ASSIGNMENT 01 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 5: Accounting Principles

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Student Name Nguyen Phan Thao My Student ID GBD220121

Class No. GBD1101 Assessor Name Vo Cong Nghia

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I understand that making a false declaration is a form of malpractice.
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 Table of Contents
I. Introduction .............................................................................................................................. 2

II. The Accounting Function In An Organisation .................................................................... 2

2.1 Definition of Accounting .................................................................................................. 2

2.2 Purpose of the Accounting Function .............................................................................. 3

2.3 The main user of the Accounting Information ............................................................ 3

2.3.1 Internal Users ............................................................................................................. 4

2.3.2 External Users ............................................................................................................. 4

2.4 The roles and importance of Accounting as an Information System ...................... 5

2.4.1 Introduction of Accounting Information System ................................................. 5

2.4.2 Interrelationship between Accounting Function and Marketing Function ... 6

2.4.3 Interrelationship between Accounting Function and HRM ............................... 8

III. The Context And Purpose Of Financial And Management Accounting .......................... 9

3.1 Distinguishing between financial accounting and management accounting in

terms of purpose and scope ....................................................................................................... 9

IV. The Organizational Constraints And Threats Following The Concepts Of

Accounting Regulations And Principles As Well As Ethics In Accounting .......................... 11

4.1 Ethics in Accounting ........................................................................................................ 11

4.2 Accounting Assumptions................................................................................................ 12

4.3 Accounting Principles ..................................................................................................... 13

4.4 Constraints and Threats ................................................................................................. 14

4.5 Overview of GAAP from FASB, IFRS from IASB, VAS from VmoF ............................ 15

4.6 Discussing VAS from the Ministry of Finance ............................................................ 15

V. Critically evaluating the Role Of Accounting In Informing Decision-Making To Meet

Organizational, Stakeholder, And Societal Needs Within Complex Operating
Environments.................................................................................................................................. 17

VI. Conclusion ............................................................................................................................... 18

VII. References ............................................................................................................................... 18

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 I. Introduction
A long-term business requires various aspects like financing, human resources, and products,
with accounting being a crucial aspect that aids in providing financial reports and efficiently
managing financial resources. In this article, joining PwC Vietnam as a graduate intern at SME
units is tasked with creating a blog to promote and sell the company's products to both current
and potential clients. Throughout the course, details on PricewaterhouseCoopers (PwC), a
multinational alliance that offers comprehensive business consulting services, will be provided.
With its headquarters in the heart of London, it is the second-largest professional service
network globally. The corporation has recently focused on emerging countries, particularly
Southeast Asia, with small client bases and significant development potential. The content of
the blog post includes the definition of accounting, the general role of accounting in business,
and career opportunities. The roles and importance of the plan such as AIS and Test the
objectives of the functional plan in an organization. Next, is a comparison of financial and
management accounting. Specify the objectives, the scope of activity, and the extent to which
the company must comply with IFRS and GAAP guidelines. Finally, the accounting function is
highly valued within the organization in the context of mandatory regulatory and ethical
constraints. This blog aims to improve people's understanding of accounting.

II. The Accounting Function In An Organisation

2.1 Definition of Accounting

Accounting involves obtaining, analyzing, and communicating financial data. The ultimate
purpose is to help those using this information make more informed choices (McLaney & Atrill,
2018). Basically, earning financial information is worthless unless it can lead to better
assessments. The purpose of an accountant, often misinterpreted is to produce financial reports
on a regular basis. While it is true that accounting does these types of work, it is not a goal in
itself (McLaney & Atrill, 2018). As was previously stated, the ultimate goal of the accounting
profession is to provide users with financial knowledge to help them make better decisions
(McLaney & Atrill, 2018).

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 2.2 Purpose of the Accounting Function

According to The American Accounting Association accounting (1966) is defined as “the

process of identifying, measuring, and communicating economic information to allow
informed judgments and decisions by users of the information.” (Collier, P., 2003). That process
involves capturing business events, recording their financial effects, summarizing and
reporting the results of those effects, and interpreting those results. In addition, it relates to
economic information which is mainly financial information, and allows reference to non-
financial information (Collier, P., 2003). Its purpose is to assist in making user-informed
judgments and decisions that emphasize the usefulness of determining accounting information
and the extent to which it is used (Collier, P., 2003).

2.3 The main user of the Accounting Information

According to Paul M. Collier (2003), the users of accounting information include all those who
may be interested in the existence, profitability, and growth of a business. Divided the users of
accounting information into two groups – internal and external users. Internal users include
managers, owners, and employees of the business whereas external users include lenders,
customers, suppliers, etc.

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 2.3.1 Internal Users

The owner invests capital to set up and run a company with the main goal of making a profit
(Javed, R., 2023). They're asking for accurate financial information to know what they've
earned or lost over a particular period of time. In particular, they also make decisions on the
direction of future action, including the development and narrowing of enterprises based on
financial facts (Javed, R., 2023). Information about profits and cash flows can be found in the
financial statements. Owners of small—such as private enterprises and joint ventures—
manage the company individually (Javed, R., 2023). For instance, strategic choices made by
owners regarding growth, acquisitions, mergers, and divestitures may have a big impact on
accounting. These choices have an effect on the assets, liabilities, income, costs, and other
financial indicators that are documented in the books. Management needs financial data
information to assess and analyze the company's financial performance and financial position
(Javed, R., 2023). Accounting forecasts are needed to enable management to make important
decisions and take appropriate action to improve the profitability and cash flow of the company
(Javed, R., 2023). Management uses the information generated by the company's financial and
management accounting system with one of its main managerial roles being to establish rules
and procedures for company goals (Javed, R., 2023). For example, decision-making by
management elating to a cost-control initiative or cost-cutting measure will impact reported
costs and profits.

In addition, employees are interested in information on accounting data to assess the financial
situation of a company in terms of salaries and to ensure job stability (Weetman, P., 2016). In
addition, employees' concerns about the company's financial situation also affect the
employee's working attitude, which is assessed on the basis of salary levels, retirement
benefits, and employment opportunities for employees (Weetman, P., 2016). For example, the
company's inventory managers influence accounting information. If inventory movements are
recorded correctly, regular counting will affect the price of the sales capital and the value of the
inventory in the financial statements.

2.3.2 External Users

Lenders are individuals or financial institutions that usually lend money to and earn interest
income from it (Javed, R., 2023). They need accounting information about the company's
financial position to assess both financial performance and to reduce the risk of default, they
need reasonable assurance that the organization is on a debt repayment plan and can guarantee
the return of the original amount as well as interest repayments (Javed, R., 2023). For example,

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the lenders must accurately disclose the liability and terms of the debt contract in a transparent
manner as to the amount of reserves, interest rates, debt repayment schedules, and any related
mortgage or guarantee assets. The customers are interested in the accounting information
provided from the current position of the business organization and give an opinion about the
future of the company (Javed, R., 2023). A company's reputation for its customers can be
improved or diminished by accounting information (Javed, R., 2023). A few instances include
how shifting customer's demands might impact the company's inventory and product pricing.
Precise demand projections influence pricing strategies and inventory management choices,
which in turn impact inventory values and sales capital rates.

In addition, suppliers are individuals or business entities who usually sell goods or raw
materials to others in the form of debt repayment, sometimes referred to as commercial
creditors (Javed, R., 2023). Suppliers use accounting information to generate an idea of a
company's future debt repayability and establish long-term business partnerships, so they
want to check its cash flows and operations (Javed, R., 2023). In some cases, changes in supplier
prices directly affect inventory costs. If the supplier increases the price of the raw material, it
results in an impact on the sale price and the valuation of the inventory, which leads to an effect
on the company's financial statements.

2.4 The roles and importance of Accounting as an information system

2.4.1 Introduction of Accounting Information System

Figure 2: The accounting information system (Atrill And McLaney, 2020)

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Accounting Information Systems (AIS) is a process to collect, record, store, and process data
to generate information for decision-makers (Accountingedu, 2021). Accounting information
systems are a set of components that are related to each other, interact with goals, and can use
advanced technology to create and maintain a system that has a strong impact on corporate
strategy and culture (Accountingedu, 2021). With another understanding, according to
McLaney and Atrill (2020), accounting is considered to be the provision of services to
"customers", in other words, accounting is part of the enterprise's overall information system.
Users, both within and outside the enterprise, make decisions regarding the allocation of scarce
resources. These resources frequently require accounting information as the basis for decisions
in order to be allocated successfully. The accounting information system consists of four stages
that need to have certain features common to all information systems in the enterprise,
including the following stages: First, identifying and capturing relevant information involves
gathering and identifying pertinent data. Second, recording, in a systematic way, the
information received in a logical and methodical manner. Third, analyzing and interpreting
information involves tasks such as evaluating and correctly interpreting the information
collected. Lastly, the process of providing information in a way that is appropriate for the needs
of the user.

As you can see, McLaney and Atrill (2020) argue that in the four sequential phases of the
accounting information system, the first two phases involve preparation while the last two
involve the use of income information. The factor that emphasizes decision-making is mainly
the last two elements of the process: analysis and reporting of financial information. Instead of
concentrating on how information is recognized and recorded, discuss how it is used and
beneficial to users. Most people process financial data using computer systems. According to
Paul M. Collier (2003), three of the roles of accounting information systems are planning,
control, and decision-making. It is essential for many because it allows managers to use
financial and non-financial information to develop and realize strategies by planning for the
future as well as making decisions about products, services, and prices to ensure that plans are
implemented and checked for results. In addition, accurate information is needed to make
decisions and judgments about the company's financial position and profitability potential.

2.4.2 Interrelationship between Accounting Function and Marketing Function

The interrelationship between the Accounting and Marketing functions within an

organization is crucial for its success. Despite having distinct roles, they are related to one
another and have several effects on one another:

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According to Mohammed T. Nuseir (2019), an accounting system is set up in every enterprise
to monitor the financial situation of that enterprise. Using the collected financial statements,
the accounting department supports the leadership in determining the profitability of a
business. Help estimate costs, forecast revenue, and set actual budgets that fit your marketing
strategy. The accounting and marketing departments work closely together to track trends in
business as well as manage and deal with sales promotions launched by the marketing
department. For example, an ABC company is about to launch a new product, and the
marketing department needs to look at accounting data on production costs, labor, and general
costs. Based on this, the marketing department decides the competitive price strategy for the
product.

Mohammed T. Nuseir (2019) states that accounting and marketing work together to control
costs and monitor developments and criticisms to evaluate the effectiveness of different
marketing strategies and choose the most suitable strategy. By estimating revenue and
expenditure, the accounting department can inform the associated cost units of their projected
spending limits and their (cost center) operations. Based on accounting data evaluate the
campaigns' effectiveness and apply intelligent adjustment bases depending on important
financial indicator performance. For instance, in the case of firm ABC, the accounting
department can assess the success of marketing-driven promotions. The accounting
department may determine that the marketing campaign's expenses exceed the business's
return on investment, even in the event that income from the campaign remains consistent.

Mohammed T. Nuseir (2019) states that accounting helps the company develop budgets and
provides information related to certain decisions that affect the company's profitability.
Marketing focuses on corporate image, brand, and customer relationships. Between marketing
and accounting, there's a duplicate that's management accounting. Managerial accountants
assist in the creation of new goods, uphold the company's financial reputation in dealings with
shareholders and the media, and provide guidance on prudent financial choices concerning
marketing and public relations initiatives. This results in joint decision-making between
marketing and accounting to maximize performance-based budget allocation and reallocate
resources to the most successful marketing avenues. Giving an example ABC company, the
decision to invest in a new market segment, accounting provides financial data on potential
returns, enabling the marketing department to make informed decisions about the feasibility
of an investment.

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 2.4.3 Interrelationship between Accounting Function and HRM

The interrelationship between the Accounting function and Human Resource Management
(HRM) is vital to the success of any firm. Their collaboration impacts various aspects of the
business:

As per Yassir El Fkid (2023), the HR division works in tandem with the accounting division to
create staff plans and expenses, compute employee benefits, and efficiently oversee salaries.
Additionally, the HR division is crucial to maintaining labor law compliance, which has an
impact on financial reporting obligations. Accounting, on the other hand, offers HR managers
useful information with which to work when deciding on payroll arrangements, allocating
funds for training and development initiatives, and evaluating the financial implications of
recruitment tactics. As an illustration, ABC company, the HR division that projects the
business's hiring requirements for the upcoming year, collaborates with the accounting
division to budget for hiring, employee welfare, and training.

As per Yassir El Fkid (2023), accounting and human resources management (HRM) work
together to ensure that an organization's financial reporting and compliance are met. The HR
division monitors the costs of every employee's expenses, including pay, benefits, and other
staff-only savings. Furthermore, HRM is critical to maintaining the accuracy and dependability
of financial data as well as compliance with applicable laws, rules, and industry standards. By
guaranteeing that the staff is qualified and equipped to undertake accounting duties, good HRM
procedures directly affect financial reporting. For example, ABC company, the HR department
planning training programs, and the accounting department that records all the costs incurred
helps to measure the effectiveness of these initiatives against the expected costs.

As per Yassir El Fkid (2023), the collaboration between the HR and Accounting departments is
crucial to improving the efficiency of the organization. Accounting helps the HR department
make strategic decisions including hiring, allocating, developing, and mining employees in a
cost-saving way that takes into account the cost parameters of the business. Making decisions
about how to implement the workforce that can be profitable and accounting for the company
is employee retention. By viewing employees as an asset, organizations can better understand
their true value and make informed decisions about investing in training and development
programs.

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III. The Context And Purpose Of Financial And Management
Accounting
3.1 Distinguishing between financial accounting and management accounting
in terms of purpose and scope

Figure 3: Management and financial accounting compared (Atrill And McLaney, 2020)

Financial Accounting:

Financial accounting is used to report the company's financial situation to external

stakeholders (Mason, 2017). This makes it easier for the board of directors, hedge funds,
potential investors, creditors, and financial institutions to examine the company's historical
performance over a particular period of time in the past. These reports are due to be submitted
once a year (Mason, 2017).

The purpose of Financial Accounting is the gathering and reporting of financial data for
external stakeholders (creditors, contractors, etc.) on the operational performance, financial
status, and cash flows of the firm (Kenton, 2023). Management can use reporting calculations
to figure out how to manage a business with management accounting. The commonly used
technique for generating financial results for external usage is financial accounting (Kenton,
2023).

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The scope of centralized financial accounting provides historical records of the company's
performance and financial position, with financial operations strictly adhering to rules to
ensure accuracy and transparency. The information presented in the financial statements must
be audited by an independent auditor to verify its accuracy (GeeksforGeeks, 2023).

Management Accounting:

Management Accounting is an accounting system that collects, classifies, and understands

financial and accounting information to help managers make effective business-related
decisions (Geeksforgeeks, 2023). Because corporate leaders need to make operational choices
in a short amount of time, management accounting must be based on projecting future markets
and trends (Mason, 2017).

The purpose of Management Accounting is provides financial information data to generate

reports tailored to the needs of specific managers and departments in the organization to
support decision-making, planning, control, and future-oriented performance assessment
(Geeksforgeeks, 2023).

The scope of centralized management accounting involves analyzing, interpreting, and

communicating financial data to an organization. Management accountants have greater
flexibility in the way they report financial data, and may provide reports that are more
pertinent and helpful for certain managers and departments. These reports may include budget
forecasts, cost analysis, false analysis, etc (Geeksforgeeks, 2023).

The difference between Financial accounting and Management accounting:

According to McLaney and Atrill (2020), management accounting and financial accounting have
the following fundamental differences:

The nature of the reports produced: Reports from financial accounting tend to be general
purpose. As was already indicated, their primary target audience is lenders and owners who
offer financing, but a wide range of other external users should also find value in the financial
information they provide. Reports on management accounting, however, are often specific-
purpose reports. They are made for a certain management and/or with a specific choice in
mind.

Level of detail: Users may get a broad picture of the business's performance and position over
time via financial accounting reports. As a result, details are frequently lost and information is

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aggregated, or put together. However, management accounting reports frequently offer
managers a great deal of data to assist them in making a specific operational choice.

Regulations: The law and accounting rule makers impose accounting rules on financial
accounting reporting for numerous firms. These rules frequently call for the adoption of a
uniform format as well as standard content. In contrast, management accounting reports are
not bound by regulations and can be tailored to specific managers' requirements.

Reporting interval: Financial accounting reports are prepared annually for most businesses.
Otherwise, management accounting reports are regularly prepared at the request of managers.
For example, sales managers may require daily, weekly, or monthly sales reports to monitor
performance closely.

Time orientation: Financial accounting reports appear to be outdated compared to the

management accounting report. The financial accounting report reflects the performance and
position of the business at the previous time. Otherwise, management accounting reports often
provide detailed information about the company's past and future performance.

Range and quality of information: Financial accounting reports focus only on information
that can be quantified in money and emphasize the use of objective, verifiable evidence when
preparing reports. Otherwise, management accounting reports generate reports that contain a
variety of non-financial information such as the physical volume of inventories, number of sales
orders received, etc. In addition, management accounting reports use less objective and more
difficult-to-verify information, but can still provide the information they need to the manager.

IV. The Organizational Constraints And Threats Following The

Concepts Of Accounting Regulations And Principles As Well
As Ethics In Accounting
4.1 Ethics in Accounting

According to Brinkman J. (2002), ethics is the study of good and evil, wrong and right, evil and
goodness. Therefore, ethics is the study of moral concepts, human conduct, and the endeavor
of humanity to discriminate between right and wrong. Organizations that uphold ethical
standards are able to preserve the integrity of financial transactions, corporate operations, and
employee relationships all of which have an impact on performance and the reputation of the
organization.

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According to IFAC (2008), a skilled accountant must follow five fundamental principles of
ethics in accounting:

• Integrity: All professional accountants are required under the integrity principle to be
open and truthful in their commercial and professional dealings. Honesty and fair
dealing are other prerequisites for integrity.
• Objectivity: Due to favoritism, conflicts of interest, or undue influence from others,
professional accountants are required under the concept of objectivity to maintain their
neutrality when making professional or business decisions.
• Professional competence and due care: In order to guarantee that a client or
employer obtains effective professional services based on current changes in practice,
law, and procedures, a professional accountant must maintain the degree of professional
skills and expertise that is necessary. A professional accountant must operate with
diligence and in compliance with relevant technical and professional standards while
rendering such services.
• Confidentiality: Unless required by law or their professional obligations, an accountant
should protect the confidentiality of any information they get via their expertise and
business relationships. They should not release such information to third parties
without proper and specific permission. Accountants and others should not utilize the
information they have acquired via professional and commercial relationships for their
own personal gain.
• Professional behavior: A professional accountant needs to abide by all laws and
guidelines and abstain from any conduct that might harm the profession's reputation.

4.2 Accounting Assumptions

According to Paul M. Collier (2003), there are some basic accounting assumptions that are
generally accepted by the accounting profession as being essential for recording and reporting
financial information:

Going-Concern Assumption: The financial statements are produced with the assumption that
the company will stay open for business. Many companies have folded up shop shortly after
their concern financial reports were completed, leaving the asset values on the balance sheet
unrealizable. The ongoing functioning of a firm is a crucial premise since asset value prices
following a business's dissolution are unlikely to equal the previous cost.

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Monetary Unit Assumption: Accounting keeps track of transactions and presents information
in financial terms, notwithstanding the significance of human, technological, environmental,
and market elements. This offers a constrained yet significant viewpoint on corporate
performance. Accounting data is criticized for being a sluggish indication of performance.
Needs take into account performance metrics that aren't based on money since they are more
likely to show performance-leading indications. Prioritizing financial figures above other
factors can lead to the neglect of crucial aspects such as staff morale, innovation, customer
happiness, and service quality, all of which significantly affect the operation of businesses.

Business Entity Assumption: The business and its owners are two distinct entities; financial
reports are generated for the business independently of the owners. This is especially crucial
for owner-managed companies as they need to keep their personal funds apart from the
company's finances.

Time Period Assumption: A financial year's worth of financial data is generated. The duration
is purely random and unrelated to business cycles. Usually, businesses close their fiscal year at
the end of the national or calendar fiscal year. Since the financial year is nothing more than the
amount of time it takes for the Earth to complete one full rotation around the Sun, the business
cycle is more significant.

4.3 Accounting Principles

These are established in generally accepted accounting principles (GAAP) and are an
important part of the accrual foundation of accounting (Tuovila, A., 2023). This implies that
income is not always reported when cash is received; rather, it is documented on the company
performance report in the conducted and earned exam. Must be complete or substantially
completed to be included in the turnover during the accounting period when the revenue-
generating activity takes place (Tuovila, A., 2023). Last but not least, the matching principle
requires that the income and the expenses related to it occur during the same accounting period
(Tuovila, A., 2023).

Matching principle is the principle that income is closely related and recognized when it can
be sought, cost when it arises to generate the revenue rather than on a cash basis (Collier, P.,
2003). An annual financial performance picture of a corporation is more meaningfully
presented by the volume accounting system. However, the preparation of an accounting report
requires certain assumptions about the recognition of income and expenditure (Collier, P.,
2003).

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The idea that companies should rate large fixed assets such as real estate and machinery, should
be valued at the cost of acquisition rather than their current market worth (Treece, D., 2023).
One of the four Generally Accepted Accounting Principles (GAAP) in the United States is the
costing concept, which is a more careful technique for valuing big assets (Treece, D., 2023).
Equitable and fair pricing of the company's assets is a requirement of the cost principle. The
initial purchase price of an asset stays stable over time, in contrast to reasonable market value,
which is frequently subjective and reliant on the market (Treece, D., 2023). The cost principle
can be used to maintain the balance sheet constant between periods and remove the obligation
to update the financial statements to the current fair market value (Treece, D., 2023).

Paul M. Collier (2003) states that the principle of full disclosure is that all relevant and
necessary information to evaluate a business's financial statements must be provided in the
company's public domain. The accounting standards and principles applied to the financial
statements will be described in the financial report. The regulation, on the other hand, would
be hard to since it would overwhelm analysts and investors with data. It's easier to find a way
to break the rules that are set in clear terms than the more general principles. The way
disclosure requirements are interpreted affects audits and can result in criminal charges being
brought against the accounting firm.

4.4 Constraints and Threats

Materiality relates to an item’s impact on a firm’s overall financial condition and is used to
determine whether business transactions are important to the financial results of a business
(Bragg, 2023). The materiality constraint is a key consideration in the process of closing the
books and helps accountants by allowing them to use the simplest transaction recordation
alternatives for smaller items (Bragg, 2023). If a transaction is large enough to exceed the limit,
then the transaction will be registered and therefore presented in the financial statements and
vice versa, if it does not meet this criterion, then it may be recorded or not, depending on the
case (Bragg, 2023).

A conservative approach tends to recognize the downside of events rather than the upside
(Collier, P., 2003). Accounting is a prudent practice, in which the sometimes over-optimistic
opinions of non-financial managers are discounted (Collier, P.,2003). Conservationism orders
that when suspecting something, choose a method less likely to exaggerate wealth and income
as much as possible. Nonetheless, 'creative' accounting can occasionally result from analysts'

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pressure on public corporations to fulfill the profitability expectations of the stock market
(Collier, P., 2003).

4.5 Overview of GAAP from FASB, IFRS from IASB, VAS from VmoF

GAAP from FASB

GAAPs are common accounting rules to be followed when a U.S company prepares financial
statements for distribution to people outside the company issued by the Financial Accounting
Standards Board (FASB) (Averkamp, 2023). The general rules range from the principles, the
basics to the detailed rules, set by the FASB for complex financial transactions and the
organizations to the generally accepted accounting principles in the Accounting Standards
Codification (ASC) (Averkamp, 2023).

IFRS from IASB

The International Financial Reporting Standards (IFRS) are a set of accounting rules for
financial reporting consistent, transparent, and comparable across borders (Palmer, B., 2022).
The International Accounting Standards Board (IASB) publishes the IFRS. The International
Accounting Standards (IAS), which are the previous standards that the IFRS superseded in
2001, are occasionally mistaken for the IFRS system (Palmer, B., 2022).

VAS from VmoF

Vietnamese Accounting Standards (VAS) is a financial reporting and accounting guidebook that
includes templates for financial statements, standard account charts, accounting numbers, and
certificates in addition to comprehensive instructions on how to record double accounting for
particular transactions (Shira, D. and Associate, 2020). The implementation of IFRS in Vietnam
is the responsibility of the MoF. Vietnamese Accounting Standards (VAS), which are the
country's version of generally accepted accounting principles (GAAP), serve as the main set of
instructions for creating and maintaining books and accounts (Shira, D. and Associate, 2020).

4.6 Discussing VAS from the Ministry of Finance

Vietnam has gradually aligned its accounting standards with international practices to enhance
transparency, comparability, and global integration of its financial reporting system. Vietnam’s
government currently has 26 VAS accounting standards based on IFRS (Shira, D. and Associate,
2020). To provide guidance for local and foreign enterprises in Vietnam on these standards, the
Ministry of Finance (MoF) recently issued Circulars, No. 200/2014/TT-BTC and No.

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202/2014/TT-BTC, which enhance the comparability and transparency of corporate financial
statements and bring the two systems closer (Shira, D. and Associate, 2020).

Vietnam uses the International Financial Reporting Standards (IFRS) as the basis for its own
system, the Vietnamese Accounting Standard (VAS) issued by the Ministry of Finance (MoF),
yet there are key differences between the two.

An example of IFRS is based on principles while VAS is based on rules (Misaamis, 2023). This
results in a more rigorous principle-based system while rule-based systems are somewhat
more rigid. For instance, while VAS mandates that all businesses use a single accounting
system, financial reporting forms and accounts are required. In contrast, IFRS permits
businesses to create their own accounting systems, financial forms, and accounting documents
based on the unique needs and governance requirements of the business itself (Misaamis,
2023). In addition, there are differences in the presentation of financial statements, with IFRS
providing only general guidelines on how to present financial reporting without any mandatory
account system regulations and financial statement forms such as VAS. For example, VAS does
not allow the cost of loss of assets to be recognized (Misaamis, 2023).

The MoF is responsible for the introduction of IFRS in Vietnam. This shows that the finance
department is gradually converging VAS into IFRSs, the finance department is working to close
the remaining gap between VAS and IFRS in order to achieve more worldwide harmonization
and integration (Misaamis, 2023). Before the Prime Minister's assent, the Ministry of Finance
also unveiled a draft IFRS road map that is broken down into three parts until 2025 (Shira, D.
and Associate, 2020). The adoption of IFRSs will bring no minor benefit to the Vietnamese as
they can access international capital markets. It enhances the capacity to contrast Vietnamese
financial statements with those of other nations globally. In addition, it increases transparency
and comparability in Vietnam's financial statements. However, will also face no less challenges,
especially when there are many differences between IFRS and VAS. In order to comply with
IFRS financial reporting, businesses must develop an ERP software system that can capture all
of the data needed by this standard system (Misaamis, 2023). For instance, developing this
software system comes at a significant expense for some industries like banking and insurance.
In general, Vietnam is benefiting from the convergence of IFRS and VAS.

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V. Critically evaluating the Role Of Accounting In Informing
Decision-Making To Meet Organizational, Stakeholder, And
Societal Needs Within Complex Operating Environments
A Cuong Mineral Group (ACM), is a company that mainly operates in the extraction and
collection of hard coal, and fine coal; mining of iron ore, sand, stone, and stones; production of
coals, cement, limestone, and rubber; manufacturing of ganglion, steel, iron. Established in
1966 with a charter capital of 1.6 billion VND (Bsc, 2023). A model case of practice emphasizes
the important role of accountants in providing information that is critical to informed decision-
making. A Cuong Mineral Group, a wealth operator in Vietnam, operates in a dynamic and
complex industry, facing many challenges. As you can see, accountants assess financial risks
associated with mining and identify potential financial concerns (Annual Report, 2022). By
applying project-by-project accounting, enhancing risk management, strengthening financial
reporting, and enhancing transparency in financial statements, the interests of stakeholders are
protected in the context of complex operations and potential market volatility (Annual Report,
2022).

In the legal context, A Cuong Mineral Group, the board of directors for financial compliance and
sponsors (Annual report, 2022). In addition to being directly accountable to the law and
carrying out financial work rigorously. Moreover, accountants play an important role in solving
complex issues, and A Cuong Mineral Group is subject to complex and restrictive planning
regulations that require careful compliance and clear strategic planning (Annual report, 2022).
By providing A Cuong Mineral Group with financial data for strategic planning, cost, revenue,
and profitability analysis of mining projects or product lines. Leads to informed decision-
making on resource allocation, expansion strategies, and investment priorities in various
mineral projects (Annual Report, 2022). Accountants also play a role in the decision-making of
environmental measures, by monitoring and reporting on environmental impact assessments,
compliance costs, and sustainability initiatives in mining operations to meet social demands for
responsible mining and environmental reduction (Annual Report, 2022).

However, A Cuong Mineral Group has violated the administrative conduct in Decision No.
554/QD-XPVPHC. It was issued in the amount of VND 100 million for the non-publication of
information to be published under legal provisions for the reviewed semi-annual financial
statements in 2021 and on the electronic information page of HNX for the audit financial report
in 2020 (KL, 2022).

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 Overall, A Cuong Mineral Group demonstrates the important role of accounting in making
timely decisions and providing reliable data. In the operating environment of the mining
industry, A Cuong Mineral Group has faced many major challenges. Computational accounting
as well as decision-making on mining projects are required, in addition to ensuring
transparency in reporting to stakeholders, assessing risks associated with mining activities and
facilitating responsible business operations, and accounting support to meet organizational
goals, stakeholder expectations, and social needs in the complexity of the operating
environment of the mining industry.

VI. Conclusion
In short, at the end of the internship, asked to present all the above activities, this blog post
provides about the concepts of accounting and what accounting functions need to be. What's
more, it lists those who use key accounting information. In addition, there is a distinction
between managerial accounting and financial accounting, the interrelationship of accounting
with other departments in meeting organizational, stakeholder, and societal needs and
expectations. Finally, this blog seriously assesses the role of accounting in providing
information for decision-making to meet the needs of organizations, stakeholders, and society
within the complex range of operating environments.

VII. References
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