thực tập report eng final

NATIONAL ECONOMICS UNIVERSITY
ADVANCED EDUCATIONAL PROGRAM
INTERNSHIP REPORT
At Vietnam Air Petrol
Company Limited
Student’s name : Nguyễn Minh Đức
Class : Advanced accounting
Intake : 53
Supervior : Nguyễn Thị Hồng Thúy, PhD
Hà Nội - 2015

Supervisor: Nguyễn Thị Hồng Thúy, PhD
Nguyễn Minh Đức- Advanced Accounting 53
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Table of Contents
Acknowledgement..............................................................................................................6
Introduction .......................................................................................................................7
1. OVERVIEW ABOUT VIETNAM AIR PETROL COMPANY LIMITED ............8
1.1. Establishment and Development of Vietnam Air Petrol Company Limited.....8
1.2. Business Activities And Management Of Vietnam Air Petrol Company
Limited ..........................................................................................................................11
1.2.1. Business line: ...................................................................................................11
1.2.2. Management....................................................................................................12
1.2. Financial Position And Operational Results Of Vietnam Air Petrol Company
Limited ..........................................................................................................................14
2. ACCOUNTING DEPARTMENT AND ACCOUNTING SYSTEM AT
VIETNAM AIR PETROL COMPANY LIMITED. ....................................................18
2.1. Accounting Department At Vietnam Air Petrol Company Limited................18
2.2. Accouting Application: .........................................................................................19
2.2.1. Acocunting Standards:...................................................................................19
2.2.2. Accounting Policies:........................................................................................20
2.2.3. Accounting Vouchers And Accounting Documents. ...................................23
2.2.4. Accounts In Accounting System....................................................................27
2.2.5. Accounting Books:..........................................................................................30
2.2.6. Financial reports.............................................................................................32
2.2.7. Auditing In The Company .............................................................................35
2.3. The Main Accounting Cycles Applied By Vietnam Air Petrol Company
Limited ..........................................................................................................................35
2.3.1. Accounting for Inventory...............................................................................35
2.3.1. Accounting for fixed asset..............................................................................38
3. SOME REMARKS ON FINANCIAL ACCOUNTING MANAGEMENT AT
VIETNAM AIR PETROL COMPANY LIMITED. ....................................................41

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3.1. Remarks on Organizational Structure of Accounting Department at Vietnam
Air Petrol Company Limited ......................................................................................41
3.1.1. Advantages of Organization of Accounting Division ..................................41
3.1.2. Disadvantages of Organization of Accounting Division..............................42
3.2. Remarks on Financial Accounting Management at Vietnam Air Petrol
Company Limited.........................................................................................................43
3.2.1. Advantages of Accounting Management......................................................43
3.2.2. Disadvantages of Accounting Management .................................................43
SOME RECOMMENDATION ON THE ACCOUNTING SYSTEM AT VIETNAM
AIR PETROL COMPANY LIMITED: ........................................................................45
REFERENCE...................................................................................................................47
APPENDIX.......................................................................................................................48

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ABBREVIATION
HCM City: Ho Chi Minh City
Co. , Ltd: Company Limited

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List of Table
Table 1: The scale and operating results of the Company over 3 years: 2011, 2012, 2013
Table 2: Business ratios over 3 years: 2011, 2012, 2013
Table 3: List of the managerial accounts code

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List of Figures:
Figure 1: The development of the company
Figure 2: Management Diagram of the company
Figure 3: Accounting department firm Diagram
Figure 4: Process of record in general journal:

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Acknowledgement
I express my deepest thanks to PhD. Nguyen Thi Hong Thuy for for taking part in
useful decision and giving necessary advices and guidance and arranged all facilities to
make life easier. Her guidance and support help me know the methods of information
collection about the company. She helped all time when we needed and he gave right
direction toward completion of my internship report.
I wish to express my indebted gratitude and special thanks to Mr. Le Duc Dao, the chief
accountant of Vietnam Air Petrol Company Limited, who in spite of being extraordinarily
busy with his duties, took time out to hear, guide and keep me on the correct path and
allowing me to carry out my industrial project work at their esteemed organization and
extending during the training.I do not know where I would been without him.
I also would like to express my thanks to the Advanced Educational Program in taking
students chance to have this internship program. It really is a good opportunity for learning
and self development. I consider myself very lucky and honored to have so many wonderful
people lead me through in completion of this project.

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Introduction
Vietnam Air Petrol Company Limited (VINAPCO) was officially established in
July 1993, and was assigned importing and exporting petroleum products directly. After
more than 20 years, with nearly 1,500 staffs and employees, Vinapco is the best fuel
supplier to the airline at the Vietnam airport. Fuel is imported from the major international
markets such as Singapore, China, ...
With over 20 years operating experience in the field of petroleum, VINAPCO is really a
company that has developed constantly and continuously, and have many outstanding
achievements in production and trading. Moreover, accompanying wiht the development
of the company is a system of departments with efficient staffs, especially Finance and
Accounting department. With professional activities of the accounting system of the
company, VINAPCO is really a good choice for AEP’S internship program so I can study
about organizational activities of a large company with a full accounting system. Thereby,
I can learn a lot of practical experience to plan the next internship and for accounting
career path in the future. Therefore, I choose the company to intern, and report.

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1. OVERVIEW ABOUT VIETNAM AIR PETROL COMPANY
LIMITED
1.1. Establishment and Development of Vietnam Air Petrol Company Limited
Vietnam Air Petrol Company Limited is a state-owned company located in the unit
of independent accounting member of the Vietnam Airlines Corportaion. In 1993, along
with the innovation of the country, Vietnam Air Petrol company limited (VINAPCO) was
established under Decision No. 768 / QD / TCCBD on 22.04.1993 of the Ministry of
Communications and Transport and officially operated in January 07/1993, after the
Department of Civil Aviation invested 31 814 billion of capital (including 19 010 billion
of fixed capital: 17 804 billion in working capital).
On 06/09/1994, the company was established under Decision No. 847 / QD / TCCLD of
the Minister of Communications and Transport and Decision No. 185 /CAAV on
20.01.1996 of Department of Civil Aviation of Vietnam
On 15/07/2010, the Vietnam Airlines Coporation made Decision No. 1438 / QD-HĐQT-
TCTHK changing Air Petrol Company into Vietnam Air Petrol Company Limited.
Currently, the company operates under a certificate of business registration No.
0100107638 on 19/07/2010 by the Department of Planning and Investment in Hanoi issued
on 19.09.2012.
Company’s name written in Vietnamese: Petroleum Company Limited Vietnam Airlines.
Company’s name written in English: Vietnam Air Petrol One Member Company Limited.
Company’s Name Abbreviation: VINAPCO
Head office: 202 Nguyen Son Street, Bo De Ward, Long Bien district, Hanoi City.
Tel: 04 38272316
Fax: 04 38272317
Email: vianapco@hn.vnn.vn
Website: vinapco.com.vn
The development of Vietnam Air Petrol Company Limited
Throughout the operation of the company, the criteria is slogan: "Safety - quality -
efficiency – development continuously" and respect the interests of customers, become a
reliable partner of the domestic Airlines and abroad ones.

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From 01/7/2010, the company officially operated under the form of singe member limited
liability Company with a charter capital of 400 billion Vietnam dong, and was owned by
Vietnam Airlines. The objectives of the company is: To develop and maintain a leading
role in the field of fuel supply to Vietnam Airlines, the national airline and international
ones, and trade other petroleum products, operate the other industrial business sectors
effectively, preserve and develop the owner’s equity, complete other duties, make the
company growing, viable and developing in the economic socialist orientation market.
The development of the company is shown in the below chart:
Figure 1: The development of the company:

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7/1993
• Vietnam Air Petrol company limited (VINAPCO) was established
1994-2010
• VINAPCO was divided into 3 subsidiaries supplying gasoline in North,
Middle, and South of Vietnam, and 1 subsidiary for transportation, and
supporting with strong material facilities, and modern equipments.
2009
and 2010
• Investing more than 20 trucks form USA, expanding more than 60,000
m2 for containing JET A1 gasoline, build a new modern laboratory in
Tan Son Nhat international Air port
• Improving new charging method
• Build a high quality staff
01/7/2010
• changing Air Petrol Company into Vietnam Air Petrol Company Limited
• with a charter capital of 400 billions Vietnam Dong
2012
• Purchasing 25 new transportation trucks, build a new tank with 6000
m2 capacity in Tan Son Nhat Airlines, build a new laboratory in North
Air Petrol Company.
• Purchasing many new equipments for business activities, and safety
• Improving warehouses, and supplying system for all airport operating
within Vietnam
• with total investment reaching 177 billions Vietnam Dong.

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1.2. Business Activities And Management Of Vietnam Air Petrol Company
Limited
Business activities, rights, obligations and organizational management of the
company under the regulation about organization and operation of Vietnam Air Petrol
Company Limited (issued together with Decision No. 1444 / QD-HĐQT/ TCTHK on
15/07/2010 of the Board of Directors of Vietnam Airlines Corporation approved
organization and operation of Vietnam aviation gasoline company Limited).
1.2.1. Business line:
Vietnam Petrol Air Company Limited has full legal status under the laws of Vietnam,
registered business and activities in the form of limited liability company under the
Enterprise Law. On government assignment, company performs the rights and obligations
of the owners of the Vietnam Airline Corporations. Operational objectives of the company
is to develop, maintain a leading role in the supply of gasoline for Vietnam Airlines
corporations, the national airline and international ones, business efficiently, conserve and
develop stockholer’s equity of the company, complete tasks assigned by company owners,
grow in the socialist-oriented market.
Customers of the company are the parent company, Vietnam Airlines, other 3
national airlines and 56 international ones such as: VietJet Air, AirAsia, Jet Asia, Malaysia
Airlines, Thai Airlines, FedEX, Singapora Airlines, Korean Air, Thai Airways, Air
Hongkong, Silk Air, Dragon Air, Hongkong Airlines, Quatar Airways, China Eastern, Lao
Airlines, Jetstar Pacific, Vasco,… in Noi Bai international Airport, Tan Son Nhat
international airport, and other domestic airport from North to South. Now, VINAPCO is
the lead of gasoline supplier for airlines operating domestic.
Business activities of the company include:
- Wholesale of solid , liquid, gas fuels and related products
- inland waterways cargo transportation
- Warehousing and storage of goods (excluding real estate)
- Loading and unloading of goods
- Wholesale of machinery, equipment and other machine parts
- Wholesale cars and other motor vehicles
- Retail sale of cars (12 seats or less)
- Maintenance and repair of automobiles and other motor vehicles
- Selling spare parts and accessories of automobiles and other motor vehicles

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- Retail sale of other goods in specialized stores (includes: oil, gas, coal used for specialized
stores)
- Pipeline transportation...
1.2.2. Management
Management of the company is organized logically in the form of direct advisory
management:
Figure 2: Management Diagram of the company

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Functions and responsibilities:
- VINAPCO operates under the control of the parent company, Vietnam Airlines
Coporation, with some supervisor to checking and monitoring its activities.
- The Board of members manage the company by issuing policies and making
decisions on major company issues.
- Genaral Director, and Vice general directors are responsible for planning,
organizing, staffing, leading or directing, and controlling company’s activities to
accomplish the goals and objectives that was assigned by the board of members.
Under the control of directors, there are 10 departments for each speciaized business
activities: Department of Human resource, Department of Finance and accounting,
Department of Import and export, Department of Investment and planning, Department of
technology, Department of Informatic statistics, Department of safety, External
relationship office, Party and Unions office, and Representative Office at HCM City.
- The department of Human resource: supporting systems are responsible for
personnel sourcing and hiring, applicant tracking, skills development and tracking,
benefits administration and compliance with associated government regulations.
- The department of Finance and Accounting: The business functions of this
department typically include planning, organizing, auditing, accounting for and
controlling its company's finances. The finance department also usually produces
the company's financial statements.
- Department of Import and export: This department is responsible for import, and
export activities, international transportation, and collecting information about
international market.
- Department of Investment and planning: It focuses on creating company’s trategies
for investing activities, and planning business operations, analysis the result from
every previous activities to allocating the resources more effective.
- Department of technology: new product research and development: design new
software and other information systems to support business activites, updating
existing products: make improvement to currently systems in order to increase
quality and stability of products and services; and maintain the information system
to work stablely.
- Department of Informatic statistics: collection, classification, analysis, and
interpretation of numerical facts or data by using of mathematical theories of
probability and information systems, imposes order and regularity on aggregates of
business.
- Department of safety: Perform some activities for preventing buusiness and
employees from events that causes health or economical losses.

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- External relationship office: tasked with creating a positive public image for the
company.
- Party and Unions office: representative for Party and Labour Union to perform
activities and missions of Party to the company, and to ensure the rights of
employees.
- Representative Office at HCM City: The representative office is responsible for
operating the resident bank, depositing all cash receipts, and providing accounting
assistance to the financial services unit at HCM City.
Finally, the company have a large business distribution system with many member
companies and subsidiaties: North Air Petrol Company, Middle Air Petrol Company,
South Air Petrol Company, North Middle Branch, Air Petrol Transportation Company,
Norht Air Gasoline Company, South Air Gasoline Company.
1.2. Financial Position And Operational Results Of Vietnam Air Petrol
Company Limited
Vietnam Air Petrol Company Limited has been developing over recent years. This
is illustrated by the following table:
Table 1: The scale and operating results of the Company over 3 years: 2011, 2012, 2013:
Target Unit 2011 2012 2013 Diffirence
s between
2011 and
2012
Diffirence
s between
2012 and
2013
1. Total
asset
Millio
n Dong
6,751,044 7,421,294 7,532,445 9.93% 1.50%
2. Sub-
mission
of
budget
Millio
n Dong
139,645 153,250 160,324 9.74% 4.62%
3. Sales Millio
n Dong
620,577 1,043,645 1,133,205 68.17% 8.58%
4. Total
sales and
service
prodiving
revenue
Millio
n Dong
21,655,56
4
25,664,50
7
26,311,46
6
18.51% 2.52%

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5. Earnings
before tax
Millio
n Dong
12,046 83,813 92,838 595.77% 10.77%
6. Earnings
after
corporate
income tax
Millio
n Dong
8,980 61,846 68,841 588.71% 11.31%
7.
Stockholer’
s equity
Millio
n Dong
411,987 458,858 485,781 11.38% 5.87%
8. The total
number of
staff and
employees
People 1,233 1,246 1,257 1.05% 0.88%
9. Per capita
income
Millio
n Dong
per
month
4,913 5,554 5,915 13.05% 6.50%

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From operating result table, we have some kinds of financial ratios:
Table 2: Business ratios over 3 years: 2011, 2012, 2013
Financial
Ratios
Unit 2011 2012 2013 Diffirenc
es
between
2011 and
2012
Diffirences
between
2012 and
2013
ROA % 0.18% 1.13% 1.23% 532.94% 9.13%
ROE % 2.924% 18.266% 19.111% 524.70% 4.63%
Operating
Income
margin
% 0.056% 0.327% 0.353% 487.09% 8.04%
Gross profit
margin
% 0.041% 0.241% 0.262% 481.13% 8.57%
Total asset
turnover
% 320.774
%
345.823
%
349.308
%
7.81% 1.01%
The operating result of company shows that it continously develops with several years:
From 2011 to 2012:
The company had a dramatical increases at all targets, such as: total assets increased 9.93%
from 6,751,044 millions VND to 7,421,294 millions VND, sales increased 68.17% from
620,577 millions VND to 1,043,645 millions VND, total sales and services providing
revenue increased 18.51% form 21,655,564 millions VND to 25,664,507 millions VND;
specially, earnings before taxes increased 595.77% from 12.046 millions VND to 83.813
millions VND, and earnings after corporate income taxes increased 588.71% from 8,980
millions VND to 61,846 millions VND,… This increases was the result of the company’s
strategy in 2012 for investment to improving the facilities and equipment: purchasing 25
new transportation trucks, build a new tank with 6000 m2 capacity in Tan Son Nhat
Airlines, build a new laboratory in North Air Petrol Company, purchasing many new
equipments for business activities, and safety, improving warehouses, and supplying
system for all airport operating within Vietnam with total investment reaching 177 billions
Vietnam Dong. From these results, that changes had made a big increases in all business
results. It really was a right investment in right time, and also showed the efficiency of the
company’s management. In 2012, the company’s operation become more effective, and

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more profitable, that was performede by some important business ratio with great increases:
ROA increased 532.94%, ROE increased 524.70%, Operating Income Margin increased
487.09%, and Gross Profit Margin increased 481.13%.
From 2012 to 2013:
The company continued to grow up, and keep a increasing trend. The operating results had
slight increases, such as: sales increased 8.58% from 1,043,645 millions VND to 1,133,205
millions VND, total sales and services providing revenue increased 2.52% form 25,664,507
millions VND to 26.311.466 millions VND; specially, earnings before taxes increased
10.77% from 83,813 millions VND to 92,838 millions VND, and earnings after corporate
income taxes increased 11.31% form 61,846 millions VND to 68,841 millions VND,… It
shows that company always pay high attention in investing activities, and management
activities to make the company work more effectively, improving the material facilities
and equipments system.
The ROA ratio increased rapidly from 0.18% in 2011 to 1.13% in 2012 with the diffirence
of 533%, and from 1.13% in 2012 to 1.23% in 2013 with the differnece of nearly 10%. The
increase in ROA figure gives investors an idea of that the company is converting the money
it has to invest into net income more effectively. An increasing trend of ROA indicates that
the profitability of the company is improving. Therefore, it has shown the improvement of
company’s ablility and the effectiveness of its management to utilize its assets to create
profits. The company’s management has performed exellent job is to make wise choices in
allocating its resources, and operate the business.
The ROE ratio also increased from 2.924% in 2011 to 18.266% in 2012 with the diffirence
of 525%, and from 18.266% in 2012 to 19.111% in 2013 with the differnece of 4.6%. The
company's ROE goes up due to an increase in the net profit margin or asset turnover, this
is a very positive sign for the company. With this Return on equity, the company has
brought large profit to its investors. It pays to invest in this companies that generate profits
more efficiently than their rivals. The company’s high Return on equity (ROE) can attract
more investors.

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2. ACCOUNTING DEPARTMENT AND ACCOUNTING SYSTEM
AT VIETNAM AIR PETROL COMPANY LIMITED.
2.1. Accounting Department At Vietnam Air Petrol Company Limited.
Choosing the organizational model applied in accounting department.
Because the business organization of the company has subsidiaries in many provinces, and
cities of the country, the company has organized an accounting department in the form of
half-dispersed concentration. The offices of company have Department Of Finance And
Accounting is in charge of accounting all operations of the office block, and perform tests,
reports for the subsidiaries and collect the company’s balance sheet. At each subsidiaries
also have Departments Of Finance And Accounting to track and account transactions of
subsidiaries and petrol stations under the control of that subsidiaries. On the basis of the
costs incurred, sale received, the sales list at the retail stores of their units and the
department of finance and accounting of subsidiaries are responsible for collecting,
processing vouchers, details ledger, general ledger and prepare financial statements
following the requirements of department of finance and accounting at the head office of
the company.
Choosing the organizational model of financial accounting and management accounting.
Currently, the company are applying the combinated accoungting model. That is the
content in each organizational accounting tasks has a combination of financial accounting
and management accounting. However, the assignments are not specific and accurate
enough, management accounting of the company is not paid enough attention, just stop at
the first step and don’t bring information to serve the management works effectively.
Staff of accounting department:
The Department of Finance and Accounting of the company consists of more than 20
members with positions: Chief Accountant, 2 vice chief accountants, sales accountant, cost
accountant, business capital accountant, offical accountants, banking accountant, salaries
accountant and accountants for other accounts and accountants for construction and
investment, accountants of subsidiaries, and inventory accountants.
Accounting department firm is organized according to the diagram:
Figure 3: Accounting department firm Diagram:

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Organizing training to update and improve professional skills:
In general, the accountant at the company are trained professionally; chief accountant is
experienced, qualified, capable of organize the department efficiently. However, some of
the staff of the department has not been trained professionally. The training, updating skills
courses to improve qualifications for staff have not been interested for every staff, only has
been interested in the key officials of the accounting department.
2.2. Accouting Application:
2.2.1. Acocunting Standards:
Accounting regulations issued under Decision No. 15/2006 / QD-BTC on
20/03/2006 of the Ministy of Finance, and Circular No. 244 / 2009 / TT-BTC on
31/12/2009 about guidelines for amending corporate accounting regime, the Vietnam
accounting standards issued by the Ministry of finance and the documents for amendment
and supplement, guidelines.

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- Accounting Standards: Practice under the Vietnam Accounting Standards.
- Accounting Form: General journal.
2.2.2. Accounting Policies:
Vietnam Air Petrol Company Limited applied accounting regulations issued under
Decision No. 15/2006 / QD-BTC on 20/03/2006 of the Ministy of Finance, and Circular
No. 244 / 2009 / TT-BTC on 31/12/2009 about guidelines for amending corporate
accounting regime, the Vietnam accounting standards issued by the Ministry of finance
and the documents for amendment and supplement, guidelines.
The monetary unit used in accounting records is Vietnam dong.
Principles and methods convert other currencies into Vietnam dong at the actual exchange
rate at the time of the transaction.
Fiscal year starts on 01/01 and ends on 31/12 annually.
The method of calculating the depreciation of fixed assets was accorded to the straight-line
method over their estimated useful lives.
Comprehensive accounting of inventory was accorded to the perpetual inventory method.
Inventories are determined on the base of the lower of cost and net realizable value. cost
of inventory is determined by the weighted average method.
Calculation of the value added tax was accorded to the tax deduction method.
2.2.2.1. Principles of recording cash and cash equivalent accounts:
The monetary unit used in accounting records is Vietnam dong. Principles and
methods convert other currencies into Vietnam dong at the actual exchange rate at the time
of the transaction.
Fiscal year starts on 01/01 and ends on 31/12 annually.
- Cash accoounts: includes: cash, cash in bank, and cash in transit
- Cash equivalent accounts: Short-term investments maturing within 3 months, which are
able to tranfer into a specific mount of money easily, and not take risk in tranfering it into
money since purchasing this investmentss at the reported time.
- Principle and method using to exchange other currency to Vietnam dong in accounting:
+ Principle: Transactions which involve with purchasing and selling goods and materials,
assets, loan, and payment by foreign currencies exchange into VND to record entries.
Monetary accounts (cash account balance, account receivables, account payables) at the
end of accounting periods are reported at the exchange rates at that time.

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+ Exchanging method: based on foreign currencies in each transactions, to exchange into
VND, it will be mutilplied with the exchange rates for each currencies.
2.2.2.2. Principle of recording inventory:
- Principle of recording inventory is based on the historical costs of each kinds of goods.
- Principles of identifying value of inventory at the end of period: For fuels which are not
belonged to Aviation is weighted average method; for aviation fuel Zet-A1 is First in- First
out monthly.
2.2.2.3. Principles of recording and depreciating fixed assets:
Fixed assets consists of: Tangible fixed assets, intangible fixed assets, financial
leasing fixed assets.
Fixed assets are recorded and reflected in accounting book at historical cost. In the balance
sheet, it is reflected in 3 items: Historical costs, Accumulated depreciation, and residual
value.
Method of fixed asset depreciation: Straight-line method. Depreciation time is regulated at
Circulars No. 45/2013/TT-BTC on 25/04/2013 of the Ministry of Finance guiding
managing, applying, and depreciating fixed assets.
Depreciation rate annually is equaled to residual value divided by residual depreciation
time.
2.2.2.4. Principles of recording and capitalizing borrowing costs, and other expenses:
- Principles of recording borrowing cost: Interest for operating activities is recorded into
operating expenses.
- Borrowing costs which are capitalized are investing borrowing costs in the period that
fixed assest are not yet in use.
- Prepaid expenses: Prepaid expense is amount of prepaid money, but it is the expense for
next accounting period, includes: prepaid for suppliers,tools and íntruments equipments
and mechines, major repair of fixed assets, insurance expenses, expenses for leasing
warehouses, stores, and other expense of next period.
Method of allocating prepaid expense:
+ Allocating service expenses for inventory according to the perpetual inventory method.
+ Allocating tools and instruments in 2 years
+ Allocating major repair of fixed assets in 2, or 3 years
+ Allocating insurance expenses and leasing expense according to insurance, or leasing
time.

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2.2.2.5. Principles of recording account payables:
Account payables are transactions incurred in that period, but not paid, or company doesn’t
receive bills from suppliers.
2.2.2.6. Principles of recording stockholder’s equity:
Stockholder’s equity is the capital of Vietnam Airlines Corporation invested in company.
Principle of reflecting diffirences in exchange rate: In the end of the accounting period,
Cash, cash in bank, cash in tranfer, account receivables, account payables in foreign
currencies are exchanged into VND according to purchasing rate of commercial banks.
Diffirences by re-evaluate the balance are recorded in financial activities, or financial
expenses.
Company doesn’t distribute profit or dividend on the diffirences by re-evalatue the foreign
currencies balance in the end of accounting period.
Principles of recording undistributed profit:
Undistributed profit is the profit from the activities of the company after pay corporate
income tax; add, or pay deferred corporate income tax, the adjusted corporate income tax
payables or receivables by applying retroactively adjustments of changing accounting
policies and important mistakes of previous years.
2.2.2.7. Principles of recording Profit:
A, Sales profit: are collected from paid sales invoices. Receivables in advance of customers
are not recording as profit in this period.
Profit in foreign currencies are exchanged and recorded in VND according to exchange
rate in the interbank market.
Profit is monitored in detail by kinds of goods, customer’s name, selling stores. Moreover,
some accounts are monitored separately, there are:
A, Sales profit:
- Profit from exported goods
- Profit from internal cosumption
- Trade discounts
- Returned goods
B, services profit:
- Profit from fuel transprotation.
- Profit from Storage fees for national reserve goods.

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C, financial activities profit:
- Short-term deposits interest
- Foreign exchange differences arising during the period
- Interest from rate differences evaluating the balance payments, debts receivable and
payable in foreign currency at the end of the year
2.2.2.8. principle and method of recording financial expenses:
Financial expenses includes: Interest on bank loan, loss in foreign exchange
differences arising during the period, loss in interest from rate differences evaluating the
balance payments, debts receivable and payable in foreign currency at the end of the year.
2.2.2.9. Principle and method of recording Current corporate income tax, Deferred
corporate income tax.
Current corporate income tax is determined based on total taxable income, and
current tax rate. It includes the current year corporate income tax, and corporate income
tax by adjusting immaterial mistakes in previous year.
Deferred corporate income tax is determined based on the temporary diffirence, plus
deduction value tranfered to next year of taxable loss and unused tax incentives and current
tax rate.
2.2.2.10. Transaction of foreign exchange risk provisions:
Accounts in foreign curency are re-evaluated at the purchased exchange rate of
Commercial banks at the end day of this period.
2.2.3. Accounting Vouchers And Accounting Documents.
(1) The reality of applying the voucher system has been issued and regulated for
endogenous vouchers forms.
The company applies the accounting regime of Vietnam and the specific regulations based
on Decision No. 15/2006 / QD-BTC on 20/03/2006 of the ministy of finance and other
documents issued in accordance with other legislation documents. Based on the vouchers
regime were issued by decision of the Ministry of Finance, the company conducted a study
about performance characteristics, characteristics of accounting subjects as well as the need
to receive, process information to build and apply vouchers that are suitabe for the
requirement to manage and ensure the legality under the regulation of the government.

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The company uses the voucher system that are suitable with the characteristics of the
business and comply with the regulation of the government. The types of documents are
reflected in company, consists of five categories:
- Vouchers of payroll:
1. Time book
2. Time book for overtime
3. Payroll book
4. Bonus book
5. Travel warrant
6. Checking sheet for products or completed works
7. Overtime payment book
8. Leasing payment book
9. Awarding contract
10. Awarding contract completion report
11.List sheet of payroll accounts
12.Book of contributing payroll and social sercurities
13.Book of cetificate for sick retirement with pay
14.List of employees being on leave with allowance for sick and pregnancy
- Vouchers of inventory
1. Receipt voucher
2. Delivery voucher
3. Receipt voucher for goods in warehouses
4. Delivery voucher for goods in warehouses
5. Fuel delivery voucher
6. Checking report for materials, tools, products, and goods
7. Purchasing list
8. Distribution sheet for materials, tools, and instruments
9. Goods importing sheet
10.Distribution sheet for transportation cost
11.Internal delivery and transportation voucher
12.Balanced sheet for goods in warehouses
13.Sheet for internal receipt and other receipt
14.Sheet for delivering goods at warehouses
15.Sheet for depreciation and import cost
- Vouchers of sales
1. Fuel sales and purchases contract
2. Reports of goods delivery and reception

25
3. Liquidation report of contract
4. VAT bill
5. Sheet for gasoline price for national and international airlines
6. Trial balance for debt of customer
7. Sales Accounting summary monthly, quarterly, yearly
8. Payment Accounting summary monthly, quarterly, yearly
- Vouchers of currency:
1. Order or receipts
2. Order of payments
3. Check
4. Debit (credit) authorizations
5. Notes to creditors/ debiters
6. Debit/ credit loans vouchers
7. Request paper for advance
8. Payment paper for advance
9. Payment request paper
10. Cash receipts bill
11. Lists of gold, silver, other precious metals, and gemstones
12. Fund checking report for Vietnam Dong
13. Fund checking report for foreign curency, gold, sliver,…
14. Payment report
- Vouchers of fixed asset:
1. Acquisition report of fixed asset
2. Liquidation report of fixed asset
3. Delivery records of fixed assets for major repairs completed
4. Revaluation records of fixed assets
5. inventory records of fixed assets
6. spreadsheets for calculation and allocation of depreciation of fixed assets.
Based on the list of accounting vouchers prescribed by law, Vietnam Air Petrol Company
Limited has fully applied essiential vouchers under Decision No. 15/2006 / QD-BTC on
20/3 / 2006 of the Ministry of Finance. In addition, the company also uses some kind of
vouchers designed by the company based on the regulations of the government and
characteristics of the company's business, such as VAT invoices, shipping cards and
internal transportation, receipt notes, devivery notes, ...
(2) Accounting report.

26
Accounting reports in Vietnam Air Petrol Company Limited comply with regulations of
the current accounting regime. Specifically, all business transactions are made vouchers.
Accounting vouchers unit has been not only established by the computer, but also designed
for handwriting. These documents have enough essential signature, and are completed with
a red seal. However, there are still some sales invoices, service providing invoices not
recorded enough information such as forms of payment, the seller's signature. Some
documents such as delivery notes, receipt notes, requesting for payment notes ...still have
incomplete, inaccurate information or are crossed, are lack of important information.
Accounting report has met the requirements of financial Accounting and management
accoungting.
(3) Checking the vouchers
Checking the vouchers is an important task in accounting work, especially in the company
with large quantity of input vouchers, so checking the vouchers are required to account
carefully. The voucher is checked to ensure the validity and legality of vouchers to prevent
mistakes from making vouchers. Through some surveys in Vietnam Air Petrol Company
Limited, Accounting reports were checked first by payment accountants and general
accounting will check again, so the errors will be handled timely. Thus, payment vouchers
are ensured to follow regulations and avoid the mistakes of companies.
(4) Circulating vouchers
Survey of applying vouchers in the company shows that the company has developed
processes of circulating voucher for each facilities based on the specific content of the
business transactions incurred. The process of circulating vouchers identify the way, the
storage time in each stage, each department. The vouchers are to be made in the accounting
department to check and record into general ledger. When business transactions inccured
in the company, in retail stores, in the warehouses, ... vouchers are collected and transferred
to the department of finance and accounting to enter to the account, then transfer lists to
companies. However, the construction for processes of circulating vouchers only to serve
financia accounting, but pay little attention to management accounting.
(5) Storage and preservation of vouchers
Vietnam Air Petrol Company Limited made the preservation stage and storage vouchers
fully. Monthly vouchers incurred are bounded into each episode, each file marked clearly
by month, year, in numerical order, according with the kinds of vouchers ... Therofore, it
is very convenient for inspection and preservation. However, because of old infrastructure,
the irrational arrangement of vouchers, some vouchers were moldy, termited, ... more
vouchers for delivery, and receipt by the company incurred in large quantities, but
accountants have not focused on the destruction of vouchers. Thus, the storage of
documents is too much, that affect on arranging and checking vouchers.

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2.2.4. Accounts In Accounting System
Through actual survey, accounting regime and accounting system at Vietnam Air
Petrol Company Limited comply with Decision 15/2006 / QD-BTC on 20/03/2006,
Circular 244 / 2009 / TT-BTC on 31/12/2009 of the Ministry of finance, and details on
each line of business and management requirements of the company. Based on the
accounting system regulates Company conduct research, apply and detailize accounts of
the accounting system in accordance with the characteristics of business and management.
Company bases on account system to open more detailed account to level 2,3, ... to take
notes, reflect the business transactions incurred to meet the requirements of financial
accounting and parts of management accounting; and regulate the relationship between the
detailed accounts and consolidated accounts. At the same time, it guides recording,
aggregating data, checking and comparing.
Based on the portfolio ;of accounts under the provision of the Ministry of Finance,
company shall not apply some of the accounts as: TK611- "Buying", TK631- "cost of
production" (by company account inventory by perpetual method), TK622. In addition, the
company expanded into accounts to level of 2.3 to match the characteristics of business
and management requirements of the company as the account detailed level 2, level 3 of
TK136- "internal account receivabes ", TK336-" internal account payables " or detailed
accounts at level 2 and 3 of TK 156-" raw materials ", TK511-" revenues from sales and
services "TK632- "COGS" ... the detailed account was opened in accordance with the
content, structure and accounting methods of the respective accounts.
Accounting system consists of accounts in balance sheet and the accounts, and accounts
out of the balance sheet.
The accounting information encryption on the computer in the company are made in a
scientific way to help managers to access data quickly and easily, to avoid mistake caused
by the same management information objects in terms of figures and names. The company
has done the accounts encryption to organize the storage of Accounts system in computer,
that service requestment for processing necessary information for general accounting and
detailed accounting. To serve the provision of accounting information for detailed
accounting. Each account not only save information for general accounting, but also save
portfolio of detailed object code. The accounts encryption in company accounting is made
as follows:
- Account code: use account number as code
- Account name: use name in accounting system.
- Type of account: depend on nat the characteristics of the accounts includes Debit, and
Credit.

28
- Catalog address of detailed code: Each account codes is need to track for list of detailed
object codes.
- The company uses many accounts and has accounts to track details, so to be convenient
for the users in building the code catalog to collect data for genera accounting and detailed
accounting, companies have separated account coding system into one file, and detailed
subject coding system into other file.
The managerial code associated with the list of subjects including:
Table 3: List of the managerial accounts code:
1 C0 Cost of materials Attached to TK 621
2 C1 Staff expense Attached to TK 6421, 6411,
6271
3 C2 cost of packaging materials Attached to 6422, 6412, 6272
4 C3 Cost of instruments Attached to 6423, 6413, 6273
5 C4 Depreciation of fixed asset Attached to 6424, 6414, 6274
6 C5 Taxes, fees and charges Attached to 6425, 6415, 6275
7 C6 Provision expense Attached to 6426, 6416, 6276
8 C7 External services expense Attached to 6427, 6417, 6277
9 C8 Other monetary expense Attached to 6428, 6418, 6278
10 H Code of goods Attached to 511, 632, 521, 532
11 N Code of banks Attached to 112, 311, 315, 341
12 T Advanced of staff and employees Attached to 141
13 K Warehouse codes Attached to 151, 156
14 M Customer’s codes Attached to 131
15 B Supllier’s codes Attached to 331
16 U Other account receivables codes Attached to TK 138
17 R Other account payables codes Attached to 338
18 Z Area Taxes codes Attached to 333

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19 V Enterprise Branches of The
company
Attached to 136, 336
In this type of subject codes, there are managerial code for each object as follows:
For C1 subjuect- "staff expense" have managerial code below:
01 salaries and wages payable
02- 17% social insurance payables
03- 3% health insurance payables
04- deduct Trade Union fees
05 Meal fees
06 Unemployment Insurance expense
For C2 subjuect " cost of packaging materials " with managerial code below:
01 Chemical experience materials
02 automobile tires
03 supplies, and spare parts to repair storages
04 supplies, and spare parts to repair vehicles
05 supplies, and spare parts to repair building
06 supplies, and spare parts to repair the fixed assets
07 Workwear
08 fire protection materials
09 Electrical Materials
10 other fues
11 books, and invoices
12 offical supplies, publications
13 supplies, and spare parts to repair management equipment.
19 other materials

30
2.2.5. Accounting Books:
Currently, Vietnam Air Petrol company limited apply form of computerized
accounting. The accounting software which company used was built by the collaboration
between the department of statistical information and the department of finance and
accounting. The software is designed in the form of general journal.
Accounting department uses four specialty journals, which are so named because you
record specific types of routine transactions in them. These journals are:
- General Journal
- Special Journal
- General Ledger
- Detailed accounting tickets and subsidiary ledger
The record in general journal system follows this chart:
Figure 4: Process of record in general journal:

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Record daily
Record monthly
Record at the end of period
Reconciliation
General Journal
Original
vouchers
Special Journal Detailed
accounting ticket,
subsidiary ledger
General Ledgers
Trial Balance General Detailed
Reports
Financial
Statements

32
- Everyday accountants initially make entries to general journal based on checked original
vouchers and simultaneously record into detailed accounting tickets and subsidiary ledgers.
Then based on entries in general journal accountants post to general ledger.
- The company uses special journal for cash receipts and cash disbursements. Everyday
based on original vouchers entries are made to relevant special journal. Monthly the
information in special journal is posted to general ledger.
- At the end of period, general detailed reports are made based on detailed accounting
tickets and subsidiary ledgers. Together trial balance is made based on general ledgers.
- After reconciling between trial balance and general detailed reports, accountants prepare
financial statements.
Based on the list of ledgers under regulation of the government, the company has developed
full of ledgers for general accounting and detailed accounting.
- System for integrated accounting books including general journal entries, general ledger.
- system for detailed accounting books including books, detailed accounting cards such as
detailed materials books, equipment, goods and products; Detailed records of payment to
the suppliers; detailed sales records; Detailed follow-up debts book,...
Besides, the company also used some form made independently to track of targets which
are need to be monitored in detail as a basis for the preparation of management accounting
reports such as: balance sheet for materials, goods, import and export invoices at the
warehouses, books detailing the cost of imported goods, books detailing assets, liabilities
according to customers and sales regions.
In general, using of books, order and method of recording the accounting books in Vietnam
Air Petrol Company Limited has complied with accounting regime and the regulations of
the government, compliance the form of the general accounting journal, including: the
books and structure of the books, relationships for checking and comparing order, method
of recording accounting books.
2.2.6. Financial reports
Currently, the company has prepared the financial statements according to the
provisions of Decision No 15/2006 / QD-BTC on 20/03/2006 of the Ministry of finance.
The preparation and analysis of financial statements are matched with the requirements and
regulations of the Accounting Standard No. 21- the financial statements and submit
financial statements.

33
Due to the limitations of accounting program, accounting reporting system of the company
is not set up availably to prepare financial statements, it must be made by excel. The output
of Accounting Program is only the balance sheet.
Currently, the subdidiaries of the company doesn’t prepare financial statements separately.
They prepare the balance sheet, the account balance, income statement, cost of goods sold,
statement cash flow of their owns. At the same time, they transfer accounting data over the
LAN to the company. Accountants in head office collect data of all enteprises of the
company and prepare the financial statements legally.
Accounting reporting systems within the company includes: the annual financial
statements and interim financial statements, consist of:
- Balance Sheet
- Income statement
- Statement of cash flow
- Notes to the financial statements
Balance Sheet:
Balance sheet lists company's assets, liabilities, stockholder’s equity in specific time. The
assets and liabilities are classified as short term if payment is recovered in 12 months (or a
business cycle from the date of the accounting year end), and are classified as long-term in
opposite. The balance sheet is prepared in the form of categories, and each accounts are
classified according to the degree of flexibility of assets or liquidity of funds.
Income Statement
Income statement performs the operations and business results in a detailed period,
includes 3 types of activities: sales and services, financing activities and the other types of
activities. The content, structure and methods of preparing the requirements in this report
under the regulations of Accounting Standard No. 01- general standards, and No. 21-
financial statements presentation.
Statement of cash flow
Statement of cash flow consists of 3 parts:
- Cash flows from operating activities: Cash flows perform the activities related primarily
to generate revenue and thereby shows the ability to generate revenue from operations of
the business.

34
- Cash flows from investing activities: Cash flows perform activities related to purchasing,
construction, sales or liquidation of long-term assets and other investments, not in cash
equivalents.
- Cash flows from financing activities: Cash flows perform relevant changes to the size and
structure of stockholder’s equity, liabilities.
Cash flow statement is prepared under the requirements and principles of preparation and
presentation of statement of cash flows reported in the Accounting Standards No. 24.
Statement of Cash flow and Circular No. 105/2003 / TT BTC of the Ministy of finance that
guide the application of this standard. At the company, statement of cash flow are prepared
according to the indirect method.
Notes to financial statement
Notes to the financial statements is the collective report used to explain and attach
information about the operating activities, financing activities in the specific period which
other financial statement can’t be fully presentative, detailed, specific. However, the
analysis of financial statements have not been focused, the company just conduct that
analysis when it is requested by the board of directors.
Overall, the financial statements of the Company are prepared in compliance with the
Vietnam accounting regulations and accounting standards system.
In addition, the company also prepared a some internal reports and management reports to
serve its operations on the basis of all the information collection and rapid reporting system.
They analyze the economic indicators. However, management reporting systems are still
poorly, that does not meet management requirements. Specifically, the company now has
some new management reports following:
- The report to track purchasing and selling prices monthly
- The report to compare the purchasing and selling prices for each period
- The report to compare the revenue, costs between periods
- The report to compare arising under accounts between periods
- The report to receivables and payables under term of payment
- The report to compare inventory between periods
- The report to the loans, and deposits in a period
- The report to foreign currency exchange rates incurred during a period.

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2.2.7. Auditing In The Company
Auditing is necessary and important activity in the organization of accounting of the
company, to help monitoring accounting activities accurately, objectively, and legally. It
would detect and prevent in time the fraud violating reguations of accounting standards.
Therefore, auditing must be performed.
To ensure that of accounting activities in the company strictly comply with laws,
regulations, present accurate, honest data; detect fraud, and corruption,… under the
financial management comply with regulations to state capital investment into enterprise
that the government hold 100% of the charter capital; and financial regulations, and circular
of the Ministry of Finance guiding the implementation of decrees No. 71 of Vietnamese
government.
The company performs auditing activities under two types: Checking regularly and
checking periodically.
The reality check on the contents of auditing includes:
- Checking the organizational structure of accounting: accounting apparatus was organized
to perform the accounting activities; and decide the quality of accounting. The operational
mechanism of accounting apparatus is need to be suitable with the operating mechanism
of accounting activities.
- Checking vouchers
- Checking the bookkeeping and accounting of assets.
- Checking the financial statement
2.3. The Main Accounting Cycles Applied By Vietnam Air Petrol Company
Limited
2.3.1. Accounting for Inventory
There are accounting documents using to record inventory of the company in this
cycle:
 Receipt voucher
 Delivery voucher
 Receipt voucher for goods in warehouses
 Delivery voucher for goods in warehouses
 Fuel delivery voucher
 Checking report for materials, tools, products, and goods
 Purchasing list
 Distribution sheet for materials, tools, and instruments

36
 Goods importing sheet
 Distribution sheet for transportation cost
 Internal delivery and transportation voucher
 Balanced sheet for goods in warehouses
 Sheet for internal receipt and other receipt
 Sheet for delivering goods at warehouses
 Sheet for depreciation and import cost
Based on the inventory accounting documents, the company uses many accounts to
record that is up to 5 levels:
151: Purchased goods in transit
152: Raw material
1521: Materials
1522: supplies and equipment for replacement
15221: supplies and equipment imported
15222: supplies and equipment purchased domestic
1523: supplies and equipments for capital construction
153: Instrument and tools
154: Work in process
155: Finish goods
156: Goods
1562: Purchase rate
15611: JET A1
15612: Do 0,05 Oil
15613: A83 Gasoline
15614: Tranferred JET A1
15615: Plane oil
15616: A92 Gasoline
15617: Do 0,25 Oil
15618: Oil
15619: Other goods
1562: Cost for purchase
15621: JET A1
15622: Do 0,05 Oil
15623: A83 Gasoline
15624: Tranferred JET A1
15625: Plane oil
15626: A92 Gasoline

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15627: Do 0,25 Oil
15628: Oil
15629: Other goods
1567: Goods of real estate
157: Entrusted goods for sale
158: Goods in tax suspension warehouse
159: Provision for devaluation of inventory
Inventory accounting cycle:
- The Inventory cycle includes three kinds of inventory: Inventory of raw materials;
Work Progress inventory; and Inventory of finished goods.
- A starting point for inventory accounting is determining the cost of merchandise
that has been sold within a given accounting period, called “cost of goods sold."
That calculated by adding the value of the beginning inventory, the cost of new
inventory items, and transportation costs, and then by subtracting the ending
inventory amount.
- When measuring inventories, accountants consider two variables- quantity and
price- and refer to inventories by their value (quantity multiplied by price), counting
all items available for sale, pricing them, and calculating their value. In addition,
measuring inventory may involve including items that have not been delivered yet,
which companies nonetheless technically own, called "goods in transit."
- There are methods using in recording inventory: Inventory is recorded based on the
historical cost of each goods. When indentifying the value of inventory at the end
of period, the weighted average method is used for fuel not belonged to Aviation,
and the FIFO is used for Jet-A1.
Inventory Caculation:
A, For fuel out of aviation:
Unit price = (Inventory at beginning of period + Inventory purshased within period)/
(quantity at the beginning of period + quantity purchased within period – rated loss
quantity )
Value of inventory selling = Unit price * Quantity selling
B, For Zet-A1 fuel:
* Situation: Quantiy selling within Period is less than the quantity of fuel at the beginning
of period:
Unit price = Value of inventory at the beginning of period/ Quantity at the beginning of
period.

38
* Situation: Quantiy selling within Period is more than the quantity of fuel at the beginning
of period:
Unit price = (A+B)/ total quantity selling.
A = Value of inventory at the beginning of period
B = (Quantity selling- Quantity at the beginning of period) * Value of inventory purchased
with period/ (Quantity purchased within period – Rated loss quantity)
- Value of inventory at the beginning of period = value of inventory at the end of previous
period.
- Value of inventory at the end of period = Value of inventory at the beginning of period +
Value of inventory purchased within period – Value of inventory selling
2.3.1. Accounting for fixed asset
With the big zise of the company, many documents and accounts are used for recording
the fixed asset.
There are accounting documents used for fixed assets:
 Acquisition report of fixed asset
 Liquidation report of fixed asset
 Delivery records of fixed assets for major repairs completed
 Revaluation records of fixed assets
 inventory records of fixed assets
 spreadsheets for calculation and allocation of depreciation of fixed assets
- Accouts for fixed assets:
211: Tangible fixed assets
2112: Building and architectonic model
2113: Machinery and equipment
2114: Tranportation and transmit instrument
2115: Instruments and tools for management
2116: Long-term trees and working animals
2117: Petrol tanks
2118: Other tangible fixed assets
212: Financial leasing fixed aset
213: Intangible fixed assets
2131: Land using right
2132: Establishment and productive right
2133: Patents and creations
2134: Trademark
2135: Software

39
2136: License and concession license
2138: Other Intangible fixed assets
214: Depreciation of fixed assets
2141: Depreciation of Tangible fixed assets
21412: Depreciation of Building and architectonic model
21413: Depreciation of Machinery and equipment
21414: Depreciation of Tranportation and transmit instrument
21415: Depreciation of Instruments and tools for management
21416: Depreciation of Long-term trees and working animals
21417: Depreciation of Petrol tanks
21418: Depreciation of Other tangible fixed assets
2142: Depreciation of Financial leasing fixed aset
2143: Depreciation of Intangible fixed assets
21431: Depreciation of Land using right
21432: Depreciation of Establishment and productive right
21433: Depreciation of Patents and creations
21434: Depreciation of Trademark
21435: Depreciation of Software
21436: Depreciation of License and concession license
21438: Depreciation of Other Intangible fixed assets
Fix asset cycle is perform through 5 steps:
- Acquisition:
Determine the relevant cost for acquisition of a fixed asset and any amounts
attributed directly for its improvement such as the following: the original purchase
price and any costs directly associated with bringing the asset into working
condition, which includes sales tax, transportation and delivery, site modifications,
installation, operator training, technical assistance and professional fees,…
- Depreciation:
Method for fixed asset depreciation is straight- line method. The useful life is
regulated based in the Circulars no. 45/2013/TT-BTC on 25/04/2013 by the
Ministry of Finance guiding the management, use, and depreciation of fixed assets.
Depreciation per annum equals to residual value divided into residual useful life.
Depreciation per month equals to depreciation per annum divided into 12 months.
 Depreciation per annum = ( Cost − Residual Value )/ Useful Life
 Dpreciation per month = Depreciation per annum/ 12
 Rate of depreciation = 1/ Useful Life x 100%
Fixed asset which is not used more than 1 year is not depreciated.

40
Fixed asset which is depreciated totally is not depreciated anymore.
- Repairs and Maintenance:
Fixed assets require periodic maintenance and occasional repair. The company will
capitalize elaborate repairs, which increase the value of the assetcapitalized.
Whenever the company performs work on the asset, the company faces the issue of
whether to capitalize or expense the work. If the company capitalizes the cost, it
needs to determine whether the work changes the estimated life of the asset and the
revised value of the asset.
- Disposal:
When a company discontinues using a fixed asset, it needs to dispose of that asset.
The company can sell the asset or trade it in for a newer model.
- Report:
All the information about fixed asset such as: historical cost, depreciation expenses,
residual value are reported in the balance sheet under the category "fixed assets" at
the end of an accounting cycle.

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3. SOME REMARKS ON FINANCIAL ACCOUNTING
MANAGEMENT AT VIETNAM AIR PETROL COMPANY
LIMITED.
3.1. Remarks on Organizational Structure of Accounting Department at
Vietnam Air Petrol Company Limited
3.1.1. Advantages of Organization of Accounting Division
- The voucher system:
The organization of voucher system are designed to suit with the business
requirement, and the legel facilities. Each transactions has bill of sales, vouchers are
recorded at all stages of business, they have full signatures of related parties, and in the
right form of the Ministry of Finance. Every financial information about the transactions
is fully reported into right kinds of voucher. Vouchers is classified , systematized folloing
the cycles, time, and is stored clearly, and conveniently for the checking, and comparing
tasks.
- The accounts system:
System of accounts of the company I issued under the Decision No. 15 of the
Ministry of Finance. The accounts system have some kinds of detailed accounts to make
the accounting and auditing tasks easier. It is suitable for situation and features of the
business organization, and has some improvement to make accounting more convenientlt,
and effectively. This system help company monitor activities in detail, and account more
accurately. It has met the requirement of daily management, and organization management.
The content and method of accounting the transactions are applied under the regulations of
current accounting regime.
- The accounting book:
System of accouting books is in the form of computerized accouting. The
accounting software is designed by company itself, and formed as general journal. The
general ledger and subsidiary ledger is suitable for general journal accounting, and under
the regulations of government about: form of ledgers, and quantity of ledgers. The
application of accounting books, comparation, checking, method of recording accouting
books is suitable for the zise, features of business activities, managerial requirement, ability
of accouting staff, and the technical equipment of the company.
- The organization for preparing and processing Financial reports:
Financial statements of the company prepared is appropriate for the managerial
requirements, and the real situation of company and its subsidiaries. Financial statements
are prepared in time, the quantity and form of statements is full of data, figures that reflect

42
the real financial situation of the company. The process of preparing financial statements
is performed under the regulations of accounting standards and the accounting regime.
Anditing the accounting activities is performed quarterly and annual, that help the
accounting organization improve the quality of auditing activity, and management
activities. Specially, auditing activities such as: checking vouchers, checking recording
transactions, checking the application of accounting standards,... are perform very well, so
that it has restricted the unreasonable mistakes, has prevented the violations, and negative
behaviors in financial management.
- The financial control in accounting system:
The audit of accounting information is performed quarterly, annually help the
organization of accounting system more and more effective. That improve the quality of
the accounting, and auditing activities in detail, and the management activities in general.
Moreover, it also limits the mistake of accounting, prevent violations and other negative
actions in financial management.
- Applying the information system in accouting
Vietnam Air Petrol Company Limited has invested the computer system having
internet connection in department of Finance and Accounting, and has built owned
accounting software to support the accounting activities at the whole of the company.
3.1.2. Disadvantages of Organization of Accounting Division
- The voucher system:
There are some limit in the department of accounting at company’s subsidiaries:
• The lack of information, and content in the vouchers
• The task for checking, and processing voucher is not permanent.
• The circulation and storage of voucher is not paid enough attention:
Sometimes the circulation of voucher is late when send to the head office that
make the financial reports delayed. And vouchers are difficult to classifing,
storing, and checking.
Because of the special characteristics of Vietnam Air Petrol Company Limited,
there are some irrational accounts using in the accounting system. The using of detailed
accounts to show the contents in detail that provides information for management about
cost, revenue, operating result are still inconvenient. Thus, it directly affect on the function
of providing information of accounting activities to management activities.
- The accounting book system

43
The process of recording transactions into ledger book still have some mistakes
about figures, and sometimes have unclear contents such as: Detailed book of material,
tools and instruments,…
The company use their owned accounting software, but it is not completed, there
are old version of this software. Therefore, it cannot connect with detailed management
subsystems such as: tools and instruments, fixed assets, inventory,... These subsystems are
still proceed to extract the results to record to the accounting books.
3.2. Remarks on Financial Accounting Management at Vietnam Air
Petrol Company Limited
3.2.1. Advantages of Accounting Management
In general, Accounting Department has met the job requirement, and has been
suitabe with accouting work in the company. Because the large size of business
orraganization and the diversity of goods and services, the company organized accounting
department in the form of half-dispersed concentration. At the head office, the company
have Department of Finance and Accounting with the responsibility for monitoring all
financing, and accounting activities in the whole of the company. In each subsidiaries, they
also have their own department of finance and accounting to report, control the cost of
goods sold, sales, revenue,… After that its subsidiaries send reports to head office to
summarize the financial information This form help the managers monitor, and check the
activities of subsidiaries and company easily. The accounting cycles are assigned clearly
to make the accounting activities processing. Each accountants at the department is
responsible for few kinds of related cycles. The good accounting cycles organization help
the voucher circulation easily.
3.2.2. Disadvantages of Accounting Management
Although there are many advantages of accounting system of Vietnam Air Petrol
Company Limited, some disadvantages still exist:
Because operating areas of the company is too wide, that stretchs across the country, the
collection of data to prepare the financial statements is very difficult, and waste of time.
Though the company pays attention on the accounting department, and accountants are
also skilled, experienced, and enthusiastic at work, the management skills and accounting
skills of all accountants are not equal, specially the accountants in groups and teams. There
are many accountants, but the effectiveness of job is not high, and the division of work is
not rational. Moreover, the department for managerial accounting is a important one in the
department of Finance and Accounting, but these are only 2 people working in. Therefore,
the tasks for collecting, processing, providing information about financial activities is very

44
inconvenient, and even difficult for the manager to have enough necessary information to
plan, organiza, and make decision for business.

45
SOME RECOMMENDATION ON THE ACCOUNTING SYSTEM
AT VIETNAM AIR PETROL COMPANY LIMITED:
- Accounting management:
From these accounting problems of the company, organization of accounting system
at Vietnam Air Petrol Company Limited need to be completed to suit with requirement and
situation of company in collecting, processing, analyzing, and supplying data, information
accurately, fully, and truthfully to serve the business management. The accounting
department are still organized in the model of combining between managerial accounting
and financial accounting, and the corporation of them need to be improved more effectively.
This model can be divided into some primary parts:
 Board of genaral accounting and checking
 Board of cash and loan accounting
 Board of fixed asset accounting
 Board of inventory accounting
 Board of cost accounting
 Board of capital accounting
 Board of sales accounting and business result.
Moreover, Company need have a planning for improving, and training professional skills
of accounting staff. Company have to realize the roles of accounting department, and invest
in it. Accountants of this department should have good condition to improve their
professional skills, and some skills of applying information technology, update their
knowledge about accounting field such as:
 Course on accounting skills
 Advanced training with deep knowledge about each accounting cycles.
 Organizing some meeting to discuss about the reponsibility, activities,
achievements, and problems of each accounting for rearrange them into the cycle
they do best.
- The voucher system
Because the mistake is occurred mainly in the accounting department of company’s
subsidiaries. So company need focus on improving these department from its staff to its
organization. First, company have to issue some detailed regulations for recording,
circulating, checking, and storing vouchers. Each employees should be responsible for
detailed accounting processes, specially recording vouchers.

46
The using of accounts in company is not rational, and convenient for accounting
activities, and management activities. Therefore, company need consider changing the
using of some kind of accounts to record the financial information right. In the managerial
accounting, company have to organize every information when transaction occurs, and
completes. The accounts should be used in the way that is suitable with the business
conditions, and operation of company. Thus, is must have a list of detailed accounts for
collecting, processing, and analyzing information for managerial accnounting. In each
cycles, some detailed accounts need to be determined to level 2, level 3, level 4, level 5,…
- The accounting book system
The process of recording transactions into ledger book needd to have some
improvement to make it clearer in accounting book such as: inventory book, detailed book
of material, tools and instruments,… Moreover, the form, the quantity, the contents of
accounting book, and the methods of recording have to be updated based on the accounting
software, the regulation of accounting regime, and the accounting policies. In the process
of recording book, company’s accountant should be more careful and meticulous with
figures and datas to prevent from making mistakes. Chief accountant should check the the
observance of recording book regulaly to provide information to managers timely.
Finally, the company have to complete the accounting software, because this software is
out-of-date, met errors frequently. Therefore, company should invest in updating, repairing,
and applying new suitable professional software. Cost for this update is not too much, but
it bring high effectiveness to accounting activities to serve management tasks. In detail,
accouting software have to connect with management module such as: cash, bank deposits,
tools and instruments, fixed assets, inventory, revenue, loans,... Moreover, it have to be
able to prepare financial statements, and other reports under the requirement of government,
and the managers of the company.

47
REFERENCE
Vietnamese
1, Đặng Thị Loan (2007), Giáo trình Kế toán tài chính trong các doanh nghiệp, Nhà xuất
bản Đại học Kinh tế quốc dân, Hà Nội.
2, Nguyễn Anh Tuấn (2010), Hướng dẫn thực hành – Lập, luân chuyển chứng từ và ghi sổ
kế toán doanh nghiệp, Nhà xuất bản Đại học Kinh tế quốc dân, Hà Nội.
3, Trang chủ của Công ty trách nhiệm hữu hạn một thành viên Xăng dầu Hàng không Việt
Nam,
http://vinapco.com.vn/
4, Công ty Cổ phần Chứng khoán Ngân hàng Đầu tư và Phát triển Việt Nam (BSC) (2014),
Báo cáo phân tích doanh nghiệp Việt Nam Airlines, Công ty Cổ phần Chứng khoán Ngân
hàng Đầu tư và Phát triển Việt Nam (BSC), Hà Nội.
English
1, Kurt Pany (Fifth edition), “Intermediate Accounting”, McGraw-Hill Irwin.
2, Ministry of Finance, Decision No.15/2006/QD-BTC effective on 20th March, 2009.
3, O. Ray Whittington (Nineteenth edition), “Principles of Auditing & Other Assurance
Services”, McGraw-Hill Irwin.
4, Bank for investment and development of Vietnam securities joint stock company
(BSC) (2014), Prospectus_ Innitial Public Offering Vietnam Airlines Company Limited,
Bank for investment and development of Vietnam securities joint stock company,
HoChiMinh City.

48
APPENDIX
BALANCE SHEET
For the Year Ended December 31st
, 2013
Code Notes 2013 At beginning of the
year 2013
1. Assets 2 3 4 5
A. Current assests 100 7.082.409.659.159 7.005.322.488.895
I. Cash and cash equivalent 110 2.694.109.100.778 2.505.169.973.641
1. Cash 111 V.01 582.109.100.778 379.169.973.641
2. Cash euivalent 112 2.112.000.000.000 2.126.000.000.000
II. Short-term Investment 120 V.02 0 0
1. Short-term investment 121 0 0
2. Allowance for short-term
securities investment
129 0 0
III. Short-term Receivables 130 1.833.929.187.202 1.997.375.396.496
1. Receivables from
customers
131 1.461.432.152.873 1.472.392.782.481
2. Prepaid for suppliers 132 4.889.296.579 12.168.947.461
3. Internal receivables 133
4. Construction contract
progress receivables due to
customer
134
5. Other receivables 135 V.03 434.726.920.445 564.208.911.850
6. Provision for bad
receivables
139 (67.119.182.695) (51.395.325.396)
IV. Inventory 140 2.337.336.333.901 2.305.394.978.532

49
1. Inventory 141 V.04 2.337.336.333.901 2.305.394.978.532
2. Provision for devaluation
of inventory
149 0 0
V. Other current assets 150 217.035.037.278 197.382.140.226
1. Short-term prepaid
expenses
151 6.156.330.939 4.967.858.046
2. VAT deducted 152 185.751.446.539 189.283.322.962
3. Taxes and receivables
from government
154 V.05 22.759.045.334 163.911.855
5. Other current assets 158 2.368.214.466 2.967.047.363
B. Long-term assets 200 450.035.266.224 415.917.727.462
I. Long-term receivables 210 0 0
1. Long-term receivables
from customer
211
2. Capital of subsidiaries 212
3. Long-term interval
receivables
213 V.06 0 0
4. Other long-term
receivables
218 V.07
5. Provision for bad long-
term receivables
219
II.Fixed assets 220 335.151.122.299 328.828.096.056
1. Tangibles fixed assets 221 V.08 299.321.677.410 280.643.612.694
-Fixed assets costs 222 612.459.073.111 570.538.786.184
-Depreciation of fixed assets 223 (331.137.395.701) (289.895.173.490)
2. Financial leasing fixed
assests
224 V.09 0 0
-Costs 225 0 0

50
-Depreciation of leased fixed
assets
226 0 0
3. Intangible fixed assets 227 V.10 11.485.299.149 10.865.009.985
-Costs 228 16.506.504.110 15.206.594.035
-Depreciation of intangible
fixed assets
229 (5.021.204.961) (4.341.584.050)
4. Capital construction in
process
230 V.11 24.344.145.740 37.319.473.377
III. Investment real estate 240 V.12 0 0
-Costs 241 0 0
-Investment real estate
depreciation
242 0 0
IV. Long-term financial
investment
250 V.13 100.033.620.000 83.256.380.000
1. Investment in equity of
subsidiaries
251 0 0
2. Investment in joint-
venture
252 100.033.620.000 83.256.380.000
3. Other long-term
investment
258 0 0
4. Provision for devaluation
of long-term securities
investment
259 0 0
V. Other long-term
investment
260 14.850.523.925 3.887.251.406
1. Long-term prepaid
expenses
261 V.14 14.350.523.925 3.387.251.406
2. Deffered income tax assets 262 V.21 0 0
3. Other long-term assets 268 500.000.000 500.000.000
Total assets 270 7.532.444.925.383 7.421.294.216.357

51
Liabilities and stockholder’s
equity
A. Liabilities 300 7.046.664.120.845 6.962.435.239.215
I. Short-term liabilities 310 7.009.819.383.226 6.921.418.824..810
1. Short-term loan and
liabilities
311 V.15 5.247.498.503.461 4.521.500.771.158
2. Payables for suppliers 312 1.475.331.882.660 1.641.574.751.520
3. Prepaid from customers 313 109.519.985.908 40.218.741.174
4. Taxes and payables to
government budget
314 V.16 55.676.578.250 118.594.373.362
5. Payables to employees 315 41.024.539.184 36.241.618.198
6. Accruals 316 V.17 13.946.687.931 9.210.913.476
7. Internal payables 317 0 0
8. Construction contract
progress payment due to
customer
318 0 0
9. Other payables 319 V.18 36.866.322.574 542.179.294.857
10. Provision for short-term
payables
320
11. Bonus and welfare fund 323 29.954.883.258 11.898.361.065
II. Long-term liabilities 330 36.844.737.619 41.016.414.405
1. Long-term payables to
supppliers
331 0 0
2. Long-term internal
payables
332 V.19 0 0
3. Other long-term payables 333 28.494.301.471 8.560.237.439
4. Long-term loan, and
liabilities
334 V.20 28.196.350.601 48.305.110.105
5. Deferred income tax 335 V.21 0 0

52
6. Tax allowances for
unemployment
336 0 0
7. Provision for long-term
payables
337
8. Unearned revenues 338
9. Researches and
development fund
339
10. Petrol prices stablizing
fund
340 (19.845.914.453) (15.848.933.139)
B. Stockholder’s equity 400 485.780.804.538 458.858.977.142
1. Stockholder’s equity 410 V.22 485.780.804.538 458.858.977.142
2. Share premium 411 428.490.824.595 428.490.824.595
3. Other capital 412 0 0
4. Stock funds 413
5. Diffirences upon asset
revaluation
414 0 0
6. Foreign exchange
diffirences
415 0 0
7. Investment and
development funds
416 57.289.979.943 19.364.253.310
8. Financial reserve funds 417 0 8.102.813.456
9. Other funds 419
10. Undistributed earnings 420 0 2.901.085.781
11. Construction investment 421 0 0
12. Funds for supporting
business oganization
422
II. Other resources and funds 430 0 0
1. Resources 432 V.23 0 0

53
2. Funds used to acquire
fixed assets
433 0 0
Total Liabilities and
stockholder’s equity
440 7.532.444.925.383 7.421.294.216.357
Income statement
, 2013
Target Code Notes This year Last year
1 2 3 4 5
1.Sales revenue and service
revenue
1 VI.25 26.311.465.972.866 25.664.507.140.376
2. Sales deduction 2 5.959.270.402 7.956.889.180
3.Net sales 10 26.305.506.702.464 25.656.550.251.196
4.Cost of goods sold 11 VI.28 25.926.930.834.562 25.402.683.576.917
5. Gross profit 20 378.575.867.902 253.866.674.279
6. Financial Income 21 VI.29 174.591.816.386 211.623.575.900
7.Financial expenses 22 VI.30 290.806.783.542 278.732.216.499
Include: Interest expenses 23 125.640.002.427 203.625.086.179
8. Selling expenses 24 31.899.661.055 36.814.838.038
9. Adminisstrative
overheads
25 103.221.379.964 90.589.421.338
10. Net operating profit 30 127.239.859.727 59.353.774.304
11. Other income 31 10.692.503.847 42.074.422.990
12. Other expenses 32 45.093.885.582 17.614.616.333
13. Other profit 40 (34.401.381.735) 24.459.806.657

54
14. Profit before tax 50 92.838.477.992 83.813.580.961
15. Current coporate
income tax
51 VI.31 23.997.682.382 21.966.812.285
16. Deffered coporate
income tax
52 VI.31 0 0
17. Profit after tax 60 68.840.795.610 61.846.786.676
18. Earnings per share
Cash flow statement
, 2013
ITEMS Co
de
N
o
t
e
Current
year/period
Previous
year/period
I. Cash flows from operating
activities
1. Profit/ (loss) before tax 01 92.838.477.992 83.813.580.961
2. Adjustments
- Depreciation of fixed assets 02 36.913.582.378 27.688.835.918
- Provisions 03 15.723.857.399 20.716.547.659
- Gain/ (loss) from foreign exchange
differences
04 9.987.007.371 (2.901.085.781)

55
- Gain/ (loss) from investing
activities
05 (154.387.725.1
32)
(211.353.249.408)
- Loan interest expenses 06 125.640.002.42
7
203.625.086.079
3. Operating profit/ (loss) before
changes of working capital 08 126.715.202.43
5
121.589.715.428
- Increase/ (decrease) of accounts
receivable
09 144.981.785.13
5
(690.355.765.727)
- Increase/ (decrease) of
inventories
10 (31.941.355.36
9)
(587.253.643.471)
- Increase/ (decrease) of accounts
payable
11 (506.716.150.1
90)
256.820.842.886
- Increase/ (decrease) of prepaid
expenses
12 (12.151.745.41
2)
2.873.870.677
- Loan interests already paid 13 (126.659.550.4
47)
(208.929.293.341)
- Corporate income tax already
paid
14 (24.916.229.37
7)
(7.566.576.208)
- Other gains 15 171.100.000 84.000.000
- Other disbursements 16 (23.805.277.61
2)
(15.644.432.956)
Net cash flows from operating
activities
20 (454.322.220.8
37)
(1.128.381.282.71
2)
II
.
Cash flows from investing
activities
1. Purchases and construction of fixed
assets

56
and other long-term assets 21 (60.171.738.52
1)
(115.031.846.637)
2. Gains from disposals and
liquidation of fixed assets
and other long-term assets 22 619.979.547 4.905.132.208
3. Loans given and purchases of debt
instruments
of other entities 23
4. Recovery of loans given and
disposals of debt
instruments of other entities 24
5. Investments into other entities 25 (16.777.240.00
0)
(52.856.380.000)
6. Withdrawals of investments in
other entities
26 0 0
7. Receipts of loan interests, dividends
and profit shared
27 157.677.627.15
9
225.146.260.422
Net cash flows from investing
activities
30 81.348.628.185 62.163.165.993
II
I.
Cash flows from financing
activities
1. Gains from stock issuance and
capital contributions
from shareholders 31
2. Repayment for capital contributions and
re-purchases
of stocks already issued 32
3. Short-term and long-term loans
received
33 20.792.127.835
.578
15.882.748.692.6
72

57
4. Loan principal amounts repaid 34 (20.220.384.19
4.943)
(15.609.065.387.8
99)
5. Payments for financial leasehold
assets
35
6. Dividends and profit already paid to
the owners
36 (9.868.279.959) (844.660.299)
Net cash flows from financing
activities
40 561.875.360.67
6
272.838.644.474
Net cash flows during the year 50 188.901.768.02
4
(793.379.472.245)
Beginning cash and cash
equivalents
60 V
I
.
1
2.505.169.973.
641
3.298.660.039.20
7
Effects of fluctuations in foreign
exchange rates
61 37.359.113 (110.593.321)
Ending cash and cash
equivalents
70 V
I
.
1
2.694.109.100.
778
2.505.169.973.64
1

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