accounting internship report at north central electricity development and investment joint stock company

History of formation and development of North Central Electricity Development and Investment Joint Stock Company 1.1.1 General information about North Central Electricity Development and

National Economics University School of AEP

NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ADVANCED EDUCATIONAL PROGRAMS

ACCOUNTING INTERNSHIP REPORT

At; North Central Electricity Development and Investment Joint Stock

Company

Student’s name: Nguyen Huong Quynh

Student’s ID; 11194477

Class: Auditing 61B EEP

Supervisor: Ph.D Dang Thi Thuy Hang

Ha Not 9/7/2022

TABLE OF CONTENTS

9):12)01.1 022225 CHAPTER 1: OVERVIEW OF NORTH CENTRAL ELECTRICITY

DEVELOPMENT AND INVESTMENT JOINT STOCK COMPANY 1.1 History of formation and development of North Central Electricity

Development and Investment Joint Štock Company c2 e 7 1.1.1 General information about North Central Electricity Development and Investment Joint Stock Company - c1 n1 121212 121111 vn HH 7 1.1.2 History of formation and development of North Central Electricity Development and Investment Joint Stock Company cay 12 1.2 Features of business operations of North Central Electricity Development and Investment Jornt Stock Company c2 2n 2n 2v 212212111212 11 re 13 1.2.1 Functions and duties of North Central Electricity Development and Investment Joint Stock Company - 00 2n 2122121222121 kg 13 1.2.1.1 Functions of the Company 2 2c 222 222 He 13

1.2.2 Features of business activities of North Central Electricity Development and Investment JoInt Stock Compan - cv cv Hy ng 15 1.2.3 Features of business organization of North Central Electricity

Development and Investment Joint Stock Company cay 16 1.3 Features of organization management of North Central Electricity

Development and Investment Joint Štock Company c2 17 1.4 Overall assessment of the company's production and business resullts 23 CHAPTER 2: CHARACTERISTICS OF THE ACCOUNTING SYSTEM AT NORTH CENTRAL ELECTRICITY DEVELOPMENT AND INVESTMENT

90 605190.06009)./0 5)0 211115 27 2.1 The accounting apparatus at Coimmpany c n2 HH Hye 27 2.2 The accounting system at the North Central Electricity Development And Investment Joint Stock Company c2 n1 2122121112121 5511211121118 11 xe 29 2.2.1 Accountfing poÏIGI€§ c1 211212 11212212 222111 221120121111 211 001011 81g 29 2.2.2 Accounting voucher sysfe1m c2: 2n 2 1211221121151 11211 12111111 tre 34 2.2.3 Accounfing accounfS sySf€TM Q.0 2022112012111 21212111 112111211111 ray 36 2.2.4 Bookkeeping sysfem - c2 2n 2n n1 2212111212111211111 2111111 xxcgrxe 40 2.2.5 Accounfing reportIng sysfem - - c c cc c2 1212212211111 2112 81121 se 42

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2.3 Some main accounting procedures at the Accounting Department of North Central Electricity Development and Investment Joint Stock Company 43 2.3.1 Payroll accounting and payroll deductions at the Accounting Department

of North Central Electricity Development and Investment Joint Stock Company

2.3.1.1 Characteristies of working at the Company .- 22c 43 2.3.1.2 Regulation on salary, bonus and support for employees of North Central Electricity Development and Investment Joint Stock Company 44 2.3.1.3 Salary payment methods and salary calculation methods 47 2.3.1.4 Regulations on deduction and payment of deductions according to

1 ccccececneesceeecneeseeseeaeesecsecaessecsessueessieecsessessessessseaeeseesiesessentaeeneess 59 2.3.1.5 Other welfare expense regime cece ese ceeecenteenteeeseeenaeeneees 61 2.3.1.6 Voucher used and the process of circulating payroll accounting Vouchers at North Central Electricity Development and Investment Joint

2.3.1.7 Book ofuse and order oŸ recording -.- cc ccccc c2 ersrxes 65 2.3.1.8 Payroll accounting and payroll deductions at North Central Electricity Development and Investment Joint Štock Company 67 2.3.2 Sales accounting and determination of sales resuÍfs - +5: s5 81

P VN 5 81 2.3.2.2 Principles and methods of revenue and income recognition 81 2.3.2.3 Vouchers and rotation of Vouchefs con re re 81 2.3.3.4 Books used and order of recording books cc cccceese 82 2.3.2.5 Sales accounting

2.3.2.6 Accounting for sales and business managemeri 89 2.3.2.7 Accounting to determine sales reSuÌfs c2 223222222 2s 92 CHAPTER 3: ASSESSMENT OF ACCOUNTING ORGANIZATION AND ACCOUNTING SYSTEM AT NORTH CENTRAL ELECTRICITY

DEVELOPMENT AND INVESTMENT JOINT STOCK COMPANY 3.1 Assessment of aecounfing OrgarIZafIOT - c c ccn cv 2n ree 93 3.1.1 Comments on manageIn€ïi + c2 2212211211212 51 2121111125121 8xx xe 93 3.1.1.1 Advanfaỹ€§ c cnnnnnnnn HH 0112211121112 11 111 xe 93 EINPTVL iaađđđđdđdđidiiđdđiiiaiiiiiiääÝÝ 93 3.1.2 Comments on accounfIng WOTK c1 2121151111151 211 2221112111 xe 94

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3.1.2.1 AdvanfaBۤ c0 2n HH 011221112111 121011111011 1111101 ky 3.1.2.2 Disadvantages

Figure 2 15: Formula to determine sales results — “Source: Circular 200/2014/TT-

; 91 Figure 2 16: Formula to determine net sales from sales — “Source: Circular 133/2016/TT-BTC” 91

Table 2 9: Table 2 - Appendix 1

Table 20000.106.717 sa Table 2 12: The insurance deduction rate in the period from January 1, 2021, to the end of June 30, 202 l - S20 222112211 1221112211151 11011111101 11 01111 111101511111 11 01111 xe 59 Table 2 13: The insurance deduction rate in the period from July 1, 2021, to the end

bi 3)Mi>nt >0 P20 6A 60 Table 2 14: The insurance deduction rate in the period from October 1, 2021, to the end of June 30, 202 l - S20 222112211 1221112211151 11011111101 11 01111 111101511111 11 01111 xe 60

Table 2 16: Entity table of document rotation in the payroll cycle and payroll bon v0 TA 63 Table 2 17: The table describes the accounting work of the salary module 68

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INTRODUCTION The electricity industry is a technical and economic sector that plays an extremely important role in the national economy During its formation and development, the electricity industry has always effectively completed the political, and socio- economic tasks assigned by the party and state, making a worthy contribution to the struggle to protect and liberate the country in the past, and the renovation and construction of the present country, carry out industrialization and modernization, and constantly improve people's living standards

Realizing this, I applied for a 2-month internship at of North Central Electricity Development and Investment Joint Stock Company after studying subjects related

to accounting and school requirements With the knowledge learned in class and useful information accumulated during the internship, I would like to introduce the Accounting Internship Report to learn about the characteristics of the accounting system at the North Central Electricity Development And Investment Joint Stock Company

This report is structured in 3 parts:

Chapter 1: Overview of North Central Electricity Development and Investment Joint Stock Company

Chapter 2: Characteristics of the accounting system at North Central Electricity Development And Investment Joint Stock Company

Chapter 3: Assessment of accounting organization and accounting system at North Central Electricity Development And Investment Joint Stock Company

Despite our best efforts, due to the short internship period and limited knowledge, the internship report inevitably contains shortcomings and subjective and incomplete judgments I look forward to receiving Teacher's comments to improve the report Thank you sincerely

CHAPTER 1; OVERVIEW OF NORTH CENTRAL ELECTRICITY DEVELOPMENT AND INVESTMENT JOINT STOCK COMPANY 1.1 History of formation and development of North Central Electricity Development and Investment Joint Stock Company

1.1.1 General information about North Central Electricity Development and Investment Joint Stock Company

North Central Electricity Development and Investment Joint Stock Company was established on September 5, 2006, by the Department of Planning and Investment of Thanh Hoa province, with a business registration certificate

Legal type: Joint-stock company

Tax code: 2800999955 was first issued by the Department of Planning and Investment of Thanh Hoa Province on September 5, 2006, and registered for the fourth change on December 19, 2014

Head office: Luong Son Commune, Thuong Xuan District, Thanh Hoa Province, Vietnam

Business lines according to the company's business registration certificate: North Central Electricity Development and Investment Joint Stock Company operates with the main business line of Producing and trading in electricity; Construction of civil engineering works (Details: Construction of industrial works, electricity, water supply, and drainage, technical infrastructure engineering) And other industries such as: Electricity generation, transmission, and distribution; Construction of houses of all kinds; Construction of public works; Architectural activities and related technical consultancy; Production of building materials; Wholesale of materials and other installation equipment in construction; Real estate business; Hotel business; Restaurant business; Marine aquaculture; Plant trees and take care of the trees; Producing materials from wood,

Date of establishment: September 5, 2006

Business registration license (Appendix 1.1)

1.1.2 History of formation and development of North Central Electricity Development and Investment Joint Stock Company

North Central Electricity Development and Investment Joint Stock Company was established in 2006 under the business registration certificate No 2800999955 of the Department of Planning and Investment of Thanh Hoa province, issued on September 5, 2006 (issued for the second time) 4, December 19, 2014)

Legal representative: Mr: Nguyen Van Nhat — Title: Director

North Central Electricity Development and Investment Joint Stock Company has a team of highly qualified engineers with extensive experience, and is a dynamic and creative united labor collective, fully equipped with construction equipment All types and specialties, self-sufficient financial resources After nearly 16 years of construction and development with constant changes, up to now, the company has achieved certain achievements such as North Central Electricity Development and Investment Joint Stock Company is one of the leading power suppliers in Vietnam Supplying electricity to Electricity of Vietnam (EVN), which is the investor of Doc

Cay Hydroelectricity Station with an installed capacity of 15 MW built-in Luong Son commune, Thuong Xuan district, Thanh Hoa province This is a project to take advantage of the flow of irrigation water taken through the Doc Cay Tunnel to urigate 32,831 hectares of arable land in the North Chu River - South Ma River areas of the Cua Dat Reservoir project to build a hydroelectric station according to the irrigation, chart to sell commercial electricity to the national grid The construction investment project of Doc Cay Hydroelectricity Station, established by Irrigation Construction Consulting Company 1, has been approved by the Board of Directors of North Central Electricity Development and Investment Joint Stock Company in Decision No 09 /2007/QD-HDQT dated 25/05/2007 Although the establishment time is not as long as other large hydroelectricity plants, the company has built and affirmed its brand name in the market, next to big competitors such as Cua Dat Hydroelectricity Plant, etc Hoa Binh Hydroelectricity Plant

Over the years, the Company's revenue and profit have grown steadily The company is always interested in improving the welfare regime, improving the living standards, and increasing incomes for employees Along with that, the company always complied and fulfilled the target of paying to the state budget, making timely payments of credits with partners, and was continuously ranked A customer by the Bank

In order to survive in the increasingly fierce competition market and meet the increasing requirements of the market as well as the continuous development of the country, the Company has built its own strategy, in which the focus is on: Investing

in high-quality human resources, fostering and improving the qualifications of employees; The Company constantly innovates technology, equips modern construction machinery and equipment, applies scientific and technical advances to innovate construction methods in a modern and advanced direction Thereby, has created a reputation with investors, and at the same time creating a solid foundation for the Company to develop in new conditions

1.2 Features of business operations of North Central Electricity Development and Investment Joint Stock Company

1.2.1 Functions and duties of North Central Electricity Development and Investment Joint Stock Company

1.2.1.1 Functions of the Company

To organize production and business in accordance with the lines registered with the competent authorities of the State Business lines of North Central Electricity Development and Investment Joint Stock Company:

Producing and trading in electricity; participating in the competitive power supply market Producing and trading building materials Trading in houses and offices; Restaurant, hotel business Cultivation, processing, and export of agricultural, forestry, and aquatic products

Construction of technical works, electricity, water supply, and drainage, technical infrastructure Planning, investment projects, verification, and appraisal of construction projects of technical works; survey, design, and test hydroelectricity; management and construction supervision of projects, works of water supply and drainage, electricity—dynamics, civil construction, and specialized services Consulting and appraisal of construction investment projects; Construction investment project management consulting; Construction supervision consultancy (including installation of technological equipment); Consulting on making and evaluating bidding Vouchers; Evaluation of bids for construction design, procurement of materials and equipment; Consultancy on making and appraising the design, cost estimate, total cost estimate of the project

In addition, the Company needs to comply with the regulations of the Ministry of Labor — Invalids and Social Affairs on signing labor contracts, and prioritizing the use of local workers Implement periodical statistical reporting regimes in accordance with State regulations

1.2.1.2 Duties of Company

For the market and customers: The Company organizes production and business to meet the market's demand in a timely manner in terms of power supply; construction of technical works; supply of materials for production and business with high quality and efficiency The Company fully fulfills its commitments to customers in terms of quality, and service, and satisfactorily settles beneficial relationships and benefits with customers on the principle of equality and mutual benefit

For the State and the community: The Company ensures compliance with the law, fulfills tax payment obligations, and adheres to the unified accounting regime For shareholders and investors: The Company is responsible for preserving and growing capital, at the same time expanding the scale of production and business and increasing profits

For employees in the company: The company has a training mission, taking care

of, and fostering skills and professionalism for employees Fully implement the regimes and policies of the State for employees Implement the monthly salary payment regime on the basis of the registered salary fund and salary unit price Rewarding individuals and groups with outstanding achievements contributing to the completion of the company's production and business plan Implement social insurance and health insurance policies; always improve working conditions, invest

in labor protection, and environmental sanitation, and strictly implement the regime

of rest and toxic training to ensure the health of employees In addition, it is constantly improving the culture and life of employees Building security forces, preventing fire and explosion, coordinating with local authorities to maintain political security and social order and safety, and ensuring absolute safety for people and property of the Company Fulfilling the obligation of national security and defense of the whole people

For public and social welfare: Every year, the Company has money to take care of Heroic Mothers, and martyrs’ families, build many gratitude houses, and charity houses, and take care of and support households Policy — poor households, installation of electricity — water meters without charge for poor households, policy households, etc Participate in contributing to welfare funds mobilized by the government and mass organizations every year

1.2.2 Features of business activities of North Central Electricity Development and Investment Joint Stock Company

North Central Electricity Development and Investment Joint Stock Company operates with the main business lines of electricity production and_ trading; Construction of civil engineering works and specific related industries as follows: (1) Construction of other civil engineering works

Details: Construction of industrial works, electricity, water supply, and drainage, technical infrastructure

(2) Electricity generation, transmission, and distribution

Details: Producing and trading in electricity

(3) Building houses of all kinds

(4) Construction of public works

(5) Architectural activities and related technical consulting

Details: Electrical engineering design consultancy

(6) Other production, n.e.c

Details: Production of building materials

(7) Wholesale of other installation materials and equipment in construction Details: Wholesale of building materials

(8) Trading in real estate, land use rights of owners, users, or tenants

Details: Housing and office business

(9) Short stay service

Details: Hotel business

(10) Restaurants and mobile catering services

Details: Restaurant business

(11) Marine aquaculture

(12) Afforestation and forest care

(13) Processing and preserving aquatic products and aquatic products

(14) Manufacture of other wood products; produce products from bamboo, cork, straw, and plaiting materials

1.2.3 Features of business organization of North Central Electricity Development and Investment Joint Stock Company

Electricity production and business process of Doc Cay Hydroelectric Plant Consists of 4 main phases:

- Phase 1: Taking advantage of irrigation water for the downstream area, the water flow with great pressure flows through large steel pipes called pressure water pipes, creating giant water columns with great pressure going inside the factory

- Phase 2: Strong flowing water turns the generator's turbine, and mechanical energy

is converted into electricity

- Phase 3: The generated electricity goes beyond the transformer to generate a high- voltage current and is transmitted to the 35K V Muc Son station for coordination and transmission by Thanh Hoa Electricity

- Phase 4: On the last day of the month in Thuong Xuan district, electricity will close the meter and send the data to the Northern Electricity Corporation for making payment Vouchers

1.3 Features of organization management of North Central Electricity Development and Investment Joint Stock Company

North Central Electricity Development and Investment Joint Stock Company is organized and managed according to the model: General Meeting of Shareholders, Board of Directors, Director, Under the Director there are Deputy Directors to operate the Blocks, and each of the Block has departments operating according to separate functions

North Central Electricity Development and Investment Joint Stock Company with a total of 35 employees, including:

- Executive Board: 04 people, Director of the Company, Deputy Director of the Company in charge of finance — planning, Deputy Director of the Company in charge of production, and Chief Accountant of the company

- Department of Finance — Planning: 5 people (concurrently)

- Administration — General Department: 5 people (concurrently)

- Electromechanical management department (concurrent)

- Doc Cay Hydroelectric Plant: 24 people

+ Factory leadership: 02 people (concurrent), Director and Deputy Director of the Factory

+ Technical staff: 02 people (concurrently)

+ Operation crew: 15 people (05 shift leaders, 10 electromechanical staff) + Electricity line repair and operation team: 05 people

With a total of 35 employees, the Company has ensured enough employees suitable for the job requirements to operate most effectively Minimize human resources to increase income for important positions and optimize profits for the Company Particularly for Doc Cay Hydroelectric Plant, the characteristics of having to manage, repair and operate an additional 20 km of 35kV transmission lines,

coordinate in operation, repair, and maintain equipment at 110kV Tho Xuan BA Station, coordinate and support repairing equipment at the water inlet, regulating 5.3 km of the discharge channel Therefore, the number of 24 people will ensure the tasks that must be performed quickly, accurately, and timely, and maintain production on a regular basis continuously, ensuring output, revenue, and profit for the company All costs incurred are minimized because there are on-site human resources who can do it themselves

GENERAL MEETING OF SHAREHOLDER

5

BOARD OF SUPERVISORS BOARD OF

DIRECTORS

EXECUTIVE BOARD

Department

Diagram 1 1; Organizational chart of management

“Source: Accounting Department - 2022”

The functions, powers, and duties of leaders and departments in the company can be summarized as follows:

General Meeting of Shareholders: The General Meeting of Shareholders is responsible for setting the general goals, orientations, and development strategies for the company Elect, dismiss and remove members of the Board of Directors and Supervisors Decide to amend and supplement the company's charter Through the annual financial report Review and handle violations of the Board of Directors and Control Board, causing damage to the company and its shareholders Decide to reorganize and dissolve the company Decide on the class of shares and the total number of shares of each type that are entitled to offer for sale Decide the annual dividend rate of each class of shares

Board of Supervisors: The Supervisory Board has the function of supervising the Board of Directors and the General Director in the management and administration of the company The Supervisory Board is responsible before the General Meeting of Shareholders in performing the assigned tasks

Board of Directors: The Board of Directors has the right to elect, remove or dismiss the Chairman of the Board of Directors Appointment, dismissal, signing of contracts, termination of contracts for the Board of Directors, important managers in the company Supervising and directing the Director and other managers in the company in running the daily business Submit the annual financial settlement report to the General Meeting of Shareholders Decide the selling price of shares and bonds of the company The Board of Directors includes the Director and Deputy Director in charge of Finance — Planning, Deputy Director in charge of production

Director: The director is the person responsible for operating the production and business activities of the company, responsible for planning the implementation

of the objectives, orientations, and strategies set out by the General Meeting of Shareholders Manage and be responsible for the entire day-to-day operations of the company Ensure the company's current and future goals are met as per management's expectations in terms of sales growth, profitability, product quality

and other activities Evaluate the performance of the components Solve problems arising on a daily basis according to the company's regulations and the law Deputy Director in charge of Finance — Planning: As a support person for the Director, assigned by the Director in charge of management, strategic planning Finance — Planning, operating activities related to Finance — Company plan Review, evaluate, test and analyze financial performance forecasts — departmental plans, contracts Ensure that the assets of the Enterprise are controlled and used in a reasonable and profitable way

Deputy Director in charge of production (Factory Director): Deputy Director of Production Division is responsible for receiving the production plan, organizing and implementing the plan to achieve the production plan to ensure technical standards, Product quality, productivity before the director Responsible for well implementation of the company's regulations on labor management, asset management and production management Responsible for coordinating with departments to implement the daily, weekly, and monthly reporting regime Implement and handle technical quality related issues in production, research, and development of new products Efficient production organization, reasonable premises Establish production norms (materials, labor, .) for each product Formulate development projects and operational plans in professional and professional fields

General Administration Department: General Administration Department is

a functional department that performs 3 main tasks Firstly, Administrative work — administration: Recruitment, training, management of staff, specialists, reasonable coordination; manage personal records of employees, monitor, and update all personnel changes and periodically report Performing the calculation of salary, bonus and related regimes such as social insurance, health insurance, unemployment insurance; properly and promptly handle the transfer, discipline, leave in accordance with the labor law, regulations, and policies for employees Coordinate planning, organization of movements, events, corporate activities of the company In addition, the Administration — General Department manages all assets

and equipment of the Company Second, Construction management: Management

of incident acceptance, maintenance, and warranty work; Construction engineering management, Management of occupational safety, fire, and explosion prevention Third, Economic work: Advising and assisting the Director in business development, dealing with relevant regimes and policies, norms and expense items according to the State's regulations

Finance and Planning Department: The Department manages, inspects, guides and implements the accounting, financial and asset management regimes in accordance with the state ordinances, the company's charter and financial regulations Responsible for managing financial activities, making financial plans

on a monthly, quarterly and annual basis, and periodically reporting or reporting at the request of the leadership on the financial situation of the company Evaluate financial activities, propose measures to improve financial performance Managing the organization of the financial and accounting apparatus in the whole system and

in each development stage of the company

Electromechanical Management Department: Advise the Company's leadership on the maintenance, repair, and maintenance of the plant's technological equipment Management of hydromechanical engineering, technological equipment Participate in the supervision and installation of hydraulic systems and technological equipment Manage the history and quality of equipment, update equipment status, supplies, maintenance, and repair content Check and supervise the repair, installation, testing, and adjustment according to the process Regularly check labor safety measures to ensure compliance with industry standards promulgated by the State Immediately suspend the work at risk of unsafely Doc Cay Hydroelectric Plant: Doc Cay Hydroelectric Plant is a unit of North Central Electricity Development and Investment Joint Stock Company Performing power production at Doc Cay Hydroelectric Plant and other tasks as assigned by the Company The plant's organizational structure includes the Board of Directors, the Operation Board and the Repair and Management Team of the 35kV line The Board of Directors of the Factory is responsible for managing, operating and

planning all production and business activities of the factory The Operation Board directly manages and operates production machinery and equipment in accordance with the process, maintenance, and industrial hygiene regime to ensure stable and backup operation, always in a state of readiness for operation best practice Repair team — 35kV line manager directly manage, repair and periodically broadcast the 35kV line from the Factory to the 110kV Tho Xuan substation; periodic repair and maintenance of machinery, mechanical and electrical equipment of the Plant, transformer stations and lighting system throughout the Company

1.4 Overall assessment of the company's business results

Profit and Loss Statement in 2020 (Appendix 1.1)

Table 1 1: Compare Profit and Loss Statement in 2020 — 2021

Net profit after tax 30004 48.81 474800 6154 ) )

From the above table, it can be seen that the company’s business results are declining: Total profit after tax this year is VND 30,004 million, last year was VND 47,800 million Profit after tax for both years is positive, indicating that the company is operating profitably Profit after tax this year compared to the previous year decreased by 17,796 million, a rate of 37.23% For a more comprehensive assessment, a detailed analysis is required

Sales Activities:

« Net revenue from selling goods and providing services: This year, compared to the previous year, decreased by 16,201 million VND (equivalent to 20.86%), showing that revenue from the central business is electricity production and trading decreased compared to the previous year This happened due to the following principal reasons: the direct influence of the complicated developments of the COVID-19 epidemic, which significantly affected the demand for electricity Especially, the time of separation caused industrial parks to stop operating, significantly impacting electricity consumption

* For two consecutive years, the company has had no revenue deduction This is a feature of the power industry, where the output, as well as the selling price, are always predetermined

* Cost of goods sold this year increased by 6,195 million VND compared to the previous year, with an increased rate of 28.21% The increase in cost management while the decrease in revenue shows that cost management capacity is reduced

* General and administrative expenses this year increased by VND 269 million, equivalent to an increase of 8.12% compared to the previous year

Financial Activities:

« Revenue from financial activities: This year's financial income of the company

reached 8,003 million VND, an increase of 2,244 million VND compared to 2019

(equivalent to an increase of 38.97%) From that, it can be seen that the increase in financial income here may be due to the fact that enterprises receive interest on deposits and loans; profit from the sale of investments and gain on foreign exchange differences arising this year increased compared to the previous year

* Financial expenses: In 2020, the financial expenses of enterprises are 6,669 million VND, down from 1,243 million VND compared to the previous year (equivalent to a decrease of 15.71%) All financial expenses of the business are interest expenses

Other activities:

Compared to the previous year, other income has decreased sharply, specifically other income this year is 36 million VND, down 78 million VND with a decrease rate of 68.42%% However, profit and revenue from other activities only account for a tiny proportion compared to net revenue, so the fluctuation of this indicator is not considered

In general: the decrease in business activities of enterprises in 2020 mainly comes from the decline in electricity demand due to social distancing during the COVID-

19 pandemic In the following years, when the epidemic situation controls, the business results of enterprises will likely return to normal levels However, the cost management capacity of enterprises is decreasing Enterprises need to take measures to tighten costs and improve business results

CHAPTER 2: CHARACTERISTICS OF THE ACCOUNTING SYSTEM AT NORTH CENTRAL ELECTRICITY DEVELOPMENT AND INVESTMENT JOINT STOCK COMPANY

2.1 The accounting apparatus of the Company

The accounting apparatus of a company have an extremely important role in the function of managing, checking, and supervising all arising economic transactions

In order for the accounting apparatus to perform and promote its role well, enterprises need to organize a scientific, reasonable, and specialized accounting apparatus, ensuring the centralized, unified, and direct leadership of the accounting staff The chief accountant must also be suitable for the organization of production and business, as well as the management level of the enterprise

All the work of handling Vouchers and books is gathered to the Accounting Department for processing and bookkeeping

The accounting apparatus at the North Central Electricity Development And Investment Joint Stock Company consists of 5 people: Chief Accountant, General Accountant, Sales Accountant, Payroll Accountant and Payroll Deductions,

Treasurer

Chief Accountan

t

Payroll and

Accountaan Accountan Deductions Treasurer

t Accountan

t Diagram 1 2: The accounting apparatus of the Company

The duties and responsibilities of each employee in this accounting apparatus are as follows:

Chief Accountant is responsible for researching regimes and policies in the fields of taxation, finance, statistics, enterprise law of the State, financial activities, and banking credit related to the Company's activities in order to provide

an appropriate implementation Since then, the organization of accounting work, statistics, and accounting apparatus is suitable for the organization of production and business according to the requirements of the existence and development of the Company The chief accountant has the duty to promptly disseminate and guide the current financial, accounting, and statistical regimes and regulations to subordinates and related departments; Organize accounting records and reflect accurately, honestly, timely, and fully the accounting data; organize the preservation and storage of accounting Vouchers, keep secret the Company's accounting Vouchers and data At the end of the period, the chief accountant prepares financial statements, reports on production and business results and analyzes the results of production and business of the Company, records and performs the closing entries and internal adjustments at the end of the period, taxes; be responsible for the following financial statements before the Board of Directors, the Board of Directors, the General Meeting of Shareholders, and the competent authorities

General Accountant synthesizing all expenses and incomes of the company incurred to make monthly, quarterly, and yearly financial settlement reports in accordance with regulations of the Ministry of Finance

Sales Accountant responsible for a timely and complete recording of finished products, sold goods, and internal consumption, correctly calculating the cost of goods sold, selling expenses, administrative expenses, and other expenses to determine sales results At the same time, check and monitor the progress of sales, profits, and payments, thereby providing accurate, complete, and objective information on sales to the Board of Directors and managers

Payroll and Payroll Deductions Accountant according to salary has the task of basing on the timesheet of each department to make a table of salary payments and allowances for specific objects in the enterprise Deducting social insurance, health insurance, unemployment insurance, and labor union according to the prescribed rate

Treasurer is responsible for paying and collecting cash according to payment and receipt Vouchers issued by the department as prescribed, withdrawing

or depositing money through the bank upon request; managing cash at the fund, ensuring money safety, checking the fund, and making periodic audit reports At the same time, treasurer conducts a comparison of the amount of money with sales; updates the bank sub-book; manages contracts, receipts, and payments through funds, cash, and bank accounts

2.2 The accounting system at the North Central Electricity Development And Investment Joint Stock Company

2.2.1 Accounting policies

- Applicable accounting standards and regimes

+ Applicable accounting regime: The Company applies the Corporate Accounting System issued in accordance with Circular No 200/2014/TT-BTC dated December

22, 2014, of the Ministry of Finance

+ Accounting standards: Vietnamese Accounting Standards are issued by the Ministry of Finance

- Accounting form: Computerized accounting, using Misa accounting software, the order of bookkeeping is according to the general journal

- Fiscal year: The fiscal year begins on January 1 and ends on December 31

- Currency used in accounting: Vietnam Dong (VND)

- Accounting period: annual accounting period

- VAT calculation method: deduction method according to Circular 219/2013/TT- BTC dated December 18, 2013

- Inventory accounting method according to Circular 200/2014/TT-BTC: Regular declaration method

- Depreciation method of fixed assets: straight-line method (applicable according to Circular 45/2013/TT-BTC dated 25/04/2013)

2.2.2 Accounting voucher system

Currently, North Central Electricity Development and Investment Joint Stock Company is applying the Corporate Accounting System issued in accordance with Circular No 200/204/TT-BTC dated December 22, 2014 of the Ministry of Finance Vouchers being used at the accounting department:

Table 2 1: Labor and salary vouchers

4 Certificate of product or job completion 05-LDTL

8 Minutes of liquidation (acceptance) of contract 09-LDTL

9 Minutes of deduction and payment of wages 10-LDTL

10 Table of salary distribution and social insurance 11-LDTL

(Source: Accounting Department of North Central Electricity Development and

Investment Joint Stock Company - 2022)

Table 2 2: Accounting vouchers for sales

Model No

1 Purchase contract

> Delivery records

3 VAT invoice 01-GTKT3/001

(Source: Accounting Department of North Central Electricity Development and

Investment Joint Stock Company - 2022)

Table 2 3: Financial accounting vouchers

Model No

(Source: Accounting Department of North Central Electricity Development and

Investment Joint Stock Company - 2022)

Table 2 4: Accounting vouchers for fixed assets

Model No

1 Minutes of handing over fixed assets 01-TSCĐ

2 Minutes of liquidation of fixed assets 02-TSCĐ

3 Minutes of handing over fixed assets that have 03-TSCD

completed major repair

4 Minutes of revaluation of fixed assets 04-TSCD

5 Minutes of inventory of fixed assets 05-TSCĐ

6 Calculation and allocation of fixed assets 06-TSCĐ (Source: Accounting Department of North Central Electricity Development and

Investment Joint Stock Company - 2022)

Vouchers circulation:

Diagrams of Vouchers circulation

Original voucher

Accounting book General journal Accounting software

(Machine accounting book,

Misa)

General ledger Detailed accounting books Detailed composite table

Balance sheet arises

2.2.3 Accounting accounts system

The company's accounting accounts are according to Circular 200/2014/TT- BTC issued by the Ministry of Finance on December 22, 2014 The accounting system is detailed to level 2 accounts In addition to level 1 and level 2 accounts issued by the State, for convenience, in accordance with business characteristics as well as management requirements and method content accounting of the corresponding general account, the accountant is very flexible in using the account The company's account system (Appendix 2.1)

2.2.4 Bookkeeping system

North Central Electricity Development and Investment Joint Stock Company is applying the Corporate Accounting Bookkeeping System issued in accordance with Circular No 200/2014/TT-BTC dated December 22, 2014, of the Ministry of

Bookkeeping system:

General accounting books: general journal, general ledger, detailed summary of goods, statements, detailed summary of customer receipts, and payables to sellers Detailed accounting books: detailed books of sales, detailed books of receivables from customers, books to monitor fixed assets and tools, tools, and detailed books

of payables to sellers

National Economics University School of AEP

Phụ luc 2.13: $6 nhat ky chung

(Source: Accounting Department of North Central Electricity Development and Investment Joint Stock Company - 2022)

Phụ lục 2.14: Số chỉ tiết tài khoản 334

(Source: Accounting Department of North Central Electricity Development and Investment Joint Stock Company - 2022)

Phụ lục 2.15: Số chỉ tiết tài khoản 338

(Source: Accounting Department of North Central Electricity Development and Investment Joint Stock Company - 2022)

Phụ lục: Số cái tài khoản 334

(Source: Accounting Department of North Central Electricity Development and Investment Joint Stock Company - 202(

The process of bookkeeping in the form of machine bookkeeping:

Original voucher

Bookkeeping General journal Accounting software

(Machine accounting book,

Misa)

General ledger Detailed accounting books Detailed composite table

Balance sheet arises

Investment Joint Stock Company - 2022)

The order of bookkeeping at the company:

Daily accounting is based on valid initial accounting vouchers such as sales invoices, receipts, payment slips, and the accounting part imports the vouchers into the software

According to the accounting software's process, the information is automatically entered into the general ledger (ledger, general journal) and related detailed accounting books At the end of the accounting quarter, the calculation of the ex-

warehousing price, the closing of the period, the closing of the period, and the preparation of financial statements are performed The comparison between the aggregated data and the detailed data is performed automatically and is always accurate and truthful according to the information entered the period General accountants can check and compare data between accounting books and financial statements after they are printed on paper At the end of each quarter, at the end of the year, the general accounting books and detailed accounting books are printed on paper, bound into books, and carry out legal procedures as prescribed

2.2.5, Accounting reporting system

Accounting reports are used to provide information on the financial position, business performance, and cash flows of an enterprise, to meet the requirements of owners, state agencies, and useful needs of users used in making economic decisions

Table 2 5: Reports used at the company

(Source: Accounting Department of North Central Electricity Development and

Investment Joint Stock Company - 2022)

2.3 Some main accounting procedures at North Central Electricity

Development and Investment Joint Stock Company

2.3.1 Payroll accounting and payroll deductions at North Central Electricity Development and Investment Joint Stock Company

2.3.1.1 Characteristics of employees at the Company

Classification of labor in the enterprise

- Regular workers (working >12 months) are signed full labor contracts

- Professionals working under contract salary package are paid as agreed in the

contract

-The hiring seasonal employees, labor contracts with a term of less than 1 month, and contract hires agree to pay salaries on other expenses contracted in the contract Labor characteristics of the enterprise

The company’s labor is divided into 3 parts: executive board, office, and factory:

- Executive Board: University degree or higher, with in-depth knowledge of management and finance

- Office department: University degree or higher, with in-depth knowledge of

finance

- Factory department: with college degree or higher, mainly on duty, operating machinery and equipment, directly conducting production and business activities to generate main revenue for the company

2.3.1.2 Regulation on salary, bonus and allowances for employees of North Central Electricity Development and Investment Joint Stock Company North Central Power Development and Investment Joint Stock Company chooses the form of time-based salary payment (monthly payment) with the standard prescribed number of working days of 27 days and calculated according to the following formula:

Gross salary = Salary + Productivity salary + Allowances + Bonus

Net Salary = Gross salary + Meal allowance — Salary deductions Salary (TLi): Salary is calculated according to job title, salary is based on the salary scale system, salary table promulgated by the Company (Appendix)