NATIONAL ECONOMICS UNIVERSITY NATIONAL ECONOMICS UNIVERSITY CENTRE FOR ADVANCED EDUCATIONAL PROGRAMS BACHELOR’S THESIS ACCOUNTING FOR CONSTRUCTION COST IN TUONG LAN CONSTRUCTION JOINT STOCK COMPANY St[.]
NATIONAL ECONOMICS UNIVERSITY CENTRE FOR ADVANCED EDUCATIONAL PROGRAMS BACHELOR’S THESIS ACCOUNTING FOR CONSTRUCTION COST IN TUONG LAN CONSTRUCTION JOINT STOCK COMPANY Student : Phan Ngọc Anh Major : Accounting Class : Advanced Accounting 54A Student’s ID : 11120179 Supervisor : PhD Lê Kim Ngọc HANOI, 2016 ACKNOWLEDGEMENT With this section, I would like to express my sincere thanks to my family and Ph.D Le Kim Ngoc who supported me very much in writing this thesis First of all, I am grateful to my parents and my sister for always encouraging and helping me in both life and study Thanks to them, I have great opportunities of keeping studying university and accessing internship in practical working environment In addition, I also would like to say a sincere thank to Ph.D Le Kim Ngoc who is an expert in accountancy field In the internship period, she directed me so carefully and kindly Not only being received technical direction, I also have learned great deal useful knowledge from her I also would like to express my gratefulness to the Advanced Educational Program and Tuong Lan Construction Joint Stock Company The faculty puts so much effort in supporting students to have good internship opportunities with specific direction so that we student have the best intern condition I myself really appreciate the company Tuong Lan’s facilitation so that I can finish my internship period Despite of short-term internship time, I have gained so much experience from the company’s practical working environment that is useful for my future job Suporvisor: PhD Le Kim Ngoc Phan Ngoc Anh - Accounting 54A PREFACE Growing country went up by the road of industrialization and modernization of the presence indispensable help for developing economies as production and business activities of enterprises To manage effectively for business activities not belong to this kind of business ownership or ownership plans, must all production is simultaneously a range of different management tools, including accounting considered as an effective tool In conditions of market economy the macroeconomic management of the current government, the business environment has produced favorable business but also have many difficulties thrown in prison the impact of competition rules in the mechanism market To pass the selection, strict elimination of the market, survive pilot enterprises to better solve the problems related to the production and business of enterprises In which the collection costs of production and product cost calculation is an indispensable requirement for all enterprises engaged in the production business, it helps to know which now causes factor changes to the cost of production targets and product cost In other words it facilitates enterprises strive measures cost savings, enhanced price Haj loss of product quality, which helps managers understand the information necessary for decision making optimal management This is one of the conditions for the market, competing with products from other enterprises at home and abroad, accepts enterprise products Thus, the implementation of production and business in the market mechanism, the accounting work is one of the important tools of economic management in the enterprise In accounting work in enterprises with many stages, but many portions of the relationships between them have attached organic system constitutes a highly effective management In particular, the cost accounting gathers manufacturing and product cost is an important part indispensable It reflects on the implementation of the cost norms, cost estimates and cost plans help managers detect in time the potential to propose appropriate measures for your business Stemming from the above issues, during practice at Tuong Lan Construction Joint Stock Company is facing economic management situation, combined with the guidance of our teachers and staff guidance company accounting department has instructed me to study the topic: “Accounting for construction cost in Tuong Lan Construction Joint Stock Company.” Suporvisor: PhD Le Kim Ngoc Phan Ngoc Anh - Accounting 54A There are main part of content in this thesis: Chapter Introduction Chapter Theoretical framework of accounting for construction cost in enterprises Chapter Features and management of construction cost in Tuong Lan Cons, JSC Chapter Current situation of accounting for construction cost in Tuong Lan Cons, JSC Chapter Solutions and recommendations to improve accounting for construction cost at Tuong Lan Cons, JSC To complete this topic I have received the enthusiastic support of the accounting officers of the company and the direct guidance of PhD Le Kim Ngoc, but by the time practice and the amount is limited knowledge accumulated during approach new problems despite trying very hard but this thesis is hard to avoid the shortcomings and limitations So I look forward to the comments and help of the teachers, the aunt and uncle in company accounting department of this monograph to additional conditions you can improve your knowledge and to serve better for the learning process, the actual work later Student Phan Ngoc Anh Suporvisor: PhD Le Kim Ngoc Phan Ngoc Anh - Accounting 54A TABLE OF CONTENTS ACKNOWLEDGEMENT PREFACE ABBREVIATION LIST OF FIGURES CHAPTER INTRODUCTION 1.1 Rationale 1.2 Research Objective 1.3 Research Methodology 1.3.1 Methods of collecting and gathering data .2 1.3.2 Methods of data analysis 1.4 Scope of research .3 CHAPTER THEORETICAL FRAMEWORK OF ACCOUNTING FOR CONSTRUCTION COST IN ENTERPRISES 2.1 Overview of construction cost 2.2 Accounting for construction cost CHAPTER FEATURES AND MANAGEMENT OF CONSTRUCTION COST IN TUONG LAN CONS, JSC 19 3.1 Overview of TUONG LAN CONS, JSC 19 3.2 Characteristics of construction cost at Tuong Lan Cons, JSC 21 3.3 Management and mission of accounting for construction cost 21 3.3.1.Management of construction cost 21 3.3.2 Mission of construction cost accountant .22 CHAPTER CURRENT SITUATION OF ACCOUNTING FOR CONSTRUCTION COST AT TUONG LAN CONSTRUCTION, JSC 23 4.1 Accounting for direct material cost 23 4.2 Accounting for direct labors cost 33 4.3 Accounting for construction instruments cost 40 4.4 Accounting for overhead cost .45 4.5 Accounting for total production cost 53 CHAPTER SOME RECOMMENDATIONSTO COMPLETELY MANAGE COST ACCOUNTING AT TUONG LAN CONSTRUCTION COMPANY 58 5.1 Some remarks on construction cost accounting at Tuong Lan Cons, JSC.58 5.1.1 Accounting in general 58 Suporvisor: PhD Le Kim Ngoc Phan Ngoc Anh - Accounting 54A 5.1.2 Accounting for construction cost 59 5.2 Advantages and disadvantages in accounting for construction cost at Tuong Lan Company 59 5.2.1 Advantages in accounting for construction cost 59 5.2.2 Disadvantages in accounting for construction cost .59 5.3 Recommendations to complete production cost accounting at Tuong Lan Construction Joint Stock Company 61 CONCLUSION .63 REFERENCES 65 APPENDIX .66 Suporvisor: PhD Le Kim Ngoc Phan Ngoc Anh - Accounting 54A STATUTORY DECLARATION I herewith formally declare that I myself have written the submitted Bachelor’s Thesis independently I did not use any outside support except for the quoted literature and other sources mentioned at the end of the paper Ha Noi, 02/06/2015 Signature Suporvisor: PhD Le Kim Ngoc Phan Ngoc Anh - Accounting 54A ABBREVIATION JSC ACC VAT Ref ACC : Joint Stock Company : Accounting : Value Added Tax : Reference Account Suporvisor: PhD Le Kim Ngoc Phan Ngoc Anh - Accounting 54A LIST OF FIGURES Figure 1.1 Model of construction cost Figure 3.1 Process of producing constructions 20 Suporvisor: PhD Le Kim Ngoc Phan Ngoc Anh - Accounting 54A CHAPTER INTRODUCTION 1.1 Rationale Faced with the ongoing development of society, the enterprise market have constantly changed and improved Want to that, businesses must organize synchronous input factors such as the stages of production and business processes Basic construction is a material manufacturing industry to create technical infrastructure for the economy Is this sector are buildings of great value, long period of use, significant economic density and high aesthetics, reflect the style of ethnic lifestyles and has important implications for sociocultural In the context of our country today, the modernization of infrastructure require urgent everywhere The question is how to manage the funds spent and use it most effectively, overcome wastage, loss of capital in the business of manufacturing building with many stages and long periods Therefore, the accounting for construction cost is one of the very important jobs of economic management Production costs are set correctly in combination with the full cost of financial relationships in the enterprise, contributing positively to the efficient use of economic resources Moreover during the internship, I have realized the weakness in aggregation construction costs in the company as not timely accounting data collection in construction due to the distance space and time, but the workload more forces fledgling accounting Recognizing that, after a period of internship at Tuong Lan Construction Company, I have chosen this topic 1.2 Research Objective • Apply the knowledge synthesis in university into practice and knowledge accumulated from the practice in the company • System and evaluate the organization of accounting for aggregation construction costs Identify the strengths and weaknesses of the accounting work of the business and provide reasonable solutions to improve accounting for construction cost at the company Suporvisor: PhD Le Kim Ngoc Phan Ngoc Anh - Accounting 54A ... accounting for construction cost 59 5.2.2 Disadvantages in accounting for construction cost .59 5.3 Recommendations to complete production cost accounting at Tuong Lan Construction Joint Stock. .. - Accounting 54A 5.1.2 Accounting for construction cost 59 5.2 Advantages and disadvantages in accounting for construction cost at Tuong Lan Company 59 5.2.1 Advantages in accounting. .. construction cost in Tuong Lan Cons, JSC Chapter Current situation of accounting for construction cost in Tuong Lan Cons, JSC Chapter Solutions and recommendations to improve accounting for construction