ASSIGNMENT 1

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 5: Accounting Principles (5038)

Submission date 13|10|2022 Date received (1st submission) 13|10|2022

Re-submission date Date received (2nd submission)

Student name HOANG THI HA GIANG Student ID BH00116

Class BA0502 Assessor name

Student declaration

I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that making a
false declaration is a form of malpractice.

Student’s signature: Giang

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 ‘The role of accounting in an organisation’
October,13th 2022 BY HOANG T. HA GIANG

Hello dear readers of the blog,

Currently, we are big accounting company doing substantial business consulting work for customers,
working with SME units, and providing accounting and financial services to corporate clients. Enterprises
often have revenues ranging from 10 billion VND to 100 billion VND.

The company's headquarters are now located in central London, with UK branch offices in Birmingham
and Southampton. Last year, the group's sales were £200 million, with 25% coming from markets outside
the UK, mostly in Southeast Asia, including a tiny branch office in Vietnam. The organisation also has a
philosophy of targeting customers who are smaller enterprises that they believe have the ability to expand
fast.

This blog will be used to sell and promote our accounting services to both new and existing clients. The
blog discusses and creates material on the topic "The role of accountants in a organisation"
1. The Role of Accounting in an organisation

Accounting is often considered the "language of business". Why? Because it conveys a lot of information that is
required by owners, managers and investors to evaluate the financial performance of a company. Accountants exist
to assist stakeholders in making better corporate decisions by presenting them with financial information. Obviously,
you wouldn't try to run a company or make investment decisions if you didn't have accurate and timely financial
information, and accountants compile this data. More importantly, accountants ensure that stakeholders understand
the importance of financial data and engage with both individuals and organizations to assist them in using financial
data to solve business challenges. . The difficulty is in evaluating, interpreting, and communicating data. Of course,
you also have to communicate things clearly while effectively connecting with colleagues from a variety of business
sectors. Accounting is defined as the process of collecting, processing and distributing economic and financial
information; is monetary information and economic and financial activities occurring in a particular company; and
made available to users to assist them in making successful economic decisions. Ha, H. (2021)
 Fields of Accounting

 According to the practice part

Payment accounting

A payment accountant is defined as the person who makes receipts and expenditures; directly monitors and
manages money; and accounts for transactions or emergent economic transactions connected to the enterprise's
revenue and expenditure operations. A payment accountant's job is to use cash flow to pay things both inside and
outside the firm. (Bragg, 2022)

Banks Accounting

Banking accounting is the activity of describing, classifying, and evaluating financial transactions connected to
monetary transactions, credit, and other services provided by a bank in order to offer information on the bank's
operational position. In addition to delivering vital information to stakeholders, it serves as the foundation for the
bank's strategic and governance choices. (Tripp, 2021)

Liabilities accounting

The amount owing to the next period of the firm while making payments with another individual or organisation in
the process of purchasing and selling products, goods, and services is referred to as corporate debt... Debts may
accumulate. It will allow the buyer to make the purchase without having to pay immediately, whether the consumer
is buying but unable to pay in full or the seller when they want to sell the items. (Jane, 2021)

Inventory accounting (goods - cost):

A warehouse accountant is a role in which accountants do comparable activities to revenue accounting, salary
accounting, payment accounting, and so on. primary duty for controlling/reconciling invoices and documents,
monitoring import and export status, comparing data on the books to data at the warehouse Managing issues that
arise in the warehouse assists firms in minimising losses and potential dangers. (Nhi, 2021)

Revenue recognition:

Revenue Accountant is an accounting position that is responsible for creating statistics, synthesising sales
documentation, and regulating the financial state of the company's clients. (Dang, 2022)

General Accounting:

The general accountant is the person in charge of recording, reflecting, and generating general statistics on figures
and data on accounts, accounting books, and financial statements in accordance with the enterprise's value
requirements. (Gaston, 2021)
Fixed asset accounting:

Accounting for fixed assets in a business include accountants participating in the inventory and re-evaluation of
fixed assets in compliance with state legislation, preparing fixed asset reports, and conducting analysis. situation of
equipping, deploying, maintaining, and utilising fixed assets in order to increase fixed asset economic
efficiency.(Ranjan et al., 2022)

Cost Accounting

Cost accounting is a branch of accounting that collects, processes, examines, analyses, and disseminates economic
and financial data. (Tuovila, 2022)

Tax accounting:

Tax accounting is a corporate accounting term, similar to warehouse accounting, billing accounting, etc. A tax
accountant's job is to collect money. Enter, collect invoices, purchase and sale documents, declare and pay taxes,
balance expenses to minimize payable taxes ... (Kagan, 2022)

 By the way of taking notes

Bookkeeping:

Single accounting means recording and reflecting on each separate accounting account, without having a reciprocal
relationship on it with other accounts.

Double-entry bookkeeping:

Double accounting is the recording and reflection of business and financial transactions into accounting accounts
according to the objective relationship between the accounting objects and the correct reciprocal relationship
between the accounting accounts and the accounting records. together.

 According to the function of providing information

Financial accountant:

Mainly providing information outside the unit, the business is the main: shareholders, authorities such as taxes,
inspectors... creditors, banks through financial statements, tax reports.

Management accounting:

Mainly only serving within the enterprise, providing information to make decisions in production and business
activities of enterprises. (Bmtuan, 2020)
 Who Uses Financial Accounting Information?

Owners and Managers

In summarizing the outcomes of a company’s financial activities over a specified period of time, financial
statements are, in effect, report cards for owners and managers. They show, for example, whether the
company did or didn’t make a profit and furnish other information about the firm’s financial condition.
They also provide information that managers and owners can use in order to take corrective action.

Government Agencies

Businesses are required to furnish financial information to a number of government agencies. Publicly
owned companies, for example—the ones whose shares are traded on a stock exchange—must provide
annual financial reports to the Securities and Exchange Commission (SEC), a federal agency that regulates
stock trades. Companies must also provide financial information to local, state, and federal taxing
agencies, including the Internal Revenue Service.

Other Users

A number of other external users have an interest in a company’s financial statements. Suppliers, for
example, need to know if the company to which they sell their goods is having trouble paying its bills or
may even be at risk of going under. Employees and labor unions are interested because salaries and other
forms of compensation are dependent on an employer’s performance.

In the next section of this article, I will explore accounting career prospects as well as the skills and
abilities necessary for an accounting function. Ha, H. (2021)
Investors and Creditors

If you loaned money to a friend to start a business, wouldn’t you want to know how the business was
doing? Investors and creditors furnish the money that a company needs to operate, and not surprisingly,
they feel the same way. Because they know that it’s impossible to make smart investment and loan
decisions without accurate reports on an organization’s financial health, they study financial statements to
assess a company’s performance and to make decisions about continued investment.

Figure 12.2 Warren Buffet

According to the world’s most successful investor (and third-richest

individual), Warren Buffett, the best way to prepare yourself to be an
investor is to learn all the accounting you can. Buffett, chairman and
CEO of Berkshire Hathaway, a company that invests in other
companies, turned an original investment of $10,000 into a net worth
of $35 billion in four decades, and he did it, in large part, by paying
close attention to financial accounting reports.John Price, “The Return
of the Buffetteers,” Investor Journal, August 1998,
http://www.sherlockinvesting.com (accessed July 17, 2010).

Photo by Kevin Parry/WireImage/Getty Images

 The interrelationships between the accounting function and other functions:

Accounting Department and Resource Department
The Resource Department is concerned with proper recruitment, selection, rotation training, time keeping,
time scheduling, salary setting, payroll preparation, idle time and working hours. Work with close
coordination of the accounting department to achieve the effectiveness of the human resource policy. The
accounting department proposes ways and means to reduce the costs associated with employees working
in the organization.
Accountants can propose incentives to pay employees, which will attract workers to earn more wages and
salaries, and at the same time reduce labor costs per unit. In this way, both departmental HR and
accounting can be helpful in developing a satisfied and willing workforce for the organization.
Accounting Department and Production Department
The accounting department and the production department are closely related. The manufacturing
department is concerned with converting raw materials into finished products. The accounting department
helps in estimating various costs associated with the production process such as the cost of raw materials,
labor costs, and other costs associated with the production of a product.
According to the estimate, the production department timely arranges materials, labor and other services
necessary for the production process so that the production process goes smoothly and without
interruption. The accounting department is responsible for identifying, controlling and reducing the cost of
the manufacturing process.
Necessary cost-related information related to the production process both estimated and actual is collected
by the cost accounting department from the production department and sent to the management to perform
cost control. .
Accounting Department and Purchasing Department
Procurement is about making sure to buy the right materials at the right low price at the right time from
the right supplier and without overinvesting in materials. The continuous availability of materials must be
ensured so that production can not be delayed when the material is desired.
In these respects, the accounting department can help the purchasing department by setting different
material levels such as minimum, maximum, reorder level, economic order quantity, etc. material.
Accounting Department and Finance and Accounting Department
There should be close coordination between the cost accounting department and the finance and
accounting department to reduce and control costs. The finance department depends on the accounting
department to estimate the costs needed for production and marketing purposes. Similarly, raw materials
and other supplies cannot be purchased at the minimum possible price if the finance department does not
provide the necessary financing by the time it is requested.
The accounting department helps the financial accounting department in preparing the budget. It also
helps the financial accounting department to make the payment of bills by validating them. Past figures
are provided by financial accounting to accountants to make estimates for the future. The accounting
department and the financial accounting department depend on each other to reconcile profit by account
and profit by financial account.
Accounting Department and Director's Department
Through the cost calculation to calculate the product cost, then report to the Board of Directors on the
profit and loss situation to take measures to adjust the plan.
Accounting Department and Marketing Department
The marketing department is mainly concerned with marketing products at competitive prices. The
Marketing department obtains cost information from the accounting department to set a reasonable selling
price that is acceptable to the consumer. To consider alternative accounting methods, information on the
cost categories associated with different methods is provided to the marketing manager by the accountant.
Similarly, on the basis of information provided by the marketing department, the cost accounting
department will recommend the cheapest and most effective method of marketing a particular product.
Accounting Department with the Deputy Director in charge of construction and the Deputy Director in
charge of business
The accounting department makes a report to report the cost of using materials, equipment, expenses to
use the construction machine, and reports on the actual situation, the plan of production and business
expenses on the surplus level. products in production
Accounting Department with Planning Department
The planning department is responsible for providing quarterly and annual plans for each item along with
construction materials estimates for production costs and cost plans. Provide an estimate basis for each
cost item so that accountants can plan to purchase and reserve supplies.
Compare and combine to evaluate the results of completing the plan targets. At the same time, with the
planning department, we organize advanced methods of planning and accounting to determine product
costs.
An important role for accountants is to perform cost-benefit analyzes related to various financial metrics,
such as revenue earned or costs saved as a result of the decision to pursue a decision. determined.
Specifically: quantity, type, cost, profit, capital, market.... It can also include intangible benefits and cost
effects from a decision, such as customer or employee satisfaction; to identify existing costs and provide
managers with insights for forecasting, long-term business planning to make sound and effective
economic decisions.

"Vietnam Airlines plans to sell a series of assets including aircraft and engines to improve business cash
flow and eliminate accumulated losses..."
Vietnam Airlines Corporation - Vietnam Airlines (HVN)3 announced its semi-annual financial report
2021. As of the end of June 30, Vietnam Airlines' short-term liabilities exceeded current assets by the
amount of VND 34,664 billion, overdue payables of the Corporation is VND 14,805 billion and negative
equity of VND 2,787 billion. (Trang, 2021)
During the six-month period ended, the corporation suffered a consolidated loss of VND8,622 billion and
net cash flow from operating activities of VND724 billion after the first half of the year. The epidemic
continues to negatively affect the financial situation and production and business activities of Vietnam
Airlines. (Trang, 2021)
The audit unit assessed that the Corporation's ability to continue operations will depend on the financial
support from the Government and the extension of loan payment from commercial banks and credit
institutions. , payables to suppliers and renters as well as the evolution of the Covid-19 epidemic.
These conditions and other matters indicate the existence of material uncertainties that may cast
significant doubt on the Company's ability to continue as a going concern.
Immediately after that, Vietnam Airlines implemented many financial solutions and restructuring to
balance cash flow, capital sources and maintain production and business.
In July 2021, Vietnam Airlines issued additional shares to existing shareholders to increase charter capital
with a scale of VND 8,000 billion. In which, the State Capital Investment Corporation invested VND
6,894.9 billion to buy shares under the purchasing power of State shareholders in Vietnam Airlines.
(Trang, 2021)
In addition, "In order to achieve the goal of increasing revenue, improving cash flow, eliminating
accumulated losses, creating investment sources for development, Vietnam Airlines focuses on improving
business efficiency with the sale, sale and lease of services. (SLB) owns aircraft, and plans to divest part
or all of its capital in some enterprises," emphasized Mr. Duong Tri Thanh, General Director of HVN.
At the end of September 2021, Vietnam Airlines issued and offered 800 million shares from August 5 to
September 14, 2021 and ended with 796.1 million shares distributed to 27,627 shareholders, equivalent to
99 shares. .51% of the total number of shares offered for sale with the proceeds of more than 7,961 billion
dong. (Trang, 2021)
With the results of this share issuance, Vietnam Airlines has significantly supplemented capital and cash
flow, improved financial indicators to ensure that it meets the listing conditions on HOSE.
Managers are often faced with many different business plans. Decision making is often based on the
synthesis of many different sources of information, but in which accounting information often plays a
decisive role and has high reliability to help managers make effective economic decisions

 Career opportunities in accounting

Accounting students, after graduation, can take on many different positions:

- Specialist in charge of accounting, auditing, tax, banking transactions, controller, treasurer, financial
consultant, etc. at businesses in all fields
- Chief Accountant, Head of Accounting Department, Chief Financial Officer – CFO, Financial Manager
in all types of domestic and international businesses
- Researcher, Lecturer, Economic Inspector, etc.
 Required skills and competences for accounting roles.

Digital skills:
When it comes to accountants, the UK Government has announced a Making Tax Digital (MTD) policy
which aims to make it easier and more efficient to file taxes online. Aside from this, digital practices can
promote accuracy to make sure small businesses pay the right amounts.
This policy proves how critical it is for accountants to develop digital skills because most of their job is
transitioning to the digital space. If you can carry out your data collection and tax filing online, it can
make clients’ lives much easier.
Plus, digital practices allow you to store and transport important financial data easily. Overall, these skills
can streamline your process, taking a lot of the manual labour and data entry off your hands.
Even more, having digital skills can help you find and market yourself as an accountant. With these skills,
your business can only improve because you’ll be able to work more efficiently and handle more clients.
Technological skills:
The field of accounting is more technology-driven than many, and accountants need to stay up to date on
their knowledge. The staffing organization Robert Half notes accountants should have advanced Excel
ability, enterprise resource planning (ERP) experience, expertise in big-data analysis, knowledge of
business intelligence software, aptitude with Hyperion and a working knowledge of QuickBooks.
Moreover, many accounting firms invest in employee education programs, which ensure that their
employees stay up to date on emerging technologies.
Accounting professionals need to be motivated self-starters who can contribute new insights, manage
projects and motivate their team members, all while displaying solid leadership skills. Accountants may
also be expected to contribute fresh ideas and assist in improving the company’s methods and operation.
Leadership skills remain especially important when accountants need to make difficult financial decisions.
Accountants need confidence to convey important information to stakeholders. For example, they may
have to explain why a business needs to course-correct and reduce budgets for nonfunctioning
departments or initiatives.
People skills:
Analytical Ability: Accounting professionals must be able to read and interpret figures and data. This skill
could apply in a wide range of circumstances, from filling out tax returns to auditing data to finding
mistakes or fraud. Accountants have to be accurate, numbers-minded and analytical.
Analytical skills remain one of the most important skills for accounting professionals, especially for those
in disciplines such as forensic accounting. Forensic accountants analyze business transactions, review
financial documents, recover assets and conduct interviews. They use analytical skills to compile reports
outlining a financial crime utilizing data and graphs. In some cases, these professionals may have to
present their findings in court.
Critical thinking: Refers to the ability to implement knowledge to solve unforeseen problems.
Accountants who have honed their ability to think critically can solve problems objectively. Unbiased
decision-making can produce more even-minded solutions. Part of effective critical thinking involves
gathering various data points that accountants can use to find solutions to complex financial problems and
predict challenges that may impact a business in the future. For example, accounts need to be able to
adjust financial strategies in light of changing legislation.
Time management: Is crucial to the success of an accounting professional. This skill remains one of the
most difficult to hone, as even accountants with years of experience may struggle with time management.
Accounting professionals specializing in tax law understand the importance of keeping deadlines. Each
year during tax season, they must remain organized to provide tax advice to their clients and file all of
their tax returns on time.
Business skills:
Accountants are expected to interact frequently with other departments and participate fully in the day-to-
day functioning of the business. They therefore need excellent decision-making, strategic thinking and
negotiation skills — just like any other high-level professional. Their job responsibilities require them to
ensure major stakeholders remain aligned with the organization’s financial strategy. Accountants have the
ability to see the big picture and understand how their role impacts the organization as a whole.
2. The context and purpose of financial and management accounting

Management accounting
Management accounting has a primary role to help managers carry out their responsibilities. Because the
information it provides is intended for people who perform a variety of jobs, the informational reporting
format is very flexible. Reports are tailored to each manager's needs and the purpose of such reports is to
provide relevant, accurate, timely information in a format that will assist managers in their Give decision.
In preparing, analyzing, and communicating that information, accountants work with individuals from all
functional areas of the organization - human resources, operations, marketing and finance.
Financial accountant
Financial accountants are responsible for preparing an organization's financial statements - including
income statement, equity statement, balance sheet and cash flow statement - that summarize operating
results. the company's past performance and an assessment of the company's current financial position.
 Distinguishing between financial accounting and management accounting
FEATURES MANAGERMENT ACCOUNTING FINANCIAL ACCOUNTING

Nature of the reports produced Specific purpose General purpose

Level of detail Often very detail Usually broad view

Regulations Unregulated Usually subject to accounting

regulation

Reporting interval As short as required by managers Usually annually, semi-

annually or quarterly

Time Orientation Often based on projected future Almost always historical

information and past information

Range and quality of Financial and non-financial Financial information, great

information information, often uses non-verifiable emphasis on objective,
information verifiable evidence

The range of information provided by the financial accounting department will be larger and is
determined by the overall size of the organization but using only financial information, while the level of
information in management accounting is appropriate. suitable for each department in the company or to
each individual employee, but can use both financial related information and unrelated information.
Regarding the purpose of this field, financial accounting is used inside and outside the business, more
broadly according to Vietnamese or international accounting standards. Corporate governance is only
within the enterprise, very specific revenue and expenditure, not according to the model and general
regulations of the state but according to the regulations of the enterprise.
 The role and importance of accounting as an information system:
Accounting information system (AIS) is an arrangement that an organization or an entity adopts to collect,
manage, process, retrieve, and report its financial data so that it can be used by accountants, consultants,
business analysts, managers, auditors, regulators, tax agencies, and other financial officers.
It is a structured system where all the information of an organization (business entity or non-profit
organization) is collected, stored, and managed in the form of data which is thereafter processed to prepare
financial records of importance. (Nam, 2022)
Storage and processing of data: Science and technology are rapidly evolving, resulting in the rapid
growth of other economic sectors. This has created a significant difficulty for firms in terms of keeping
and maintaining financial-accounting data. The system's involvement will be maximised at this time. The
accounting information system is in charge of storing and processing data in order to give the most
valuable and trustworthy information for corporate strategic choices.
A link between operational and managerial systems: The accounting information system is designed to
serve as a link between the management and operational systems of organisations and businesses. In
addition to its primary function of storing and processing information, the system must also perform
general statistics in order to generate reliable accounting reports from which firms may address accounting
problems promptly.
Save both time and money: Accounting information systems contribute greatly to cost and time savings
for enterprises. Managers will prevent avoidable mistakes in information storage by adopting the system.
As a result, potential damages are limited, allowing firms to avoid significant financial losses.
To summarise, the accounting information system is rational, rigorous, and produces accurate,
timely, and trustworthy information using cutting-edge processing techniques that has helped to overcome
three significant issues confronting firms today. First, to support and increase enterprise competitiveness;
second, to assist enterprise decision-making; and third, to support professional and business activities to
help firms grow prosperous.
 In terms of objective and scope, financial accounting differs from management accounting.

IFRS

The IFRS is a set of standards developed by the International Accounting Standards Board (IASB). IFRS
governs how companies around the world prepare their financial statements. Unlike the GAAP, the IFRS
does not dictate exactly how the financial statements should be prepared but only provides guidelines that
harmonize the standards and make the accounting process uniform across the world.

Both individual and corporate investors can analyze a company’s financial statements and make an
informed decision on whether or not to invest in the company. The IFRS is used in the European Union,
South America, and some parts of Asia and Africa.(Ha, 2022)

GAAP

The GAAP is a set of principles that companies in the United States must follow when preparing their
annual financial statements. The measures take an authoritative approach to the accounting process so that
there will be minimal or no inconsistency in the financial statements submitted by public companies to the
US Securities and Exchange Commission (SEC). It enables investors to make cross-comparisons of
financial statements of various publicly-traded companies in order to make an educated decision regarding
investments.(Ha, 2022)
The different between IFAS and GAAP

IFRS GAAP

Local vs. Global Is used in more than 110 countries around Is only used in the United States.
the world, including the EU and many
Asian and South American countries

Rules vs. Principles Principles-based Rules-based

Inventory Methods First In, First Out (FIFO) First In, First Out (FIFO)

Last In, First Out (LIFO)

Inventory Write- Allow inventories to be written down to Allow inventories to be written

Down Reversals market value. If the market value later down to market value. Reversal of
increases, IFRS allows the earlier write- earlier write-downs is prohibited
down to be reversed

Fair Value Allows revaluation of the following assets Revaluation is prohibited except for
Revaluations to fair value if fair value can be measured marketable securities
reliably: inventories, property, plant &
equipment, intangible assets, and
investments in marketable securities

Fixed Assets Under IFRS, these same assets are initially GAAP requires that long-lived
valued at cost, but can later be revalued up assets, such as buildings, furniture
or down to market value and equipment, be valued at historic
cost and depreciated appropriately.

Investment Property Includes the distinct category of investment Has no such separate category
property

Lease Accounting Allows lessees to exclude leases for low- Has no such exception
valued assets Excludes leases of all intangible
Includes leases for some kinds of assets from the scope of the lease
intangible assets accounting standard
Constrains and threats of IFRS:
IFRS is less detailed than GAAP
Implementation costs for small businesses: The transition to IFRS for these businesses far outweighs the
benefits: It is widely held that SME managers see the costs of complying with accounting standards as
outweighing their benefits. While large enterprises can allocate the costs of applying IFRSs to their
companies abroad, small businesses that supply local (domestic) goods and services have to bear the brunt
of the costs. this cost and they will be under pressure to change. At the same time, since there are fewer
resources available to SMEs, it will take more time and effort to train their employees to be able to adopt
IFRS. This process means that small companies will be more burdened by this important accounting
change. Since the majority of businesses in Vietnam operate in the country, the time and cost to
implement this system will not mean much to them. Therefore, Vietnamese SMEs will always feel the
biggest disadvantages of applying IFRS.
Capital markets and the standards are not the same in different countries:Although some shareholders
will be more inclined to favor foreign businesses if we adopt IFRS, there is no guarantee that this will
happen to every investor. Authors Teri Yohn and Messod Beneish found that a "family bias" effect
persists after the global adoption of IFRS. Investors prefer to work with companies closer to home, so
foreign companies receive less direct investment even as the transition to a global benchmark system takes
place.
The flexibility of IFRS can provide many benefits, but it also creates a disadvantage by this. Organizations
can choose to use only the methods they want in their reporting, which allows their financial statements to
show the results they want. This flexibility makes it easier to manipulate returns on financial statements,
making it easier to conceal possible financial problems. IFRS can even lead to fraudulent activities, such
as changing inventory valuation methods to put more income into profit and loss statements to make the
company appear to be in a position to be better than reality.
Complex regulatory system: As businesses transition from the national standards system to the IFRS
system, there is the risk of costly mistakes or delays in the transition period will be more. As every
country can both declare IFRS adoption but also maintain its complex regulatory systems, there may still
be a requirement to provide multiple financial statements. That means the only difference in the global
adoption of IFRS is the variation in the presentation of international financial statements. If a country
declares IFRS adoption, businesses like this can apply immediately and they can spend their time on other,
more important things. (Ha, 2022)
Constrains and threats of using GAAP
While the generally accepted accounting principles strive to reduce inaccurate financial reporting and
guide companies in preparing accurate and clear financial data, these principles come with limitations that
should be taken into consideration when using them. The following are the most common limitations that
may arise when using GAAP
GAAP is not global: The generally accepted accounting principles are not globally recognized as the
standard for preparing financial reports. This can make using GAAP challenging for organizations that are
international or are becoming more globalized. Outside of the U.S., the International Financial Reporting
Standards is the set of principles most commonly used by organizations. Currently, the U.S.-based
Financial Accounting Standards Board and the International Accounting Standards Board are working to
develop globally uniformed standards.
One-size-fits-all approach: GAAP tends to take a "one-size-fits-all" approach rather than accounting for
the immense diversity that is often seen between companies. As a result, using these principles can be
difficult for companies in certain industries as well as for smaller businesses. For example, a small
business using the generally accepted accounting principles may find GAAP too complex and struggle to
incorporate all the principles into its basic financial records.
Long wait times for new standards: GAAP policy boards go through rigorous deliberation and an
extensive process to set new standards for the generally accepted accounting principles. As a result,
companies who use these principles may be negatively affected when new standards are being put into
place because they would have to wait for the standards to be approved before being able to implement
them.
 Ethics in Accounting
Five fundamental Principles of Ethical Behaviour:
Integrity – to be straightforward and honest in all professional and business relationships. Integrity also
means that members must not knowingly be associated with misleading information.
Objectivity – not to compromise professional or business judgements because of bias, conflict of interest
or undue influence of others. If undertaking an assurance engagement, members must also be and appear
to be independent.
Professional Competence and Due Care – to attain and maintain professional knowledge and skill at the
level required to ensure that a client or employing organisation receives competent professional service,
based on current technical and professional standards and relevant legislation; and act diligently and in
accordance with applicable technical and professional standards.
Confidentiality – to respect the confidentiality of information acquired as a result of professional and
business relationships. Confidential information must not be disclosed outside the organisation without
authority, unless there is a duty or right to disclose, or disclosure is in the public interest and permitted by
law.
Professional Behaviour – to comply with relevant laws and regulations and avoid any conduct that the
professional accountant knows or should know might discredit the profession.

Through this blog, we have given the definition and types of accounting, the important role of accountants
and who are the users of accounting information. Moreover, we also evaluate the role of accounting is
extremely necessary and essential in providing information to help managers make effective economic
decisions to meet the needs of stakeholders and society. in the environment of economic activities in
general and like Vietnam airlines in particular.
Seeing the importance of the accounting industry, we have set out the career opportunities of the
accounting industry, which are very diverse and necessary. To meet the needs of companies in this
industry, we also offer the necessary skills and competencies in accounting.
The role of accountants is to produce accurate and timely accounting information to help managers in the
company. It can be seen that the role and importance of an accounting information system is no different
from the need for an accountant in an enterprise. It is the basis for managers to rely on and make effective
economic decisions.
Above all, we help you better understand two of the thirteen types of accounting, financial accounting and
management accounting, by defining ngjiax and pointing out the differences. Through the blog you can
briefly understand that the range of information provided by the financial accounting department will be
larger and determined by the overall size of the organization, while the level of information in
management accounting is suitable for each department in the company or to each individual employee.
Related to the purpose of this field, financial accounting is the process of collecting and synthesizing
information and data to create financial statements for the general activities of a company and business.
Management is the management of the current financial situation of the company in order to make the best
judgments and solutions in the company's development plan.
And ethical principles like Integrity, Objectivity, Professional Competence and Reasonable Care,
Confidentiality, Professional Conduct that accountants should have.

Thank readers of the blog,

Giang
Hoang T. Ha Giang
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