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acc group assingment- công ty cổ phần 32
acc group assingment- công ty cổ phần 32
PRINCIPLES OF
ACCOUNTING
(ACC101)
GROUP ASSIGNMENT
32 JOINT STOCK COMPANY
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Table of contents
I. Introduction
1.General information.
2. 32 joint stock company history.
3. Manufacturing sectors.
4.Affiliated manufacturing units.
5.Company’s prizes and awards.
6.Market share
7.Oriented development.
8.Risks
II. Viewers can find the following reports in the Financial
Statements.
1. Balance sheet
2. Income statement.
3. Cash flow statement
III. Assess the performance of your chosen firm.
1.Calculate the percentage change
2. Using the notes to financial statements to find the detailed figures.
3. Calculate the percentage of the following in terms over net revenue.
4. Comments
IV. Assess the financial situation
1. The resulting percentage change for the asset, liability and equity
categories.
2. The percentage of each asset as compared to total assets.
3. The percentage of liabilities and equity of the company as compared to
total assets.
4. Based on the financial notes, the following results are obtained:
I. Introduction.
1. General information.
Trading name: 32 Joint Stock Company.
Charter capital: 68,000,000,000 VND
Owner's investment capital: 68,000,000,000 VND
Address: No. 170 Quang Trung, Ward 10, Go Vap District, Ho Chi Minh City,
Vietnam.
Phone number: (84-28) 389404161
Fax number: (84-28) 38940279
Website: www.32jsc.com
Stock information
Stock code: A32
Listing exchange: UPCOM
Listing start date: October 23, 2018
Number of shares listed: 6,800,000 shares
2. 32 joint stock company history.
From 1980 to the present, Joint Stock Company 32, formerly known as Joint
Stock Company 32 of the Ministry of Defense, was founded and put into operation.
It began as a tiny firm focusing on the manufacture of military things such as shoes,
sandals, hats, backpacks, military ranks, and military badges…
To date, the construction and development process has been a success. With
5 member enterprises and a total workforce of up to 2000 people, the company has
grown to become one of the most prestigious local and international businesses. Its
export market spans more than 20 countries across the world.
3. Manufacturing sectors.
Shoe industry
Industrial sewing
Plastic, rubber
4. Affiliated manufacturing units.
Enterprise 32-1: Producing leather shoes and a variety of other items on
National Defense - Security orders; labor protection products and other fashion
products for local and international use.
Enterprise 32-3: Manufacturing and processing bags, backpacks, briefcases,
backpacks, raincoats, belts, garment goods, and other items for the Department of
Defense, internal use, and export.
Enterprise 32-5: Steamed canvas shoes and stylish sports shoes are produced.
Enterprise 32-7: Injection molding leather and canvas shoes, as well as all
types of rubber soles, PU, TPR, plastic sandals, field caps, helmets, and other plastic
goods, as well as processing a variety of products for the shoe industry such as soles,
heels, and blades.
Commercial enterprise: Organizing the domestic consumption of the
company's products; trading other items to support the consumption of the
company's products.
5. Company’s prizes and awards.
Award product/service of Viet Brand in WTO integration.
Trusted 2007 - Prestige Brand, Quality Products/Service.
Thương hiệu hàng đầu việt nam.
6. Market share.
Vietnam is currently one of the top four largest footwear producing countries
in the world, as well as the world's third largest exporter in terms of value (after
China and Italy), accounting for about 10% of global market share; and ranked
second after China in terms of market share in all three major export markets,
namely the United States, the European Union (EU), and Japan.
7. Oriented development.
Evaluate and analyze existing production programs in order to direct
investment, restructure, and modify production for efficiency, in accordance with the
Company's project "Business growth strategy for the period 2021-2025, Vision
2030."
Making full use of all of the Company's potential capabilities in terms of
resources, machinery and equipment, and workshops in order to increase production
and business efficiency.
Continue to invest in machinery and equipment, science and technology for
key industries and key products, and in the development of supporting industries to
be proactive in production and business. Productivity, product quality, and
competitiveness will all improve.
Take care of employees by offering a competitive wage and bonus program,
as well as the greatest possible working environment, in order to retain and stable
personnel, as well as the company's production and business.
Encourage the expansion of distribution channels, distribution forms, and the
completion of the Company's commercial operating rules, as well as the
enhancement of the Company's image and brand recognition among customers in
and outside in order to increase market share.
8. Risks.
Because the world and home economies have not yet recovered, the Covid-19
epidemic continues to afflict all nations and territories across the world. As a result,
the export and domestic consumption markets confront several challenges.
Prices of various input materials and raw materials (rubber, plastic, dyeing
chemicals, textiles, and so on) are rising, raising the cost of products and impacting
the Company's competitive strategy.
II. Viewers can find the following reports in the
Financial Statements:
1.Balance sheet
2.Income statement
3.Cash flow statement
4.Statement of Owner's Equity
( Appendix : Notes to the Financial statements )
1. Balance sheet.
The balance sheet shows how strong or weak your company is. It explains the
link between a company's current assets and current liabilities.
Equity is the difference between a company's assets and liabilities. The
capital supplied by the company's stockholders is referred to as equity.
The accounting equation: Asset = Liabilities + Equity
Total Assets = Current assets + Non-current assets
Total Owner’s Capital = Liabilities + Owner’s Equity
Total Assets = Total Owner’s Capital
In Balance sheet, The following four elements must be prioritized:
Account receivable (130&210):
Accounts receivable is the amount owed by customers to the business
for the purchase of goods or services on credit. You'll have "receivables" or
"liabilities" if your firm sells items or services without receiving money right
away. For many business owners, this is a major problem, and you must be
sure to maintain track of these receivables on a regular basis.
Inventories (140):
Inventories include raw materials, semi-finished products (unfinished
products), and unsold finished goods. For example: Clothes, tiles, televisions,
and refrigerators, for example, have been completed but not sold. Products
kept in stock for sale are like money on a shelf, therefore they must be
constantly managed, particularly in manufacturing and retail.
Account payable (310) :
Accounts Payable keeps track of how much the business owes its
suppliers or unpaid tax bills, wages, etc..
Non-current liabilities:
Non-current liabilities to keep track of finance lease debts or other
debts with a repayment term of more than 1 year. Example: Bank debt, for
example, is a company's long-term debt about which you should be worried.
Debt to a bank isn't always a negative thing. It will assist you in swiftly
expanding your business activities. It does, however, come with hazards if
your obligations surpass your ability to pay.The monthly interest paid to the
bank must not exceed 20% of fixed expenses, and the total bank debt must be
less than 3 times the company's yearly net profit to ensure a suitable ratio of
bank loans.
2. Income statement.
This is a report that indicates how much money the business has made, how
much it costs, and how much profit it still has. In a word, this report indicates the
profit or loss of the company. This report can be produced on a monthly, quarterly,
or annual basis.
We must pay attention to the following points in the income statement:
Revenue (1)
Cost of goods sold (11)
Gross profit (20)
Fixed costs (25,26)
Net income (60)
3. Cash flow statement.
The cash flow statement records the cash inflows and outs of the business
through accounts 20, 30 and 70. It demonstrates how much money the firm made and
how much money it spent during a specific time period.
Even if cash has not yet been received, revenue and profit are reported
immediately on sale in the Income Statement, and income tax and depreciation are
recorded as costs even though they have not yet been paid. You must study the cash
flow statement to determine the precise amount of money received by the company.
4. Statement of Owner's Equity.
The statement of owner’s equity presents the change in equity (the factors of
change are listed in the following section). Such a change may be reported separately
in accordance with IAS 1 (International Financial Reporting Standards adopted by
the International Accounting Standards Board) or combined with other statements in
the report. According to VAS 21, there are notes to the financial statements. The
Enterprise, as well as its related parties, understand the change in equity reflected in
the following items when reading the statement of changes in equity:
Net profit or loss for the year.
In conformity with other accounting principles and the total of these
elements, income and costs, as well as profit and loss, are recorded directly in
equity.
Impact and compensate for changes in accounting policies and
corrections of errors indicated in the "Net profit and loss for the period,
fundamental errors, and changes in accounting books" part of the accounting
techniques section.
Owners' dividends and earnings are distributed through equity
transactions.
At the beginning and end of the year, there are balances and items of
accumulated profit and loss, as well as changes during the year.
At the beginning and end of the year, compare the carrying amounts
of various forms of contributed capital, reserves, and equity surplus.
Following that, the report will break down the movements of each form of
capital.
Vietnam Valuation and Limited Company was appointed to audit Joint Stock
Company 32.
Auditor's opinion: “The financial accounts present a genuine and fair picture,
according to our findings. The Company's financial position as of December 31,
2020, as well as its results of operations and cash flows for the year ended, are in
compliance with accounting standards, Vietnam's corporate accounting regime, and
legal regulations governing the preparation and presentation of financial statements
in all material respects.”
The reports properly reported the prior information, according to the auditor,
indicating openness in accounting processes. The parameters offer straightforward
findings that assist consumers of accounting data in understanding the business's
health. Although there is some faith in these financial statements as an investment
because they are calculated by particular firms, it does not rule out the possibility of
a nocturnal scenario. Before making an investment choice, it is important to
investigate the firm through several channels, such as the company's current market
condition, etc., in addition to the financial results.
The following are the concepts that the firm use to estimate and recognize (i)
revenue:
Sales of shoes and rubber, as well as money from outsourcing services and
factory leasing, all contribute to the company's revenue.
Profit revenue:
Interest is calculated on an accrual basis, based on the balance of
deposit accounts and the current interest rate.
4. Comments.
According to the findings estimated for the two years 2019 and 2020, the
income stream result dropped in 2020. The difference between 2018 and 2019 is
10,34%.
A 1% change in gross profit margin and a 1% change in revenues/expenses
were found as the major cause results.
We can observe that net income is falling. The major reason for the shift is
the much higher cost of products supplied in 2020 compared to 2019.
1. The resulting percentage change for the asset, liability and equity
categories.
A, Assets.
Short-term assets in 2020 increased by 19.39% compared to 2019 in which:
cash and cash equivalents decreased by 26.70%, short-term receivables increased by
118.13%, inventory increased by 4.45%, other short-term assets were unchanged.
Long-term assets in 2020 compared to 2019 are reduced by 3.35%, of which:
fixed assets decreased by 3.89%, long-term assets in process decreased by 15.55%,
long-term financial investments unchanged, other non-current assets increased by
131.71%.
Total assets increased by 12.27% in 2020 compared to 2019, this number also
represents the percentage change of total liabilities and equity in 2 years 2020 and
2019.
B, Liabilities:
C. Equity:
Equity increased to 8.32% in 2020 compared to 2019 in which other sources
and funds increased by 84.69%..
2. The percentage of each asset as compared to total assets.
Based on the results of the percentage of each asset over the total assets in the
two years 2020 and 2019, it shows that short-term receivables, inventory and fixed
assets account for the highest percentages, respectively the years 2020 are 24.95%,
39.00%, 24.50% and 2019 are 12.84%, 41.93%, 28.62% of total assets. As such,
these are the most important asset classes for the company.
Inventories:
Calculation of inventory items: Add sub-items at cost, then subtract
provisions.
Total original price: recorded 197,321,374,915 VND on December
31, 2020.
Total provision: recorded 6,870,679,832 VND as of December 31,
2020.
Fixe
d assets:
How to calculate the fixed asset item: Taking the original cost value
minus the depreciation used in the year will give the remaining use value.
Intangible fixed assets: recognized at 99,225,000 VND as of
December 31, 2020.