Kế toán doanh thu, chi phí và xác định kết quả kinh doanh hoạt đông xây dựng trong các doanh nghiệp xây dựng dân dụng tại hà nội TT TIENG ANH

MINISTRY OF EDUCATION AND TRAINING MINISTRY OF FINANCE ACADEMY OF FINANCE TRAN THI NGOC ANH ACCOUNTING REVENUE, COSTS AND DETERMINING BUSINESS RESULTS OF CONSTRUCTION ACTIVITIES IN CIVIL CONSTRUCTION ENTERPRISES IN HANOI Major : Accounting Code : 9.34.03.01 SUMMARY OF ECONOMIC THESIS HANOI - 2021 The dissertation has been completed at The Academy of Finance Supervisors: Prof., Dr Doan Xuan Tien Dr Le Thi Dieu Linh Reviewer 1: Reviewer 2: Reviewer 3: The dissertation will be defended at the Approval and grading of the dissertation at the Academy level, the Academy of Finance At hour date month year Dissertation can be found at the National Library and the Library of the Academy of Finance INTRODUCTION Rationale Basic construction especially civil construction is in the industry that produces material and technical foundations for the national economy Annually, construction investment in the basic construction industry accounts for about 35% of the country's investment capital, of which civil construction accounts for a relatively high proportion in the industry's value structure According to FPTS's report, infrastructure construction accounts for 41.2% of the industry value, civil construction accounts for 40.6% and the rest is industrial construction With large investment capital, long construction time, large scale, products are high-value projects… It can be said that civil construction has important economic significance in each country In the past time, the construction industry has experienced a significant decrease due to the impact of the economy, the growth rate in the period 2000-2009 reached 9.6%/year, in the period 2010-2013 reached 4.6%/year However, with the amendment of the Housing Law in 2014 and policies to support demand stimulation, the real estate situation is having positive changes, followed by the rise of the civil construction segment However, along with the development of the economy, these changes also set a level playing field for all businesses not only in the country but also expanded to foreign enterprises This will create development opportunities for businesses in the economy and but also bring challenges for businesses Vietnam is currently in the period of deeper and deeper economic integration, in order to be able to approach and compete with construction enterprises in the region and internationally, construction enterprises in general need significant changes, especially in accounting Over the years, the Vietnamese accounting system, in which cost, revenue and business results accounting in particular has been built and perfected in accordance with international standards However, besides the remarkable achievements, there are still certain limitations that create difficulties for enterprises to apply in practice, especially for civil construction enterprises In fact, the accounting for revenue, costs and results in construction enterprises still has many shortcomings, is not consistent with current accounting practices and standards, and does not meet the accounting requirements in the business Karma These inadequacies significantly affect the results of production and business activities as well as reduce the competitiveness of construction enterprises Starting from the theory and practice of construction activities and on the basis of urgent requirements of civil construction companies in the conditions of the market economy and international economic integration, the author has selected to choose the topic: "Accounting revenue, costs and determining business results of construction activities in civil construction enterprises in Hanoi" Overview of related research topics Reviewing the research works so far in the country and internationally, it can be seen that the number of research works on construction accounting is quite rich in both theory and practice, referring to many different aspects under many approaches However, the number of studies on revenue and cost accounting and determining business results of civil construction activities is limited Research works have not been in-depth in approaching revenue and cost accounting and determining business results under contracts Therefore, it is necessary to have a specific study on the actual situation of revenue and cost accounting and determine the construction business activities in the civil construction enterprises Research purpose of the thesis Theoretically - Clarifying the general theoretical issues of revenue and cost accounting and determining business results according to transactions and contracts - Learn the characteristics of construction activities that affect revenue and cost accounting and determine the business results of construction activities, especially civil construction activities In terms of practice - Researching and surveying the current status of revenue and cost accounting and determining business results in civil construction enterprises in Hanoi, evaluating the achieved results, analyzing and specifying limitations and inadequacies need to be completed and supplemented in the accounting of revenue, costs and business results of construction activities under contract - Provide solutions to improve revenue, cost and business results accounting in civil construction enterprises in Hanoi to help businesses operate more efficiently Research question - What is the general theoretical basis for accounting for revenue and expenses and determining business results of construction activities? - How does the characteristics of construction enterprises affect revenue and cost accounting and determine the business results of construction activities? - Actual situation of revenue and cost accounting and determination of construction business results in civil construction enterprises in Hanoi - How to improve the contents of revenue and cost accounting and determine the business results of construction activities in the civil construction enterprises in Hanoi in accordance with current trends? Object and scope of the thesis's research Research subjects: The thesis researches on revenue and cost accounting and determination of business results of construction activities in construction enterprises, specifically: determination of contract, time of recognition, method of determination and recognition, accounting and presentation of information in financial statements Research scope - The scope of limited activities: The thesis only delves into the study of construction activities in civil construction enterprises in Hanoi Surveyed construction enterprises are considered from the perspective of contractors, including main contractors and subcontractors, superior and subordinate companies The thesis does not delve into other investment activities of civil construction enterprises in Hanoi such as real estate business or other activities… - Scope of research content: Due to the time and limitation of a doctoral thesis, the author only delves into the content of revenue and cost accounting and determines the business results of construction activities under Financial accounting is not studied from the perspective of management accounting - Spatial scope: the thesis only focuses on studying civil construction enterprises in Hanoi, including corporations, subsidiaries, joint stock companies, limited companies - Time range: the data is studied from 2016 to 2020, a period when the civil construction segment is growing strongly Research Methods The thesis applies the methodology of dialectical materialism combined with the basic theories of economic science to study theoretical and practical issues a Methods of information collection - Secondary data collection method - Primary data collection method b Data collection and analysis methods Scientific and practical significance of the thesis The first is about science: research thesis, systematize the theoretical basis of revenue and cost accounting content and determine construction business results in civil construction enterprises in Hanoi under the following conditions: two perspectives according to the transaction and according to the construction contract Second in terms of practice: The thesis analyzes and evaluates the situation and reality of revenue and cost accounting and determines the business results of construction activities in construction enterprises in Hanoi advantages, limitations, causes of these limitations in revenue and cost accounting and determination of business results From there, propose suggestions and solutions to improve the accounting of revenue and costs and determine the business results of construction activities in civil construction enterprises in Hanoi At the same time, the conditions for the implementation of the above solutions are provided to help construction businesses operate more effectively Structure of the thesis In addition to the introduction, conclusion, list of references, appendices, the content of the thesis is structured into chapters: Chapter 1: Theory of revenue and cost accounting and determination of business results in civil construction enterprises Chapter 2: Actual situation of revenue and cost accounting and determination of construction business results in civil construction enterprises in Hanoi Chapter 3: Completing revenue and cost accounting and determining business results of construction activities in civil construction enterprises in Hanoi Chapter THEORY ON ACCOUNTING REVENUE, COSTS AND DETERMINATION BUSINESS RESULTS OF CONSTRUCTION ACTIVITIES IN CONSTRUCTION ENTERPRISE 1.1 Construction activities and characteristics of civil construction activities affect revenue and cost accounting to determine business results 1.1.1 Concept and classification of construction activities Construction activities include formulation of construction planning, formulation of work construction investment projects, construction survey, work construction design, work construction, construction supervision, manage construction investment projects, select contractors in construction activities and other activities related to work construction Construction works are products created by human labor, construction materials and equipment installed in the works, linked and positioned with in the soil, which may include underground, above-ground parts land, below water and above water, built according to design Construction works include civil works, industrial works, traffic works, water works, energy and other works Construction works include - Civil works - Transport works - Irrigation works 1.1.2 Characteristics of civil construction activities affect revenue and cost accounting and determine business results Construction operation features: Firstly, construction products are large-scale constructions and architectural objects with complex and unique structures For each project, construction enterprises must sign one or several construction contracts after winning the bid (or being appointed as a contractor) Each contract includes a full estimate including design estimate and construction estimate Secondly, unlike manufacturing enterprises, the operation process is oriented according to the production process, for construction enterprises construction activities are oriented according to each construction contract Thirdly, construction products are sold according to the estimated price or the price agreed with the investor (the bidding price) This price is shown right on the Construction Contract at the time of signing the contract The manufactured product does not need to find a market to sell the product Fourthly, construction products from commencement to completion and handover to use often take a long time, depending on the scale and technical complexity of each construction contract Fifthly, in construction enterprises, production and business are organized according to the contract mechanism, which is widely applied Construction enterprises will contract construction products to affiliated companies or construction teams This is a form of attaching responsibilities and benefits to employees Characteristics of construction activities affecting revenue and cost accounting and determining business results: Firstly, before construction, there must be a detailed estimate of the revenue and expenses incurred for each contract This is the basis for determining the bid price for each project and work item The accounting for revenue and expenses and the determination of business results must be associated with estimates of revenues and costs Secondly, because the construction product is a single unit, has a complex scale and structure, so each Construction Contract is coded separately The collection of revenue and expenses and determination of business results shall be performed by accounting according to each construction contract or each work or work item Revenue and expenses of any project will be collected directly for that project The costs related to construction activities are often incurred more than other production and business activities Thirdly, due to the construction time is often long A Construction Contract can last from a few months to several years, so the time to recognize revenue, costs and determine business results does not have to wait until the project is completed and handed over to be recognized which is recognized in stages consistent with the progress of the contract 1.1.3 Construction contract, construction contract classification Construction contract (construction contract): is a civil contract agreed in writing between the principal and the contractor to perform part or all of work in construction investment activities Classification of Construction Contracts - In the form of a contract - According to the relationship of the parties to the contract - According to the way to calculate the price 1.1.4 Characteristics of construction contracts affect revenue and cost accounting and determine business results Firstly, determine when to recognize revenue and expenses and determine business results Each construction project must sign a separate construction contract The duration of the Contract may be for one accounting year or for many other accounting periods Therefore, determining when to recognize revenue and expenses and determining business results depends on how accountants approach revenue and costs and determine from what angle the business results according to the contract translation or contract Secondly, the method of determining revenue, costs and determining business results Depending on the time to complete the contract and the commitment under the contract as well as the approach of the Enterprise, the method of determining revenue, costs and determining business results will be different The method of determining revenue and expenses can be according to the completed work method or according to the contract completion schedule Thirdly: Revenue and cost accounting methods and determination of business results Depending on the object of collection, the methods of accounting for revenue and expenses and determining business results of construction activities in construction enterprises are different The management mechanism of enterprises is mainly based on the contracting mechanism through contracts, therefore, the accounting of revenue, costs and determination of business results depends on the level of management decentralization and accounting of each Enterprise Fourthly: Presenting information on financial statements The presentation of information in the financial statements also depends on whether the entity determining the revenues, costs and results of business of the Enterprise is business or contractual obligations 1.2 Concepts, content of revenue, costs and business results of construction activities 1.2.1 Concept and content of business results of construction activities There are many different theories and methods for measuring seizure activity Each accounting theory has its own views on the nature and methods of determining performance in accordance with established concepts and principles Measuring the performance of an entity is a very important function of accounting Information about an enterprise's operating results, which is used to determine revenue, cost and business results, is useful to different users of information in the following main aspects: Information about the accounting results is the basis for implementing the distribution policy, including distributing to shareholders in the form of dividends and retained earnings in order to develop the operating scale of the unit In addition, the accounting performance is the basis for determining corporate income tax liability It can be said that there are many different ways to determine business results, according to the author, there are basically two ways of determining business results - Income is the increase in the value of an entity which is determined by the value of net assets at the end of the period from the value of net assets at the beginning of the period, excluding direct changes in net assets due to owners capital contribution or withdrawal This is an approach based on static accounting - Business results are determined based on economic transactions generating income and expenses These are approaches based on entity theory and dynamic accounting Accordingly, income and expenses are recognized according to the matching principle and the performance principle The results of operations not include fluctuations in the value of assets and liabilities due to events unrelated to the operations of the entity However, in this thesis, the author only studies the business results of construction activities in the civil construction unit based on the second determination: comparison between revenue and cost The determination of revenue from construction activities is based on the determination of revenue from construction activities and determination of construction costs Therefore, the content of determining business results of construction activities is also determined based on the content of revenue and expenses of construction activities 1.2.2 Concept, content of revenue from construction activities • The concept of revenue from construction activities Based on the concept of revenue, the author thinks that construction revenue has the following characteristics: - Revenue from construction activities is the increase in the total value of economic benefits for construction enterprises through construction contracts - Manifested through an increase in assets or a decrease in liabilities, indirectly increasing equity • Content of revenue from construction activities Revenue of a construction contract includes: (a) Initial revenue recognized in the contract (b) Changes in contract performance, incentives and other amounts that + Ability to bring in revenue + They can be reliably identified Revenue is determined by the fair value of the amount received or to be received The determination of revenue is affected by many uncertainties as it depends on future events such as design changes from the contract, changes in the prices of inputs, the investor's delay in the acceptance of the completed volume…that's why it is very necessary to ensure good input factors and construction on schedule To be able to limit the adverse effects that can reduce revenue is one of the top requirements of managers 1.2.3 Concept and content of construction activity costs The concept of construction operating costs From the cost concepts, the author believes that construction operating costs have the following characteristics: • Construction operating costs are the reduction in the value of economic benefits for construction enterprises through construction contracts • Manifested through a decrease in assets or an increase in a liability, indirectly reducing equity Contents of construction costs Expenses incurred in the period are recorded according to each construction contract (each work, work item) Construction contract cost is one of the factors affecting the determination of business results of civil construction enterprises Expenses that are allowed to be included in the cost of a construction contract include: Costs directly related to the construction contract General expenses related to the operation of Construction Contracts and can be allocated to each contract and each obligation in the Contract Other costs incurred outside the initial contract accepted by the investor to be paid will also be included in the Construction Contract Expenses that are not related to the operation of the contract or cannot be allocated to the construction contract are not included in the cost of the construction contract 1.3 Accounting for revenue, expenses and determining business results of construction activities 1.3.1 The view of approaching revenue, costs and determining business results of construction activities by transaction 1.3.1.1 Contents of transactional approach a/ Concept of construction contract Construction contract (construction contract) is a written contract for the construction of an asset or combination of assets that are closely related or interdependent in terms of design, technology, function or other primary uses b/ Consolidation and modification of construction contracts - When a construction contract involves many assets, the construction of each property will be considered as a separate construction contract when simultaneously satisfying the following conditions: + Offers are determined separately for each asset and each asset can operate independently + Each property has gone through a separate negotiation process with each contractor and the customer can accept or reject the part of the contract related to each property and + Can determine the cost and revenue of each asset c/ Time of revenue and expense recognition and determination of construction business results For the transaction-based approach, the identification of revenue-generating transactions in a construction enterprise is now determined based on whether the sale has been completed or not, because in fact there are many cases where Multiple related transactions taking place at the same time or as parts of a single transaction can also influence a decision on the nature of a sale Transaction-recognized expenses are recorded in proportion to the revenue generated from that transaction Construction revenue is recognized when all five of the following conditions are satisfied For the determination of business results, the time to be recorded is usually according to the accounting period such as the end of the quarter, the end of the year After collecting all revenue and construction costs incurred in the period, the accountant will transfer them to determine business results This is the basis for presenting revenue and expense information and determining business results on financial statements, specifically business results, and notes in financial statements 1.3.1.2 Method of determining and recording revenue and expenses and determining business results of construction activities Under this approach, when the outcome of a Construction Contract can be considered to be relatively certain, the revenue and expenses related to the Construction Contract should be recognized as the revenue and Expenses of the Contract proportionally to the amount of work completed on the balance sheet date The anticipated loss of a Construction Contract should immediately be recognized as a regulatory expense Revenue and expenses are recognized according to the completed portion of the Contract referred to as the percentage of completion method Under this method, revenue is determined to match the incurred costs of completed work shown in the income statement 1.3.1.3 Accounting for revenue, expenses and determining business results of construction activities To account for revenue, expenses and determine business results of construction activities, accountants will use Account 511, Account 621, Account 622, Account 623, Account 627, Account 632, Account 911, Account 154 Each account will open a detailed book to track each Contract depending on the specificity and details of each part of the work to be performed under the contract Construction enterprises are popularly applying the method of contracting construction works to their subsidiaries or affiliated enterprises or to production groups and teams This is the main method and suitable for the current trend The securitization mechanism includes itemized and compact securitization 1.3.1.4 Presentation of information in financial statements Enterprises need to report: the amount of Contract revenue recognized in the period, the method to determine the Contract revenue, the methods to determine the part of work completed during the Contract performance Total expenses incurred and profit recognized to date, amount of prepayments received and amount of outstanding retention 1.3.2 The view of approaching revenue, costs and determining business results of construction activities under contract 1.3.2.1 Contents of the contract approach a/ Concept of contract A contract with a customer is an agreement between two or more parties that creates enforceable rights and obligations The enforceability of rights and obligations in a contract is a matter of law Contracts can be made in writing, orally or implicitly according to the business practices of the entity The practices and procedures for establishing contracts with customers may vary across jurisdictions, economic sectors, and Businesses In addition, they may vary within an Enterprise (for example, they may depend on the type of customer or the nature of the goods or services committed) Businesses must consider these practices and processes when determining whether and when a customer agreement creates enforceable rights and obligations When considering contracts with customers, the following criteria should be considered: + The Contracting Parties have accepted the Contract (in writing, orally or according to other business practices) and committed to perform their respective obligations + Be able to determine the rights of each party in relation to the goods or services to be transferred; + Can specify payment terms for goods or services to be delivered; The contract is of a commercial nature (is the risk, time or value of the entity's future cash flows that are expected to change as a result of the Contract) + It is possible to receive payment due to the Enterprise's right to receive when delivering goods or services to customers b/ Consolidation and modification of construction contracts Where an enterprise enters into at the same time or near the same time two or more contracts with the same customer (or related parties of the customer), the enterprise recognizes such contracts as a single contract if one of the following criteria is guaranteed: a- The contracts are negotiated as a package contract with the same commercial purpose b- The value of the payment to be paid in one contract depends on the price of the other contract or the performance of the other contract c) The construction works committed in the contract (or a number of construction works committed in each contract) is a single obligation to be performed in accordance with the provisions of the contents of identification contractual obligations c/ Time of revenue and expense recognition and determination of construction business results For each Contract at its inception, the Enterprise must determine which obligations under the Contract will be fulfilled within a period or at a point in time in order to determine when revenue, expenses and determine business results accordingly To ensure the matching principle, the time of recognition of expenses must be consistent with the time of recognition of revenue When revenue is recognised, an expense shall be recognized corresponding to the obligation fulfilled under the Contract On that basis, accountants will determine business results - The contract is completed over a period of time - The contract is completed at a time 1.3.2.2 Method of determining and recording revenue and expenses and determining business results of construction activities Methods of measuring progress The civil construction enterprise must apply a single method of measuring performance for each performance obligation completed over a period of time, and the enterprise must apply 11 standards are also reviewed and revised accordingly During this time, an important milestone was the agreement with the Financial Accounting Standards Board (USA) The two sides have cooperated to review the differences between the International Accounting Standards and the American Accounting Standards The IASB and FASB have jointly signed a memorandum of understanding committing to research and develop to issue a set of high-quality common international accounting standards globally 1.4.2 Advantages of international accounting standards IFRS 15 After a period of research and discussion, IASB and FASB have published financial reporting standard IFRS 15- Revenue from contracts with customers This Standard comes into effect from January 1, 2018 Revenue is considered the most important factor in businesses as well as investors The application of this standard also greatly affects the preparation and presentation of financial statements Advantages Firstly, Determine the construction contract Secondly, determine the obligations of the Contract Thirdly, about the time of recording Fourthly, recognize revenue and expenses under the contract Fifthly, determine the contract value and allocate the contract value to the obligations Disadvantages - Although IFRS increases financial transparency for users of financial statements around the world, some enterprises think that the IFRS accounting system is too complicated - In some countries the basis of accounting is still on the historical cost basis as in Vietnam, while IFRS 15 is based on the fair value basis In order to apply fair value, an efficient market is required - The cost to make the conversion to IFRS is quite large, making many businesses not want to convert Moreover, the transformation depends on the political and cultural system of each country The choice of how to apply IFRS will vary from country to country - The level of management team and accounting personnel need to be trained to have high professional qualifications to be able to perform; 1.4.3 Experiences of countries around the world when applying IFRS 15 1.4.3.1 Experience of Petrofac Group 1.4.3.2 Experience of Bouygues Group 1.4.3.3 Lessons learned for construction enterprises in Vietnam when applying IFRS 15 Conclusion Chapter Chapter ACCOUNTING STATUS OF REVENUE, COSTS AND DETERMINATION OF BUSINESS RESULTS OF CONSTRUCTION ACTIVITIES IN CIVIL CONSTRUCTION ENTERPRISES IN HANOI 2.1 Overview of construction activities in civil construction enterprises in Hanoi 2.1.1 Development history of the civil construction industry in Vietnam and Hanoi 2.1.2 Characteristics of management organization and production and business activities 2.1.2.1 Organizational and management characteristics The actual survey of civil construction enterprises in Hanoi shows that the organizational and management model in construction enterprises often follows the model of a company or a corporation 12 According to the company model: Through the survey, the enterprises implementing the management organization according to this model are usually joint stock companies, private companies, limited companies, partnerships Civil construction enterprises in Vietnam in general and in Hanoi in particular are basically small and medium sized enterprises, so the corporate model accounts for a large proportion These companies are organizations with independent economic accounting status The management model of these enterprises is usually organized in two-tier, three-level or a combination According to the survey 68% of the companies surveyed are small and medium sized companies Corporation model: under this model, the head is the Chairman of the Board of Directors and the CEO The assistant to the Board of Directors and the General Director is the deputy general director, and the departments include: Planning, organization, engineering, production and construction, human resources, construction investment, cost estimation Below are the member units organized into affiliated accounting units without legal person status and independent accounting units with legal person status In addition, in the management system of enterprises of this type, it is possible to organize an additional supervisory board that plays the role of inspecting and monitoring the activities of the Board of Directors and the Board of Directors so that the activities of the General Director The company is operated in a transparent manner for the benefit of the Corporation's shareholders 2.1.2.2 Features of production and business activities In today's competitive environment, in order to have a contract or a large construction project, most civil construction companies have to construction bidding For small and medium-sized construction works, there is usually no need to bid, between the investor and the contractor, there should be a contract to sign the execution of the work or construction project After the contract is signed or after successful bidding, enterprises will contract out works and work items The contract allocation depends on the capacity of the enterprise, the scale of the project as well as the existing capital of the enterprises conducting the contract Basically, there are two main forms of contract assignment: compact contract and management account (cost item) 2.1.2.3 Features of construction process and construction process of civil construction works 2.1.3 Characteristics of financial management mechanism in civil construction enterprises in Hanoi 2.1.4 Actual situation of applying organizational model of accounting apparatus Survey results of 65 companies including civil construction companies and corporations The accounting model that is being used commonly in enterprises is the centralized and distributed accounting apparatus organization model, which is suitable for medium and large sized companies with a wide range of activities stretching accounts for 68% (For example Vinaconex joint stock company, Hanoi civil construction joint stock company ) For small and medium sized companies, the scope or area of operation is narrow (eg, Thu Do Youth Construction Joint Stock Company, Phu Xuan Construction Company Limited, etc.) often choose an organization the centralized accounting apparatus accounts for 20% In addition, 12% of surveyed companies have a distributed accounting system These are corporations that have affiliated companies or have affiliated enterprises 2.1.5 Actual situation of applying accounting policies Currently, 100% of companies have applied Circular 200/2014/TT-BTC dated December 22, 2014, Circular 133/2016/TT-BTC dated August 26, 2016 and VAS 15 standards In which a 13 number of corporations and groups are preparing to convert to apply international accounting standards IFRS 15 These are mainly large, foreign-invested companies 2.2 Actual situation of revenue, cost accounting and determination of business results of construction activities in civil construction enterprises in Hanoi 2.2.1 Actual situation of application of construction contracts in civil construction enterprises in Hanoi According to the nature and content of the construction contract, 30% of civil construction enterprises are mainly large-scale enterprises such as Vinaconex Corporation, Handico Construction Corporation all perform contracts from consulting, design, survey, construction, supervision as well as installation of technological equipment Usually these companies are a main general contractor with financial capacity and large scale, often able to bid for large projects These companies can then hire subcontractors or assign subsidiaries to perform each part of the project 70% of civil construction enterprises are small and medium-sized enterprises, often subcontractors or subsidiaries of corporations, due to their limited capacity in terms of scale and construction capacity or financial capacity to accept only part, each work item The signed contracts can be design consultancy contracts, part construction contracts or equipment supply contracts In addition, the civil construction enterprises that perform contracts to provide human resources, machines and construction equipment These are small-scale enterprises, often lack of work to do, so they are ready to accept it perform this contract to ensure the operation of the Enterprise In the form of contract price, construction contract + For package contracts: only about 5% of enterprises sign package contracts, these contracts are usually small contracts with short implementation time such as repair or expansion of works + For fixed unit price contracts: this is the contract signed mainly between main contractors and subcontractors or with affiliated companies, accounting for 78% + The contract of adjusted unit price is less than 10% applied, mainly applied to works of construction period, affected by time and environmental factors However, the degree of adjustment depends on the agreements in the contract In addition, the contract has a unit price over time, and the combined contract only accounts for 7% According to the relationship of the contracting parties, the construction contract currently surveyed by the survey includes mainly main contractor contract, subcontractor contract, internal contract contract Contracts with foreign elements account for only about 10% because domestic enterprises often have a better grasp of the regulations as well as the steps to participate in bidding for works and work items According to the pricing method, at civil engineering enterprises, the main type of contract is the fixed price contract, accounting for 90%, the contract with additional costs accounting for only 10% During the execution of a Construction Contract, there are often fluctuations such as design changes, an increase in construction volume or changes in prices Therefore, the modification of a Construction Contract is a problem Problems that businesses often encounter However, at present, there is no regulation on how the contract amendment will be implemented, leading to the Enterprise having no basis to determine whether to establish a new contract or cancel the old one to establish a new contract or to perform as part of an existing 14 contract The modification of contracts at construction enterprises is often done according to the subjective point of view of the contract signer, so there is no consensus on how to set up the contract 2.2.2 Time to recognize revenue, expenses and determine business results of construction activities in civil construction enterprises in Hanoi Through the survey at civil construction enterprises, 65 surveyed enterprises all recorded revenue and expenses and determined the results to be approached by transaction Therefore, the time of revenue recognition is determined based on the revenue recognition conditions and not on a contractual basis Each work part, work item has a revenue and cost estimate, accountants often have to stick to the estimates to record revenue and expenses accordingly Because the price of the works is determined in advance right at the time of signing the contract, usually fixed-price contracts, the recognition of revenue and expenses must not exceed the estimate Any arising amounts exceeding the estimate must be re-arranged with the investor or main contractor Works usually last from a few months to several years, so the recognition of revenue, expenses and determination of business results is often divided into several stages In addition, for small and medium-sized companies, often these companies are not qualified to contract a large project but are only subcontractors or subsidiaries in a corporation undertake a part of a work or a work item The time to recognize revenue here is to recognize revenue when all construction work is completed as agreed 2.2.3 Method of determining and recording revenue, expenses and determining business results of construction activities in civil construction enterprises in Hanoi 2.2.3.1 Method of determining revenue, cost and determining business results of construction activities in civil construction enterprises in Hanoi - Method of determining revenue from construction activities Although each construction project and Enterprises sign one or several construction contracts, the recognition of revenue and expenses does not depend on the contract or the time to complete the signed contract but depends on transactions generate revenue When the conditions are met, the civil construction enterprise will recognize the revenue regardless of the construction contract Through the survey, 100% of civil construction enterprises signed contracts according to the completed work volume but did not sign contracts according to the completion schedule This means that revenue recognition is made according to the amount of work completed and delivered In which, the volume of completed and handed over work is determined by the construction enterprises based on the percentage of completion of the work, specifically based on the percentage of actual costs incurred over the total estimated cost However, the work has been completed through the survey of 100% of enterprises, although presented in the financial statements, it is applied according to the percentage method between the actual costs incurred over the total cost according to the estimate, but in fact, the enterprises is applying the completed work evaluation method This is because the determination of revenue is usually based on invoices issued to customers and is suitable for each payment period according to the contract - Method of determining construction operating costs The survey results of 65 civil construction companies in Hanoi showed that 100% of the companies still applied the transaction cost method and corresponded to the volume of work completed and handed over 15 Construction accounting usually records revenue corresponding to a technical stop or each work item according to the work estimate Therefore, the recognition of the cost of the cost of each work, work item is made corresponding to the time of revenue recognition, based on the completion percentage of the construction product corresponding to the volume of construction the amount of work completed and delivered, or in other words relative to the revenue recognised Such determination of the cost of goods is not appropriate because there will be a difference between the actual cost recognized and the actual costs incurred 2.2.3.2 Recording revenue, expenses and determining business results of construction activities in civil construction enterprises in Hanoi - Recognition of revenue from construction activities When considering revenue recognition, the civil construction enterprise is based on the signed construction contract and on the value-added invoice sent to the customer about the completed work volume Civil construction enterprises are obliged to complete and hand over the parts of the work committed under the Contract Enterprises determine the jobs to be performed in a Contract on the basis of detailed estimates for each work, work item Each accounting work will open a detailed book to track each payment corresponding to the revenue recognized for each project or work item Civil construction enterprises incur payments such as bonuses and penalties for contracts related to the progress of work completion, construction quality or construction safety, etc The bonuses are usually due to the enterprise's completion first duration of contract Bonuses are usually recognized by Enterprises in other income when incurred and invoiced Construction Contracts not generate payables to customers, substantial financial supports The current arising amounts are only accounted for at the time when the customer takes over the work, if awarded, the Enterprises will record it in other income, if the contract is penalized, the Enterprises will record a decrease in revenue is recognized - Recording construction activity expenses Currently, civil construction companies in Hanoi all account for costs, according to each project and work item Each work, work item is opened according to a contract code Each project, work item from the start to the completion is opened its own detailed tracking book Besides bonuses, civil construction businesses often face fines The majority of surveyed enterprises often incur these fines, accounting for 80% of surveyed enterprises The fine under the contract is because the construction enterprise often has to go to work due to unsatisfactory quality, failure to ensure the construction progress according to the contract, failure to comply with the design, etc The fine is accounted for record a decrease in revenue when incurred Besides, the author finds that in addition to the costs directly related to the contract incurred after signing the contract, there are costs incurred before signing the contract such as reception costs, contract negotiation costs, etc contract, contract bidding costs These costs are obligatory costs that Enterprises must pay regardless of whether the contract is successful or not However, enterprises still recognize these costs in contract costs when the contract is signed and performed In addition, there are costs incurred directly related to the contract that are not recognized in the contract 2.2.4 Revenue and cost accounting and determination of construction business results in civil construction enterprises in Hanoi 2.2.4.1 About the voucher system, user accounts Through the survey, the system of vouchers and accounts at the construction enterprises are in accordance with the guidance of Circular 200/2014/TT-BTC and Circular 133/2016/TTBTC 16 Through interviews with a number of accountants in the enterprise, it was found that the accounting voucher system to reflect revenue and expenses is quite diverse and rich, because the economic transactions arising in the enterprise are quite different and often 2.2.4.2 About the order of accounting for revenue, expenses and determining business results - For small and medium-sized civil construction enterprises - For enterprises applying the contracting mechanism Activities of civil construction enterprises in Hanoi are mainly carried out through contracting contracts These contracts can be between superiors (corporations or companies) and subordinates (subsidiaries or production teams) In addition, in case, the company cannot perform all the work items, the company can sign a contract with a subcontractor The two main forms of payment in civil construction enterprises are itemized contract and compact contract Through the survey of civil construction enterprises in Hanoi, only about 20% of the surveyed enterprises have contracted cost items, the rest 80% of the enterprises implement the compact contract However, the compactness of the contract depends on the size and structure of the Enterprise + For the case of itemizing: The contract for this item is usually done within the corporation or company Revenue and expense accounting and determination of business results are all done at the superior unit Lower-level units are often units that not have the capacity to manage and organize their own accounting such as groups, production teams or affiliated enterprises + For the case of compact contract: Most civil construction enterprises contract the works to subordinates or subcontractors (contractors) Usually, the contracted party is a unit that has its own accounting organization, capable of organizing construction as well as managing the work However, the transfer of costs and determination of business results depends on the accounting decentralization and financial mechanism on profit distribution of each civil construction enterprise Case 1: The lower level is only allowed to account for the cost according to the flat price and settle it with the superior through Account 136, Account 336 Case 2: Subordinates are accounted for the cost of Works, Work items at actual cost, recognized as revenue at the flat price and business results before corporate income tax are determined At that time, the contracted subordinates can fully use accounts 632, 511,911 and account them as an independent enterprise In addition, due to the accounting of construction activities under contract, revenue, expenses and business results at civil construction enterprises in Hanoi are recognized under the contract corresponding to the technical stop or according to the contract period each work item according to the volume of work completed and handed over Therefore, the recognition of revenue and expenses and determination of business results under the construction contract for each work, work item is performed corresponding to the time of revenue recognition, based on the ratio completion percentage of the construction product Businesses recognize revenue based on invoices that they issue to customers To record revenue, civil construction enterprises in Hanoi only use account 511 and not account 337 2.2.5 Presenting revenue and expense information and determining business results of construction activities on financial statements Currently, at civil construction enterprises in Hanoi, arising economic transactions related to revenue, expenses and determination of business results are usually reflected in receivables 17 from customers and payables For the seller Because enterprises apply the original price principle, no estimates related to revenue and expenses are generated Although revenue and expenses for each contract are still recorded separately, enterprises can determine business results for each contract - About Notes on Financial Statements: The notes on the financial statements of revenue and expenses are fully explained by civil construction enterprises with information about each construction contract However, Enterprises not make material judgments and changes in those judgments relating to the Contract - Separation of revenue information: The presentation of revenue recognized to customers is currently explained by enterprises quite separately between contract revenue and other revenue sources In civil construction enterprises, in addition to construction contract revenue, there is also revenue for other activities such as real estate business, mining, production and processing of building materials, import and export business - Separation of cost information: Cost information is also presented by civil construction enterprises separately the costs for each different type of business activity For construction contracts, the information is presented for each work project or work item For ongoing works, the accountants present information about the beginning and ending numbers for each project - Contract balance: The balances including the opening and closing balances of receivables from customers and payables to sellers are presented in quite specific detail for each project in progress and for each customer In which, the completed works and the unfinished projects are shown on the financial statements 2.3 Assessing the current status of revenue and expense accounting and determining the business results of construction activities in civil construction enterprises in Hanoi 2.3.1 Achievements 2.3.2 The limitations still exist Firstly: Determine the construction contract Construction contracts in civil construction enterprises have many different types However, most Construction Contracts are not divided into obligations to be fulfilled under the Contract Which Contracts are obligated to complete at a time, which Contracts are obligated to complete over time The current determination of the Contract does not guarantee the basis for the recognition of revenue and expenses according to the actual arising but mainly only to ensure the recognition in accordance with the Contract Secondly: Time to recognize revenue and expenses and determine construction performance results As mentioned above, the current revenue access at civil construction enterprises is still based on transactions without being attached to each construction contract Although guided by VAS 15 and TT 200, it has not yet covered all arising cases related to a Contract Revenue recognition is still based on arising transactions related to revenue, expenses and determination of business results The current approach to revenue, expenses and determination of business results is mainly for tax purposes but not for accounting work Third: Method of determining and recording revenue and expenses and determining construction results - Method of determining revenue In the present Contract, Enterprises not refer to the transfer of obligations under the Contract to be performed over a period of time or performed at a point in time Failure to 18 determine the time of transfer leads to the recognition of revenue and expenses under the Contract which will not be timely and not true to the nature of the arising economic transactions Through the survey, civil construction enterprises still apply revenue recognition according to the volume of work completed and handed over Revenue is recognized only when the customer confirms the completed workload and accepts payment This recognition is quite appropriate in the current case when Enterprises still apply contracts according to the amount of work completed and handed over However, this method of recognition does not reflect the actual progress of the work that the enterprise is implementing - Method of determining cost The method of determining the cost according to the percentage of completion of the work is suitable with the volume of work completed and handed over according to the estimate The determination of costs is done in proportion to the determination of revenue Such cost determination will usually not be associated with the actual costs incurred, inconsistent with the contract performance schedule - Regarding revenue recognition from construction activities + Regarding the performance obligations under the construction contract When performing the Contract, enterprises not identify this Contract as a separate obligation or a series of separate obligations The determination of these obligations should be based on whether the transfer of control of the assets to the customer is at a point in time or over time In which cases, the Contract will have only one obligation transferred to the customer, in which cases the Contract will include a series of obligations transferred to the customer + Regarding the determination of transaction value according to the construction contract Civil construction enterprises not have detailed instructions in case the contract has a clause on the value of the transaction that can be changed (discount, trade discount, discount, returned goods), causing difficulties difficult for businesses to recognize revenue Currently, businesses often recognize revenue at the invoice price when the product has transferred most of the risks and benefits to the customer, when there is evidence of rebate, trade discount or discount just recorded a decrease in revenue + On the allocation of contract value to the obligations of the construction contract Since most civil construction enterprises only define each Contract as an obligation to perform, the entire Contract value is not segregated for individual obligations This leads to the Enterprise not being able to determine the revenue and expenses for each obligation to perform in the Contract, so it will be difficult to analyze the performance of each arising obligation in the contract - Regarding the recognition of construction costs The costs incurred under the Contract include the costs directly related to each Contract including the costs of direct materials, direct labor costs, manufacturing overheads However, there are expenses incurred prior to the formation of the Contract but these costs are not related to the Contract or cannot be recovered under the Contract and are still recognized by the Enterprise in the Contract costs In addition, there are expenses that the Enterprise can recover according to the progress of the Contract, but the Enterprise will record them all in expenses in the period Fourthly: Accounting for revenue, costs and determining construction performance results + As mentioned above, economic transactions arising in connection with the collection of revenue, expenses and determination of business results are normally recorded in accounts 19 receivable from customers and payable to customers sell Although there is a separation between revenue, contract costs and revenue from other activities, it does not recognize contractual assets and contractual liabilities separately This means that all contractual receivables and payables are treated as non-binding contractual obligations + About accounting under the contract system  The regulation of accounting accounts used in the contracting department and the contracting division has not provided detailed, specific and unreasonable instructions, the content reflected is not clear, the nature of the contract has not been shown construction activities  The current accounting system also creates flexible conditions for enterprises, so the use of the bookkeeping system and especially the business book to keep track of the receiver is not separate accounting and there is no mechanism for inspection and control control easily leads to many negatives in administrative management  The contracted department when completing the Works, Work items often not want to save on material costs and labor costs because if there are savings, they will not enjoy those costs Therefore, contracted departments often not want to save costs or have savings, they find ways to raise the price of purchased materials, declare an increase in the amount of materials used for their own benefits, even using Invoices, contracts with outsourced workers over which the company has no control  Currently, enterprises applying the contracting mechanism have not paid attention to the internal norm system in the process of contracting Construction enterprises still rely on the norm system that the Ministry of Construction has promulgated mandatory details for the field of Basic Construction (norms on quantity and norms on unit prices) However, when assigning contracts to subordinates, although they must comply with the quantity and quality norms, because there is no internal norm, the assignment of contracts to subordinates according to the State norm system or contracted according to the State's norms percentage of revenue payable to superiors For expenses greater than the contracted amount that are not settled and the amounts not paid are recorded as internal receivables, and because there is no basis for assigning responsibility to the contracted party, this debt is usually cannot be recovered Fifthly: Presenting information on financial statements Through the survey, civil construction enterprises did not present the following information because it is considered as separate information of each Contract, which is not necessary to be presented in the financial statements such as: - Obligations to perform on the Contract with the customer - The transaction price is allocated to the remaining performance obligations - Important judgments when recognizing contractual revenue - Determine the time to complete the performance obligation - Determination of transaction prices and values to be allocated to performance obligations - Assets recognized from the costs of acquiring or completing a contract with a customer 2.3.3 Causes of limitations 2.4 Assessment of the current situation of applying international accounting standards IFRS 15 in civil construction enterprises in Hanoi Currently, Vietnam is in the preparation stage and is gradually putting international accounting standards into practice in Vietnam, including IFRS 15-Revenue from contracts with 20 customers The author has built a questionnaire consisting of 40 closed and open questions, sent to 30 subjects including accountants and financial managers of the company, auditors, lecturers teaching accounting subjects, audit to assess the understanding as well as the ability to apply IFRS 15 to enterprises in Hanoi The questionnaire includes: + Part 1: General information + Part 2: Survey information about IFRS 15- Revenue from contracts with customers + Part 3: Difficulties in applying IFRS 15 Conclusion of chapter Chapter COMPLETE ACCOUNTING OF REVENUE, COSTS, DETERMINATION OF BUSINESS RESULTS OF CONSTRUCTION ACTIVITIES IN CIVIL CONSTRUCTION UNITS IN HANOI 3.1 Orientation to perfect accounting of revenue, expenses and determination of business results of construction activities in civil construction enterprises in Hanoi 3.1.1 Development orientation of construction enterprises in general and civil construction enterprises in Hanoi in particular 3.1.2 Basic requirements of perfecting revenue and expense accounting and determining business results of construction activities in civil construction enterprises in Hanoi 3.1.3 Orientation to perfect accounting of revenue, expenses and determination of business results of construction activities in civil construction enterprises in Hanoi 3.2 Complete solution to accounting for revenue, expenses and determining business results of construction activities in civil construction enterprises in Hanoi 3.2.1 Finalize the definition of the construction contract Construction contract is one of the important factors in the civil construction business This is the starting point for all construction activities of the enterprise, the basis for accounting to record revenue and expenses and determine business results in the enterprise Because the construction needs of each customer are different, the construction contract is also determined flexibly to suit each customer Depending on the different purposes of use, construction contracts are divided into different types However, in order for the Contract to serve as a basis for revenue and expense recognition and business results determination, construction contracts need to be classified into two groups according to contract obligations 3.2.2 Finalize the time to recognize revenue, expenses and determine business results Construction contract When approaching the contract, the civil construction enterprise should determine this contract the right to control the construction work performed over a period of time or performed at a point in time regardless of whether it is a normal construction contract or real estate sales contract If the control over the construction works is exercised within a period of time as committed in the contract, upon receipt of payment from the customer according to the contract schedule, this amount will be recognized in revenue 21 3.2.3 Perfecting the method of determining and recognizing revenue and expenses and determining business results Construction contracts 3.2.3.1 Completing the method of determining revenue and expenses according to construction contracts - Perfecting the method of determining revenue according to the construction contract To determine the method of determining contract revenue, accountants need to determine which obligations are fulfilled at one point in time and which are discharged over time In the case of obligations completed by time, it is necessary to determine revenue recognition according to the contract completion schedule without the customer's confirmation The Contract Completion Percentage should be applied as a ratio of the actual costs incurred for the work completed to the total estimated cost of the Contract - Completing the method of determining costs under the Contract Contractual costs should be aggregated for each contractual obligation The determination of costs must also be consistent with the method of determining revenue It is a method of determining contract completion schedule When qualifying for revenue recognition, accountants will record expenses corresponding to each completed obligation Cost of Completion Percentage Selectable input or output scaling methods However, according to the author, a percentage should be used between the actual total costs incurred over the total estimated costs for that obligation 3.2.3.2 Completing revenue and expense recognition under construction contract - Identify the steps to recognize revenue Currently, the recognition of revenue and expenses in civil construction enterprises is still mainly approached by transaction However, due to the unique characteristics of the civil construction unit, the determination of revenue, costs and determination of business results is done before the construction activities are carried out and is done according to the agreement in the contract This makes the transaction-based approach to revenue no longer relevant The recognition of Contract revenue will be the basis for recognizing expenses under the Contract Although there is a VAS 15 standard that stipulates contractual revenue, it has not yet provided a way to determine how contract revenue is, on that basis to determine contract costs Therefore, it is necessary to provide specific steps on how to approach contractual revenue - Finalize the valuation of the contract Where construction contracts include both fixed payments and variable payments The company needs to determine whether the variable payment is due to discounts, rebates, rebates, subsidy credits, price incentives, performance bonuses, etc The company needs to estimate the value of the variable payments by using one of two methods: expected value and most probable value - Completing transaction price allocation for contractual performance obligations If the contract has only a single performance obligation, the entire transaction price is allocated to that transaction However, if the contract has multiple obligations, the transaction price will be allocated to the related obligation based on the estimated price of each obligation to perform under the contract As in the case of a construction enterprise, both perform the obligation to execute the work and perform the obligation to supply and install equipment The price of the Contract will have to be allocated specifically for each obligation of construction work and obligation to provide equipment 22 3.2.3.3 Completing cost recognition under the contract To determine contract revenue, one of the important aspects of accounting is determining contract costs The costs directly related to each contract such as cost of goods sold, labor costs, direct material costs, construction machine costs, other general management costs These costs are accounted for directly gathered under each contract In addition, the machinery and equipment not actually used for the Contract is still included in the Contract cost, which is unreasonable, it should be excluded from the Contract cost 3.2.4 Completing revenue and cost accounting and determining business results Construction contracts - Completing the accounting system for civil construction enterprises under the Contract In addition to using the revenue and expense accounts and determine the business results To account for contractual revenue and expenses, it is necessary to use additional accounts reflecting contractual assets and contractual liabilities in addition to accounts receivable from customers and payable to sellers normally Accounts receivable from customers and payable to suppliers are recognized only when no binding conditions are attached to the Contract If the recognition of revenue and cost of capital is attached to binding conditions in the Contract, the Enterprise should use according to the account the assets under the Contract and the liabilities under the Contract Supplements and adjustments are needed to guide civil construction enterprises to obtain a legal framework for revenue and cost accounting and determine business results Construction contracts in pre-contract terms The system of accounting accounts used, the recording content of each party, including the assignor and the contracted party, need to be revised Building an account system to provide information to serve the requirements of the contracting mechanism of civil construction enterprises Civil construction enterprises are applying the contracting mechanism but have not paid due attention to the construction of the internal norm system in the process of contracting works Construction enterprises completely depend on the detailed and specific norm system of the Ministry of Construction (norms in both quantity and unit price) but have not yet built their own system of norms to serve the construction industry internal contract - Completing the order of revenue and expense accounting according to the construction contract This accounting procedure applies to Construction Contracts, the completion of Contracts over time  At the time of receiving the advance from the Contract Debits to Cash Account Have Accounts Payable under Contract  In the first stage, when the obligation has been fulfilled but not yet reached the technical stop, payment is accepted by the customer, the revenue recognition is equal to the actual costs incurred + Debits to Assets Account under Contract Debit Account Payable under Contract Have a Sales Revenue Account + Account debit Cost of goods sold Have account in progress of production and business expenses 23  When the contract completion result reaches the technical stop accepted by the customer, + Debits to Assets Account under Contract Have a Sales Revenue Account + Accounts Receivable from customers Have an Asset Account under the Contract + Account debit Cost of goods sold Have account in progress of production and business expenses  In the final stage when the fulfillment of the Contract obligations is equal to or lower than the technical stoppage level paid by the customer + Accounts Receivable from customers Have a Sales Revenue Account + Account debit Cost of goods sold Have account in progress of production and business expenses - Perfecting the contracting mechanism, building norms in construction in progress enterprises Currently, construction in progress enterprises are applying the contracting mechanism Construction enterprises completely depend on the detailed and specific norm system of the Ministry of Construction (norms in both quantity and unit price) but have not yet built up a norm system for the construction work internal contract For expenses larger than the amount of the contract that have not been settled and the unpaid amounts are recorded in internal receivables, Enterprises are often confused in assigning responsibility to the contracted team, debts over many years which cannot be recovered must be recorded as bad debts 3.2.5 Completing the presentation of information on the financial statements The enterprise must present in the financial statements amounts recognized as assets arising under the contract and liabilities arising from the contract Assets arising under the Contract must be recognized separately from receivables (these amounts are not bound by contract conditions) If the customer makes a payment, or the Company has an unconditional claim to the value of the payment before the Company delivers the goods or services to the customer, the Enterprise must represent the contract as is a liability arising from a contract, when payment is made or when payment is due (whichever occurs first) A liability arising from a contract is an obligation of the enterprise to deliver goods or services to a customer when payment has been received from the customer (or the value of the payment is due) If Enterprises perform a contract by delivering goods or services to a customer before the customer makes payment or before payment is due, Enterprise must present the contract as an asset to the customer arising from contracts, excluding amounts presented as receivables The asset arising from the contract is the Enterprise's right to payment for goods or services that the Enterprise has delivered to the customer 3.3 Conditions for implementing solutions to improve revenue and expense accounting and determine business results of construction activities in civil construction enterprises in Hanoi 3.3.1 For the State and management agencies 3.3.2 For civil construction businesses Conclusion of chapter 24 CONCLUDE In the current inevitable trend, to be able to survive and develop, current businesses and especially civil construction businesses need a significant change to be able to gradually approach and follow keep pace with the progress of countries in the world This needs to be done not only in their business field but also in other activities such as accounting, finance, administration and marketing Especially when the whole society is increasingly integrating deeply and widely in a world In the 4.0 world, a question arises of how to survive in a digital world that is constantly fluctuating and changing rapidly Civil construction enterprises in general and in Hanoi in particular cannot be out of that trend When the 4.0 revolution has affected all aspects of production and business activities, unfinished construction enterprises that want to compete with other construction enterprises not only domestically and internationally, need a system accounting in accordance with the accounting systems of countries in the region and the world Especially for construction in progress enterprises, it is accounting for revenue and expenses and determining business results according to contracts When competition becomes fiercer, it is imperative for unfinished construction enterprises to make changes in determining revenue, costs and determining business results to ensure that the financial statements of the enterprise are accepted received not only in Vietnam but also in other countries Although the international accounting standard IFRS 15- Contractual revenue accounting has been published and applied in many countries around the world, in Vietnam, this standard has not really been applied in business accounting revenues, costs and determine contract results related to construction activities Therefore, in order to help construction companies in progress, they can gradually apply revenue and cost accounting and determine the results according to the trend of international accounting standards and in accordance with the actual situation in Vietnam The author has researched and presented some of the following contents: Systematize, analyze and research theoretical bases for revenue and cost accounting and determine business results under specific contracts, which are contracts related to construction activities Through surveys, surveys, and practical analysis, the author has assessed the current state of revenue and cost accounting and determined business results of contract construction activities, including construction activities and real estate business in unfinished construction enterprises in Hanoi The thesis has pointed out the strengths and limitations and inadequacies that the unfinished construction enterprises in Hanoi need to improve and supplement as well as the causes and limitations of those inadequacies and limitations On that basis, the thesis makes requirements and proposes solutions to improve revenue and cost accounting and determine business results of construction activities under contract of construction in progress in the locality Hanoi table At the same time, the author also clearly states the foundations and conditions on the part of the State and unfinished construction enterprises in Hanoi to be able to implement these solutions The author hopes that his proposals in the thesis can suggest a research direction to apply revenue and cost accounting and determine business results in unfinished construction enterprises in Hanoi, contributing to part of improving the position of construction in progress enterprises as well as gradually bringing construction in progress to integrate with the accounting of countries in the region and the world LIST OF SCIENTIFIC WORKS OF THE AUTHOR WAS ANNOUNCED Tran Thi Ngoc Anh (2016), Applying cost management accounting in small and medium-sized enterprises in Vietnam, Journal of Financial and Accounting Research, No 01, p.49 Tran Thi Ngoc Anh (2018), Lean accounting model: modern management accounting model in today's enterprises, Journal of Financial and Accounting Research, No 09, p.42 Tran Thi Ngoc Anh (2019), Impact of the 4.0 technology revolution on Accounting, Financial Journal, No 09, p.40 Tran Thi Ngoc Anh (2021), Lean Cost Accounting in Civil Construction Enterprises in Vietnam, Journal of Accounting and Financial Research, No 01, pp.27-30 Tran Thi Ngoc Anh (2021), Accounting of revenue from construction activities in civil construction enterprises, Journal of Financial and Accounting Research, No 04, pp.60-64 ... practice - Researching and surveying the current status of revenue and cost accounting and determining business results in civil construction enterprises in Hanoi, evaluating the achieved results,... contract construction products to affiliated companies or construction teams This is a form of attaching responsibilities and benefits to employees Characteristics of construction activities affecting... performance of the other contract c) The construction works committed in the contract (or a number of construction works committed in each contract) is a single obligation to be performed in