Goods Received Note, Potation and sends all of them to the Accounting department.

( 8 ) Accountants have to check 3 things: Check the Invoice and Goods Received Note to guarantee that goods have been delivered and are in satisfactory condition ( m bo mua c th cn mua trong tnh trng tt nht ). Check the Invoice and Purchase Order to make sure that the price and terms are as agreed ( ch thanh ton nhng g cng ty t hng thi ).

Check the Invoice that the calculations on the invoice are correct ( including sales tax, VAT ). If everything is in order, the accountants will record figures in the Stores Ledger Accounts, Cash Book or Payables Ledger.

Stores Ledger Accounts carry all the information that a bin card does , but there are two important differences: 51

 Cost details are recorded in the stores ledger account. The stores ledger accounts are written up and kept separate from the stores
by a clerk experienced in costing book - keeping.

( 9 ) K ton khng c thc hin chc nng thanh ton, do th qu cng ty ( Treasurer ) s tin hnh tr tin cho nh cung cp. Th qu, l ngi gi tin v Sc trng ca cng ty, sau khi vit Sc xong, a cho Gim c k.

Ch : Sc trng ( cha c ch k ca Gim c, cha c k pht ) phi c gi trong Kt st, phi c kim tra nh Cash, mt 1 t l c vn . Measurement of Inventories

IAS 2 on 9 trnh by : Hng tn kho c tnh theo gi thp hn gia gi gc v gi tr thun c th thc hin c .

Historical Cost ( Gi gc ) Chi ph c vn ha trong gi gc hng tn kho bao gm mi chi ph pht sinh trc tip hay gin tip cn thit a hng tn kho vo iu kin v v tr sn sng ca chng. Chi ph mua Chi ph ch bin Cc chi ph khc

Tt c cc chi ph Cc chi ph lin quan c tnh trong gi gc nu pht sinh trong qu trc tip n sn phm chng p ng c iu trnh mua hng nh sn gi mua, chi ph xut hay kin a hng tn kho vo v tr v iu kin sn sng. 52

manufacturing overhead

vn chuyn ( freight pht sinh trong qu trnh Chi ph nguyn vt liu, in, transportation in, chuyn i nguyn vt carriage inward nhp khu. Cc khon gim gi hng mua, chit khu thng mi phi loi tr khi chi ph mua. Mt s khon chi khng c tnh vo gi gc hng tn kho v c ghi nhn l chi ph ca k khi chng pht sinh nh: Cc chi ph bt thng nh chi ph nguyn vt liu, chi ph nhn cng v chi ph sn xut chung b hao ht ngoi nh mc. Hao ht trong nh mc tc l chng ta phi tn trng nature ca n. Pha ch 3l hng liu vi 100 l nc th th tch hn hp sau phn ng l 102,4 l ==> 0,6 l b mt i l hao ht trong nh mc ( normal way ). 1 kg rau mua v, qua s ch thu c 0,7 kg rau sch cn 0,3 kg rau a vng, b su n phi b i ==> 0,3 kg rau ny l hao ht trong nh mc ( normal waste ). Nhng hao ht bt thng ( abnormal waste ) khng c tnh vo gi gc inventories. Chi ph qun l khng lin quan n qu trnh a hng tn kho vo v tr v iu kin sn sng s dng. 53 ) , liu thnh thnh phm ph thu nh, chi ph bo ch, chi ph nguyn vt liu gin tip, chi ph nhn cng gin tip ... ) cc khon thu, ph ( chi ph khu hao, chi chi ph nhn cng, chi ph sn xut chung b hao ht trong nh mc bnh thng. phm chun b cho qu trnh sn xut tip theo (futher processing)

tr, bo him, chi ph tin Chi ph bo qun sn

Chi ph lu kho, bo qun sn phm ( Storage ) m khng phc v cho qu trnh sn xut tip theo.

Theo nguyn tc, sn phm khi ri vo trng thi available for use th Storage Cost khng c tnh vo gi thnh, m a vo Selling Cost. Chi ph bn hng ( transportation out, freight out, carriage outward .... )

Two inventory accounting system Perpetual inventory system ( K khai thng xuyn ) A perpetual inventory system continuously records both Periodic inventory system ( Kim k nh k )

A periodic inventory system adjusts inventory and records cost of goods sold only at the end of each reporting period.

changes in inventory quantity and inventory cost.

Mi khi xut hng, tnh gi hng xut kho theo 1 trong 3 phng php sau ( theo IAS 2 version 1/1/2003 )

Khi xut hng khng nh khon. Cui k, tnh gi tr hng xut kho nh sau:

- Kim k bit s lng hng tn kho cui k. - Dng 4 phng php tnh gi tnh gi tr hng tn kho cui k.

FIFO First in, first out Weighted pricing method average

Specific cost

Cost of goods sold = Beginning inventory + Net purchases Ending inventory 54

Example 1: The Anna Wholesale Beverage Company purchases soft drinks from producers and sells them to retailers. The company begins 2003 with merchandise inventory of $120,000 on hand. During 2003 additional merchandise is purchased on account at a cost of $600,000. Sales for the year, all on account, totaled $820,000. The cost of the soft drinks sold is $540,000. Anna uses the perpetual inventory system to keep track of inventory quantities and inventory costs. Purchased Inventory Sold Inventory Dr Inventory : 600,000 Cr Payable to suppliers : 600,000 a. Dr COGS : 540,000 Cr Inventory : 540,000 b. Dr A/ R : 820,000 Cr Sales Revenue : 820,000

Example 2: The Anna Wholesale Beverage Company purchases soft drinks from producers and sells them to retailers. The company begins 2003 with merchandise inventory of $120,000 on hand. During 2003 additional merchandise is purchased on account at a cost of $600,000. Sales for the year, all on account, totaled $820,000. The cost of the soft drinks sold is $540,000. In addition, ending inventoy is $ 180,000. Anna uses the periodic inventory system. Purchased Inventory Sold Inventory Dr Purchase : 600,000 Cr Payable to suppliers : 600,000 Dr A/ R : 820,000 Cr Sales Revenue : 820,000 Dr COGS : 120,000 + 600,000 180,000 = 540,000 End of period Dr Inventory : 180,000 120,000 = 60,000 Cr Purchase : 600,000 55

A comparison of two inventory accounting systems A perpetual inventory system provides more timely information but generally is more costly than a periodic inventory system.

Pricing techniques ( Phng php tnh gi xut kho ) Phng php tnh gi hng tn kho cn p dng nht qun i vi tt c loi hng tn kho c cng bn cht v tnh hu dng. IAS 2 version c hiu lc t ngy 1/1/2003, tch bit 2 nhm hng tn kho vi 3 phng php tnh gi khc nhau: a. Chi ph hng tn kho ca cc loi hng khng c sn xut hng lot hay khng th thay th & cc hng ha ( dch v ) sn xut c th cho nhng n t hng c th, v d: trang sc, cc thit b c th... cn s dng phng php thc t ch danh. b. Chi ph hng tn kho ca cc mt hng khc c xc nh theo phng php nhp trc xut trc ( FIFO ) hoc bnh qun gia quyn.
FIFO First in, first out

Definition

Advantages It is logical as the oldest stock is likely to be used first: Easy to understand and explain.

Disadvantage Cumbersome to operate because of the need to identify each batch of material separately. 56

Values issues at the price of the oldest items in inventory at the time the issues were made.

The remaining inventory thus will be valued at the price of the most recent purchases. Closing stock is valued near replacement cost.

Variety of price for the same material may make it difficult to compare cost and make decision.

Weighted average pricing method

Phng php ny s dng gi bnh qun cho cc n v hng tn kho trong k. Thng c s dng cho cc loi hng tn kho thng thng, c th thay th nh hng may mc. Issue price

C 2 cch tnh bnh qun gia quyn: Cumulative weighted average pricing ( bnh qun lin hon ) : calculating average cost whenever a new delivery is received ( mi khi hng nhp v phi tnh gi bnh qun cho cc loi hng trong kho ). Periodic weighted average pricing ( bnh qun gia quyn 1 ln cui k ): calculating average cost at the end of a given period.

IAS 2 version trc nm 2003, cho php tnh thm phng php LIFO. It is the oposite of FIFO.

FIFO is based on the price of the oldest items, not close to market value. Therefore it is difficult for the managers to make dicisions. 57

Using LIFO, issues will be valued at the price of the most recent purchases; hence the remaining inventory will be valued at the price of the oldest items. Because issue at cost close to current market value, which makes it easy for decision making.

However, LIFO has disadvantages galore. Cumbersome to operate because of the need to identify each batch of material separately: Difficult to explain as it is opposite to what is physically happening. Variety of price for the same material may make it difficult to compare cost and make decision.

Purchase discount

On October 5th 2003, the Anna Company purchased merchandise at a price of $ 20,000. The repayment terms are stated as 2/10, n/30. Lothridge paid $13,720 ( $14,000 less the 2% cash discount ) on October 14 and the remaining balance of $ 6,000 on November 4. Anna employs a periodic inventory system. 58

Vietnamese October 5: Dr Purchase : 20,000 Cr A/ P: 20,000 October 14 Dr A/P : 14,000 Cr Financial Income : 280 Cr Cash : 13,720 November 4 Dr A/P: Dr A/P : 6,000 Dr A/P

Net method

Gross method

Dr Purchase: 19,600 Cr Accounts Receivable : 20,000 * ( 1-2%) = 19,600

Dr Purchase : 20,000 Cr A/ P:20,000

: 13,720

Dr A/P : 14,000 Cr Discount Received ( Interest Income ) : 280 Cr Cash : 13,720

Cr Cash : 13,720

19,600 - 13,720= 5880 Cr Cash : 6,000 Dr Interest expense : 6,000 * 2% = 120 Cr Cash : 6,000

Dr A/P : 6,000 Cr Cash : 6,000

Inventory Evaluation Bo co ti chnh cn phi phn nh trung thc v hp l tnh hnh ti chnh ca n v. Do vic nh gi li hng tn kho cui k nhm khng nh gi cao ( oversteted ) gi tr ti sn ( accoring to the prudence principle ). 59

Gi tr hng tn kho cui k c th hin trn Bo co ti chnh CARRYING AMOUNT= MIN ( HISTORICAL COST, MARKET VALUE ) Vietnamese & IAS Market value = Net realizable value ( NRV ) = Expected selling price Cost incurred in getting them ready for sale Selling Cost = Gi bn c tnh trong iu kin bnh thng Chi ph c tnh hon thnh sn phm Chi ph c tnh cho vic bn hng. US Market value is defined as replacement cost ( RC ) which should not : Exceed the net realizable value Be less than net realizable value reduced by an allowance for an normal profit margin ( PM ).

Xc nh Market value theo US nh sau:

NRV PM

NRV

RC thc t

RC thc t

RC thc t

Market value

Market value

Market value

Nu RC thc t Nu NRV PM Nu NRV

NRV PM th Market value xc nh theo US = NRV PM RC thc t NRV th Market value = RC thc t

RC thc t th Market value xc nh theo US = NRV 60

CHAPTER 4: NON-CURRENT ASSETS

61

62

63