Hoàn thiện kế toán trong các trường trung học chuyên nghiệp công lập việt nam tt tiếng anh

MINISTRY OF
EDUCATION AND
TRAINING

MINISTRY OF
FINANCE

ACADEMY OF FINANCE


DO NGOC TRAM

IMPROVING ACCOUNTING SYSTEM IN VIETNAMESE PUBLIC
VOCATIONAL TRAINING COLLEGES
Subject
Code

:
:

Accounting
9.34.03.01

SUMMARY OF PhD. DISSERTATION

HANOI - 2019


THIS DISSERTATION IS IMPLEMENTED IN
ACADEMY OF FINANCE

SCIENCE INSTRUCTORS:
1. Prof. Ngo The Chi, PhD
2. Assoc. Prof.Doan Van Anh, PhD
Appraiser 1:

Appraiser 2:

Appraiser 3:

This dissertation is defended in Examination Committee in
Academy of Finance
At:
on
2019

Be referred to:
- National Library of Vietnam
- Library of Academy of Finance


LIST OF SCIENCE WORKS WERE PRESENTED BY AUTHOR
1. Do Ngoc Tram (2011), "Promoting the role of accounting information in
the process of socialization in public services", Journal of accounting and
auditing, No. 10/2011 (97), p. 32-34
2. Do Ngoc Tram (2011), "To make public sector accounting information
meet the requirements of the "Open and international integration"
process, Financial Inspection Magazine , No. 110 (8-2011), p. 19-20. (coauthor)
3. Do Ngoc Tram (2017), "Discussing the accounting regime of
administrative and non-business units using the state budget", Financial
Inspection Magazine, No. 175 + 176 (1 + 2-2017), p. 82-83

4. Do Ngoc Tram (2017), "Accounting of state budget in the context of
financial autonomy and international accounting integration - Application for
Vietnamese public vocational training colleges "Research Journal in finance
and accounting, No. 02/2017 (163), p. 25-29
5. Do Ngoc Tram (2017), "Financial autonomy, convergence of international
accounting and requirements of improving the quality of information on the
financial reporting system - Application for Vietnamese public vocational
training colleges” Journal of Financial and Accounting Studies, No. 03/2017
(164), p. 38-41


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INTRODUCTION
1/ REASON FOR CHOOSING RESEARCH TOPIC
Currently, like many Vietnamese public service organizations,
accounting system of public vocational training colleges in Vietnam is facing
many challenges when the Government changes its management method
from input control to output control, attaching the business results to the
assigned management head’s responsibilities, new financial management
mechanisms in accordance with increasing autonomy and the trend of
integration and convergence with international public accounting sector. The
application of one accounting according to any other accounting system must
ensures that the working conditions of the unit are appropriate, providing
information to both the government management and all other related parties
such as investors, students, families, and society for the common purpose of
effective management and investment decisions. This becomes critical
challenges for accountants of Vietnamese public professional high
schools. Improving accounting system in Vietnamese public vocational
training colleges on the aspect of applying appropriate accounting facilities

when determining the accounting objects as well as when receiving and
processing supplies accounting information made the author to choose the
research topic "Improving accounting system in Vietnamese public
vocational training colleges ".
2 / RESEARCH OVERVIEW
2.1 / Summary of previous research projects in the same field
Research on accounting in public service units - accounting basis. Research
on accounting in public service units - an experience aspect when applying
international public accounting standards. Research on public service unit
accounting - accounting information aspect and accounting information
analysis. Some researches on public service unit accounting - organizational
aspects of accounting work, accounting use as financial management tools for
public service units, etc. From the author's review, it is assumed that the
researching problems can be inherited as well as the content of the author can
be continued to study.
2.2 / Gaps of the previous studies
Currently, Vietnam lacks empirical studies on the content of financial
accounting work on the accounting basis, helps to affirming the accounting


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base being applied and recommending future improvements to the
establishment of the accounting work in accounting in Vietnamese public
service units. At Vietnamese public vocational training colleges (VPVTC),
accountants comply with a common administrative and non-business
accounting policy framework issued by the state, on the one hand, failing to
fully reflect all activities according to the characteristics of short-term and
real vocational training, implemented by work orders from enterprises, sell
the accounting services, etc. , on the other hand, it has not yet served the

demand for accounting information of non-state objects (enterprises link to
training, business associates, financial institutions, for debtors, etc.). In a
constant movement socio-economic environment with many challenges from
international integration trends, state policies must always be changed to fit
in. Accounting for public vocational training colleges should not only focus
on complying policies and information provision for state management but
also need to master and actively apply appropriate accounting facilities to
accountants to reflect the broader and more diversified financial and
economic activities, meet the needs of accurate and effective accounting
information in order to serve users inside and outside the colleges. There are
still gaps of in-depth research on the above mentioned content.
3 / RESEARCH OBJECTIVES
The general purpose: to systemize the theoretical issues of accounting in
public non-profit units on the basis of accounting, using the results
of empirical research at Vietnamese public vocational training colleges on the
one hand to strengthen the theoretical system on the accounting
basis of Vietnamese public service units, on the other hand, propose solutions
to improve accounting at Vietnamese public vocational training colleges
according to appropriate accounting bases in the near future.
Detail objectives: (i) Study the factors that govern accounting of public
non-business units; Summarize the fundamental theoretical issues about
accounting of public non-profit units based on accumulated accounting and
cash accounting facilities; Learn the patterns of public service unit
accounting content that follow international accepted accounting facilities
from which to draw experience for Vietnam. (ii) Research on actual survey of
accounting contents at VPVTC; Identify the current accounting basis as well
as evaluate, analyze the advantages and disadvantages in financial accounting
when following this accounting basis at VPVTC. (ii) Proposing solutions to

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complete the accounting contents at VPVTC on the perspective of applying
accounting facilities.
4 / RESEARCH QUESTIONS
The tasks of this thesis is to study, analyze and evaluate theory and
practice to answer the following research questions:
Question 1 : What is the basic theory of accounting in public non-profit units
based on the accounting basis?
Question 2: How do changes in accounting base apply to accounting of
public service units according to international experience?
Question 3 : What is the current status of accounting contents of basic economic
activities in VPVTC in the aspect of accounting application taking place?
Question 4 : Analyzing and evaluating accounting contents at VPVTC on
aspects of accounting application.
Question 5 : What are the solutions to complete accounting content at
VPVTC according to appropriate accounting basis?
5 / SUBJECTS AND SCOPE OF RESEARCH
5. 1 / Research object
The thesis focuses on studying accounting contents on the basis of
applying accounting facilities in VPVTC under conditions governed by the
following factors: financial autonomy mechanism; the process of educational
socialization to attract non-state financial investment sources; accounting
information requirements must ensure quality for internal management and
aim to serve the process of consolidating the national financial statements in
the future; requires standardization of accounting in accordance with
international public accounting standards to meet the requirements of
economic integration and globalization.
5.2 / Scope of research:
In terms of space: independent Vietnamese public high schools are

managed by the Department of Education and Training of provinces or cities
(from 2016 onwards) and the Department of Labor, Invalids and Social Affairs
(from then on) 2016). In terms of time: the last 5 years were divided into two
periods with the 31/12/2017 mark. In terms of content: focus on research and
financial accounting.
6 / RESEARCH PROGRAMS AND METHODS
The research process is performed by the author in the following steps:
Forming research ideas; Research materials and research reviews; In-depth


4

interviews; Designing questionnaires and selecting samples; Send
questionnaires; Summary of survey forms; Evaluation from the survey
results; Verifying results through case studies; Research conclusions. The
author used SPSS20 software to support information processing and
summarize survey results with each content in accounting work at units. The
author performs descriptive statistical steps with questions in each content of
the survey. In order to verify the investigation results, contributing to affirm
the effectiveness of the questionnaire, the authors performed a case study of
financial accounting in a few units in the survey sample medicate herself.
7 / RESEARCH MEANING
In theory: (i) Having generalized the characteristics of public non-profit
units, determining the elements of financial accounting for public non-profit
units (ii) Having generalized the content of financial accounting of public
non-profit units on the basis of accounting, interpreting suitable accounting
bases for financial accounting in these units according to the level of funding
dependence state budget and sources controlled by the state. (iii) Learning the
international accepted mold rules for public service delivery units from which
to draw experience for Vietnam.

In practice: (i) Reviewing and evaluating the advantages and
disadvantages of financial accounting at the current secondary schools. The
assessment is set in the context that the factors that govern accounting work
in high school are changing. (ii) Proposing solutions to improve the financial
accounting contents at VPVTC towards the quality of accounting information
provided. Solutions to focus on perfecting the financial accounting of
VPVTC in the direction of separating financial accounting into two systems
for processing and providing information from the same input data sources,
including financial accounting based on accrued basis and the cash
basis. (iii) Proposing a solution to complete the legal framework of
accounting policies for public service units or for research and training ...
8 / STRUCTURE OF THE THESIS
Chapter 1: Basic theory of accounting in public non-profit units
Chapter 2: Current situation of accounting in Vietnamese public vocational
training colleges
Chapter 3: Solutions to complete accounting in Vietnamese public vocational
training colleges


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CHAPTER 1
BASIC THEORY OF ACCOUNTING IN PUBLIC NON-PROFIT
UNITS
1.1 GENERAL CHARACTERISTICS OF PUBLIC NON-PROFIT UNITS MAIN FACTORS AFFECTED TO ACCOUNTING
1.1.1 Operational characteristics and classification of public non-profit units
Public non-profit units are organizations established by competent
agencies of the State, political organizations and socio-political organizations
under the provisions of law, it has legal status and provide public services,
serving state management. Financial resources to ensure the operation is

funded by the state budget or originated from the budget. The activities of the
unit to serve the society, therefore, the expenditure is not directly reimbursed
by economic benefits, but by social efficiency in order to achieve
macroeconomic objectives. The mode of operation of public non-business
units is very diverse, but all have the following basic characteristics: The
purpose of non-profit operation is mainly to serve the community's
benefits; Creating products that bring common benefits with long-term
sustainability for society; Activities associated with and dominated by socioeconomic development programs of the State.
1.1.2 Financial resources and financial management in public service units
1.1.2.1 Financial resources of public service units: Financial resources from
the state budget. Financial resources outside the state budget
1.1.2.2 Management of mobilizing financial resources of public service
units: Managing financial resources from the state budget. Managing nonstate budget resources
1.1.2.3 Managing and using financial resources of public non-business
units
1.1.3 Regulatory regulations on accounting and accounting
infrastructure of public non-business units
* Regulations on accounting: In order to meet the requirements of economic
and financial management, strengthen management of national budget
spending control, public asset management, improve the quality of
accounting and management efficiency in the units. public and accounting
enterprises in public non-business units must ensure the consistency between
accounting and management requirements of the state in general and of units
in particular; ensure consistency in the content and method of accounting


6

with the current accounting regimes of the State; ensure conformity with the
characteristics of the unit...

* Accounting infrastructure:Human resources to do accounting work.
Control accounting and pressure on accounting information. Other factors
such as accounting, professional occupations, accounting and vocational
education, management culture, etc.
1.1.4 Effect of general characteristics of public non-business units on the
application of accounting basis
Factors related to operational characteristics, operation management
regime, financial policies of public non-profit units are factors affecting the
selection of accounting basis of these units.
1.2 ROLE, DUTIES AND REQUIREMENTS OF PUBLIC PAYMENT
FINANCIAL UNITS
1.2.1 The role of financial accounting public non-business units
Accounting of public non-profit units is the accounting of the
observance of the state budget at public non- profit units, this is the
organization of data information system to manage and control funding
sources, the situation of using decisions budgeting, figuring out the
management and use of public supplies and assets, the situation of observing
the revenue-expenditure estimates and implementing the criteria and norms
of revenues and expenditures at the units. An accounting system at the
completed public service unit will promote the following roles: Serving the
macro management of the State; Serving micro management of unit
operators; Supporting for other management tools.
1.2.2 Duties and requirements of financial accounting of public entities
Accounting of public non-profit units must carry out the following main
tasks: Recording and reflecting accurately and promptly on assets, materials,
capital, the process of forming funding and using funding sources, situation
and results of production and business activities at the units. To inspect and
control the situation of observing the revenue and expenditure estimates; To
prepare and submit financial statements on time.
1.3 CONTENT OF FINANCIAL ACCOUNTING IN PUBLIC NONPROFIT UNITS

1.3.1 Accounting basis of financial accounting in public non-business units
Financial accounting on a cash basis based on the principle of recording
all changes in the budget of an accounting unit and eliminating all other


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fluctuations. Cash basis state accounting allows to track the movement of
cash flows into expenditures of the budget (including the state budget). The
main drawback of cash-based accounting is that it does not identify all the
situation of capital and assets.
Accumulated accounting is the committed accounting ("commitment"
associated with all real obligations and benefits arising in the process of
conducting transactions and operations of the accounting unit). For the state,
full-blown accounting records all transactions when there are legal signs
of the state 's financial rights and obligations, regardless of whether or not the
money has been received or paid for.
Modify cash basis or modify accrual basis is the combination of two
bases is cash and accrual. Here, the accrual basis is applied when recording
long term objects are less likely to change in the fiscal year (fixed assets,
long-term long term investments, ...) and lead to information on the Balance
Sheet, the cash basis is used to record short-term objects (monthly interest
expenses, monthly business expenses, monthly sales revenue, ...) and provide
the information of Income statement. In recognition of revenue and cost, it is
always associated with each type of revenue generation and expenditure
activities.
1.3.2 Content of financial accounting in public non-profit units
1.3.2.1 Financial accounting of public non-profit units based on cash basis
1.3.2.1.1 Identification - record the measurement of the accounting object
a) Determination of accounting objects:

Assets include: Money, Non-cash assets. Source of asset formation:
loans, owners' equity. The objects are income / income and expenses /
expenses.
b) Recording and measuring accounting objects:
The accounting assumption "going concern" governs the principle of
measurement and recognizes the accounting objects. If the assumption of
"going concern" exists, the value of the established accounting object is
determined by the cost principle.
1.3.2.1.2 Receiving - processing - providing information of accounting
objects
a) Receive initial information from accounting documents
Each object has a corresponding type of voucher recognizing an increase
or decrease of the object.


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b) Processing information through accounts
* Accounts: A t paragraph reflects cash and cash equivalents. Accounts of
funding,funds. Accounts Receivable, Accounts Expenses. A t paragraph
reflects assets other than cash. A t the tracking account liabilities.
* Reflecting changes of accounting objects into accounts:
Accounting uses dual recording method to reflect the change of
accounting objects during the operation of the unit. Principles of real revenue
- real spending determines the time of recording the increase or decrease of
objects. Depending on the needs of management, the arising is not associated
with the actual revenue - the money and cash equivalents are not recorded to
the targets of Income - Expense Report that are tracked separately to update
information on theory. prove financial statements.
c) Providing accounting information through the financial statements

The financial statements prepared on a cash basis provide the reader
with information on the increase in cash during the period, the purposes for
which the money is used and the cash balance at the date of the report.
1.3.2.2 Financial accounting public non-profit units based on accrual basis
1.3.2.2.1 Identify - record the measurement of the accounting object
a) Determination of accounting objects: Assets include short-term assets
(cash, inventory, financial investments, receivables), the long-term
assets. Source of asset formation includes liabilities, net assets / equity. The
object is revenue and cost.
b) Measure and record accounting objects: Accounting on the basis of
accumulation records and measures specific accounting objects according to
consistent principles, specifically: For asset types that are money, inventories,
fixed assets are usually based on the original cost principle if assuming
continuous operation is guaranteed or fair value / net worth can be realized if
this assumption violated.
1.3.2.2.2 Receiving - processing - providing information of accounting
objects
a) Receive initial information from accounting documents:
Including: accounting documents reflecting increasing or decreasing
assets; reflect debts, etc.
b) Processing information through accounts:
* Account: opens according to accounting objects.
* Reflecting changes of accounting objects into accounts:


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Accounting uses dual recording method to reflect the change of
accounting objects during the operation of the unit. The principle of
" executing/ realizing", "matching between income and expenses" determines

the time when the object will be increased or decreased. Accounting based on
accruals records changes of subjects belonging to financial
activities; investment activities; operates other than the above two operations
into the accounting account.
c) Providing financial and economic information through the financial
statements: Based on the cumulative basis, the financial statements must
provide information about the financial position, activities and cash flows of
a unit that helps to evaluate the analysis and make decisions about the
allocation of resources.
1.4 ACCOUNTING OF THE PUBLIC SERVICE UNITS IN SOME
COUNTRIES IN THE WORLD AND EXPERIENCE FOR VIETNAM
1.4.1 Accounting of public service units in some countries in the world
Many countries around the world have been applying international
accounting standards (or IFRS or IPSAS) or based on international public
accounting standards to build the national public accounting standards
applied to their country. These ways were suitable for political institutions,
allocation and payment relations between the state budget and public sector
and public finance units.
1.4.2. Experience for financial accounting of public non-business units in
Vietnam
There are many differences between the accounting of Vietnamese
public non-business units and the similar accounting system of countries
around the world. The accountants of Vietnamese public non-business units
have not provided useful information for accountability and decision
making. With the rapid development of the public sector in the last decade
and the orientation of public financial management reform towards increasing
the efficiency of using public resources in Vietnam, public sector accountants
must be restructure positively. Experiences from countries around the world
show that accounting of public service units are affected by the model of
General State Accounting, the level of application of IPSAS, the accounting

basis of public accounting system in that country .
CONCLUSION OF CHAPTER 1


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Chapter 1 presents the concepts, meanings and requirements, principles
and tasks of accounting in public non-business units and comprehensive
public service units. In-depth analysis of the factors that influence accounting
work at public non-business units. Analyzing and systematizing the basic
arguments about the content of financial accounting of public non-business
units on the cash basis and on an accrual basis. Provide analysis of the
situation of applying different types of accounting facilities to public service
unit accounting in the countries around the world today and the general
trend. The above content provides a basis for the process of analyzing the
situation and proposing solutions to complete the accounting work of
Vietnamese public professional secondary schools in the following section.
CHAPTER 2
CURENT SITUATION OF ACCOUNTING IN VIETNAMESE
PUBLIC VOCATIONAL TRANING COLLEGES
2.1 GENERAL CHARACTERISTICS OF VIETNAMESE PUBLIC
VOCATIONAL TRANING COLLEGES
2.1.1 Definition, classification of public vocational training colleges in the
Vietnamese national education system
Vocational training colleges is the basis education in the national
education system, carrying out human resources training and professional
training skills corresponding to the intermediate-level vocational
qualifications, having professional ethics and responsibility to directly serve
units. production, sales and services.
- Classification of vocational training colleges based on management unit

criteria: 4 types
- Classify the vocational training colleges based on the criteria of the
decision-making unit: 2 types
2.1.2 The role of Vietnamese public vocational training colleges
As a "vocational training channel" at the intermediate level, the
division of students after junior and senior high schools is carried
out. Training human resources directly for production, business and services,
with professional competence corresponding to the level of training at the
following levels: primary, intermediate, college and contribute to training
high quality human resources, etc.


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2.1.3 Factors controlling financial accounting of public vocational
training colleges in Vietnam
2.1.3.1 Operation characteristics
The Vietnamese vocational training colleges operates according to the
regulations of the vocational training colleges charter (Circular No. 54/2011 /
the Ministry of Education and Training dated November 15, 2011, effective
from December 31, 2011 and the Circular No. 47/2016 / Ministry of Labor,
Invalids and Social Affairs takes effect from February 15, 2017).
2.1.3.2 Financial management process
Estimating revenue and expenditure - Implementing estimates - Settlement
2.1.3.3 Financial and economic activities in Vietnamese vocational training
colleges - the factor that governs the selection of accounting basis
In order to be compatible with the theoretical study, the practical
approach can divide the operation of VPVTC into three areas: financial
activities affect the capital structure; investment activities affect the structure
of long-term assets; operates other than the above two activities. All three

areas of this work share the financial nature of creating resources and using
resources. The recognition of financial and economic activities in the
secondary schools will affect the content of financial accounting on a cash
basis or on the basis of accumulation in the colleges that the author studied
and presented in the following section.
2.1.3.4 Organizational characteristics of management apparatus
Organization of the VPVTC is based on the charter of the VPVTC,
including: Director, the specialized training departments, the faculties that do
not have specialized training and the subordinate departments, functional
departments, training facilities research, socio-political organizations.
2.1.3.5 Characteristics of accounting apparatus
The Finance - Accounting Department is one of the functional
departments, advising the Principal in the field of financial management,
assets, capital sources, funding sources, internal and external funds in
accordance with State regulations; directly carry out accounting work to
provide economic and financial information to serve inside and outside the
VPVTC.
2.1.3.6 Accounting legal framework
The system of legal documents is a basis for VPVTC to implement the
current accounting work. Legal documents affecting the surveyed accounting


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data include: - State Budget Law - Accounting Law - Education Law Professional Education Law - Accounting regime and legal documents other
related, etc.
2.2 CURRENT SITUATION OF ACCOUNTING IN VIETNAMESE
PUBLIC VOCATIONAL TRAINING COLLEGES
The study of actual accounting work at vocational training colleges
aims to answer the author research questions posed to the current content of

financial accounting in the secondary schools. The data stated below are
based on the calculation results of a survey of the sample of 63 VPVTC of
the recent 5-year period and divided into two periods with the demarcation
time of 31/12/2017. Counterfeit collection is calculated to the end of June
2018. The schools in the survey sample are quite diverse in terms of
education training 4.8%, economy 17.5%, engineering 4.8%, service trade
25.4% ect ensuring data assessing diversity, helping to assess the actual
accounting work of high school vocational schools is highly comprehensive.
2.2.1 Accounting and accounting principles
The reference to the principle of modify cash basis or modify accruals
basis can be seen clearly in the accounting basis before December 31, 2017,
which is a combination of cash basis and accrual basis. The same financial
accounting system from receiving - processing to providing information
related to accounting objects but cannot be considered as a cash basis or an
accrual basis. After December 31, 2017, although there are no specific
explanations in writing or specific provisions in the accounting regime, but
through the accounting instructions of economic activities in administrative
and non-business units that VPVTC are adhering, it can be seen that the
accounting basis is aimed at separating financial accounting on the basis of
full accrual basis and full cash basis. This is demonstrated by separating the
scope of information to be received - the way of receiving - processing providing the output – the users of the output information. The acquisition,
processing and provision of information: from an input data source, an
information processing system, accountants use double entry bookeeping to
reflect the changes of all accounting objects in the accounting period, the
output is the financial statements; The accountant uses single entry
bookeeping to reflect the changes in accounting objects originating from the
state budget or resources controlled by the state and resulting in final
settlement reports.

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2.2.2 Financial accounting on cash basis
a) Identification - record the measurement of the accounting object
a1) Determination of accounting objects: assets (cash or treasury deposits of
budget-based banks); state budget or state-controlled funding.
a2) Recognition and measurement of accounting objects: Asset valuation is
based on the total amount of money from the budget to purchase and invest in
asset construction in the fiscal year. The determination of the source of the
state budget fund, or the state-controlled source is based on the total value of
actually collected revenue (also called the granted unit) in the fiscal year. The
amount from the state budget allocated to the school every year is the basis
for accounting to calculate the amount spent on teaching and training
activities of the schools annually.
b) Receiving - processing - providing information of accounting objects
b1) Receive initial information from accounting documents
Normally accounting is based on documents issued by the Treasury which controls the state budget expenditure issued by the school accountant.
b2) Processing information through accounts
* Accounting account:
Before 31/12/2017, accountant uses domestic and foreign accounts. After
31/12/2017, accountants use off-balance sheet accounts.
* Reflecting changes in accounting objects into account (book): Before
31/12/ 2017, the accounting applies a clear cash basis when it recognizes the
value of newly formed fixed assets in the year of origin from the state
budget. Specifically, at the time of formation, the accountant shall record the
entire value (original price) of fixed assets into the expenditures of the
corresponding activities (spending on educational and training activities,
expenses for activities assigned or actually assigned by the State, show orders
of the state). After 31/12/2017, using only the off-balance sheet system, the
application of cash basis is more pronounced when the accountant only

reflects on a system of off-balance sheet accounts (008, 009, 018). Based on
treasury documents, it shows an increase in the amount of money received
from the budget when receiving the decision to assign estimates and reduce
money from the state budget when withdrawing the estimates for use.
b3) Provide information through accounting reports:
Before December 31, 2017, the accounting report was collectively
referred to as the financial statements, the settlement report used to


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synthesize the situation of assets, receive and use the state budget, the
revenue and expenditure situation and conclusion. Operational results of units
in the accounting period provide major financial and economic information
for the assessment of the situation of the units and serve as a basis for
monitoring and operating the units' operations. In which, the settlement report
is the financial statement of the annual accounting period after it has been
amended and supplemented during the adjustment of the settlement
according to the provisions of law. Therefore, there is no full cash reporting
system of accounting in Vietnamese secondary schools. After December 31,
2017, most schools' accountants affirmed that the preparation of the Final
Accounts is independent of the main financial statements and information
sources based only on the number of receiving and withdrawn numbers using
funds from the state budget and sources are controlled by the state is a
manifestation of cash-based reporting.
2.2. 3 Financial accounting on an accrual basis
a) Identification - record the measurement of the accounting object
a1) Identify the accounting objects: Objects are types of assets; objects are
payable; objects are funding sources, funds, capital sources; The object is
revenue / revenue, expenses / expenses.

a2) Recording and measuring accounting objects:
Accountants measure accounting objects according to separate
regulations for each subject. According to the sample survey results based on
the knowledge of the accounting contents before 31-12-2017, it shows that
the accounting measures the accounting objects according to specific
regulations for each partner and inconsistent in the principle of calculating
prices. According to the sample survey results based on the understanding of
accounting contents after December 31, 2017, it shows many obvious
changes when measuring and recording the accounting objects in the
direction of respecting the principle of accumulating establishments. like
original price, implementation, matching, etc.s
b) Receiving - processing - providing information of accounting objects
b1) Receive initial information from accounting documents:
Based on the understanding of accounting contents before December
31, 2017, 95.2% observed in the form of accounting vouchers to record each
increase and decrease of accounting objects at the time of arising and
refunding and not dependent on collection and payment. Based on the


15

understanding of accounting contents after December 31, 2017, the
observations in the survey form identify the receipt of initial information
via accounting vouchers in 2 categories: documents of compulsory type and
vouchers designed by yourself. The accounting voucher system being applied
by schools is not only used as a basis for accountants to reflect the receipt
and use of state budget but is a common basis for accountants to record
changes of all subjects. whether or not related to the state budget.
b2) Processing information through accounts (books):
* Accounts (accounting book):

The account system is unique, whereby all occurrences with or without
state budget are reflected on accounts with the same principles. There are
85.7% of schools in the survey sample claiming their account system closely
follows the accounting objects including both monetary and non-monetary,
but only 11.1% of units in the sample affirm that separate on monetary and
non-monetary object tracking accounts. Pursuant to a sample survey based on
information content knowledge in the fields of accounting at Vietnamese
secondary schools after 31/12/2017, using the account system is extended,
detailed
and
specified than the 9 types
certain
account in
the
table from categories 1 to 9, divided according to financial situation, reflect
the situation of assets, liabilities, capital sources, revenue, costs, surplus
(deficit) of units in the accounting period .
* Reflecting changes in accounting objects into account (book)
According to survey results based on knowledge of accounting contents
before December 31, 2017, the phenomenon of processing information of
many schools depends on the viewpoints and qualifications of accounting,
management requirements as well as the work packages. There are 80.9%
observations in the survey sample confirming that at the same time, it reflects
the information about changes in the accounting objects for the financial
situation of the entire unit and for the situation of receiving and using the
state budget in together with the system of in-house accounts when
transactions related to the state arise. When recording the accounting objects
in both monetary and non-monetary 77.8% of the observations in the sample
selected according to the guidelines of house rules water and only 9.5%
observed in the sample used the principle of implementation and relevance

while still 12.7% of observers in the sample said that the principle of real
collection was applied - actually. With the knowledge of accounting contents


16

after 31/12/2017, t The observed weight in the sample confirms the
simultaneous recognition of information on changes in accounting objects for
the financial situation of the entire unit and for the situation of receiving and
using the state budget in the same account system In the table, when
transactions related to the State budget arise, the value is reduced to
12.7%. But when recording the accounting objects in both monetary and nonmonetary 66.7% of the observations in the sample selected according to the
guidelines of the state regulations, 28.6% observed in the sample used the
principle. implementation and relevance, and there are 4.8% observations in
the sample that apply the principle of real revenue - really.
Specifically:
Recognizing arising related to assets
Recognizing arising related resources
Recording occurring revenue and expenses
b3) Provide information through accounting reports:
Based on the understanding of accounting contents before December
31, 2017, the accounting system of accounting provides accounting
information based on the combination of accrual basis and cash basis, in
other words newspapers School accountants' statements were not based on
the principles of full cumulative basis, 41.3% of observation in the sample
that the report was based on the principle of real revenue - incomplete
expenditure, and 38.1% of observations in the sample suggested that the
report was based on implementation principles and appropriate but
incomplete principles. Based on the understanding of accounting contents
after 3/12/2017, 60.1% of the observations in the sample suggest that the

general principle of accounting reporting is the implementation principle,
inadequate fit and 39.9% of the observations in the sample suggest that the
accounting report complies with the implementation principle, fully
consistent.
2.3 EVALUATION OF THE SITUATION OF ACCOUNTING
SITUATION IN VIETNAMESE PUBLIC VOCATIONAL TRANING
COLLEGES
2.3.1 Achievements
The survey results show that the secondary schools have fully complied
with the regulations on financial regulations from the collection of revenues,
expenditures, receipt and use of revenue sources and settlement of those


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sources, and proper application. Current administrative and administrative
accounting regime.
2.3.2 Limitations
2.3.2.1 Restrictions of accounting basis awareness and corresponding
principles in accounting work
The knowledge of the accounting principles and principles being used
in the unit is not focused on the vocational secondary schools, which is
reflected in the sample survey results on the basis of the contents and the
objects of accounting. on the understanding of the content of implementation
accounting both before and after 31/12/2017 mentioned above. This
restriction will hinder the future when the trend of using accounting standards
as a measure for accounting units to implement the content of accounting
work instead of the detailed and specific instructions as currently in.
2.3.2.2 Limitations in the application of accounting facilities and
corresponding principles when determining and measuring accounting

objects
Accounting of many schools has not identified what the specific
cash-based accounting objects are, when learning the signs in the recognition
of accounting objects, it is money and cash equivalents as well as the objects
non-cash and cash equivalents (liabilities, inventory assets, long-term assets
...) both in sample surveys and case studies. In applying the cumulative basis
when reflecting the financial situation as well as the overall operating results
of the whole unit, the identification and measurement of the subjects have not
been considered by the schools in terms of nature and yet Be sure to apply
the correct principle to note. This restriction is even more evident when the
accountant recognizes new subjects in the context of an innovative financial
management mechanism, the school's activities are diversified.
2.3.2.3 Limitations in the application of accounting facilities and
corresponding principles when receiving - processing - providing
accounting information
- Regarding initial information acquisition: Although before December 31,
2017 or after December 31, 2017, accountants always focus on documents
related to monetary items and attached to the budget from the state budget.
- Regarding accounting information processing: There is no separation
between accounts reflecting monetary and non-monetary objects, including a
system of specialized accounts that monitor the source of the state budget or


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state-controlled sources. It is still possible to reflect the arising object in the
wrong account. According to the sample survey as well as understanding the
information processing model of school accountants in the previous period or
after 31/12/2017, the recognition of arising transactions has not focused on
the nature of the transaction, or difficulties. Which often meet the content of

revenue recognition in the right nature, at the right time and record the cost of
generating revenue and income on the principle of matching revenue, income
generated, etc.
- Related to providing accounting information: The application of cash
facilities when setting up information on this reporting system is incomplete,
typically with information associated with non-monetary items. The
provision of financial information of the school to external audiences such as
investors, affiliates, etc. has not been focused, mainly reporting accounting
and submitting to the financial planning department of the host. serving for
settlement, or submitting to the State Treasury for checking and comparing
the amount of temporarily paid, actual withdrawal, actual expenses, etc.
2.3.3 Causes of limitations
2.3.3.1 The weaknesses in accounting infrastructure of public professional
high schools
The existing problems in accounting come from either the level of
understanding or the loose management of the internal control of the
school. The problems in accounting probably is due to subjective intention of
the unit manager. The coordination between other departments and the
accounting department is not strict enough, leading to the delay in checking
and documenting, causing difficult to use vouchers to account. In addition to
the limited and quality of accounting staff, the awareness of managers in
particular and officials and lecturers in general about autonomy in both
operation and finance and counter-accountants. The operation of the unit
under this mechanism is also incomplete.
2.3.3.2 Inadequacies in the legal framework for accounting for public
professional high schools
In general, the accounting regime still focuses on serving the needs of
the state budget management in the budget beneficiaries while the financial
mechanism directs the units to reduce their dependence on the state budget or
in another words beside units using the state budget, there are also units that

do not use the state budget. The regulations on accounting regime have not


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yet promoted professionalism in accounting work when the Accounting Law
allows units to hire accountants and chief accountants but in the regulations
on the next regime, there is no legal responsibility. Accountants of
accounting service providers on vouchers, accounting books and accounting
reports.
2.3.3.3 Shortcomings in operational mechanism and financial management
mechanism for public professional high schools
On the objective side, the mechanisms and policies of the state lack of
synchronization. On the subjective side, awareness of managers in particular
and officials and lecturers in general about financial autonomy is incomplete.
CONCLUSION OF CHAPTER 2
The second chapter shows an overview of the high school
system in Vietnam, in which focuses on researching high schools that directly
managed by the Department of Education and Training / Department of
Labor, Invalids and Social Affairs of the provinces (cities). The author
conducts empirical research through descriptive statistical methods and case
studies on accounting work at vocational secondary schools according to the
perspective of using cash accounting facilities and accrued accounting bases.
Corresponding accounting principles from receiving and processing to
information provision. Based on the situation, the author has evaluated both
advantages and shortcomings in accounting work, and also specifically
analyzed the causes of existence.
CHAPTER 3
SOLUTIONS TO IMPROVE THE ACCOUNTING IN VIETNAMESE PUBLIC
VOCATIONAL TRAINING COLLEGES

3.1 ORIENTATION FOR DEVELOPING VIETNAMESE PUBLIC
VOCATIONAL TRAINING COLLEGES
Promote socialization and diversity of resources for the development of
vocational education, expand professional skills training for employees, etc.
Create unity in state management agencies on vocational education, avoid
cross-sectional situation; at the same time coordinate with relevant agencies
to develop decrees to guide in detail the implementation of the Law on
Vocational Education. Develop a set of criteria for assessing technical norms


20

of job positions of workers and the demand for professional qualifications,
etc.
3.2 PRINCIPLES OF COMPLETING ACCOUNTING IN VIETNAMESE
PUBLIC VOCATIONAL TRAINING COLLEGES
The perfect accounting must respect the principles:
- Based on existing characteristics and conditions in the schools as well as
future development directions of the industry.
- Based on the regulations of financial management, budget, development
orientation of public sector, the principles of accounting in public non-profit
units and based on international public accounting standards in accordance
with practical conditions in Vietnam.
- Meeting the information needs of diverse, timely, honest, managers and
financial control objectives of the state.
- Meeting efficiency and saving goals.
3.3 SOLUTIONS TO COMPLETE ACCOUNTING IN VIETNAMESE
PUBLIC VOCATIONAL TRAINING COLLEGES
3.3.1 Group of solutions to complete financial accounting on cash basis
3.3.1.1 Increase the awareness of accountants on the framework of cash

accounting and the accompanying principles
The cash basis is used for accounting to track changes in resources
which are either money or cash equivalents with state budget or funds
controlled by the state. Help to receive, process and provide information for
national budget control. The system of basic principles comes from:
principles of actual revenue, actual spending, principle of original price.
3.3.1.2 Complete the identification of accounting objects and ways of
measuring and measuring specific audiences to comply with cash
Objects include: Money, Source, Temporary payment, Temporary
collection, Payment.
3.3.1.3 Complete the set of accounting accounts reflecting the objects of
accounting for compliance with cash basis
Accounting accounts system reflecting the above-mentioned subjects,
including: Cash Account, Resources Accounts, Receivable Accounts,
Advance, Temporary Spending Account, Spending Account.
3.3.1.4 Complete the way of reflecting transactions into accounting
accounts by double recording method to easily recognize account


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reciprocal and help reconcile when consolidating the financial statements
of state accounting
State budget source is allocated to units and expenditures from the state
budget shall be monitored separately and accounted immediately when the
revenue and expenditure operation arises to ensure the data reflects truthfully,
serving the budget settlement objectives from government. Receiving funds
and using state budget funds are recognized when they are actually occurred.
3.3.2 Group of solutions to complete financial accounting on the accrual
basis

3.3.2.1 Increase the awareness of accountants on the cumulative
accounting framework and accompanying principles
The accompanying basic principles include: original price principles,
implementation principles, compliance principles.
3.3.2.2 Add and improve the content of determining and measuring
uniform accounting objects according to the set of accrual basis
Specifically, add the rooftop of assets (Cost of production work in
progress, prepaid expenses, etc.), liabilities (unrealized Revenue, Provisions,
etc.), sources of funds, revenues / cost / result determination.
3.3.2.3 Complete accounting documents to comply with accrual basis
When the service provision of the secondary school complies with the
Price Law, it is necessary to issue a training service invoice, along with other
school production and business bill, in the future, electronic invoices can be
used. Accountants should supplement documents to list the volume of work
performed in each subject according to each training system and each job
(lecture time, examination according to the training system, type of training).
3.3.2.4 Complete accounting accounts reflecting the accounting objects
complying with accrual basis
Additional accounts reflect assets, liabilities, funds, income, costs, determine
results.
+ Property account: additional account "Reserve for loss of assets"; Detailed
account of account "Unfinished production and business costs".
+ Accounts of liabilities: Add content to the account "Unearned
revenue", supplement the "Payable provision " and "Special Fund" accounts.
+ Source account, fund: Additional detailed account "Other funds" in the
general account "Funds" to separate sources received from the state budget or
outside the state budget.


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+ Income accounts, costs, determine the results: forming "Revenue from the
non-state budget" and "Revenue from the state budget" accounts opened in
detail according to each activity. With the Account "Governmental Operating
Expenses" or "General Operating Expenses" account, it is necessary to open
details according to the item or cost factor instead of the regular and irregular
details as currently, because of the tracking According to regular or
infrequent expenditures, only one part of the activity will be monitored.
3.3.2.5 Complete the way of reflecting transactions into accounting
accounts in compliance with accrual basis
The accreditation of accrual accounting method will cover all
transactions arising irrespective of whether the transaction is originally from
the state budget. Specifically, with the accounting parts: assets, liabilities,
funds, income, costs, determine results, etc.
3.3.2.6 Complete accounting report to comply with accrual basis
The financial reporting system is set up by all vocational secondary
schools regardless of the degree of dependence on the state budget,
specifically:
- Report on the financial situation: indicates the financial condition of each
school at a specific time (the end of the accounting year), namely the types of
assets and sources of asset formation at the time of reporting. The report has
a two-part structure: Assets and Resources.
- Report on the results of activities: reflecting the results of activities carried
out by the school, including training activities, project program
implementation, state orders, business activities, finance and other activities.
- Monetary circulation report: determining the cash inflow, cash-out items in
the reporting year and cash balance at the date of the report, to provide
information about changes in money and equivalent money at the unit;
Money sources and purposes of usage. At the same time, the Cash Flow
Statement will show the balance between the cash flow generated in the

period with the money spent in the period and will show the effectiveness of
financial management in the school, especially in terms of financial
autonomy.
- Explanation to the financial statements report comprises of
additional explanatory information or detailed analysis of the items presented
in the Financial report, Report of operating results, cash flow statements as