TABLE OF CONTENT

LIST OF ABBREVIATIONS
LIST OF TABLES
INTRODUCTION
- The role of accounting in the economy in general and with the internship in
particular.
- The meaning of training in general and for yourself in particular.
- Outline the structure of the report.
 Chapter 1: OVERVIEW OF HOANG LIEN SON TECHNICAL CERAMIC
JOINT STOCK COMPANY

1.1. History of the establishment and development of Hoang Lien Son Technical
Ceramic Joint Stock Company
1.1.1. General introduction of the Hoang Lien Son Technical Ceramic Joint Stock
Company
Based on the business license of Hoang Lien Son Technical Ceramic Joint Stock
Company (Appendix No. 1):

Vietnamese name Công ty Cổ phần Sứ Kỹ Thuật Hoàng Liên Sơn

Foreign name Hoang Lien Son Technical Ceramic Joint Stock Company

Abbreviation HOCERATEC
name

Address Yen Ninh Ward, Yen Bai City, Yen Bai Province, Vietnam

Phone +84 (29) 3852477 - 3852565

Fax +84 (29) 3953083

Email [email protected]

Website www.hoceratec.com.vn

Business lines Manufacturing and trading all kinds of insulating ceramic

Hoang Lien Son Technical Ceramics Joint Stock Company is an enterprise

with state share capital, established and operating under the Law on Enterprises and
the Law on State Enterprises, independent business accounting, legal status, having its
own seal for the name, having accounts opened at Yen Bai Bank for Investment and
Development Branch and Branch of Agricultural Bank and rural development Yen
Bai, an official member of the Vietnam Chamber of Commerce and Industry.
The company has 1 manufacturing factory and 4 representative offices in cities:
- No. 4 Hoang Sam Street - Cau Giay District - Hanoi City
- No. 349 Ha Huy Tap Street - Vinh City
- No. 52 Hai Phong Street - Da Nang City
- No. 182 Cong Hoa Street - Tan Binh District - Ho Chi Minh City
1.1.2. Process of formation and development
Hoang Lien Son Technical Ceramic Joint Stock Company, formerly known as
a State enterprise (Hoang Lien Son Ceramic Factory), was established on 07/11/1979.
With a total capital of: VND 5,164,000.
From 1979 to 1991, Hoang Lien Son Ceramic Factory was a state-owned
enterprise in Hoang Lien Son province specializing in producing insulating ceramic
with voltage up to 35 Kv and civil ceramic for consumption.
In 1992, Hoang Lien Son Ceramic Factory was re-established under Decision
No. 220/QD-UBND, dated 29/12/1992 of the People's Committee of Yen Bai
province, named Hoang Lien Son Technical Ceramic Company. With a total capital
of: VND 2,935,277,863.
In 2004, pursuant to Decision No. 387/QD-UBND, dated 24/12/2003 of the
People's Committee of Yen Bai province on approving the plan to equitize and
convert the State enterprise Hoang Lien Son Technical Ceramic Company into Hoang
Lien Son Technical Ceramic Joint Stock Company from 01/01/2004. With charter
capital: VND 8,458,600,000.
Where:
State capital (Yen Bai Provincial People's Committee) is: 4,739,600,000 VND
(56%).
Capital owned by employees in the company is: 3,719,000,000 VND (44%).
On November 9, 2007, the representative rights of state capital ownership were
transferred from Yen Bai Provincial People's Committee to Vietnam Shipbuilding
Industry Corporation. The charter capital at the time of transfer was: 8,791,072,495
VND. Currently, the charter capital of the company is: 34,000,000,000 VND.
Where:
State capital (Vietnam IT Corporation) 13.94%: 4,739,600,000 VND.
Shareholders inside and outside the enterprise 86.06%: 29,260,400,000 VND.
The face value of the shares being issued is 10,000 VND per share. The total
number of ordinary shares of the company is 3,400,000 shares.
Hoang Lien Son Technical Ceramic Joint Stock Company has become a
leading enterprise in Vietnam in the field of design, manufacturing, and trading of
high-quality electrical insulating ceramic and technical ceramic to meet the
development needs of the country's electrical engineering industry and for export.
 Over the years of using the company's products, both domestic and
international customers have always trusted and increasingly established strong
commercial relationships with the company. With a production capacity of over 3,500
tons per year, the company's electrical insulating ceramic products are currently being
used in all 63 provinces and cities in Vietnam, as well as exported to ASEAN, EU,
and Northeast Asian markets.
1.1.3. Achievements
In recent years, Hoang Lien Son Technical Ceramic Joint Stock Company has
continuously invested in production development, technological innovation,
workforce training, and product quality improvement, while expanding both domestic
and export markets. The company has a well-structured organization with clear
functions and tasks, and its members are united and fulfill their responsibilities. The
company's production and business operations are stable and growing, ensuring
employment and income for its employees, and making significant contributions to the
socio-economic development of the province.
The company has achieved numerous prestigious national and international
quality awards, including:
- Golden Globe Award for Quality.
- Asia-Pacific International Quality Award.
- Golden Cup for Top Ten Vietnamese Brands.
- Golden Cup for Social Progress and Sustainable Development.
Every year, over 90% of the company's collective and individual employees
receive commendations and awards. The company has been honored with certificates
of merit and excellent flags in labor competitions, occupational safety and health, and
fire prevention and explosion protection by various authorities, including the People's
Committee of Yen Bai Province, the Ministry of Industry, the Ministry of Labor,
Invalids and Social Affairs, the Ministry of Health, and the Vietnam General
Confederation of Labor. The company has also received commendations and excellent
flags from the government twice, and the State President has awarded the company
with the Labor Medal for outstanding achievements in the period from 1995 to 2005.
The Party and the State have bestowed upon the company the honorary title of "Labor
Hero in the Renewal Period".

1.2. Features of business operations of Hoang Lien Son Technical Ceramic Joint
Stock Company
1.2.1. Functions and duties of the Hoang Lien Son Technical Ceramic Joint Stock
Company
 Hoang Lien Son Technical Ceramic Joint Stock Company is a legal entity
operating under the functions and tasks assigned by the law and is protected by legal
regulations. The Company has the following functions and duties:
- Constructing and organizing activities according to the objectives and plans set
by the State and the company, conducting production and business activities in
accordance with the registered industry and the intended purpose of the
company's establishment.
- Complying with the policies and legal regulations of the State regarding the
management of the production and business process and adhering to the
provisions in business contracts with domestic and foreign partners.
- Managing and utilizing capital in accordance with regulations and ensuring
profitability.
- Conducting research and development to enhance labor productivity and
income of employees, as well as improving the company's competitiveness in
domestic and international markets.
- Being subject to inspections and audits by competent state agencies and
authorized organizations in accordance with legal regulations.
- Implementing the decisions of the State regarding the protection of the rights
and interests of consumers, occupational safety and health, environmental
protection, ensuring sustainable development, and complying with the technical
standards applied by the company as well as relevant regulations related to the
company's operations.
Over the years, with the use of the company's products, both domestic and
international customers have placed their trust in the company and developed a strong
commercial relationship. With a production capacity of over 3,500 tons of products
per year, the company's electrical insulating ceramic products are used in all 63
provinces and cities in Vietnam and exported to ASEAN, EU, and Northeast Asian
markets.
1.2.2. Characteristics of production and business activities
1.2.2.1. The line of business
- Manufacturing and trading of electrical insulating ceramic, technical ceramics,
refractory materials, insulating glass, insulating polymers, and related
accessories.
- Manufacturing, trading, and exporting electrical equipment for power lines and
substations.
 - Direct import and export of raw materials and supplies for the production of
electrical insulating ceramic, technical ceramics, refractory materials,
insulating glass, insulating polymers, and line protection equipment.
- Direct import of machinery and production equipment.
- Extraction, processing, and import-export of minerals.
- Wholesale and retail trading of petroleum and related products.
- Processing of flax, quartz, feldspar.
- Mining of flax, quartz, feldspar.
- Land transportation of goods.
- Other business activities are not prohibited by law.
Products manufactured: Hoang Lien Son Technical Ceramic Joint Stock
Company has a main production line with equipment and technology imported from
the Federal Republic of Germany, reaching an advanced level in the world with 40%
automation and 60% mechanization. The company produces various types of
electrical insulating ceramic with voltage levels up to 220kV, including 5 main
product groups: Line supporting insulators, station post insulators, circuit breaker
insulators, fuse cutout ceramic insulators, and other types of technical ceramic.
The products are manufactured, tested, and undergo trials according to
Vietnamese standards and international standards such as IEC, DIN, ANSI, and JIS.
The company applies three quality management systems simultaneously based on
international standards: ISO 9001:2015, ISO 14001:2015, and ISO/IEC 17025:2017.
1.2.2.2. The manufacturing process
The current technology used by the company is traditional processing methods,
including wet processing for material blending and flexible shaping methods for
product formation.
The manufacturing process of electrical insulating ceramic in the company is
characterized by a complex continuous process, large-scale production, and short
production cycles. The technological process of the company is divided into three
stages:
- Stage I: Material Processing
- Stage II: Product Formation
- Stage III: Firing and Finishing
The products are processed sequentially through these steps, where the output
of each stage becomes the input for the next stage. The technological process of
manufacturing electrical insulating ceramic in the company is represented in the
following diagram:

Figure x.x: Diagram of the manufacturing process of insulating ceramic

Source: Source: HLS Joint Stock Company
Stage 1: Starting from selected and processed raw materials like kaolin, clay,
quartz, they are mixed according to a specific formulation. These materials are then
processed in a ball mill for approximately 30-32 hours. Afterward, they are transferred
to a stirring tank through an iron removal sieve and pressing machine. The resulting
product is pressed into moist sheets with a moisture content of 22-33%. This process
completely removes any impurities and ensures the insulation requirements of the
final product. The pressed sheets are then transferred to a kneading machine (PVP 56).
After kneading, they are placed in a curing warehouse for a period of time before
being transferred to a vacuum kneading machine to form billets.
Stage 2: The blanks are shaped into various products, followed by correction
and drying in a drying kiln. They are then checked for defects and proceed to the
polishing and glazing process. The products at this stage are semi-finished products
ready for the next stage.
Stage 3: The semi-finished products are fired in a kiln for approximately 42-48
hours at a maximum temperature of 1280 degrees Celsius. After cooling, they are
classified, finished, checked for defects, and undergo testing. The products are then
boxed and stored in the warehouse. At the end of this stage, the products are
considered finished and ready for circulation and consumption.
The production process involves several stages and is influenced by various
factors such as the quality of raw materials, machinery and equipment, technological
expertise, and weather conditions. Strict control is required to ensure stable processes
and minimize product defects.
The company produces various types of products with different shapes and
sizes. To complete a product, detailed operations are required in addition to the basic
steps. Therefore, it is challenging to apply mechanization or automation methods in
certain stages such as drying and glazing.
1.2.2.3. Characteristic of the market and competitors of Hoang Lien Son Technical
Ceramic Joint Stock Company
- Characteristic of the market:
Consumer market: The market for insulating ceramic products is the units of
the Vietnam Electricity Group in 63 provinces and cities in the country; the export
markets include countries such as Thailand, Malaysia, Laos, Singapore,…
On average, the company produces and sells over 3,000 tons of products each
year.
- Supply market:
The company has abundant and easily accessible sources of raw materials for
production. Various types of materials are available locally, such as Kaolin (Yen Bai),
and Quartz (Yen Bai). Some other materials are imported from neighboring provinces,
such as Clay (Hai Duong), Dolomite, and Silica (Phu Tho). These are domestically
available materials, which facilitate the company in signing contracts with suppliers of
high-quality input materials at reasonable prices.
- Competitive market:
Due to challenging business conditions and investment in the development of
the electricity sector is limited. The purchasing power of the domestic and export
markets has significantly decreased, leading to increased competition among
manufacturers supplying electrical ceramic products. However, the company
maintains good cooperative relationships with customers. At the same time, it
explores potential markets to enhance its competitive ability.
1.2.2.4. Characteristics of technical infrastructure
In recent years, the company has continuously invested in technology
innovation and modernization of machinery and equipment, adopting advanced and
highly automated technologies to meet the production and business demands of the
enterprise. Although there are still some limitations, this is a significant step in the
company's investment and development process to deliver products of the highest
quality to customers.
1.2.2.5. Characteristics of labor
In 2022, the Company maintains a regular workforce of 240 people. The
average annual income is 8.1 million VND/person/month.
Training level: basic in terms of quantity and quality are detailed as follows:
- Universities and colleges made up 21.25%, corresponding to 51 people;
- Intermediate level was 5%, corresponding to 12 people;
- Technical workers are 177 people, accounting for 73.75%.
Employees working at the company according to the contribution capacity of
each individual, enjoy the benefits, policies and welfare in accordance with the
provisions of the Labor Code, the company's charter, the collective labor agreement
and the company's salary unit price norms.

1.3. Organizational structure of Hoang Lien Son Technical Ceramic Joint Stock
Company
1.3.1. Management organizations model
The organizational structure of the company's management apparatus includes:
- Board of Directors: 05 members.
- Supervisory Board: 03 members.
- Board of Directors: 01 Executive Director cum Chairman of the Board of
Directors, 01 Deputy Director in charge of production, 01 Deputy Director in
charge of sales.
- 05 Operational Departments (Administration Department, Sales Department,
Accounting Department, Technical Department, Quality Management
Department).
- 01 production enterprise, including: 01 factory management office and 12
production teams.
 - 04 Representative Offices in: Hanoi City, Vinh City - Nghe An, Da Nang City,
Ho Chi Minh City.

Picture x.x: Diagram of the company's organizational apparatus

Source: HLS Joint Stock Company
1.3.2. Characteristics of the management apparatus:
The management system is responsible for all activities of the Company
through specific directives and optimal implementation measures suitable for the
Company's development situation.
Based on the mission and characteristics of the Company's production and
business, the management system has a reasonable structure organized under a single
Chief Executive Officer and follows an online model.
It demonstrates centralized and unified management, adhering strictly to the
principle of compliance with a charter: each employee has only one supervisor, and
each lower level has only one direct superior. Directives, orders, and reports must
comply with this principle. In production and business, decisions are made by the
Chairman of the Board of Directors with the assistance of the Deputy Director, Chief
Accountant, members of the Board of Directors, Party Committee, and functional
departments, as depicted in the organizational chart of the management system for
production and business operations.
1.3.3. Functions and duties of each department, division and the relationship
between departments and divisions in Hoang Lien Son Technical Ceramic Joint
Stock Company
Chairman of the Board of Directors cum CEO of Hoang Lien Son
Technical Ceramic Joint Stock Company
As the head with the highest management and executive authority, directing all
activities of the Company, responsible for business results before the Party
Committee, the General Meeting of Shareholders and the law. Directly manage
accounting department and administrative organization department:
- Decide all issues related to the Company's day-to-day operations.
- Organize the implementation of decisions of the Board of Directors.
- Organize the implementation of the Company's production and business plans
and investment plans.
- Propose a plan to arrange the organizational structure and internal regulations
of the Company.
- Appointment, dismissal, and dismissal of the head of the production
organization, the head of the representative office; propose the Board of
Directors to appoint, relieve from duty or dismiss military officers under the
decision-making authority of the Board of Directors.
Board of Supervisors
- Check the rationality and legality in the process of operating production and
business activities.
- Appraisal of the Company's annual financial statements; inspect the
implementation of resolutions of the general meeting of shareholders; report to
the General Meeting of Shareholders on the accuracy, truthfulness and legality
of recording and archiving documents.
- Propose measures to supplement, amend and improve the organizational
structure of management and administration of production and business
activities of the company.
Deputy director in charge of Production Technology
- Responsible for helping the CEO control the production process of products;
research, development and application of new technologies; quality inspection,
product acceptance, technical improvement initiatives, occupational safety,
training to improve the skills of manufacturing workers, equipment repair and
installation, and production workshops.
- Directly in charge of the Technical Department, Quality Management
Department and Production Enterprise.
Vice President in charge of Business
- Responsible for assisting the Director in operating and controlling business
activities: market survey and research; signing economic contracts; production
orders; organizing delivery and payment of goods; performing after-sales
services.
- Organize the supply of materials and raw materials for production; organize
cargo transportation activities; and be directly in charge of the Sales
Department.
Insulating ceramic factory
- Plan and organize production to ensure the quantity, quality, and timing of
products according to the Company's orders. Prepare for demand for raw
materials, production tools, and spare parts.
- Management and division of labor; coordinate with departments to improve
skills for employees. Technical management and production technology to
ensure occupational safety and health.
- Manage to ensure efficient operation of capital and assets, machinery,
equipment, and labor tools. Implement corrective and preventive actions to
stabilize and improve the operational efficiency of the enterprise.
- Receive new production technologies, apply technical improvement initiatives,
build processes and work instructions; participate in the development of
internal rules, regulations, economic and technical norms and labor norms.
- Propose to the Deputy Technical Director and the Company's Director
solutions to improve the production efficiency of the enterprise.
Sales Department
- Review contracts to supply goods to customers and contracts to purchase
materials of the right type and schedule according to the requirements of the
orders.
 Follow up the delivery of goods to customers, review orders without mistakes.
 Weekly, monthly, quarterly, yearly statistical reports...
- Perform other duties as requested by the leader
Accounting Department
- To be responsible before the Company's Director for the organization and
administration of financial activities, to collect, analyze and process
information on the financial situation of the company to find solutions.
- Monitor import and export of materials, loans, bank deposits, receivables,
payables, fixed assets, capital construction, construction of labor norms, wage
unit prices, product cost, settlement of Social Insurance, Health insurance.
- Carry out internal accounting work, inspecting and supervising the
management of the Company's assets, censoring invoices and death certificates
on financial revenues and expenditures; make statistics, develop general reports
to provide data to serve the company's production and business management
and requirements of state management agencies.
Administration Department
- Building and implementing projects on the organization and development of
human resources in the Company. Implement regimes and policies on labor,
salary, social insurance, health insurance, body insurance, salary increase,
promotion, emulation, reward and discipline. Organize information and internal
propaganda.
- Representative of the leadership of the environmental management system.
Maintain internal order, ensure company safety; managing and performing
clerical work, office equipment, assets, working vehicles.
- Manage employee health care and labor protection work. Organizing reception,
serving, dining and industrial cleaning;
- Presiding over the development of internal rules and regulations of the
Company. Proposing to the Director solutions to improve quality and
effectively use labor.
Technical Department
- Design planning, design control, including:
 Save documents and design drawings sent by customers
 Product design, tools, tools, machinery parts need to be replaced, metal
accessories attached to ceramic ensure exactly the right technology
requirements
 Design tools to check the dimensions of carpentry and baked products
- Perform other work as requested by the leader.
Quality Management Department
 - Develop test plans, test in production and release products, draft inspection and
test instructions such as:
- Check all inputs, input materials in accordance with the contract, moisture,
density, wood strength, sample heating, check the ash level according to the
correct sample, correct contract ...
- Records management and testing
- Plan to organize the internal quality assessment
- Perform work when requested by the leader

1.4. Financial situation and business results of Hoang Lien Son Technical
Ceramic Joint Stock Company
 Table 1.1: Data in the last 3 years of HLS
Differences
2020 2021 2022
2020/2021 (±) 2021/2022 (±) 2020/2021(%) 2021/2022 (%)

131.832.791.63 (12.663.210.935
Total assets 158.919.732.950 146.256.522.015 27.086.941.314 120,55% -92,03%
6 )

Short-term assets 89.428.432.800 96.191.096.532 98.070.626.245 6.762.663.732 1.879.529.713 107,56% 101,95%

(14.542.740.648
Long-term assets 42.404.358.836 62.728.636.418 48.185.895.770 20.324.277.582 147,93% -76,82%
)

115.144.290.27
Owner’s equity 139.992.785.779 131.575.375.470 24.848.495.502 (8.417.410.309) 121,58% -93,99%
7

Net sales from

119.064.070.91 (24.217.217.729
goods and services 146.598.737.570 122.381.519.841 27.534.666.655 123,13% -83,48%
5 )
sold

Costs of goods sold 67.864.477.453 77.884.987.492 77.940.102.559 10.020.510.039 55.115.067 114,77% 100,07%

Gross profit from

(24.272.332.796
goods and services 51.199.593.462 68.713.750.078 44.441.417.282 17.514.156.616 134,21% -64,68%
)
sold

Net profit from (19.183.955.077

28.546.457.846 42.048.260.402 22.864.305.325 13.501.802.556 147,30% -54,38%
business activities )

(20.007.721.037
Profit before tax 28.938.209.098 43.022.495.728 23.014.774.691 14.084.286.630 148,67% -53,49%
)

Profit after income (15.957.263.611

24.865.229.505 34.360.259.302 18.402.995.691 9.495.029.797 138,19% -53,56%
tax )

Unit: VND
Source: Audited HLS’s Financial Statement 2020-2022
 Comment:
From the table above, we can see the economic fluctuations of Hoang Lien
Son technical ceramic JSC in 3 years 2020, 2021, 2022 there is a marked change
between economic indicators. Specifically as follows:
In terms of assets:
Total assets in 2021 are 158.919.732.950 VND, recorded an increase
compared to 2020 is 27.086.941.314 VND (120.55%), of which the increase of
short-term assets is 96.191.096.532 VND (107,56%) and the increase of long-term
assets is 62.728.636.418 VND (147.93%).
In 2022, total assets decreased to 146.256.522.015 VND, corresponding to
92,03%, of which current assets continued to record an increase of 1.879.529.713
VND compared to 2021 but long-term assets decreased significantly, namely
14.542.740.648 VND.
In terms of owner’s equity:
Equity increased in 2021 compared to 2020, from 115.144.290.277 VND in
2020 to 139.992.785.779 VND in 2021, the increase corresponds to a percentage of
121.58%.
In 2022, equity has decreased to 131.575.375.470 VND, down 93,99%
compared to 2021, thereby showing that the business situation this year is not
positive and investments are not effective.
In terms of revenue:
Revenue in 2021 increased from 119.064.070.915 VND to 146.598.737.570
VND, an increase of 27.534.666.655 VND, corresponding to 123,13% compared to
2020. This is because in 2021, it can be seen that the company earned quite a lot of
large contracts as well as the situation of importing and selling materials of the
company is quite smooth.
Revenue in 2022 was only 122.381.519.841 VND , down 24.217.217.729
VND compared to 2021, corresponding to a decrease of 83,48%. This year, the
company has developed the full capacity of employees as well as the strategic
development plan is not high.
In terms of cost:
Expenses in 2021 reached 77.884.987.492 VND, an increase of
10.020.510.039 VND compared to 2020 corresponding to an increase of 114,77%.
Expenses in 2022 reached 77.940.102.559 VND, an increase of 55.115.067
VND compared to 2021. It can be said that 2021 was a good year for the company.
16
 In terms of profit:
Profit in 2021 reached 68.713.750.078 VND, up 17.514.156.616 VND
compared to 2020, the business achieved a profit of 51.199.593.462 VND.
Profit in 2022 only reached 44.441.417.282 VND decreased quite sharply to
24.272.332.796 VND compared to 2021, corresponding to a decrease of 64,68%.

17
 Chapter 2: CHARACTERISTIC OF ACCOUNTING ORGANIZATION AND
ACCOUNTING SYSTEM AT HOANG LIEN SON TECHNICAL CERAMIC
JOINT STOCK COMPANY

2.1. Characteristics of accounting system organization at Hoang Lien Son

Technical Ceramic Joint Stock Company
2.1.1. Organization chart of the accounting apparatus
The accounting apparatus is shown by the diagram below:

Chief Accountant
(also as Head of
Department)

Sales Bank Paymaster; Payment; Supplies

Accountant; Accountant Capital Payable; Accountant;
N
Statistical Construction; Receivable Treasurer
Accountant Product cost; Accountant
Genetal
Accountant

Figure x.x: The accounting organization chart at HLS Technical Ceramic Joint
Stock Company
Source: HLS Joint Stock Company
2.1.2. Accounting duties and functions
Chief Accountant (also acting as Head of Department):
- Responsible to the Board of Directors, the Board of Management, and the
law regarding the financial accounting work of the company.
- Direct, guide, and supervise the entire financial accounting work in the
company in accordance with current regulations.
- Implement financial accounting decisions within the unit, prepare the
company's financial reports at the end of the financial year, and provide
18
 explanations together with the department's leadership regarding the figures
on documents and financial reports when required by tax authorities,
auditors, higher management agencies, and other legal entities.
Payment Accounting:
- Cash Accounting: Update daily income and expenses (reconcile with the
treasurer). Prepare payment vouchers and payment statements for employees
within the company.
- Other Payment Accounting: Detailed recording of accounts payable and
advances.
- Monitor customer debts, analyze the duration of each customer's debts on a
monthly basis.
- Finished Goods Inventory Accounting: Monitor the inflow, outflow, and
inventory of finished goods in the company. Incoming products must
undergo quality assurance by the Quality Assurance Department. The
inventory receipt must be confirmed by the Quality Assurance Manager,
storekeeper, accountant, and Director. The warehouse has three methods of
outgoing goods: consignment, direct sales, and retail sales.
Bank Accounting:
- Account for bank deposits, short-term and long-term bank loans (monitor
daily changes and balances in bank accounts).
- Prepare and monitor contract guarantee funds. Handle payment through L/C
for exports and open L/C for imports.
Supplies Accounting:
- Detailed accounting of materials and tools. Daily monitoring and recording
of material and tool inflow, outflow, and inventory. Conduct checks and
supervision (documents for inflow and outflow must have the signatures of
Security, Quality Assurance, and storekeeper) to verify that the goods meet
the requirements before proceeding with material procurement. Material
issuance is based on the needs of each department, with confirmation from
the department head. At the end of the month, reconcile the inventory card
with the storekeeper. Allocate tool costs.
Paymaster, Capital Construction, Product cost and General Accounting:
- Consolidate accounting data based on accounting records provided by other
departments, maintain ledger accounts, prepare monthly, quarterly, and
annual financial reports, review whether the figures are balanced or not, and

19
 report to the Chief Accountant with the necessary statements for approval
and submission to the Director.
- Aggregate production costs and calculate the cost of goods sold.
- Monthly, based on the labor results of each production team (detailed to each
person, each day), prepare a consolidated payroll for the entire company.
Allocate salaries and set aside the necessary amounts.
- Monitor investment in fixed assets.
Sales and Statistical Accounting:
Monthly, based on sales invoices from offices and sales at the company,
verify, prepare statements, and record in the ledger.
- Declare VAT, summarize the declaration forms, and determine the monthly
VAT amount to be paid.
- Monitor the inventory inflow and outflow in offices, perform reconciliations
and inspections.
- Conduct statistical work, report on the production and business situation of
the company.
- Responsible for detailed statistics of all material and raw material costs
during the period, conducting inventory checks on raw materials and
unfinished products at the end of the month.
- Calculate and allocate depreciation of fixed assets for the entire company on
a quarterly basis. Update the fixed asset register with increases or decreases
during the period.

2.2. Characteristics of accounting system at Hoang Lien Son Technical

Ceramic Joint Stock Company
2.2.1. General Accounting Policies
Basis for preparing financial statements:
The accompanying financial statements are presented in Vietnam Dong
(VND), using the historical cost principle in accordance with Vietnamese
accounting standards, accounting regime and legal regulations related to the
preparation and presentation of financial statements.
Fiscal year: The company's fiscal year begins on January 1 and ends on
December 31.

20
 Applicable accounting standards and regimes:
The Board of Directors of the Company ensures that it has complied with the
requirements of Vietnamese Accounting Standards and the Vietnamese corporate
accounting regime issued in accordance with Circular No. 200/2014/TT-BTC
(Circular 200) dated December 22, 2014 of the Ministry of Finance, Circular No.
53/2016/TT-BTC dated March 21, 2016 of the Ministry of Finance amending and
supplementing a number of articles of Circular No. 200.2014/TT-BTC as well as
Circulars guiding the implementation of accounting standards of the Ministry of
Finance in financial presentation and reporting.
Applicable accounting form: Journal of vouchers on computer.
Summary of some key accounting policies:
Inventory accounting method: The company applies the perpetual
declaration method according to the cost average method.
Detailed accounting method of inventory: The company applies a parallel
carding method. Inventories are measured at the lower of cost and net realizable
value. Cost of inventory includes the cost of direct materials, direct labor and
manufacturing overhead, if any, to bring the inventory to its current location and
condition. The cost of inventories is determined using the weighted average method.
Net realizable value is determined as the estimated selling price less the estimated
costs of completing the product and any marketing, selling, and distribution costs
incurred.
The Company's provision for devaluation of inventories is made in
accordance with current accounting regulations. Accordingly, the Company is
allowed to make provision for devaluation of inventories in case the cost of
inventories is higher than the net realizable value at the balance sheet date.
Principles of recognition and depreciation of fixed assets:
Record fixed assets according to the principle of historical cost. Fixed assets
are stated at cost less accumulated depreciation. The historical cost of a fixed asset
includes the purchase price and all other costs directly attributable to bringing the
asset to a ready-for-use state. The historical cost of tangible fixed assets which are
self-made and self-constructed includes construction costs, actual production costs
incurred plus installation and commissioning costs. Depreciation is calculated using
the straight-line method over the estimated useful lives, specifically as follows:
- Factory, architectural objects: 05-40 years
- Machinery and equipment: 07-12 years
- Means of transport and transmission: 06-10 years
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 - Equipment and tools for management: 03 years
Accounting estimates: The preparation of financial statements in accordance
with Vietnamese accounting standards, corporate accounting regime and legal
regulations related to the preparation and presentation of financial statements. This
requires the Board of General Directors to make estimates and assumptions that
affect the reported amounts of liabilities, assets and the presentation of liabilities
and contingent assets at the date of the financial statements. as well as revenue and
expense reports throughout the financial year. Although accounting estimates have
been made to the best of the management's knowledge, the actual amounts may
differ from the hypothetical estimates made.
VAT: calculation method is calculated and paid according to the deduction
method.
2.2.2. Accounting Documents System
* 2.2.2. Organization and application of the accounting voucher system
The accounting voucher system is used to prove the legitimacy of financial
economic transactions and is the basis for recording accounting books. The
accounting voucher system at Hoang Lien Son Technical Ceramic Joint Stock
Company is organized according to the provisions of the current accounting regime.
2.2.3. Accounting Account System
The Company uses most of the accounts in the accounting account system
according to circular No. 200/2014/TT-BTC dated December 22, 2014 of the
Minister of Finance, along with the accounts of level 2 and level 3 necessary to
reflect all economic activities arising in the company.
The company is a business production unit that reflects all the economic
transactions, and the accounting unit has used most of the accounts in the Enterprise
Accounting System. However, there are some accounts that the unit does not use,
which are accounts with the following numbers: 113, 121, 128, 129, 136, 144, 151,
213, 221, 222, 228, 229, 244, 315, 336, 344, 413, 512, 611, 623. As the company is
an independent accounting unit, it does not participate in joint ventures or
partnerships, does not invest in securities, does not have dependent internal
accounting units, does not receive reserve funds, and accounts for foreign currencies
based on actual exchange rates, etc.

22
 Table 2.2: List accounts in VAS
CODE DESCRIPTION
Class Sub-Class
1 2 3
ASSETS
111 Cash
1111 Vietnamese Currency
1112 Foreign Currency
112 Cash in bank
1121 Vietnamese Currency
1122 Foreign Currency
113 Cash in transit
131 Trade receivables
133 Deductible VAT
1331 VAT on purchase of goods and services
1332 VAT on purchase of property, plant and equipments
138 Other Receivables
141 Advance
152 Materials
153 Tools, Supplies
154 Work In Process
155 Goods
156
1561 Cost of Goods
1562 Freight-in
1567 Property Inventories
157 Consignment Inventories
159 Allowance for Inventories
211 Fixed asset
2111 Tangible Assets
2112 Non-Current Assets under Finance Leases
2113 Intangible Assets
212 Financial leased assets
2121 Financial leased tangible assets
2122 Financial leased intangible assets
214 Accumulated Depreciation & Amortization
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 2141 Accumulated Depreciation
2142 Accumulated Depreciation-Finance Lease
2143 Accumulated Amortization
2147 Accumulated Depreciation of Investment Property
241 Construction in Progress
2411 Fixed Assets in Purchasing
2412 Construction in Progress
2413 Capitalised Repairs/ Major Repairs
242 Prepaid Expenses
243 Deffered tax assets
LIABILITIES
331 Accounts Payable
333 Tax Payables & Payables to GOV
3331 VAT Payable
33311 Out-put VAT Payable
33312 VAT Payable for Imported Goods
3332 Special Sales Tax
3334 Business Income Tax
3335 Personal Income Tax
3337 Housing, Land Tax & Land Rental
3339 Other Fees and Licenses Payable
334 Employee Payables
335 Accrued expenses
338 Other payables
3382 Trade Union Fee Payable
3383 Social insurance
3384 Health insurance
3385 Unemployment insurance
3386 Short-term Received Guarantee
3387 Unearned Revenue
3388 Other payables
341 Borrowing
347 Deferred tax liablilities
352 Provisions
353 Bonus and welfare fund
356 Science and technology development fund

24
 OWNER'S EQUITY
411 Capital
4111 Paid-In Capital
4112 Surplus Share Capital
4118 Other Capital
412 Revaluation differences on asset
414 Investment & development funds
417 Enterprise reorganization assistance fund
418 Other equity funds
419 Treasury stocks
421 Retain Earning
4211 Undistributed profit after tax brought forward
4212 Undistributed profit after tax for the current year
REVENUE
511 Revenue from sale of goods and provision of services
5111 Revenue gained from sale of goods
5112 Revenue gained from sale of finished good
5113 Revenue - Rendering Services
5118 Other revenue
515 Revenue - Financing Activities
521 Revenue deductions
EXPENSE
621 Direct raw materials costs
622 Direct labor costs
623 Costs of construction machinery
627 Production overheads
631 Production costs
632 Cost of good sold
635 Financial expenses
641 Selling expenses
642 Administrative expenses
OTHER INCOMES
711 Other Incomes
OTHER EXPENSES
811 Other expenses
821 Corporate income tax expenses
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 INCOME SUMMARY
911 Income summary
Source: Circular No. 200/2014/TT-BTC

2.2.4. Accounting Books System

At Hoang Lien Son Technical Ceramic Joint Stock Company, the form of
accounting books that the company applies is the form of vouchers combined with
the use of computer software. On a daily basis, based on accounting vouchers or a
summary of audited accounting vouchers of the same type used as a basis for book
entry, accountants enter data into computers according to pre-designed tables on
accounting software. Thanks to the help of the software, the information is
automatically entered into the relevant bookkeeping vouchers, ledgers and financial
statements. The order of bookkeeping at Hoang Lien Son Technical Ceramic Joint
Stock Company is described in the following diagram:

Picture x.x: Sequence of accounting entries at the company

2.2.5. Accounting Reports System

The accounting report consists of two subsystems: the financial reporting
system and the management reporting system.

26
 Financial statements include reports uniformly prescribed by the State that
enterprises must make in accordance with regulations, the right methods and must
send and submit to places as prescribed on time.
The company's accounting year begins on January 1 and ends on December
31, When the fiscal year ends, the Company prepares reports to provide general
information on the financial situation and operating results, including financial
statements and management statements. The financial reporting system is
established according to Circular 200 of the Ministry of Finance.
Financial statements must be complied with Accounting Standards No. 21 -
Presentation of financial statements. The company's financial statement system
consists of three reports:
Balance Sheet: Reflecting the general situation of the company's assets and
capital sources according to the book value at a time. This report is made according
to Form B01 - DN.
Income Statement: Is a summary report, reflecting a summary of the
company's revenues, expenses and business results in one period, made according to
Form B02 – DN.
Cash flow statement: summarizing the company's cash disbursements and
receipts in a certain period of time. The statement of cash flows also shows the
changes of assets, the ability to convert to cash as well as the ability to pay, etc,
made to Form B03-DN
Notes Financial Statement: Explaining and explaining some economic and
financial indicators that have not been expressed on the SSC and the SSC and are
made according to Form B09 – DN.
At the end of the fiscal year, the chief accountant of the Company shall
submit it to the Board of Directors and send it to the Tax Office, the Business
Registration Agency and the Statistics Office.
At Hoang Lien Son Technical Ceramic Joint Stock Company, both
management accountants and financial accountants have to do part-time jobs, they
have to give reports and information that the administrator requires at the request of
the administrator.
2.2.6. Organization of application of information technology in accounting work
Currently, Hoang Lien Son Technical Ceramic Joint Stock Company is using
Bravo accounting software. This is accounting software that is relatively easy to use,
effective and has many powerful utilities and features.

27
 BRAVO software is capable of managing most of the business, purchasing,
sales, warehouse, production, human resources-salary, finance-accounting parts of
an enterprise...; and at the same time connect the data of those parts into a unified
whole. Not only that, the software also supports administration tasks such as
planning and tracking, cost analysis, order and contract management, etc. In
addition, the software also meets many objects with different purposes.
With the help of Bravo accounting software, the company's accounting books
are stored in two forms:
- Stored on computer
- Print and close accounting books

2.3. Characteristics of some accounting cycles at Hoang Lien Son Technical

Ceramic Joint Stock Company
2.3.1. Payroll accounting and payroll deductions:
2.3.3.1. Overview of salary and salary deductions
- Labor characteristics
- Payment methods and salary calculation methods
- Salary deductions
2.3.3.2. Account used and method of accounting salary and salary deductions
2.3.3.3. Detailed accounting of salary and deductions according to salary
- Vouchers and accounting procedures
+ Salary voucher
+ Vouchers of deductions according to salary
- Detailed bookkeeping process of salary and salary deductions
2.3.3.4. General accounting of salary and salary deductions
(The general bookkeeping process based on the accounting book form the unit is
applying)
2.3.2. Accounting for materials, instrument and tools
2.3.2.1. Characteristics of materials, instrument and tools
2.3.2.2. Method of calculating the cost of raw materials, instrument and tools
2.3.2.3. Accounts used and accounting methods for raw materials, instrument and
tools
28
2.3.2.4. Detailed accounting of materials, instrument and tools
- Vouchers and accounting procedures
- Material record keeping process
2.3.2.5. General accounting of materials, instrument and tools

29
 Chapter 3: ASSESSMENT OF ACCOUNTING ORGANIZATION AND
ACCOUNTING SYSTEM AT HOANG LIEN SON TECHNICAL CERAMIC
JOINT STOCK COMPANY

3.1. Assessment of accounting organization

3.1.1. Advantages
(Comments on the organization of the presented accounting apparatus)
3.1.2. Disadvantages

3.2. Recommendation to the organization of accounting at Company

(Comments on such matters as general accounting policy, accounting voucher
system, account system, ...)

30
 CONCLUSION
- Summarize the research content in the report.
- Point out any shortcomings in the report.

31
 REFERENCE

1. Circular 200/2014/TT-BTC on guidelines for accounting policies for

enterprises.
2. Assoc. Prof. Dang Thi Loan (2006), Financial Accounting for Enterprises
Textbook, National Economics University Publisher.
3. Assoc. Prof. Nguyen Ngoc Quang (2012), Managerial Accounting Textbook,
National Economics University Publisher.
4. International Financial Accounting Standard
5.

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 APPENDIX

Appendix No. 1: Business license of Hoang Lien Son Technical Ceramic Joint
Stock Company

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LINK TLTK:
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2. https://www.slideshare.net/duonghakt68/bo-co-thc-tp-tng-hp-ti-cng-ty-cp-
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7.

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