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


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



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.

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...

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


7

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:

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

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

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

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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

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


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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):

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

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

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


19

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

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


+ 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